China's steel industry is on the brink of a bankruptcy wave, as nearly three-quarters of steelmakers reported losses in the first half of the year, according to Bloomberg Intelligence. Senior analyst Michelle Leung highlighted that companies such as Xinjiang Ba Yi Iron & Steel Co, Gansu Jiu Steel Group, and Anyang Iron & Steel Group are at the highest risk and may become acquisition targets. This crisis is prompting a consolidation push, with the Chinese government aiming for the top five companies to control 40% of the market by 2025. The ongoing property crisis and declining economic growth are exacerbating the situation, leading to increased exports and potential trade backlash.