Major Chinese steelmakers experienced significant gains in their stock prices after the China Iron & Steel Association made an announcement about proposing specific policies to reform the industry. This comes at a time when the industry is facing declining demand and profitability challenges.
Angang Steel Co., the second-largest producer in the country, saw its stock rise by up to 17% in Hong Kong trading. Maanshan Iron & Steel Co. saw a surge of 24%, while Beijing Shougang Co. advanced by nearly 9%. There is speculation that this announcement could lead to consolidation within the sector, potentially benefiting larger state-owned enterprises.
The steel industry is currently dealing with economic pressures and is looking to improve its competitive position.