Investment Rating - The report maintains a "Recommended" investment rating for the steel industry [1]. Core Insights - The "Steel Industry Stable Growth Work Plan (2025-2026)" has been released, aiming for an average annual growth of around 4% in the industry's added value over the next two years. This plan emphasizes "stabilizing growth and preventing internal competition," guiding structural adjustments and high-quality development in the steel sector [12][14]. - The report highlights the acceleration of digital transformation in the steel industry, with significant investments in AI and digital technologies by leading companies, indicating a shift towards data-driven operations [27][28]. Summary by Sections 1. Review of 2021 Steel Supply-Side Capacity Regulation - In 2021, China's crude steel production fell to 1.035 billion tons, a year-on-year decrease of approximately 2.8%, due to stringent capacity control measures aimed at achieving carbon neutrality goals [4][8]. - The profitability of the steel industry improved significantly, with total profits in the black metal smelting and rolling processing industry reaching 424.09 billion yuan, a year-on-year increase of 72.1% [9][10]. 2. Stable Growth Work Plan Released, Leaders Benefit from Production Regulation - The "Stable Growth Work Plan" sets a target for the steel industry's added value to grow by about 4% annually from 2025 to 2026, focusing on economic stability and balanced market supply and demand [12][14]. - The plan emphasizes precise control of capacity and production, promoting industry transformation and upgrading, which will benefit leading steel companies [15][16]. 3. Accelerated Digital Transformation, AI + Steel Gaining Momentum - The digital transformation in the steel industry is expected to significantly enhance overall digital levels by 2026, with a focus on integrating new information technologies [19][20]. - Leading companies like Baosteel and Shougang are actively pushing forward their AI and digital transformation initiatives, with Baosteel planning to implement over 300 AI application scenarios by 2025 [27][28]. 4. Investment Recommendations - The report suggests focusing on leading companies such as Shougang, Hebei Steel, and CITIC Special Steel, as they are expected to benefit from the ongoing capacity regulation and industry transformation [31].

Core Viewpoint - The recent report from China Galaxy highlights the "precise control of capacity and output" and "industry transformation and upgrading" as key development directions for the steel industry in the context of ongoing supply-side reforms [1][3]. Summary by Sections Industry Overview - In 2021, China's steel production faced significant supply-side capacity control measures, leading to a historic year-on-year decline in crude steel output by approximately 2.8%, reaching 1.035 billion tons [2]. - The combination of strong demand and strict production controls resulted in domestic steel prices rising sharply, maintaining historical highs, and the total profit for the black metal smelting and rolling industry reached 424.09 billion yuan, a year-on-year increase of 72.1% [2]. Policy Developments - The "Steel Industry Steady Growth Work Plan (2025-2026)" was jointly issued by multiple government departments, setting an average annual growth target of around 4% for the steel industry's added value over the next two years [3]. - The plan emphasizes "steady growth and prevention of internal competition," providing a clear path for structural adjustment and high-quality development in the steel sector [3]. Digital Transformation - The work plan focuses on industry upgrades, advocating for increased effective investment, modernization of processes and equipment, and accelerated digital transformation [4]. - By 2026, the steel industry aims to significantly enhance its digitalization level, integrating new information technologies deeply into the steel industry, transitioning from isolated applications to a comprehensive digital development approach [4]. Investment Recommendations - The report suggests that in the context of ongoing supply-side reforms, the steel industry's capacity will continue to concentrate on high-quality leading companies, with a focus on industry leaders and performance improvements [5]. - Recommended companies for investment include Shougang Group, Hebei Iron and Steel Group, and CITIC Special Steel [5].

Core Viewpoint - The steel industry in China is undergoing a significant digital transformation driven by artificial intelligence, which is essential for high-quality development and efficiency improvements [1][4][6]. Digital Transformation Initiatives - The China Iron and Steel Association has prioritized digital transformation as one of the three major projects for the industry, launching a three-year action plan [1]. - 95.1% of steel companies have integrated digital transformation strategies into their overall development plans, with significant investments in smart upgrades [2][6]. Technological Advancements - Shougang's cold-rolled company has been recognized as a "lighthouse factory" due to its implementation of advanced technologies such as 5G, AI, and big data, resulting in a 21.2% increase in production efficiency and a 35% reduction in product defect rates [2]. - Baowu Steel has initiated a new digital transformation strategy marked by "AI+", aiming to create over 1,000 AI-enabled application scenarios within three years [3]. Industry Challenges and Solutions - The steel industry faces challenges related to the "black box" nature of production processes, which can hinder efficiency and quality [4][5]. - The introduction of "human-machine hybrid intelligence" models aims to address these challenges by enabling high-fidelity predictions and optimizing production processes [5]. Future Prospects - The application of AI in the steel industry is expected to expand, enhancing production efficiency, quality control, and supply chain management [6]. - The development of an AI ecosystem that promotes collaboration among steel companies, research institutions, and technology service providers is anticipated to drive the industry's transition towards high-end, intelligent, and green development [6][7]. Policy and Strategic Focus - The China Iron and Steel Association will continue to focus on AI and intelligent technology applications to reshape productivity, emphasizing low-carbon integration and cost-effective technology promotion [7]. - The core value of AI in the steel industry is to create a new paradigm of "human-machine collaboration," enhancing operational stability and continuous system optimization [7].

