钢铁行业周报：宏观政策&传统旺季，需求大幅改善

Investment Rating - The report maintains an "Overweight" rating for the steel industry, suggesting a positive outlook for investment opportunities in this sector [5][37]. Core Views - The steel sector has shown a significant recovery with a 17.31% increase in the past week, outperforming the benchmark index (CSI 300) by 1.61 percentage points [2][3]. - The macroeconomic policies and the traditional peak season have led to a substantial improvement in demand, with a notable increase in consumption and a decrease in inventory levels [3][4]. - Steel prices have been on the rise, with various steel products experiencing price increases, indicating a strengthening market [4][5]. Summary by Sections Market Review - The steel sector's PE valuation stands at 15.5 times, at the 58.8% percentile over the past decade, while the PB valuation is at 0.9 times, at the 8% percentile, indicating a notable recovery in valuations [2]. Supply and Demand - As of September 27, the operating rate of sample steel mills was stable at 78.25%, with a slight increase in iron water production to 2.2491 million tons, up 0.46% week-on-week [3]. - Weekly consumption of the five major steel products reached 9.1337 million tons, up 8.16% from the previous week, with rebar and wire rod leading the consumption growth [3][27]. - Total inventory of the five major steel products decreased by 1.41% to 13.6287 million tons, indicating a continued trend of inventory reduction [3]. Profitability and Pricing - The profitability of steel mills has improved, with an average profit margin of 18.62%, up 8.65 percentage points week-on-week [4]. - As of September 26, the price indices for various steel products showed increases, with rebar prices rising by 2.84% to 3,475 CNY per ton [4]. Investment Recommendations - The report suggests focusing on companies with low valuations, high dividends, strong risk resistance, and stable performance, particularly those with high energy efficiency and green steel production capabilities [5][37].