Core Viewpoint - Jiu Li Special Materials has shown significant stock performance with a year-to-date increase of 22.71% and a market capitalization of 26.941 billion yuan as of December 24 [1] Group 1: Stock Performance and Market Activity - On December 24, Jiu Li Special Materials' stock rose by 2.07%, reaching 27.57 yuan per share, with a trading volume of 267 million yuan and a turnover rate of 1.03% [1] - The net inflow of main funds was 12.506 million yuan, with large orders accounting for 30.64% of purchases and 28.40% of sales [1] - Over the past five trading days, the stock has increased by 3.84%, while it has risen by 12.85% over the past 20 days and 24.02% over the past 60 days [1] Group 2: Financial Performance - For the period from January to September 2025, Jiu Li Special Materials reported a revenue of 9.747 billion yuan, representing a year-on-year growth of 36.45%, and a net profit attributable to shareholders of 1.262 billion yuan, up 20.73% year-on-year [2] - Since its A-share listing, the company has distributed a total of 3.468 billion yuan in dividends, with 1.802 billion yuan distributed in the last three years [3] Group 3: Shareholder Structure - As of September 30, 2025, the number of shareholders increased by 34.16% to 27,600, while the average circulating shares per person decreased by 25.46% to 34,604 shares [2] - Hong Kong Central Clearing Limited is the second-largest circulating shareholder, holding 23.6468 million shares, a decrease of 20.9903 million shares from the previous period [3] - New shareholders include Southern CSI 500 ETF and Dacheng Rui Xiang Mixed A, while Fu Guo Xing Yuan and Guangfa Stable Growth Mixed A have exited the top ten circulating shareholders [3]

Investment Rating - The report maintains a "Positive" investment rating for the non-ferrous and steel industry [5]. Core Insights - The phenomenon of gold, copper, aluminum, and iron equities lagging behind commodity prices is expected to change, with market expectations for mid-term price increases strengthening as commodity prices reach new highs [7][11]. - The gold sector is anticipated to benefit from rising commodity prices and inflation expectations due to a decline in non-farm employment, which has increased the likelihood of interest rate cuts [7][11]. - The copper sector is viewed positively due to the demand for traditional power grid upgrades, which is expected to support copper consumption and create a supply-demand imbalance favoring copper prices [12]. - The aluminum sector is expected to see price increases following the closure of the Mozal aluminum plant and the high copper-aluminum price ratio, which is likely to drive demand for aluminum as a substitute for copper [13]. - The steel sector is poised to benefit from the introduction of export license management for certain steel products, which may encourage a shift towards higher value-added product exports [14]. Summary by Sections Steel Market Overview - Supply and demand fundamentals are weak in the off-season, but steel profitability is showing signs of recovery [15]. - Iron output has slightly decreased, while steel demand has shown marginal improvement, with rebar consumption increasing by 2.73% week-on-week [20]. - Overall steel prices have seen a slight increase, with the rebar price rising to 3345 CNY/ton, reflecting a week-on-week increase of 0.87% [33]. New Energy Metals - Lithium carbonate production in November 2025 saw a significant year-on-year increase of 84.78%, indicating strong supply growth in the new energy sector [37]. - The demand for new energy vehicles remains robust, with production and sales of new energy passenger cars in October 2025 showing year-on-year growth of 19.94% and 18.65%, respectively [41]. Price Trends - The report notes a general increase in metal prices, with lithium and cobalt prices rising significantly, while nickel prices have shown mixed trends [46].

Investment Rating - The report maintains a "Buy" rating for all key companies in the steel industry, including Hualing Steel, Baosteel, Nanjing Steel, and others [2][3]. Core Insights - The report highlights a disturbance in raw material supply, leading to differentiated performance in rebar and wire rod prices. The recent policy changes regarding coal export tariffs and the implementation of export licenses for steel products are expected to impact supply dynamics and pricing [9][12]. - Steel prices have shown an upward trend, with specific increases noted in various steel products as of December 19, 2025. For instance, the price of 20mm HRB400 rebar rose to 3,320 CNY/ton, a 2.2% increase from the previous week [9][16]. - The report indicates a rise in steel profits, with margins for rebar, hot-rolled, and cold-rolled steel increasing by 32 CNY/ton, 23 CNY/ton, and 9 CNY/ton respectively [9][33]. - Inventory levels for major steel products have decreased, with total social inventory dropping by 351,800 tons to 9,054,600 tons as of December 19, 2025 [9][33]. Summary by Sections Domestic Steel Market - As of December 19, 2025, domestic steel prices have increased, with notable price changes across various products, including rebar and hot-rolled steel [9][16]. - The report details specific price movements, such as a 70 CNY/ton increase for rebar and a 50 CNY/ton increase for high-speed wire [9][17]. Profit Situation - The report estimates an increase in steel profits, with significant improvements in margins for both long and short process steel production [9][33]. Production and Inventory - Total production of major steel products decreased to 7.98 million tons, with a notable drop in inventory levels, indicating a tightening supply situation [9][33]. Key Companies and Valuation - The report provides a detailed valuation and earnings forecast for key companies, all of which are rated as "Buy." For example, Hualing Steel is projected to have an EPS of 0.29 CNY in 2024, with a PE ratio of 19 [2][3].

