The Only Way To Break Through The Steel Plate Industry

- Jan 17, 2019-

2015 domestic spring steel plate industry market can be summed up with a simple situation: as a leading enterprise in the domestic steel industry, Baosteel, like other steel counterparts, has suffered from the double pressure of high spring steel plate costs and slowing downstream demand growth in recent years.

Lejiang, chairman of Baosteel Group, believes that after more than 10 consecutive years of rapid development, micro-profit management is inevitable and must bear in the process of upgrading China's iron and steel industry, but for Baosteel and other iron and steel enterprises, opportunities and challenges coexist.

First Financial daily: What is the biggest pressure that Baosteel and its industry are currently experiencing?

Lejiang: The financial crisis is changing the growth structure of the global economy, major developed countries have put forward to revitalize manufacturing and expand export policies, China's manufacturing industry is facing the squeeze of developed countries and emerging economies to catch up with the double pressure, which put forward more urgent requirements for the transformation and upgrading of domestic enterprises. After nearly 10 years of rapid development in the steel industry, the relationship between supply and demand has been reversed, has stepped into the inflection point from "short supply" to "oversupply".

On the one hand, overcapacity is still intensifying, on the one hand, demand growth slowed significantly, China's steel industry's scale expansion is nearing the end. China's steel industry, has come to a crossroads of development, if not in time to change the way of development, then the steel industry, this "hidden pain", is likely to become a downstream industry and even the development of the entire national economy a bottleneck, which is the iron and steel industry "can not bear the weight." However, it should also be noted that China's urbanization rate and developed countries have a big gap. In order to realize the great rejuvenation of the Chinese nation and the goal of "two hundred years", the demand for steel will be an ongoing process. Therefore, we still have reason to believe that there is still great potential for the development of China's iron and steel industry, for which we must be confident.

First Financial daily: In this context, the domestic spring steel plate industry How to break through?

Lejiang: In order for the steel industry to get out of its current predicament, it must closely follow the upgrading of the country's industrial structure, especially the direction of upgrading and shifting the downstream manufacturing industry, in the context of the economic operation of changing the mode of growth. This puts forward higher and newer requirements for the 10# steel plate industry in variety, quality, performance, response speed and service support.

Iron and steel enterprises must take the initiative to change the original development model that relies solely on factor input in pursuit of scale expansion, and turn to the development mode driven by innovation, so as to realize the transformation of China's iron and steel industry from big to strong. Innovation-driven transformation and development is the only way for the domestic steel industry to break through. If iron and steel enterprises do not innovate, in the future market competition will certainly have enterprises eliminated. Innovation drives, not just technological innovation. For the steel industry, the future should focus more on business model innovation, management innovation and institutional innovation. For state-owned iron and steel enterprises, the mechanism system innovation is a long way to go. A typical contradiction is that while China's steelmakers account for more than half of the top 10 of the world's largest steelmakers, none of China's big steelmakers, including Baosteel, can be called "multinationals", and one of the fundamental reasons for the internationalization of China's spring steel plate industry is the lack of experience and ability to navigate international market operations , The core is the lack of management innovation ability. In addition, China's steel industry contributes about 45% of the world's production, but there are few breakthrough technological innovations that affect the direction of the development of the Chinese steel industry, which is a typical symptom of China's steel tycoon and not strong. Therefore, the 2015 spring steel plate industry The only way to break through: only technological innovation, is the development of China's iron and steel industry free from resources and environmental constraints of the new pivot.