钢铁行业周报：供需双增，钢材去库持续

Investment Rating - The industry maintains an "Overweight" rating [6][30][8] Core Viewpoints - The steel sector has shown a 1.5% increase, outperforming the benchmark index by 0.5 percentage points, with a PE valuation of 16.2 times and a PB valuation of 0.9 times, indicating a rise in valuations [3][4] - Supply and demand for five major steel products have both increased, leading to a continuous reduction in inventory levels [4] - Steel prices have experienced fluctuations, but the profitability of steel mills remains above 70% [5][6] Summary by Sections Market Review - The steel sector increased by 1.5% last week, with the PE valuation at 16.2 times and PB at 0.9 times, indicating a valuation increase [3] Supply and Demand - Supply: As of October 18, the operating rate of 247 sample steel mills was 88%, with a week-on-week increase of 0.48 percentage points. The total output of five major steel products was 8.733 million tons, up 1.1% week-on-week [4] - Demand: The weekly consumption of five major steel products reached 9.1098 million tons, a 2.03% increase week-on-week, supported by positive signals from the Ministry of Housing and Urban-Rural Development [4] - Inventory: Total inventory of five major steel products was 12.724 million tons, down 2.88% week-on-week [4] Price and Profitability - Steel prices have shown a downward trend, with the profitability of 247 sample steel companies at 74.48%, an increase of 3.03 percentage points week-on-week [5] - Price indices for various steel products as of October 18 showed declines ranging from 1.84% to 4.37% [5] Investment Recommendations - Short-term outlook suggests a potential slight increase in supply due to improved profitability of steel mills, while long-term prospects favor leading companies with scale advantages as the industry undergoes high-quality development [6][30]