[Industry News] To Promote Structural Optimization and Upgrading, the China Iron and Steel Association Calls for Balanced Development Focusing on Both Quality and Efficiency in the Industry.

On October 31, the China Iron and Steel Association (hereinafter referred to as “CISA”) held its third-quarter information briefing. Attending the briefing were Jiang Wei, Deputy Secretary of the CISA Party Committee, Vice President and Secretary-General, and Spokesperson; Shi Hongwei, Deputy Secretary-General and Director of the Market Research Department; Huang Dao, Deputy Chief Engineer; Jiang Xiaodong, Deputy Secretary-General and Director of the Industry Operations Department; and Wang Bin, Director of the Planning and Development Department. Jiang Wei delivered a report titled “Maintaining Supply-Demand Balance, Enhancing Quality and Efficiency, and Promoting Stable Operation and Structural Optimization and Upgrading of the Iron and Steel Industry,” covering the industry’s performance in the first three quarters, the current situation facing the industry, achievements made in high-quality development during the 14th Five-Year Plan period, and key areas of focus for the coming period.

On October 31, the China Iron and Steel Association (hereinafter referred to as “CISA”) held its third-quarter information briefing. Attending the briefing were Jiang Wei, Deputy Secretary of the CISA Party Committee, Vice President and Secretary-General, and Spokesperson; Shi Hongwei, Deputy Secretary-General and Director of the Market Research Department; Huang Dao, Deputy Chief Engineer; Jiang Xiaodong, Deputy Secretary-General and Director of the Industry Operations Department; and Wang Bin, Director of the Planning and Development Department. Jiang Wei delivered a report titled “Maintaining Supply-Demand Balance, Enhancing Quality and Efficiency, and Promoting Stable Operation and Structural Optimization and Upgrading of the Iron and Steel Industry,” covering the industry’s performance in the first three quarters, the current situation facing the industry, achievements made during the 14th Five-Year Plan period in pursuing high-quality development, and key areas of focus for the coming period.

Since the beginning of this year, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, China’s economy has continued its steady and progressive development trend, achieving positive results in high-quality development. The steel industry has actively responded to challenges posed by strong supply and weak demand, as well as numerous external risks stemming from instability and uncertainty. It has focused on “controlling total output, optimizing supply, expanding demand, and promoting transformation,” strengthened industry self-discipline, and consistently adhered to the business principle of “three fixed points and three no’s.” As a result, crude steel production has remained stable while gradually declining, economic benefits have significantly improved, resilience and vitality of the industry have further strengthened, the cultivation of new-quality productivity has accelerated, and the industry’s foundational capabilities and the modernization level of its industrial chains have been further enhanced.

From October 20 to 23, the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing. The session highly praised the significant achievements made during the 14th Five-Year Plan period in China’s economic and social development, conducted an in-depth analysis of the profound and complex changes currently facing the environment, and adopted the “Suggestions of the CPC Central Committee on Formulating the 15th Five-Year Plan for National Economic and Social Development.” This document provides top-level design and strategic guidance for development over the next five years, offering fundamental principles and actionable guidelines for the high-quality development of the steel industry during the 15th Five-Year Plan period. Currently, the steel industry is earnestly studying, publicizing, and implementing the spirit of the plenary session. It is making every effort to ensure a successful conclusion and comprehensive review of this year and the 14th Five-Year Plan, while carefully preparing for the formulation of the 15th Five-Year Plan and the key tasks for next year. The research project on the 15th Five-Year Plan for the steel industry, organized by the China Iron and Steel Association, has already achieved preliminary results. In the coming phase, the project will be further refined based on feedback and suggestions from all relevant parties, clearly defining the direction and path toward fully building a modern, powerful steel nation by 2030 and contributing wisdom and strength to the continued advancement of new industrialization and Chinese-style modernization.

