Investment Rating - The report maintains a "Recommended" rating for the controllable nuclear fusion industry, indicating an expectation of significant growth in the sector over the next 3-6 months [3][49]. Core Insights - The 2026 Nuclear Fusion Energy Technology and Industry Conference held in Hefei is expected to accelerate the industrialization of nuclear fusion, with major procurement projects and collaborative laboratory projects being signed [1][8]. - Star Ring Fusion has completed a 1 billion yuan Series A financing round, which will expedite the commercialization of nuclear fusion technology, with plans to complete engineering validation by 2028 and establish a demonstration reactor by around 2032 [9][1]. - The report anticipates that the domestic nuclear fusion projects will see a total investment of approximately 146.5 billion yuan, with capital expenditures expected to enter an expansion phase from 2025 to 2028, leading to increased orders in the industry chain [8][1]. Summary by Sections Industry Overview - The report highlights the significant participation of over 1,500 attendees from various sectors, including government, academia, and finance, at the 2026 Nuclear Fusion Energy Technology and Industry Conference [8]. - The conference aims to foster collaboration across innovation, industry, finance, and talent chains to build a synergistic nuclear fusion energy ecosystem [8]. Financing and Investment - Star Ring Fusion's 1 billion yuan financing round was led by Shanghai Guotou and other investment groups, focusing on developing a unique high-temperature superconducting spherical tokamak technology [9][1]. - The report notes that the nuclear fusion industry is entering a capital expenditure upcycle, with significant investments expected to drive order volumes in the supply chain [1][8]. Market Performance - The report provides a performance review of the nuclear fusion sector, noting that several companies have seen substantial stock price increases, with top performers including New Wind Power (+42%) and China Nuclear Construction (+27%) [22][26]. - The report also tracks bidding activities, indicating a total bidding amount of 1.28 billion yuan in early January 2026, with several high-value projects being awarded [12][15]. Recommended Companies - The report continues to recommend companies such as Hezhong Intelligent and Lianchuang Optoelectronics, while suggesting attention to Guoguang Electric [3][23]. - It emphasizes the importance of the magnet segment, recommending companies like Western Superconducting and Yongding Co., which have significant value contributions in the nuclear fusion supply chain [33][3].

Investment Rating - The report maintains an "Overweight" rating for the steel industry [6]. Core Insights - Demand is expected to gradually stabilize, while supply-side constraints are anticipated to continue, leading to a potential recovery in the steel industry's fundamentals [3][4]. - The report highlights that despite a long period of micro-profitability in the industry, market-driven supply adjustments have begun, which could accelerate the industry's upward progress if supply policies are implemented [3][4]. Summary by Sections Steel Market Overview - The apparent consumption of five major steel products was 8.2612 million tons, a decrease of 1.77% week-on-week but an increase of 4.33% year-on-year [6][20]. - Total steel inventory was 12.47 million tons, down 0.55% week-on-week, maintaining a low level [6][12]. - The average profit margin for rebar was 199.4 CNY/ton, down 15.2 CNY/ton from the previous week [6][41]. Production and Capacity Utilization - The operating rate of blast furnaces in 247 steel mills was 78.84%, a decrease of 0.47 percentage points from the previous week [6][29]. - The capacity utilization rate for these mills was 85.48%, down 0.56 percentage points week-on-week [6][29]. - The total steel production was 8.1921 million tons, a slight increase of 0.08% week-on-week [6][40]. Raw Materials - Iron ore inventory at ports reached 165.55 million tons, an increase of 1.72% week-on-week, marking a historical high [6][52]. - The spot price of iron ore remained unchanged, while futures prices decreased slightly [6][48]. - The total shipment volume of the four major iron ore producers decreased, with Brazil's shipments down 7.37% and Australia's down 2.29% [6][53][61]. Investment Recommendations - The report recommends focusing on companies with leading technology and product structures, such as Baosteel and Hualing Steel, as well as low-cost firms like Fangda Special Steel and New Steel [6]. - It also highlights the potential of upstream resource companies like Hebei Resources and Erdos, which may benefit from a recovery in demand [6].

