Recently, China's steel industry has entered a critical stage of production reduction and green transformation. Domestic steel consumption has declined for four consecutive years, from a peak of 1.04 billion tons in 2020 to 890 million tons in 2024, an average annual decrease of 3.8%. Estimated consumption for the first three quarters of 2025 is 649 million tons, a year-on-year decrease of 5.7%, and the annual volume will further drop. 

Regarding business models, small and medium-sized steel enterprises are actively pursuing low costs, high quality, and high efficiency. Large mills have voluntarily adjusted their production capacity, effectively maintaining a balance between supply and demand. 

However, the steel industry still faces challenges. Sales during this year's traditional peak season fell short of expectations, and infrastructure investment experienced a negative growth of -4.6%, resulting in an 8.2% month-on-month increase of inventory at major steel mills in early October. 

The steel industry has made significant progress in green and low-carbon transformation. As of the end of October, 219 steel mills in China were estimated to have completed ultra-low emission upgrades, involving approximately 188 million tons of crude steel capacity. Green and low-carbon development has become the core of the steel industry's transformation and an essential path to achieving high-quality development.