I. Operating Performance of the Steel Industry in the First Three Quarters

        Steel production declined year-on-year, and apparent consumption continued to fall. According to data from the National Bureau of Statistics, in the first three quarters, the country’s cumulative crude steel production reached 746 million tons, down 2.9% year-on-year. It is expected that crude steel production will continue to decline for the full year, thereby achieving the targeted adjustment goal for crude steel output. Pig iron production totaled 646 million tons, down 1.1% year-on-year; and steel product production reached 1.104 billion tons, up 5.4% year-on-year. In the first three quarters, domestic apparent consumption of crude steel—calculated on a crude steel basis—came to 649 million tons, down 5.7% year-on-year. It is projected that the country’s apparent consumption of crude steel for the full year will be lower than in 2024, marking the fifth consecutive year of decline. Overall, both steel production and consumption remain on a downward trend, with the decline in consumption outpacing the decline in production.

        Steel exports increased year-on-year, while imports declined year-on-year. According to data from the General Administration of Customs, in the first three quarters of this year, China’s cumulative steel exports totaled 87.96 million tons, up 9.2% year-on-year; the average export price was USD 697 per ton, down 9.5% year-on-year; and the cumulative export value reached USD 61.3 billion, down 1.2% year-on-year. Cumulative steel imports amounted to 4.53 million tons, down 12.6% year-on-year; the average import price was USD 1,692 per ton, up 1.1% year-on-year. The net export of crude steel equivalent totaled 96.76 million tons, up 21.0% year-on-year. Since the beginning of this year, China’s steel exports have shown a trend toward diversification of export destinations and a broader variety of products. Exports of hot-rolled narrow and wide strips, medium- and thick-wide strips, and cold-rolled narrow and wide strips—products that have been subject to frequent anti-dumping investigations—have declined significantly. Meanwhile, exports of steel billets have reached three times the level of the same period last year, though the average export price has fallen year-on-year. Since the elimination of additional tariffs in 2021, steel-billet exports have exhibited a consistent pattern of increasing volume but decreasing prices year after year.

        Steel prices fell year-on-year and remain persistently low. According to monitoring by the China Iron and Steel Association, in the first three quarters of the year, the CSPI (China Steel Price Index) averaged 93.67 points, down 9.64% year-on-year. Among these, the long-products index averaged 95.44 points, a year-on-year decrease of 10.24%; the sheet products index averaged 92.12 points, down 9.58% year-on-year. Since the beginning of this year, the CSPI has consistently remained below 100 points, with steel prices running at low levels. At the end of June, the index even fell to 89.51 points, reaching a new low since December 2016. In the first three quarters, the CRU International Steel Price Index averaged 189.7 points, down 6.2% year-on-year—a decline smaller than that of domestic prices.

        Revenue declined at a slower rate than costs, resulting in year-on-year growth in industry profitability. In the first three quarters, the cumulative operating revenue of key steel enterprises under statistical monitoring reached 4.56 trillion yuan, down 2.36% year-on-year; operating costs totaled 4.26 trillion yuan, a decrease of 3.88% year-on-year. The decline in revenue was 1.52 percentage points smaller than the decline in costs. Total profits amounted to 96 billion yuan, an increase of 1.9 times year-on-year, indicating a significant improvement in industry profitability compared to the same period last year. The sales profit margin stood at 2.10%, up 1.39 percentage points year-on-year. Profitability varied significantly among different types of enterprises: large steel groups demonstrated relatively stable operations and strong risk resistance, while small and medium-sized enterprises experienced greater fluctuations in their business performance in response to market changes.

