Revitalizing the Steel Industry: A Strategic Work Plan for 2025-2026

Summary

• The Ministry of Industry and Information Technology has launched a comprehensive plan to enhance the steel industry, aiming for an annual growth of 4% by 2026.
• Key measures include industry management enhancement, investment expansion, technology innovation, and sustainable development.
• The focus on digital transformation and environmental standards is critical as the sector faces declining demand and rising operational pressures.

The steel industry, a cornerstone of the national economy, faces significant challenges as it navigates an evolving market landscape. In response, the Ministry of Industry and Information Technology, in collaboration with several governmental departments, has rolled out a robust "Work Plan for Steel Industry Stabilization Growth (2025-2026)." This initiative aims to stabilize and revitalize the sector, promoting sustainable growth while addressing environmental concerns.

Objectives of the Work Plan

The Work Plan sets ambitious targets for the steel industry, primarily focusing on achieving an approximate annual growth rate of 4% by 2026. The overarching goals include:

• Economic Stability: Improving economic benefits while balancing market supply and demand.
• Industrial Optimization: Enhancing industrial structures for improved efficiency and competitiveness.
• Sustainability Focus: Encouraging green and low-carbon technologies to reduce the environmental impact of steel production.

Key Measures for Achieving Growth

1. Strengthening Industry Management

   • The Work Plan emphasizes controlling production capacities by addressing outdated and inefficient operations. This includes the phased reduction of underperforming facilities, allowing more competitive enterprises to thrive.

2. Promoting Technological Innovation

   • A commitment to fostering a culture of innovation is essential. Enhanced capabilities for high-end products and upgrading bulk production quality are pivotal. This includes boosting the resilience of supply chains through advanced technologies.

3. Expanding Investment

   • The plan advocates for accelerating investments in process equipment upgrades and digital transformations. This entails adopting cutting-edge technologies like electric furnaces and smart manufacturing processes, aiming to advance the entire industry towards modernization.

4. Stimulating Market Demand

   • To enhance consumption, initiatives will focus on increasing the use of steel in construction, transportation, and other infrastructure projects, thereby unlocking further potential within these sectors.
5. Encouraging Open Cooperation
   • The Work Plan stresses the importance of stabilizing foreign trade markets and elevating international development levels, enabling the industry to expand its global footprint.

Emphasis on Digital Transformation

A significant aspect of the Work Plan is the directive to implement "Implementation Guidelines for Digital Transformation of the Steel Industry." This will involve:

• Formulating evaluation standards for digital transformation.
• Promoting the establishment of data resource nodes among enterprises and research institutions.
• Facilitating the adoption of artificial intelligence in operational processes, which will drive improvements in efficiency and productivity.

Addressing Industry Challenges

Despite its potential, the steel industry currently grapples with several critical issues:

• Declining Demand: A notable drop in demand for traditional steel products, particularly in real estate, has made recovery challenging. While sectors like automotive and shipbuilding show promise, they cannot fully compensate for the downturn in construction-related demand.

• Profitability Pressures: The steel sector has endured low profit margins in recent years. In 2024, profits saw a drastic decline, highlighting the need for strategic measures to enhance profitability and operational stability.

• Environmental Compliance: With tightening regulations on emissions, there is an urgent need for a transition to greener practices. The Work Plan stipulates that over 80% of steel production capacity must achieve ultra-low emission standards by 2025, underscoring the commitment to sustainability.

Conclusion

The "Work Plan for Steel Industry Stabilization Growth (2025-2026)" marks a significant step in addressing the complexities faced by the steel manufacturing sector. By focusing on comprehensive strategies that integrate management improvements, technological advancements, investment incentives, and sustainable practices, the plan aspires to rejuvenate this vital industry. As it stands, the successful implementation of the outlined strategies will be pivotal in navigating current market challenges and fostering a resilient, thriving future for the steel industry.

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