The world's largest steel producer Baowu Steel of China, which has a capacity to produce 115 million tons of steel per year, signed an agreement with the Yunnan provincial government to transfer a 90% stake in Kunming Steel to it at no cost. Kuming Steel has a capacity of 10 million tons per year, it produced 7.7 million tons of crude steel and 7.1 million tons of pig iron in 2019.

Additionally, Baowu Steel is also in talks to acquire Shandong Steel which has an annual capacity of 30 million tonnes. By making this acquisition, Baowu Steel would increase its capacity to 155 million tons per year. Some market participants said Baowu Steel might aim to reach 200 million tons capacity through more mergers and acquisitions.