China's Tianjin TEDA Investment
Holding Group and Delong Steel Group's New Tianjin Steel have signed a
strategic cooperation agreement this week to seek investment in steel projects
in Saudi Arabia.
The two companies will carry
out cooperation on developing a 10 million tonnes/year steelmaking
industrial park in Saudi Arabia. This will mainly comprise an electric arc
furnace-based steel plant, Kallanish learns.
New Tianjin Steel was acquired by
Delong Group after bankruptcy and reorganisation in 2019. It is constructing
two 1,780m³ blast furnaces in She County in Handan, Hebei Province, with a
joint capacity of 3.04m t/y. The cooperation will help the steel mill
expand overseas steel markets and increase the production capacity of its
parent company, Delong Group.
China's TEDA Group has rich political
and business resources in the Middle East, and is familiar with the overseas
market development procedures of Chinese companies. Its China-Africa TEDA
Company once led the development of the China-Egypt TEDA Suez Economic and
Trade Cooperation Zone. In 2019, TEDA and the Saudi Authority for Industrial
Cities and Technology Zones (MODON) signed a cooperation agreement to promote
the investment of Chinese companies in Saudi Arabia.
ed that, per Reuters, he does
not believe the county is currently in a recession. Further, the all-time hawk
St. Louis Fed President James Bullard said he is leaning towards another 75 bps
rate hike in September.
“Trading in futures contracts
tied to the Fed's policy rate suggested investors see that rate rising to a
range of 3.50%-3.75% by March of next year, but then starting to fall a few
months later,” said Reuters. That said, the current range of the Fed’s
benchmark rates is 2.25-2.50%.
To sum up, the recent jump in
hawkish Fed bets joins the pessimism surrounding China to challenge steel
traders.