Industry is the main body and engine of economic growth, and reviving the industrial economy is a solid support to stabilize the economic market. Recently, the Ministry of Industry and Information Technology, the National Development and Reform Commission and the State-owned Assets Supervision and Administration Commission of the State Council jointly issued the Notice on Consolidating the Recovery Trend and Strengthening the Revitalization of the Industrial Economy (hereinafter referred to as the Notice).

The Circular put forward 17 specific measures in five aspects: taking multiple measures to consolidate the foundation for stabilizing the industrial economy, taking measures to strengthen the stable development of key industries, taking measures to promote coordinated development of industrial economy in different regions, taking measures to continuously enhance the vitality of enterprises by enterprises, and taking safeguard measures, so as to "increase the capacity" and enhance the driving force for the stable recovery of the industrial economy.

In addition to this weighty news, since the beginning of this year, many provinces and cities have once again mentioned the "city with strong industry", which also means that more and more regions have put the real economy in the first place again, pushing the importance of industry to a new height.

Reinvigorate the industrial economy

According to the circular, we will ensure that the industrial economy operates within a reasonable range in the fourth quarter of 2022, and keep the share of manufacturing basically stable, so as to lay a solid foundation for achieving "stable door opening" and accelerating new industrialization by 2023.

In view of the prominent problems and difficulties facing the current industrial economy, the Circular proposes to accelerate the construction of major projects to form a physical workload, vigorously and orderly promote the implementation of major engineering projects related to the 14th Five-Year Plan for the manufacturing industry, make good use of various policy tools, support enterprises' investment in equipment upgrading, and guide government investment funds to increase investment. We will tap the potential of the market to increase consumer demand, stabilize large purchases of automobiles and other items, promote a series of nationwide "three products" of consumer goods, and tap the potential of green consumption and information consumption. We will stabilize the export of industrial products, implement policies and measures to stabilize foreign trade, strengthen services for foreign trade enterprises, and support the development of new forms of business in foreign trade. We will improve the resilience and security of industrial and supply chains, and ensure the supply of energy, important raw materials, and key parts and components. We will continue to strengthen new growth drivers, foster clusters of advanced manufacturing, integrate next-generation information technology with manufacturing, and accelerate the development of the digital economy.

We will consolidate the upturn of the industrial economy with the focus on industries. We will make coordinated efforts to strengthen infrastructure, strengthen weak areas, build long boards, foster clusters, and improve the ecosystem. We will upgrade the industrial base and modernize the industrial chain, and promote the high-end, smart, and green development of key industries. Among them, the "Notice" in the steel related content has the following plan:

1. Focus on industrial segments or key products with good industrial foundation, outstanding comparative advantages and advanced technologies, give full play to the leading role of leading enterprises in the industrial chain, and support the formation of a number of industrial clusters in petrochemical, chemical, steel, non-ferrous metals, rare earth, green building materials and new materials.

2. Implement the implementation plan for peaking carbon in fine industries and key industries such as petrochemical, chemical, steel, non-ferrous metals, and building materials, improve the green manufacturing system, and accelerate the popularization and application of energy-saving and carbon-reducing equipment technologies.

3. Ensure stable supply of bulk raw materials, improve the "red, yellow and blue" early warning mechanism for bulk raw materials supply, flexibly use state reserves to carry out market regulation, and keep prices within a reasonable range.

4. Improve the ability to ensure the supply of strategic resources, further improve the recycling and utilization system of renewable resources such as scrap steel and used power batteries, study and formulate overall plans for the development of key resources and industrial development, carry out early warning of photovoltaic calendered glass capacity, and guide the rational layout of photovoltaic calendered glass projects.

5. Accelerate the construction of domestic (key) iron ore projects and promote the construction of smart mines.

6. Optimize the layout and build a national key platform for new materials, deepen the implementation of the insurance compensation mechanism for the first batch of applications, and accelerate the integration of production and application of a number of key new materials and their market application and promotion.

Many places explicitly put forward "industrial city"

According to the report to the 20th National Congress of the CPC, we will continue to focus on the real economy in developing the economy, promote a new type of industrialization, accelerate the building of a strong manufacturing country, and make plans to promote high-end, intelligent and green development of the manufacturing industry, and promote the development of strategic emerging industries.

In fact, "manufacturing power" has been deeply branded on the base of urban development. Since the beginning of this year, many cities such as Guangzhou, Tianjin and Hefei have put forward the strategic goals of "building a city by industry" and "building a city by manufacturing". Even Shenzhen, which has an industrial added value of more than one trillion yuan, announced in May this year that it would "create a new pattern of industrial development and create new advantages to strengthen the city".

Our country is the country with most complete category of industry all over the world, born a batch of trillion class industrial strong cities. As can be seen from the following chart of the industrial added value of major cities in 2021, the economic development of the 20 cities on the list is directly proportional to the industrial added value. The top 10 cities with the strongest industrial strength are Shanghai, Shenzhen, Suzhou, Chongqing, Guangzhou, Ningbo, Foshan, Quanzhou, Beijing and Tianjin.

As we all know, China's iron and steel see Hebei, Hebei iron and steel see Tangshan, Hebei Tangshan is a typical heavy industry city, steel as the first pillar industry, accounting for more than half of the industrial added value.

Thus, to develop the economy, the real economy, especially the industrial economy, is the top priority, which is not difficult to understand the three ministries jointly issued this "notice". According to the requirements of the Circular, the development of the real economy and industrial economy will accelerate the promotion of the construction of major projects to form the physical workload, to tap the market potential to expand consumer demand, will promote the steel demand, and promote the sustainable, healthy and orderly development of the steel industry.

Steel demand will remain in the order of 900-1 million tons

According to the above analysis, it has been seen that the country and some regions have invested in the development and construction of industrial economy, in order to promote the recovery of China's industrial economy. How much steel is needed?

According to data analysis provided by Zhang Longqiang, Secretary of the Party Committee and president of the Institute of Metallurgical Industry Information Standards: The consumption of steel in steel structure housing, about 100 kilograms per square meter, if it is conventional steel consumption of reinforced concrete structure, about 50 kilograms, that is, twice. If the housing construction area drops significantly, but the proportion of steel structure is raised, it can ensure the steel consumption of 900 million to 1 million tons. In addition, it also includes municipal construction, highway construction in the bridge, if also improve the proportion of steel structure, then the steel consumption will be some incremental, and this is related to the future of the incremental channel of steel.

In short, the increase in steel consumption should be restrained in the short term, but the basic consumption of 900 million tons, 1 billion tons will remain for some time, so the steel industry should not be overly alarmed.

The iron and steel industry is an important basic industry of the national economy, the three departments jointly issued the "notice", such as Shanghai, Guangzhou and Shenzhen are in the "industrial city"...... These good news have brought positive signals to the steel industry, the future real economy, industrial economy as the leading environment, will drive steel demand, help steel enterprises out of the winter!