Posted on 21 Apr 2022
Following Beijing's call for another on-year curtailment in China's crude steel output this year, the China Iron & Steel Association (CISA) is imploring the country's steel mills to appreciate the extreme importance of the reduction directive, according to an association release posted on its official WeChat account late on April 19.
In its announcement regarding the output cut made on Tuesday morning, China's National Development and Reform Commission had said that CISA will cooperate with the efforts to cut crude steel output, and to strengthen the steel industry's self-discipline.
"In the current environment, the main task of the domestic steel sector is how to maintain a balance between supply and demand amid the limited demand in the market," CISA noted in the post. It explained that "a new balance of supply and demand will be established through the timely adjustment of steel production."
CISA said the steel industry is fully capable of achieving the goal of ensuring supply and stabilizing price, but it cautioned "the core problem lies in completing the mission of guaranteeing supply at the minimum cost, under the constraints of limited resources, energy and ecological environment."
Chinese steelmakers will work hard on improving the quality and variety of their steel products, CISA said, adding that "it is unwise to export low-end steel products on a large scale (so) these should be restricted moderately instead. It is essential to connect the exporters and producers (of such products) with relevant supervision departments and institutions," CISA maintained.
Apart from limiting the volumes of low-end products being exported, the steel industry should continue to encourage the export of high-tech and high value-added products and to expand and deepen the cooperation with the most advanced downstream enterprises worldwide, the association pointed out.
CISA also said that steel producing enterprises should make great efforts to save energy and protect the environment, improving the level of cleaner production, and speeding up the overhaul and upgrade of facilities to meet 'ultra-low' emission requirements.
In addition, the authenticity of the data regarding production, quality, energy consumption, and environmental stewardship in the steel industry must be ensured, and falsification of statistics will be strictly investigated and dealt with, CISA warned.
Source:Mysteel Global
