Core Viewpoint - The steel market shows signs of slight price strengthening, with hot-rolled steel outperforming rebar, indicating a resilient demand despite seasonal trends [1][6]. Supply - The production of pig iron has exceeded expectations, increasing by 2.6% to 2.424 million tons, while scrap steel consumption remains stable at 0.505 million tons. The total output of the five major steel products decreased by 4.5% to 8.68 million tons, with rebar production down by 7.6% to 2.096 million tons and hot-rolled steel down by 2% to 3.21 million tons [3]. - The year-on-year growth rate of iron element production from January to June is 3.2%, with an estimated annual growth rate of 3.3% due to high base effects from the previous year [3]. Demand - The apparent demand for the five major steel products remains stable at high levels, with a slight decrease of 3,000 tons to 8.7 million tons in the latest period. The demand in June and July did not decline further, indicating better-than-expected performance during the off-season [4]. Inventory - Recent production has fluctuated with apparent demand, leading to stable inventory levels. The inventory of the five major steel products decreased by 20,000 tons to 13.377 million tons, with rebar inventory increasing by 30,000 tons to 5.43 million tons, while hot-rolled steel inventory decreased by 26,500 tons to 3.43 million tons [5]. Cost and Profit - On the cost side, coking coal production in Shanxi is gradually recovering, but recent strong demand from traders has kept spot prices firm. Iron ore inventory is expected to see slight accumulation due to increased shipments, but the price elasticity remains weak due to expectations of ample supply [2]. - Profit margins for steel products rank from highest to lowest as follows: steel billet, hot-rolled steel, rebar, and cold-rolled steel [2]. Market Sentiment - Weekly data indicates a slight decrease in production following apparent demand, with overall demand showing minimal decline. The demand for hot-rolled steel remains high year-on-year, while rebar demand has decreased [6]. - Steel mills are purchasing iron ore, leading to a continuous decline in port inventories, which, combined with resilient seasonal demand, supports an upward trend in iron ore prices. The sentiment for commodity trading remains positive, with expectations of supply contraction [6]. - Resistance levels for rebar and hot-rolled steel have been cleared, with the next resistance levels to watch at 3,250 and 3,400 yuan respectively [6].