Zhi Tong Cai Jing·2025-12-15 03:48Group 1 - The core viewpoint of the report is that steel demand is expected to gradually bottom out, and the supply side is beginning to show signs of market-driven clearance, with a potential recovery in the steel industry's fundamentals [1] - The report indicates a decrease in demand and inventory levels, with apparent consumption of five major steel varieties at 8.397 million tons, down 2.83% week-on-week and 4.76% year-on-year [2] - The production of five major steel varieties was 8.062 million tons, a week-on-week decrease of 22.7 thousand tons, while total inventory stood at 13.32 million tons, down 33.5% week-on-week [2] Group 2 - The average gross profit for rebar was 169.8 CNY/ton, an increase of 22.2 CNY/ton week-on-week, while hot-rolled coil showed a gross profit of -30.2 CNY/ton, a decrease of 17.8 CNY/ton [3] - Approximately 65% of steel companies are currently operating at a loss, and the market-driven clearance of supply is beginning to occur [4] - The Ministry of Industry and Information Technology has released a plan to continue implementing production reduction policies, which is expected to promote a dynamic balance between supply and demand [4] Group 3 - The long-term outlook for the steel industry includes an increase in industry concentration and a focus on high-quality development, benefiting companies with product structure and cost advantages [5] - Key recommendations include companies like Baosteel (600019), Hualing Steel (000932), and Shougang (000959), which have leading technology and product structures [5] - The report also highlights the potential of upstream resource companies such as Hebei Steel Resources (000923) and Dazhong Mining (001203) in the context of demand recovery [5]