Market Overview - The Shanghai Composite Index fell by 0.12% on September 12, with 9 out of the 28 sectors rising, led by non-ferrous metals and real estate, which increased by 1.96% and 1.51% respectively [1] - The steel industry ranked third in terms of daily gains, rising by 1.41% [2] Fund Flow Analysis - The main funds in the two markets experienced a net outflow of 53.64 billion yuan, with 6 sectors seeing net inflows, primarily in the non-ferrous metals sector, which had a net inflow of 2.168 billion yuan [1] - The non-bank financial sector had the largest net outflow, totaling 8.138 billion yuan, followed by the electronics sector with a net outflow of 7.517 billion yuan [1] Steel Industry Performance - The steel industry saw a net inflow of 214 million yuan, with 33 out of 44 stocks in the sector rising, including one stock hitting the daily limit [2] - The top three stocks with the highest net inflow in the steel sector were Hualing Steel with 180 million yuan, followed by Bayi Steel with 171 million yuan, and Tai Steel with 60.46 million yuan [2] Individual Stock Performance - The top performers in the steel sector included Hualing Steel, which rose by 5.42%, and Bayi Steel, which increased by 10.02% [2][3] - The stocks with the largest net outflows included Baosteel with a net outflow of 209 million yuan, Hangang with 85.26 million yuan, and Baogang with 62.14 million yuan [2][3]

| 025-09-12 | 室销股份 | 600019 7.03 | 1827.8 260 | 华泰证券股份有限 A BOOK CONSTITUTION OF THE COLLECTION COLLEGION COLLEGION COLLECTION COLLEGION COLLEGION CONTRACTOR COLLEGION CONTRACT COLLEGION CONTRACT COLLECTION CONTRACT CARDED TO CONTRA | 华泰证券股份有限 company comes comments on the case in | ga | | --- | --- | --- | --- | --- | --- | --- | | 交易日期 | 证券商除 | 蓬券代码。 | 成交价(元) 成交金额[万元] 咸交量(*) 莫入营业部 | 公司广州珠江西路 | 美出营业部 公司广州珠江西路 | 是否为专场 | 9月12日，宝钢股份大宗交易成交260万股，成交额1827.8万元，占当日总成交额的1.37%，成交价7.03 元，较市场收盘价7.03元持平。 ...

Group 1 - Baosteel Co., Ltd. executed a block trade on September 11, with a transaction volume of 2 million shares and a transaction amount of 14.12 million yuan, at a price of 7.06 yuan per share [2] - The buyer and seller of the block trade were both from Huatai Securities Co., Ltd., Guangzhou Zhujiang West Road Securities Branch [2] - Over the past three months, Baosteel Co., Ltd. has recorded a total of 5 block trades, with a cumulative transaction amount of 62.77 million yuan [2] Group 2 - On the same day, Baosteel Co., Ltd. closed at 7.06 yuan, reflecting an increase of 1.73%, with a daily turnover rate of 0.44% and a total transaction amount of 666 million yuan [2] - The net outflow of main funds for the day was 8.08 million yuan, while the stock has seen a cumulative increase of 0.28% over the past five days, with a total net outflow of 5.77 million yuan [2] - The latest margin financing balance for Baosteel Co., Ltd. is 1.253 billion yuan, which has increased by 35.48 million yuan over the past five days, representing a growth rate of 2.91% [2]

Summary of Conference Call on China Steel Industry Industry Overview - The conference call primarily discusses the **China Steel Industry** and its current dynamics, particularly focusing on supply-side reforms and market conditions for steel production and consumption. Key Points and Arguments Supply Discipline and Production Cuts - Steel supply discipline year-to-date (YTD) is estimated to be behind previous forecasts, with a projected **5%** supply cut for the full year 2025 [1] - A meaningful supply cut is expected in **4Q25**, driven by seasonal factors and rising raw material costs, which may pressure gross profit per ton (GP/t) [3][15] - The anticipated supply-side reform is lagging behind expectations in terms of timeline and execution, with **15 million tons** of crude steel cuts reported in the first seven months of 2025 [2][11] Export Resilience - Steel exports have exceeded expectations, with a projected **70 million tons** for FY25, despite rising anti-dumping measures and geopolitical risks [2][16] - As of July 2025, net steel exports reached approximately **67 million tons**, marking a **12.6%** year-over-year increase [17] - Export dynamics have shifted, with notable increases in shipments to the Middle East and South America, while exports to Vietnam and South Korea have decreased due to tariff risks [22] Apparent Consumption Trends - Apparent consumption is largely in line with forecasts, showing a decline of approximately **2.3%** year-over-year when excluding crude steel production impacts [26] - Construction demand remains weak, with new property starts down **19%** year-over-year, contributing to the overall decline in steel consumption [26] Anti-Involution Efforts - The concept of "anti-involution" in the steel sector is highlighted as a long-term challenge, focusing on improving quality and environmental standards rather than merely cutting supply [3][31] - The Ministry of Industry and Information Technology (MIIT) has introduced new normative conditions for the steel industry, emphasizing high-end product mixes and ultra-low carbon emissions [32] Company-Specific Insights - **Angang Steel (000898.SZ)** is identified as a strong investment opportunity due to its valuation and potential for profit margin improvement as supply cuts take effect [53] - Despite narrowing losses in 1H25, Angang's results fell short of initial forecasts, prompting a revision of earnings estimates for 2025 [54] - The target price for Angang Steel is maintained at **Rmb 3.00** per share, reflecting a price-to-book (P/B) ratio of **0.6x** [55] Market Outlook - The overall sentiment indicates cautious optimism regarding the steel market, with expectations of improved margins and ASP (average selling price) in the long term due to supply-side reforms and anti-involution measures [54][59] Additional Important Content - The call emphasizes the need for sustained government efforts to enforce supply cuts, which may be challenging as margins recover [3][31] - The discussion includes detailed data on production capacity, utilization rates, and historical performance metrics for the steel industry, providing a comprehensive view of market dynamics [34][36] This summary encapsulates the critical insights from the conference call, focusing on the current state and future outlook of the China steel industry, along with specific company analyses.

