Over the years, in the face of complex and changing business environments and market conditions, the "benchmarking and potential mining" work has become an important tool for China's steel enterprises to combat crises. Especially in the first quarter of this year, the supply in China's steel industry was significantly stronger than demand, with profits declining by .%, placing significant pressure on business operations. On the 1st of the month, the work conference of the leading group for the "benchmarking and potential mining" activities in the steel industry was held. Representatives from steel enterprises shared and exchanged experiences on the current industry situation and benchmarking and potential mining, striving to "mine" the "optimal solution" for steel enterprises to cope with market downturns.

"The harsh winter" has arrived, and a consensus on reducing development has been formed. Since the beginning of this year, the domestic steel market has generally shown a situation of "three highs and three lows": high production, high costs, high exports, low demand, low prices, and low efficiency. The survival and development of steel enterprises are facing significant challenges. Xie Feng, Standing Committee Member and Chief Accountant of the Party Committee of Ansteel, said: "The market situation this year is the most severe that Ansteel has faced in recent years. In the face of this cycle, the industry has formed a consensus on reducing development, but it is difficult to reduce. Some enterprises are hoping that others will reduce while they do not, and this is also related to local economic development." Xiao Ji, Deputy General Manager of Hunan Steel, stated that since the second half of last year, the steel industry has entered a significant downward cycle. Overall, this cycle is more difficult than the previous one. Wang Wei, Deputy Party Secretary and Deputy General Manager of Henan Steel, said: "Externally, the industry as a whole is still operating at a low level, with high costs and low prices leading to continuous losses and severe blood loss for enterprises, facing serious challenges in financing and production and operation; internally, the production targets for enterprises this year have been set relatively low, meaning that without a certain level of production, there will be no more revenue. Additionally, the increased investment in environmental governance has added to the business pressure."

Breaking Through Adversity: Steel Companies Take Multiple Measures to Show Real Efforts. Facing the severe situation, representatives from steel companies introduced their approaches to dealing with this year's market conditions during the meeting. Xie Feng outlined four main tasks for Ansteel: first, ensuring survival by managing debt ratio and cash flow; second, increasing investment in technological research and development; third, further intensifying efforts in "benchmarking and potential tapping"; and fourth, further enhancing reform efforts. Gao Xinglu, Deputy Secretary of the Party Committee and Deputy General Manager of Jiu Steel, stated that under the current circumstances, Jiu Steel focuses on procurement and sales, firmly establishes brand awareness, reasonably allocates resource flows, and strives to maintain regional markets. Xiao Ji introduced that to address the current situation, Hunan Steel adheres to adjusting product mix, continuously increasing R&D investment; benchmarking to enhance product competitiveness; reform and innovation to ensure enterprise vitality; cluster development of industries to seek breakthroughs in the industrial chain; and risk management. Wang Wei mentioned that the Henan Provincial Party Committee and Government place great emphasis on the transformation and quality improvement of the steel industry, structural adjustment, and layout optimization, vigorously promoting the integrated development of steel, aluminum, copper, and magnesium, and actively consolidating Luoyang Copper Group and Sanmenxia Daika Company. Facing new stages, new situations, and new requirements, Henan Steel maintains a clear understanding, resolutely implements the major strategic deployments of the Henan Provincial Party Committee and Government; constructs a new development pattern for the group ("one goal, three major tasks, five measures, six visions") to strive to build a top-tier competitive metallurgical industry group with a scale of over 100 billion yuan.

"Benchmarking and Potential Mining" and "Not Satisfying" Deepen into Common Demands. Over the years, under the promotion of the "Benchmarking and Potential Mining" leading group of the China Iron and Steel Association, the steel industry has actively carried out "Benchmarking and Potential Mining" work, making significant contributions to helping enterprises face challenges and enhance market competitiveness through comprehensive, multi-dimensional, and in-depth benchmarking. Xie Feng said, "The current 'Benchmarking and Potential Mining' work in the industry is a good thing, but it still 'doesn't satisfy.' The scope of benchmarking can be further deepened, including procurement strategies, procurement organizations, procurement methods, and sales prices." Gao Xinglu proposed that through media such as China Metallurgical News, efforts should be made to increase the publicity of outstanding "Benchmarking and Potential Mining" enterprises, promoting the priority recommendation and use of these benchmark enterprises' products in key projects. Xiao Ji said, "Hunan Steel places great importance on the 'Benchmarking and Potential Mining' work. In our view, there are no costs that cannot be reduced. Since the beginning, we have organized 'Benchmarking and Potential Mining' efficiency exchange meetings every month, comparing all production lines, units, and process indicators, while also exchanging experiences, sharing good practices, and criticizing those that are not done well."

It is not difficult to find that during each "winter" period in the steel industry, there are always some enterprises that can turn crisis into opportunity by "benchmarking and potential mining" and improving management levels. In the face of the current new downward cycle faced by the steel industry, steel enterprises will continue to make good use of this "heirloom," deeply carry out "benchmarking and potential mining" activities, and jointly promote the stable operation of the industry.