China’s State-owned Assets Supervision and Administration Committee (SASAC) aims to push forward with mergers and acquisitions in the coal, steel, heavy equipment and thermal power sectors. Mergers between sectors and between local and state-owned companies are also included.

Among steel companies, mergers between Anshan Iron & Steel (Angang) and Benxi Iron & Steel (Bengang), and between Hebei Iron & Steel (Hegang) and Shougang Group have been highlighted as targets. This is according to the State-own Enterprises Research Centre (SERC), Kallanish notes.

SERC executive director Li Jin says Angang, Bengan, Shougang and Hegang are definitely taking part in merger scheme, but are waiting for "... proper preparations" to be completed.

Last week an official from the Liaoning provincial Development & Reform Commission revealed that the government is again considering a merger between Angang and Bengang. The idea has been pushed before but failed. However, a stronger push from SASAC may have more success in the future considering the increasing centralisation of power and the weak position of the Liaoning government.

China aims to improve its steel industry concentration ratio by boosting the share of crude steel production of the top ten firms from 35.9% in 2016 to 60% by the end of 2020.