China's plans to amalgamate its largest steel mills could reverse years of industrial fragmentation, as the government has set a goal of focusing 60 percent of the market share on top players.
The top 10 Chinese steelmakers had a market share of about 50 percent in 2010, which fell to 34 percent last year as smaller mills increased output. Although, the share in coal has grown from 30 percent to 42 percent.
The nation, which produces more than half of the world's steel, is setting up one of the world's largest steel companies, announcing plans to merge China's Baosteel Group Corp. and Wuhan Iron & Steel Group Corp, which are among the largest steel producers in the country.
The top 10 steelmakers are expected to control 60 percent of production by 2025, in line with targets set by the Chinese government. However, previous goals for strengthening the upper echelons of the metals industry have been undermined by the rapid growth of small firms, as well as mergers that "happened only on paper."
China faces difficulties in metallurgy reform
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Azovpromstal® 23 September 2016 г. 10:31 |