Core Insights - The "2025 China Engineering Pipeline and Pipe Material Comprehensive Strength Supplier Top 100" list has been released, showcasing the top suppliers in the engineering pipeline and pipe material industry across China [1] - The list evaluates suppliers based on multiple criteria including production scale, technological research and development capabilities, product quality, market share, brand influence, financial status, after-sales service, and social responsibility [1] - The publication aims to provide a clear map of the industry's strength, support collaboration within the supply chain, assist investment institutions, and guide industry policy formulation [1] Supplier Evaluation - The top 100 suppliers represent the backbone of China's engineering pipeline and pipe material industry, indicating the mainstream direction and overall level of industry development [1] - The suppliers are distributed nationwide and offer a diverse range of products to meet various engineering needs [1] Industry Goals - The initiative encourages all companies to benchmark against advanced peers and strive for progress, contributing to China's transition from a major manufacturing country to a strong manufacturing nation [1]

Market Performance - The special steel sector increased by 0.78% on December 17, with Jiuli Special Materials leading the gains [1] - The Shanghai Composite Index closed at 3870.28, up 1.19%, while the Shenzhen Component Index closed at 13224.51, up 2.4% [1] Individual Stock Performance - Jiuli Special Materials (002318) closed at 26.55, up 2.99% with a trading volume of 148,300 shares and a transaction value of 389 million yuan [1] - Xianglou New Materials (301160) closed at 64.20, up 2.39% with a trading volume of 17,700 shares and a transaction value of 112 million yuan [1] - CITIC Special Steel (000708) closed at 15.24, up 1.67% with a trading volume of 121,600 shares and a transaction value of 184 million yuan [1] - Fangda Special Steel (600507) closed at 5.77, up 0.87% with a trading volume of 109,400 shares and a transaction value of 62.68 million yuan [1] - Other notable performances include: - Jinzhou Pipeline (002443) at 8.13, up 0.87% [1] - Shagang Group (002075) at 5.62, up 0.72% [1] - Tongjin Co. (603995) at 17.13, up 0.59% [1] - Fushun Special Steel (600399) at 5.49, down 0.18% [1] - Xining Special Steel (600117) at 2.75, down 0.36% [1] - Shengde Zhenbiao (300881) at 32.68, down 0.55% [1] Capital Flow Analysis - The special steel sector experienced a net outflow of 146 million yuan from institutional investors, while retail investors saw a net inflow of 71.86 million yuan [2] - The capital flow for individual stocks indicates varying trends, with notable outflows from: - Shagang Group (-2.41%) [3] - CITIC Special Steel (-1.01%) [3] - Fushun Special Steel (-6.62%) [3] - Conversely, Xianglou New Materials saw a net inflow from retail investors of 6.45% [3]

Investment Rating - The report maintains a "Buy" rating for the steel industry, indicating a positive outlook for selected companies within the sector [6]. Core Insights - The steel industry is experiencing a divergence between strong expectations and weak realities, with production data quality declining since May 2023, impacting demand assessments [2]. - China's apparent steel consumption increased by 3.6% year-on-year from January to November, but November alone saw a decline of 3.3% [2]. - The net export of steel reached 10.218 million tons from January to November, a year-on-year increase of 7.6%, driven by strong manufacturing exports [3]. - Domestic policies are shifting focus towards basic economic fundamentals, with an emphasis on proactive fiscal policies and moderate monetary easing [4]. Summary by Sections Production and Consumption - In November 2025, crude steel production was 6.987 million tons, a year-on-year decrease of 10.9%, while the average daily production was 2.329 million tons, showing a slight month-on-month increase of 0.3% [8]. - The apparent consumption of steel in China for the first eleven months of 2025 grew by 3.6% year-on-year, with a notable decline in November [2]. Exports and Imports - Steel exports for January to November 2025 totaled 10.772 million tons, reflecting a year-on-year increase of 6.7% [8]. - The import of iron ore in November was 11.054 million tons, up 8.5% year-on-year, while cumulative imports for the first eleven months increased by 1.4% [8]. Policy and Market Outlook - The report anticipates that the focus of domestic policies will increasingly center on structural adjustments, with an expectation of continued fiscal easing and reforms [4]. - The report highlights potential investment opportunities in undervalued companies within the steel sector, such as Huazhong Steel and Baosteel, which are expected to benefit from upcoming economic cycles [4].