Market Performance - On September 11, the general steel sector rose by 1.15%, with Wujin Stainless Steel leading the gains [1] - The Shanghai Composite Index closed at 3875.31, up 1.65%, while the Shenzhen Component Index closed at 12979.89, up 3.36% [1] Individual Stock Performance - Wujin Stainless Steel (603878) closed at 7.05, with a gain of 7.63% and a trading volume of 683,900 shares, amounting to a transaction value of 472 million yuan [1] - Shougang Co. (000959) closed at 4.22, up 2.43%, with a trading volume of 364,500 shares and a transaction value of 152 million yuan [1] - Baotou Steel (600010) closed at 2.48, up 2.06%, with a trading volume of 9,690,400 shares and a transaction value of 2.377 billion yuan [1] - Other notable performances include Baosteel (600019) at 7.06 (+1.73%), and Maanshan Steel (600808) at 3.64 (+1.39%) [1] Capital Flow Analysis - The steel sector saw a net inflow of 106 million yuan from institutional investors, while retail investors experienced a net inflow of approximately 89.64 million yuan [2] - Notably, Wujin Stainless Steel had a net inflow of 4.02 million yuan from institutional investors, while retail investors saw a net outflow of 10.98 million yuan [3] - Baotou Steel had a significant net inflow of 103 million yuan from institutional investors, indicating strong institutional interest [3]

Core Insights - Shanghai has engaged in green electricity cooperation with 16 provinces, conducting over 180 inter-provincial green electricity transactions since 2025, with a total transaction volume of 7.6 billion kilowatt-hours, accounting for 90% of Shanghai's total green electricity consumption of 8.39 billion kilowatt-hours [3] - High green electricity consumption enterprises face challenges regarding cost and availability, necessitating a comprehensive approach to green electricity purchasing strategies alongside carbon reduction goals [3] - The demand for green electricity is rising among major consumers, leading to a supply-demand imbalance in Shanghai [3] Group 1: Green Electricity Consumption Trends - The top 100 enterprises in China for green electricity consumption are primarily from energy-intensive industries, with Baowu Steel, JinkoSolar, and Covestro leading the list [4] - Baowu Steel's green electricity trading volume has increased annually, with approximately 1.132 billion kilowatt-hours in 2022, 2 billion kilowatt-hours in 2023, and projected 2.2 billion kilowatt-hours in 2024 [4] Group 2: Corporate Strategies for Green Electricity - Covestro aims for net-zero emissions by 2035, with green electricity being crucial for this goal, despite a slight decrease in green electricity usage ratio at its Shanghai facility [6][10] - Covestro's Shanghai facility consumed around 1 billion kilowatt-hours annually, with green electricity usage exceeding 40% in 2023 but dropping to 31% in 2024 [6] - To ensure stable green electricity supply, Covestro is diversifying its procurement strategies, including engaging with various power companies and participating in different types of green electricity transactions [7] Group 3: Energy Efficiency and Renewable Energy Integration - Companies are encouraged to enhance energy efficiency and integrate renewable energy sources, such as solar power, to increase green electricity usage [8][10] - Covestro has implemented digital transformation to optimize energy use and reduce carbon emissions, achieving stable energy consumption while increasing production capacity [9] - The construction of self-owned solar power facilities is a strategy to gradually increase green electricity usage, with Baowu Steel planning significant solar projects [10] Group 4: Market Dynamics and Policy Support - Shanghai is actively working to meet the growing demand for green electricity by introducing external resources and expanding local resources, with plans for significant renewable energy projects [14] - The city aims to achieve a solar power installation capacity of 10 million kilowatts by 2030, currently reaching 5.5 million kilowatts [14] - Innovative applications, such as integrating solar power with industrial development and urban ecology, are being promoted to enhance local green electricity supply [14]

