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title: The Great Significance of the Yarlung Zangbo River Project to the Steel Industry
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At the hinterland of the Qinghai-Tibet Plateau, at the great bend of the Yarlung Zangbo River, a super hydropower project called the "Century Project" is拉开帷幕——this is the Yarlung Zangbo River downstream hydropower project (referred to as "Yarlung Project" or "Yaxi Project") with a total investment of 1.2 trillion yuan and a total installed capacity of 55 million to 60 million kilowatts. As the largest hydropower infrastructure project in human history, its annual power generation is expected to reach 200 billion to 300 billion kilowatt-hours, about 3 times that of the Three Gorges Project. This project will not only reshape the national energy pattern and support the "dual carbon" strategy, but also profoundly affect the development trajectory of China's steel industry.

On August 27, 2025, at the 7th China High-Speed Steel Application Technology Forum, Zhao Fazhong, Deputy Secretary-General of China Special Steel Enterprise Association, delivered a report entitled "Yarlung Project and New Opportunities for the Development of the Steel Industry——Analysis of Steel and Special Steel Demand", systematically explaining the historical opportunities and structural challenges that the project brings to the steel industry.

## I. Unprecedented Scale: The Largest Steel Demand in History

It is estimated that the steel consumption for the main construction of the Yarlung Project is expected to reach 4 million to 6 million tons; if supporting power transmission, transportation, resettlement and other projects are included, the total steel consumption may exceed 8 million tons——10 to 13 times that of the Three Gorges Project (590,000 tons). More importantly, this demand is not released in a short period of time, but runs through a construction period of about 15 years, with a stable annual average of 500,000 to 800,000 tons, providing long-term, predictable market support for the steel industry.

From the perspective of product structure, steel demand presents a dual-drive pattern of "conventional-based, special steel-essential":

- Conventional building materials for core projects (2.8 million–3.3 million tons): including rebar, H-beams, I-beams, medium plates, etc., used for dam skeletons, diversion tunnels, construction roads and other infrastructure;
- Special steel for transmission facilities (281,000 tons): such as weather-resistant angle steel, galvanized steel plates, used for UHV towers and substation steel structures;
- Special steel for hydropower units (270,000 tons): covering corrosion-resistant stainless steel such as 06Cr13Ni4Mo, high magnetic induction oriented silicon steel sheets, high-strength structural steel, used for turbine runners, generator stators and rotors and other core components.

It is worth noting that western steel enterprises are expected to become the main suppliers of conventional steel due to their geographical advantages. For example, Baowu Group Bayi Iron and Steel Co., Ltd. has a market share of 85% in the steel market for key projects in Tibet, relying on the Lanxin and Qinghai-Tibet Railways, its transportation costs are 30% lower than that of eastern enterprises, and its "local supply" advantage is significant.

## II. Phased Release: Demand Rhythm Requires Flexible Response

Zhao Fazhong pointed out that the steel demand of the Yarlung Project has distinct phased characteristics, putting forward new requirements for "flexibility" in the production organization and supply chain coordination of steel enterprises:

- Early stage (2025–2027): mainly civil construction, with conventional building materials such as rebar and I-beams accounting for more than 60%; at the same time, it will drive an increase of 12% in steel demand for construction machinery, and orders for plateau tunnel boring equipment will surge.
- Mid-term (2028–2030): entering the peak period of dam pouring and unit manufacturing, the annual demand for medium plates may exceed 5 million tons, silicon steel sheets increase by 150,000 tons per year, and Q500E and other high-strength bridge steel have expanded premium space——this is the "golden window period" for special steel enterprises.
- Later stage (from 2031): focusing on the construction of UHV transmission lines, weather-resistant angle steel, galvanized steel and oriented silicon steel sheets (80,000 tons newly added annually) become the main force, emphasizing "precise docking" and "immediate response".

This "front-heavy, rear-precise, from general to special" demand curve forces steel enterprises to shift from "batch production" to "customization on demand", and upgrade from "product delivery" to "solution provision".

