Ferro-alloys.com

Sources reported citing an insider close to the situation said after four years of negotiations, the merger talks between Baosteel Group Corp the parent of China largest steelmaker, Baoshan Iron and Steel Co and Inner Mongolia based Baotou Iron and Steel Group have failed.

The deal collapsed after the intervention of the local government in Baotou last month. Anshan Iron and Steel Group Corp, a rival of Baosteel was expected to move in with its own bid for Baotou Iron and Steel.

50% of the country total national production capacity was expected to be controlled by the top five Chinese mills by the end of this year. However, the figure was 29% by the end of 2009.

Shanghai listed Baoshan Iron and Steel un audited net profit was CNY 5.75 billion in 2009 down by 10.93%YoY. The firm total operating revenue last year dived 25.97% from the previous year to CNY 148.54 billion. Baosteel attributed the decline in net profit and operating revenue to last year's decreasing steel prices.

(Sourced from www.ferro-alloys.com ,right remained