https://en.people.cn/n3/2026/0429/c90000-20451825.html
China’s steel industry is accelerating its transformation through structural upgrades and the deep integration of artificial intelligence (AI), strengthening its capacity to supply high-end materials for advanced manufacturing.
Electrical steel is a key material for new energy vehicle motors, high-end home appliances, and ultra-high-voltage transformers, said An Dongyang, chief technical expert of the company. Compared to standard 0.25 mm steel, it reduces energy loss by over 30% and significantly improves efficiency, extending vehicle range.
China’s top steel manufacturers are powering major national breakthroughs across key industries. Masteel, a subsidiary of China Baowu Group, produces high-speed railway wheels for the CR450, the world’s fastest bullet train. Pangang Group Company Limited, under Ansteel Group, supplies special blade steel for China’s first homegrown F-class 50MW heavy-duty gas turbine. Nanjing Steel Group provides exclusive steel plates and sections for Adora Magic City, China’s first large domestically built cruise liner.
These developments reflect a broader shift in demand. In 2025, steel used in construction accounted for 49 percent of total demand, down from 58 percent in 2020, while manufacturing’s share rose from 42 percent to 51 percent. For the first time in China’s history, steel demand from manufacturing has surpassed that from construction.
During the 14th Five-Year Plan period (2021-2025), China’s steel self-sufficiency rate remained close to 100 percent, ensuring strong support for the broader economy.
Alongside product upgrading, digital and intelligent technologies are reshaping production processes. AI model now analyze vast historical data along with real-time signals such as furnace sound and gas emissions to precisely control reactions inside the furnace. Steel manufacturer Baosteel uses an AI cloud surface inspection system. It accurately spots 96 percent of critical material flaws, and cuts missed inspections by 35 percent. Today, AI is integrated into every aspect of steel production, manufacturing, and operations, accelerating industry-wide intelligent transformation. Over 95% of major steel enterprises tracked by the China Iron and Steel Association have incorporated digitalization into core strategies, shifting from pilot projects to systematic implementation.
As a pillar industry of the national economy, the steel sector boasts massive data resources and diverse industrial application scenarios, and thus serves as a perfect platform where next-generation AI can make a difference. With large language models permeating production chains, industry-wide intelligent upgrading is expected to accelerate significantly.