Major State-owned steelmakers, such as Baosteel, Angang Steel and Wuhan Iron and Steel Group, are expected to take the lead in industry consolidation this year.

Shanghai Securities News said the government would take new measures to encourage restructuring in the steel industry citing details of a stimulus plan for the sector.

The stimulus plan, which was approved by the State Council, or the Cabinet, in January, said the government would encourage restructuring of steel makers, without providing any details.