New steel expansion projects in China focus on BOF rather than EAF
In China, Electronic Arc Furnace (EAF) operations still contribute only marginally to crude steel output, compared to Basic Oxygen Furnaces (BOFs).
Of all the companies with steel melting equipment listed in the Metal Bulletin Company Database , 75% use EAF technology (also known as mini-mills), 25% are BOF operations (also known as integrated steel mills). However, given the much larger average capacity of integrated operations, the relationship is inverted from a capacity point of view, with BOF accounting for 75% of capacity compared to EAF's 25%.
Metal Bulletin Company Database shows the prevalence of integrated operations in China. For this country the Database lists 50 BOF and 42 EAF operations, but, from a capacity point of view, BOFs account for 85% of the total, while EAFs for 15%. Carbon steel is by far the largest section of the BOF steel business with 96% of the BOF Chinese companies on the MB Company Database producing carbon steel semis, longs or flat products. 60% produce non-stainless alloy steel and 20% produce stainless steel. For EAF producers, alloyed steels are a more prevalent, with only 66% of the mills producing carbon steel, while 24% produce stainless and 35% of companies listed produce non-stainless alloy steels.
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Companies with BOF operations in China |
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Anshan Iron & Steel (Group) Corp |
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Baosteel Group Corp |
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Lingyuan Iron & Steel (Group) Co Ltd |
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Panzhihua Iron & Steel (Group) Co |
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Taiyuan Iron & Steel (Group) Co Ltd (TISCO) |
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Anyang Iron & Steel Group Co Ltd (AISCO) |
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Baoshan Iron & Steel Co Ltd Special Steel Branch (Group) Co Ltd |
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Baosteel Group Shanghai No. 1 Iron & Steel Co Ltd |
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Baosteel Group Shanghai Pudong Iron & Steel (Group) Co Ltd |
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Baotou Iron and Steel (Group) Co Ltd |
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Beitai Iron & Steel Group Co Ltd |
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Benxi Iron & Steel (Group) Special Steel Co Ltd |
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Changzhou Zongtain Iron & Steel Co |
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Chengde Iron & Steel Group Co Ltd |
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Dazhou Iron & Steel Co |
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Delong Holdings Ltd |
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Fujian Sansteel (Group) Co Ltd |
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Handan Zongheng Iron & Steel Group Co Ltd |
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Hangzhou Iron & Steel Group Co |
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Hebei Dongshan Metallurgy Industry Co Ltd |
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Henan Jiyuan Iron & Steel Group Co Ltd |
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Jiangsu Shagang Group Co Ltd |
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Jiangxi Xinyu Iron & Steel Co Ltd |
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Jiangyin Huaxi Iron & Steel Co Ltd |
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Jianlong Group |
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Jinan Iron & Steel Co Ltd |
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Jinxi Iron & Steel Group Co Ltd |
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Jiuquan Iron & Steel (Group) Co Ltd (JISCO) |
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Laiwu Steel Group Ltd |
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Lengshuijiang Iron & Steel Group Co |
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Lianyuan Iron & Steel Group Co Ltd |
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Lianzhong Stainless Steel Corp (LISCO) |
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Maanshan Iron & Steel Co Ltd |
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Minmetals Yingkou Medium Plate Co Ltd |
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Nanjing Iron & Steel United Co Ltd (NISCO) |
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Rizhao Steel Group |
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Shandong Taishan Iron & Steel Co Ltd |
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Shanxi Highsee Iron & Steel Group Co Ltd |
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Shaoguan Iron & Steel Group Co Ltd |
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Shijiazhuang Iron & Steel Holdings Ltd |
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Shougang Changzhi Iron & Steel Ltd |
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Shuicheng Iron & Steel Group Co Ltd |
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Tangshan Guofeng Iron & Steel |
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Tianjin Tiangang Steel Group Co Ltd |
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Tianjin Tiantie Metallurgical Group |
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Weifang Special Steel Group Co Ltd |
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Wuhan Iron & Steel (Group) Corp (WISCO) |
