Xin Hua Cai Jing·2025-08-07 05:25Group 1 - The core viewpoint of the articles indicates that the steel industry in China is experiencing a recovery due to self-initiated production cuts, with the industry expected to hit bottom in Q3 2024. The implementation of anti-involution policies could further enhance profit recovery in the sector [1][2] - The steel sector saw a significant increase in prices for coking coal and iron ore due to expectations surrounding anti-involution policies, which have negatively impacted steel profits and may compel steel mills to execute these policies [1][2] - Historical context shows that the steel industry has undergone two rounds of supply-side optimization from 2016 to 2020 and in 2021, aimed at correcting overcapacity and addressing rapid price increases in iron ore. The effectiveness of these policies has varied based on demand trends and policy execution consistency [1] Group 2 - The urgency for anti-involution measures is shifting from short-term to long-term strategic considerations as the industry improves through self-initiated production cuts from Q3 2024 to H1 2025. The future of related policies will depend on the government's strategic positioning of the steel industry [2] - In Q3 2024, nearly all 247 key steel enterprises reported losses, triggering self-initiated production cuts that are expected to lead to a recovery in industry conditions. If anti-involution policies are implemented, they could further enhance profit margins [2]