Report Summary 1) Report Industry Investment Rating No information provided. 2) Report's Core View - Steel prices are expected to have increased short - term volatility and overall strong performance [2] 3) Summary by Content - On July 30, the China Metal Materials Circulation Association issued an initiative to resist "involution - style competition" and promote the scientific and orderly development of the steel circulation industry, advocating fair competition based on product quality, service value, and technological innovation [1] - This week, the average hot - metal cost of mainstream sample steel mills in Tangshan was 2097 yuan/ton (ex - tax), and the average billet cost was 2843 yuan/ton (tax - included), up 35 yuan/ton week - on - week. Compared with the current billet price of 3180 yuan/ton, the average profit per ton of steel mills was 337 yuan/ton, up 15 yuan/ton week - on - week [1] - From July 1 - 27, the retail sales of the national passenger vehicle market were 1.445 million units, a 9% increase compared to the same period last July, a 19% decrease compared to the same period last month. The cumulative retail sales since the beginning of this year were 12.346 million units, a 11% increase year - on - year [1] - Yesterday, finished products first rose and then fell. At night, they reached a new high during the rebound, and then fluctuated and declined in the morning. Currently, the downstream demand for finished products is weak, especially for building materials in the off - season, and rainfall in many places has a great impact on construction sites. However, the macro - sentiment is strong, and anti - involution policies support prices [1]

Core Viewpoint - The China Metal Materials Circulation Association has issued an initiative to resist "involution-style competition" and promote a scientific and orderly development of the steel circulation industry, emphasizing a shift from price wars to value-based competition [1] Group 1: Rational Competition - The industry is urged to adhere strictly to the Anti-Unfair Competition Law of the People's Republic of China and to resist unfair practices such as dumping below cost, damaging reputation, and stealing trade secrets [1] - The association advocates for healthy competition based on product quality, service value, and technological innovation [1] Group 2: Maintaining Reasonable Profits - The industry is encouraged to recognize that sustainable operations are fundamental to development, moving away from short-sighted behaviors like "exchanging volume for price" and "drinking poison to quench thirst" [1] - There is a call to collectively maintain reasonable price levels that align with market rules and cost structures, ensuring companies can secure reasonable profits and necessary investments in research, environmental protection, and safety [1]

Core Viewpoint - The China Metal Materials Circulation Association has issued a proposal to resist "involution-style" vicious competition and promote a scientific and orderly development of the steel circulation industry [1] Group 1: Industry Competition - The proposal emphasizes the need to abandon "involution-style" competition and strictly adhere to the Anti-Unfair Competition Law of the People's Republic of China [1] - It calls for a firm resistance against unfair practices such as selling below cost, defaming reputation, and stealing trade secrets [1] - The association advocates for healthy competition based on product quality, service value, and technological innovation [1] Group 2: Industry Collaboration - The proposal encourages strengthening industry information exchange and risk warning to avoid blind expansion or irrational order grabbing [1] - It promotes exploring mutually beneficial cooperation models in logistics, warehousing, and processing to reduce overall social costs [1] - The association firmly opposes behaviors such as mutual defamation, malicious price cutting, and non-compliant order grabbing, aiming to avoid falling into the "zero-sum game" trap [1]

Core Viewpoint - The meeting organized by the China Metal Materials Circulation Association aims to discuss the development of the steel circulation industry, emphasizing the importance of digitalization and collaboration among member enterprises to enhance competitiveness and resilience in the face of challenges [1][8]. Group 1: Meeting Overview - The meeting was successfully held in Shanghai, hosted by the China Metal Materials Circulation Association and organized by the Find Steel Industry Internet Group [1]. - Key figures in attendance included Chen Leiming, the Party Secretary of the Association, and various leaders from member companies, who gathered to discuss the industry's future [3][6]. Group 2: Key Discussions and Initiatives - Wang Dong, the founder and CEO of Find Steel, highlighted the company's focus on enhancing supply chain efficiency through digital technology and expressed gratitude for the support from the Association [6]. - Chen Leiming emphasized the need for member enterprises to avoid vicious competition and to actively pursue international collaboration and innovation in the context of the "14th Five-Year Plan" [8]. - The meeting reviewed and approved several important proposals, including the adjustment of membership fees and the establishment of new branches [12]. Group 3: Future Outlook and Trends - The meeting featured discussions on industry trends, strategies for steel circulation enterprises, and the impact of AI on the steel industry [12]. - Experts shared insights on the challenges and opportunities in the domestic and international steel markets for 2025, as well as methodologies for value realization in steel supply chains [24][26]. - The event concluded with a consensus on the need for collaboration and innovation to drive high-quality development in the steel industry [30].

Core Viewpoint - The company, Wukuang Development, reported a positive performance in Q1 2025 despite challenges in the steel industry, focusing on stability and operational efficiency [1][2]. Financial Performance - In Q1 2025, Wukuang Development achieved revenue of 12.357 billion yuan and a net profit of 67 million yuan, an increase of 175 million yuan year-on-year [1]. - The operating cash flow also improved, indicating strong operational resilience and risk management capabilities [1]. Business Segments - The raw materials segment saw significant growth, with iron ore sales reaching approximately 3.74 million tons (up 32% year-on-year), coke sales at about 230,000 tons (up 53%), manganese ore sales at around 400,000 tons (up 29%), manganese alloy sales at 140,000 tons (up 120%), and scrap steel sales at 360,000 tons (up 7%) [1]. - The steel segment reported a supply of approximately 1 million tons of steel for engineering projects (up 6%) and a total steel sales volume of about 1.94 million tons [1]. Supply Chain and Logistics - The company accelerated its digital transformation in the supply chain, enhancing the integration of warehousing, transportation, and distribution systems [2]. - The logistics park processed about 290,000 tons (up 4%) and achieved a throughput of approximately 3.48 million tons (up 20%) [2]. - Other business areas, including logistics, bidding, and insurance brokerage, maintained steady growth [2]. Outlook - The company anticipates improved steel demand in Q2 2025 due to the traditional construction peak season and the effects of growth-stimulating policies [2]. - Despite ongoing risks in the black metal circulation sector, Wukuang Development plans to control business risks while accelerating turnover, expanding upstream and downstream channels, and seizing market opportunities to ensure stable operations [2].