Baoshan Iron & Steel Co Ltd (Baosteel) is searching for investment opportunities in Brazil's iron ore-rich northeastern state of Bahia, the Steel Business Briefing reported, citing Brazilian government officials.

Baosteel, China's top steel producer, is showing interest in developing iron ore reserves there to supplement its new five mln ton per year slab project with local mining group Companhia Vale do Rio Doce in Espirito Santo state, which is adjacent to Bahia, the industry publication added.