1. Report Industry Investment Ratings - No industry investment ratings are provided in the reports. 2. Core Views of the Reports Steel Industry - The steel market shows a situation where the previous week's data indicated a decline in apparent demand, a slowdown in destocking, and continued production cuts by steel mills. The decline in hot metal production restrains iron ore. Considering the high steel inventory and the winter storage pressure, the hot metal production of steel mills for the January contract is likely to fall rather than rise. The iron element supply on the January contract is turning to be loose, and the iron element chain has the basis for negative feedback, with interference from the steel mills' winter iron ore replenishment. The carbon element supply is tight, and it is expected that the iron element will be generally weaker than the carbon element. Unilaterally, pay attention to the performance of the support levels of 3000 for rebar and 3200 for hot - rolled coils. The strategy of long coking coal and short hot - rolled coils arbitrage can continue to be held [2]. Iron Ore Industry - The iron ore futures rebounded in the afternoon yesterday. On the supply side, the global iron ore shipments decreased last week, and the arrivals at 45 ports dropped significantly. Based on recent shipment data, the average future arrivals are expected to increase. On the demand side, the profit margins of steel mills have declined significantly, the hot metal production has dropped from a high level, and the steel mills' replenishment demand has weakened. The steel production and inventory decreased slightly, and the apparent demand dropped significantly. The port inventory increased, the port clearance volume increased slightly, and the steel mills' equity iron ore inventory rose. Looking ahead, due to the weak steel prices, the profitability of steel mills will continue to decline, and the weak demand will force iron ore to operate weakly. Rio Tinto's third - quarter report shows that the overall commissioning progress of the Simandou project is faster than expected. It is recommended to short iron ore futures on rallies and conduct an arbitrage of long coking coal and short iron ore [5]. Coking Coal and Coke Industry - For coking coal, the futures showed a volatile decline. The Shanxi spot auction prices were strong, and the Mongolian coal quotes fluctuated with the futures. The domestic coking coal market continued to be strong, and downstream still had replenishment demand, but the rapid rise in coking coal made traders cautious. Some shut - down coal mines in Shanxi, Luliang, Linfen, and Wuhai began to resume production, and it is expected that the coking coal supply will increase, but the production recovery is limited. Since November, the Mongolian coal customs clearance has increased significantly, the port inventory has rebounded from a low level, and the Mongolian coal quotes have loosened. The demand for coking coal has weakened due to the decline in hot metal production caused by profit decline and environmental restrictions. The coal mines and steel mills reduced inventory, while the coking plants, coal washing plants, ports, and terminals increased inventory. The strategy is to be cautiously bullish on the future market, and it is recommended to go long on coking coal 2601 on dips in the range of 1250 - 1350 and conduct an arbitrage of long coking coal and short coke, while guarding against the negative feedback risk caused by falling steel prices. - For coke, the futures also showed a volatile decline. The spot market had a different rhythm from the futures. The port trade quotes were stable, and the mainstream coking enterprises' third - round price increase was implemented, and the fourth - round increase was initiated. The coking coal price is strong, providing cost support for coke, but coking enterprises still face losses after the price increase, and their production has decreased. The demand for coke has been affected by environmental restrictions in Tangshan and Shanxi, resulting in a significant decline in hot metal production, weak steel prices, and low steel mill profits. The coking plants, ports, and steel mills all reduced inventory slightly, and the overall inventory decreased slightly from the middle level. Coke is still expected to increase in price due to cost support. It is recommended to go long on coke 2601 on dips in the range of 1700 - 1850 and conduct an arbitrage of long coking coal and short coke, while guarding against the negative feedback risk caused by falling steel prices [8]. 3. Summaries According to Relevant Catalogs Steel Industry Steel Prices and Spreads - Rebar: The spot prices in East China, North China, and South China remained unchanged at 3190 yuan/ton, 3200 yuan/ton, and 3260 yuan/ton respectively. The 05, 10, and 01 contracts increased by 7 yuan/ton, 4 yuan/ton, and 10 yuan/ton respectively [2]. - Hot - rolled coils: The spot price in East China increased by 10 yuan/ton to 3270 yuan/ton, while those in North China and South China remained unchanged. The 05, 10, and 01 contracts increased by 9 yuan/ton, 7 yuan/ton, and 7 yuan/ton respectively [2]. Cost and Profit - The billet price remained at 2940 yuan/ton, and the slab price remained at 3730 yuan/ton. The profits of various regions and production methods all decreased [2]. Production - The daily average hot metal production was 234.2 tons, a decrease of 2.1 tons (- 0.9%). The production of five major steel products was 856.7 tons, a decrease of 18.5 tons (- 2.1%). The rebar production was 208.5 tons, a decrease of 4.1 tons (- 1.9%), including a decrease in electric - furnace production by 0.3 tons (- 0.9%) and a decrease in converter production by 3.8 tons (- 2.1%). The hot - rolled coil production was 318.2 tons, a decrease of 5.4 tons (- 1.7%) [2]. Inventory - The inventory of five major steel products was 1503.6 tons, a decrease of 10.2 tons (- 0.7%). The rebar inventory was 592.5 tons, a decrease of 10.0 tons (- 1.7%), and the hot - rolled coil inventory was 410.5 tons, an increase of 3.9 tons (0.9%) [2]. Transaction and Demand - The building materials trading volume was 10.8 tons, an increase of 2.1 tons (23.8%). The apparent demand for five major steel products was 866.9 tons, a decrease of 49.5 tons (- 5.4%). The apparent demand for rebar was 218.5 tons, a decrease of 13.7 tons (- 5.9%), and the apparent demand for hot - rolled coils was 314.3 tons, a decrease of 17.6 tons (- 5.3%) [2]. Iron Ore Industry Iron Ore - Related Prices and Spreads - The warehouse - receipt costs of various iron ore types decreased, and the basis of the 01 contract for some types changed. The 5 - 9, 9 - 1, and 1 - 5 spreads also changed [5]. Spot Prices and Price Indexes - The spot prices of some iron ore types at Rizhao Port increased slightly, while the Singapore Exchange 62% Fe swap and the Platts 62% Fe index decreased [5]. Supply - The 45 - port arrivals (weekly) were 2741.2 tons, a decrease of 477.2 tons (- 14.8%). The global shipments (weekly) were 3069.0 tons, a decrease of 144.8 tons (- 4.5%). The national monthly import volume increased by 10.6% [5]. Demand - The daily average hot metal production of 247 steel mills (weekly) was 234.2 tons, a decrease of 2.1 tons (- 0.9%). The 45 - port daily average port clearance volume increased slightly. The national monthly pig iron and crude steel production decreased [5]. Inventory - The 45 - port inventory increased by 1.3%, and the 247 steel mills' imported iron ore inventory increased by 1.8% [5]. Coking Coal and Coke Industry Coking Coal - Related Prices and Spreads - The coking coal 01 and 05 contracts decreased, and the basis and spreads also changed. The sample coal mine profit decreased [8]. Overseas Coal Prices and Upstream Coking Coal Prices - The Australian Peak Downs coking coal arrival price remained unchanged, and the coking coal (Shanxi warehouse - receipt) price increased slightly [8]. Supply - The coking coal production of Fenwei sample coal mines and the coking coal production of the whole sample coking plants decreased. The coke production of 247 steel mills and the whole sample coking plants also decreased [8]. Demand - The hot metal production and coke production decreased [8]. Inventory - The coking coal inventory of various entities changed, with some increasing and some decreasing. The total coke inventory and the inventory of various entities also changed [8].