Report Industry Investment Rating - The investment rating for the steel industry is "Positive" [2] Core Viewpoints of the Report - The steel industry is expected to see long - term improvement in supply - demand relations during the 15th Five - Year Plan period. In the short term, iron ore prices are expected to be strong due to factors such as the Iran situation and tightened iron ore procurement restrictions, strengthening the cost support for steel prices. With the long - term improvement in the supply - demand pattern, strengthened short - term cost support, and low sector valuation, the steel sector is expected to experience value restoration and has significant allocation value [3]. - Based on the judgment of the steel industry cycle, in an environment where PPI is at the bottom of the cycle, market liquidity is abundant, and risk premium is rising, the steel sector has strong "anti - involution" attributes and a large profit restoration space. High - quality steel enterprises have excellent upward elasticity from performance restoration and room for sector valuation increase from the improvement of the supply pattern. The industry still has medium - to long - term strategic investment opportunities, so the "Positive" rating for the industry is maintained [3]. Summary by Directory 1. This Week's Performance of the Steel Sector and Individual Stocks - The steel sector rose 0.20% this week, outperforming the broader market. The CSI 300 index fell 1.41% to 4502.57. The top three sectors in terms of gains were basic chemicals (3.31%), non - ferrous metals (2.60%), and comprehensive (2.41%) [10]. - Among the sub - sectors, the special steel sector fell 0.53%, the long - product sector fell 0.24%, the plate sector fell 1.02%, the iron ore sector rose 7.48%, the steel consumables sector fell 0.31%, and the trading and distribution sector rose 1.37% [12][17]. - The top three stocks in the steel sector in terms of gains were Dazhong Mining (23.30%), Tunan Co., Ltd. (7.17%), and ST Hukel (4.18%) [15] 2. This Week's Core Data Supply - As of March 27, the daily average hot metal output was 231.09 million tons, a week - on - week increase of 2.94 million tons (1.29%) and a year - on - year decrease of 2.19% [25]. - As of March 27, the blast furnace capacity utilization rate of sample steel enterprises was 86.6%, a week - on - week increase of 1.10 percentage points [25]. - As of March 27, the electric furnace capacity utilization rate of sample steel enterprises was 58.9%, a week - on - week increase of 2.30 percentage points [25]. - As of March 27, the output of the five major steel products was 743.9 million tons, a week - on - week decrease of 0.21 million tons (0.03%) [25] Demand - As of March 27, the consumption of the five major steel products was 888.0 million tons, a week - on - week increase of 19.49 million tons (2.24%) [34]. - As of March 27, the trading volume of construction steel by mainstream traders was 9.5 million tons, a week - on - week increase of 0.01 million tons (0.14%) [34]. - As of March 22, 2026, the commercial housing transaction area in 30 large and medium - sized cities was 2.088 million square meters, a week - on - week increase of 0.392 million square meters [34]. - As of March 29, the net financing of local government special bonds was 2.138 trillion yuan, a cumulative year - on - year decrease of 1.25% [34] Inventory - As of March 27, the social inventory of the five major steel products was 13.877 million tons, a week - on - week decrease of 0.2333 million tons (1.65%) and a year - on - year increase of 10.69% [40]. - As of March 27, the in - plant inventory of the five major steel products was 5.102 million tons, a week - on - week decrease of 0.2506 million tons (4.68%) and a year - on - year increase of 5.37% [40] Steel Prices - As of March 27, the general index of ordinary steel was 3450.8 yuan/ton, a week - on - week increase of 2.86 yuan/ton (0.08%) and a year - on - year decrease of 3.14% [47]. - As of March 27, the general index of special steel was 6632.9 yuan/ton, a week - on - week increase of 10.22 yuan/ton (0.15%) and a year - on - year decrease of 1.02% [47] Steel Mill Profits - As of March 27, the national average hot metal cost was 2369 yuan/ton, a week - on - week decrease of 11.0 yuan/ton [54]. - As of March 27, the profit per ton of construction steel electric furnace at normal electricity price was - 85 yuan/ton, a week - on - week increase of 1.0 yuan/ton (1.16%) [54]. - As of March 27, the profit per ton of blast furnace for rebar was 55 yuan/ton, a week - on - week decrease of 4.0 yuan/ton (6.78%) [54]. - As of March 27, the profitability rate of 247 steel enterprises was 43.29%, a week - on - week increase of 0.9 percentage points [54] Futures - Spot Basis - As of March 27, the spot basis of hot - rolled coils was - 9 yuan/ton, a week - on - week increase of 8.0 yuan/ton [62]. - As of March 27, the spot basis of rebar was 96 yuan/ton, a week - on - week decrease of 11.0 yuan/ton [62]. - As of March 27, the spot basis of coke was - 115 yuan/ton, a week - on - week increase of 7.5 yuan/ton [62]. - As of March 27, the spot basis of coking coal was 29.5 yuan/ton, a week - on - week decrease of 41.0 yuan/ton [62]. - As of March 27, the spot basis of iron ore was - 26 