In 2024, the steel industry continued to advance in a complex and volatile market environment, demonstrating resilience and vitality in the face of numerous challenges. Next, let's take a look back at the steel industry in this year.
China's steel exports have continued to grow in 2024. In the first 10 months, steel exports reached 91.89 million tons, an increase of 23.3% compared to the same period last year. It is expected that the annual export volume will exceed 110 million tons, setting a new high since 2016. In terms of export structure, hot-rolled coils and coated and plated steel sheets have always accounted for a large proportion. In addition, Asia remains the main destination for China's steel exports, accounting for up to 70%, followed by Africa and South America.
With the continuous advancement of globalization, Chinese steel enterprises are actively responding by accelerating their pace of overseas investment and factory construction. Sinosteel Equipment and Xinfeng Steel (Egypt) Co., Ltd. have successfully signed the general contracting agreement for the 2 million-ton hot-rolled coil project in Egypt. Meanwhile, Longteng Special Steel has established its first overseas factory in Zambia, Africa, while Zhongtian Steel has also invested in the construction of a large-scale integrated steel production base in Indonesia. These measures will undoubtedly further optimize the layout of the global steel industry.
III. Advancement of intelligent transformation
With the continuous advancement of technology, intelligent transformation has become an essential path for steel enterprises to enhance their competitiveness. In recent years, the concept of "unmanned factory" has gradually become a reality in the steel industry. For instance, Ansteel Mining Guanbaoshan has established a predictive maintenance system for equipment, predicting equipment failures through intelligent technology and carrying out maintenance in advance. Zhongtian Steel has also introduced a full-process intelligent logistics scheduling system, optimizing logistics management and enhancing production efficiency. These measures of intelligent transformation will further propel the steel industry towards a more intelligent and efficient direction.
According to the prediction of the Metallurgical Industry Planning and Research Institute, China's steel demand in 2024 is expected to be 875 million tons, a decrease of 1.7% compared to the previous year. Despite the slight downward adjustment in overall demand, the steel demand in downstream steel-using industries such as machinery, automobiles, energy, shipbuilding, and home appliances is showing a growing trend. Furthermore, in October 2024, the national crude steel production reached 81.88 million tons, an increase of 2.9% compared to the same period last year; pig iron production was 70.26 million tons, up 1.4% year-on-year; and steel production was 119.41 million tons, up 3.5% year-on-year. Overall, the total demand in the steel industry is expected to gradually stabilize. Meanwhile, under the regulation of the flat control policy, steel supply tends to be tight, and industrial concentration continues to increase
With the continuous advancement of various policies and the sustained efforts of the industry itself, China's steel industry is expected to embark on a more stable and sustainable development path.
