- Issue Time
The prospect of a merger between two of China’s big, state-owned steel producers is generating excitement within the industry.
Overcapacity is the big issue in steel production circles and any efforts to reduce the amount of excess steel being dumped on the ‘rest of the world’ is welcomed, especially as it shows that the Chinese are prepared to do something about the global steel glut that is closing steel plants and reducing profits the world over.
Baosteel Group – ranked fifth in terms of crude steel production in 2015 – and Wuhan Iron and Steel Group, ranked 11th, are the two companies concerned and it is estimated that more details of a deal being struck between the two Chinese steel giants might emerge in September.
Source: Nikkei Asian Review.