The merger of Baosteel and Wuhan Iron and Steel is a tangible sign of consolidation in the Chinese steel sector. It likely comes as a response to falling exports – national exports of steel materials and products fell 4.4% in the three months to July 31, Panjiva data shows. Baosteel performed inline, its exports dropped 4.7%, while Wuhan clearly needs the help – its exports slumped 12.2%.