Investment Rating - The report maintains a "Buy" rating for key steel companies, indicating a positive outlook for their stock performance in the coming months [10]. Core Insights - The steel industry has experienced a fluctuating demand pattern, with a peak in early 2025 followed by a decline, leading to an increase in the material-to-steel ratio, which reached 1.69 in December [2]. - China's apparent steel consumption grew by 2.9% year-on-year in 2025, although December saw a 5.0% decline compared to the previous year [2]. - The net export of steel in 2025 reached 11.296 million tons, a year-on-year increase of 8.7%, driven by strong exports in the automotive and home appliance sectors [3]. - The report highlights a shift in economic drivers from investment to consumption, with fixed asset investment declining by 3.8% year-on-year, while retail sales increased by 3.7% [2]. Summary by Sections Steel Production and Consumption - In December 2025, crude steel production was 68.18 million tons, a 10.3% year-on-year decrease, with an annual total of 960.81 million tons, down 4.4% [6]. - Steel production in December was 115.31 million tons, a 3.8% year-on-year decrease, while the annual total was 1,446.12 million tons, up 3.1% [6]. Export and Import Dynamics - December steel exports were 11.30 million tons, up 16.2% year-on-year, with total exports for the year at 11.902 million tons, a 7.5% increase [6]. - Steel imports in December were 520,000 tons, down 16.3% year-on-year, with total imports for the year at 6.06 million tons, down 11.1% [6]. Economic Context and Policy Implications - The report notes that the Chinese economy is transitioning to a more stable phase, with GDP growth projected at 5% for 2025, reflecting a pattern of high demand followed by a decline [2]. - Recent structural interest rate cuts by the central bank are expected to support credit flow to specific industries, indicating a potential for economic stabilization [8]. - The valuation of the steel sector has improved, moving from absolute undervaluation to a moderately low position, suggesting room for further gains [8]. Recommended Stocks - The report recommends several stocks, including: - Hualing Steel (华菱钢铁) [10] - Nanjing Steel (南钢股份) [10] - Baosteel (宝钢股份) [10] - New Steel (新钢股份) [10] - Jiuli Special Materials (久立特材) [10] - Yongjin Co., Ltd. (甬金股份) [10] - Changbao Steel (常宝股份) [10]

Investment Rating - The report assigns a "Buy" rating for several steel companies, including Xining Steel, Hualing Steel, Nanjing Steel, and Baosteel, indicating a positive outlook for their stock performance in the coming months [10]. Core Insights - The steel industry has experienced a fluctuating demand pattern, with a peak in early 2025 followed by a decline. The material-to-steel ratio has reached a new high of 1.69 in December, with an annual average of 1.51, suggesting a shift in consumption patterns [2]. - China's apparent steel consumption increased by 2.9% year-on-year in 2025, although December saw a decline of 5.0% compared to the previous year. The economic growth rate is projected to be 5% for 2025, with a quarterly breakdown showing a decreasing trend [2]. - The net export of steel reached 11.296 million tons in 2025, a year-on-year increase of 8.7%, driven by strong demand in the automotive and home appliance sectors. Exports to ASEAN countries have significantly increased, despite a decline in exports to the U.S. [3]. Summary by Sections Production and Consumption - In December 2025, crude steel production was 68.18 million tons, a decrease of 10.3% year-on-year, while the total for the year was 960.81 million tons, down 4.4%. Steel production in December was 115.31 million tons, down 3.8% year-on-year, with an annual total of 1,446.12 million tons, up 3.1% [6]. - The apparent consumption of steel in China is expected to be more accurately estimated by using steel production growth rates instead of crude steel production growth rates [2]. Economic Indicators - Fixed asset investment in 2025 is projected to be 48.5186 trillion yuan, a decrease of 3.8% from the previous year, while retail sales of consumer goods are expected to grow by 3.7% [2]. - The report highlights a transition from investment-driven growth to consumption-driven growth as China's economy matures [2]. Market Outlook - The recent structural interest rate cuts by the central bank are expected to support credit growth in specific sectors, indicating a potential for economic stabilization. The steel sector's valuation has improved, moving from absolute undervaluation to a moderately low position, suggesting room for further gains [8]. - Recommended stocks include Hualing Steel, Nanjing Steel, Baosteel, and others, which are expected to benefit from various economic cycles and trends [8].

