Such steps will help the industry to achieve qualitative growth

China’s steel industry needs to step up efforts to introduce innovations and other practices to reduce costs and improve efficiency, China Daily reports.

This will help the sector to cope with current challenges and achieve quality growth, experts say. They expressed this opinion at a recent forum on metallurgical technology and industry development organized by several Chinese specialized organizations.

«Amid declining demand in the domestic and foreign markets, the industry is gradually entering a period of deep restructuring to control production and improve quality,» said Fan Tiejun, President of the China Metallurgical Industry Planning and Research Institute.

According to him, the country’s steel industry needs to focus on scientific and technological innovations and get rid of the extensive growth mode.

Chen Xiangyang, Chairman of the Shandong Steel Association, said that China has complete industrial chains in the steel sector. He believes that the industry has accumulated many advanced technologies and experience in green and low-carbon development. Therefore, it should rely on innovation to modernize the structure, improve product quality, deepen reforms and strengthen growth momentum.

China’s Hubei Province has published a plan for the transformation and modernization of the steel industry for 2023-2025. It will determine the development strategies of the region’s industry for this period. The province expects the steel sector to generate annual revenue of more than 300 billion yuan ($41 billion) in 2025. The main means of achieving this goal are the integration of enterprises, optimization of the product structure and transition to low carbon emissions.

As GMK Center reported earlier, China’s steelmakers are making progress in decarbonizing the industry, with the country’s steel sector aiming to reach peak carbon emissions by 2030. Chinese companies are currently making some progress in developing low-carbon steel production technologies – Baowu, Beijing Jianlong Heavy Industry Group, HBIS Group, etc. have launched relevant projects.