Steel products need to move towards high-end

"After years of development, China's iron and steel industry has built a complete production chain with a well-developed production system that effectively meets the demand for steel products from domestic economic development. However, there has been no fundamental change in the relationship between supply and demand in China's steel market, and there has been a serious excess of steel production capacity. The situation has not changed fundamentally. Therefore, it is necessary to actively resolve excess steel production capacity, accelerate the transformation and upgrading of the steel industry, focus on accelerating the development of smart manufacturing, leading steel products to the mid-to-high end, and continuously improve the level of internationalization.” May 16, The 9th China International Iron and Steel Conference hosted by the China Iron and Steel Industry Association was held in Beijing, and the keynote speech made by the Deputy Minister of Industry and Information Technology Xin Guobin made the above statement.

Comprehensively enhance the industrial base capacity

Xin Guobin pointed out that at present, with the profound changes in the development environment at home and abroad, the downward pressure on China’s economy continues to increase, and the problem of unbalanced, uncoordinated, and unsustainable development is becoming increasingly prominent. The slowdown in China's economic growth, the pain of structural adjustments, and the interplay of kinetic energy conversions are facing multiple challenges such as stable growth, structural adjustment, risk prevention, and people’s livelihood. In general, however, during the “13th Five-Year Plan” and in the coming period, China is still in an important period of strategic opportunities for development. The long-term good fundamentals of economic development have not changed, and the basic features of good economic resilience, sufficient potential, and large room for maneuvering. Without change, the well-supported foundation and conditions for sustained economic growth have not changed, and the progress of economic structural adjustment and optimization has not changed. In particular, the vitality of reform and opening up has been continuously released, the new growth momentum has been continuously enhanced, and there are still many good opportunities and conditions for industrial development. .

Xin Guobin said that at present and for a period to come, China will adhere to the strategy of implementing the strategy of building a powerful nation as the main task, implement in depth the “Made in China 2025”, closely focus on structural adjustments, revitalize the real economy, accelerate the development of new manufacturing industries, and promote the upgrading and upgrading of traditional industries. , comprehensively enhance the industrial base capacity, strengthen the quality brand construction, and promote the manufacturing industry to become stronger and stronger.

The focus is on capacity and transformation

Xin Guobin pointed out that with the overall slowdown in world economic development, problems such as insufficient demand for steel industry and excess production capacity have gradually surfaced, and the industry has entered a critical period of transformation and development. During the "Thirteenth Five-Year Plan" period, China must focus on four aspects of its work: First, it must actively resolve excess steel production capacity. The Chinese government attaches great importance to the problem of overcapacity in steel production and actively puts it into action. During the “Twelfth Five-Year Plan” period, China has eliminated 90 million tons of steel and iron production capacity respectively. In February 2016, China issued the Opinions on Resolving Overcapacity of the Steel Industry and Relief from Difficulties, and determined to reduce pressure by 5 years. The steel production capacity will be 100 million to 150 million tons, and it will do a good job of resolving the problem of staffing overcapacity in the steel industry. Second, accelerate the transformation and upgrading of the steel industry. The key is to accelerate the pace of smart manufacturing in the iron and steel industry by developing a new manufacturing model, an intelligent service manufacturing model, and a new model of customized internet production. It is necessary to increase the level of green development, further strengthen industry standardization management, increase energy-saving emission reduction standards in the steel industry, eliminate backward equipment, guide and support steel enterprises in implementing energy-saving transformation and upgrading, vigorously develop circular economy, and increase resource and energy utilization efficiency. Third, lead the steel products to the high-end. In response to the structural contradiction between low-end oversupply and high-end supply coexistence in the Chinese steel industry, it is necessary to strengthen the building of innovation capabilities while actively resolving the excess capacity, and strive to increase the variety, enhance the quality, cultivate the brand, and constantly increase the supply capacity to meet the steel needs. Demand is constantly escalating. Fourth, continuously improve the level of international development. In the context of the world's iron and steel industry falling into a global overcapacity, some countries and regions have implemented trade remedy investigations or imposed temporary anti-dumping duties on Chinese steel products. Trade protectionism cannot solve the challenges and problems faced by the global steel industry. China opposes any form of trade protection measures and expands the export of steel products. China's steel production is mainly based on domestic demand, and it is currently the only country in the world that has taken the initiative to impose restrictions on ordinary steel exports. China will further strengthen international dialogues and consultations to jointly negotiate settlement of foreign trade disputes on steel and iron. At the same time, it will support advantageous foreign companies in adopting equity participation, holding, etc., and cooperate with Chinese steel companies in product technology innovation and management, and encourage domestic and foreign companies to develop. International capacity cooperation.

Solve the need for time verification of excess steel production capacity

Edwin Basong, Director General of the World Steel Association, pointed out that in the first few years of this century, the growth of steel demand was driven by the Chinese economy, and the growth of steel consumption was not driven solely by China. Other developing markets also contributed to growth. In 2008, economic activity in developed economies boosted steel consumption. At present, the global steel demand has entered a stable period, and investment in steelmaking capacity continues to expand, precisely because the new steel-making capacity has stimulated the continued production of steel mills, even if the demand for steel has stabilized, resulting in excess capacity in the region as the main exporter. From a long-term point of view, improving efficiency and reducing the intensity of steel consumption are the main outlets for the transformation of steel demand, and it will take a long time to resolve the excess steel production capacity.

Edwin Basong believes that the change in the volume of steel trade has brought new shocks to the industry. As a result, many steel companies have been caught in a financial crisis. The calls for industry restructuring have been continuous, but the restructuring needs to have three driving forces, namely stable demand. The increase in the efficiency of existing technology equipment and the reduction in the intensity of steel consumption. Reorganization not only has an impact on the local area, but it also has a global effect. Although local problems need to be resolved locally, most of the subsequent impacts will still be borne by the local community. Particularly on the social and environmental level, it is crucial to ensure that regional issues are not damaged. Global competition among peers. As all parts of the world are faced with the challenge of not effectively addressing environmental challenges, the difficult choices are still determined by the local authorities. Therefore, the most important issue is the principle of handling problems. In solving environmental problems and industrial restructuring, it requires the participation of the entire industry.

Since its founding in 2000, China International Iron and Steel Congress has successfully held eight sessions. The theme of this session was “rebalancing and new development”, attracting more than 500 representatives from relevant government departments, Chinese and foreign steel companies, research institutes, and associations.

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