According to S&P Global Platts' calculations based on disclosed transaction data, the share of crude steel output of China's top ten steelmakers rose to about 43% of the country's total steel output at the end of September, up 4 percentage points from the beginning of 2021.
The increase in production share comes after a leading steelmaker bought a steel company located in northeastern China's Liaoning province in late September.
China had set a target to increase the ratio of the crude steel output of the top 10 steelmakers to China's total output to 60% by 2025. The recent purchase for raw material prices has brought the industry closer to this target, which aims to give the country higher negotiating power.
In the last few months, the industry has witnessed accelerated mergers and acquisitions among major steel producers in the country.
China's industry-wide ambitions have also fueled consolidation, and some market sources expect consolidation to pick up speed in the next three to four years. This is also supported by leading Chinese steelmakers, who are trying to increase their market share and improve their margins in an increasingly competitive market.
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