China Draws Plans to Speed Steel Industry Consolidation
The Ministry of Industry and Information Technology (MIIT) is drawing up suggestions to consolidate China's steel industry into three to five major companies to combat overcapacity, Evening News reported February 8 citing Vice Minister Miao Wei. MIIT's notice listed China's five largest steel companies as Angang Steel (0347.HK, 000898.SZ), Hebei Iron and Steel Group(000709.SZ), Baosteel Company (600019.SH) parent Baosteel Group, Wuhan Iron and Steel (WISCO) (600005.SH) and Jiangsu Shagang Group.
China now has a total of more than 4,000 iron and steel enterprises, with its five largest companies now producing 29% of the country‘s steel output, below a State Council target of 45% by 2011, the report said.
China‘s crude steel demand is expected to grow by 8-10% year-on-year to between 610 million and 620 million metric tons in 2010, caihuanet.com reports February 8 citing China Iron and Steel Industry Association Director Deng Qilin.
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