        Energy consumption and emissions declined year-on-year, and environmental indicators continue to improve. In the first three quarters, the total energy consumption of key steel enterprises included in statistics decreased by 0.54% year-on-year, and the energy consumption per ton of steel—on a comparable basis—dropped by 0.6%. The volume of wastewater discharged declined by 5.88% year-on-year. Among the pollutants discharged into external waters, chemical oxygen demand, ammonia nitrogen, and suspended solids decreased by 9.22%, 15.42%, and 11.94% respectively, year-on-year. Emissions per ton of steel of sulfur dioxide, particulate matter, and nitrogen oxides fell by 12.64%, 0.79%, and 13.55% respectively, year-on-year. The utilization rates of solid waste and combustible gases both improved; specifically, the utilization rates of blast furnace slag and iron-containing dust sludge rose by 0.33 and 0.06 percentage points, respectively, while the utilization rates of blast furnace gas and coke oven gas each increased by 0.14 percentage points year-on-year.

II. The Current Situation Facing the Industry

From an international perspective, global economic growth lacks sufficient momentum, and geopolitical conflicts and trade frictions are occurring with increasing frequency. The extreme uncertainty surrounding trade policies is disrupting the global economic and trade order, thereby negatively impacting steel demand. Domestically, China’s economic development is continuously enhancing its “gold content” and “green content,” placing higher demands—such as advanced technology and environmental friendliness—on the structure of steel product varieties, while also providing vast room for and promising prospects of transformation and upgrading for the steel industry. However, we must also recognize that the steel industry still faces challenges including insufficient effective demand, weakening export expectations, and intensifying supply-demand contradictions. The foundation for stable operations and a rebound in profitability remains fragile, and the task of achieving high-quality development remains arduous and daunting.

        First, the contradiction between ample supply capacity and weakening demand intensity remains prominent. Since 2021, the steel industry has earnestly implemented the national policy on production control, resulting in a steady yet declining trend in crude steel output. This year, crude steel production continues to decline year-on-year. However, steel demand has fallen even more sharply during the same period, highlighting a pronounced mismatch between supply and demand at certain stages. Looking at recent industry performance, in September, apparent crude steel consumption fell by 7.6% month-on-month, with the month-on-month decline widening by 4.5 percentage points. In early October, as daily crude steel production began to rebound, steel inventories at key statistical enterprises rose by 8.2% month-on-month and by 7.8% year-on-year—reaching levels higher than those seen in recent years for the same period. Social steel inventories also climbed to their highest level in nearly four years for this time of year, intensifying pressure on supply-demand balance. Consequently, it has become even more critical to strengthen industry self-discipline, adhere strictly to production based on sales, and avoid turning cash into inventory.

        Second, the tightening global trade environment is increasing the pressure and risks on steel exports. The steel industry is an area of great concern for governments worldwide. As international trade protectionism rises, trade tensions involving Chinese steel products continue to escalate. In 2024, China faced 33 initial investigations under trade remedy measures targeting its steel products, and another 25 such cases have been initiated so far this year. Recently, the European Union announced that it would impose stringent restrictions on steel imports from three angles: quotas, tariffs, and traceability. Meanwhile, the United States announced it would impose additional tariffs of up to 100% on goods exported from China to the U.S. India has also launched an anti-dumping investigation into cold-rolled flat products made of stainless steel series 300 and 400 originating from China. Coupled with various technical and other non-tariff barriers, China’s steel exports are now facing multiple forms of trade barriers, significantly increasing export pressures and risks.

        Third, persistently low economic benefits are not conducive to promoting high-quality development of the industry. Since the second half of 2022, the steel industry’s sales profit margin has remained persistently below 1.8%, dropping as low as -2.04% at one point. In June of this year, it reached its highest level during this period at 2.82%, but by September had fallen again to 1.71%. Such a prolonged situation is insufficient to sustain the capital investments necessary for high-quality development. In recent years, steel enterprises have invested heavily in energy conservation and carbon reduction, with environmental protection costs typically accounting for more than 10% of total expenses. Moreover, they are facing additional financial pressures related to compliance with carbon market regulations and the development of low-carbon technologies. According to estimates, achieving the “dual carbon” goals by 2060 will require the steel industry to invest approximately 20 trillion yuan. At the same time, to accelerate high-quality development, enterprises need financial support for technological innovation and digital transformation, and they must rely on certain economic benefits as a safeguard.

