"The stainless steel industry needs to enhance self-discipline, with leading enterprises setting an example, to jointly promote the stable and prosperous development of the stainless steel market." On April 25th, Xia Nong, Vice President of the China Iron and Steel Industry Association, emphasized this during his concluding remarks at the second meeting of the Standing Council of the Stainless Steel Branch of the Iron and Steel Association.

He stated that in the current and forthcoming period, China's steel industry will enter a phase of deep adjustment characterized by "high quality and reduced quantity". The stainless steel industry is an important field for the high-end, green, and intelligent development of the steel industry. Efforts should be made in five aspects to jointly promote the sustainable and healthy development of the industry, strengthen industry self-discipline, and maintain the smooth and orderly development of the stainless steel industry.

Firstly, rational investment is necessary, and blind expansion should be avoided. Currently, China's stainless steel industry has nearly 50 million tons of capacity, with a capacity utilization rate of only about 70% in 2023. There are still 8 million tons of smelting capacity under construction, so vigilance is required against the impact of new capacity on the market. Xia Nong pointed out the emergence of new situations and problems accompanying the deepening of supply-demand contradictions. It is necessary to guide enterprises to make rational investments and propose feasible paths and methods.

Secondly, attention should be paid to downstream demand, and industry self-discipline should be adhered to. In 2023, China was one of the few regions globally where stainless steel production continued to grow. Although there are still some new consumption areas for stainless steel waiting to be further developed, in the current situation of pessimistic downstream demand, the rapid increase in stainless steel production has led to increasing operational pressures on enterprises, with many stainless steel enterprises experiencing huge losses in 2023. The stainless steel industry should strictly adhere to the production mode of self-discipline with the purpose of meeting user needs and the principle of supply-demand balance, adhere to the business principle of "three nots", strengthen industry self-discipline, and improve industry efficiency.

Thirdly, accelerate the internationalization process and enhance the security level of stainless steel resources. In 2023, China's stainless steel production accounted for 62.8% of the global share, but almost all of the nickel and chromium resources needed for stainless steel production rely on imports. It is imperative to improve the security level of stainless steel industry resources. It is necessary to accelerate the construction of a resource security system that is compatible with industrial development, establish a full life cycle stainless steel critical resource strategic security mechanism integrating "exploration, construction, and operation".

Fourthly, insist on innovation-driven development to enhance the industry's development level with technological innovation. Xia Nong pointed out that the stainless steel industry should continue to vigorously promote scientific and technological innovation. Firstly, enhance independent innovation ability and scientific and technological innovation resource integration ability, accelerate the research and development of key stainless steel materials required for key projects and major equipment. Secondly, continue to tap potential and reduce costs, such as leveraging the advantage of the RKEF process (rotary kiln-electric furnace process) to significantly reduce the production cost of stainless steel, and exploring the potential of carbon dioxide to replace argon and nitrogen in stainless steel refining, promote the high-quality development of the stainless steel industry with technological innovation.

Fifthly, improve the green and low-carbon level of the stainless steel industry. Firstly, adhere to the development direction of green, low-carbon, energy-saving, and emission-reduction, continuously increase environmental protection investment, and strengthen energy conservation and environmental protection transformation. Secondly, actively develop and promote advanced green and low-carbon process technologies, promote the upgrading of production process technologies, and move towards full-process green and low-carbon production. Thirdly, accelerate ultra-low emission transformation to improve industry environmental protection level. At present, only a few stainless steel enterprises have completed all or part of the ultra-low emission transformation. Stainless steel enterprises should accelerate the reduction of carbon emissions in the production process through technological innovation and production process optimization.

Lastly, join hands and actively explore downstream markets for stainless steel. In recent years, the application of stainless steel in fields such as construction, water supply, and hydrogen energy has continued to expand. At the same time, the promotion and application of new stainless steel products, such as high-strength and corrosion-resistant stainless steel composite materials for railway freight cars, stainless steel for highway guardrails, and stainless steel for coal mining machinery and equipment, are accelerating. Next, the stainless steel industry should fully leverage the green properties of stainless steel, work hand in hand with downstream partners, jointly develop application markets, continuously tap and release the development potential of stainless steel, and expand broader development space for stainless steel.