In addition, challenges like a limited supply of thin gauge non-oriented silicon steel, especially 0.1-millimeter products, and stricter industrial motor efficiency standards highlight the need for continuous innovation in premium steel production, he added.

"In the current market environment, a company's competitiveness in the silicon steel sector will hinge on its product portfolio, manufacturing excellence, service capabilities, and research and development strength," said the company executive.

He added that looking ahead, the company will focus on enhancing its manufacturing excellence and service capabilities to better meet customer needs while strengthening its capacity for continuous research and innovation.

In addition to structural adjustments, green development is an indispensable element of sustainable growth for the steel industry, experts said.

On Nov 15, during COP29, the Policy Research Center for Environment and Economy, the Ministry of Ecology and Environment, in collaboration with Greenpeace — an international environmental organization — unveiled a report on the green and low-carbon transformation of high-carbon industries in the steel sector.

The report recommends that financial institutions expand their range of green transition financing tools and enhance financial support for the steel industry's green and low-carbon transformation.

The report also suggests that steel companies should seize the opportunities and challenges presented by the green and low-carbon transition, setting scientifically sound and reasonable low-carbon transformation goals, establishing clear and measurable carbon reduction targets and strengthening the planning and design of projects related to energy-saving and carbon-reducing technological upgrades.

The World Steel Association estimates that approximately 650 million tons of scrap steel are consumed globally each year, which helps reduce carbon dioxide emissions by around 975 million tons annually and significantly lowers the use of other natural resources, such as iron ore, coal and limestone, along with the associated production emissions.

Jiang said that China's steel industry has made continuous progress in advancing ultralow emission transformation projects and achieving extreme energy efficiency, with ongoing improvements in energy-saving and environmental protection indicators.

Shougang Group has taken the lead in achieving ultralow emissions across all processes, becoming the world's first company to reach full-process ultralow emissions. Since 2019, it has consistently been recognized as an A-level enterprise for environmental performance.

The company's self-designed and developed biomass charcoal and canister injection system has successfully completed a large-scale industrial trial of biomass-enriched hydrogen micro powder injections, marking China's first breakthrough in the use of biomass energy in steel metallurgy.

In addition, Shougang Group partnered with world-renowned metallurgical technology and equipment supplier Danieli Group to develop a near-zero carbon emission high-quality steel project, said Enterprise Observer, a weekly newspaper affiliated with the State-owned Assets Supervision and Administration Commission of the State Council.

Once completed, this project will feature the world's first production line with flexible coupling between an electric arc furnace and a converter, as well as the world's first electric arc furnace line for producing high-quality automotive steel and high-grade non-oriented silicon steel.

The green development of China's steel industry not only contributes to the country's environmental protection efforts, but also has the potential to support global environmental sustainability, said experts.

China remains the world's largest steel market, with annual consumption exceeding 800 million tons, and the manufacturing sector is emerging as a key driver for growth as the industry undergoes structural improvements, said CISA.

"China may not have been the first to focus on the green development of the steel industry, but its large industrial scale and vast market — or perhaps more accurately, its numerous application scenarios — make its efforts highly significant," said Xu Xiangchun, information director and analyst at iron and steel consultancy Mysteel.

Xu said that if China were to develop new technologies, the costs of research and development will be quickly offset once the technology is put into use, which is one of its major advantages.

Awareness of carbon reduction in China's steel industry is growing stronger, and companies are continuously exploring new paths, such as energy conservation, increasing the use of scrap steel, and adopting clean energy to transform the smelting industry, he said.

"In the future, China's steel industry has the capacity to lead global efforts in reducing carbon emissions, and this role will become increasingly evident in the years to come," Xu said.