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Terra Nostra Anticipates Strong Demand for Stainless in China
07/03/2008 - Based on recent industry analysis, Terra Nostra Resources is anticipating sustained strong domestic demand for stainless steel in China.
Based on recent industry analysis, Terra Nostra Resources Corp. is anticipating sustained strong domestic demand for stainless steel in China.
“Our focus on the production of stainless steel for domestic sale has positioned Terra Nostra to take full advantage of China’s continuing strong economy and long-term plans for economic transformation and urban migration, without becoming overly exposed to the global economic turmoil that we have seen in recent months,” said George Chua, Terra Nostra’s Chief Operating Officer. “We expect domestic prices for stainless steel to remain strong for the remainder of the year.
“The fundamental demand for steel and stainless steel products—both within the Chinese market and internationally—will allow Terra Nostra and other Chinese producers to offset the rising costs for raw materials, such as stainless steel scrap, nickel, and electricity,” concluded Chua.
Currently, 100% of Terra Nostra’s stainless steel production is sold within China, with a significant portion of that going directly into the local Shandong Province market. Shandong, an important industrial and economic center, is strategically located on the east coast of China, between Beijing and Shanghai and is home to over 95 million people.
Terra Nostra is a leading stainless steel and copper producer in China through its 51% majority interests in two joint venture companies, Shandong Quanxin Stainless Steel Co., Ltd. and Shandong Terra Nostra Jinpeng Metallurgical Co., Ltd.
Shandong Quanxin Stainless Steel Co., Ltd. operates a modern stainless steel production facility with a 230,000-tonne casting mill and a 150,000-tonne rolling mill. Shandong Terra Nostra Jinpeng Metallurgical Co., Ltd. has an existing and under-construction production capacity of 170,000 tonnes of refined copper, together with value-added copper rod and wire capabilities. The two joint venture companies, with total assets in excess of US$263 million and over 1000 employees, are located in the highly industrialized coastal province of Shandong, midway between Beijing and Shanghai. Terra Nostra has entered into an agreement to increase its direct majority ownership in both joint ventures from 51% to 90%.
