Steel Production Surge: Gansu Jiu Steel Group Sees 5.50% Activity Increase Amid Market Fluctuations
Introduction
Gansu Jiu Steel Group Hongxing Iron and Steel Co., Ltd., located in Gansu, China, has reported a significant uptick in production activity, with an annual capacity of 6,500 tonnes of crude steel. Owned by Gansu Jiu Steel Group, the plant specializes in finished steel products such as carbon steel and hot-rolled coils, serving various sectors that rely on these essential materials.
Activity Change and Trends
Over the past several months, the plant experienced notable fluctuations in thermal activity, particularly across its Basic Oxygen Furnaces.
| Date | Basic Oxygen Furnace (BOF_0) | Basic Oxygen Furnace (BOF_1) | Basic Oxygen Furnace (BOF_2) | Basic Oxygen Furnace (BOF_3) | Basic Oxygen Furnace (BOF_4) | Hot Rolling Mill (HRM_5) | Other Equipment |
|---|---|---|---|---|---|---|---|
| 2024-11-30 | 40.0 | 39.0 | 27.0 | 51.0 | 26.0 | 32.0 | 35.0 |
| 2024-12-31 | 39.0 | 41.0 | 36.0 | 52.0 | 35.0 | 33.0 | 35.0 |
| 2025-01-31 | 37.0 | 40.0 | 41.0 | 54.0 | 37.0 | 34.0 | 34.0 |
| 2025-02-28 | 36.0 | 39.0 | 41.0 | 55.0 | 35.0 | 36.0 | 36.0 |
| 2025-03-31 | 37.0 | 44.0 | 44.0 | 58.0 | 37.0 | 38.0 | 38.0 |
| 2025-04-30 | 37.0 | 47.0 | 46.0 | 61.0 | 41.0 | 39.0 | 36.0 |
The data indicates a consistent increase in activity, particularly notable in the Basic Oxygen Furnaces and Hot Rolling Mills, representing the plant’s operational response to the rising steel demand seen across China. The increase of 5.50% reflects not just recovery but enhanced efficiency post the market’s broader challenges.
Implications for Steel Buyers and Market Analysts
The upward trend in production at Gansu Jiu Steel Group signals a potential easing of supply bottlenecks, which have plagued the steel market amidst previous declines due to trade tensions and shifts in domestic demand. However, as highlighted in China increases steel production to 10-month high in March, this surge must be viewed alongside rising emissions reported by the CISA, which increased by 9.7% year-on-year. Buyers should prepare for price volatility driven by environmental regulations and changing production practices, as stricter emissions standards may further disrupt operations. Analysts must closely monitor these evolving dynamics to inform strategic procurement decisions amidst a landscape shaped by both domestic occurrences and global market pressures.