Group 1 - Steel stocks experienced a broad decline today, with Angang Steel (00347) down 6.01% to HKD 2.19, Maanshan Steel (00323) down 3.95% to HKD 2.43, and Chongqing Steel (01053) down 3.4% to HKD 1.42 [1] - Huatai Securities anticipates that the steel industry's prosperity will improve from Q3 2024 to the first half of 2025 through voluntary production cuts, reducing the urgency for short-term anti-involution measures [1] - Future policies will likely depend on the government's strategic positioning regarding the steel industry's anti-involution approach [1] Group 2 - The increase in the steel sector from January to July 2025 is primarily driven by expectations surrounding anti-involution policies, which have not yet entered the execution phase [1] - Expectations of anti-involution have led to significant increases in coking coal and iron ore prices, further eroding steel profits and potentially forcing steel mills to implement anti-involution measures [1]