China considering steel giant mergers

Bloomberg reports China is considering a sweeping overhaul of its steel industry that would consolidate major producers into two giants, with one located in the north and another in the south, according to people familiar with the plan. 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 and Shougang rose on the news.