Group 1 - The steel sector experienced a short-term surge, with Taiyuan Iron & Steel Co., Ltd. hitting the daily limit up [1] - Other companies such as Fushun Special Steel, Jiuli Special Materials, Jiuquan Iron & Steel, Ordos, and CITIC Special Steel also saw increases in their stock prices [1]

Investment Rating - The investment rating for the steel industry is "Buy" for several key companies including Hualing Steel, Nanjing Steel, Baosteel, and New Steel [8]. Core Insights - The market remains in a state of fluctuation, with non-ferrous metals outperforming ferrous metals. The focus is on the financial attributes of metals, particularly gold, silver, and copper [2]. - The Federal Reserve has lowered interest rates by 25 basis points to a range of 3.50%-3.75%, marking the third consecutive rate cut this year. This is expected to influence domestic policies towards a more proactive fiscal stance [2]. - The steel industry is expected to see a shift towards structural adjustments, with a focus on optimizing consumption patterns and enhancing service consumption [2]. - The report highlights a significant recovery in the valuation of the steel sector, moving from absolute undervaluation to a moderately low position, indicating potential for absolute returns [2]. Supply and Demand Analysis - Daily molten iron production has decreased by 32,000 tons to 2.291 million tons, with steel production continuing to decline, particularly in rebar [14]. - Total inventory of five major steel products has decreased by 3.8% week-on-week, while steel mill inventories have slightly increased by 0.9% [27]. - Apparent consumption of five major steel products has weakened, with a week-on-week decline of 2.8% [53]. - The average weekly transaction volume for construction steel has decreased by 0.8% [43]. Price and Profitability - The comprehensive steel price index has weakened, with a week-on-week decline of 1.1% [72]. - The current spot price for rebar in Beijing is 3,110 CNY/ton, down 2.2% week-on-week [72]. - The profit margins for long-process rebar and hot-rolled coils are negative, indicating a challenging profitability environment [74]. Industry News - The introduction of export license management for certain steel products is seen as a significant step towards promoting high-quality development in the steel industry [96]. - The Ministry of Industry and Information Technology has released a draft for the implementation of capacity replacement in the steel industry, which is expected to enhance supply-side adjustments [15].

Investment Rating - The report maintains a "Buy" rating for several steel companies, including Hualing Steel, Baosteel, Nanjing Steel, and others, indicating a positive outlook for these stocks [3]. Core Viewpoints - The report emphasizes the need for deep reforms to address "involution" competition in the steel industry, with the central government advocating for a unified national market and stricter export management [2]. - The introduction of export licenses for certain steel products is expected to limit the export of low-value-added products, encouraging steel companies to upgrade to higher-end products [2]. - In the short term, low-value-added products may face adjustments, while the long-term trend will see an increase in the export proportion of high-end products, benefiting leading companies in the industry [2]. Summary by Sections Domestic Steel Market - As of December 12, 2025, steel prices have decreased, with HRB400 rebar priced at 3,250 CNY/ton, down 20 CNY from the previous week [7][16]. - The report notes a decline in production and inventory levels, with total steel production at 8.06 million tons, a decrease of 227,300 tons week-on-week [7][16]. International Steel Market - The report highlights stable price increases in the U.S. and European steel markets, with U.S. hot-rolled coil prices at 985 USD/ton, up 10 USD from the previous week [28][30]. Raw Materials and Shipping Market - Domestic iron ore prices have shown a mixed trend, with some prices remaining stable while others have decreased slightly [33]. - The report indicates a decline in scrap steel prices, with the current price at 2,080 CNY/ton, down 10 CNY from the previous week [33]. Company Valuations and Stock Performance - The report provides earnings per share (EPS) forecasts and price-to-earnings (PE) ratios for key companies, with Hualing Steel projected to have an EPS of 0.29 CNY in 2024 and a PE ratio of 18 [3].

Core Viewpoint - The report highlights the growth of China's welded steel pipe industry, projecting a production increase and providing insights into future market trends [1] Industry Overview - In October 2025, China's welded steel pipe production reached 5.2 million tons, marking a year-on-year increase of 7.7% [1] - From January to October 2025, the cumulative production of welded steel pipes in China was 50.173 million tons, reflecting a cumulative growth of 3.7% [1] Company Insights - Listed companies in the welded steel pipe sector include Baosteel Co., Ltd. (600019), Xinxing Ductile Iron Pipes (000778), Changbao Co., Ltd. (002478), Jiuli Special Materials (002318), Honglu Steel Structure (002541), Youfa Group (601686), CITIC Special Steel (000708), Jinzhou Pipeline (002443), and Yulong Co., Ltd. (601028) [1] Research and Analysis - The report titled "2026-2032 China Welded Steel Pipe Industry Development Model Analysis and Future Outlook" by Zhiyan Consulting provides a comprehensive analysis of the industry [1] - Zhiyan Consulting is recognized as a leading industrial consulting firm in China, specializing in in-depth industry research and offering a range of consulting services [1]