How can the steel industry reduce excess inventory? The green building integrated industry is set to become a “new growth driver.”

Under downward economic pressure, the steel industry is grappling with insufficient growth momentum and overcapacity. Recently, the Hebei Provincial Government’s Advisory Office established a specialized expert panel to conduct an in-depth study on addressing excess steel capacity. The research report by the task force argues that the “green building integration industry” will serve as a “new engine of growth.” By fostering this sector and introducing “incremental” investment, it can help absorb surplus steel capacity, thus offering a novel approach that uses “addition” to offset “excess” capacity.

“Capacity reduction” ranks among 2016 The top priority for this year’s economic work is to address overcapacity and help the steel industry emerge from its difficulties. Recently, the State Council issued the “Opinions on Resolving Overcapacity and Promoting the Recovery of the Steel Industry,” outlining the overarching requirements, key tasks, and policy measures for reducing excess capacity in the steel sector and facilitating the industry’s turnaround in the period ahead.

Within the steel industry, there is a well-known saying: “The world looks to China for steel, and China looks to Hebei.” As a major steel-producing province, Hebei faces an extremely daunting task in addressing its excess steel production capacity. To tackle this massive overcapacity, Hebei is currently implementing… 6643 “Project,” among which, by 2017 Year, reduction 6000 Ten thousand tons of steel. Meanwhile, Hebei Province is also actively promoting the international expansion of its competitive production capacity. According to available information, the steel production capacity that Hebei has already commissioned overseas or is currently planning to build has reached… 895 Ten thousand tons.

Beyond this, are there any other effective measures to address overcapacity? A research team from the Hebei Provincial Government Counselor’s Office believes that the green‑building integrated industry will serve as a “new driving force” for effectively alleviating excess production capacity.

According to reports, the green building integration industry represents the latest achievement of the global construction sector’s new technological revolution. At present, in China, the floor area of green, low-carbon integrated residential buildings accounts for less than a certain proportion of all building types. 1% , while regions such as Europe and the Middle East have reached 40%-50% , Japan has reached 60%-70% 。

Zhan Wenhong, Party Secretary of the Hebei Provincial Government Counselor’s Office, stated that, in terms of technological pathways, the green building integrated industry is divided into steel structure, PC 、 CL The three major systems, in the context of green‑building integrated‑industry production, each rely predominantly on basic resources such as steel and cement. Advancing the development of the green‑building integrated industry is therefore of significant value in addressing overcapacity in Hebei Province’s traditional industries.

Data show that, at present, steel‑structure buildings account for less than of all buildings in China. 5% , whereas developed countries generally... 50% That concludes the above. The research team points out that if the proportion of steel used in all buildings in China were increased to… 25% , the annual steel structure usage will surge beyond 10 One hundred million tons.

The research team believes that, with the goal of establishing an integrated green‑building industry, it is essential to comprehensively upgrade the structure of the various subsectors within the traditional construction industry. In doing so, related excess capacity in these traditional sectors can be consolidated and absorbed—this approach represents “using… " Addition " To absorb and consume " Margin " “A new pathway for production capacity,” rather than the currently implemented “by” " Subtraction " To absorb and consume " Margin " “The traditional pathway for capacity reduction.” The establishment and implementation of this new approach hold particular significance, both for Hebei Province in absorbing excess capacity in its traditional industries and for the nation as a whole in alleviating overcapacity.