Recently, China’s Bao Steel and the Brazilian mining companies CVRD joint venture in Brazil to build large steel production plant. Some data indicate that the last two years or within a few years, steel prices in China will also establish branch in India, Vietnam and other places. In this regard, the experts pointed out that, behind all of these cases, showing significantly different from the history of any significant feature of the steel industry consolidation.

First, the pace is accelerating the world’s steel production transfer to the strong regional economic vitality, the transfer by the economically developed areas to less developed regions and developed regions of the potential economic characteristics are very obvious. 10 years ago, the Chinese market as the world’s most dynamic economic region,Impact breaker has attracted the attention of all industries, including steel giant, the trend of a transfer to China soon formed and the rapid development of the potential for rolling; at present, China has gradually become one of the world’s manufacturing center of the region, which greatly promoted the development process of China’s steel industry, China’s steel production in a few years the rapid increase from an annual output of 100 million tons to nearly 500 million tons.

Global IT consultancy and services company Capgemini’s research report that the Chinese share of global manufacturing exports accounting for more than 8 percent, India’s ratio is less than 1%. But recent evidence shows that in the next five years, India will develop into a world manufacturing center. An institution on the findings of the 340 companies in the ‘Fortune’ magazine of the American Enterprise 500, many companies plan in the next three to four years to expand the outsourcing cooperation with Indian companies on the priority position. From this point of view, India has undoubtedly become the steel giant in the eyes of potential developed areas. grinding rod mill:

Secondly, the speed of the steel industry to the transfer of energy, resource-rich region and the target consuming regions. Substantial price increases with the worldwide resources, energy price trends, resources, energy-intensive areas is becoming a preferred target steel thriving enterprise strategic shift. In recent years, Brazil’s national economy fast growth, economic growth rate is maintained at about 5%, the demand for steel will be rising rapidly, take the lead in investment and construction of iron and steel plant in Brazil is equivalent to first landed on this growth potential is enormous emerging markets.

In addition, the demand potential of the Latin American market is also very impressive. Brazil is cutting-edge production base, and expands the enterprise’s own influence in the Latin American market, to become one of the goals of the Sino-Japanese iron and steel enterprises. Production based on the origin of raw materials, the nearest to conform to the Latin American market demand and save a lot of logistics and cost considerations, the iron and steel enterprises in China and Japan have made the choice of plant in Brazil.

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