, Shanghai State-owned iron and steel giant Baoshan Iron & steel is the same State-owned iron and steel giant, have been studied in merged to WISCO in Hubei Province, the China business is deteriorating. Has both the merger when and how and specifics, such as the handling of the production further to scrutinize.

both production of crude steel for iron and steel products last year, Baoshan Iron & steel group in the world fifth, Wuhan iron and steel group ranked 11th, the merger would enable the production of the group as a whole becomes approximately 60 million tons, Nippon Steel & Sumikin metal such as a giant steel makers in the world's second largest.

China produces about half the world's steel, is affecting the profitability of the companies exacerbated by excessive production and exported cheaper overseas and giving blow to the international steel industry, has become a problem. For this reason, China regards structural reforms to reduce excess production capacity of iron and steel, shows the company selection (touta) also expressed the merger movement will lead to excessive production cuts or attention.