Steel industry as the most important basic material, not only plays an important role in supporting to the healthy development of the downstream industry, also for the development of the upstream industry plays a critical role. Both China's economy and the global economy, the steel industry is a barometer of the economy. Since 2008 the world economic crisis, the global economy into a downturn, people judge this downturn will continue, global steel production and consumption industry into a slow growth stage, the pressure of the economic growth in China is very big, will inevitably impact or influence the steel consumption and production in China.
Although now China is the global steel production, consumption, and export center, but our challenge is so big. Steel industry in the future is China's most international competition industry, it is in the country much starker choices-and graver consequences-in planning, also accord with our future trends in this field.
Hunan Shinestar Steel Research Institute believes that China's steel industry overall trend is down, no longer like before good growth trend. Investment growth this year is not large, the main part is imports, but unsustainable.So market for next year should be more cautious. Consumption go down as a whole, despite the volatility, but the overall decline is the same, exports this year as a whole is likely to be lower than last year. Greater than consumption falling down or production changes the whole industrial process in the future, the pressure of environmental protection, labor costs and prices, these aspects will increase, will produce very big effect.
We should see, export and international steel trade friction have space, especially with the rapid economic development of some developing countries, it can't meet the demand of steel in national, Chinese will have market space. More importantly, after the industry into the reducing production development, don't need so many steel enterprises in China, will eliminate some enterprise, the most fundamental is the innovation and development, including business model change, management mode change, also including technical change to improve our competitiveness. It is the trend of the development of our industry. Shinestar has always insisted on technology innovation, its research and development of ERW steel pipe, LSAW steel pipe, SSAW steel pipe, seamless steel pipe, stainless steel pipe and other products is received well evaluation by the industry and the international market.
Another aspect we should pay attention to:the change is to reduce capacity but not cut iron and steel, reducing development is not no development. To further improve the competitiveness of the steel, more emphasis on green environmental protection, to be orderly development. Improve quality, through the standardization enhance competitiveness. Want to differentiation, from manufacturing to service, improve the level of service diversification and internationalization competition.