China's steel industry was in trouble in the first half of this year, with sluggish steel demand and falling prices, but rising prices of raw materials for production hit corporate profits. Therefore, market participants considered that changing the supply of the steel market will be more beneficial than increasing the demand.

Baosteel adopted a strategy of product differentiation, such as automobile steel, and directional and non-directional silicon steel, to increase its competitiveness.

In general, there are a large number of steel enterprises in China, but the concentration of related industries is low, which made it impossible to dominate the price trend of raw materials.

In 2015, the downturn in the steel industry created Baosteel Group, so the current situation in 2022 may also drive a wave of enterprise consolidation and accelerate the steel industry concentration.