Group 1 - Baosteel Co., Ltd. executed a block trade on September 10, with a transaction volume of 2.4 million shares and a transaction amount of 16.656 million yuan, at a price of 6.94 yuan per share [2] - The buyer and seller of the block trade were both from Huatai Securities Co., Ltd., Guangzhou Zhujiang West Road Securities Branch [2] - In the last three months, Baosteel Co., Ltd. has had a total of four block trades, with a cumulative transaction amount of 48.6455 million yuan [2] Group 2 - On September 10, Baosteel Co., Ltd. closed at 6.94 yuan, down 1.84%, with a daily turnover rate of 0.43% and a total transaction amount of 646 million yuan [2] - The net inflow of main funds for the day was 27.474 million yuan, while the stock has seen a cumulative decline of 2.66% over the past five days, with a total net inflow of 4.449 million yuan [2] - The latest margin financing balance for Baosteel Co., Ltd. is 1.212 billion yuan, which has decreased by 96.0579 million yuan over the past five days, representing a decline of 7.34% [2]

Group 1 - Dematech won a 900 million yuan overseas smart logistics project from a well-known e-commerce giant in Latin America, focusing on intelligent logistics cross-belt sorting systems and related services [1] - Kang En Bei received approval for the registration of short-term financing bonds and medium-term notes, with a total registration amount of 1 billion yuan, valid for two years [1][2] - Zhi Xiang Jin Tai's GR1803 injection for systemic lupus erythematosus clinical trial has been approved by the National Medical Products Administration [2] Group 2 - Jin Da Wei's subsidiary received approval for a veterinary drug product, pyridone, valid from September 3, 2025, to September 2, 2030 [4] - Fu Li Wang's subsidiary plans to invest 500 million yuan in a high-end wire material project, focusing on high-strength prestressed steel strands for various applications [5] - He Li Biological's subsidiary's Class III medical device registration application has been accepted, focusing on natural bone repair materials [12] Group 3 - Lin Yang Energy won a 244 million yuan metering equipment project from Southern Power Grid, expected to positively impact its 2025 and 2026 performance [20] - Sanxia Water plans to absorb its wholly-owned subsidiary, Chongqing Changdian United Energy, with all assets and liabilities to be inherited by Sanxia Water [13] - Tian Cheng Technology canceled the use of 91 million yuan of raised funds for permanent working capital, ensuring no impact on the normal operation of investment projects [24] Group 4 - Baosteel received approval to publicly issue bonds totaling 20 billion yuan to professional investors, valid for 24 months [52] - Tian Kang Biological reported a 10.15% year-on-year increase in pig sales in August, with a total of 263,800 pigs sold [53] - Xinjiang Construction won multiple major projects totaling 4.506 billion yuan, including a 2.4 billion yuan photovoltaic hydrogen synthesis project [18]

Group 1 - On September 10, Baosteel Co., Ltd. executed a block trade of 2.4 million shares, with a transaction value of 16.656 million yuan, accounting for 2.51% of the total transaction value for the day [1] - The transaction price was 6.94 yuan, which was in line with the market closing price of 6.94 yuan [1]

Investment Rating - The steel industry is rated positively with a recommendation for leading companies and flexible targets in both the ordinary and special steel sectors [4][4][4]. Core Insights - The steel sector experienced a recovery in profits, with the SW Steel index rising by 3.82% in H1 2025 and 15.62% from July to now, indicating a positive trend in the industry [1][9][11]. - The profitability of the ordinary steel sector saw a significant year-on-year increase of 1831.92% in Q2 2025, while special steel experienced a slight decrease of 2.72% [2][16]. - The report highlights the ongoing optimization of steel production capacity, driven by policies aimed at reducing overcapacity and improving environmental standards [3][4][55]. Summary by Sections Steel Sector Performance - In H1 2025, the steel sector's performance was weaker than the Shanghai Composite Index, but improved significantly from July onwards, aligning closely with the index [11][12]. - The ordinary steel sector showed a 4.47% increase in H1 2025 and a 17.63% increase from July to now, while special steel increased by 5.03% and 10.41% respectively [12][13]. Financial Metrics - The steel sector's total revenue in H1 2025 was 945.53 billion, down 9.16% year-on-year, while net profit increased by 157.66% to 13.14 billion [16][16]. - The gross profit margin improved to 7.47% in Q2 2025, with a net profit margin of 1.89% [19][19]. Investment Recommendations - The report suggests focusing on leading companies in the ordinary steel sector, such as Hualing Steel and Baosteel, which are expected to benefit from policy support and improved profitability [4][4][4]. - For the special steel sector, companies benefiting from downstream demand in automotive and renewable energy sectors are recommended, including Xianglou New Materials and Jiuli Special Materials [4][4][4]. Market Trends - The report notes that manufacturing and direct exports are supporting steel demand, while the construction sector remains weak but shows signs of stabilization [3][4]. - The steel industry is expected to undergo significant capacity optimization, with new regulations promoting high-value, low-carbon production methods [55][55].