It has been learned from local media reports in China that during the end of 2009 top level management of both Baosteel and Shagang exchanged ideas on the possibilities of a share exchange and business cooperation.
Baosteel is the largest state-owned steel mill in China, while Shagang is the largest private-owned mill in this country. As their locations are not distant from each other, they generally service similar geographical markets. However, their product structures differ; Baosteel mainly produces flat rolled products, while the major products of Shanghai are construction steel.