2025-07-14 00:36Investment Rating - The report indicates a pecking order for investment ratings: aluminum > lithium > steel > copper > gold > battery > thermal coal > cement [1] Core Insights - Major steel mills in Shanxi Province are mandated to reduce production by 10-30% year-on-year in 2025, resulting in an approximate 6 million tons reduction, which is about 10% year-on-year for the entire province [1] - Shanxi Province accounted for approximately 6% of China's steel market share in 2024 [1] - The supply reform in the steel industry is progressing in a tailored manner rather than a one-size-fits-all approach [1] - The production cuts are expected to support steel prices in the second half of 2025 [1] Summary by Sections - Production Cuts: Steel mills in Shanxi Province are required to cut production by 10-30% YoY, leading to a total reduction of around 6 million tons [1] - Market Share: Shanxi Province held about 6% of the steel market share in China during 2024 [1] - Supply Reform: The ongoing supply reform is being implemented progressively and is not uniform across all mills [1] - Price Support: Anticipated production cuts are expected to bolster steel prices in the latter half of 2025 [1]