China Special Steel Industry
China is a major producer and consumer of special steel, which is characterized by its higher performance, excellent physical and chemical properties, and higher cost. It is primarily used in transportation, mining, energy, construction, and other strategic fields. Chinese industry has developed a wide range of innovative and specialized steels for a variety of applications. These include rapid crystalline bainitic steel for automotive transmission gears; high-strength and ultra-high-strength dual-phase and martensitic steels for construction and mechanical industry; and austenitic steels for pressure vessels, valves, pipes, and offshore engineering. Chinas steel industry has been through several stages of transformation, from the transition to a market-oriented economy in the late 1990s to the ongoing efforts to increase efficiency and adapt to changing global needs.
In 2014, the Chinese Special Steel Industry (CSSI) produced 32.5 million metric tons of crude steel, accounting for 10.5 percent of the global production. The country is the third largest producer in the world and the largest consumer, accounting for 20 percent of global crude steel consumption. The country also has the highest production capacity with an estimated 2.4 billion tons as of 2015.
At the same time, the steel industry has significantly improved its technological level. Chinese steelmakers have made major advances in rolling, processing, and smelting technologies. Additionally, technological breakthroughs such as Continuously Variable Transmissions (CVTs) for automotive application, direct reduction iron (DRI) steelmaking, and cold rolled-annealed (CRA) steels for shipbuilding have made the Chinese steel industry more efficient, cost effective, and competitive.
In addition to these advancements, the CSSI has implemented a number of initiatives intended to diversify the industry and make it more competitive. The sector has invested heavily in capacity expansion and modernization, including upgrading existing equipment and constructing new rolling mills, continuous casting facilities, and electric arc/induction furnaces. These initiatives have helped reduce production costs and improve efficiency.
The sector has also adopted measures to boost the competitiveness of China’s special steel production by encouraging a move away from standardized and traditional processes. The sector has been actively investing in the development of new technologies, such as advanced high strength steels, continuous casting, and fast hardening steels. These efforts have helped the sector create and export a much wider range of quality-oriented specialty steel products.
In terms of output and capacity, China is the leader in special steel production in the world. Its output of special steel products was estimated at 79.7 million metric tons in 2015, with an approximate share of 58 percent of the total global output. Chinese steelmakers have managed to stay ahead of their competitors in terms of production and capacity due to the adoption of modern technologies, their flexible and efficient production systems, and sophistication in product variety, performance, and quality.
Moreover, the Chinese steel industry has a global presence and is a major international player. It has been actively expanding abroad in various countries, including Africa, the Middle East, Latin America, and the United States. It has taken a very active role in the international steel industry, including raw material supply, high-end product customization, and steel trading.
The sector has taken a number of initiatives to reduce its energy consumption and emissions and to increase efficiency. These include improving energy efficiency of existing technologies, investing in more efficient and cleaner technologies and processes, and implementing energy conservation and industrial upgrading policies. These have had a positive impact on the industry, reducing energy consumption and emissions and increasing efficiency.
Overall, the Chinese special steel industry has made impressive strides in recent years in terms of improving efficiency, production capacity and product quality. With its concerted efforts to diversify into new products, investment abroad, and industry upgrading, this sector has been vital in keeping the nation competitive in the global steel market.
