On a certain date, the China Iron and Steel Association held a symposium on the economic operation of some steel enterprises in the third quarter in Beijing. Tang Zujun, member of the Party Committee Standing Committee and Vice President of the Steel Association, attended the meeting and delivered a concluding speech. Chen Yuqian, Deputy Secretary-General of the Steel Association and Director of the Industry Operation Department, presided over the meeting. Representatives from steel enterprises such as China Baowu and Ansteel Group exchanged views on the production and operation of their enterprises in the first three quarters, discussed the current issues and challenges faced by the industry and enterprises, analyzed the development situation of the fourth quarter, and put forward numerous constructive opinions and suggestions.

Participants from the enterprises believe that the steel industry is currently showing a "three highs and three lows" (high production, high costs, high exports, low demand, low prices, low efficiency) operational trend. In the first quarter, except for the first two weeks of the month, the China Steel Price Index remained below the point for consecutive weeks, hitting a new low since February of the year in early October. The profits of steel enterprises have significantly declined in the first three quarters of the year, facing operational difficulties. Regarding the industry situation in the fourth quarter, the participants expressed a cautiously optimistic view. They believe that despite the rapid and substantial increase in steel prices at the end of the month, there has been no significant change in steel orders. They consider this to be the result of a series of proactive monetary and fiscal policy expectations from the state, and the supply-demand situation in the steel industry has not fundamentally changed. In the fourth quarter, there may be a phased rebound opportunity for steel prices, but not a reversal, and the trend of "strong supply and weak demand" in steel will persist in the long term. In response, steel enterprises should maintain strategic clarity, adhere to the "three fixes and three avoids" operational principles, continuously exercise self-discipline in controlling production and reducing inventory, and avoid falling into the vicious cycle of "increasing production when steel prices rise, incurring losses when production increases, and losing more as production increases."

In response to the current industry operation situation and concerns of enterprises, Tang Zujun shared his views during his summary:

First, it is essential to fully recognize that the supply-demand relationship in the steel industry has undergone fundamental changes. Tang Zujun believes that the main reasons for the current difficulties in the steel industry are twofold: one is the imbalance between supply and demand, and the other is the persistently high prices of raw materials. The root cause remains the imbalance between supply and demand, with supply remaining high while demand has significantly declined. From year to year, China's steel production has remained above 1 billion tons for consecutive years, while apparent consumption has decreased from a peak of 8.75 billion tons in year to 7.65 billion tons in year, a decline of 1.1 billion tons. From January to September this year, steel production reached 776 million tons, with the annual total likely exceeding 1 billion tons; apparent consumption was 660 million tons, a year-on-year decrease of 4.2%, and the annual total is likely to be below 800 million tons. In the long run, China's economy has entered a new stage of development, transitioning from high-speed growth to high-quality development, with the transformation of new and old growth drivers in a gear-shifting period. Currently, China's urbanization rate has exceeded 65%, and the supply-demand relationship in the real estate market has undergone fundamental changes; infrastructure construction is largely complete; and the industrial system is also largely complete, entering the era of new industrialization. The period of large-scale construction in China has passed, and the demand for steel will gradually decrease and stabilize at a certain level. The China Iron and Steel Association predicts that demand may be around 800 million tons by year. In summary, the trend towards reduction is inevitable.

Second, the steel industry has entered a new stage of transformation and upgrading. Tang Zujun believes that as a foundational industry, the steel industry's supporting role in the national economy will not change. Compared to other materials, steel is versatile, affordable, and, when viewed from a full life cycle, is a green material that can be recycled. In the foreseeable future, steel is indispensable and irreplaceable. Entering a new era and a new stage of development, building a modern economic system, and constructing a socialist modernized power also cannot do without the steel industry. He deeply feels that: "In recent years, the difficulties faced by China's steel industry are not indicative of the industry's decline, but rather its excessive scale. China's steel industry remains the most competitive in the world, with steel equipment technology at a world-class level, and advancements in intelligent manufacturing and green low-carbon development leading the world. Currently, we must face the difficulties squarely while maintaining confidence; the steel industry has great potential, and the path of transformation and upgrading is long and arduous."

Thirdly, we must hone our internal skills, enhance competitiveness, and achieve high-quality development. Tang Zujun believes that in the current fiercely competitive market, steel enterprises must not only survive but also thrive and endure for the long term by strengthening the construction of five capabilities: strategic planning, technological innovation, cost control, risk resistance, and self-discipline. He states that strategic issues are the biggest problems for enterprises, and especially during the current phase of adjustment and transformation, strategic research must be emphasized; one cannot simply focus on the immediate task without looking ahead. Subsequently, he elaborates on the importance of building technological innovation and cost control capabilities. For enterprises to survive and develop, they must rely on technological innovation to form their unique skills, which are the source of sustained competitiveness, such as CITIC泰富特钢, 抚顺特钢, and 龙腾特钢. Secondly, they must create their own cost advantages, especially for similar products with high market demand, as cost advantages translate into competitive advantages. He points out that cost reduction is an ongoing issue, and the pursuit of ultimate efficiency and cost is perpetual. When discussing the construction of risk resistance capabilities, he particularly reminds enterprises to prioritize risk prevention. He suggests focusing on strategic, operational, and financial risks, with a current emphasis on financial risks; cash flow must not be interrupted, and minimizing losses should be a priority. Regarding the construction of self-discipline capabilities, Tang Zujun emphasizes that self-discipline is crucial for both enterprises and the industry, as only through self-discipline can one move steadily and sustainably. Enterprises should organize their production and business activities according to the "three principles of three nots," which are the basic operational principles and forms of self-discipline. From an industry perspective, it is possible to explore strengthening regional and product self-discipline, controlling production rhythms, and promoting dynamic balance between supply and demand.