Steel in China
China is the leading producer of steel in the world, accounting for more than half of the worlds output in 2017. Its success in steel production is a result of its massive investment in the industry. Chinas steel industry has grown from an insignificant producer in the 1970s to playing a major role in world steel production today.
The Chinese steel industry is divided into five main segments: primary steelmakers, secondary steelmakers, steel trading businesses, steel product manufacturers and steel service companies. The Chinese steel industry is highly specialized, with many of Chinas leading steel mills focusing on specific products.
Primary steelmakers in China are responsible for producing both crude and finished steel. The majority of primary steelmakers produce crude steel. Crude steel is produced by melting iron ore and other raw materials in furnaces and then treating it with forms of heat and pressure. The finished steel then goes through a series of treatments and processes to create products such as steel pipes, rods, plates and sheets.
Secondary steelmakers are those who produce finished steel products. These products can include steel pipes, rods, profiles and plates. They can also produce products such as steel wires and non-ferrous metals. Steel products produced by secondary steelmakers can be used in various industries such as construction, machining and automotive.
Steel trading businesses in China specialize in the buying and selling of raw materials used in the steel industry as well as finished products. They are concerned with additives, metallurgical coke, injection sands, steel scrap and related products.
Steel product manufacturers in China produce a wide range of products such as pipes, rods, profiles and plates. These include steel beams, scaffolding, pipes and tubes, and related products. The products are used in construction, automotive and other industries. Steel service companies provide services such as steel consulting, engineering, testing and other technical services.
Chinas steel industry is expected to continue its phenomenal growth in the future due to its abundant resources, favourable policies on the industry and competitive pricing. The Chinese steel industry is likely to remain the worlds top producer for many years to come.
