钢铁行业周报：淡季特征显现，钢厂盈利水平新低

Investment Rating - The report maintains an "Overweight" rating for the steel industry, suggesting a positive outlook for selected companies within the sector [5][21]. Core Views - The steel sector has shown a slight increase of 1.43% recently, outperforming the benchmark index (CSI 300) by 2.16 percentage points, although the overall valuation remains at historical lows [2]. - Demand for steel continues to decline, with a notable drop in production and consumption due to seasonal factors and economic pressures [3][4]. - Steel prices have been on a downward trend, leading to a significant decrease in profitability for steel manufacturers, reaching a year-to-date low [4]. Summary by Sections Market Review - The steel sector's PE valuation stands at 14.44 times, and PB valuation is at 0.81 times, both at historical low percentiles [2]. - The overall steel production has decreased, with a notable drop in the operating rate of sample steel mills to 81.26%, down by 1.05 percentage points week-on-week [3]. Supply and Demand Dynamics - Total inventory of the five major steel products is 17.47 million tons, showing a slight decrease of 0.63% week-on-week, indicating a slow de-inventory process [3]. - Apparent consumption of the five major steel products has dropped to 8.55 million tons, down 2.32% week-on-week and 4.58% year-on-year, reflecting ongoing weak demand [3][14]. Price and Profitability - The price indices for various steel products have decreased, with rebar prices at 3,391 CNY/ton, down 1.28% week-on-week, contributing to a significant drop in profitability for steel companies [4]. - The profitability rate for 247 sample steel companies has fallen to 6.49%, a decrease of 8.66 percentage points week-on-week, marking a new low for the year [4][15]. Investment Recommendations - In the short term, the steel industry is expected to remain in a weak supply-demand situation, with prices likely to continue fluctuating downwards [5][21]. - Long-term prospects are more favorable for energy-efficient green steel companies, especially following the government's new energy-saving and carbon reduction policies [5][21].