Bigger steel merger may face obstacles

Consolidation aims to cut industry's excess supply and increase overall productivity

Consolidation of China's steel industry may be more complicated than many outside observers thought, according to some central government sources.

Commenting on market rumors that China is regrouping its steel industry into two large blocs, one in south and the other in north, an official from the National Development and Reform Commission told China Daily that forming the northern steel group will probably take a much longer time than the southern group.