Building upon the momentum of corporate capacity expansion and technological breakthroughs in 2025, the stainless steel industry is entering a new phase of qualitative transformation and upgrading. Over the next five years, three major trends will collectively define the industry's new development trajectory and propel market scale towards the trillion-yuan threshold: green manufacturing scaling up from pilot projects, accelerated substitution of imported high-end materials, and the reshaping of global dynamics through strategic competition.Green and low-carbon practices are becoming core industrial competitiveness, with zero-carbon technologies achieving comprehensive implementation. Following the commencement of Dongfang Special Steel's all-green electricity project, technologies such as full-oxygen combustion and hydrogen-based smelting are accelerating adoption. A hot-rolling line designed by MCC Huatian reduced natural gas consumption by 8Nm³/tonne of steel through full-oxygen combustion technology, while also eliminating the need for denitrification equipment. By 2028, hydrogen-based smelting demonstration projects are projected to enter commercial operation, with leading enterprises reducing carbon emissions by a further 15% compared to 2025 levels. Concurrently, breakthroughs in energy efficiency within powder metallurgy have been achieved: the GUANDN process, through intelligent temperature control and waste heat recovery, reduces sintering energy consumption by 30% and is already in mass application within automotive component manufacturers. At the policy level, driven by the dual-carbon strategy, environmental investment will rise from 3.8% to 6% of total expenditure, with green factory certification becoming essential for accessing premium markets.The product mix continues to upgrade, with domestic substitution advancing significantly. The share of 300-series stainless steel will increase from 35% to 45%, while demand for high-end grades like 316L surges in the new energy sector, with 2024 production already up 12% year-on-year. Specialty steels emerge as new growth drivers: dual-phase steel sees 8.7% annual growth in hydrogen storage and transport applications, while nuclear-grade stainless steel production lines fill domestic gaps. Upon commissioning, Dongfang Special Steel's project will achieve 50% penetration in high-end products. Technological breakthroughs focus on extreme performance: TISCO's 0.1mm ultra-thin strip meets semiconductor requirements, while Dongfang Special Steel will produce the world's thinnest hot-rolled strip at 1.85mm, driving import substitution for high-end products from 20% to 40%.Global restructuring reveals market competition characterised by ‘concentration + differentiation’. Domestic CR5 concentration will exceed 60%, with giants like Baowu and Tsingshan consolidating high-end capacity through mergers. Facing trade barriers, enterprises accelerate overseas plant construction: Shagang establishes production bases in Russia and Brazil to circumvent European and American tariff restrictions. Emerging markets emerge as growth engines. Driven by Belt and Road infrastructure projects, Southeast Asia and Central/Eastern Europe see stainless steel demand grow at 6.5% annually, with Asia-Pacific's market share reaching 52% by 2030. Concurrently, SMEs pivot towards niche segments, establishing differentiated advantages in areas like cutlery-grade stainless steel and precision strip products.Raw material security and technological innovation remain critical challenges. Nickel prices may stabilise and rebound, driven by demand for new energy batteries, necessitating enterprises to secure over 30% of raw material supply through long-term agreements. Over the next five years, RMB 200 billion in capital will flow into high-end R&D, focusing on breakthroughs in specialised properties such as hydrogen embrittlement resistance and lightweighting.The industry is transitioning from scale expansion to quality-driven competition, with green technologies and premium products emerging as pivotal breakthroughs. As zero-carbon factories become widespread and domestic substitution deepens, Chinese stainless steel enterprises will occupy a more central position within the global industrial chain, crafting new growth narratives amid the new energy revolution and manufacturing upgrades.