China Said to Eye Steel Mega-Deal

The video discusses the potential merger in the Chinese steel industry, driven by the government's strategy to consolidate small steelmakers into larger, more efficient mills. This move aims to control 60% of China's steel production by 2020, impacting global markets and competitors like Japan and Korea. The merger is part of China's broader plan to reduce pollution and increase efficiency across state-owned industries. The consolidation could challenge global competitors, requiring them to adapt to a more powerful Chinese presence in the steel market.

What impact might the merger have on global steel prices and markets?

What concerns might existing steelmakers have regarding the emergence of a new large competitor?