Transformation and upgrading to counter future risks

Standing at a new historical point, the steel industry is also facing a new development situation. In 2019, China’s steel industry will face many challenges. First, the external environment is undergoing profound changes. The global economy is becoming more differentiated, and the international trade situation is becoming more complex. The impact of trade friction is increasingly exposed. These changes will produce greater uncertainty on the internal and external demand for rectangular hollow section this year. Secondly, the marginal driving effect of supply-side reform is weakened. In addition, the development of high-quality endogenous power needs to be strengthened.There are problems affecting the steel industry, such as investment in innovation, research and development.

hollow section

The challenge is the next priority. The 19th national congress of the communist party of China (CPC) pointed out that China is currently in a crucial period of transforming. Steel pipe companies should grasp its growth momentum, focus on supply-side structural reform and improve the quality of supply. Therefore, transformation and upgrading of steel pipe industry is an important way. Government and steel pipe suppliers will gradually explore and develop a new model of intelligent manufacturing. We will raise the level of green development of the steel industry and achieve sustainable development.

First, mergers and acquisitions remain the focus of future work.It is the only way for the steel industry to realize high-quality development and scale benefits. During the “13th five-year plan” period, as early as in 2016, the ministry of industry and information technology issued a plan on mergers and reorganization of steel pipe industry. At present, some provinces issued development planning targets of pipe industry including henan, jiangsu. Government will continue to deepen supply-side reform of galvanized steel pipe.

In addition, in the face of the complex international situation, China’s steel industry needs to speed up the “go out”. The construction of “One Belt And One Road” can not only drive the development of infrastructure construction in countries along the belt and road, drive the international steel demand, but also open up a new market for China’s steel industry. Therefore, we should firmly grasp the construction opportunity. In recent years, China has reached cooperation with a number of countries along the belt and road in the areas of high-speed railways, nuclear power, shipping and Marine engineering.This is an important opportunity to accelerate the transformation of China’s steel industry and improve the status of the international steel industry chain. To this end, the iron and steel industry and hollow section manufacturers should improve the trade value of steel exports, build a global industrial chain, and improve the ability to use both domestic and foreign markets and resources.


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Post time: Sep-23-2019
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