In the past 19th National Congress of the Communist Party of China, General Secretary Xi Jinping’s wonderful exposition on the “extraordinary five years” not only enlightens us, but also allows us to think deeply about what we have done in the past. How can we do better and what to do next.

　　For the steel industry, overcapacity reduction is the top priority, and it is the only way for the steel industry to achieve sound development through structural adjustment, transformation and upgrading. In recent years, combined with economic restructuring and transformation and upgrading, the work of reducing capacity in steel has been steadily advancing in accordance with market-oriented and rule-of-law measures. Up to now, structural reforms on the steel supply side have been advanced for more than two years, and China's steel industry has gradually emerged from the downturn, endogenous motivation has been effectively strengthened, and the reform has achieved remarkable results.

　　In 2016, a total of more than 65 million tons was reduced, which exceeded the goal of resolving 45 million tons of crude steel production capacity in 2016. The target task of reducing 50 million tons in 2017 is expected to exceed this target by the end of the year. Since 2016, the country has reduced crude steel production capacity by more than 115 million tons. With the withdrawal of low-efficiency steel production capacity and backward production capacity, the utilization rate of crude steel production capacity has risen sharply to over 75%, gradually returning to a reasonable range. In 2016, the member companies of the China Iron and Steel Association achieved a profit of 30.4 billion yuan, a year-on-year turnaround and an increase of 108.3 billion yuan. The comprehensive steel price index rose from 56.4 points at the beginning of the year to 99.5 points, an increase of 76.5%; from January to August 2017, China's iron and steel industry The member iron and steel enterprises of the association realized profits of 91.9 billion yuan, an increase of 72.5 billion yuan year-on-year.

　　This year is a year of deepening steel capacity reduction, a year of tackling tough issues, and a year of decisive victory. We must significantly enhance our country's economic quality advantages. How to achieve this, insisting on de-capacity, de-inventory, deleveraging, reducing costs, making up for shortcomings, optimizing the allocation of stock resources, expanding high-quality incremental supply, and achieving a dynamic balance of supply and demand will be the key. Since last year, all relevant parties have worked together to strengthen work measures, and the "two hands" of marketization and legalization have jointly implemented policies and made efforts to promote structural adjustment of steel.

　　It is precisely through the supply-side structural reform that steel capacity reduction has reinvented the industry, allowing the industry and enterprises to truly embark on a path to prosperity and health in the throes. With the joint efforts of all parties, the steel capacity reduction has achieved remarkable results.

　　"In-depth advancement of supply-side reforms, firm confidence in transformation and upgrading, and refinement and strengthening of the main steel business." "Steel, as the foundation of the national economy, will still play an important role in the future."