钢铁行业周报：供需双降，钢价震荡偏强

Investment Rating - The industry rating is maintained at "Overweight" [6][8] Core Viewpoints - The steel sector has shown a 4.65% increase, outperforming the benchmark index (CSI 300) by 6.33 percentage points [3] - Steel supply and demand have both decreased, with ongoing inventory destocking [4] - Steel prices are experiencing fluctuations with a slight upward trend, but profitability for steel mills is declining [5] Summary by Sections Market Review - The steel sector index rose by 4.65% from October 28 to November 3, while the CSI 300 index fell by 1.68% [3] - The sector's PE ratio is at 15.8 times, in the 61.8 percentile over the past decade, and the PB ratio is at 0.97 times, in the 21.6 percentile [3] Supply and Demand - Total production of five major steel products decreased by 1.5% week-on-week to 8.672 million tons [4] - Apparent consumption of five major products was 8.917 million tons, down 0.23% week-on-week [4] - Total inventory of five major steel products decreased by 1.94% week-on-week to 12.349 million tons [4] Price and Profitability - As of November 1, the price indices for various steel products showed slight increases, with rebar at 3636 CNY/ton and hot-rolled coil at 3638 CNY/ton [5] - The profitability of 247 sample steel companies is at 61.1%, down 3.9 percentage points week-on-week [5] Investment Recommendations - Short-term outlook suggests limited upward price movement due to the transition from peak to off-peak season, with expectations of a slight decline in demand [6][27] - Long-term prospects favor leading companies with scale advantages as the industry undergoes high-quality development and regional capacity consolidation [6][27]