In September, five departments including the Ministry of Industry and Information Technology jointly issued the “Work Plan for Stabilizing Growth in the Iron and Steel Industry (2025–2026),” which pointed out that “the imbalance between supply and demand is the primary contradiction affecting the quality and efficiency of industry development.” The plan sets forth the overall goal of achieving an average annual growth rate of around 4% in the value-added of the iron and steel industry, stabilizing and rebounding economic benefits, moving toward a more balanced supply-demand relationship in the market, further optimizing industrial structure, continuously enhancing effective supply capacity, and significantly improving the levels of green, low-carbon, and digital development. The key to ensuring stable operations and boosting efficiency in the iron and steel industry lies in achieving dynamic equilibrium between supply and demand. Given the weakening intensity of demand, maintaining this dynamic balance hinges on proactively adjusting production rhythms and enhancing the alignment between supply and demand. Currently, the foundation for a new dynamic equilibrium in the iron and steel market remains fragile. In particular, since entering the third quarter, affected by the deep adjustment in the real estate sector, the traditional “Golden September and Silver October” peak season has failed to materialize as expected, impacting enterprises’ decision-making. This is reflected in rising inventories—both at enterprises and in society—and a month-on-month decline in monthly profit levels for the iron and steel industry. Looking at historical data, the latter part of the fourth quarter typically enters a slow season for steel demand, putting increased pressure on the industry to achieve supply-demand balance. Especially this year, with the continued downturn in the real estate market and persistently negative growth rates in infrastructure investment, iron and steel enterprises must further exercise self-discipline in production control and inventory reduction during the fourth quarter, making every effort to minimize low-price, disorderly competition.

The Fourth Plenary Session of the 20th Central Committee of the Party pointed out that China’s economic foundation is stable, with numerous advantages, strong resilience, and great potential. The fundamental conditions and overarching trends supporting long-term healthy development remain unchanged. Moreover, the institutional advantages of socialism with Chinese characteristics, the advantages of an ultra-large-scale market, the strengths of a complete industrial system, and the abundant resources of talented professionals are becoming even more prominent. Moving forward, China will continue to focus on stabilizing employment, businesses, markets, and expectations, and will implement and enhance proactive and effective macroeconomic policies, thereby providing a favorable external environment and ample market space for the development of the steel industry. We must not only remain confident in our development but also strengthen our sense of responsibility and initiative. We must fully recognize the urgency and necessity of strengthening industry self-discipline and safeguarding market order, adhering to a production approach guided by the principle of “meeting user needs and achieving supply-demand balance.” We should make concerted efforts to enhance the capacity for effective steel supply, promote positive interaction between supply and demand, and jointly build a sound market environment and improve the quality and efficiency of business operations.

Third, the “14th Five-Year Plan” has achieved remarkable results in high-quality development.

During the 14th Five-Year Plan period, the iron and steel industry has remained guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, taking high-quality development as its main theme. Seizing rare opportunities and rising to various challenges, the industry has firmly implemented the development philosophy of “innovation, coordination, green development, openness, and shared benefits,” achieving groundbreaking progress and remarkable breakthroughs in high-end, intelligent, and green development.

