Core Insights - POSCO Holdings Inc. has enhanced its partnership with Yaskawa Electric to promote advanced automation in its global mobility-parts operations [1] Group 1: Partnership and Agreement - POSCO Mobility Solutions, Yaskawa, and POSCO DX signed a three-way agreement on January 14 to implement integrated robotic systems for producing drive motor cores, essential components for EVs and hybrid vehicles [2] - The collaboration will extend to POSCO Mobility Solutions' facilities in Cheonan, Pohang, and international locations in Poland, Mexico, and India [2] Group 2: Automation and Production Improvements - The planned robotic systems will automate material handling and real-time quality sorting, aiming to enhance safety, reduce manual labor, and increase production speed [3] - POSCO DX will manage system design and integration, while Yaskawa will provide high-precision robots and technical support [3] Group 3: Strategic Alignment - This initiative builds on successful pilot applications at the Pohang facility and aligns with POSCO's long-term strategy to enhance robotics, automation, and AI-driven manufacturing across its steel, battery, and industrial sectors [4] - The partnership supports the group's goal of advancing physical AI and transitioning to next-generation intelligent factories [4] Group 4: Stock Performance - Shares of POSCO Holdings Inc. (PKX) have increased by 22.6% over the past year, compared to a 48.7% rise in the industry [6]

Core Viewpoint - Jinan aims to implement an industrial strong city strategy by 2026, focusing on building a modern industrial system Group 1: Strengthening Advantageous Industries - The city will focus on electronic information, automotive, high-end software, and modern medicine industries, aiming to enhance scale, extend chains, and grow enterprises [2] - In the electronic information sector, Jinan plans to achieve an industry scale of 240 billion yuan by accelerating the construction of semiconductor and micro-display projects [2] - The automotive industry aims for a scale of 180 billion yuan, supporting companies like BYD and Geely in introducing high-end models and promoting collaborative development [2] - The high-end software sector targets a scale of 130 billion yuan, emphasizing the development of industrial software and AI applications [2] - The modern medicine industry, relying on key enterprises, aims for a scale of 52 billion yuan by enhancing various pharmaceutical sectors [2] Group 2: Cultivating Characteristic Industries - Jinan will focus on high-end CNC machine tools, robotics, specialized equipment, steel, advanced materials, and food and bio-manufacturing, aiming to create competitive industrial clusters [4] - The high-end CNC machine tools and robotics sector targets a scale of 55 billion yuan, with key projects like the industrial mother machine park [4] - The specialized equipment industry aims for a scale of 115 billion yuan, with support for leading companies and project expansions [4] - The steel industry will focus on green low-carbon transformation, targeting a scale of 165 billion yuan by developing high-value products [4] - The advanced materials sector aims for a scale of 35 billion yuan, promoting innovation and expansion in chemical and metal materials [4] - The food and bio-manufacturing industry targets a scale of 77.5 billion yuan, supporting innovative development of key enterprises [4]

Core Viewpoint - VanEck Vectors Steel ETF (SLX) offers targeted exposure to global steel producers and related businesses, focusing on companies with revenues closely linked to the steel value chain [1] Group 1: Investment Strategy - The strategy captures operating leverage to industrial production, construction, and infrastructure activity while being sensitive to raw-material input costs and environmental policy [1] - SLX serves as a tactical overlay for cyclical tilts, a satellite allocation for inflation-sensitive exposures, or a thematic sleeve aligned with infrastructure and re-shoring narratives [1] Group 2: Portfolio Behavior - Portfolio behavior typically reflects high cyclicality and factor tilts toward value and commodity beta, with quality dispersion driven by balance-sheet strength and cost positions [1] - Returns can be influenced by shifts in trade policy, currency moves, energy prices, and capital-expenditure cycles across regions [1] Group 3: Investor Profiles - Suitable investor profiles include macro allocators seeking targeted cycle expression and diversified multi-asset portfolios using sector satellites to complement broad equities [1] Group 4: Market Conditions - Regimes with improving leading indicators, supportive fiscal investment, and steepening curves tend to be favorable, while global slowdowns and margin pressure challenge results [1] Group 5: Risks - A key risk to monitor is concentration, which can amplify stock-specific and policy-related shocks [1]

