Xinjiang Baodi Mining (SH:601121) Huachuang Securities·2025-06-22 09:49Investment Rating - The report maintains a "Recommendation" rating for the steel industry [6]. Core Viewpoints - The steel industry is experiencing a bottoming out in the off-season, with a focus on bottom-fishing opportunities. Cost reductions are accelerating, leading to a slight improvement in industry profitability [2][3]. - As of June 20, 2025, the prices for five major steel products are reported as follows: rebar at 3,201 CNY/ton, wire rod at 3,540 CNY/ton, hot-rolled coil at 3,210 CNY/ton, cold-rolled coil at 3,613 CNY/ton, and medium-thick plate at 3,398 CNY/ton, with weekly changes of -0.21%, -0.13%, +0.37%, -0.26%, and -0.68% respectively [2][17]. - The average daily pig iron output from 247 steel enterprises is 2.4218 million tons, with a week-on-week increase of 0.057 million tons, and the capacity utilization rate of blast furnaces is 90.79%, up by 0.21 percentage points week-on-week [2][3]. - The total steel inventory is 13.3839 million tons, down by 156,700 tons week-on-week, with social inventory decreasing by 143,700 tons to 9.1311 million tons [2][3]. Summary by Sections 1. Market Review - The report indicates that the steel market is currently in a seasonal off-peak period, with prices stabilizing at the bottom [2][3]. 2. Key Industry Data Tracking (a) Production Data - The production of five major steel products has shown a slight recovery, primarily driven by the restoration of steel mill profits [3][4]. (b) Consumption of Five Major Steel Products - The total consumption of the five major steel products reached 8.8418 million tons, with a week-on-week increase of 1.608 million tons [2][3]. (c) Inventory Situation - The report highlights a decrease in both social and steel mill inventories, indicating a tightening supply situation [2][3]. (d) Profitability - The profitability of the steel industry is showing signs of recovery, with 59.31% of sampled steel companies reporting profits, an increase of 0.87 percentage points week-on-week [2][3]. 3. Company Insights - Baodi Mining is planning to acquire an 82% stake in Congling Energy, which will enhance its iron ore resource control by approximately 21.75% [4]. 4. Stock Insights - The report emphasizes the stabilization and recovery of profits in the steel industry, suggesting attention to future supply regulation policies that may provide elasticity [5].