China Steel Group Operates All 5 Blast Furnaces

China Steel Corporation group’s all 5 blast furnaces are in operation for the first time after CSC restarted relined No.1 blast furnace in Kaohsiung, Taiwan last week. The total production capacity of 5 furnaces is 14 million tonnes per year. The subsidiary of CSC, Dragon Steel started the operation of No.1 blast furnace in the end of February and plans to start No.2 blast furnace by the end of 2012. The group’s capacity will increase to 17 million tonnes per year with 6 blast furnaces. The group expands the capacity to meet growing demand in Asia.

CSC started relining work for No.1 blast furnace with 2,400 cubic meters of inner volume or around 1.8 million tonnes of annual output capacity in Kaohsiung in February while the firm relined No.3 furnace with 3,400 cubic meters last year.

Dragon Steel started the test operation of new hot rolling mill with annual 3 million tonnes of output capacity in the end of April starting the commercial production in July. The firm supplies the steel to home and plans to start the export after the approval of the quality and logistics. The firm expands the capacity of hot rolling mill to 4 million tonnes per year after the start of No.2 blast furnace’s operation.

CSC starts operation of No.3 cold rolling mill with annual 1.5 million tonnes of output capacity in February 2011 ahead of original schedule and the firm expands the capacity of continuous galvanizing line in 2011 to increase the supply high grade galvanized steel. The group’s total annual output capacity will reach 20 million tonnes in 2011.

CSC tries to increase steel selling price. However, the market price is flat in Taiwan when the market price is decreasing in China.