Group 1 - The core purpose of the new steel export policy is to reduce illegal operations such as "buying orders" and "proxy exports," thereby increasing compliance costs and traceability for steel exports [1][2] - The steel export volume reached 107.7 million tons by November 2025, a year-on-year increase of 6.7%, but the average export price fell by over 10%, indicating a shift from quantity expansion to quality improvement in exports [2][3] - The new policy is expected to lead to a decline in steel export volume in 2026, as low-priced and low-quality products are likely to exit the market, improving the competitive landscape and profitability of steel exports [3] Group 2 - The new export policy signifies the government's focus on addressing the issue of export "involution," with expectations for differentiated management of production and tightening of capacity replacement to phase out inefficient capacity [4] - The steel sector is anticipated to experience a transformation in supply dynamics, with a positive outlook for the industry in 2026 [4] - Key investment recommendations include Hualing Steel (000932) and Tiangong International (00826) [5]