Market Overview - The special steel sector increased by 1.74% on January 19, with Jinzhou Pipeline leading the gains [1] - The Shanghai Composite Index closed at 4114.0, up 0.29%, while the Shenzhen Component Index closed at 14294.05, up 0.09% [1] Stock Performance - Jinzhou Pipeline (002443) closed at 9.35, up 7.72% with a trading volume of 451,900 shares and a turnover of 417 million yuan [1] - Changbao Co. (002478) closed at 9.48, up 5.80% with a trading volume of 636,300 shares and a turnover of 601 million yuan [1] - Shengde Zhengtai (300881) closed at 38.27, up 5.17% with a trading volume of 45,000 shares and a turnover of 171 million yuan [1] - Jiuli Special Materials (002318) closed at 30.10, up 4.33% with a trading volume of 159,300 shares and a turnover of 476 million yuan [1] - Fangda Special Steel (600507) closed at 5.95, up 2.41% with a trading volume of 273,200 shares and a turnover of 161 million yuan [1] Capital Flow - The special steel sector experienced a net outflow of 128 million yuan from institutional investors, while retail investors saw a net inflow of 78.89 million yuan [2] - The main capital flow for Fangda Special Steel (600507) showed a net inflow of 16.76 million yuan from institutional investors [3] - Shengde Zhengtai (300881) had a net inflow of 14.64 million yuan from institutional investors, but a net outflow of 16.98 million yuan from retail investors [3]

Investment Rating - The report maintains a "Buy" rating for the steel industry, recommending several key companies [2][3]. Core Insights - The supply-demand situation is improving, leading to a potential recovery in profits for the steel industry. The report highlights that production of major steel products has increased, while total inventory has decreased, indicating a positive shift in market dynamics [7][30]. - The report emphasizes that the profitability of steel manufacturers is expected to recover in the short term due to improved supply-demand conditions and stable cost support from raw materials [7][30]. Summary by Sections 1. Domestic Steel Market - As of January 16, steel prices have risen, with HRB400 rebar priced at 3,320 CNY/ton, up 40 CNY/ton from the previous week. Other products like high-line and hot-rolled steel also saw price increases [13][14]. 2. Production and Inventory - The total production of five major steel products reached 8.19 million tons, an increase of 0.62 million tons week-on-week. Total inventory decreased by 11,700 tons to 865,320 tons, indicating a positive trend in inventory management [7][30]. 3. Profitability - The report notes a decline in steel profits, with average margins for rebar, hot-rolled, and cold-rolled steel decreasing by 13 CNY/ton, 4 CNY/ton, and 18 CNY/ton respectively. However, the overall outlook for profit recovery remains optimistic [7][30]. 4. Key Company Recommendations - Recommended companies include: - General Steel Leaders: Hualing Steel, Baosteel, Nanjing Steel - Special Steel Sector: Xianglou New Materials, CITIC Special Steel, Fangda Special Steel - Pipe Manufacturers: Jiuli Special Materials, Youfa Group, Changbao Co. - Raw Material Sector: Dazhong Mining (iron ore + lithium ore), Fangda Carbon [7][30].

Investment Rating - The report maintains a "Buy" rating for several steel companies, including Xining Special Steel, Nanjing Steel, Hualing Steel, and Baosteel [9]. Core Insights - The steel market is experiencing a recovery in valuation, with absolute valuations moving from undervalued to moderately low levels, indicating potential for absolute returns [2]. - The report emphasizes the importance of structural reforms in the capital market, which are expected to facilitate a shift towards value investing in the steel industry [2]. - The report highlights that the demand for steel is improving, with significant increases in apparent consumption, particularly for rebar [6][41]. Supply Analysis - Daily molten iron production has decreased by 16,000 tons to 2.28 million tons, while steel production has slightly increased [15]. - The capacity utilization rate of 247 steel mills is at 85.5%, down 0.6 percentage points week-on-week but up 1.2 percentage points year-on-year [21]. Inventory Analysis - Total steel inventory has shifted from an increase to a decrease, with a week-on-week decline of 0.6% [27]. - The social inventory of five major steel products is 8.663 million tons, up 0.1% week-on-week and up 8.7% year-on-year [29]. Demand Analysis - Apparent consumption of five major steel products has improved significantly, with a week-on-week increase of 3.7% [51]. - Rebar apparent consumption reached 1.903 million tons, up 8.8% week-on-week and 2.8% year-on-year [51]. Raw Material Analysis - Iron ore prices have weakened, with a decrease in the shipping volume from Australia and Brazil, while port inventories have increased [50]. - The price index for imported iron ore is reported at 106.2 USD/ton, down 2.2% week-on-week [59]. Price and Profit Analysis - Steel prices are stable with slight increases, and the gross profit margins for steel products are improving [69]. - The comprehensive steel price index is at 122.7, reflecting a week-on-week increase of 0.2% [70].