8月21日晚间，山东钢铁（600022）发布2025年半年报。上半年，在钢铁行业供需压力犹存、市场行情 整体下行的背景下，山东钢铁紧紧围绕"变革求生"管理主题，锚定"扭亏为盈"根本目标，全力推 进"1+6+N"变革求生体系，经营业绩延续了一季度良好发展态势，归母净利润实现扭亏为盈。 市场与产品结构同步优化。公司坚定推进"近地化、终端化、高端化、国际化"战略，近地化销售占比提 升11个百分点，终端直供比例提高8.6个百分点，物流成本显著降低；钢材出口量达64.26万吨，同比增 长3.71%。产品结构持续向高附加值领域延伸，公司累计开发47个新产品，推广量34.4万吨，独有领先 产品比例升至8.4%，成功完成比亚迪（002594）、中国重汽（000951）、沙特NPC等12项二方认证， 首次实现向长城汽车（601633）、奇瑞商用车供货，研发投入不断加强，"超大宽厚比薄规格中厚钢板 炉卷轧线核心技术创新及产业化应用"等多项科技成果获省级以上奖项。 绿色低碳和数智化转型协同推进。公司环保绩效维持A级，极致能效成果显著，济南钢城基地吨钢综合 能耗同比降低6.2千克标煤；日照基地吨钢综合能耗同比降低21.9千克标煤；组 ...

Core Insights - The integration of AI in the steel industry is seen as a crucial step towards achieving high-end, intelligent, and green development, as emphasized by industry leaders [1][2]. Group 1: Digital Transformation Initiatives - The China Iron and Steel Association has prioritized digital transformation as one of the three major projects in the industry, launching a three-year action plan for digital transformation [1]. - The association has released guidelines for the construction of intelligent manufacturing standards and digital transformation projects in the steel industry [1]. Group 2: AI Applications and Innovations - AI applications in the steel industry have shown promising results in optimizing production processes, quality control, and supply chain management [1]. - The "human-machine hybrid intelligence" model proposed by Northeast University aims to address the "black box" nature of steel production, enabling high-fidelity online predictions throughout the entire process [2]. Group 3: Environmental Sustainability - The development of AI in the steel sector is expected to promote green and sustainable practices, contributing to energy conservation and environmental protection [1]. - The establishment of a cross-enterprise and cross-industry AI ecosystem is anticipated to enhance collaboration among steel companies, upstream and downstream enterprises, research institutions, and technology service providers [1]. Group 4: Technical Advancements - The shift from experience-driven to intelligent decision-making in ironmaking is highlighted as a key trend, with mixed intelligence empowering the process [3]. - A new intelligent steelmaking system has been developed that combines knowledge-driven and data-driven approaches to address traditional challenges in steel production [3].

Core Viewpoint - The "AI + Steel" technology conference held in Beijing highlighted the potential of artificial intelligence in transforming the steel industry, focusing on optimizing production processes, quality control, and supply chain management, while promoting sustainable development and collaboration across sectors [1][3]. Group 1: Conference Overview - The conference was organized by Northeastern University and the Metallurgical Industry Information Standards Research Institute, attracting significant attention with nearly 15,000 online viewers [1]. - Key representatives from various sectors, including government, academia, and industry, participated in the event, emphasizing the importance of AI in the steel sector [2]. Group 2: AI Applications in Steel Industry - AI has shown promising applications in optimizing production processes, enhancing quality control, and improving supply chain management within the steel industry [3]. - The integration of AI is expected to facilitate the transition towards intelligent and refined management of the entire steel production process, addressing challenges such as data silos and resource allocation [3][5]. Group 3: Industry Transformation Goals - The steel industry aims to shift from scale expansion to value enhancement, focusing on high-quality development through intelligent and green integration [4]. - The conference emphasized the need for a collaborative ecosystem involving steel enterprises, research institutions, and technology service providers to drive innovation and transformation [3][4]. Group 4: Future Directions and Collaborations - The establishment of a new generation of AI technologies is seen as a crucial driver for the modernization of the steel industry, with a focus on data-driven decision-making and intelligent systems [6][7]. - A cooperation agreement was signed between Baoxin Software and Northeastern University to enhance collaboration in technology projects, talent development, and the transformation of scientific achievements [7]. Group 5: Research and Development Insights - Various presentations highlighted the urgency for digital transformation in the steel industry, with a focus on low-carbon and intelligent processes [8][9]. - The development of hybrid intelligent systems that combine data, mechanisms, and expert knowledge is crucial for optimizing steel production processes and achieving sustainable practices [10][11].

