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Recently, China Railway Materials International Group Co., Ltd., a subsidiary of China Railway Materials (Group) Co., Ltd., successfully signed a contract for the supply of 26,000 tons of ship plates and marine ball flat steel with the FR Shipyard LTD (Bangladesh Shipyard, Bangladesh) with a contract value of USD 14 million. . This is the first time that China Iron and Steel's China Railway International Group Co., Ltd. has opened the Bangladesh shipbuilding market, marking the next step in the international production cooperation project for China's iron and steel products.
In recent years, due to the dual effects of international anti-dumping and domestic de-capacity, China's export steel market has been shrinking, with a year-on-year decline of 3.5% in 2016. Since August 2016, the monthly export volume has declined for the eighth consecutive month. From January to March 2017, the country's export steel has dropped by nearly 30% year-on-year.
Under the severe market situation, China's iron products start from internal processes and strictly control business risks. On the other hand, they seize the opportunity of “One Belt, One Road†and seriously study the demand for steel products in infrastructure construction along the route, seeking high-quality end users, and ultimately “Contrarian†won orders from important markets in Bangladesh.
FR Shipyard LTD (Bangladesh Shipyard, Bangladesh) is one of the largest state-owned shipyards in Bangladesh. It has developed rapidly in the shipbuilding industry in Bangladesh in recent years and is a very good end-user of the steel business. The cooperation with the Bangladesh Shipyard not only improved the quality of the company's business operations, but also laid the foundation for China Iron & Steel to further establish and develop the Southeast Asian steel export market.