yuan/ton, a week - on - week decrease of 8.5 yuan/ton [62] Raw Materials: Price and Profit - As of March 20, the spot price index of Australian powder ore (62% Fe) at Rizhao Port was 776 yuan/ton, a week - on - week increase of 1.0 yuan/ton [70]. - As of March 27, the ex - warehouse price of main coking coal at Jingtang Port was 1720 yuan/ton, a week - on - week increase of 120.0 yuan/ton [70]. - As of March 27, the ex - factory price of first - grade metallurgical coke was 1715 yuan/ton, unchanged from the previous week [70]. - As of March 27, the average profit per ton of coke for independent coking enterprises was 21 yuan/ton, a week - on - week decrease of 17.0 yuan/ton [70]. - As of March 27, the price difference between hot metal and scrap steel was 13.5 yuan/ton, a week - on - week increase of 1.6 yuan/ton [70] 3. Valuation Table and Key Announcements of Listed Companies Valuation Table of Listed Companies - The table shows the closing prices, net profit attributable to shareholders, EPS, and P/E ratios of key listed companies such as Baoshan Iron & Steel Co., Ltd., Valin Steel Co., Ltd., and Nanjing Iron & Steel Co., Ltd. from 2024 to 2027 [71] Key Announcements of Listed Companies - Baodi Mining Co., Ltd. announced that several specific shareholders plan to reduce their shareholdings through centralized competitive bidding [72]. - Fangda Special Steel Co., Ltd. released its 2025 annual report, showing steel production, operating income, net profit, total assets, and net assets [73]. - Hainan Mining Co., Ltd. plans to repurchase and cancel some restricted stocks of the 2024 restricted stock incentive plan and adjust the repurchase price [73][74]. - Beijing Shougang Co., Ltd. announced the implementation results and share changes of its share repurchase [75] 4. This Week's Important Industry News - The Ministry of Finance will focus on expanding domestic demand, investing in people, and opening up and sharing, which is expected to boost steel demand and benefit steel prices [76]. - 14 provinces have announced 172 key steel industry projects, which boosts demand expectations and is beneficial to steel prices [76]. - The steel inventory has continued to decline, and the apparent demand has increased month - on - month, which supports steel prices [76]. - The steel industry reported a loss of 2.47 billion yuan from January to February, which reflects weak demand and poor profitability, suppressing market confidence and having a negative impact on steel prices [76]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 17.64 CNY based on a PE ratio of 14X for comparable companies in 2026 [3][5]. Core Insights - The company has shown a continuous growth in high-end product varieties, with a significant increase in demand for special steel products, particularly in the energy sector [9]. - The company achieved a net profit of 5.93 billion CNY in 2025, reflecting a year-on-year growth of 15.67%, despite a challenging steel market environment [9]. - The company is actively pursuing a global expansion strategy, having exported 2.3 million tons of steel in 2025, which is a 4.6% increase from the previous year [9]. Financial Performance Summary - Revenue projections for 2026-2028 are as follows: 104.46 billion CNY in 2026, 104.09 billion CNY in 2027, and 104.24 billion CNY in 2028, with a slight decline in growth rates [4]. - The gross profit margin is expected to improve from 15.2% in 2026 to 16.2% in 2028, indicating enhanced profitability [4]. - The net profit attributable to the parent company is projected to reach 6.35 billion CNY in 2026, with a growth rate of 7.2% [4]. Market Position and Competitive Landscape - The company is positioned well within the steel industry, focusing on high-end products that cater to growing sectors such as renewable energy and automotive [9]. - The company’s strategic acquisitions and global trade initiatives are expected to bolster its market presence and profitability in the coming years [9].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 17.64 CNY based on a PE ratio of 14X for comparable companies in 2026 [3][5]. Core Insights - The company has shown a continuous growth in high-end product varieties, with a significant increase in sales of high-grade products, particularly in the energy sector, which is expected to drive future profitability [9]. - The company is expanding its global footprint, achieving a steel export of 2.3029 million tons in 2025, a year-on-year increase of 4.6%, and is actively pursuing an international strategy to enhance profitability [9]. - The company has achieved a record high gross margin of 14.94% in 2025, reflecting its ability to maintain pricing power despite a decline in steel prices [9]. Financial Performance Summary - Revenue projections for 2026-2028 are as follows: 104.461 billion CNY in 2026, 104.093 billion CNY in 2027, and 104.235 billion CNY in 2028, with a slight decline in growth rates [4]. - The net profit attributable to the parent company is projected to be 6.355 billion CNY in 2026, 6.654 billion CNY in 2027, and 7.229 billion CNY in 2028, indicating a steady growth trajectory [4]. - The earnings per share (EPS) are forecasted to be 1.26 CNY in 2026, 1.32 CNY in 2027, and 1.43 CNY in 2028, reflecting an upward trend in profitability [4].

