"China will remain the world's steel manufacturing and consumption center for the foreseeable future, but the steel industry urgently needs to adapt to the current new market environment." On November 8, at the signing ceremony of China Baomu Centralized Procurement and the "Four Modernizations" leading to promote the high-quality development of the steel industry Forum held during the sixth CIIE, Shi Hongwei, deputy secretary-general of the China Iron and Steel Industry Association, pointed out.

He believes that the steel industry is facing a new market environment, that is, the steel industry from the "incremental development" stage gradually into the "stock optimization" stage. To this end, iron and steel enterprises urgently need to promote green low-carbon, digital transformation, restructure the business foundation, and achieve high-quality development through connecting vertical and vertical, strong chain building circle.

In the report, he introduced the policy orientation of the steel industry, the "shape" and "potential" of steel supply and demand, as well as the operation of steel enterprises, and analyzed the countermeasures for the future development of the steel industry.

The picture shows Shi Hongwei

The steel industry should develop along the goal of three-dimensional balance

Shi Hongwei pointed out that a series of documents issued by the Party Central Committee and The State Council have pointed out the focus and foothold for the high-quality development of the steel industry. In particular, the "14th Five-Year" raw material Industry Development Plan "(Ministry of Industry and Information Technology, Ministry of Science and Technology, Ministry of Natural Resources issued on December 21, 2021)," Guidance on promoting high-quality development of the steel industry "(Ministry of Industry and Information Technology, National Development and Reform Commission, Ministry of Ecology and Environment issued on February 7, 2022)," Iron and Steel Industry steady growth work Plan "(Ministry of Industry and Information Technology and other seven departments Jointly issued on 24 August 2023). "Understanding the policy orientation, the future steel industry should develop along the goals of economic, ecological and safety three-dimensional balance." Shi Hongwei pointed out.

Among them, economy refers to the steel industry, steel enterprises to maintain and enhance international competitiveness. The ecological focus is to vigorously promote ultra-low emission transformation and achieve green and low-carbon development. "Ultra-low emission transformation solves the problem of environmental pollution, and 'double carbon' solves the global climate problem." He pointed out. Security includes resource security, core technology security, key equipment security, and so on.

Manufacturing steel will become an important support

Shi Hongwei introduced that since the 21st century, China's steel production has reached four levels. The first step was to join the WTO in 2001 and integrate into the global economy, from more than 100 million tons to nearly 500 million tons. The second step was from 2009 to 2011, which reached nearly 700 million tons in three years. The third step is to reach 800 million tons from 2012 to 2015 through industrial restructuring and infrastructure construction. The fourth step is that since 2016, the construction of major transportation infrastructure projects + manufacturing power + response to the epidemic has steadily grown, reaching the 1 billion ton step. "In these stages, the growth of steel consumption is mainly driven by large-scale infrastructure and real estate." Shi Hongwei said.

Shi Hongwei pointed out that the national industrial structure determines the steel consumption structure, and the steel consumption structure determines the production structure of steel varieties; With the improvement of infrastructure and the continuous advancement of the construction of manufacturing power, the decline in the proportion of steel used in the construction industry and the increase in the proportion of steel used in the manufacturing industry in the future is a general trend.

"From the change trend of steel demand structure in developed economies, there are three stages of development, one is dominated by steel in the construction industry, the second is the construction industry and the manufacturing industry, and the third is the manufacturing industry." At the moment we are in phase two." Shi Hongwei pointed out that "the precondition of production is consumption, the core of enterprise management is profit, and the dynamic adaptation of supply and demand (equilibrium) is the key."

Through connecting the vertical and vertical, strong chain building circle to create a new business foundation

Shi Hongwei believes that in the face of the new market environment, steel enterprises must reconstruct the basis of operation, including the change of development concept, the transformation of development mode, and the innovation of development path, in order to consolidate and enhance competitiveness.

"In the future, the pattern of steel enterprises is mainly composed of four types of enterprises." Shi Hongwei pointed out that the first is a large industry leading enterprise, the leading products have international competitiveness, and have the world-class technical level, equipment level, management level, to achieve global layout; The second is specialized leading enterprises, such as CITIC Pacific Special Steel, new cast pipe and other enterprises, to achieve scale on the basis of specialization, and the varieties produced in the market have a wide range of brand influence and user recognition; Third, large regional leading enterprises, that is, give full play to regional advantages, products and services to meet the regional market demand, accounting for at least 30% of the market share in their respective regions; The fourth is small and medium-sized regional supporting enterprises, which are matched with local industrial clusters and mainly meet the needs of surrounding markets.

Shi Hongwei said that the formation of these four types of enterprises needs to go through the path of Lianhe (restructuring), Lianhe (joint), integration (industrial chain), diversification (building circle), and internationalization, that is, Lianhe and Lianhe and strong chain building circle.