On the New Track, China’s Steel Industry is Stable and Rising

China’s steel industry will open up new areas and new tracks for development, and constantly create new drives and advantages for development.

In the first half of this year, China’s GDP grew by 5.5% over the same period of last year, total retail sales of consumer goods grew by 8.2% and the value added of the service sector grew by 6.4%…… A set of high-value data maps the strong resilience of China’s economic development, and also strengthens the confidence of the stable operation of the steel industry.

This half year, the steel industry is not comfortable. Under the influence of factors such as stronger supply than demand and lower raw material prices than steel prices, the operating income of key statistics member enterprises of the China Iron and Steel Association fell 5.56% year-on-year, operating costs fell 3.06% year-on-year, total profit fell 68.76% year-on-year, profit margin fell 2.1 percentage points year-on-year, and the loss area expanded 17.4 percentage points year-on-year.

Although the process of solving is full of hardships, but “firmly grasp the priority of high-quality development” answer ideas has not changed, the steel industry has handed over a commendable “new field new track”, show “new momentum new advantages” of the “half-year test” answer sheet: China Baowu first selected the central enterprise ESG (environmental, social and governance) alliance; Angang low-density steel products to achieve the world first; Hesteel world’s first 1.2 million tons of hydrogen metallurgy demonstration project to achieve safe and smooth continuous production of green DRI products; The world’s largest diameter 1300 mm large round casting billet in Chengde Jianlong production line; China’s first “double super” mine, China Minmetals Chentaigou Iron Ore project started… In the hot practice, the iron and steel industry opens the wind, climbs the slope, and writes a vivid footnote for high-quality development.

He who watches the trend is wise, and he who rides the trend wins. To be sure, the “shape” of the stable operation of the steel industry has not changed, and the “potential” of high-quality development is more obvious. In the face of various risks that can be foreseen and unforeseeable, we must plan our own affairs in the steel industry, break the waves and move forward in the new track.

First, we need to accelerate the establishment of a new mechanism for capacity governance. We should follow the “to meet the needs of users as the purpose, the principle of supply and demand balance” of self-disciplined production, supply and demand balance, oriented to the survival of the fittest, the formation of both energy consumption, carbon emissions policy constraints, but also industry self-discipline, government supervision in line with the market rules and market requirements of the new mechanism.

Second, we need to accelerate green and low-carbon development. We will continue to deepen the transformation of ultra-low emissions to ensure that the direction remains unchanged and the intensity remains unabated. Actively implement mechanical energy efficiency projects, and continue to promote energy conservation and carbon reduction with breakthrough cutting-edge low-carbon technologies; Accelerate the development of China’s low “carbon” steel standards and strive to make them the world standard; Expand the influence of the steel industry EPD (Environmental Product Declaration) platform, and accelerate the promotion of industry mutual recognition and international mutual recognition.

Third, we will speed up efforts to achieve high standards of scientific and technological self-reliance. In the “new field and new track”, scientific and technological innovation is the most favorable support. We should give full play to the advantages of the new national system, continue to strengthen investment in scientific and technological innovation, strengthen the research of key core technologies, and create new momentum and new momentum for the high-quality development of the steel industry with high-level innovation results.

Even when facing the same track, different participants will have different choices. For the steel industry, the “1231” work focus and “232” key work promotion system of the steel industry that have reached a broad consensus is the direction of our competition for the new track. With a new development concept, we should shift from scale expansion based on production capacity to structural optimization and efficiency and efficiency improvement, and strive to promote high-quality development of the steel industry.

The giant ship of China’s iron and steel will surely cross the rapids and dangerous beaches and sail to a more magnificent victory!

Article source: China Metallurgical News