The Road Map of China's Steel Industry: Reduction, Innovation and Transformation

501 Pages·2020·6.943 MB·English

by  Xinchuang Li

Xinchuang Li
The Road Map
of China’s
Steel Industry
Reduction, Innovation and
Transformation
’
The Road Map of China s Steel Industry
Xinchuang Li
’
The Road Map of China s
Steel Industry
Reduction, Innovation and Transformation
123
Xinchuang Li
ChinaMetallurgical Industry Planning
andResearch Institute
Beijing,China
ISBN978-981-15-2073-0 ISBN978-981-15-2074-7 (eBook)
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Foreword
Theironandsteelindustryisanimportantbasicindustryofthenationaleconomy.
Therearenumerouswritingsonironandsteel,butmostonmetallurgicalprinciples,
engineering design, process technology, etc. There are only a few ones on the
macro-developments of the industry, and The Road Map of China’s Steel Industry
is the epitome. As a monograph focusing on the analysis of the development
history, law and direction of the iron and steel industry, the book written by Mr.
Xinchuang Li is based on his experiences of more than 30 years on the planning
and research of the iron and steel industry. It is my great honor to prepare the
preface for this book.
SincethefoundingofthePeople’sRepublicofChinaandthroughtheeffortsby
several generations of the people working in the iron and steel industry in several
decades, China’s iron and steel industry has grown from small to large and from
weak to strong, and has embarked on a unique development road that conforms to
the law of both global iron and steel industry and China’s national conditions. At
thenewhistoricalstartingpoint,howcantheironandsteelindustryreviewthepath
ithastakenintheperspectiveofinternationalization?Howshoulditadapt,leadand
grasp the new normal? How should it thoroughly implement the supply-side
structural reform? In the book, Mr. Xinchuang Li makes in-depth and meticulous
analysis, exploration and research on the above issues.
In this manuscript, the logical veins are very clear. “Reduction” is a strategic
judgment on the development of the iron and steel industry, “innovation” is the
driveforthedevelopmentoftheironandsteelindustryunderthenewnormal,and
“transformation” istheimplementationpath ofsupply-side structuralreforminthe
ironandsteelindustry.“Reduction,innovationandtransformation”wereproposed
byMr.XinchuangLiinanimpromptuspeechwhenhewenttoasteelcompanyto
give lecture a few years ago. At that time, the problem of overcapacity in the iron
and steel industry was not fully recognized and paid with enough attention. The
development of the iron and steel industry later confirmed Mr. Li’s judgment,
which well indicates his insight and predictability to the industry. In the first part,
the book not only reviews the long-term development history of both China’s and
global iron and steel industry, but also summarizes the laws of the transfer and
v
vi Foreword
industriallayoutoftheglobalironandsteelindustry,conductsanin-depthanalysis
of China’s resolute decision on cutting overcapacity of the iron and steel industry
from 2016 to the present, points out the huge role played by the supply-side
structural reform in improving the competitiveness of China’s iron and steel
industry, and provides a useful Chinese solution to solve the global problem of
overcapacity in the iron and steel industry. What is the future direction of the iron
andsteelindustry?Howshallwedo?Inthesecondpart,aclearanswerisgiven,i.e.
promoting coordinated development in “Nine Aspects” (greenness, coordination,
quality focus, standardization, differentiation, service-oriented, intelligence, diver-
sification, and internationalization) to reshape the industrial value chain and con-
tinuously improve the competitiveness of the iron and steel industry. Each part is
independent and inseparable and organically related yet distinct from each other.
When reading the book, I was deeply aware of the clear viewpoints, objective
statements,richcases,anddetaileddatatherein,showingtheauthor’sdeepfeelings
and ingenious insights to the iron and steel industry.
