“The iron and steel industry is a mature basic industry. I hope you can set up industry ideal, love the iron and steel industry, and make contributions to the development of the iron and steel industry together!” On September 22, Zhang Zhixiang, Chairman and President of Jianlong Group, was invited to participate in the China Iron and Steel Association Second Youth Cadre Training Class (hereinafter referred to as “the Second Training Class”), and looked forward to the “future of the iron and steel industry” together with young reserve cadres, future entrepreneurs and senior managers from member enterprises of the Association, and reserve cadres of the Association system.
Zhang Zhixiang pointed out in the report that steel is the backbone of modern industrial civilization and is the most cost-effective metal material in the past, present and even in the future for a long time.
In the long run, both industrial steel and building steel have a solid demand foundation.
In terms of industrial steel, China’s industrial added value (US $6.99 trillion) accounted for nearly 30% of the global industrial added value in 2021; From the perspective of port throughput, China’s port cargo throughput was 7.9 billion tons, accounting for 77% among the top 20 ports in the world in 2021. It is roughly estimated that the export weight of China’s industrial products may account for more than 50% of the world’s total. In addition, China’s high-end manufacturing industry is still developing rapidly. For example, this year China may surpass Germany as the world’s second largest auto exporter.
In terms of building steel, China’s urbanization rate was 64.7% in 2021, while the current urbanization rate in mainstream developed countries is 80%. This shows that China’s urbanization will still go through a long process.
At the same time, China’s iron and steel industry has basically achieved the overall balance of supply and demand by cutting production capacity and cracking down on strip steel in the past few years, and the supply and demand relationship will remain stable under the policy requirements of “prohibiting new production capacity and capacity replacement”.
Of course, China’s iron and steel industry also faces many pain points, including insufficient resource guarantee, high dependence on foreign raw materials, and a “bottle-neck” state; low industrial concentration; as well as the multiple challenges such as reducing pollution and carbon under the “double carbon ” goal.
Speaking of the development direction of steel in the future, Zhang Zhixiang said that the competition in the steel industry in the future is no longer the competition of a single enterprise, but the platform competition based on digitalization. Under the goal of “double carbon”, green and low-carbon development has become the inevitable trend of the development of the steel industry in the future. At the same time, with the maturity of the industrial chain of China’s iron and steel industry, both the design, process technology, equipment level and scientific research ability have reached the forefront of the world. China’s iron and steel industry has an absolute advantage in going global. For example, in the past few years, several cases, such as Serbian Steel Plant of HBIS, Eastern Steel Sdn Bhd, and Aoyama Steel of Indonesia, have been very successful.
Based on the above judgment, Jianlong Group is striving to promote the transformation to an operational, digital and intelligent, innovative and better enterprise, and strive to achieve the three strategic goals of “building two 50 million ton steel scale platforms (holding capacity of 50 million tons+shareholding capacity of 50 million tons), building a highly interconnected digital platform for interested parties based on the concept of Industry 4.0, and building a comprehensive service provider for the construction industry and a comprehensive service provider for high-end industrial steel”.
It is understood that the iron & steel industry young cadres training class is held by the China Iron and Steel Association for further studying general secretary Xi Jinping’s important speech spirit about young cadres growth, improving the steel industry youth reserve cadres’ knowledge of the new stage, new ideas and new pattern, vigorously carrying forward the entrepreneurship and red steel tradition, providing talent guarantee for the high quality development of the steel industry. This is the second training class, which has been officially opened on September 19th, lasting for 5 days.
Post time: Oct-11-2022