Valin Iron and Steel produces at full capacity
2020-10-23 11:48:50 [Print]
Valin Iron and Steel stated on October 22 that the company produced all products at full capacity and had no plan to add new capacity.
Valin Iron and Steel noted that the imported iron ore accounted for over 90% in raw materials procurement and iron ore made up around 36% of production costs. Since the beginning of this year, prices for raw materials including iron ore kept standing at a high level, which brought pressure to the company in profits. Besides, coking coal mainly came from Shanxi, Henan, Hebei, Shandong and Anhui. Purchasing prices for raw materials are decided by market conditions no matter contracts are signed based on long-term cooperation or in spot market.
The company sells over 90% of its wire and rod products and about 35% of wide and thick plates in Hunan and the remaining part in East China and South China. It sells about 45% of cold-rolled sheets in Hunan and exports around 40% of seamless steel pipes with the remaining part consumed in China.
Valin Iron and Steel noted that the imported iron ore accounted for over 90% in raw materials procurement and iron ore made up around 36% of production costs. Since the beginning of this year, prices for raw materials including iron ore kept standing at a high level, which brought pressure to the company in profits. Besides, coking coal mainly came from Shanxi, Henan, Hebei, Shandong and Anhui. Purchasing prices for raw materials are decided by market conditions no matter contracts are signed based on long-term cooperation or in spot market.
The company sells over 90% of its wire and rod products and about 35% of wide and thick plates in Hunan and the remaining part in East China and South China. It sells about 45% of cold-rolled sheets in Hunan and exports around 40% of seamless steel pipes with the remaining part consumed in China.
