Supply - Production shows signs of stabilization, with molten iron increasing by 0.03 million tons to 2.26 million tons. The total output of five major materials decreased by 1.15 million tons to 7.968 million tons, with rebar increasing by 2.7 million tons to 1.844 million tons and hot-rolled coil increasing by 1.6 million tons to 2.935 million tons [2] - Environmental factors and year-end maintenance in December significantly impacted production, with a decrease of nearly 200,000 tons from high levels, representing a 6.7% month-on-month decline. A recovery in production is expected in January after maintenance, but limited by seasonal demand and inventory conditions [2] Demand - Seasonal weakness in demand is evident, with December's apparent demand at 8.45 million tons, down from 8.75 million tons in November and showing a significant year-on-year decline from 8.75 million tons. The apparent demand for five major materials decreased by 1.7 million tons to 8.336 million tons, with rebar demand down by 60,000 tons to 2.027 million tons, while hot-rolled coil demand increased by 87,000 tons to 3.07 million tons [3] Inventory - Steel mills have slowed down production cuts, but due to significant reductions last week, the inventory of hot-rolled coils has decreased rapidly. The inventory of five major materials decreased by 370,000 tons to 12.57 million tons, with rebar inventory down by 180,000 tons to 4.34 million tons and hot-rolled coil inventory down by 135,000 tons to 3.77 million tons [4] Market Outlook - Black metals have surged, with coking coal hitting the limit and rebar and hot-rolled coil futures rising by 80-90 yuan per ton, marking the largest daily increase since August. The overall strength in coal-related commodities is noted, while the fundamental steel market continues to see production cuts and inventory reductions, with rebar maintaining a significant supply-demand gap [5] - The expected price range for rebar is between 3,000 and 3,200 yuan, while hot-rolled coil is expected to fluctuate between 3,150 and 3,350 yuan [5]