Chinese factories modernize order book - Newssummary

Some large Chinese steel mills are making significant efforts to modernize their product portfolios in response to the elimination of inefficient capacity, the One Belt and One Road project, the expansion of rail links with Russia, and other favorable Chinese policies.

The rapid development of China's high-speed railway and overseas projects have contributed to the Maanshan Iron & Steel Co., (Masteel) now focusing on wheels and axles for high-speed trains. According to the company's 2014 financial report, production and sales of railway wheels reached 188,000 tonnes, following those traditional products such as slabs, profiles and rebar.

The company obtained approval for the production of large-capacity locomotive wheels by winning a bulk order from China Railway Test (CRCC). Masteel also chooses SAS VALDUNES as the main manufacturer of wheels, axles and other train parts to increase their capacity.

Other large steel mills in China such as Panzhihua Steel Group, Anshan Iron & Steel, Baotou Iron & Steel and Wuhan Iron & Steel are also considering new opportunities due to the rapid development of high-speed railways both at home and abroad.

With the release of China's high-speed train strategy, China's iron and steel industry will likely need to find a new path to allocate their surplus capacity, and aluminum, copper and glass could benefit from this as well, Newssummary said.