Supply Side - As of July 18, 2025, the total output of five major steel products reached 8.6819 million tons, with a week-on-week decrease of 0.52% and a year-on-year decrease of 1.79% [2] - The average daily pig iron output of 247 steel enterprises was 2.4244 million tons, showing a week-on-week increase of 1.10% and a year-on-year increase of 1.16% [2] - The capacity utilization rate of blast furnaces in 247 steel enterprises was 90.89%, with a week-on-week increase of 0.99 percentage points and a year-on-year increase of 1.27 percentage points [2] - The capacity utilization rate of 87 independent electric arc furnace steel mills was 51.79%, with a week-on-week increase of 1.43 percentage points and a year-on-year increase of 6.81 percentage points [2] - The profitability rate of 247 steel mills rose to 60.2%, stimulating some steel mills to resume production [2] Demand Side - As of July 18, 2025, the total consumption of five major steel products was 8.7011 million tons, with a week-on-week decrease of 0.34% and a year-on-year decrease of 3.28% [2] - The daily transaction volume of construction steel by mainstream traders was 94,200 tons, showing a week-on-week decrease of 6.49% and a year-on-year decrease of 10.45% [2] - In June, the total export volume of steel reached 9.678 million tons, with a month-on-month decrease of 8.51% and a year-on-year increase of 10.89% [2] - The cumulative export volume in June was 58.1466 million tons, with a month-on-month increase of 19.97% and a year-on-year increase of 9.22% [2] - Except for rebar, the consumption of other varieties showed a slight increase, driven by improved macro expectations and increased demand in the terminal manufacturing sector [2] Inventory Side - As of July 18, 2025, the total social inventory of five major steel products was 9.2211 million tons, with a week-on-week increase of 0.89% and a year-on-year decrease of 27.80% [3] - The total factory inventory of five major steel products was 4.1555 million tons, with a week-on-week decrease of 2.35% and a year-on-year decrease of 13.43% [3] - The inventory pressure decreased as inventory shifted from steel mills to downstream [3] Cost Side - As of July 18, 2025, the price index for Australian iron ore (62% Fe) at Rizhao Port was 759.4 RMB/wet ton, with a week-on-week increase of 3.29% and a year-on-year decrease of 7.66% [4] - The price for Indian iron ore (61% Fe) at Qingdao Port was 715.4 RMB/wet ton, with a week-on-week increase of 5.14% and a year-on-year decrease of 1.46% [4] - The comprehensive absolute price index for scrap steel was 2,372.81 RMB/ton, with a week-on-week increase of 0.03% and a year-on-year decrease of 14.93% [5] - The comprehensive absolute price index for foundry pig iron was 2,788.8 RMB/ton, with a week-on-week increase of 1.13% and a year-on-year decrease of 16.08% [5] - The price index for low-sulfur coking coal was 1,239.54 RMB/ton, with a week-on-week increase of 6.22% and a year-on-year decrease of 35.22% [5] Price Side - As of July 18, 2025, the Mysteel absolute price index for ordinary steel was 3,462.31 RMB/ton, with a week-on-week increase of 0.99%, a month-on-month increase of 2.91%, and a year-on-year decrease of 8.43% [5] - The Mysteel absolute price index for special steel was 9,317.6 RMB/ton, with a week-on-week increase of 0.05%, a month-on-month decrease of 0.35%, and a year-on-year decrease of 2.73% [5] - The global steel price index was 205.6 points as of July 11, 2025, with a week-on-week increase of 0.59%, a month-on-month increase of 0.54%, and a year-on-year decrease of 0.68% [5] - Steel prices are expected to rise in the off-season due to the anticipated "anti-involution" policy and the rebound in raw material prices [5] Industry News - On July 18, 2025, the State Council Information Office held a press conference to introduce the development of industry and information technology in the first half of 2025, revealing that the Ministry of Industry and Information Technology will implement a new round of growth stabilization plans for ten key industries, including steel, non-ferrous metals, petrochemicals, and building materials [6] - The specific work plans will be released in the near future, focusing on structural adjustments, supply optimization, and the elimination of backward production capacity [6] Investment Suggestions - The anticipated "anti-involution" policy is expected to boost the valuation of the sector [6] - The industry is expected to remain stable supported by the stabilization of real estate and construction, as well as a positive outlook for manufacturing [6] - The industry is likely to see increased concentration, structural adjustments in output, and high-quality product development as part of its transformation [6] - Recommended companies include industry leaders with product structure advantages and scale effects, such as Nanjing Steel (600282.SH), Hualing Steel (000932.SZ), and Baosteel (600019.SH) [6] - Special steel companies with high barriers and high value-added products, such as Jiuli Special Materials (002318.SZ), are also recommended [6]

