The work plan for stabilizing growth in the steel industry has formed efficient policy coordination, accurately matching the core characteristics of concentrated capital demand and large investment in transformation in the industry

1、 Accurately reducing financing costs and enhancing the driving force for enterprise upgrading

As a capital intensive industry, the steel industry generally has a high asset liability ratio, and the demand for funds in areas such as green and low-carbon transformation, production equipment updates, and technology research and development continues to be strong. Its sensitivity to interest rate changes is significantly higher than other industries. The reduction in interest rates for structural monetary policy tools this time will directly lower the comprehensive cost of enterprises obtaining funds through special tools, especially providing effective policy and financial support for enterprises carrying out ultra-low emission transformation, low-carbon process research and development, and digital upgrading.

2、 Continuous optimization of financing environment to ensure the supply of transformation funds

At present, the steel industry has entered a critical period of green and low-carbon transformation. According to relevant plans, more than 80% of production capacity needs to complete ultra-low emission transformation by the end of 2025. In addition, with the full inclusion of the carbon emission trading market in the industry, the pressure on enterprises to invest in environmental upgrades, low-carbon technology research and development, and other aspects will further increase.

The interest rate reduction of the structural monetary policy tool this time will guide financial institutions to increase credit support for key projects in the steel industry through policy guidance. On the one hand, it will alleviate the pain points of difficult and expensive financing for small and medium-sized enterprises. On the other hand, it will provide stable funding for key projects such as industry process upgrading, digital transformation, and low-carbon technology landing, helping the industry efficiently implement the core goal of "expanding effective investment and promoting transformation and upgrading" in the stable growth work plan, and clearing the financial obstacles for the transformation path.