Mr. Xinchuang Li has formed an indissoluble bond with the iron and steel
industry. He had studied “iron and steel” in the Central South University and
UniversityofScienceandTechnologyBeijing,“designed”ironandsteelinShanxi
Metallurgical Design Institute, “planned” iron and steel in the Ministry of
Metallurgical Industry, and “researched” iron and steel in China Metallurgical
Industry Planning and Research Institute. Mr. Li once studied in an international
MBA program at Peking University. He has long been making researches, has
profound knowledge about the development trend of the iron and steel industry,
policy research, corporate strategic positioning, project investment, etc., and has
published many heavyweight papers and two monographs, which provides a more
systematicresearchconceptforpromotingthehealthydevelopmentoftheironand
steelindustry.Ibelievethatthebookplaysanimportantguidingroleforthereaders
to understand the development history of theiron and steel industry and master its
future development.
Beijing, China Yong Gan
October 2017
Preface
Under the background that China’s economic development has entered into a new
normal, with the transformation of economic growth into medium and high speed,
the move of the industrial structure towards mid-to-high end and the shift to new
economic growth drives, the consumption intensity of steel products per unit of
GDPtendstodecline,andthetotalsteelconsumptionhasenteredadecliningzone
afterthepeakarczone.Despitethefluctuationsandrepetitions,thegeneraltrendof
reduction-based development of China’s iron and steel industry has become clear,
which will lead to gradual declines in total energy consumption, total pollutant
emissionsandtotalresourceconsumption,haveafar-reachingeffectontheprocess
restructuring, technical equipment structure, product structure, energy structure,
resourcestructure,organizationalstructureandindustriallayoutofChina’sironand
steel industry, and put forward new requirements for industrial development mode
and development drives.
With the 19th National Congress of the Communist Party of China as an
important mark, a new era of socialism with Chinese characteristics has been
opened. The principal contradiction faced by Chinese society has evolved into the
one between unbalanced and inadequate development and the people’s
ever-growing needs for a better life, and the economic growth has turned from a
high-speedstagetoahigh-qualitystage.Theironandsteelindustryisanimportant
basicindustryofthenationaleconomy.Lookingbackathistory,theChinesenation
needs iron and steel to stand up; the Chinese nation needs more iron and steel to
become rich. Looking ahead, the Chinese nation needs better iron and steel to
become more powerful. This puts higher demands on not only steel products but
alsoironandsteelenterprises.Howtodobetterrequirestheironandsteelindustry
to further implement the development concept of “innovation, coordination,
greenness, openness, and sharing” and deepen the supply-side structural reform,
which is the key to leading the development of the iron and steel industry in the
new era.
China Metallurgical Industry Planning and Research Institute (MPI) is the
advisory body for government agencies, the leader of industrial development, and
thethinktankforcorporateplanning.MPIhasundertakenmanyimportantresearch
vii
viii Preface
projectsonthepoliciesforironandsteelindustry,environment,safety,energyand
quality, hundreds of special analysis related to raw materials, production and
consumption of the iron and steel industry, and consultation reports for thousands
ofChineseandforeigncompanies.AsthePresidentofChinaMetallurgicalIndustry
Planning and Research Institute, I have taken charge of and participated in the
above-mentionedmajorconsultationprojects.Iamgratefulforthegreatnewerawe
areinandtheironandsteelindustrywhichenjoysanimportantpositionasabasic
industry, and wish to express sincere thanks to the unique platform of China
Metallurgical Industry Planning and Research Institute and to our energetic and
united colleagues, which have given me many opportunities, special perspectives
and personal feelings, thus forming an organic and unified understanding of the
external situation, strategic position, development drives and transformation path
of the iron and steel industry in the new era.
