钢铁行业周报：需求持续恢复，钢价触底反弹

Investment Rating - The industry is rated as "Overweight" based on the expectation of demand recovery and limited supply [5][39]. Core Viewpoints - The steel sector has shown a slight increase of 0.7%, outperforming the benchmark index (CSI 300) by 0.87 percentage points, with current PE and PB valuations at 14.09 times and 0.77 times, respectively, indicating historical low levels [2][3]. - Supply has slightly contracted with a decrease in production, while demand is showing signs of recovery, particularly as the traditional peak season approaches [3][4]. - Steel prices have rebounded from their lows, leading to an improvement in profit margins for steel mills, although they remain at historically low levels [4][39]. Summary by Sections Market Review - The steel sector's valuation is at a historical low, with PE at 14.09 times and PB at 0.77 times, indicating a potential investment opportunity [2][3]. Supply and Demand - Supply: The operating rate of sampled steel mills is at 76.39%, down 1.06 percentage points week-on-week, with total production of 778.61 million tons, a slight decrease of 0.05% [3]. - Demand: Apparent consumption of major steel products reached 857.58 million tons, up 2.45% week-on-week but down 8.18% year-on-year, indicating a recovery trend [3][27]. - Inventory: Total inventory of major steel products is at 15.631 million tons, down 4.8% week-on-week, suggesting a tightening supply situation [3]. Price and Profitability - Steel prices have increased, with rebar prices rising by 2.25% week-on-week, leading to an improvement in the profit margin of steel mills to 3.91%, up 2.62 percentage points week-on-week [4][39]. Investment Recommendations - Short-term demand is expected to improve as the traditional peak season approaches, while supply remains constrained due to ongoing maintenance at some steel mills. Long-term focus should be on energy-efficient green steel companies following the government's new environmental regulations [5][39].