Baosteel abandons Brazil JV

SHANGHAI: Baosteel has abandoned a proposed joint venture to build a steel mill with Brazilian mining firm CIA Vale do Rio Doce due to weak market demand and local opposition.

Last Friday, the Brazilian company said it had agreed with the Chinese steelmaker to drop the project and liquidate Companhia Siderrgica Vitria (CSV), the joint venture set up for the project.

The Brazilian steelmaker said in a market filing that the Chinese steelmaker decided to exit the venture due to the weak market trends.