Jiang Wei,
Deputy Secretary of the Party Committee of China Iron and Steel
Association (CISA), delivered a keynote speech titled Way to
High-Quality Development of China Steel Industry in 14th Five-Year Plan
Period at
XVII Steel Development Strategy Conference in Shanghai
on 10 April 2021.
Highlight
1. The
Chinese’s steel market would be well performed in a short run, that is,
with robust demand, high production, high cost, good price, and healthy
profitability.
2. The
outlook for steel industry should base on long-term data analysis. The
crude steel consumption per capita reached 700kg in China last year, but
the country’s
per capita steel reservoir is only about 8 tons
which is about one-third of developed countries such as the United
States and Japan. China’s urbanization rate is 20 percent points lower
than the developed countries.
The data above shows (a) steel demand will return to normal in China,
and it is an inevitable trend for the growth rate to decline amid
stability; (b) China steel industry sees a lot of growth potential,
maintaining a certain scale of demand for a long time which is in line
with reality.
It is more advisable to focus on the value generated by enhancing
company’s competitiveness from growing labor efficiency than to get
short-term benefits by expanding production capacity. Meanwhile, the
existing production capacity can meet the current growth in demand.
3. Under the “3060 Target” (peak carbon dioxide emissions by 2030 and
achieve carbon neutrality by 2060), China would inspect production
capacity, adjust import and export policy, increase steel products
import (especially for products with iron content like billet and steel
scrap), reduce the export of primary low value-added steel products.
The current production cut is practicable, relieving the pressure of
huge investment in steel industry for “3060 Target” and maintaining the
industry's competitiveness as well as sustainable and healthy
development.
4. Margin on steel products sales would return to the industry average
level, due largely to the huge investment for “3060 Target” and
constraints of supply and environmental protection.
5. China steel industry would meet the peak carbon dioxide emissions by
2030, and strive to accomplish it during the 14th Five-Year Plan Period
(2021-2025).
6. China to
reach 60% transformation of ultra-low emission in steel mills of key
steelmaking areas by late 2020; to achieve full transformation in steel
mills of key steelmaking areas and 80% transformation countrywide by
late 2025.
There is a
total of 620 million tonnes of crude steel from 229 companies in China
being or been completed the transformation of ultra-low emission in the
end of 2020.
Related Link:
Profile of
XVII Steel Development Strategy Conference |