        Industrial foundational capabilities have been further enhanced. During the 14th Five-Year Plan period, the iron and steel industry has firmly implemented the decisions and deployments of the Party Central Committee and the State Council, with a focus on energy conservation and carbon reduction. Adhering to market-oriented and rule-of-law principles, the industry has carried out crude steel production control, actively explored and promoted the establishment of new mechanisms for capacity governance, and achieved a shift from “capacity reduction” to “dual control over capacity and output.” This transformation has effectively facilitated structural optimization and upgrading while promoting high-quality development of the industry. Guided by the goal of enhancing industrial synergy, iron and steel enterprises have deepened joint restructuring efforts. For instance, Baowu Group reorganized Xinsteel; CITIC Special Steel partnered with Nangang Steel; Jianlong Group restructured Xining Special Steel; and Jingye Group successively acquired Lianyungang Xingxin Iron & Steel and Yingkou Plate. As a result, industrial layouts have been further optimized, and industry concentration has continued to rise. In 2024, the CR4 index for the iron and steel industry reached 26.9%, an increase of 4.6 percentage points compared to 2020; the CR10 index climbed to 42.0%, up 3.2 percentage points. The industry’s capacity to secure mineral resources has steadily improved, and key projects under the “Iron Resource Development Plan” have been vigorously advanced. In 2024, domestic production of iron concentrate reached 300 million tons, representing an 11.0% increase over 2020 levels. Overseas equity mining projects are accelerating development and construction, and progress has been made in establishing new models for ensuring iron resource supply. To expand new consumption scenarios for steel materials, the industry has launched the “Steel Material Application Expansion Plan,” focusing on “material upgrading and material substitution.” The application of steel structures has been promoted, and since 2022, the volume of steel structure processing has remained above 100 million tons for three consecutive years, steadily increasing its share of crude steel production. Cooperation between the steel and construction industries continues to deepen.

        The structure of steel product varieties has been further optimized and upgraded. Under the guidance of building a manufacturing powerhouse, the steel industry has taken on the mission of meeting the growing demand from the national economy for higher-quality and more diversified steel products. Keeping pace with the nation’s efforts to optimize its industrial structure, the industry has swiftly adjusted its product mix, driving the high-end development of basic steel products used in sectors such as automobiles, home appliances, infrastructure construction, and building construction. Performance characteristics—including strength, weather resistance, lightweight design, energy efficiency, and weldability—are continuously improving. From a broad perspective, the share of steel used in manufacturing has risen from 42% in 2020 to 50% in 2024 and is expected to exceed 50% by 2025. Meanwhile, the share of steel used in construction has declined from 58% in 2020 to 50% in 2024 and continues to fall. At the same time, the research and development and manufacturing of new products—especially high-end ones—have been accelerating. In 2024, the output of silicon steel, a representative high-end product, reached approximately 18 million tons, an increase of 48% over 2020. Among these, the proportion of grain-oriented silicon steel rose from 14% to 18%; the share of high-magnetic-flux grain-oriented silicon steel within grain-oriented silicon steel production climbed from 59% to 68%; and the proportion of high-grade non-grain-oriented silicon steel within non-grain-oriented silicon steel production increased from 21% to 31%. Moreover, products such as 2,200 MPa-class ultra-high-strength steel for bridge cables, “hand-tearable steel,” and “cicada-wing steel” have reached internationally leading levels. Additionally, domestically produced F-grade thick marine structural steel, high-strength wear-resistant steel, and high-strength pressure vessel steel have begun replacing imports. Furthermore, a series of products—including 316H stainless steel for fourth-generation nuclear power plants, 3.5Ni ultra-low-temperature steel, corrosion-resistant rails for high-speed railways, high-grade magnetic yoke steel, X80-grade low-temperature pipeline steel, third-generation ultra-large-capacity pipeline steel, high-temperature alloy turbine disks, nickel-based alloy welding materials for high-temperature gas-cooled reactors, and steels for high-speed train wheels and bogies—have made their global debut, providing critical steel support for major national projects and advanced equipment.