Company Overview - Cleveland-Cliffs stock experienced a nearly 10% increase this week after a downgrade led to a previous drop, indicating investor interest in the stock despite recent valuation concerns [1][2] - The current stock price is $14.01, with a market capitalization of $8.0 billion [3] Stock Performance - The stock has risen over 50% in the last six months, reflecting strong market performance prior to the downgrade [2] - The stock's 52-week range is between $5.63 and $16.70, showing significant volatility [4] Industry Context - The steel industry is benefiting from increased demand in infrastructure, construction, and automotive sectors, which is driving up prices and profit margins for domestic producers [4] - Anticipation of economic recovery, potential interest rate reductions, and robust government infrastructure investment are contributing to positive sentiment in the steel sector [4] Peer Comparison - Nucor, a domestic peer, has also seen its stock rise nearly 7% since the beginning of the year, indicating a broader trend in the steel industry [5] - The upcoming earnings season will be crucial to determine if the demand is benefiting all domestic steelmakers or if the gains are specific to certain companies [5]

Core Points - Metallus has reached a new tentative agreement for a four-year contract with the United Steelworkers Local 1123 after previous agreements were rejected [1][2] - The new contract aims to balance employee needs and company priorities, ensuring job stability and supporting future success [2] - The current labor contract has been extended for an additional 14 days until February 12, 2026, allowing time for the union to communicate with its members [2] Company Overview - Metallus (NYSE: MTUS) specializes in high-performance specialty metals, manufactured components, and supply chain solutions, primarily serving industrial, automotive, aerospace & defense, and energy markets [4] - The company employs approximately 1,850 people and reported sales of $1.1 billion in 2024 [4] - Metallus has over 100 years of experience in producing high-quality steel, including alloy steel bars and seamless mechanical tubing [4] Labor Relations - The contract covers around 1,200 bargaining employees at Metallus' Canton, Ohio operations [3] - The CEO of Metallus emphasized the importance of constructive cooperation among all parties to reach a beneficial solution for employees and the company [2]

Market Overview - Major European markets closed lower due to geopolitical tensions and uncertainty surrounding French budget negotiations, with investors taking profits from recent gains [1][2] - The pan-European Stoxx 600 edged down 0.03%, with the U.K.'s FTSE 100 down 0.04%, Germany's DAX down 0.22%, and France's CAC 40 down 0.65% [3] Company Performance - In the UK market, BAE Systems, Natwest Group, Smiths Group, Schroders, National Grid, Standard Chartered, British Land Company, and The Sage Group gained between 1.4% to 2.3% [4] - Conversely, Pearson, Metlen Energy & Metals, Entain, Antofagasta, Endeavour Mining, Glencore, Anglo American Plc., and Pershing Square Holdings lost between 2% to 4% [4] - Daimler Truck Holding reported a decline in 2025 sales, contributing to its stock decline [5] - Siemens Energy saw a significant increase of over 5%, while Zalando, RWE, and Fresenius Medical Care gained between 1.5% to 1.7% [6] Notable Transactions - Kloeckner & Co shares soared over 28% following Worthington Steel's announcement of a $2.4 billion acquisition of the German steel processor [6] French Market Insights - In the French market, Kering and Essilor closed down by 4.7% and 4%, respectively, while LVMH, Stellantis, TP, and Renault lost between 2.7% to 3.1% [6][7]

Industry Overview - Earnings season is approaching for major North American steel companies, with results expected in the coming weeks [1] - Steel equities have outperformed, rising 17% over the past three months compared to the State Street SPDR S&P Metals & Mining ETF's 15%, driven by a supply-driven rally in Hot Rolled Coil (HRC) prices, which increased by 17% despite weak underlying demand [1] Market Dynamics - HRC metal margins have expanded over 20% relative to pre-tariff levels, and post-tariff mill utilization is approximately 160 basis points above historical norms [2] - Forward demand indicators are mixed as medium- and smaller-scale buyers adjust to trade uncertainty [2] Regulatory Environment - Clarity on the United States-Mexico-Canada Agreement (USMCA) and International Emergency Economic Powers Act (IEEPA) tariffs is needed to trigger larger steel-intensive projects, as the Supreme Court of the US recently deferred these matters [3] Company Projections - Price momentum is expected to continue through at least the first quarter, with projected HRC prices at $955 per ton, although upside is limited by a narrowing import arbitrage and a seasonal slowdown anticipated in summer [4] - Fourth-quarter results are expected to show weaker earnings due to seasonally lighter shipments and lagging sheet contracts, with a potential decline of up to 8% quarter-over-quarter [4] Company-Specific Insights - Nucor Corporation (NUE) is expected to outperform due to a conservative mid-quarter guide, while Cleveland-Cliffs (CLF) may report weakness from elevated costs [5] - Reliance, Inc. (RS) could exceed its fourth-quarter/first-quarter EPS guidance due to stronger pricing and lower customer pushback, despite risks from unplanned outages at Steel Dynamics's Butler mill and a transformer fire at Sinton [5] - Commercial Metals Company (CMC) reported that many large construction projects remain on hold but noted positive momentum in rebar fabrication, an area where NUE has exposure [6]

