Investment Rating - The report maintains a recommendation for the steel industry, indicating an improvement in supply and demand during the peak season, leading to a slight recovery in industry profitability [2][4]. Core Insights - The steel industry is experiencing a dual increase in supply and demand, with pig iron production rising above 2.3 million tons and consumption of the five major steel products reaching 8.8797 million tons, a week-on-week increase of 194,900 tons. This improvement in supply and demand has led to a rebound in steel prices and a slight expansion in corporate profitability. However, the overall demand recovery remains slow, resulting in inventory levels still under pressure compared to the same period last year, leading to cautious market sentiment [3][4]. - The report highlights that the upstream raw material-related stocks have performed relatively stable, while the prices of major steel products have shown slight fluctuations. The steel industry is currently in a phase of stable supply and demand, with a potential for recovery in industry prosperity as policies on both supply and demand sides are implemented [4][5]. Industry Data Tracking Production Data - As of March 27, the total production of the five major steel products was 8.3958 million tons, with a week-on-week decrease of 0.24 million tons. The average daily pig iron production from 247 steel enterprises was 2.3109 million tons, a week-on-week increase of 29,400 tons. The utilization rate of blast furnace capacity was 86.63%, and the operating rate was 81.03% [10][21]. Consumption Data - The total consumption of the five major steel products reached 8.8797 million tons, with week-on-week increases in rebar (+172,800 tons), wire rod (+73,000 tons), and hot-rolled products (+31,200 tons). However, cold-rolled and medium-thick plates saw decreases of 34,000 tons and 48,100 tons, respectively [10][21]. Inventory Situation - The total steel inventory was 18.9784 million tons, a week-on-week decrease of 483,900 tons. Social inventory accounted for 13.8769 million tons, down 23.33% week-on-week, while steel mill inventory was 5.1015 million tons, down 25.06% week-on-week [10][21]. Profitability - As of March 27, the profitability of various steel products was as follows: high furnace rebar (55 CNY/ton), building steel (electric furnace, -91 CNY/ton), hot-rolled sheets (16 CNY/ton), and cold-rolled sheets (-139 CNY/ton). Approximately 43.29% of the sampled steel enterprises were profitable [10][21].

1. Report Industry Investment Rating - No information provided about the industry investment rating in the report. 2. Core Viewpoints - The iron ore market is expected to be volatile and weak. The supply side remains stable overall, with mainstream mines entering the seasonal off - season for shipments and non - mainstream mines having high recent shipments. The demand side shows that last week's hot metal output decreased slightly but remained above 2.4 million tons. In the medium term, the impact of the northern military parade production restrictions should be noted. The cumulative steel exports from January to July were 67.98 million tons, a year - on - year increase of 11.4%, continuously contributing to the growth [1][6]. 3. Summary by Directory 3.1 Transaction Data | Contract | Closing Price | Change | Change Rate (%) | Total Trading Volume (Lots) | Total Open Interest (Lots) | Price Unit | | --- | --- | --- | --- | --- | --- | --- | | SHFE Rebar | 3213 | 10 | 0.31 | 9240311 | 2947936 | Yuan/ton | | SHFE Hot - rolled Coil | 3428 | 27 | 0.79 | 3118646 | 1428587 | Yuan/ton | | DCE Iron Ore | 790.0 | 7.0 | 0.89 | 869369 | 335365 | Yuan/ton | | DCE Coking Coal | 1227.0 | 134.5 | 12.31 | 16090961 | 915031 | Yuan/ton | | DCE Coke | 1653.5 | 68.5 | 4.32 | 230503 | 53400 | Yuan/ton | [2] 3.2 Market Review - **Demand Side**: Last week, the hot metal output decreased slightly but remained above 2.4 million tons. The blast furnace operating rate of 247 steel mills was 83.75%, a 0.29 - percentage - point increase from the previous week and a 3.54 - percentage - point increase year - on - year. The blast furnace iron - making capacity utilization rate was 90.09%, a 0.15 - percentage - point decrease from the previous week and a 3.07 - percentage - point increase year - on - year. The steel mill profitability rate was 68.4%, a 3.03 - percentage - point increase from the previous week and a 63.21 - percentage - point increase year - on - year. The daily average hot metal output was 2.4032 million tons, a decrease of 0.39 million tons from the previous week and an increase of 8.62 million tons year - on - year. In the medium term, the impact of the northern military parade production restrictions should be noted [1][4]. - **Supply Side**: Last week, the overseas shipment volume decreased slightly week - on - week and was at a medium level in the same period of the past three years. The total global iron ore shipment volume was 30.618 million tons, a decrease of 1.391 million tons from the previous week. The total shipment volume of iron ore from Australia and Brazil was 25.322 million tons, a decrease of 2.237 million tons from the previous week. The inventory of imported iron ore at 47 ports across the country was 142.6727 million tons, an increase of 0.4526 million tons from the previous week. The daily average port clearance volume was 3.3645 million tons, an increase of 0.1854 million tons [1][5]. 3.3 Industry News - China Shenhua launched a large - scale asset restructuring involving 13 companies under the National Energy Group. On the evening of August 1st, China Shenhua announced that it had received a notice from its controlling shareholder, the National Energy Group, about planning major matters. It is initially considered that the company will issue shares and pay cash to purchase coal, pit - mouth coal - fired power, and coal - to - oil, coal - to - gas, and coal - chemical - related assets held by the National Energy Group and raise supporting funds [10]. - Seven departments including the central bank jointly issued the "Guiding Opinions on Financial Support for New - style Industrialization". The opinions adhere to classified policies, support and control, promote the industry to move towards the mid - high end, and prevent "involution - style" competition. They support mining enterprises to increase reserves and production of important minerals and improve the supply guarantee capacity of strategic resources under the premise of complying with national industrial policies [10]. - According to customs data, in July 2025, China imported 104.623 million tons of iron ore and its concentrates, a decrease of 1.325 million tons from the previous month, a month - on - month decrease of 1.3%. From January to July, the cumulative import of iron ore and its concentrates was 696.569 million tons, a year - on - year decrease of 2.3% [10]. - According to customs statistics, in July, China's total value of goods trade imports and exports was 3.91 trillion yuan, a year - on - year increase of 6.7%. Among them, exports were 2.31 trillion yuan, an increase of 8%; imports were 1.6 trillion yuan, an increase of 4.8%. In the first seven months, China's total value of goods trade imports and exports was 25.7 trillion yuan, a year - on - year increase of 3.5% [10]. 3.4 Related Charts - The report provides multiple charts, including those related to the futures and spot trends of rebar, hot - rolled coils, and iron ore, basis trends, steel mill profits, steel production, inventory, and other aspects, which visually display the market situation of the iron and steel industry [8][11][13].