宝山钢铁股份有限公司 关于第三期限制性股票计划限制性股票 回购注销实施公告 证券代码:600019 证券简称：宝钢股份 公告编号：临 2025-039 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 回购注销原因：因公司 2024 年业绩考核目标未达成，宝山钢 铁股份有限公司（以下简称"宝钢股份"、"公司"）回购注销 第三期 A 股限制性股票计划激励对象已授予未解锁的限制性股 票。 本次注销股份的有关情况 | 回购股份数量 | | 注销股份数量 | | | 注销日期 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 126,559,250 | 股 | 126,559,250 | 股 | 2025 | 年 7 | 月 | 24 | 日 | 一、本次限制性股票回购注销的决策与信息披露 公司于 2025 年 4 月 25 日召开宝钢股份第八届董事会第五十二次 会议，审议通过《关于第三期限制性股票计划回购注销有关事宜的议 案》，同意公司按 ...

中国上海市石门一路 288 号 电子邮件 E-mail: email@fangdalaw.com 兴业太古汇香港兴业中心二座 24 楼 电 话 Tel.: +86-21-2208 1166 邮政编码：200041 传 真 Fax.: +86-21-5298 5599 24/F, HKRI Centre Two HKRI Taikoo Hui 288 Shi Men Yi Road Shanghai, PRC 200041 FANGDA PARTNERS http://www.fangdalaw.com 上海市方达律师事务所 关于宝山钢铁股份有限公司 回购注销第三期 A 股限制性股票计划 部分限制性股票的法律意见书 致：宝山钢铁股份有限公司 上海市方达律师事务所（以下简称"本所"）是具有中华人民共和国境内法律 执业资格的律师事务所。根据宝山钢铁股份有限公司（以下简称"宝钢股份"或"公 司"）与本所签订的法律顾问协议，本所担任宝钢股份第三期 A 股限制性股票计 划项目（以下简称"第三期限制性股票计划"或"本次计划"）的特聘专项法律 顾问，就公司回购注销本次计划项下部分激励对象持有的已获授但尚未解除限售 的限制性股 ...

