Govt moots steel revamp, global edge

China has issued a guideline to encourage major local steel enterprises to carry out mergers and acquisitions, boost industry concentration and raise endogenous power, in order to build world-class conglomerates.

In a guideline on promoting the high-quality development of the steel industry, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Ecology and Environment urged steel enterprises to carry out M&As across regions to reverse the "small, scattered and disorderly" situation in steel capacity.

"Responding to the call of the guideline, we expect to see several industry leaders to take action in the coming years," said Zhang Tieshan, assistant to the president and general manager of marketing department with csesteel.com, a Shanghai-based e-commerce and trading platform.