        The supporting and leading role of scientific and technological innovation has been further strengthened. The iron and steel industry has earnestly implemented the nation’s innovation-driven development strategy, continuously strengthening collaborative innovation capabilities across the industrial chain and steadily enhancing its level of scientific and technological self-reliance and strength. From 2020 to 2024, R&D expenditures of key statistical enterprises under the China Iron and Steel Association rose from 111.8 billion yuan to 156.5 billion yuan, representing a growth rate of 40%. The share of R&D expenditures in operating revenue increased from 2.17% to 2.72%. Technological innovation has driven continuous improvements in the technical and economic indicators of the iron and steel sector: the coke ratio among key statistical enterprises declined by 4.9%, fuel consumption per ton of steel decreased by 1%, blast furnace labor productivity rose by 15.7%, and converter labor productivity improved by 13.2%. China’s innovations and applications in low-carbon metallurgy have entered the world’s leading ranks. Commercial demonstration projects such as China Baowu’s hydrogen-rich carbon-recirculating blast furnace (HyCROF), Hebei Iron and Steel’s world-first “hydrogen-based shaft furnace—near-zero-carbon emission electric arc furnace” short-process project, the world’s first green continuous casting production line for hydrogen-metallurgy automotive sheets, and China Iron and Steel Research Institute’s world-first pure-hydrogen shaft furnace demonstration line, along with a series of cutting-edge low-carbon metallurgical technology demonstration projects—including thin-strip casting and rolling, and dry granulation of blast-furnace slag—are being successively implemented. These initiatives provide a “China Solution” for the global transition toward green and low-carbon steel production.

Smart manufacturing in the steel industry is shifting from “isolated explorations” to “systematic advancement” and from “demonstration projects” to “full-scale adoption.” Digital transformation has become an industry-wide consensus. Among the key statistical enterprises under the China Iron and Steel Association, 95% have integrated digital transformation strategies into their overall corporate development plans. The density of robot applications has reached 65 units per 10,000 employees, and 95% of these enterprises have already adopted industrial internet platforms, further solidifying the “digital and intelligent foundation” at production sites. To date, the steel industry has seen the emergence of numerous outstanding smart manufacturing scenarios, several national-level demonstration plants, and world-class intelligent factories. Baosteel Shares’ Baoshan Base, CITIC Pacific Xingcheng Special Steel, and Shougang Shares’ Cold Rolling Company have all been recognized as “Global Lighthouse Factories.”

        The capacity and level of green and low-carbon development have further improved. During the 14th Five-Year Plan period, the iron and steel industry invested over 310 billion yuan in an unprecedented ultra-low emission transformation project. As of October 16, 2025, a total of 215 iron and steel enterprises have either completed or partially completed their transformation and assessment monitoring. Among them, 163 enterprises—representing approximately 653 million tons of crude steel capacity—have fully achieved ultra-low emission standards throughout their entire production processes, while 52 enterprises—covering about 180 million tons of crude steel capacity—have partially completed their transformations. Currently, another 76 enterprises—accounting for roughly 98 million tons of capacity—are undergoing evaluation. Through the implementation of ultra-low emission transformations, China has established the world’s largest clean steel production system, significantly reducing pollutant emissions. Concentrations of particulate matter, sulfur dioxide, and nitrogen oxides have fallen by more than 50% on average compared to the end of the 13th Five-Year Plan period. This not only made an important contribution to winning the “Blue Sky Defense Battle,” but also spurred technological and managerial innovations, bringing “green steel” from vision to reality. To accelerate pollution reduction and carbon reduction efforts, the China Iron and Steel Association has taken the lead in promoting the Ultra-High Energy Efficiency Project. Since its launch in December 2022, the project has attracted a total of 143 enterprises and 750 million tons of steel capacity to participate in benchmarking initiatives. The association has released the T50 and T80 technology lists as well as capability lists, achieving iterative upgrades to both the standard-setting framework and the energy efficiency data governance system, making it a key driver for cost reduction and carbon reduction in the steel industry. Compared to 2022, from 2023 through the first half of 2025, the benchmarked enterprises have cumulatively saved 15.74 million tons of standard coal and reduced carbon emissions by 40.92 million tons. In the first half of 2025 alone, the energy consumption intensity of blast furnace and converter processes at these benchmarked enterprises declined by approximately 3.32% and 13.64%, respectively.

