CRI听力:China mull merger to create two steel giants: media

A sweeping overhaul of the Chinese steel industry is reportedly in the works that would consolidate major steel producers into two giant firms, with one covering the north of the country, the other in the south.

It's being reported the Shanghai Baosteel Group and Wuhan Iron & Steel will be merged into an entity called the Southern China Steel Group.

Shougang Group and Hebei Iron & Steel in the north will be turned into the Northern China Steel Group.

Smaller steel companies in the regions will eventually be absorbed into the two new super-firms.

While the plan hasn't been confirmed, the State Council has been discussing broad-based concepts of restructuring Chinese State-owned steel firms.

The Chinese government has a goal of cutting steel production by 45 million tons this year.

However, it's being reported only around 30-percent of the reduction targets have been met so far this year.

For more on what's happening in the Chinese steel sector, CRI's Shane Bigham spoke earlier with John Ross, senior fellow at the Chongyang Institute for Financial Studies at Renmin University.