In order to reverse the situation of being subject to people's demand for iron ore, Chinese steel companies have "goed out" to invest in mining. However, the move has caused panic among Brazilian steel companies, who have appealed to the Brazilian authorities to restrict Chinese companies' investment in Brazilian mining, but have yet to receive a response from the government.
According to Brazilian media reports, Companhia Siderurgica Nacional (CSN), Brazil's third-largest steel company, said that China is already the world's largest importer of iron ore. Under the competitive advantage of government subsidies, Brazilian mining investment will dominate. Brazil's iron ore production, in the long run, will expose Brazilian companies to the risk of being squeezed out. Therefore, the Brazilian government is expected to take measures to curb the acquisition of Brazilian domestic minerals by Chinese companies. It is understood that Benjamin Steinbruch is not only the CSN, the third largest steel company in Brazil, but also the chairman of the Industrial Association of São Paulo, Brazil.
According to industry insiders, although iron ore resources are abundant in Brazil, the production process and production capacity of the steel industry are relatively backward. In the next 5-10 years, domestic demand will stimulate the growth of Brazilian steel at a rate of 7%-8%. Brazil's steel demand has been constrained by inadequate infrastructure investment, and it has also constrained the release of steel production capacity. In the next few years, Brazil will host the 2014 World Cup and the 2016 Rio Olympic Games, and steel demand will show explosive growth. The growth of the steel industry will increase the demand for iron ore in Brazil. The large-scale acquisition of Brazilian iron ore enterprises by Chinese steel enterprises will inevitably affect the interests of Brazilian steel companies and cause their panic. Lobbying authorities.
According to the data, in April this year, China and Pakistan signed a four-year bilateral cooperation plan and a series of separate agreements. China and Pakistan will jointly build a large steel plant with a joint venture of US$5 billion in the industrial zone of Aso Port, Rio de Janeiro, Brazil, with an annual production capacity of 5 million tons. It is planned to be completed and put into operation within three years. The products will be mainly used in the Brazilian automobile, shipbuilding and oil exploitation industries. The rest will be exported to China. This will become the largest steel mill built by China overseas, and it is also China's largest investment in Brazil. The joint venture is owned as to 70% by China Wuhan Iron & Steel Co., Ltd., and LLXLogistica, a subsidiary of the EBX Group, the Brazilian richest man, Aki Battersta Eike Batista, holds 30%.
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