The 3rd Joint Meeting of Presidents and the Council Meeting of the 10th Session of China Special Steel Enterprise Association was held in Shanghai

From November 4th to 6th, the 2024 China International Special Steel New Materials Summit and the 2024 China International Special Steel Industry Exhibition were held in Shanghai. During the same period, the 3rd Joint Meeting of Presidents and the Council Meeting of the 10th Session of Special Steel Enterprise Association of China (hereinafter referred to as SSEA) was convened in Shanghai on November 4th. Qian Gang, Deputy Secretary of the Party Committee and President of CITIC Pacific Group, as well as Secretary of the Party Committee and Chairman of CITIC Pacific Special Steel Group; Zhang Zhixiang, Chairman and President of Jianlong Group; Chen Yuqian, Deputy Secretary-General and Director of Industry Operation Department of China Iron and Steel Association, and other attendees participated in the meeting.

At the 3rd Council Meeting of the 10th Session of SSEA, Wang Shifeng, Vice President of Jianlong Group and Chairman of Xining Special Steel, delivered a welcome speech. Wang Wenjin, Party Branch Secretary and Executive President, presented the work report of SSEA. Liu Jianjun, Secretary-General, reported on the work of the Secretariat; Wang Jianhua, Chief Analyst of Shanghai Steelhome, presented a special report. Wang Wenjin and Liu Jianjun hosted the Joint Meeting of Presidents and the Council Meeting respectively.

Wang Shifeng stated that the special steel industry is currently in a complex and volatile development environment. On the one hand, with the continuous development of the national economy and the advancement of industrial upgrading, the demand for special steel has maintained steady growth in high-end equipment manufacturing, aerospace, new energy, and other fields. Special steel, with its excellent performance and quality, provides strong support for major national projects and key areas. On the other hand, the special steel industry is also facing many challenges, including fluctuations in raw material prices, intensifying market competition, and significant environmental protection pressures.

Wang Wenjin introduced the operating situation of the special steel industry in 2024 and the key focus of the industry’s next steps. From the perspective of industry operation: Firstly, the supply and demand of high-quality and special steel crude steel production have remained balanced and stable, and the product structure has continued to adjust towards high-end products. According to SSEA statistics, the production of special steel by member units in the first three quarters (29.07 million tons) increased by 8.2% year-on-year, and the production of special-quality alloy steel increased by 1.3% year-on-year. Secondly, the main profit indicators of special steel enterprises have declined, and operational pressures have increased. According to SSEA statistics, 19 out of 26 major special steel enterprises reported year-on-year profit declines, with 9 suffering losses, resulting in an industry loss rate of 34.6%. Thirdly, product exports have continued to improve, but there has been a phenomenon of increasing quantities with falling prices. In the next step, the special steel industry will focus on promoting industry self-discipline, benchmarking, strengthening communication with relevant government departments, actively seeking policy support, international exchange and cooperation, and other key tasks.

Wang Wenjin also emphasized that China is currently in a critical period of advancing Chinese-style modernization. With the transformation of domestic economic development structures, traditional demand for construction steel has entered a downward trend, while the advancement of manufacturing towards high-end fields has opened up new development space for the special steel industry. However, with the strong development momentum of the “transformation from ordinary steel to high-quality steel, and from high-quality steel to special steel” in the ordinary steel industry, the supply of traditional bar and wire rod products has increased significantly, and it is necessary to focus on preventing the risk of overcapacity. He noted that amid the coexistence of opportunities and risks, the development of China’s special steel industry has entered a new arena. The focus of enterprise development is shifting from pursuing scale benefits to continuous improvement in variety, quality, and cost. Product refinement and higher quality will become the key paths for the development of the special steel industry; enterprises need to uphold the principles of market fairness and integrity, strengthen self-discipline, and avoid vicious internal competition; industry mergers and acquisitions are still ongoing, and it is necessary to further strengthen the market mechanism of survival of the fittest to achieve healthier and more sustainable development.

At the 3rd Joint Meeting of Presidents of the 10th Session of SSEA, representatives from the president and vice-president units of SSEA elected Zhao Fazhong as the Deputy Secretary-General of SSEA according to the procedures. They also introduced the production and operation situations of their respective enterprises and the key focus of their next steps, analyzed the future operating trends of the special steel industry, and contributed wisdom and suggestions for the high-quality development of the industry.