Recently, data released by the National Bureau of Statistics showed that China's crude steel output in 2020 was 1.053 billion tons, an increase of 5.2% year-on-year, breaking the 1 billion tons mark for the first time, setting a record high. The output of API 5L X70 seamless pipe and so on steel was 1.325 billion tons, a year-on-year increase of 7.7%.

Since the second quarter of last year, with the resumption of work and production and the steady economic policy, the investment in major projects has been started in succession. The machinery, automobile, household appliances and other downstream industries have recovered rapidly, and the economic indicators closely related to steel consumption have continued to improve, prompting API 5L X70 seamless pipe and so on steel consumption to reach a new high.

On the one hand, API 5L X70 seamless pipe and so on steel production has repeatedly hit new highs. On the other hand, the industry is the largest carbon emission industry among the 31 categories of manufacturing industry. The steel industry will face challenges that cannot be avoided. Recently, the Ministry of Industry and Information Technology stated that it will resolutely reduce steel production in terms of prohibiting new steel production capacity, researching and formulating new capacity replacement methods and project filing guidelines, and promoting industry mergers and reorganizations. While output is shrinking, the market's demand for API 5L X70 seamless pipe and so on steel is still on an upward channel. How to resolve the contradiction between the two will also be a problem that companies and governments must face together.