Core Insights - The Chinese steel industry is transitioning from digitalization to intelligence, with AI expected to drive high-quality development [1] - The integration of AI in the steel sector is seen as a best practice for deep empowerment, given the industry's scale and urgent need for quality improvement [1][2] - The application of AI in steel production has shown positive results in optimizing processes, quality control, and supply chain management, with significant future potential [1][2] Group 1 - The steel industry is a crucial foundation for China's economy, characterized by complex processes and a need for real-time data acquisition [2] - Experts emphasize the importance of combining AI technology with the steel industry to leverage big data and enhance operational efficiency through a human-machine collaborative approach [2] - The "AI+Steel" model developed by Northeast University aims to predict performance and reduce energy consumption and carbon emissions in steel production [2] Group 2 - The development of "AI+Steel" is expected to promote sustainable practices in the steel industry, focusing on energy conservation and environmental protection [3] - The trend towards building an AI ecosystem across enterprises and industries will foster collaboration and innovation among steel companies, research institutions, and technology service providers [3]

Core Viewpoint - Shandong Steel Co., Ltd. has significantly invested in R&D and is transforming into a high-end, intelligent, and green steel production leader, aligning with the industrial development strategy of Jinan City [2][3][4] Group 1: R&D and Innovation - The company has invested over 20 billion yuan in R&D, accounting for more than 4% of its revenue [2][3] - It has established the Jinan Boutique Steel Industry Technology Research Institute and has undertaken 4 national key R&D projects and 9 provincial key R&D plans [3] - The company has developed a series of industry-leading products, including marine engineering steel and wind power steel, with the Q500MPa wind power steel plate being a global first [3] Group 2: Digital Transformation - The company is implementing information technology upgrades, utilizing big data, cloud computing, and 5G to create a smart factory environment [4] - It has launched 22 AI-related projects this year, with plans to complete at least 10 applications by the end of the year [4] - The production base has been recognized as a provincial-level smart factory [4] Group 3: Green Development - The company has invested over 14 billion yuan in green development initiatives, with more than 6 billion yuan allocated to the Jinan Steel City base [4] - It has achieved an A-level environmental performance nationwide and is actively promoting green manufacturing and products [4] - The company is focused on developing a circular economy and has established five major circular chains for efficient resource and energy utilization [4]

Core Insights - Nanjing Steel Co., Ltd. (Nanjing Steel) is leveraging advanced digital and intelligent technologies to transform its operations and enhance its competitiveness in the steel industry [1][2][4]. Group 1: Digital Transformation Initiatives - Nanjing Steel has initiated a comprehensive data governance program, achieving over 90% core data asset integration into a centralized data lake, and became one of the first listed companies in China to report digital assets exceeding 10 million yuan in 2024 [2]. - The company launched a three-year action plan called "Artificial Intelligence Hundred Scenes Thousand Models," collaborating with Huawei to build a vertical model base for the steel industry, facilitating real-time data flow and algorithm iteration [2][4]. Group 2: AI Applications in Production - Nanjing Steel has implemented an intelligent peak-valley optimization scheduling system, which improved energy utilization efficiency by 4.24 times, generating an additional 6.55 million kWh of electricity in 2024 [4]. - The company has enhanced the mechanical performance prediction of carbon-manganese low-temperature steel, increasing product performance qualification rates by over 1.5% through advanced data analysis and real-time monitoring [5]. - An AI-driven coal blending system has reduced the blending time from 1-2 days to 1-2 minutes, lowering the cost of coke by 5-10 yuan per ton [7]. Group 3: Quality Control and Process Optimization - Nanjing Steel has developed a new AI prediction engine for rolling force, enabling rapid modeling and high-precision predictions across various steel grades and conditions [7]. - The implementation of AI visual models for quality inspection has significantly improved defect detection capabilities, addressing challenges related to sample scarcity and variability [7][9]. Group 4: Future Directions and Collaborations - The collaboration with Huawei Cloud Stack is not only a technological partnership but also aims to establish a new paradigm for industrial intelligence, reflecting the broader transformation of the Chinese steel industry [9][10].