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China's steel industry shifts from scale expansion to quality competition, says CISA
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According to a report from the 15th China International Steel Congress, China's steel industry has largely ended its extensive expansion model and is now entering a new stage focused on high-end, intelligent, and green upgrades. China Iron and Steel Association Vice President Jiang Wei stated that the industry is undergoing a comprehensive transformation through integrated innovation in capacity, equipment, products, services, and green transition. Key developments include: high-value steel products for automotive, marine, nuclear, and new energy sectors achieving global firsts and import substitution; manufacturing steel use surpassing construction steel; widespread adoption of digital technology, industrial internet, and AI large models in steelmaking; and the world's largest and strictest ultra-low emission retrofit program, with over 80% of crude steel capacity meeting standards during the 14th Five-Year Plan period. Looking ahead to the 15th Five-Year Plan period, the industry will focus on enhancing industrial foundation capabilities, promoting green and smart manufacturing, controlling capacity expansion, boosting industrial concentration, and securing resource safety. Association President Liu Jian emphasized shifting from selling steel to providing comprehensive solutions including materials, technology, services, and green brands, while collaborating with downstream sectors to overcome critical material bottlenecks and resist vicious competition.
Source report
At the 15th China International Steel Congress held recently, it was revealed that China's steel industry has largely moved away from its extensive expansion model and is now fully entering a new stage of high-end, intelligent, and green upgrading.
Comprehensive Transformation Underway
Jiang Wei, Vice Chairman and Secretary-General of the China Iron and Steel Association (CISA), stated at the conference that the industry is driving systemic restructuring through integrated innovation, achieving comprehensive transformation in production capacity and equipment, products and services, and green transition.
High-End Supply
The steel industry has strengthened innovation and optimized product variety. Multiple steel products used in sectors such as automobiles, marine engineering, nuclear power, and new energy have achieved global firsts and import substitution. For the first time, steel used in manufacturing has surpassed that used in construction. Production of high value-added steel plates and stainless steel has grown significantly, with product supply now better aligned with industrial upgrading needs.
Intelligent Manufacturing
Breaking away from the traditional experience-driven model of scale expansion, the industry is leveraging digital technology, industrial internet, and AI large models to enable smart steelmaking. It is actively promoting "AI + Steel" application scenarios, building and improving digital standards systems, and enhancing efficiency and production precision.
Green Transition
The steel industry is advancing the world's largest and most stringent ultra-low emission transformation. During the "14th Five-Year Plan" period, over 80% of crude steel production capacity has achieved ultra-low emissions. A number of low-carbon metallurgy demonstration projects, including hydrogen-based shaft furnaces and near-zero-carbon plants, have been launched. Multiple batches of low-carbon emission steel products have been released, continuously strengthening the hardware and software foundation for low-carbon transformation.
From Scale Expansion to Quality Competition
"Looking at the broader industrial cycle, China's steel industry is transitioning from scale expansion to quality competition," said Jiang Wei. He emphasized that the key to responding to change and achieving quality upgrading lies in technological progress, driven by comprehensive integrated innovation and systemic reform.
Priorities for the "15th Five-Year Plan" Period
During the "15th Five-Year Plan" period, the steel industry will focus on:
- Enhancing overall industrial foundational capabilities and supply chain modernization
- Advancing green, low-carbon transformation and intelligent manufacturing
- Controlling capacity expansion
- Promoting industrial concentration
- Ensuring resource security
- Accelerating the internationalization of the steel industry
Industry Leadership on Future Direction
Liu Jian, President of CISA, stated that the industry will deepen capacity governance and implement key projects, including:
- A quality and product innovation project
- An energy and carbon efficiency improvement project
- A digital and intelligent transformation project
He also called for expanding diverse application scenarios for steel products and strengthening talent development and association building.
"Technological innovation should lead industrial innovation to break through homogeneous competition and drive the steel industry toward high-quality, differentiated transformation," Liu Jian said. He stressed the need to improve standards and inspection systems, cultivate brands for low-carbon emission steel and high-end specialty steel, and promote the industry's shift from "selling steel" to becoming a comprehensive solution provider that "sells materials, technology, services, and green brands." He also urged joint efforts with downstream sectors to tackle "bottleneck" specialty materials, build shared interest communities, and resist vicious competition.
Source
中国能源网Eastern
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China's steel industry shifts from scale expansion to high-end, green, smart upgrades