Lv Guixin: Low-carbon development is an inescapable challenge for the steel industry

"As an energy-intensive industry, the steel industry is one of the largest carbon emitters among the 31 categories of manufacturing.Under the constraints of the '3060' low-carbon target, low-carbon development is an inevitable challenge for the steel industry. We must take action from now on. The earlier we take action, the more proactive we will be."Lv Guixin, first-level inspector of the Raw Material Industry Department of the Ministry of Industry and Information Technology, said this at the 11th China International Iron and Steel Conference on May 27.

At the meeting, in a keynote speech entitled "Deepening the supply-side structural reform to promote high-quality development of the steel industry", Lv Guixin combined with the new stage of development, the implementation of the new development concept, the construction of a new pattern of development in three aspects of content, on how to achieve high-quality development of the steel industry, promote the construction of steel power to give advice.

Look at the situation from the new stage of development

"At present, China's steel industry is in a stage of development from large to strong."Lv Guixin introduced that since the "13th Five Year Plan", China's iron and steel industry through in-depth supply side structural reform, the market order has been effectively purified, the supply capacity has been significantly enhanced, the industrial structure is more reasonable, and the effect is significant.In 2020, China's crude steel output will reach 1.065 billion tons, making China the first country in human history to surpass 1 billion tons."This is the result of rapid industrialisation and urbanisation in a country with a population of about a billion people.""He noted.

At present, major changes unseen in a century are taking place at a faster pace, and they are intertwined, stirring and influencing the overall strategy for the great rejuvenation of the Chinese nation.Lv Guixin pointed out that this has brought new opportunities and challenges to China's iron and steel industry.

From the perspective of opportunities, China has made significant strategic achievements in combating COVID-19, and the dividend of comprehensive reform has been released at an accelerated pace, which is conducive to the steel industry to capture new demand, develop new technologies, research and develop new products, create new models and establish a new ecology.

From the perspective of challenges in the future for a period, there are lots of uncertainty, epidemic situation changes the global economic recovery unstable, unbalanced, "inverse globalization" intensified, the global steel industry chain supply chain appear shorter, more signs of localization, more diversified, further squeezing international cooperation channels and space of iron and steel industry in China.

"We must be soberly aware that the foundation for China's steel industry to consolidate overcapacity reduction is not yet solid, and there are still many outstanding problems in innovation-led, green development, resource security and other aspects, and we need to redouble our efforts to make China a strong steel country."Lyu Guixin said that the steel industry should strive to enter a high-level development stage of reasonable industrial layout, stable resource supply, advanced technology and equipment, prominent quality brands, high level of intelligence, strong global competitiveness, green, low-carbon and sustainable development by 2025.

Implement the new development philosophy to promote transformation

"High-quality development can only be achieved by unswervingly implementing the new development philosophy, realistically changing the development model, and promoting reform in quality, efficiency and growth drivers."Lv Guixin pointed out that the new development concept is the connotation of high quality development of the steel industry.Steel industry during the "difference" promote the construction of steel powers, shall be complete, accurate, comprehensive implementation of new development concept, from the fundamental purpose, problem oriented, suffering consciousness on master new development philosophy, adhere to the bottom line of thinking, solving the problem of imbalance in the development of industry, inadequate, safeguard industry chain supply chain security, promote the common prosperity upstream and downstream industries.

"Here, I would like to focus on the green and low-carbon development of the steel industry."Lv Guixin pointed out that the steel industry should correctly grasp the relationship between development and emission reduction, overall and local, short-term and medium - and long-term, scientific planning, solid progress in the steel industry low-carbon development.He further pointed out that at present, there are mainly three ways to control crude steel output, increase the proportion of EAF short-process steelmaking, and develop green technology such as hydrogen metallurgy, carbon capture and carbon sequestration.

"Among them, the most important, the most immediate effect is to control crude steel production.The Ministry of Industry and Information Technology has just introduced a new method for replacing steel capacity, with stricter requirements and a higher proportion."Lv Guixin said that the steel industry should deeply understand, timely adjustment, quality upgrading, resolutely abandon the extensive development mode to win by quantity, and strive to achieve the peak of carbon industry in 2030.

At the same time, since the beginning of this year, steel and other commodity prices continued to rise, causing the industry to control the production capacity of the situation, Lv Guixin said that steel prices rise sharply is irrational, is a short-term behavior, in the long term, the fundamentals do not support, the policy does not allow.

He analyzed that, first of all, the steel price rise is mainly due to the international commodity price rise, global liquidity, as well as market expectations and other factors.At present, the steel industry has sufficient guarantee capacity from the perspective of quantity. It is necessary to make clear that the high consumption and high demand of steel supply in China is abnormal, and China is still facing the pressure of steel overcapacity.Secondly, China's steel supply wiggle room, in the "fourteen five" period through the adjustment of import and export to make up for China's domestic steel demand, such as low value-added steel to reduce exports, increase imports and so on.He revealed that the Ministry of Industry and Information Technology has recently promoted steel import and export duties and tax rebate policy adjustment.Finally, we should take a dialectical view of the relationship between output, prices and profits, strengthen strategic resolve, draw lessons from history, and avoid returning to the old stimulus-growth-over-loss-path.

Build a new development pattern to ensure stability

Accelerating the building of a new development pattern featuring domestic cycles as the main body and mutually reinforcing domestic and international cycles is a proactive choice to adapt to the changing stage of China's economic development, a strategic measure to cope with the changing complex international environment, and an inherent requirement to give full play to the advantages of China's super-large economy.Lv Guixin said that the iron and steel industry, as the basic industry of the national economy, must lay a solid foundation for the construction of a new pattern of development from four aspects.

First, the steel industry should work hard to break through the blockage, achieve a dynamic balance between supply and demand, and move faster to solve the problems of over-reliance on imports of materials and iron ore.

Second, the steel industry should be driven by innovation and high-quality supply to lead and create new demand, accelerate the deep integration of the steel industry and information technology, achieve process innovation, product innovation, service innovation, and pay attention to the cultivation of more innovative talents.

Third, taking domestic circulation as the main body is not self-closing, nor is it a small regional cycle. The steel industry should continue to deepen international cooperation on steel production capacity, strengthen cooperation on overseas iron ore resources, accelerate the development of domestic iron ore resources and the recycling and utilization of scrap steel resources, and improve the ability to guarantee resources independently.

Fourth, as one of the key industries to cut overcapacity, the steel industry must continue to deepen the supply-side structural reform and strictly observe the bottom line of not adding new capacity."This is the basis and premise for the high-quality development of the steel industry, as well as the fundamental adherence and magic weapon to overcome all kinds of difficulties on the development road."Lu Guixin pointed out.

"This year is the first year of the 14th Five-Year Plan. It is of great significance to get off to a good start."Lv Gui new said miit will cooperate with the National Development and Reform Commission and other departments, the implementation of production capacity, production control, organization to carry out the iron and steel production capacity to "look back", to consolidate and capacity results in recent years, the study at the same time, and establish a carbon emissions, pollutant discharge, such as the total energy consumption constraint mechanism on the basis of production.

"Iron and steel enterprises to improve the political position, resolutely put the 'double control' task into effect, to achieve the annual target.""He noted.