News

News Center

Core Drivers for Selecting Chinese Steel in the Global Context

2025-07-04 4

As the cornerstone of modern industry, steel plays an irreplaceable role in global infrastructure, manufacturing, and energy sectors. Amid increasingly complex international supply chains, Chinese steel emerges as a strategic global procurement choice through three fundamental advantages:

 

I. Economies of Scale Reshape Cost Structures

 China commands 53% of global crude steel capacity, operating a production system exceeding 1 billion tons. This scale translates into significant pricing advantages: in 2024, Chinese hot-rolled coil FOB prices were $120-150/ton lower than European/American equivalents. For developing nations' infrastructure projects, Chinese steel reduces total construction costs by 18%-22%, particularly evident in ASEAN transportation projects under the RCEP framework.


 


II. Technological Adaptation Fuels Industrial Advancement

 • High-end manufacturing breakthroughs: 0.15mm ultra-thin precision strip steel technology ends international monopolies, enabling precision equipment production

 • Extreme-environment applications: -196°C cryogenic nickel steel certified by global energy giants, becoming the primary choice for LNG storage tanks

 • Lightweight revolution: 2000MPa-grade high-strength steel constitutes 67% of global NEV structural components

 

III. Green Transition Leads Sustainable Development

 China's steel industry accelerates low-carbon transformation:

•EAF (electric arc furnace) share rising to 25% (35% target by 2025)

•48% reduction in carbon emissions per unit product since 2000

•Full EPD (Environmental Product Declaration) coverage for exports under EU's CBAM mechanism

 

IV. Supply Chain Resilience Ensures Global Delivery

 Digitally reengineered supply chains deliver unique strengths:

1. Blockchain traceability systems guarantee material provenance

2. AI-powered logistics achieve 12-day delivery cycles to major global ports

3. 92.6% on-time export delivery rate maintained during pandemic disruptions


 


Risk Mitigation Mechanisms

 • Trade barrier avoidance via Southeast Asian production bases

 • Quality systems certified to 11 international standards including ISO/TS 4949

 • 89% product coverage under BS EN 1090 (UK) and AISC (US) certifications

 

Future Value Anchors

 Continuous evolution generates multidimensional value: hydrogen metallurgy pilot projects achieving 40% emission reductions elevate procurement beyond cost considerations. RCEP's zero-tariff provisions further unlock cost-saving potential. Choosing Chinese steel fundamentally means embracing the world's most efficient and innovation-driven industrial materials ecosystem.