Baogang rare earth alloy steel tender secures world’s biggest hydropower project

Baogang rare earth

Baogang rare earth alloy steel tender underscores China’s push into strategic infrastructure. The steelmaker will supply 62,000t for the Yarlung Tsangpo hydropower dam. As a result, Baogang rare earth alloy steel tender signals rising demand for special steels and rare earth inputs.

Scope and investment for the Yarlung Tsangpo dam

China began constructing the world’s biggest hydropower dam on 19 July. The project sits in Tibet on the Yarlung Tsangpo river. The investment totals Yn1.2 trillion, the tender announcement said. Meanwhile, industry groups expect 4–6mn t of special steel demand. That far exceeds prior hydropower builds in China.

Baogang rare earth alloy steel tender aligns with upstream strengths

Baogang United Steel will ship rare earth alloy steels for core structures. The company leads plate supply across northwest China. It targets 2025 output of 15.64mn t of crude steel. It also plans 390,000t of rare earth concentrate and 650,000t of fluorite concentrate. Baogang owns the Bayan Obo rare earth mine in Inner Mongolia. Northern Rare Earth purchases all of Baogang’s concentrate. Baogang holds 37% of NRE, while Baotou Steel is the largest shareholder in both firms.

Pipeline of national projects reinforces demand

Baogang has supplied steel to major national projects in Tibet. These included the Qinghai-Xizang and Lhasa-Nyingchi railways. It also delivered to the Lalo water conservancy hub. Therefore, the new hydropower award should lift sales and earnings. The firm reported Yn15.433bn in first-quarter revenue, down 13% year on year. Net profit fell 29.33% in the same period. However, the tender adds volume visibility as construction ramps.

The Metalnomist Commentary

This award tightens the link between rare earth mining and advanced steel demand. Expect stronger pricing power for alloy plate with rare earth additions as project steel calls peak. Watch Northern Rare Earth flows from Bayan Obo for signals on alloying element availability and costs.