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2025-05-06
China Iron and Steel Association: Recognize the situation, rise to the challenge, and promote the stable operation of the industry
On April 29, the China Iron and Steel Industry Association held a symposium on the economic operation of some steel enterprises in the first quarter in Beijing. Tang Zujun, Standing Committee Member and Vice President of the China Iron and Steel Association, attended the meeting and delivered a summary speech. Chen Yuqian, Vice Secretary-General and Director of the Industry Operation Department of the Association, presided over the meeting and introduced the industry's operation in the first quarter. Shi Hongwei, Vice Secretary-General and Director of the Market Research Department, Feng Chao, Vice Secretary-General and Director of the Science and Technology and Environmental Protection Department, Zhao Jinkui, Vice Secretary-General, Diao Li, Director of the Information and Statistics Department, and Wang Bin, Director of the Planning and Development Department, attended the meeting and responded to relevant issues of concern to the participating enterprises.
At the meeting, representatives from 17 key steel enterprises, including China Baowu and Ansteel Group, exchanged information on their production and operation in the first quarter, introduced the implementation of the "three certainties and three prohibitions" business principles, analyzed and discussed the problems currently facing the enterprises, shared the measures taken to cope with the current industry development situation, and analyzed and judged the future industry situation, and put forward relevant opinions and suggestions.
The meeting believes that in the first quarter of this year, steel enterprises overcame the complex and severe challenges of the external environment, actively practiced self-discipline and production control, and their operating efficiency generally improved significantly compared with the same period last year, with the vast majority of enterprises achieving a "good start." However, in March, some enterprises increased their production capacity when the business situation improved, putting some pressure on the industry's operation in the following period.
Regarding the future market, the participating enterprises believe that under the disturbance of factors such as the tariff war launched by the Trump administration in the United States, global trade faces considerable uncertainty. Coupled with the increase in steel trade remedy investigations, China's steel exports, especially indirect exports, face significant challenges, and the domestic supply-demand contradiction may further intensify. At the same time, it is suggested that the state and local governments should implement crude steel production control policies as soon as possible to promote supply-demand balance, strengthen industry self-discipline and coordination, and actively implement the "Opinions on Improving the Price Governance Mechanism" (hereinafter referred to as the "Opinions") issued by the General Office of the CPC Central Committee and the General Office of the State Council, and resist "involutionary" vicious competition.
Tang Zujun analyzed the current industry development situation in his summary speech. He pointed out that the industry's operating situation in the first quarter was good, and the economic efficiency improved significantly year-on-year. This improvement is the result of the joint efforts of the industry's self-discipline and production control, and there should be no relaxation. The road to industry development will still be difficult, and the steel industry still faces severe challenges, which may be unprecedented. We must objectively and calmly judge market changes and jointly maintain market stability.
Tang Zujun pointed out that from the external situation, the United States and European countries regard the steel industry as a core area for maintaining economic sovereignty and national security, and the importance attached to the steel industry is constantly increasing. Tariff wars and trade wars will affect changes in the global steel industry pattern. At the same time, the two protagonists of the great changes unseen in a century—the game between China and the United States—is long-term, persistent, and comprehensive, with a complex and uncertain situation, and the impact may gradually escalate and expand. Steel enterprises must strengthen their judgment of market changes and act accordingly.
From the internal situation, China is in the process of transforming its old and new growth drivers, and domestic downstream steel demand may still decline slightly this year. Although the overall operation of steel enterprises has improved significantly in the first quarter of this year, this is based on the low base of last year. Currently, the overall industry efficiency is still at a relatively low level in recent years, and the industry's sales profit margin is still far lower than the average industrial level. Therefore, steel enterprises still need to grasp the production rhythm as a whole, implement the production restriction policy, and avoid the worsening of the supply-demand contradiction.
For the next stage of work, Tang Zujun believes that it is necessary to adhere to stabilizing prices, reducing costs, increasing efficiency, and promoting transformation, and to solidly promote high-quality development of the industry. The high-quality development of the steel industry should not only be reflected in high standards, high technology, high quality, and high efficiency, but also in high efficiency. Without efficiency, transformation and upgrading will not be supported, and the industry will not have competitiveness or a future.
First, stable prices are a key factor in stable operation. He revealed that the Association will actively implement the "Opinions" this year, break the "involutionary" vicious competition, and take stable prices as a key task. It is suggested that steel enterprises establish a leading group for price governance mechanism with the main person in charge as the group leader, and take the improvement of the price governance mechanism as a core measure to respond to the current challenges, improve economic efficiency, and promote high-quality development of the industry. Price governance should address both the symptoms and the root causes, and actively study and promote the establishment of a new mechanism for capacity governance to fundamentally change the situation of supply-demand imbalance.
Reducing costs is the foundation of stable operation. He introduced that through the recent survey of the steel industry's costs by the Association, it was found that there is still potential for cost reduction in the industry. Therefore, in the face of steel prices declining and profit margins being compressed, steel enterprises should continue to adhere to the fine tradition of benchmarking and tapping potential, look inward, improve their basic skills, and promote the refinement and systematization of cost control.
Increasing efficiency is the core of stable operation. Currently, the steel industry is in a period of deep adjustment, and steel enterprises should fully recognize the long-term and arduous nature of the industry's adjustment, continue to unswervingly implement the "three certainties and three prohibitions" business principles, and truly improve efficiency and increase the ability to resist risks during the industry's downturn.
Finally, promoting transformation is the guarantee of stable operation. He pointed out that high-end, intelligent, and green transformation is the only way for high-quality development of the industry. The steel industry system is huge, with large market space and potential. Currently, significant progress has been made on the road of transformation, and some fields are at the forefront of the world. We should continue to unswervingly move towards high-end, intelligent, and green development.
Tang Zujun finally emphasized that steel materials are irreplaceable, the steel industry is indispensable, development achievements are indelible, problems and challenges cannot be ignored, transformation and upgrading cannot be shaken, and development prospects are unlimited. Steel enterprises should be full of confidence, meet challenges head-on, accelerate transformation and upgrading, and achieve high-quality development.
2025-05-19
2025-05-12

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