Zhou Xizeng, chief analyst with Citic Securities, said, “Bigger mills will emerge as Baosteel and others lead domestic acquisitions. The advantages of such a policy are obvious — bigger mills will be better in technology development, have larger sales channels and lower costs.”
The unnamed source said China should have one or two producers with capacity of 100 million metric tons each by 2015 under the proposed policy. The 10-biggest mills should account for 75% of China’s output by 2020, up from an earlier target of 70%.
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