Baosteel Group Corp, China's biggest and the world's sixth largest steelmaker, said it planed to build 10 scrap logistics bases in China with a total annual capacity of three million tons, according to a report from Shanghai Daily.
"Baosteel has a great appetite for scrap to meet production expansion, and most of the country's major steelmakers are seeking scrap," Yong Zhiqiang, a security analyst, was quoted as saying.
Xie Qihua, Baosteel's chairwoman, said earlier this year about its five-year development plan, saying that Baosteel should work on a target of 30 million tons' annual production.
Baosteel already has three such scrap bases in Taizhou, Jiashanand Ningbo in East China's Zhejiang Province with a yearly capacity of 400,000 tons.
At present, Baosteel can produce 20 million tons of steel products a year.
Baosteel will purchase, process and distribute the scrap through those bases for its subsidiaries including Baoshan Iron and Steel Co., the steelmaker will procure scrap from both home and abroad.