The pace of reorganization of the steel industry has accelerated. The country has initially formed seven industry leaders

Recently, Anyang Iron & Steel announced that for Sinosteel’s acquisition of the restructured Anyang Iron & Steel Group Co., Ltd., the company’s controlling shareholder Angang Group responded that Anyang Iron & Steel Group did not have any form of contact with Sinosteel’s central SOEs regarding asset restructuring.
Although Anyang Steel issued a clarification announcement on the reorganization, it did not prevent the entire steel industry from restructuring. Market participants believe that the seven major industry leaders that have been initially formed in China are expected to become the basic pattern for future joint reorganization. China's steel industry may set off a wave of large-scale mergers and acquisitions.
The “Guidelines for Promoting the Merger and Reorganization of Iron and Steel Enterprises” organized by the Ministry of Industry and Information Technology clearly stated that through mergers and reorganizations, it will focus on cultivating 3 to 5 companies with strong international competitiveness and actively promote 6-7 steels with strong strength. The enterprise group implements strategic mergers and acquisitions nationwide. Prior to this, in the State Council's "Several Opinions on Suppressing Overcapacity in Some Industries and Duplicate Construction and Guiding the Healthy Development of Industries", steel is on the list. Regarding the policy orientation of the steel industry, it proposes to “make full use of the current market reversal mechanism, and reduce or not increase production capacity, eliminate outdated, joint reorganization, and relocation of urban steel plants, accelerate structural adjustment and technological progress, and promote the realization of the iron and steel industry. From big to strong."
The merger and reorganization of the steel industry should be a good show again and again. In an interview with an unnamed person, one person speculated that Baosteel, Anshan Iron and Steel, Wuhan Iron and Steel, Hebei Iron and Steel, etc. will be the main force of mergers and reorganizations. These steel companies will become stronger and stronger in the future. At present, the seven industry leaders that have been initially formed in China are expected to become the basic pattern of future joint reorganization.
In fact, in the past two years, China's steel industry mergers and reorganizations have already staged many wonderful dramas. Statistics show that there have been 28 mergers and acquisitions in 2007 and 2008. It should be said that these have opened the prelude to the wave of mergers and acquisitions that the Chinese steel industry has been shouting for many years. How to increase the competitiveness while increasing the capacity while integrating quickly will test the strategic vision of major steel companies.
However, people in the industry pointed out that reorganization and mergers and acquisitions of iron and steel companies should be oriented toward improving competitiveness. It is not a large-scale steel company that is the subject of restructuring, but should be a highly competitive enterprise. Only companies with complementary competencies are the best pairing choices for reorganization, and measuring the success criteria of reorganization companies is whether the competitiveness can be improved.
Although the pace of mergers and reorganizations of China's steel enterprises has accelerated this year, some industry experts pointed out that the trend of mergers and reorganizations within the region is also accelerating, which results in increased resistance to mergers and reorganizations of large enterprises across regions.
According to sources, China has become the world's largest steel producer. By 2015, it should have one or two steel mills with an annual output of 100 million tons; by 2020, the top ten steel companies in the country will account for the total output. 75%.
Looking at the current domestic steel companies, among the more than 900 companies, the top nine steel producers with an annual production capacity of 10 million tons or more accounted for only about 39% of the country's total output. This compares with a slight decline in more than 40% in 2008. Among them, Baosteel Group, Wuhan Iron and Steel Group and Anshan Iron and Steel Group, the Big Three output only accounts for less than 20% of the national total. While the top four steel companies in the United States accounted for more than 60% of the country's total production, the top four steel companies in Japan exceeded 70%.
In the "Iron and Steel Industry Adjustment and Revitalization Plan," it is clearly stated that by 2011, the country will form several large-scale iron and steel enterprises with a production capacity of 50 million tons or more and a strong international competitiveness; a number of production capacity will be 10 million - 30 million tons of large-scale steel enterprises.
From this point of view, mergers and acquisitions in the industry will be destined to become the trend of the times, and super steel companies will also become stronger and stronger.

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