Investment Rating - The report maintains a "Recommendation" for the steel industry, indicating a positive outlook for investment opportunities [6]. Core Viewpoints - The steel industry is experiencing a warming sentiment combined with cost support, leading to a strong performance in steel prices. The report notes that the prices for five major steel products have shown weekly increases, with rebar prices reaching 3,316 CNY/ton, reflecting a 0.83% increase week-on-week [1][2]. - The Ministry of Industry and Information Technology is set to introduce a work plan aimed at stabilizing growth in key industries, including steel, which is expected to optimize supply structure and eliminate outdated production capacity [3]. - The report suggests that the steel industry is likely to see a long-term recovery in both valuation and performance, driven by improved profitability and a reduction in production capacity in certain regions [4][5]. Summary by Sections 1. Weekly Market Review - As of July 18, 2025, the prices for five major steel products are as follows: rebar at 3,316 CNY/ton, wire rod at 3,629 CNY/ton, hot-rolled coil at 3,345 CNY/ton, cold-rolled coil at 3,775 CNY/ton, and medium plate at 3,425 CNY/ton, with weekly changes of +0.83%, +0.76%, +1.47%, +1.16%, and +0.91% respectively [1][15]. - The total production of the five major products reached 8.6819 million tons, a decrease of 45,300 tons week-on-week [1]. - The average daily molten iron output from 247 steel enterprises was 2.4244 million tons, an increase of 26,300 tons week-on-week, with a blast furnace capacity utilization rate of 90.89%, up by 0.99 percentage points [1][18]. 2. Key Industry Data Tracking (a) Production Data - The report highlights that the production data indicates a slight increase in iron output and a recovery in electric arc furnace operation rates, suggesting a stabilization in the industry despite seasonal demand weakness [2][18]. (b) Consumption Volume of Five Major Steel Products - The total consumption of the five major products was 8.7011 million tons, reflecting a decrease of 29,600 tons week-on-week, with specific changes in consumption for rebar, wire rod, hot-rolled, cold-rolled, and medium plate [1][39]. (c) Inventory Situation - The total steel inventory stood at 13.3766 million tons, a decrease of 19,200 tons week-on-week, with social inventory increasing by 81,000 tons to 9.2211 million tons, while steel mill inventory decreased by 100,200 tons to 4.1555 million tons [1][51]. (d) Profitability Situation - The average molten iron cost for 114 steel mills was reported at 2,256 CNY/ton, remaining stable week-on-week. The gross profit per ton for high furnace rebar, hot-rolled coil, and cold-rolled coil was +171 CNY/ton, +146 CNY/ton, and +32 CNY/ton respectively, with slight variations noted [1][4]. 3. Stock Market Performance - The steel index closed at 2,294.69 points, with a weekly increase of 0.36%, while the overall A-share index rose by 1.40% [4][6]. - The report indicates that the overall valuation of the steel sector remains low, with specific companies showing potential for recovery in both valuation and profitability [10].

Investment Rating - The report maintains a "Buy" recommendation for several steel companies, including Baosteel, Hualing Steel, and Nanjing Steel, among others [3][4]. Core Viewpoints - The upcoming "stability growth plan" from the Ministry of Industry and Information Technology is expected to optimize steel production capacity, focusing on structural adjustments and the elimination of outdated capacity [3][7]. - Steel prices have shown an upward trend, with specific prices for various steel products increasing as of July 18, 2025 [1][10]. - The report indicates a decrease in steel production and inventory levels, with a total production of 8.68 million tons for the five major steel products, reflecting a week-on-week decrease [2][8]. Summary by Sections Price Trends - As of July 18, 2025, the price of 20mm HRB400 rebar in Shanghai is 3,270 CNY/ton, up 30 CNY/ton from the previous week [1][10]. - Other steel products also saw price increases, including hot-rolled and cold-rolled steel [1][11]. Production and Inventory - The total production of the five major steel products is 8.68 million tons, down 45,300 tons week-on-week [2][8]. - Social inventory of the five major steel products increased by 81,500 tons to 9.21 million tons, while steel mill inventory decreased by 100,200 tons [2][8]. Profitability - The report notes fluctuations in steel profitability, with rebar, hot-rolled, and cold-rolled steel margins changing by -19 CNY/ton, -7 CNY/ton, and +7 CNY/ton respectively [1][3]. Investment Recommendations - The report recommends several companies for investment, including Baosteel, Hualing Steel, and Nanjing Steel in the flat steel sector, and Xianglou New Materials and CITIC Special Steel in the special steel sector [3][4].