Group 1 - Worthington Steel held an investor call on January 16, featuring key executives including the President and CEO, Geoff Gilmore, and CFO, Tim Adams [2] - The call included a safe harbor statement, indicating that certain forward-looking statements are subject to risks and uncertainties [3]

Core Insights - The development of inclusive finance and the provision of convenient and high-quality financial services are key to supporting the real economy and demonstrating political and social responsibility [1] Group 1: Supply Chain Financial Services - Inner Mongolia Bank focuses on serving the real economy by targeting industries such as energy, steel, and agricultural processing, using supply chain finance to address financing challenges for small and micro enterprises [1] - By the end of 2025, the bank aims for rapid growth in its supply chain finance business, with targeted products like "Steel Financing" and "Cloud Chain Loan" expected to reach a loan balance of 1.13 billion yuan, an increase of 82.85% from the beginning of the year [1] - The bank has served 30 core enterprises and 241 upstream suppliers, effectively promoting collaborative development among small and micro enterprises in the industry chain [1] Group 2: Efficiency in Financing Processes - The financing process that previously took a week can now be completed in less than two days through the Inner Mongolia Bank's supply chain finance platform, saving companies significant financial costs [2] - The bank has provided 100 million yuan in financing to small and micro enterprises linked to Baosteel Wante Steel Co., which has over a hundred upstream suppliers [2] - Other branches have also supported 30 core enterprises, providing over 1.5 billion yuan in financing through similar methods, enhancing efficiency and reducing costs for businesses [2] Group 3: Support for Agricultural Industries - The corn industry is crucial for national food security, and Inner Mongolia Bank is extending its supply chain finance services to support corn processing enterprises [3] - The bank has conducted market research and developed financial service plans based on the needs of core enterprises and their upstream clients, providing 250 million yuan in credit to core enterprises and 380 million yuan to corn storage enterprises [3] - Loans totaling over 71 million yuan have been issued to support corn planting, injecting financial resources into weaker links of the industry chain [3] Group 4: Financial Solutions for Public Utilities - Water service companies face financial pressures due to increased operational costs and infrastructure needs, prompting Inner Mongolia Bank to offer tailored financial solutions [4] - The bank provided a credit limit of 50 million yuan to Baotou Water Supply Co., supporting 18 upstream clients with over 73 million yuan in loans [4] - This initiative alleviates liquidity pressures for the company while addressing financing challenges for upstream suppliers [4] Group 5: Commitment to Local Economic Development - Inner Mongolia Bank has issued over 10 billion yuan in cumulative credit through supply chain finance, demonstrating its commitment to supporting local economic development [5] - The bank plans to continue enhancing its supply chain financial services and improve the quality of services for small and micro enterprises and the real economy [5]

Core Viewpoint - Hebei Province's Qian'an City is focusing on the high-end, intelligent, and green development of the steel industry, significantly enhancing the quality and strength of its steel sector [1] Group 1: Industry Development - Qian'an City is promoting the steel industry's transformation towards high-end manufacturing, emphasizing shared production, inspection, collective procurement, and logistics trade [1] - The city is establishing a steel-sharing economic industrial park that integrates "Internet + IoT + big data," creating an "online + offline" sharing platform [1] Group 2: Product Focus - The advanced steel manufacturing industrial cluster in Qian'an has developed four high-end product segments: electrical steel, high-end rolled sheets, premium wire rods, and specialty steel [1] - The proportion of premium steel products has reached 46% [1]