Zhi Tong Cai Jing·2025-05-20 08:25Group 1 - The steel industry maintains an "overweight" rating, with a long-term trend towards increased industry concentration and high-quality development, benefiting companies with product structure and cost advantages [1] - Steel demand has increased on a month-on-month basis, with total inventory decreasing, indicating a recovery from previous accumulation [2] - The average gross profit per ton for rebar and hot-rolled coil has risen, reflecting improved profitability in the industry [3] Group 2 - Domestic steel demand is expected to stabilize gradually, with a reduction in the negative impact from the real estate sector and continued support from infrastructure [4] - Supply-side weaknesses are highlighted, with some steel companies experiencing cash flow losses, leading to potential production cuts in 2024 and 2025 [4] - The National Development and Reform Commission has proposed ongoing control of crude steel production, indicating a push for industry consolidation and improved profitability [4]