The 2024 China Stainless Steel Industry Annual Conference Focuses on Four Key Points of Industrial Development

The 2024 China Stainless Steel Industry Annual Conference, with the theme of "expanding downstream demand, developing new quality productivity, and promoting green and high-quality development of the stainless steel industry", was held in Beihai City, Guangxi from October 24 to 25. In order to focus on challenges and difficulties and jointly maintain a stable and orderly development environment for the industry, the participants focused on the theme of the conference and discussed in depth the four key points of industry development: "green and low-carbon, market development, technological innovation, and industry self-discipline".

Face the challenges of "carbon economy" and accelerate the pace of green and low-carbon transformation and development of the entire industry

The steel industry, including stainless steel, as a key carbon emission industry, will face serious "carbon economy" challenges in the future. Green and low-carbon transformation is an inevitable trend in the development of the steel industry. How to maintain competitiveness and market share while complying with new environmental regulations is a difficult problem that the stainless steel industry urgently needs to solve.

Solving the deep-seated contradictions in the steel industry and promoting high-quality development of the steel industry requires new concepts, new thinking and new initiatives. Xia Nong, vice president of the China Iron and Steel Association, said that the stainless steel industry should accelerate the construction of an ecological circle for green, low-carbon and high-quality development of the stainless steel industry chain, deepen cooperation and exchanges between upstream and downstream enterprises in the industry chain, build a coordinated development of the industrial ecological system, and jointly respond to market challenges and competitive pressures.

It is understood that the China Iron and Steel Association is taking the lead in formulating China's low-carbon emission steel standards, and actively participating in the formulation and revision of relevant international standards, and promoting the connection and mutual recognition of rules such as carbon footprint with major trading partners.

Against the backdrop of challenges facing the industry as a whole, the participating enterprise representatives and industry experts unanimously agreed that enterprises must face the challenges of the "carbon economy", adhere to the direction of green and low-carbon development, continue to increase environmental protection investment, and increase energy-saving and carbon reduction transformation; actively develop and promote the application of advanced green and low-carbon process technologies, and accelerate the green and low-carbon production process throughout the entire process.

Shang Guanqin, director of the Green Department of the Green and Intelligent Center of the Steel Research and Technology Group Co., Ltd., suggested that enterprises actively participate in the construction of the carbon trading market, respond to challenges from carbon pricing, carbon tariffs, and supply chain decarbonization, strengthen the equipment of carbon emission measuring instruments, the research of relevant calculation methodologies (international integration), and the construction of enterprise carbon emission management systems. At the same time, it is necessary to improve the "dual carbon" business capability of the enterprise by means of digital low carbon pipe control.

Focus on equipment, construction, and public transportation, and actively explore downstream markets

Relevant statistics show that since 2020, the apparent consumption of crude steel has declined for three consecutive years. Under the current economic situation of shrinking demand, stainless steel, as a key subdivision of the steel industry, has shown a certain resilience in production and consumption. At this conference, the industry maintained confidence in the diversification and universalization of stainless steel application areas.

According to statistics from the Stainless Steel Branch of the China Iron and Steel Association, from January to September this year, the national stainless steel crude steel output was 28.63 million tons, a year-on-year increase of 3.5%; the equivalent apparent consumption of crude steel was 23.7 million tons, a year-on-year increase of 1.7%, and both production and demand continued to grow. It is estimated that China's crude stainless steel output will remain between 38 million and 38.5 million tons in 2024, with an increase of 3.5-5%.

During the conference, all participants reached a consensus on "deepening cooperation and exchanges between upstream and downstream enterprises in the industrial chain, building an industrial ecological system for coordinated development, and jointly responding to market challenges and competitive pressures."

"Enterprises should build on their own advantages, actively adapt to market changes, and dare to explore the 'no man's land'", actively serve the transformation and upgrading of downstream industries, grasp the rhythm of new product development and product structure upgrade iteration, and continuously consolidate and enhance product market competitiveness. "Xia Nong proposed that we should create and expand consumer demand, promote the promotion and application of stainless steel in key areas; optimize and improve the stainless steel production process, improve production efficiency, product quality, corrosion resistance, and mechanical properties, and meet the market's increasing demand for high-performance and environmentally friendly stainless steel products.

