On January 30, 2026, the 13th Member Congress of the China Iron and Steel Association was solemnly held in Beijing. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the meeting comprehensively implemented the spirit of the 20th National Congress of the Communist Party of China and the Central Economic Work Conference, systematically summarized the achievements of high-quality development in the steel industry during the 14th Five-Year Plan period, deeply analyzed the current situation, outlined the development blueprint for the 15th Five-Year Plan period, and deployed key tasks for 2026. More than 700 people, including leaders from the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Commerce, and other ministries, representatives of leading steel enterprises, and guests from upstream and downstream companies, gathered to discuss the industry’s development and build consensus for promoting new industrialization and contributing to China’s modernization.
I. Setting Goals and Summarizing the Remarkable Achievements of the Steel Industry during the 14th Five-Year Plan Period
During the 14th Five-Year Plan period, facing the triple pressures of shrinking demand, supply shocks, and weakening expectations, China’s steel industry resolutely promoted supply-side structural reform, delivering a substantial and inspiring report card. At the meeting, Zhao Minge, President of the China Iron and Steel Association, pointed out in his report, “Firmly Confident, Moving Towards Innovation and Excellence: Achieving a Good Start for the Steel Industry’s 15th Five-Year Plan,” that the industry achieved a high-quality development trend of “stability, progress, and innovation” through “controlling total output, optimizing supply, strengthening the foundation, and promoting transformation.”
The modernization level of industry governance has significantly improved. Through new capacity management mechanisms and mergers and acquisitions, the concentration of the steel industry has gradually increased, with the top ten steel companies accounting for over 40% of the market, and market order has significantly improved. The basic industrial capabilities have greatly improved, breakthroughs have been achieved in key core technologies in key areas, the coverage rate of 5G+industrial internet application scenarios has reached 85%, and the production efficiency of intelligent manufacturing demonstration factories has increased by more than 30%. The steel industry has achieved world-leading results in green and low-carbon transformation, with comprehensive energy consumption per ton of steel decreasing by 5.6% compared to the end of the 13th Five-Year Plan period. Ultra-low emission retrofitted capacity accounted for 82% of total capacity, and the proportion of renewable energy usage increased to 18%. Internationalization has made solid progress, with overseas equity mineral resources exceeding 1 billion tons, and steel product exports covering more than 150 countries and regions worldwide.
Particularly noteworthy are the five highlights of the steel industry’s performance in 2025: Optimized supply and demand, with crude steel production decreasing by 3% year-on-year and apparent consumption decline narrowing to 1.2%; record-high exports, with steel exports reaching 120 million tons, a year-on-year increase of 23%, maintaining its position as the world’s largest steel exporter for three consecutive years; continuously improving efficiency, with total industry profits exceeding 300 billion yuan, a year-on-year increase of 15%, and the asset-liability ratio falling below 58%; record-breaking environmental indicators, with particulate matter and sulfur dioxide emissions per ton of steel decreasing by 40% and 55% respectively compared to 2020; and fruitful scientific and technological innovation achievements, with 12 achievements, including the Metallurgical Science and Technology Award Special Prize project “Key Technologies for High-Efficiency Energy-Saving Clean Steel Smelting,” achieving industrial application.
II. Facing Challenges Head-on: The 15th Five-Year Plan Sets a New Standard for a Modernized Industrial System
At the historical juncture of concluding the 14th Five-Year Plan and embarking on the 15th Five-Year Plan, Zhao Minge provided an in-depth analysis of the complex situation facing the industry: Internationally, the global economic recovery is weakening, trade protectionism is on the rise, and steel exports face pressure of “increased volume but decreased prices”; domestically, weak demand in the real estate sector is dragging down steel consumption intensity, and incremental demand in areas such as new energy has not yet achieved economies of scale; within the industry itself, the dependence on imported iron ore remains as high as 65%, the commercialization of new technologies such as hydrogen metallurgy and short-process steelmaking is slow, and the industry concentration lags significantly behind that of countries like the US, Japan, and South Korea.
In response, the meeting clearly proposed the development goals for the 15th Five-Year Plan: By 2030, to fully establish a modern steel industry system with significant global influence, strong industrial independence, and high contribution to development. To achieve this goal, 2026, as the starting year, will focus on advancing the “1231” strategic implementation path—namely, anchoring on one overall objective, grasping the two main lines of “controlling total output and optimizing supply,” implementing three major projects of “quality improvement and product innovation,” “energy and carbon efficiency enhancement,” and “digital and intelligent transformation,” and establishing four key levers: improving the new mechanism for capacity management, mergers and acquisitions, the “iron resource development plan,” and the “steel application expansion plan.”
