The slowdown may represent an opportunity for bigger steel companies to buy rivals and Baosteel's plans to reach 80 million tons of output by 2012 could be achieved by acquisitions, he said.

Baosteel was looking to "promote intensive cooperation" with Taiwan-based China Steel Corp in areas including mergers and acquisitions.

The two companies are looking at sharing acquisitions experience and technologies, China Steel Chairman Chang Chia-juch said yesterday.