Reportedly, China aims to bring around 60 of total steel capacity under the control of its top 10 steel mills by 2015 as part of the plan to restructure its industries.
The Ministry of Industry and Information Technology (MIIT) announced the encouragement of consolidation in various sectors, including automobile, machinery manufacturing and metals.
Although half of China's total steel capacity is generated by 10 biggest steel firms, Beijing has still struggled to curb red tape from local bureaucracies or change the economic incentives that have allowed small and private mills to thrive.
Meanwhile, according to vice-secretary general of the China Iron and Steel Association, Mr. Chi Jingdong, total steel capacity reached 980 million metric tons, a surplus of nearly 300 million tons.