Core Viewpoint - The profitability of Chinese steel companies is significantly lower than that of Japanese steel companies, with the CEO of Nippon Steel highlighting the challenges faced by Chinese manufacturers due to low pricing strategies [1][2]. Financial Performance Comparison - In 2024, Nippon Steel's net profit was 350.2 billion yen (approximately 16.9 billion RMB), while the top five Chinese steel companies had net profits of 7.362 billion RMB (Baowu Steel), 5.126 billion RMB (CITIC Special Steel), 2.261 billion RMB (Nanjing Steel), 2.032 billion RMB (Hualing Steel), and 1.49 billion RMB (Jiuli Special Materials) [1][2]. - The combined net profit of the top four Chinese steel companies in 2024 was less than that of Nippon Steel alone [2]. Industry Challenges - The Chinese steel industry is facing overcapacity, price competition, and increasing technical standards, leading to a decline in profitability [2][6]. - In 2024, the total profit of key Chinese steel companies was 42.9 billion RMB, a year-on-year decrease of 50.3% [6][7]. - The apparent consumption of crude steel in China has decreased from 1.048 billion tons in 2020 to 892 million tons in 2024, indicating a significant drop in demand [8]. Export Dynamics - Despite increasing steel exports, the average export price has declined, with the volume of steel exports doubling from 53.67 million tons in 2020 to 111 million tons in 2024, while the average price fell from 847.2 USD/ton to 755 USD/ton [9][10]. - Trade protectionism against Chinese steel products is rising, with multiple anti-dumping investigations initiated by countries like Vietnam and South Korea [9][10]. Strategic Adjustments - Chinese steel companies are attempting to improve their competitiveness by focusing on high-end steel production and reducing costs through better management practices [13][14]. - The industry is urged to adopt a more flexible production mechanism to balance supply and demand, especially in light of declining domestic demand and increasing export challenges [15].

Group 1: Event Overview - The third China International Supply Chain Promotion Expo was held in Beijing from July 16 to 20, attracting 651 enterprises from 75 countries and regions [1] - The expo focused on smart manufacturing, green transformation, and multinational collaboration, aiming to inject new momentum into the stability and development of global supply chains [1] Group 2: Company Highlights - Honeywell showcased over 95% of its physical exhibits developed by its local team in China, launching smart ship solutions and efficient operation modules for smart building management [1] - HP emphasized its deep integration into the Chinese industrial chain, showcasing AI-driven manufacturing solutions and a full lifecycle support model for various industries [2] - Maersk introduced integrated solutions for sea, air, and land transport, achieving over 90% on-time delivery rates in its shipping operations [3] - Corning presented its material science innovations and commitment to long-term investment in China, highlighting its contributions to the supply chain [4] - Panasonic displayed innovative solutions for urban living, emphasizing its commitment to supply chain innovation and collaboration [5] - Golden Agri-Resources launched a global electronic catalog and showcased sustainable packaging solutions, reinforcing its role in the green supply chain [6] - Siemens presented a comprehensive solution for enterprises going global, leveraging its extensive ecosystem and digital technologies [7] - Rio Tinto and China Baowu Steel Group focused on green supply chains and global industry cooperation, showcasing key materials for energy transition [8]

Core Insights - The competitive landscape between Japanese and Chinese steel companies is influenced by structural overcapacity in China's steel industry, low concentration levels, and continuous technological advancements [1][2] - Japanese steel company Nippon Steel has significantly higher profits compared to Chinese counterparts, with its net profit for 2024 at 350.2 billion yen (approximately 16.9 billion yuan), while the top five Chinese steel companies collectively earned less [1][3] - The profitability gap is attributed to Nippon Steel's advantages in raw material costs and product structure, focusing on high-end steel production [3][4] Industry Overview - The Chinese steel industry is facing a structural overcapacity issue, with a concentration rate of only 40% among the top ten steel companies, leading to intense competition and price wars [4][5] - In 2024, the total profit of key Chinese steel enterprises dropped by 50.3% year-on-year, with Baosteel's net profit declining by 38.36% [5][6] - China's crude steel apparent consumption has decreased from a peak of 1.048 billion tons in 2020 to 892 million tons in 2024, indicating a downward trend in demand [6][7] Export Dynamics - Despite increasing steel exports, the average export price has fallen from $847.2 per ton in 2020 to $755 per ton in 2024, reflecting a challenging international market [7][8] - Trade protectionism against Chinese steel products has risen, with 33 anti-dumping investigations initiated in 2024 alone, surpassing the total from 2020 to 2023 [7][8] - Major export destinations for Chinese steel include Vietnam and South Korea, accounting for 11.5% and 7.4% of total exports, respectively [8][9] Technological Advancements - Chinese steel companies are increasingly focusing on technological innovation and product upgrades, with significant developments in high-strength and specialized steel products [11][12] - The industry is urged to shift from scale expansion to enhancing research and development capabilities, with some companies achieving breakthroughs in high-end steel products [11][12] - The Chinese Steel Industry Association plans to implement a new capacity governance mechanism to balance supply and demand effectively [12]

