On October 13, China Iron and Steel Association (CISA) officials, including vice president Jiang Wei, vice chairmen Luo Tiejun and Liu Andong, deputy secretaries-general Feng Chao and Wang Bin, along with relevant officials from the general affairs department, the organization and personnel department, and the ore and raw materials department, visited Jiangsu Province-based Chinese steelmaker Shagang Group and held a working meeting.
Shen Bin, the president of Shagang Group, said that the steel industry is still in a period of deep adjustment, and in the first three quarters of this year, steelmakers' operating data generally fell short of expectations. Facing an all-round stress test, steel enterprises have remained committed to looking inward and honing their internal strengths, advancing policy implementation, product mix adjustment, and digital and green low-carbon transformation in line with local conditions.
Shen Bin stated that deep structural problems still persist in the steel industry, including an imbalance between supply and demand, an irrational supply structure, and an inefficient market exit mechanism. As technological diffusion accelerates, any first-mover advantage in a given niche can be quickly eroded, and, once supply is concentrated and released, homogenized competition will only intensify. Total output scale is the foundation and prerequisite for industry development. If the total output is excessive, efforts in green and low-carbon development, digitalization and product mix optimization will struggle to deliver their full effect. Shen Bin said steel enterprises in China should draw on the experience of relevant industries and study the establishment of a systematic structural optimization mechanism to promote a dynamic balance between supply and demand at a higher level. He added that it is hoped that the CISA will, on the basis of in-depth research, give full play to its role as a bridge and facilitator, and help the industry move out of inefficient competition as soon as possible.
