CHINA Steel Australia says it will be converting its Linyi nickel pig iron plant to produce merchant pig iron (MPI).
The plant in China’s Shandong Province will be shut down for conversion until the end of March 2009.
According to the company, the iron and steel industry in China is recovering, but under a different set of conditions and opportunities. The Chinese iron and steel industry stimulus package seems to be working, with ore being imported again, and domestic iron and steel prices rising.
MPI is generally processed and made into steel using electric arc furnaces. It can also be fed to foundries to cast articles such as stoves, radiators, lamp-posts and rails.
China Steel Australia says it could become one of the larger and more efficient producers of MPI in China. It is seeing a good level of interest from customers for merchant pig iron.