Report Overview - Report Type: Steel Daily Review [1] - Date: November 5, 2025 [2] - Research Team: Black Metal Research Team [3] 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - The steel futures market has shifted from an upward trend to a downward one due to concerns about high social steel inventories, geopolitical factors, and currency exchange rate fluctuations. The market is expected to continue its downward trend, and investors should focus on the spot market and production data [10][11]. 3. Summary by Directory 3.1 Market Review and Future Outlook 3.1.1 Spot Market and Technical Analysis - On November 4, prices in a few spot markets for rebar and hot-rolled coils declined. Rebar prices in Wuxi, Nanchang, Guangzhou, Shenyang, Hangzhou, and Changsha dropped by 10 - 20 yuan/ton, while hot-rolled coil prices in Nanjing, Jinan, Wuxi, Guangzhou, and Shenyang decreased by 10 - 20 yuan/ton [9]. - The daily KDJ indicators of the rebar and hot-rolled coil 2601 contracts continued to decline after a death cross the previous day. The daily MACD red bars of these contracts have been narrowing for three consecutive days [9]. 3.1.2 Future Outlook - After a significant rebound due to eased geopolitical tensions and improved terminal demand, the steel futures market has reversed its trend. The focus has shifted to the high social steel inventories, leading to a sharp decline [10]. - The strengthening of the US dollar, weakening of the RMB, and reduced foreign capital inflows have negatively impacted the pricing of industrial products related to domestic demand, including black metals [10][11]. - The recent sharp decline in iron ore and coking coal prices is mainly due to the accelerated production cuts by steel mills in the past two weeks, which has led to a lack of cost support for steel and a full manifestation of the negative feedback effect [11]. - The steel futures market is expected to continue its downward trend, and it is difficult to find support at previous lows. Investors should monitor the spot market and this week's production data [11]. 3.2 Industry News - From January to September 2025, the construction industry continued to contract, while the manufacturing industry grew steadily. The real estate market remained sluggish, infrastructure investment growth slowed, and various manufacturing sectors showed different trends [12]. - During the "14th Five-Year Plan" period, China's steel product structure has been optimized. The proportion of steel used in manufacturing has increased from 42% in 2020 to 50% in 2024, and is expected to exceed 50% in 2025, while the proportion used in construction has decreased from 58% to 50% and is still declining [12]. - At the end of October, the social inventory of five major steel products in 21 cities decreased slightly, but was still higher than at the beginning of the year and the same period last year [12]. - Baoshan Iron & Steel Co., Ltd. has made breakthroughs in the research and application of ultra-high-strength steel for automobiles and is actively developing aluminum and magnesium alloys for automobiles [12]. - Xining Special Steel's controlling shareholder, Tianjin Jianlong, pledged 50.2397 million shares to support the company's production and operations [12]. - China Shenhua Energy Co., Ltd. announced its semi - annual profit distribution plan for 2025 [12][13]. - As of October 31, the Ganqimao Port had completed a certain amount of import and export freight volume, mainly including coal, copper concentrate, and manganese ore [13]. - China responded to the US threat of imposing tariffs on rare earth exports, emphasizing dialogue and cooperation [13]. - OPEC expects positive oil demand and plans to maintain supply - demand balance, with a projected increase in oil demand of 1.3 million barrels per day this year [13]. - Russian coal enterprises suffered a net loss of 263.2 billion rubles from January to August 2025, with a lower proportion of profitable enterprises compared to the same period last year [13]. 3.3 Data Overview - The report provides various data charts, including spot prices, social inventories, production, and capacity utilization rates of steel products, with data sources from Mysteel and the research and development department of Jianxin Futures [15][19][23][26][29][33]

Core Viewpoint - Baosteel's third-quarter performance shows significant growth, with a net profit increase of 130.31% year-on-year and a 23.1% quarter-on-quarter rise, indicating strong operational resilience despite industry challenges [21]. Group 1: Financial Performance - The company achieved a net profit of 40.6 billion yuan in the third quarter, driven by improved sales and effective cost management [21]. - Cash flow from operating activities has significantly improved due to enhanced working capital management, with a net cash flow increase attributed to better credit management and inventory control [12][28]. - The company has repurchased shares exceeding 10 billion yuan since its listing, demonstrating a commitment to shareholder returns [7]. Group 2: Strategic Initiatives - Baosteel is focusing on AI transformation, with plans to implement AI technologies across various production processes, aiming for significant efficiency gains [3][16]. - The company has set 2024 as the "AI Year," with substantial applications already in place, such as in ironmaking and steelmaking processes [3]. - The company is committed to green and low-carbon development, actively promoting sustainability across its supply chain and setting environmental standards for suppliers [8]. Group 3: Market Position and Competitiveness - Baosteel maintains a stable market share of 50%-55% in the automotive steel sector, with ongoing efforts to enhance product innovation and cost competitiveness [15]. - The company is exploring opportunities in high-end materials and lightweight solutions to meet the growing demand in the automotive industry [9]. - Baosteel's export order volume increased by 10.9% year-on-year, with a focus on optimizing the product mix and expanding into emerging markets [12]. Group 4: Future Outlook - The company is optimistic about future growth, citing the resilience of the Chinese economy and the potential for increased demand in the steel industry [21]. - Baosteel plans to continue its strategic investments in high-value products and green technologies to enhance its competitive edge [32]. - The company is also considering dynamic stock repurchase strategies based on market conditions and shareholder interests [14].