Special funds set to promote M&A deals in steel sector

Special funds to promote mergers and acquisitions within the steel industry are being considered by Chinese policymakers to enhance the overall competitiveness of the sector, according to a report in Economic Information Daily.

Aimed at boosting the industrial upgrades via promoting M&As in the steel sector, such funds will help big industry players gain larger market share to generate scale benefits, lower production costs and help the sector to better cope with external pressures, experts said.

The combined market share of the 10 largest steel enterprises in China was 37 percent in 2017, while crude steel production of the largest enterprises in South Korea and Japan took up 55 and 43 percent of their country's total crude steel production, according to the Lange Steel Information Research Center.