Zhao Minge emphasized that achieving the above goals requires adherence to seven key principles:
III. Building Consensus and Collaborating Among Multiple Ministries to Promote High-Quality Development of the Industry
Zhang Haideng, First-Level Inspector of the Raw Materials Department of the Ministry of Industry and Information Technology, pointed out in his speech that the steel industry should base itself on the strategic positioning of “manufacturing powerhouse” and take technological innovation as the core driving force. He put forward three requirements: First, deepen supply and demand coordination, establish a strategic cooperation mechanism for the upstream and downstream industrial chains, and expand the market for high-end steel used in new energy vehicles, aerospace, and other fields; second, strengthen standard guidance, accelerate the formulation of a certification system for low-carbon steel products, and promote 50 group standards to be upgraded to national standards; third, build a solid safety defense line, strictly control new capacity, and establish a risk early warning mechanism for capacity replacement.
Xiao Lu, Deputy Director of the Foreign Trade Department of the Ministry of Commerce, warned about the export situation: Although steel exports reached a record high in 2025, the average export price decreased by 12% year-on-year, and the industry fell into the dilemma of “increased production but not increased efficiency.” She emphasized the need to promote the transformation of exports from “quantity increase” to “quality improvement,” support enterprises in exploring emerging markets, strictly prevent trade frictions caused by low-price dumping, and encourage the export of high value-added products, striving to increase the proportion of electromechanical steel exports to 45% by 2026.
IV. Facing Reality: The Industry Urgently Needs to Address High Inventory and Export Concerns
Despite the remarkable achievements of the 14th Five-Year Plan, the industry still faces severe challenges. Data from the China Iron and Steel Association shows that as of mid-January 2026, steel inventories at key steel mills reached 18.7 million tons, a near six-year high. Jiang Wei, presiding over the meeting, urged: “With the Spring Festival approaching, market demand is entering a seasonal trough. The entire industry must remain rational. Large enterprises should play an exemplary role, and small and medium-sized enterprises should actively respond, resolutely curbing the impulse to blindly resume production and striving for a ‘good start’ in profits.”
Furthermore, the phenomenon of “increased export volume but decreased price” has attracted attention. In 2025, the average export price of steel was $862 per ton, a 23% decrease compared to 2020, reflecting problems such as low product added value and insufficient international bargaining power. In response, the meeting proposed establishing an “export price monitoring and early warning mechanism” to guide enterprises to strengthen self-discipline and avoid vicious competition.
V. Poised for Takeoff: Technological Innovation and Ecological Co-construction Paint a Blueprint for the Future
At the concurrent Technological Innovation Conference, the 2025 Metallurgical Science and Technology Awards were announced, with 10 projects, including Baowu Group’s “Hydrogen-Based Vertical Furnace Direct Reduction Iron Process Technology,” winning the Special Prize. Zhang Xiaogang, Chairman of the Chinese Society for Metals, stated that the mechanism for the transformation of scientific and technological achievements will be further improved to promote the application of laboratory technologies to production lines.
Notably, the conference reviewed and approved the “Showcase Plan for the Exhibition of Technological Innovation Achievements in the Iron and Steel Industry during the 14th Five-Year Plan Period,” which will promote over 200 advanced and applicable technologies nationwide. Meanwhile, in the two years since its launch, the steel industry’s EPD platform has cumulatively released carbon emission data exceeding 500 million tons, providing important data for green procurement in downstream industries.
VI. Working Together to Write a New Chapter in Building a Strong Steel Nation in the New Era
At the closing of the conference, the participating representatives expressed their commitment to using this conference as an opportunity to unify their thoughts and actions with the decisions and deployments of the Party Central Committee, to plan for the overall situation with the mindset of “success need not be mine,” and to implement the decisions with the responsibility of “success must be achieved by me.” As Zhao Minge said, “The dream of becoming a steel powerhouse cannot be achieved by simply beating drums and gongs; it requires us to persevere with a nail-driving spirit, hammering away one blow after another, taking one step at a time.”
Standing at a new historical juncture, China’s steel industry is deepening reforms with greater resolve, promoting innovation with higher standards, and implementing green and low-carbon practices with more concrete measures, forging ahead towards the grand goal of “building a world-class steel powerhouse!”
Excerpted from Steel.com
