Steel companies in China should promote mergers and acquisitions to improve their ability to deal with the blow dealt by COVID19 pandemic, China Iron and Steel Association (CISA) suggested on Monday in a video conference. CISA states its review of China steel industry operations did not showcase an optimistic picture.
Representatives on 13 steel companies participated in the meeting. Other suggestions included increasing investment in technological innovation and enhanced industrial integration. CISA also asked steel manufacturers to control production to avoid oversupply situation. The association states companies should grab opportunities arising with new infrastructure development and continue to promote intelligent manufacturing while accelerating green development.
In Q1 2020, despite the COVID-19 outbreak operations of the steel industry were stable. The challenges faced by the industry have increased with the global spread of the virus.