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On December 17th, the Ministry of Industry and Information Technology held a press conference on "Standard Enhancement Leading the Optimization and Upgrading of the Raw Material Industry". Chang Guowu, Director of the Raw Materials Industry Department of the Ministry of Industry and Information Technology, stated at a press conference that with the gradual manifestation of the effects of the national incremental policy, steel prices have rebounded and remained stable since October, and industry efficiency has significantly improved. In October, the total profit of key enterprises was 7.16 billion yuan, reversing the industry's loss situation in August and September, and the industry's operation has shown a positive trend.

As we all know, since the second half of 2022, the supply and demand relationship of the steel industry has undergone significant changes due to the impact of downstream industries such as real estate, and the industry's efficiency has shown a significant decline. Chang Guowu stated that in response, the Ministry of Industry and Information Technology, together with relevant departments, actively promotes the smooth operation and transformation of the industry, mainly carrying out four aspects of work.

One is to implement the policy of capacity replacement in the steel industry. While effectively controlling the growth of total production capacity, actively promoting industry transformation and upgrading, layout optimization, and mergers and acquisitions. Especially since the beginning of this year, the organization has conducted an evaluation of the implementation effect of the capacity replacement policy, combined with the new situation and requirements of the industry's "reduction and quality improvement" development, issued a notice to suspend the work of steel capacity replacement, and suspended the public announcement of new steel capacity replacement plans. At present, we are working with relevant parties to organize the revision of the steel production capacity replacement method.

The second is to implement macro-control of crude steel production. The National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the Ministry of Emergency Management, the National Bureau of Statistics and other departments will adhere to the focus on energy conservation and carbon reduction, differentiate situations, provide guidance based on classification, and support the better and tide the worse. They will organize and carry out the 2024 national crude steel production regulation work. The crude steel production from January to November decreased by nearly 23 million tons year-on-year, a decrease of 2.7%.

The third is to strengthen industry standard management. Organize the revision of the regulatory conditions for the steel industry, study the establishment of a hierarchical and classified management system, strengthen policy linkage, guide the further aggregation of factor resources to advantageous enterprises, and accelerate the elimination of enterprises with weak market competitiveness.

The fourth is to actively promote equipment updates and upgrades. Develop and issue guidelines for equipment updates and technological upgrades in the steel industry, and use policies such as special refinancing to support the industry's green and digital transformation.

Chang Guowu stated that in the next step, the Ministry of Industry and Information Technology will focus on the characteristics of the total demand and demand structure changes in the steel industry in the new era, continuously consolidate the achievements of overcapacity reduction, promote dynamic balance between supply and demand, and guide the industry's transformation and upgrading. Firstly, organize research on the development plan of the steel industry during the 15th Five Year Plan period, comprehensively analyze the new situation faced by the steel industry's development, focus on the primary task of high-quality development and key tasks of new industrialization, and systematically plan the overall goals, key tasks, and policy measures for the development of the steel industry during the 15th Five Year Plan period. Secondly, accelerate the revision and promulgation of the implementation measures for capacity replacement in the steel industry, adhere to the policy orientation of "controlling total quantity, optimizing stock, and promoting upgrading", further optimize and improve differentiated capacity replacement policies, promote the optimization of industry organizational structure and layout structure, and promote the development of "reducing quantity and improving quality". Thirdly, we should accelerate the standardized management of the steel industry, implement graded and classified management, select a group of leading standardized enterprises, and guide them to transform and upgrade towards high-end, intelligent, green, efficient, and safe industries.