China to increase exports of value-added steel products - CISA

China's steel industry has been on the path of internationalization with a promising future, in spite of challenges and difficulties, Luo Tiejun, vice chairman of China Iron & Steel Association (CISA), told delegates attending the 1st China Steel Overseas Development Forum held in Hangzhou in East China's Zhejiang province on September 14.

During the forum, Luo noted that China's annual crude steel output has topped the world since 1996, and Chinese steel sector has the responsibility to contribute its strength to the development of the global steel industry and should continue on the path of internalization with high-quality development.

In 1996, China overtook Japan in terms of crude steel output to become the world's largest steelmaking country, totaling 101 million tonnes. By 2021, China's crude steel output had reached 1.03 billion tonnes, Mysteel Global noted.

"China's steel industry should stick to its brand, green development, technologies and services when going abroad," Luo said, noting that "it should unswervingly promote the investment and development of overseas equity iron ore mines and steel projects at the same time."

At present, China's equity capacity of iron ore in overseas mines reaches 120 million tonnes/year, and steel production capacity built or acquired abroad during the 13th Five-Year Plan period (2016-2020) amounted to 20 million tonnes, according to a CISA's survey.

Meanwhile, "Chinese steel sector should participate in high-level international cooperation and competition and should reduce exports of general steel products while export more high value-added items and import more billets and other primary products," he said.

Luo told delegates that CISA has been subdividing tax identification numbers of high value-added steel products and "our (CISA) purpose is to encourage exports of such products, to optimize the steel industry's export structure, improve the quality of exports, and provide high-quality steel products and services to the world."

"With more than 20 years of overseas investment, China's steel industry has accumulated valuable experience. Although there are many challenges in internationalization, we still have a bright future," Luo remarked.

"The global industrial chain is now at a critical stage of reconstruction," said Luo, adding that "especially for those 'Belt and Road Initiative' countries where the potential for per capita consumption of finished steel is huge and the development of the steel industry (in the region) has certain advantages."

When talking about how China's steel industry has been faring so far this year, Luo said that steel demand from end-users "was weaker than expected." The country's apparent steel consumption over the first seven months declined 7.1% on year, and weakened demand for steel was mainly from the domestic property sector, according to him.

Written by Rong Zhang, zhangronga@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.