The two will talk about the strategy of breaking the situation in the steel industry

The whole industry should conscientiously practice the business principle of "three determinations and three don'ts", and at the same time, cooperate with the national competent authorities to promote the implementation of the new mechanism of capacity governance as soon as possible, adopt a market-oriented and law-based approach to close the entrance of production capacity, smooth the exit channels, and solve the balance between the total supply and total demand of steel.
　　To establish a new mechanism for capacity management in the steel industry, the top priority is to strengthen industry self-discipline, strictly control the new Steel Production capacity, and accelerate the elimination of backward production capacity.
　　 Historically, it took about 10 years for steel production in developed countries to be basically stable for the first time, and the output fell by 10%~40%. According to this law, China's steel output will peak in 2020 (1.065 billion tons), and it is expected to be stable after 2030, and the reduction is expected to exceed 150 million tons.
　　 Mergers and acquisitions will help eliminate outdated equipment, reduce enterprise costs, improve production efficiency, and form a large-scale steel enterprise with international competitiveness.
It is recommended to speed up the subdivision of tariff codes for high-end steel export products, restore export tax rebates for high-end Steel Products, support the export of high-end products by enterprises, enhance China's influence in the global industrial chain, supply chain and innovation chain, and consolidate and expand China's share in the global supply chain.
In 2024, the steel industry will break the waves in the complex and changeable market wave, although the new situation, new changes, and new challenges will continue, and the characteristics of the stage of "reduction development and stock optimization" will become increasingly obvious, but it will still achieve high-quality development in an orderly manner, accelerate the cultivation of new quality productivity, and show the resilience of the industry's steady growth.
　　On the afternoon of January 23, 2025, General Secretary Xi Jinping pointed out that the steel industry is an important basic industry of our country, and the real economy is the foundation of the national economy. We must continue to work hard to make up for our shortcomings, optimize our structure, and continue to make more contributions to Chinese-style modernization. This has greatly encouraged the confidence and morale of the whole steel industry to go through the cycle and enter a new stage of development. 2025 is the final year of the "14th Five-Year Plan" and the year of the "15th Five-Year Plan".

China's iron and steel has always been developed in the baptism of wind and rain, and has grown stronger in the test.
　　Facing the future, the first is to strengthen self-discipline and improve the quality and efficiency of industry operation. The whole industry should conscientiously practice the business principle of "three determinations and three don'ts", and at the same time cooperate with the national competent authorities to promote the implementation of the new mechanism of capacity governance as soon as possible, adopt a market-oriented and law-based approach to close the entrance of production capacity, smooth the exit channel, and solve the balance between the total supply and total demand of steel. We will continue to do a good job in the regulation and grading of crude steel output, and do a good job in the mapping of steel smelting equipment, strengthen data governance, revise the capacity replacement method and the standard conditions of the steel industry.
　　Second, we will continue to promote green and low-carbon transformation. The steel industry should promote ultra-low emission transformation with high standards and continue to improve the list of best practices for ultra-low emissions. We will continue to carry out the three-year action of energy efficiency benchmarking for extreme energy efficiency projects in steel, and continue to improve the construction of EPD (Environmental Product Declaration) platform for the entire steel industry chain. Carry out research on carbon databases, carbon footprint methodologies, etc., follow up the research on the relevant policies and standards for the inclusion of the steel industry in the carbon market, and do a good job in low-carbon technology reserves.
　　The third is to accelerate the promotion of technological breakthroughs. Promote the construction of the National Iron and Steel Low-Carbon Technology Innovation Center, and continue to track and promote the collaborative research and development of key common technologies such as blast furnace gas fine desulfurization, hot-rolled steel sheet piles, photovoltaic galvanized aluminum-magnesium steel frames, and steel slag resource utilization. Promote the collaborative innovation of the industrial chain and promote the research and development and application of related new materials. Focus on the development of standards in the fields of key steel materials, green and low-carbon, and intelligent manufacturing. Implement the standard internationalization leap project, and contribute China's technical solutions to the innovation and development of the world's iron and steel industry.

Fourth, digital intelligence empowers the construction of a modern industrial system. Focusing on the "Three-Year Action Plan for the Digital Transformation of the Iron and Steel Industry (2024-2026)", we will promote the implementation of the "Guidelines for the Construction of Digital Transformation Projects in the Iron and Steel Industry" and promote the digital transformation of the steel industry. Initiate benchmarking and cultivation of typical scenarios of digital transformation, and promote the digital transformation of the industry from point to point. Establish an industrial software standard system for the steel industry.
　　Fifth, maintain the stability of the industrial chain and supply chain. Steadily implement the "Iron Resources Development Plan", improve the policy environment for the development of the scrap steel industry, and build scrap recycling and processing bases at home and abroad. Promote coking coal supply and price stability. We will continue to promote the expansion plan of steel applications, establish and deepen upstream and downstream cooperation mechanisms between steel and key areas such as construction, shipbuilding, transportation, agricultural machinery, heavy equipment, and home appliances, and vigorously explore new markets and new uses for steel products.
The iron and steel industry can actively promote the effective implementation of capacity management by multiple means.
　　The first is to improve industry data management. First of all, it is necessary to improve the statistical indicator accounting system that supports high-quality development, strengthen the integration and coverage of key indicators of steel capacity governance, and improve the support quality of decision-making data. Secondly, by carrying out the basic information mapping of equipment of national iron and steel smelting enterprises, we will gradually consolidate the data foundation of the industry and promote the accurate implementation of capacity governance.
　　The second is to eliminate backward and inefficient production capacity. Learning from the experience of the United States, Japan, European countries and other countries to reduce capacity, the elimination of equipment with backward technology, serious environmental pollution and low production efficiency is a consensus measure to deal with overcapacity. It is necessary to introduce a series of policies to promote the replacement of old equipment, encourage and guide enterprises to invest in efficient and green production equipment, and promote industrial transformation and upgrading.
　　The third is to encourage industry mergers and acquisitions. M&A and reorganization will help eliminate outdated equipment, reduce enterprise costs, improve production efficiency, and form a large-scale steel enterprise with international competitiveness.
　　Fourth, promote the international development and innovation and upgrading of the steel industry. Under the current situation, China's steel enterprises should actively look for overseas layout opportunities and reasonably transfer steel production capacity; Give full play to the role of common technology innovation platforms such as the National Iron and Steel Low-carbon Technology Innovation Center to promote industrial upgrading and innovation.