Minsheng Securities·2025-04-20 02:47Investment Rating - The report maintains a "Buy" rating for several steel companies, including Baosteel, Hualing Steel, Nanjing Steel, and others [3][4]. Core Insights - The report indicates that tariff negotiations may have concluded, and there is an expectation for domestic macro policies to provide a counterbalance [3]. - Steel prices have declined due to tariff impacts, but market sentiment may stabilize as demand rebounds, particularly in construction materials and plates [3]. - Long-term expectations suggest a potential recovery in steel company profitability due to anticipated production adjustments and a more relaxed supply of raw materials [3]. Summary by Sections Price Trends - As of April 18, steel prices have decreased, with HRB400 rebar at 3130 CNY/ton, down 40 CNY/ton from the previous week [1][10]. - Hot-rolled and cold-rolled prices also saw declines, with hot-rolled at 3240 CNY/ton (down 90 CNY/ton) and cold-rolled at 3790 CNY/ton (down 100 CNY/ton) [1][10]. Production and Inventory - Total steel production increased to 8.73 million tons, with a slight decrease in rebar production to 2.29 million tons [2]. - Social total inventory of major steel products decreased by 518,700 tons to 11.24 million tons [2]. Profitability - The report notes a decline in steel margins, with rebar, hot-rolled, and cold-rolled margins decreasing by 17 CNY/ton, 45 CNY/ton, and 107 CNY/ton respectively [1][2]. Investment Recommendations - The report recommends several companies for investment, including Baosteel, Hualing Steel, and Nanjing Steel in the general steel sector, and CITIC Special Steel and Yongjin in the special steel sector [3]. - It also suggests monitoring high-temperature alloy companies like Fushun Special Steel [3]. Key Company Forecasts - The report provides earnings per share (EPS) and price-to-earnings (PE) ratios for various companies, indicating a generally favorable outlook for the recommended stocks [3].