Baogang wins rare earth alloy steel tender

Baogang

Baogang wins rare earth alloy steel tender for the world’s biggest hydropower dam. The contract covers 62,000t of rare earth alloy steels for the Yarlung Tsangpo project. As a result, demand signals strengthen for special steels and rare earth inputs.

Tender underscores China’s megaproject steel needs

Baogang wins rare earth alloy steel tender as construction started on 19 July. The Tibet project targets record hydropower capacity and unprecedented steel intensity. Industry estimates suggest 4–6mn t of special steel will be required. Meanwhile, Baogang’s plate capacity and alloy know-how position it well for execution.

Vertical integration links alloy steels and rare earths

Baogang wins rare earth alloy steel tender while leveraging Bayan Obo resources. The group controls one of the largest rare earth mines with 35mn t REO reserves. It sells all concentrate to Northern Rare Earth, where it holds a 37pc stake. This integration supports alloying elements and process stability for long-lead deliveries.

Baogang expands volumes across core products in 2025. Targets include 14.62mn t iron, 15.64mn t crude steel, and 14.76mn t billets. Plans also include 390,000t of rare earth concentrate and 650,000t of fluorite concentrate. Therefore, the dam award should lift utilization and product mix quality.

Project momentum could aid Baogang’s financials after a softer first quarter. January–March revenue reached Yn15.433bn, down 13pc year on year. Net profits fell by 29.33pc, highlighting price and cost pressures. However, the tender should boost steel sales and margins as deliveries ramp.

The Metalnomist Commentary

This award tightens the link between China’s infrastructure push and rare earth alloy steel demand. Expect knock-on effects for special steel pricing and magnet-grade rare earth flows. Suppliers should align production schedules with the project’s backloaded steel demand curve.