Bloomberg reported that Anshan Iron & Steel Group parent of China's second-biggest steelmaker may build a 10 million tonne plant matching an investment plan by a rival that may cost CNY 60 billion.

Mr Zhang Xiaogang president of Anshan said the company is studying the possible venture with Fujian Sangang Company in China's southeastern province of Fujian. He said that “We are still studying the project so nothing has been decided.''

The report added that Chinese steelmakers are expanding capacity to meet higher demand in the world's fastest growing major economy. Baosteel Group Corp, the nation's largest steel producer last month said a planned 10 million tonnes plant may cost CNY 60 billion.