China's steel industry is undergoing a significant transformation, optimizing its steel variety structure to align with national industrial adjustments, according to the China Iron and Steel Industry Association (CISA).
In the first half of this year, steel output for construction, bridges, and machinery saw a year-on-year decline. However, demand in sectors such as automotive and ship manufacturing continued to grow, highlighting a shift in market dynamics.
Yao Lin, head of CISA, addressed these changes during a council meeting, noting that the steel sector has faced challenges including an imbalance between supply and demand, falling steel prices, rising raw material costs, and reduced economic efficiency. Despite these hurdles, Yao emphasized that the industry's overall production and operations have remained stable.
The ongoing transformation and upgrading efforts have ensured that the steel industry's product variety meets the higher demands of downstream industries. A key aspect of this transformation is the accelerated green transition and the upgrade of intelligent manufacturing processes. Currently, nearly 80% of steel enterprises are utilizing industrial internet technology to achieve smart production process control.
Looking ahead, Yao highlighted the manufacturing industry's role as the main driver supporting the steel sector. The rapid growth of new energy vehicles, increased orders for energy-powered ships, and the accelerated renewal of older ships are expected to sustain steel demand. Additionally, large-scale equipment renewal projects present further development opportunities for the equipment manufacturing industry.
Reference(s):
China's steel industry speeds up steel variety structure optimization
cgtn.com
