Investment Rating - The industry investment rating is maintained as "Buy" for key stocks in the steel sector [6]. Core Insights - The steel industry is entering a golden period in the capital market, characterized by capital surplus during the industrialization maturity phase. This phase is expected to enhance market valuations and profitability for leading companies [2][4]. - The report highlights a significant increase in profits for the black metal smelting and rolling industry, reaching 46.28 billion yuan, a year-on-year increase of 1370%, marking the highest growth rate among all industrial categories [2]. - The report emphasizes the importance of supply-side policies, particularly the "anti-involution" policy, which is expected to accelerate the reduction of excess supply and improve industry profitability [2][4]. Supply Analysis - Daily average pig iron production slightly increased to 2.407 million tons, with a marginal rise in long-process production [12]. - The capacity utilization rate for 247 sample steel mills is reported at 90.2%, reflecting a 0.2 percentage point increase from the previous period [18]. - The total inventory of five major steel products continues to accumulate, with a week-on-week increase of 3.0% [25]. Demand Analysis - Apparent consumption of five major steel products decreased by 1.7% week-on-week, indicating a seasonal decline in rebar demand, while hot-rolled demand showed improvement [41][52]. - The average weekly transaction volume for construction steel was 102,000 tons, down 1.1% from the previous week [43]. Price and Profit Analysis - The comprehensive steel price index increased slightly by 0.1% week-on-week, with the current index at 126.2 [72]. - The immediate gross profit margins for long-process rebar and hot-rolled products are reported as negative, indicating cost pressures despite slight price increases [72][74]. Key Stocks - Recommended stocks include: - Xinguang Steel (600782.SH) - Buy - Nanjing Steel (600282.SH) - Buy - Hualing Steel (000932.SZ) - Buy - Baosteel (600019.SH) - Buy - Jiuli Special Materials (002318.SZ) - Buy - Liugang (601003.SH) - Buy - Yongjin (603995.SH) - Buy - Changbao (002478.SZ) - Buy [9].