January 18, 2026 at 15:05 there was a strong explosion at the sheet steel plant of the Chinese steel company Baotou Iron & Steel Co., Ltd. in Jiuyuan District, Baotou City. The accident killed two people, left eight missing and sent 84 to hospital.
The explosion occurred at Baotou Steel's rare earth sheet steel plant, which specializes in producing high-quality rare earth steel sheets used in railways, automobiles and pipelines.
In the steel sheet plant's steel shop, a spherical tank containing saturated water exploded and ferry with a capacity of 650 cubic meters, causing an explosion.
An estimated 15-20 percent of Baotou Steel's total capacity was damaged. The damaged sheet mill typically produces 250,000 to 300,000 tons per month, meaning steel sheet production in northern China will fall by about 8 to 10 percent.
Equipment repairs and resumption of production will take time, market sources told SteelOrbis. The restart cycle is expected to last 30-60 days and could extend to two or three months if regulatory approvals are difficult.
Furthermore, the accident could lead to further safety audits of other steel mills in China, which could have a negative impact on steel supplies in the short term.
In 2024, Baotou Steel produced 14.99 million tons of crude steel and became the 16th largest steel producer in China.
