"For the steel industry, 2023 is a very challenging year, and the industry operation shows a trend of 'weakening demand, falling prices, high costs, and declining profits'." However, if the steel industry has entered a period of deep adjustment, I think it is still a bit pessimistic. I think it should be understood that the current steel industry is in a period of improvement to high-quality development. The steel industry around the implementation of high-quality development to have specific measures, simply rely on the original scale expansion model will certainly not change our passive situation, we must take the innovation, low-carbon, intelligent road." Recently, during the sixth session of the China Iron and Steel Industry Association, the new president of the Steel Association, the Party secretary of China Mineral Resources Group, Chairman Yao Lin in an interview with the reporter of China Metallurgical News, around the current development stage of China's steel industry, the situation facing, the future path of high-quality development explained his own views.
The picture shows Yao Lin accepting an interview with China Metallurgical News
"Standing" and "breaking" is the development direction of China's steel
Although China's steel in 2023 focuses on "coping with the downward cycle" and "breaking through" and other challenges, Yao Lin is optimistic about the situation facing China's steel in 2024: "The steel industry faces good development opportunities in 2024, and the confidence comes from the fact that China's economic recovery will continue to be good, and the steel industry is undoubtedly a beneficiary industry."
At the Central Economic Work Conference held in December last year, it was pointed out that in economic work this year, we should seek progress while maintaining stability, promote stability through progress, first create growth and then break down, and make positive efforts to change the growth model, adjust the structure, improve quality and increase performance.
"Although the steel industry is still facing relatively large pressure in operation, if it can take the initiative to seize the opportunity, actively transform, and solve some problems restricting the development of the industry, the development of 2024 will be more healthy." In Yao Lin's view, "standing" and "breaking" is the development direction of China's steel.
What is the biggest problem the steel industry should solve? "From the past situation, we have to break the dependence of the industry development on scale." The path of simply scaling up to reduce costs and improve so-called metrics now looks unsustainable." Yao Lin explained, "Such development will inevitably bring about an increase in inputs of raw materials. As a large importer of raw materials, if our development solely depends on raw material input, it will affect the benefit growth of the entire industry and also affect the sustainable development of the industry."
So what will the steel industry do? "The steel industry should seize the window period of economic recovery and explore a new way in terms of scientific and technological innovation, green, low-carbon and intelligent transformation, which are the elements of high-quality development." "China's steel industry accounts for more than 50 percent of the world's production capacity, and if it can play an exemplary role in these three aspects, it will lead the development of the global steel industry," Yao said.
"Scientific and technological innovation, green low-carbon, and intelligent transformation correspond to the three dimensions of high-quality development - high-end, green, and intelligent." In those three areas, we have a good foundation." Yao Lin believes that China's steel has had some good cases of "first standing and then breaking", laying a solid foundation for high-quality development.
In terms of high-end, Yao Lin stressed that it is necessary to be based on the perspective of leading demand and upgrading consumption, so that steel can better serve the market and serve users. After years of technological accumulation in the steel industry, the ability in this respect is based, the next step is how to further understand the market demand through the close connection of upstream and downstream, focus on the high-quality transformation of innovation results, expand the application space of steel materials, and achieve diversified market development.
In terms of green, Yao Lin pointed out that China's steel is currently the world's most advanced in terms of ultra-low emission indicators and technology, and it should also be a global example of green and low-carbon development in the future. First, it is necessary to speed up the research process of low-carbon emission related standards in the steel industry and play China's role in the green development process of the world's steel; Second, we should use digital intelligence technology to promote the coordinated development of carbon emission reduction, ultra-low emission and extreme energy efficiency, and improve the efficiency of resource and energy utilization. Third, we should increase the research and development and application of green and low-carbon technologies, carry out profound changes in product research and development, production process, management mode and environmental governance, reduce carbon emissions, and strive to build a green, low-carbon and sustainable industrial system.
In terms of intelligence, Yao Lin analyzed that Chinese steel has a unique advantage because of its large volume. Wisdom comes from data, data and volume are directly related, small volume will not produce large data. Such a large scale of China's steel industry will encounter various scenarios, and big data will play a good supporting role in the realization of intelligence in the industry. In the next step, intelligent manufacturing technologies such as the industrial Internet of Things and big data should be comprehensively used to optimize industrial processes and promote the deep integration of new technologies such as digitalization and intelligence with the industry.
Industrial ecology should change from a competitive type to a competitive type
The establishment of China National Mineral Resources Group in July 2022 is a major measure to enhance China's ability to ensure the supply of important mineral resources, which is of great significance to ensure the security of the industrial chain and supply chain and promote high-quality development. As the head of China Mineral Resources Group, Yao Lin believes that it is very important to build a safe, efficient, win-win and sustainable industrial chain supply chain.
"Industrial chain cooperation, I think the key is coordination, to change the industrial ecology from the original competition to the competition and cooperation, we should do more articles on long-term strategic cooperation." Yao Lin said.
Yao Lin further pointed out that the steel industry from the previous high growth stage to the current optimization stage, competition and cooperation is the best choice for everyone. Competition and cooperation is to seek cooperation in competition, and there is competition in cooperation. The focus of competition and cooperation is to achieve high-quality development in the stable transition period.
"If the steel industry can establish a stable strategic cooperative relationship with downstream users, then there will be more confidence and stronger support for technological innovation investment to meet user needs." If the steel industry can reach strategic cooperation with upstream raw material suppliers, then no matter how the market changes, it can still maintain the stability of supply and demand. For upstream raw material suppliers, there will also be much greater certainty in investment decisions and development goals." Yao Lin said.
At present, China's total steel consumption has entered the peak plateau period, and the total demand will gradually decline is the consensus of the industry, and the high-quality development of the industry should comply with the new trend of reducing development. "We should strengthen the awareness of the industrial chain, strengthen communication and exchanges, innovate cooperation models, achieve symbiosis and common prosperity of the industrial chain, and strive to maintain the smooth operation of the market." Yao Lin stressed.
"With the strong support of the national ministries and commissions, the Steel Association will continue to play a good role as a bridge and the function of the platform, strengthen communication and exchanges with member units, form consensus, actively offer suggestions, and be more active in promoting the optimization of iron ore procurement and the development of iron resources." I also make a statement on behalf of China Mineral industry, we will take 'ensuring resource security and promoting harmonious development' as our mission, take 'gathering source sharing and benefiting the world' as our purpose, adhere to the road of platform, data intelligence and green, comply with the needs of industry enterprises, and contribute to the high-quality development of the industry." Yao Lin finally said.
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