Deadly Explosion in North China Puts Steel Safety Back in Spotlight
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An explosion at a steel plate facility in northern China has killed at least nine people and forced production shutdowns, triggering a regionwide safety inspection and renewing scrutiny of industrial safety at one of the country’s major steelmakers.
A 650-cubic-meter saturated water and steam tank exploded during steelmaking operations at a rare-earth steel plate factory in Baotou, Inner Mongolia, on Sunday afternoon. Dozens were injured, and one person remained missing as of Tuesday afternoon, authorities said. The facility is operated by a subsidiary of Inner Mongolia BaoTou Steel Union Co. Ltd. (600010.SH), which has shut down affected production lines following the incident. BaoTou Steel Union is the listed steel arm of the state-owned Baotou Iron and Steel Group, commonly known as Baogang Group.
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- An explosion at Baotou Steel’s facility in Inner Mongolia killed at least 9, injured dozens, and forced shutdowns, prompting a regionwide safety inspection.
- Baogang Group’s safety record is under renewed scrutiny; past inspections found 900+ hazards and 20 incidents killed 28 people (2016–2022).
- Steel supply impact is limited; China’s 2025 crude steel output fell 4.4% to 960M tons, while BaoTou Steel Union’s 2024 net profit dropped 48.6%.
- Inner Mongolia BaoTou Steel Union Co. Ltd.
- Inner Mongolia BaoTou Steel Union Co. Ltd. (**600010.SH**) is the listed steel arm of the state-owned Baotou Iron and Steel Group. A subsidiary of the company recently experienced an explosion at its rare-earth steel plate factory, killing at least nine people. The company has a concerning safety record, with 20 production incidents and 28 deaths between 2016 and 2022. In 2024, the company reported a significant drop in net profit.
- Baotou Iron and Steel Group
- Baotou Iron and Steel Group (Baogang Group) is a state-owned Chinese steelmaker. Its listed arm, Inner Mongolia BaoTou Steel Union Co. Ltd. (600010.SH), experienced a fatal explosion at a steel plate facility. This incident, which killed nine, has led to production shutdowns and a regional safety inspection. Baogang Group has a problematic safety record, with over 900 hazards identified in 2024 inspections and 20 production incidents causing 28 deaths between 2016-2022.
- Shanghai Ganglian E-Commerce Holdings Co. Ltd.
- Shanghai Ganglian E-Commerce Holdings Co. Ltd. is a consultancy whose information director, Xu Xiangchun, commented on the steel market. Xu stated that the explosion at the Baotou steel facility is unlikely to affect the broader steel market due to excessive supply and high plate inventories.
- Between 2016 and 2022：
- BaoTou Steel Union was involved in 20 production incidents that killed 28 people in total.
- 2024：
- BaoTou Steel Union posted net profit attributable to shareholders of 265 million yuan, down 48.6% from a year earlier; the subsidiary operating the Baotou rare-earth steel plate factory recorded a net loss of 1.3 billion yuan.
- 2025：
- Inspections across Baogang Group's steel operations identified more than 900 safety hazards.
- 2025：
- China’s crude steel output fell 4.4% to 960 million tons, the first drop below 1 billion tons in six years.
- January 7, 2026：
- The subsidiary operating the Baotou rare-earth steel plate factory was fined 30,000 yuan for failing to address safety risks at blast furnace facilities.
- January 18, 2026：
- A 650-cubic-meter saturated water and steam tank exploded at the Baotou steel plate facility, killing at least nine people and injuring dozens.
- January 19, 2026：
- The State Council Work Safety Commission launched an investigation into the Baotou explosion; the Inner Mongolia government announced a sweeping safety campaign.
- As of January 20, 2026：
- One person remained missing following the Baotou steel facility explosion.
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