Following contents are mainly elaborated in this book—The Road Map of
China’s Steel Industry—Reduction, Innovation and Transformation: the develop-
menthistory andtheindustrialcentershiftoftheglobalandChina’sironandsteel
industry are reviewed, the industrial laws behind it is analyzed, and new under-
standings and judgments on the development stage of the global and China’s iron
and steel industry are made; from the perspective of the characteristics of the iron
andsteelindustryandpopulationeconomics,thecompetitiveadvantagesofChina’s
ironandsteelindustryisdeeplyanalyzed,andaproposalthattheChineseironand
steelindustrywillleadtheglobalironandsteelindustryforalongtimeismade;the
internationalanddomesticsituationsfacedbyChina’sironandsteelindustryunder
thenewnormalareanalyzed,andtherequirementsforsupply-sidestructuralreform
of China’s iron and steel industry are put forward; relevant measures of “cutting
overcapacity” for implementing the supply-side structural reform in the iron and
steel industry are illustrated from comprehensive perspective, the major historical
role of supply-side structuralreformtopromotethe restructuring and upgrading of
China’s iron and steel industry and China’s contributions to resolving the overca-
pacity of global iron and steel industry driven by supply-side structural reform are
put forward through study; as socialism with Chinese characteristics enters a new
era, the coordinated and innovative development of the iron and steel industry in
“nine aspects” will be promoted in the future to reshape the industrial value chain
and continuously improve industrial competitiveness.
I am humble in writing, and also felt that my knowledge is inadequate and the
opinionsarelimitedduringthecompilationprocess,butIdohopethatthebookcan
induce valuable opinions and make contributions to the society. If the book can
givesomereferencesandguidancetothedevelopmentoftheironandsteelindustry
in the new era, the care, help, support and encourage given by many leaders and
expertstomewillnotbeinvain. As anordinarypracticer working intheiron and
steelindustry,Iwillbegrateful,continuetoworkhard,andliveuptoexpectations.
I sincerely thank the leaders, colleagues and all the friends who have provided
supportforthebook!IexpressspecialthankstoMr.YongGan,Academicianofthe
ChineseAcademyofEngineeringfortakingthetimetowriteaprefacetothebook
and provide guidance for the development of the iron and steel industry, and give
Preface ix
thanks to the hard work made by my colleagues including Tiejun Fan, Longqiang
Zhang, Xiaodong Jiang, Chuang Li, Jijun Cheng, Tao Liu, Xue Gao, Bing Li, Qi
Liu, Cheng Chen, Ning Lu, Dongmei Huo, Sheng Gao, Jia Zhao, Zhijie Guan,
Weiwei Zhang, Cantao Shi, Xiuting Wu, Feng Peng, Songbo Zhang, Deng Pan,
Xiao Li, Xiang Zhou, Mei Li, Yifan Wang, etc. I sincerely hope that readers will
providecriticismandguidingopinionssothatIcancontinuetomakeimprovement.
Beijing, China Xinchuang Li
December 2017 President of China Metallurgical
Industry Planning and Research Institute
Introduction
WiththesocialismwithChinesecharacteristicsenteringanewera,howtoachieve
high-quality development of the iron and steel industry has become a major
propositioninfrontoftheChineseworkingintheironandsteelindustry.Thisbook
focuses on the general requirements for high-quality development, combines the
mainlineofsupply-sidestructuralreformwiththerealityofChina’sironandsteel
industry, and takes the reduction, innovation and transformation as the veins. The
book is divided into two parts and thirteen chapters, in which the development
history oftheglobal andChina’sironandsteelindustryarereviewed,theindustry
laws are extracted from industry transfer footprints, a large number of enterprise
practice cases are analyzed, the development situations faced by the iron and steel
industry in thenew eraare systematically analyzed, and thestrategic direction and
implementation path for the future development of the iron and steel industry are
proposed. Through the analysis in the book, the author believes that in order to
achievehigh-quality developmentof theiron and steelindustry, it must strengthen
innovation drive, promote coordinated development of “Nine Aspects”, namely,
greenness, coordination, quality focus, standardization, differentiation,
service-oriented, intelligence, diversification and internationalization, and reshape
the value chain of the iron and steel industry, continuously improving the com-
petitiveness of the industry.
This book can be used by the leaders of metallurgical enterprises and institu-
tions, the management and scientific research technicians engaged in planning
research,engineeringconsulting,financeandotherbusinessaswellastheteachers
and students of metallurgy-related professions in colleges and universities.
Book Cataloging-in-Publication (CIP) Data
The Road Map of China’s Steel Industry: Reduction, Innovation and
Transformation/XinchuangLi.–Beijing:Metallurgical IndustryPress,March,2018
ISBN 978-7-5024-7736-3
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