China Metallurgical News reported that as one of the most important line in automobile sheet production, HRC line is played as a fine quality steel production line in many steel mills which was cut off in Hebei province, the largest steel production base in China.

Xuanhua Steel, a subsidiary of Hebei Iron and Steel Group has aimed on lower class rebar production for many years. However, HRC takes a higher proportion in Hebei 0.12 billion tonne steel capacities with an unobvious recover in electromechanical and shipbuilding industries.

Mr Zhoujie Director of Hebei SASAC points out the profit per tonnage is coming at CNY 306 when Baosteel gains CNY 1,168 although Hebei steel output keeps No 1 in the country for seven years in a row.

Mr Wang Yifang Board Chairman of Hebei Steel Group said “Now, we have six flats production lines with the capacities of 20 million tonnes in total and it is really a high grade reconstruction if Xuanhua Steel insists on HRC production.”

Oversupply is still the major problem in the province, so SASAC of Hebei province decided to carry out material merges and acquisitions in its four state owned steel enterprises, Handan Steel, Tangshan Steel, Xuanhua Steel and Chengde Xinxin Vanadium &Titanium Co Ltd.