Hebei Iron & Steel Group, the nation’s biggest mill by output, and Shougang Group will be combined into Northern China Steel Group, while No. 2 producer, Shanghai Baosteel Group Corp., and Wuhan Iron & Steel Group Corp. will be merged into Southern China Steel Group, said the people, who declined to be identified because the information is confidential. Shares in the listed units of Hebei Iron & Steel Group and Shougang Group rose the most in over two weeks after the news. China’s crude steel-producing capacity reached a record of 1.2 billion tons at the end of 2015, according to the China Iron & Steel Association. Reduce overcapacitySuch combinations would enhance government efforts to reduce overcapacity in the world’s biggest steel producer as part of its drive to overhaul an inefficient state sector and bolster an economy growing at its slowest in decades.

Source: Thanhnien News August 01, 2016 06:56 UTC