China's steel industry is in a critical phase of "reducing volume while improving quality", and the sector aims to build a globally influential modern steel industrial system by 2030, the China Iron and Steel Association (CISA) said.

Liu Jian, chairman of CISA, made the remarks at the 15th China International Steel Congress on September 20, according to a report by China Metallurgical News.

The 15th "Five-Year Plan" period is a key stage for the steel industry to accelerate the building of a modern industrial system and achieve high-quality development.

Liu said the overall approach for future development centers on high-quality development, deepening supply-side structural reform, pursuing intelligent, green and integrated development, and cultivating new global competitive advantages.

The long-term goal is to build a modern steel industrial system with strong global influence, high industrial independence and significant development contributions by 2030, becoming a backbone of China's manufacturing strength, he said.

Liu noted that domestic steel demand will trend downward with fluctuations over the next decade, remaining above 800 million tonnes during the 15th "Five-Year Plan" period and likely falling below 800 million tonnes by 2035. Based on this outlook, the industry has established a "1231" goal system and a "232" key task framework.

The "1231" framework focuses on one fundamental task — enhancing industrial foundation capabilities and modernizing the industrial chain. It centers on two major themes: green & low-carbon development and intelligent manufacturing. It aims to resolve three pain points: controlling capacity expansion, promoting industrial concentration and ensuring resource security, while to advances the internationalization of the steel industry.

The "232" framework includes two foundational measures — a new capacity governance mechanism and optimized policies for joint restructuring — along with three major projects covering quality and product upgrading, energy and carbon efficiency, and digital-intelligent transformation, plus two industrial programs for iron resource development and expanded steel applications.

Liu further emphasized that five principles will be upheld: combining an effective market with a proactive government, deepening reform with continued innovation, expanding domestic demand with optimizing supply, green development with high-end intelligence, and domestic development with international cooperation.

Quantified targets by 2030 were also specified, including a CR10 industrial concentration ratio of 50%, a 20% share for electric arc furnace steel and the cultivation of more than 50 excellence-level smart factories.