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Xiangtan Iron & Steel (Group) Co Ltd (XISCO) |
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Xinjiang Bayi Iron & Steel Co Ltd |
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Xuanhua Iron & Steel Group Liability Co Ltd |
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Companies with EAF operations in China |
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Baosteel Group Corp |
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Taiyuan Iron & Steel (Group) Co Ltd (TISCO) |
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Baoshan Iron & Steel Co Ltd Special Steel Branch (Group) Co Ltd) |
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Baosteel Group Shanghai No. 1 Iron & Steel Co Ltd |
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Baosteel Group Shanghai Pudong Iron & Steel (Group) Co Ltd |
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Benxi Iron & Steel (Group) Special Steel Co Ltd |
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Changzhou Zongtain Iron & Steel Co |
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China Huadong Stainless Steel Group Co Ltd |
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China South East Special Steel Group Co Ltd |
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Guangzhou Zhujiang Steel Co Ltd |
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Hangzhou Iron & Steel Group Co |
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Hengyang Valin Steel Tube Co Ltd |
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HuBei Rising Technology Co Ltd |
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Hubei Xinyegang Steel Co Ltd |
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Huzhou Xinyaohua Stainless Steel Pipes & Tubes Co Ltd |
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Jiangsu Shagang Group Co Ltd |
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Jiangsu Xihu Special Steel Co Ltd |
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Jiangxi Xinyu Iron & Steel Co Ltd |
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Jiangyin Jinsong Stainless Steel Co Ltd |
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Jiangyin Xingcheng Special Steel Co Ltd |
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Jianlong Group |
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Ju Tai Special Steel Co Ltd |
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Jutai Special Steel Co Ltd |
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Laiwu Steel Group Ltd |
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Lianzhong Stainless Steel Corp (LISCO) |
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Nanjing Iron & Steel United Co Ltd (NISCO) |
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Nantong Baogang-Nippon Steel |
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Shandong Shiheng Special Steel Group Co Ltd |
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Shaoguan Iron & Steel Group Co Ltd |
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Shijiazhuang Iron & Steel Holdings Ltd |
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Sichuan Changcheng Special Steel (Group) Co Ltd |
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Sichuan Chuanwei Group Co Ltd |
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Suzhou Double Gold Industry Co Ltd |
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TBS Group |
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Tianjin Pipe (Group) Corp |
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Tianjin Tiangang Steel Group Co Ltd |
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Wenzhou Yucang Steel Industry Co Ltd |
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Wuyang Iron & Steel Co Ltd |
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Xinjiang Bayi Iron & Steel Co Ltd |
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Yongxing Special Stainless Steel Co Ltd |
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Zhejiang Jiangpu Stainless Steel Manufacturing Co Ltd |
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Zhejiang Youyi Special Steel Co Ltd |
Globally, the BOF method accounts for approximately 71% of global steel production, while the EAF method accounts for approximately 28%. The remaining 1% of steel output is produced using a third production method now contracting. EAFs represent the fastest growing segment of steel production technology; having increased market share from approximately 15% to 28% during the past few decades.
The EAF method employs electricity to remelt scrap steel as its primary feedstock to produce steel and does not consume metallurgical coal. The blast furnace and BOF method, instead uses as main inputs coking coal and iron ore.
Normally, EAFs are smaller than BOFs, and they are characterized by lower overhead costs and offer a higher degree of flexibility with regards to production levels. However, EAF production is highly dependent on the availability of scrap steel and electricity. Therefore, the economic benefits of the EAF production process are also dependent upon geographic location, with proximity to scrap steel and low cost electricity being important driver for the choice of technology.
For its abundance of steel scrap and the availability of relatively inexpensive electricity, the United States are therefore one of world’s largest EAF steel producing. In China and India, on the other hand, integrated operations have thus far won the day as large demand favors high capacity plants and the Chinese relative lack of domestic scrap made an EAF-based industry inadequate to meet the huge Chinese demand for steel.
