Tsingshan to acquire majority stake in POSCO China

Article Summary:

On July 8, 2025, Tsingshan Holding Group agreed to acquire an 82.5% majority stake in POSCO Zhangjiagang Stainless Steel (PZSS), a major Chinese cold-rolled stainless steel mill with an annual capacity of ~1 million tonnes. POSCO will retain a minority stake, transitioning from operator to strategic partner.

The acquisition supports Beijing’s consolidation efforts in the steel sector and reinforces Tsingshan’s global dominance in flat stainless products.

This move aligns with POSCO’s strategic shift to divest from its Chinese stainless steel assets and refocus on growth markets such as the U.S. In particular, POSCO recently signed a memorandum of understanding with Hyundai Motor Group to invest in a planned steel mill in Louisiana, USA as part of its broader effort to expand local production capacity and strengthen its footprint in the North American market.

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Our Personal insight

"While PZSS doesn’t supply to Canada directly, Tsingshan’s expanded control over cold-rolled stainless in China could still influence North American pricing, particularly on 304 and 316.

With limited domestic mill options, many Canadian importers rely on Asian-origin stainless. If Tsingshan tightens supply or shifts volumes toward Southeast Asia, we could see firmer prices or reduced availability in certain sizes.

This is a good time for buyers to re-evaluate sourcing strategies, especially those not locked into mill-direct or allocation-based programs."