## III. Extreme Environment: Forcing Comprehensive Improvement of Material Performance

The Yarlung Project is located on the Qinghai-Tibet Plateau at an altitude of more than 4,000 meters, facing multiple challenges such as extreme low temperature, strong ultraviolet rays, high-corrosion water quality, active earthquake zones, and limited transportation, putting almost harsh requirements on steel performance:

- Low-temperature toughness: need to meet -40℃ impact energy ≥27J, promoting the application of Ni-Cr-Mo-V microalloying technology;
- UV aging resistance: galvanized layer thickness ≥85μm, supporting new UV-resistant coating system;
- Corrosion resistance: facing high chloride ion, high dissolved oxygen water body, nitrogen-containing duplex stainless steel becomes the key material;
- Seismic and tear resistance: Z-direction steel is needed in geological fault zones, using online quenching + tempering process to improve lamellar tear resistance;
- Lightweight and weldability: limited by plateau transport capacity (only 500 tons per day), requiring higher strength, lighter weight (30% weight reduction), and welding crack sensitivity index Pcm ≤0.30.

Against this background, special steel accounts for as high as 40%, far exceeding conventional large-scale projects. This is not only a test of materials, but also a "pressure test" of China's steel industry's technical capabilities.

## IV. Technological Leadership: From "Following" to "Running Side by Side" or Even "Leading"

The Yarlung Project is becoming a "touchstone" and "accelerator" for domestic high-end steel. A number of landmark achievements have emerged:

- Hunan Iron and Steel Group's HY950CF hydropower steel, with yield strength ≥960MPa, -40℃ impact energy >50J, successfully won 70% of the pressure steel pipe share (about 150,000 tons), achieving a 30% weight reduction;
- Taiyuan Iron and Steel Co., Ltd. overcame the high-altitude welding deposition rate problem, exclusively supplying all 93 turbine runner steels (37,000 tons);
- Baosteel will supply 140,000 tons of high-performance silicon steel, supporting the 233,000-ton generator core demand.

These breakthroughs mark that China's special steel technology has reached the international advanced level and has the ability to independently guarantee national major projects.

## V. Industrial Collaboration: Promoting Green and Intelligent Upgrading of the Whole Chain

Zhao Fazhong emphasized that the Yarlung Project should not only be regarded as a "steel procurement project", but also as a strategic fulcrum to promote the high-quality development of the steel industry. He suggested:

- Western steel enterprises can rely on geographical advantages to expand production capacity of plateau-adapted steel grades and layout electric furnace short-process projects;
- Eastern enterprises can participate in the western supply chain through joint ventures;
- Establish a "Yarlung Project special scrap steel" recycling system, combined with project green power resources, to create a low-carbon cycle demonstration;
- Industry associations take the lead in integrating R&D, production, testing, logistics and other whole-chain resources to provide precise services.

China Special Steel Enterprise Association has listed the Yarlung Project as a top priority, personally deployed by the association's leaders, aiming to gather industry synergy and escort the implementation of national strategies with special steel strength.

## VI. Action Initiative: Steel Enterprises Must Take the Initiative

Facing this once-in-a-lifetime opportunity, Zhao Fazhong issued a call to the entire industry:

- Establish a special working group: set up a "Yarlung Project Steel Leading Group" to systematically plan technology, production capacity and market strategies;
- Deeply connect with owners and contractors: actively contact key units such as China Yarlung Group, China Power Construction, Dongfang Electric, Datang Group, Tibet Tianlu, etc.;
- Strengthen technology R&D: accelerate the development of high-strength, corrosion-resistant, lightweight steel for special working conditions such as plateau, cold, and high corrosion;
- Build an exclusive supply chain: realize the whole process quality traceability and guarantee from iron ore to finished steel;
- Build a brand highland: take the Yarlung Project as a core platform to showcase technical strength, cultivate high-end talents, and establish industry benchmarks.

## Conclusion: Casting the "Steel Backbone", Writing a Hardcore Answer Sheet

"The steel skeleton of the Yarlung Project is waiting for us to improve with more sophisticated technology and protect with a more rigorous attitude." Zhao Fazhong sincerely sent a message at the end of the report.

For the steel industry, the Yarlung Project is not only a huge order list, but also a historic battle related to transformation and upgrading, technological leap and global competitiveness reshaping. Every improvement of steel standards is to build a safe bottom line for the century project; every breakthrough of technical bottlenecks is to inject new kinetic energy into made in China.

On this roof of the world, Chinese steel people will work together to cast the steel backbone of this "super project" with solid products, tough technology and steady action, and write a hardcore answer sheet belonging to China's industry in the new era.