Only countries with a long history of industrialization scrap sufficient amounts of steel to run EAF operations. Additionally, in the most industrialised countries the period of decommissioning is shorter. Hence, scrap availability is not an issue for South Korea or Japan, as these Asian countries have a big shipbuilding industry, making EAF a more viable option there. In the case of China, the sheer size of the market means that, despite the country’s relative recent industrialisation, some big scrap players are already present. In 20 years time, EAF will grow in China and even bigger business opportunities will open up for scrap merchants and alternative irons (DRI and HBI) producers.
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Scrap merchants in China |
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ASK Holdings Ltd |
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Central China Merchants Ltd |
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Fortune Steel Resources Ltd |
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Foshan Advance Trading Ltd |
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Foshan Nanhai Alco Metals Resources Ltd |
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Foshan Nanhai Meirui Metal & Plastic Co Ltd |
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Foshan Nanhai Minhao Metals Recycling Co Ltd |
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Good Year Corp Ltd |
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Langfan Langhe Stainless Steel Co Ltd |
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Million Link (Tianjin) International Trade Co Ltd |
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Nanhai Xinghai Metals Recycling Co |
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Nanhai Youlian Electrical Co Ltd |
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Ningbo Baidou Secondary Resources Recycling Co |
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Ningbo Baolong Resources Recycling Co Ltd |
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Ningbo Daye Metals Recycling Co Ltd |
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Ningbo Fajin Secondary Resources Co Ltd |
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Ningbo Gonghua Secondary Resources Co Ltd |
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Ningbo Hexing Metals Recycling Co Ltd |
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Ningbo Huamao Import & Export Co Ltd |
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Ningbo Taigang Metals Recycling Co Ltd |
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Ningbo Taiwa Recycling Resources Co Ltd |
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Ningbo Toptrade Import & Export Co Ltd |
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Ningbo Xiangfenghang Trading Co Ltd |
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Ningbo Xianghao Leibov Metal Industries Co Ltd |
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OneSteel Recycling Asia Ltd |
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Qingyuan Huaqing Secondary Resources Investment & Development Co |
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Qingyuan Mingyi Metals Co Ltd |
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Rankco Trading Ltd |
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Shanghai J. Sun Trading Consultants Ltd |
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Sinotrade Global Ltd |
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Sino-Trust Corp |
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Stemcor Hong Kong |
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Suzhou Huameida Aluminum Products Co Ltd |
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Taizhou Dingshen Metals Co Ltd |
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Taizhou Keelung Metal Co Ltd |
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Taizhou Qilong Resources Recycling Co Ltd |
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Tianjin Alltone Metal Co Ltd |
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Tianjin Bright Metal Products Co Ltd |
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Tianjin Meifu Metals Products Co Ltd |
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Tianjin NCU Metals Ltd |
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Tianjin Qiaohong Resources Reuse (Tianjin) Co Ltd |
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Tianjin Renli Metal Products Co Ltd |
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Tianjin Ruichen Metal Products Co Ltd |
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Tianjin Tongxin Secondary Resources Recycling Co Ltd |
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Tianjin Weida Metal Products Co Ltd |
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Tianjin Xiangshu Metal Products Co Ltd |
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Winmex Janhout Metal Ltd |
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Zhangjiagang Fengli International Trade Co Ltd |
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Direct reduced iron producers in China |
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Cargill Trading (Shanghai) Ltd |
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CMC China |
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Eldon Development Ltd |
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Falcon Resources Ltd |
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Hubei Skyland Metals Ltd |
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Mitsui & Co (Hong Kong) Ltd |
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Shanghai J. Sun Trading Consultants Ltd |
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Stemcor Hong Kong |
For more information about the equipment used by steel producers in China, visit www.mbdatabase.com.
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