Core Viewpoint - The black metal sector experienced a general price increase, driven by optimistic market sentiment regarding future policies and adjustments in property purchase restrictions in Shanghai [6][7]. Group 1: Market Sentiment and Policy Expectations - The upcoming Two Sessions have led to positive market expectations for future policies, further supported by Shanghai's reduction of property purchase restrictions [7]. - Steel companies in North China have received temporary self-reduction notices for emissions during the Two Sessions in 2026, which is expected to create anticipation for future supply-side policy adjustments [7]. Group 2: Price Movements and Inventory Levels - The black metal sector had previously shown restrained performance during a general price increase phase, with valuations at low levels. Improved policy expectations and increased risk appetite have contributed to a slight price recovery [7]. - During the holiday period, the supply-demand imbalance for steel was not prominent, with average daily inventory accumulation for five major materials at a five-year low, while external material inventories remained high [7]. Group 3: Raw Material Supply and Demand - The supply and demand for coking coal are generally stable, with attention on the progress of domestic coal production resumption. However, iron ore shipments remain high, leading to significant inventory pressure that may require price suppression to clear excess supply [7]. - Overall, the market's changing expectations regarding policies have led to optimism about profit improvements in the steel industry, which has driven the rise in black metal prices, although the actual effects of these policies still need evaluation [7].