Baosteel and Shagang Group reportedly in talks on restructuring

From January this year, there have been rumors in the market according to which China's largest private sector steelmaker Shagang Group and state-owned Chinese steel giant Baosteel Group are in talks on the issue of corporate restructuring.
 
Questioned in relation to the rumors on February 22, Shagang Group neither confirmed nor denied them, "There is a rumor about this issue and so our staff talk about this also; however, we prefer not to disclose the real situation," the company stated.
 
Viewing the Chinese steel industry, it is considered that most privately-owned steelmakers face a tough environment at the current time. Song Jijun, deputy chairperson of the Metallurgy Industry Association of Hebei Province, has commented, "The macro political and economic environment of the steel industry has changed much. The central government has severely restricted steel output expansion, and so it is impossible for privately-owned steelmakers to prosper."