Global Steel Production Overview - In 2024, global crude steel production reached 1.885 billion tons, a decrease of 1% year-on-year [1] - China remains the largest steel producer, with a projected output of 1.005 billion tons in 2024, accounting for 53.3% of global production [1] - Other major producers include India (149.4 million tons), Japan (84 million tons), the United States (79.5 million tons), and Russia (71 million tons) [1] Top Steel Producers - The top 50 steel companies produced a total of 1.118 billion tons in 2024, an increase of 1% year-on-year, with the entry threshold rising from 7.45 million tons to 8.54 million tons [3] - China has 28 companies in the top 50, maintaining a dominant position, while the United States has 4, and India and Russia each have 3 [3] - China Baowu Steel Group leads the ranking with a production of 130 million tons, remaining stable compared to the previous year [7] Notable Company Performances - Ansteel Group ranked third with a crude steel output of 59.55 million tons, an increase of 6.5% year-on-year [5] - ArcelorMittal, based in Luxembourg, is the second-largest producer, with a production decline of 5.1% to 65 million tons [5] - Hebei Province, home to the leading Hebei Iron and Steel Group, produced 199.86 million tons, accounting for about 20% of China's total output [3] Financial Performance - China Baowu reported revenues of 900.2 billion yuan and a net profit of 13.57 billion yuan, reflecting declines of 19.12% and 43% respectively [7] - The restructuring of Ansteel and Benxi Steel has positioned it as the second-largest steel producer in China and third globally [5]

Core Insights - The third China International Supply Chain Promotion Expo showcased over 30 companies and institutions demonstrating key technologies and products in the automotive industry, highlighting collaborative innovation and development within the supply chain [1][2]. Group 1: Company Innovations - Baosteel presented its latest fifth-generation platformized and integrated pure electric vehicle body, aiming to transition from a raw material supplier to a solution provider [1]. - The company emphasized early-stage collaboration with automotive manufacturers to optimize materials based on cost, weight, and carbon emission targets during vehicle design [1]. - Hunan Shibite Robot Co., Ltd. showcased its self-developed automotive paint defect detection technology, reflecting advancements in quality assurance within the automotive supply chain [2][6]. Group 2: Supply Chain Collaboration - The expo highlighted the importance of open cooperation and collaborative development in the automotive industry, with companies like Rio Tinto and Baosteel demonstrating integrated supply chain solutions from raw materials to vehicle bodies [2]. - The introduction of the "factory within a factory" model by Seres Group allows for localized production and supply, significantly enhancing production efficiency [4]. - Tesla's local supply chain achievements were showcased, with over 95% localization of components and a vehicle rolling off the Shanghai factory every 30 seconds [4]. Group 3: Technological Advancements - Tesla also displayed a humanoid robot that utilizes electric vehicle technology, indicating the potential for expanded applications of EV technology [5]. - Black Sesame Intelligent Technology Co., Ltd. presented various chips focused on advanced driving assistance and cross-domain computing, which can also be applied in humanoid robots [5]. - Aibiai and New Materials Co., Ltd. introduced aerogel products for automotive battery thermal protection, which currently account for 80% of their revenue, while also exploring broader applications in construction and industry [7].