SHANDONG STEEL(SH:600022) Zheng Quan Shi Bao Wang·2025-10-10 03:38Core Viewpoint - The steel industry is experiencing a recovery despite an overall downturn, with Shandong Steel showing significant improvement in profitability for the first three quarters of 2025 [1][2]. Company Summary - Shandong Steel forecasts a profit of approximately 632 million yuan for the first three quarters of 2025, an increase of about 2.196 billion yuan year-on-year [1]. - The net profit attributable to shareholders is expected to be around 140 million yuan, up by approximately 1.591 billion yuan compared to the same period last year [1]. - The company has implemented cost control measures, achieving a reduction of over 60 yuan per ton of steel, and has improved its gross margin to 6.02%, an increase of 4.15 percentage points year-on-year [1]. Industry Summary - The steel industry in China is seeing a slight easing of supply-demand conflicts, with strong growth in steel exports contributing to an overall recovery in profitability for many listed companies [2]. - Despite the recovery, domestic steel demand continues to decline, particularly in the real estate sector, which has seen double-digit year-on-year decreases in investment and new construction area [2]. - Optimistic expectations for the steel sector's future are emerging, with analysts predicting price increases as companies aim to meet annual growth targets [2][3]. - Policy initiatives are expected to support the industry, with a focus on enhancing profitability and promoting effective management within the sector [3].