How do steel companies get out of the industry downturn? The support for this summit has arrived

Steel is called the “food” of industry. As an important basic industry of the national economy, the steel industry is an important cornerstone of the construction of a modern industrial system and a manufacturing power. Currently, the steel industry is facing a critical moment of deep transformation and reconstruction. How to achieve high-quality development in the future is a common topic of concern in the industry.

From March 29 to 30, 2024, the 16th China Steel Summit Forum was grandly held at the Zhengzhou International Convention and Exhibition Center. More than 1,500 experts, scholars, and guests from across the country gathered together to focus on hot topics such as the reform and upgrading of China’s steel industry supply chain and high-quality development of the industry under the new situation, and conducted in-depth discussions on the changes in the industry structure and future high-quality development.

【status quo】

Steel demand decreases and the industry faces structural adjustment

“With total steel consumption reaching its peak and the industry downturn reducing production, it is difficult for the scale-oriented development model to adapt to the current market development needs.” On March 30, at the opening ceremony of the 16th China Steel Summit Forum Chen Guangling, president of Tianjin Youfa Steel Pipe Group, believes that the steel industry needs to adjust to a customer-oriented service perspective and thinking to reconstruct the industrial system. In addition, under the impact of industry turbulence due to reduction in volume and structural adjustment, business shrinkage is a common problem faced by many industrial chain companies. It is necessary to cultivate new profit growth points through technological innovation, thereby completing the switch between the old and new engines of corporate growth and maintaining rapid growth. .

At the same time, the downward cycle of reduction has also put forward higher requirements for the market space layout of enterprises. “Only by being closer to the market can we have more flexible and rapid market response capabilities and service guarantee capabilities.” Chen Guangling said.

“With the adjustment of the economic structure and the development of high-end manufacturing, China’s steel demand and production will decline year by year. The size of the decline will depend on the speed of our economic transformation and the development of high-end manufacturing. In this process, The steel industry will pay more attention to quality and efficiency, rather than pure scale expansion.” Qian Min, vice president of Zhengda Pipe Manufacturing Group, also believes that the current steel industry is in a critical period of transformation and upgrading.

【Chance】

A new round of equipment updates, urban renewal, etc. bring new opportunities to the steel industry

Even in the face of a downward cycle, the opportunities for the steel industry are clear.

In 2023, the General Office of the Henan Provincial Government issued the “Implementation Plan for Accelerating the High-Quality Development of the Steel Industry in Henan Province (2023-2025)”, proposing to further promote the resource reorganization of steel companies.

At present, Henan Iron and Steel Group, established with Angang Group as the main body, is accelerating the reorganization, integration and high-quality development of the province’s iron and steel industry, increasing the concentration of Henan’s iron and steel industry, and contributing to the construction of modern Henan.

At the same time, new market demands are also coming.

“Currently, Zhengzhou City is deeply implementing the strategy of changing lanes and leading the way, accelerating the technological transformation of enterprises and industrial transformation and development, and a large number of projects such as new energy vehicles, intelligent manufacturing, and white home appliances are accelerating.” Hu Jun, deputy mayor of Zhengzhou City, said in a speech In his speech, he stated that the country is promoting a new round of large-scale equipment renewal, and the trade-in of consumer goods and urban renewal are accelerating, all of which provide a huge market for the steel industry.

Hu Jun also mentioned that in recent years, relying on convenient transportation, Zhengzhou has vigorously developed mid-to-high-end talents in the steel trade, promoted the deep integration of traditional industries and steel industries, strengthened the coordinated development of upstream and downstream enterprises, and promoted the listing of silicon steel and other ferroalloys on the stock exchange. Futures varieties continue to meet the growing market demand.

【trend】

“Integration of data and reality” helps the steel industry embrace new productivity

What new trends are emerging in the steel industry? How can companies develop their internal skills to seize the opportunities of the new round of steel demand?

Jiang Wei, deputy secretary of the Party Committee, vice president and secretary-general of the China Iron and Steel Industry Association, pointed out in his keynote speech “Prospects for the Development of China’s Steel Industry” that in recent years the steel industry has shown high output, high costs, high inventory, low demand, low prices, The “three highs and three lows” characteristics of low efficiency.

“Manufacturing steel, large-scale equipment renewal, and consumer product upgrades will generate a certain amount of new demand for high-end steel.” Jiang Wei also mentioned that there is a lot of room for imagination in the demand for steel in the fields of automobiles, home appliances, shipbuilding, and new energy. For the steel industry, “hard work, cost reduction and efficiency increase are the constant themes in coping with the industry’s downward cycle.”

Li Tao, counselor of the Henan Provincial Government and former director of the Provincial Department of Industry and Information Technology, believes that the current supply and demand of the steel industry has entered a peak plateau period and a critical period of structural adjustment. From an industry perspective, technological innovation to promote development must focus on improving quality and efficiency. From an enterprise perspective, we must look inward, strengthen management, optimize structure, and cultivate core competitiveness.

In response to the critical period of transformation of the steel industry, Li Tao mentioned that even if there is a cliff-like drop in demand, we must reduce quantity without reducing quality, and achieve high-end, intelligent and low-carbon production.

According to Jia Kang, chief economist of the China Institute of New Supply Economics, in the current wave of digital economic development, the “digital and physical integration” of China’s steel industry has become an inevitable choice to create new quality productivity.

Qian Min believes that it is necessary to analyze and learn from the development experience of developed countries, and learn from their successful practices in industrial upgrading, environmental protection, resource recycling, etc., and use them for my own use. In addition, the current customer demand for steel products is becoming more and more diversified and personalized. “We need to develop more new products in line with the market according to customer needs to increase market share. At the same time, advanced productivity is the goal that enterprises will always pursue. ”

It is understood that the China Steel Summit Forum is known as the “Boao Forum” in the steel industry. It has been successfully held for 16 times so far, effectively broadening and upgrading the channels for cooperation between China and ASEAN, countries and regions along the Silk Road, and providing domestic and foreign steel and steel products. Trading enterprises have played an important role in “expanding horizons, connecting supply and demand, and creating business opportunities.” This forum focuses on the theme of “Coping with Changes, Maintaining Stability and Prosperity” to build consensus on development, jointly promote and empower the digital transformation of the steel industry, and make new contributions to industry progress and economic development.