At the conference, Chen Qingke, the president of Qingtuo Group, proposed in the "2024 Annual Work Report of China's Stainless Steel Industry" that on the one hand, industry enterprises should seize the opportunity of equipment renewal in key industrial industries and promote the rapid development and wide application of stainless steel and related materials in the equipment field; on the other hand, they should make good use of the cost advantages of stainless steel in processing, corrosion resistance, long life, fire resistance and earthquake resistance, and the whole life cycle, vigorously promote the application of stainless steel in the construction field, and actively adapt to the public transportation industry's demand for high-quality and lightweight new materials.

Accelerate the pace of scientific and technological innovation and further expand the application space of products

Promoting the high-quality development of the stainless steel industry is a systematic project that requires overall planning, scientific and technological leadership, demonstration and policy support. Xia Nong said that the industry should enhance its innovation capabilities, increase investment in scientific research, strengthen basic research and applied research, break through key core technologies, and improve the position of my country's stainless steel industry in the economic and social industrial chain and value chain.

In recent years, leading enterprises in the stainless steel industry have continued to accelerate the pace of scientific and technological innovation. The high-strength and corrosion-resistant stainless steel composite material TE4003C5 developed by TISCO has been successfully launched for the first time and is used to manufacture 70-ton new composite coal-transporting open wagons; JJIULI Hi-Tech Metals' high-end product revenue accounts for 22%, consolidating and expanding the company's leading position in the market in high-end manufacturing fields such as oil and gas, nuclear power, and aviation; Tsingshan duplex stainless steel QD2001 material has become the preferred stainless steel material for Sanya Bougainvillea Park with its high strength, good fatigue resistance and excellent corrosion resistance; Qingtuo 2205 duplex stainless steel medium and thick plates are used for chemical tankers for the first time; Guangxi Beigang New Materials Co., Ltd. has successfully developed a series of high-green-content energy-saving new products such as high-antimagnetic stainless steel GH1201, strap steel, and button steel.

"The development of intelligent manufacturing has become a major measure, important path and main tool to enable the high-quality development of the industry. "Chen Qingke suggested that industry enterprises should accelerate digital transformation and intelligent upgrading, actively plan and accelerate the implementation of a number of digital intelligence projects, promote the integrated development of the stainless steel industry and "Internet +", enhance the intelligent level of enterprise research and development, production and services, and continuously improve lean manufacturing and intelligent decision-making.

Pan Liaoting, rotating chairman of the Stainless Steel Branch of the China Iron and Steel Association, deputy general manager of Guangxi Beibu Gulf Port Group, and chairman of Guangxi Beigang New Materials Co., Ltd., said that from industry to government, from China to the world, innovation should be the basic concept and starting point, including both technological innovation and management innovation of enterprises, as well as government policy support, to jointly promote the overall transformation and high-quality development of the entire industrial chain and ecosystem.

Strengthen industry self-discipline and maintain the dynamic balance of supply and demand in the industry

According to statistics from the Stainless Steel Branch of the China Iron and Steel Association, China has currently formed a stainless steel smelting capacity of 50 million tons, and there are nearly 10 million tons of new capacity under construction. Experts at the meeting believe that the key to the smooth operation of the stainless steel industry lies in achieving a dynamic balance between supply and demand.

Faced with severe internal and external situations, Xia Nong suggested that the industry should strengthen self-discipline, follow the "three determinations and three don'ts" business principles of "determine production based on sales, don't turn cash into inventory; determine production based on efficiency, don't generate operational "blood loss"; determine sales based on cash, don't turn cash into accounts receivable", maintain the dynamic balance of supply and demand in the industry, and strive to improve the industry's efficiency.

"Industry enterprises should build on their respective advantages, seek progress in stability, and develop in a coordinated and differentiated manner. It is necessary to be honest and self-disciplined, regulate and orderly development, and avoid homogenized competition." Pan Yiting said that it is hoped that enterprises can break the inertia of thinking, coordinate the deployment of key work tasks, clarify the overall development goals, further improve the corporate governance system, innovation system and indicator system, and always maintain an active and enterprising attitude in the transformation and development.

"All member enterprises should adhere to the concept of openness, inclusiveness, collaboration and cooperation, strengthen communication and exchanges with each other, deepen benchmarking learning, learn from each other, and achieve common progress. "Chen Qingke said that in the future, the Stainless Steel Branch will further strengthen its own construction, give full play to its organizational and professional advantages, play a bridging role, and build a platform for communication, exchange and cooperation between industry, academia, research and application; guide enterprises to strictly exercise self-discipline and operate with integrity, actively adapt to changes in market demand, effectively identify and prevent operating risks, and strive to maintain a dynamic balance between supply and demand, so as to provide strong support for promoting the transformation and upgrading of the stainless steel industry and achieving high-quality development.