After 40 years of reform and opening up, China's steel industry has achieved great results, but there are still many problems. The most important ones are three.

First, the development of the iron and steel industry did not strictly follow the requirements of ecological and environmental protection. The iron and steel industry pays insufficient attention to the ecological environment in the development process, and it is still in the periphery of large and medium-sized cities. It is still embarking on the road of pollution control after the industrialization process of developed countries.

Second, the iron and steel industry only considered short-term supply and demand effects in the early stage of development, and did not consider rational layout. Due to the large-scale capital construction of cities such as Beijing and Shanghai at that time, China has a large number of steel plants in Hebei and Jiangsu.

Third, China's steel industry is facing the problem of process re-engineering. “Now China's steel industry has a long process of nearly 90%, while the US and EU short processes have accounted for more than 40%. The main process for producing ordinary steel in the United States is to smelt with scrap short-circuit electric arc furnace, refining outside the furnace and then rolling.

If the process of re-engineering the steel industry in China is successful, on the one hand, it can reduce the dependence on foreign iron ore pairs, on the other hand, it can greatly reduce emissions, in line with the requirements of green development. Smelting in a short process can also be used to peak the peak, solve the peak and valley problems of energy supply, solve environmental problems, and reduce energy consumption.

Under the current state of the art, if the company has its own power plant, the long-flow production of 1 ton of finished steel consumes about 700 kilograms of standard coal, while the short process requires only about 60%. Second, due to the reengineering of the process, many new industries will be produced, such as scrap recycling and processing.