The China Iron and Steel Industry Association (CISA) reported on Wednesday that China's steel industry has been enhancing the optimization of its steel variety structure in alignment with national industrial structure adjustments and optimizations.

Despite facing challenges such as market supply and demand imbalances, declining steel prices, high raw material costs, and low economic efficiency, the steel sector has maintained generally stable production and operations since the beginning of the year, according to Yao Lin, head of CISA, who spoke at a CISA council meeting.

Data from the first half of this year indicated a year-on-year decrease in the output of steel primarily used in construction, bridges, and machinery. However, the output in sectors such as auto and ship manufacturing showed continued growth. Yao emphasized that the transformation and upgrading of the steel industry have been advancing steadily, with an optimized variety structure effectively meeting higher downstream industry demands.

The steel industry's green transformation and intelligent manufacturing have also progressed significantly. Currently, 79.6 percent of enterprises use industrial internet technology to achieve smart production process control.

Yao highlighted that the manufacturing industry will be a key driving force for the steel sector. The rapid development of new energy vehicles, increased orders for new energy-powered ships, and the accelerated renewal of old ships are expected to support steel demand. Additionally, large-scale equipment renewal will provide development opportunities for the equipment manufacturing industry.