Focusing on the goal of low-carbon transformation, the steel industry is continuously improving its governance system, innovation system, and indicator framework. It has formulated and released the "Vision for Carbon Peak and Carbon Neutrality in the Steel Industry and a Roadmap for Low-Carbon Technologies," and is advancing the "Global Initiative to Support the Development of Cutting-Edge Common Low-Carbon Technologies," identifying eight key areas for such cutting-edge common low-carbon technologies. Currently, more than 50 cutting-edge low-carbon technology R&D projects involving at least 22 enterprises and research institutions across China are being carried out simultaneously, providing an effective technological reserve for the low-carbon transformation of the steel industry. The country’s first EPD platform for the industrial sector—the EPD platform covering the entire steel industry value chain—went live in May 2022. To date, it has cumulatively published 278 EPD (Environmental Product Declarations) reports and 16 PCR (Product Category Rules), making it one of the world’s most timely and comprehensive platforms in terms of sample size. Relying on this EPD platform covering the entire steel industry value chain, the steel industry continues to promote the establishment and improvement of LCA databases, methodologies, standard systems, and applications throughout the industrial chain. Meanwhile, based on nearly 330 million tons of crude steel carbon emission data generated domestically in China, the "Low-Carbon Emission Steel Standards" have been developed and released, along with 23 low-carbon emission steel products. In collaboration with downstream industries, the steel industry is also engaged in building carbon emission platforms and promoting mutual recognition efforts. Carbon emission data have already been adopted by the home appliance industry’s carbon footprint accounting standards, mutually recognized with data from China’s Industrial Carbon Emission Information Management System, and have reached an agreement with the China Automotive Center for mutual recognition of carbon emission accounting methods for automotive steel. Together, the industry chain is co-creating and sharing the achievements of green and low-carbon transformation.

IV. Key Areas of Focus in the Later Stage

The Fourth Plenary Session of the 20th Central Committee of the Party has identified promoting high-quality development as the central theme for economic and social development during the 15th Five-Year Plan period. Building on a precise understanding of the major trends shaping development over the next five years, the session has laid out strategic tasks, emphasizing the need to consolidate and enhance the global position and competitiveness of industries such as mining, steel, chemicals, light industry, textiles, machinery, shipbuilding, and construction. This provides crucial guidance for us to continue firmly focusing on high-quality development as our top priority and comprehensively advancing the upgrading, efficiency enhancement, and transformation of the steel industry. In the next phase, the steel industry will, in accordance with the decisions and deployments of the Party Central Committee and the State Council, develop a comprehensive master plan for the 15th Five-Year Plan period, ensure effective implementation of the “Stabilizing Growth Plan,” and continue its work around the industry’s “1231” development goals and the “232” operational framework. We will adapt to changing demand patterns, adjust production rhythms, promote supply-demand balance, and continuously drive sustained improvements in economic performance, strengthen endogenous growth momentum, and steadily address potential risks and hidden dangers. This will lay a solid foundation and build strong confidence for successfully concluding the 14th Five-Year Plan and laying a robust groundwork for the 15th Five-Year Plan.

        First, implement the “Stabilizing Growth Plan” to promote stable industry operations and optimize and upgrade its structure. The “Stabilizing Growth Plan” focuses on strengthening governance, optimizing supply, promoting transformation, expanding consumption, and enhancing cooperation. It proposes 10 specific measures across five key areas: reinforcing industry management, bolstering technological innovation, expanding effective investment, tapping into market demand, and deepening open cooperation. These measures provide clear guidance for assessing industry trends, improving business performance, and fostering stable operations. We will thoroughly study the contents of the plan, mobilize industry resources to effectively implement the relevant measures, and place quality and efficiency at the center of our efforts. We will enhance the alignment between steel supply and demand, rigorously enforce policies prohibiting new capacity additions and reducing existing production, and intensify technological innovation by focusing on the development of high-end, sophisticated, and specialized products. We will also expand the applications of steel materials, using new demand to drive new supply and leveraging new supply to create new demand. Moreover, we will accelerate the digital and green transformation, further strengthen the resilience and security of industrial and supply chains, and achieve both qualitative improvements in the steel industry’s performance and reasonable quantitative growth.