Market Overview - The special steel sector saw a slight increase of 0.08% on January 15, with Yongjin Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 4112.6, down 0.33%, while the Shenzhen Component Index closed at 14306.73, up 0.41% [1] Stock Performance - Notable performers in the special steel sector included: - Gengmei Co., Ltd. (603995) with a closing price of 19.15, up 2.90% and a trading volume of 116,400 shares, generating a turnover of 224 million yuan [1] - Jinzhu Pipeline (002443) closed at 8.79, up 1.38% with a trading volume of 221,600 shares, resulting in a turnover of 195 million yuan [1] - Shagang Co., Ltd. (002075) closed at 5.78, down 0.52% with a trading volume of 474,100 shares, generating a turnover of 27.5 million yuan [2] Capital Flow - The special steel sector experienced a net inflow of 34.38 million yuan from institutional investors, while retail investors saw a net inflow of 31.91 million yuan [2] - However, speculative funds recorded a net outflow of 66.29 million yuan [2] Individual Stock Capital Flow - Notable net inflows from institutional investors included: - Tai Steel (000825) with a net inflow of 46.73 million yuan, accounting for 4.36% of its trading volume [3] - Fushun Special Steel (600399) with a net inflow of 25.76 million yuan, representing 2.19% of its trading volume [3] - Conversely, significant net outflows from speculative funds were observed in: - West Ning Special Steel (600117) with a net outflow of 7.91 million yuan, accounting for 9.11% of its trading volume [3] - Jiu Li Special Materials (002318) with a net outflow of 17.13 million yuan, representing 5.29% of its trading volume [3]

Market Overview - The special steel sector experienced a decline of 0.31% on January 14, with Fushun Special Steel leading the drop [1] - The Shanghai Composite Index closed at 4126.09, down 0.31%, while the Shenzhen Component Index closed at 14248.6, up 0.56% [1] Stock Performance - Notable stock performances include: - Changbao Co., Ltd. (002478) rose by 9.99% to a closing price of 8.92, with a trading volume of 624,500 shares and a transaction value of 539 million [1] - Jinzhu Pipeline (002443) increased by 1.88% to 8.67, with a trading volume of 275,200 shares [1] - Taiyuan Iron & Steel (000825) saw a slight increase of 1.53% to 5.32, with a trading volume of 1,698,400 shares [1] - Other stocks like Xining Special Steel (600117) and CITIC Special Steel (000708) experienced minor declines of 0.34% and 0.44%, respectively [1] Capital Flow - The special steel sector saw a net outflow of 24.62 million from institutional investors and 48.36 million from retail investors, while retail investors had a net inflow of 72.99 million [2] - The capital flow for specific stocks indicates: - Changbao Co., Ltd. had a net inflow of 1.24 billion from institutional investors, but a net outflow of 74.27 million from retail investors [3] - Xining Special Steel had a net inflow of 10.68 million from institutional investors, while retail investors experienced a net outflow of 11.70 million [3] - Taiyuan Iron & Steel faced a net outflow of 135.03 million from institutional investors, but retail investors had a net inflow of 220.43 million [3]

Market Overview - The special steel sector experienced a decline of 1.05% on January 13, with Taiyuan Iron and Steel leading the drop [1] - The Shanghai Composite Index closed at 4138.76, down 0.64%, while the Shenzhen Component Index closed at 14169.4, down 1.37% [1] Stock Performance - Notable performers in the special steel sector included: - Shagang Co., Ltd. (002075) with a closing price of 5.94, up 2.41% and a trading volume of 1.3876 million shares, totaling 8.24 billion yuan [1] - Fushun Special Steel (668009) closed at 7.22, up 2.27% with a trading volume of 2.7285 million shares, totaling 19.92 billion yuan [1] - Taiyuan Iron and Steel (000825) closed at 5.24, down 5.92% with a trading volume of 1.8381 million shares, totaling 9.79 billion yuan [2] Capital Flow - The special steel sector saw a net outflow of 98.2152 million yuan from institutional investors, while retail investors had a net inflow of 112 million yuan [2] - The capital flow for specific stocks included: - Shagang Co., Ltd. had a net inflow of 60.3244 million yuan from institutional investors [3] - Fushun Special Steel experienced a net inflow of 51.0475 million yuan from institutional investors [3] - Taiyuan Iron and Steel had a significant net outflow of 21.4182 million yuan from institutional investors [3]