Steel Mills Reopening

AFR: China re-opens steel production 10 times greater than Australia

Research house MySteel estimates around 50 million tonnes of Chinese capacity has been re-started this year, the equivalent of 41 blast furnaces with an annual capacity of 1.2 million tonnes.

The restarted capacity is more than 10 times Australia's total production and accounts for most of the 60 million tonnes China shut in 2015.

The closures were part of government efforts to modernise the sector, reduce air pollution and cut over-capacity.

"The market is so good why would steel mills not re-open?" said Xu Xiangchun, the chief information officer at MySteel via phone.

...Stockbroking firm Everbright Securities estimates the average Chinese steel mill is now making a profit of 400 yuan per tonne of steel produced, the highest level since 2008.