New CISA chairman targets "high-quality" future for China's steel industry

In a recent interview with China Metallurgical News (CMN), regarded as the voice of the steel association, Yao acknowledged the complexities of the past year but refused to be pessimistic, saying that he saw the hurdles the sector faces as being just the current phase of advancement towards its development goal.

He attributed this positive outlook to the continued improvement in the Chinese economy and positioned the steel industry as a beneficiary of this upward trend. Indeed, despite the industry's operational pressures, Yao believed that proactive measures, positive transformations, and addressing key hindrances will lead to a sounder development this year.

CISA's chairman Yao Lin, source: China Metallurgical News 

Elected on January 12 at CISA's general assembly in Beijing to succeed outgoing chairman Tan Chengxu, Yao expressed optimism for the domestic steel industry in 2024 but also had some cautionary advice.

Identifying a critical issue within the steel industry, Yao emphasized the need to break away from the industry's dependence on scaling up, warning against relying solely on the previous model of scale expansion, citing its unsustainability. According to Yao, such an approach would increase the input of raw material factors, affecting both profit growth and sustainable development. As a major importer of raw materials, China's steel industry needs to diversify its development strategies, he stated.

Yao also suggested that the steel industry should focus on exploring new paths in high-quality development, with a spotlight on technological innovation, low-carbon practices, and intelligent transformation. Given that China's steel industry contributes more than 50% of the world's total steelmaking capacity, Yao believed that leading in these aspects will position the country at the forefront of global steel industry development.

Furthermore, Yao emphasized the importance of building a secure, efficient, mutually beneficial, and sustainable industrial supply chain.  With the industry needing to focus on transitioning away from high growth to an optimization stage, he advocated for "coopetition," where collaboration coexists with competition. This approach seeks to achieve high-quality development steadily during the transformation period, ensuring the industry's long-term sustainability and success, he told CMN.

In addition to becoming head of CISA, Yao is already the chairman of the China Mineral Resources Group, a wholly state-owned company managing domestic mineral resources that was established by the central government in July last year. As the Group's head, Yao had emphasized the need for specific measures to drive innovation, embrace low-carbon practices, and integrate intelligence into the steel sector, CMN noted.

Headquartered in Xiongan New Area in North China's Hebei province, China Mineral Resources aims to guarantee the supply of important mineral resources by taking full advantage of both domestic and overseas markets, as Mysteel Global reported.

Written by Rong Zhang, zhangronga@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com

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