Henan Jiyuan Iron & Steel (Group) Co., Ltd. said a provincial research delegation led by Li Tao, a counselor of the Henan provincial government, visited the company for a special survey focusing on high-quality development of the private economy and the transformation and upgrading of the steel manufacturing industry.

Li said at a seminar during the visit that divergence within the steel industry is intensifying, with high-quality backbone producers maintaining solid profitability on the back of transformation advantages while traditionally run mills face greater operating pressure.

The sector's shakeout and upgrading pattern has taken shape, making high-quality development the only main line for the industry, according to Li.

He said the industry is still under multiple pressures including capacity regulation, environmental protection and market volatility, and has entered a platform adjustment period. Domestic steel consumption demand is stabilizing, with annual consumption edging down 2-3%, he said.

Growth in steel exports and expanding manufacturing demand for steel have offset the decline in real estate-related steel consumption, keeping the industry generally stable, Li said.

He emphasized that steelmakers must proactively adapt to the development trends of the industry under new circumstances, abandon the habit of relying on policy support and focus on improving quality and efficiency to strengthen their core competitiveness.

Future transformation should target high-end products, industrial upgrading and supply chain modernization, he said, calling for an optimized product mix, higher value-added products, an orderly overseas capacity layout and stronger innovation-driven growth.