Core Insights - The Yarlung Tsangpo River hydropower project is expected to drive a total demand for special steel in China ranging from 4 million to 6 million tons, which is approximately 1.2% of the national crude steel output in 2024 [1] - High-end special steel will be the main focus for the Yarlung Tsangpo project, with specific demand for high-strength, long-life materials that exhibit properties such as tear resistance, corrosion resistance, and durability against extreme environmental conditions [1][2] Demand Characteristics - The core categories of steel required include medium and thick plates, high-grade silicon steel, stainless steel, and corrosion-resistant high-strength structural steel [1] - The project will require steel that can withstand extreme conditions, such as maintaining high toughness at -40°C and having a corrosion resistance lifespan of over 50 years, which is a 30% improvement over the standards set by the Three Gorges project [1][2] Industry Challenges - The project presents unprecedented challenges to steel performance and supply chains, necessitating breakthroughs in four key areas: environmental adaptability, supply chain and logistics, green low-carbon constraints, and comprehensive upgrades to technical standards [2] - The carbon footprint requirement for structural steel is set to be 35% lower than the industry average, pushing steel companies to accelerate short-process transformations [2] Phased Demand Release - Steel demand will be released in three phases over a ten-year construction period: - Initial phase (2025-2027) focusing on rebar and engineering machinery steel - Mid-phase (2028-2030) where demand for medium and thick plates peaks - Long-term phase (post-2035) driven by the migration of green electricity industries [2] Global Impact - The Yarlung Tsangpo hydropower project is expected to reshape global hydropower steel technology standards and position China's steel industry at the forefront of the global value chain in terms of green low-carbon and high-end manufacturing [2]