Blast furnace a testimony to Baosteel's smart AI use

Core strategy

From a business perspective, the vast majority of steelmakers have already made digital transformation a core corporate strategy.

According to a survey by the China Iron and Steel Association, more than 95 percent of steelmakers have incorporated digital transformation into their overall development plans, reflecting a broad industry consensus on embracing digital technologies represented by AI.

"The steel sector has also stood out in national smart factory evaluations," said Wang Guoqing, director of the Beijing Lange Steel Information Research Center.

"So far, 36 steel plants have been recognized as the nation's excellent level smart factories by the Ministry of Industry and Information Technology, representing the high level of intelligent manufacturing in China."

In addition, among the 151 typical application cases for AI-enabled new industrialization released by the MIIT, 12 came from the steel industry, covering key areas including intelligent analysis, quality inspection and production optimization, Wang said.

"The industry shift toward intelligent manufacturing has also been driven by structural changes in China's steel market. While overall steel output has gradually declined in recent years, demand for high-quality and high value-added steel products has continued to rise, accelerating the transformation of companies such as Baosteel," she said.

China's crude steel output fell from 1.06 billion metric tons in 2020 to 960.81 million tons in 2025, according to official data.

Chen said when Baosteel was established in 1978, it carried the nation's hopes for industrial development. In the new era, the company's transformation has continued to closely align with the pulse of the times.

"Baosteel has made breakthroughs in a number of core steel products, serving both export markets and domestic industrial demand while continuously adapting to changing industrial needs.

"There is a huge sign at the entrance of Baosteel that roughly reads 'History will prove that the establishment of Baosteel was the right decision'," Chen said.

Contact the writers at wang_ying@chinadaily.com.cn