China's railway ministry will this year nearly double the amount of rails it orders from the four big domestic steel makers, as part of an infrastructure drive to shore up industry, an industry newspaper reported on Saturday.
The Ministry of Railways sent requests for a total of 3.25 million tonnes of steel rail to units under Baoshan Iron and Steel Co Ltd, Angang Steel Co Ltd , PZH Steel, and Wuhan Iron & Steel (Group) Co, the report in the China Metallurgical News said.
The orders would be a big jump on 2008, when the ministry ordered 1.88 million tons, said the paper.
The report did not specify how the amount would be divided among the four makers, who would have to use much of their rail-making capacity to fill the order.
Nor did it say how much the ministry will pay, noting that in 2008 prices it set were about 1,000 yuan ($146) per tonne less than general market prices.
The Ministry of Railways is one of the big beneficiaries of Beijing's plans to boost flagging growth by pumping state investment into transport and other infrastructure.
It has said it plans to invest 600 billion yuan ($88 billion) in 2009, up from 350 billion yuan ($51 billion).
The biggest of the Chinese steel makers in the order, Baoshan Iron and Steel, can produce 1.4 million tonnes of rail a year, the report said.
Source: Reuters
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