        Second, strengthen industry self-discipline and consciously uphold the normal order of market prices. Recently, the National Development and Reform Commission and the State Administration for Market Regulation issued the "Announcement on Governing Disorderly Price Competition and Maintaining a Sound Market Pricing Order," which calls upon industry associations to strictly comply with the provisions of the Price Law and the Anti-Monopoly Law, promote self-discipline within the industry, and guide operators to jointly uphold a fair competitive order. The steel industry has long maintained an excellent tradition of benchmarking and tapping into potential—this has become a distinctive management approach unique to the industry and an important tool for addressing risks and challenges while continuously enhancing international competitiveness. We encourage enterprises to strengthen self-discipline and actively put into practice the guiding principles of "honoring credit, emphasizing self-discipline, and abiding by rules," thereby jointly fostering a market environment characterized by fair and orderly competition. In the first three quarters of this year, the steel industry’s operating performance improved significantly year-on-year, laying a solid foundation for stable operations and enhanced profitability throughout the year. In the fourth quarter, as long as the entire industry works together in solidarity to strengthen self-discipline and adheres to the business principles of "producing based on sales, adjusting production according to efficiency, and determining sales based on available inventory," we anticipate that this year will likely achieve the best economic performance since 2022.

        Third, strengthen investigation and research to offer advice and suggestions for the “15th Five-Year” plan for the iron and steel industry. Against the backdrop of a continuously evolving global economic landscape and ongoing optimization and adjustment of China’s domestic economic structure, formulating and effectively implementing the 15th Five-Year Plan is of great significance for the steel industry as it enters a critical phase of profound structural adjustment and strives to achieve high-quality development in the coming period. Since last year, the China Iron and Steel Association has been organizing and conducting research on the “15th Five-Year Plan” for the steel industry. Adhering to an international perspective and systems thinking, and guided by both goals and problem-solving approaches, the Association has played a bridging and linking role, conducting in-depth field investigations and studies. It has clearly defined the goal and tasks for 2030: to fully build a modern steel power with global influence, strong industrial independence, and significant contributions to economic development. The Association has also put forward the overall requirements, key tasks, major projects, and policy measures for the development of the steel industry during the 15th Five-Year Plan period, providing valuable references and support for the steel sector to continue promoting transformation and upgrading, achieving high-quality development, and accelerating the construction of a modern industrial system.

        Fourth, we will anchor ourselves to the industry’s development goals and continue to promote the orderly implementation of key tasks. Based on the industry’s current stage of development and the challenges it faces, the China Iron and Steel Association has proposed a “1231” development goal and a “232” work implementation framework. At the 11th enlarged meeting of the 6th Council of the China Iron and Steel Association, held at the end of July, emphasis was once again placed on six key areas for promoting high-quality industry development: enhancing the quality and efficiency of development, strengthening investment in scientific and technological innovation, accelerating the green and low-carbon transformation, fostering stable and orderly exports, expanding the scope of steel applications, and deepening international cooperation and exchanges. The iron and steel industry will continue to advance and implement these key tasks, focusing on “strengthening self-discipline and combating internal competition, adjusting structures and optimizing layouts, boosting profitability while guarding against risks, and addressing shortcomings while reinforcing strengths.” By doing so, the industry aims to ensure stable operations, sustained growth in profitability, and high-quality development—thus providing certainty in the face of rapid and unpredictable changes in the external environment and making significant contributions to the advancement of new industrialization and the construction of Chinese-style modernization.

Reprinted from: China Iron and Steel Association

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