Investment Rating - The steel industry maintains an investment rating of "Positive" [2] Core Insights - The steel sector experienced a decline of 10.03% this week, underperforming the broader market, with specific segments such as special steel down 9.18% and iron ore down 10.96% [10][12] - Supply conditions show an increase in high furnace capacity utilization to 85.5%, while electric furnace utilization rose to 56.6% [24] - Demand for the five major steel products increased to 868.5 million tons, reflecting a week-on-week rise of 8.82% [34] - Social inventory of the five major steel products decreased by 12.26 million tons week-on-week, while factory inventory fell by 16.40 million tons [41] - The average price index for common steel is 3448.0 yuan/ton, with a slight week-on-week increase, while special steel is at 6622.7 yuan/ton [47] - Profit margins for rebar steel decreased to 59 yuan/ton, while electric furnace profit margins for construction steel fell to -86 yuan/ton [55] Supply Summary - As of March 20, the average daily pig iron production was 2.2815 million tons, with a week-on-week increase of 6.95% [24] - The total production of the five major steel products reached 744.1 million tons, marking a week-on-week increase of 2.41% [24] Demand Summary - The consumption of the five major steel products reached 868.5 million tons, with a week-on-week increase of 70.40 million tons [34] - The transaction volume of construction steel by mainstream traders was 94,000 tons, showing a slight decline [34] Inventory Summary - Social inventory of the five major steel products stood at 14.11 million tons, down 0.86% week-on-week [41] - Factory inventory of the five major steel products was 5.352 million tons, also down 2.97% week-on-week [41] Price & Profit Summary - The common steel price index increased by 2.56 yuan/ton week-on-week, while the special steel price index rose by 5.93 yuan/ton [47] - The profit for rebar steel decreased by 5.0 yuan/ton week-on-week, while the electric furnace profit for construction steel decreased by 8.0 yuan/ton [55] Raw Material Prices Summary - The spot price index for Australian iron ore (62% Fe) was 776 yuan/ton, with a week-on-week increase of 1.0 yuan/ton [73] - The price for coking coal at the port was 1600 yuan/ton, reflecting a week-on-week increase of 10.0 yuan/ton [73] Company Valuation Summary - Key companies in the steel sector include Baosteel, Hualing Steel, and Shougang, with projected earnings per share (EPS) and price-to-earnings (P/E) ratios indicating potential growth [74]

Investment Rating - The steel industry is rated as "Positive" [2] Core Insights - The steel sector experienced a decline of 10.03% this week, underperforming the broader market, with specific segments such as special steel down 9.18% and iron ore down 10.96% [10][12] - Supply conditions show an increase in high furnace capacity utilization to 85.5%, while electric furnace utilization rose to 56.6% [24] - Demand for the five major steel products increased to 868.5 million tons, reflecting a week-on-week rise of 8.82% [34] - Social inventory of the five major steel products decreased by 0.86% week-on-week, while factory inventory fell by 2.97% [41] - The average price index for common steel is 3448.0 yuan/ton, with a slight week-on-week increase [47] - The report anticipates a long-term improvement in supply-demand dynamics, supported by cost factors and low valuations in the steel sector [3] Supply Summary - As of March 20, the average daily pig iron production was 2.2815 million tons, with a week-on-week increase of 6.95% [24] - High furnace capacity utilization increased by 2.61 percentage points to 85.5% [24] - Electric furnace capacity utilization rose by 6.13 percentage points to 56.6% [24] - Total production of the five major steel products reached 7.441 million tons, up 2.41% week-on-week [24] Demand Summary - Consumption of the five major steel products reached 8.685 million tons, with a week-on-week increase of 8.82% [34] - The transaction volume of construction steel by mainstream traders was 94,000 tons, showing a slight decline of 3.17% [34] - The transaction area of commercial housing in 30 major cities increased to 1.696 million square meters, reflecting a week-on-week rise [34] Inventory Summary - Social inventory of the five major steel products was 14.11 million tons, down 0.86% week-on-week [41] - Factory inventory of the five major steel products was 5.352 million tons, down 2.97% week-on-week [41] Price & Profit Summary - The common steel price index is 3448.0 yuan/ton, with a year-on-year decrease of 2.78% [47] - The special steel price index is 6622.7 yuan/ton, with a year-on-year decrease of 1.30% [47] - The profit for rebar production was 59 yuan/ton, down 7.81% week-on-week [55] - The profit for electric furnace construction steel was -86 yuan/ton, down 10.26% week-on-week [55] Raw Material Summary - The spot price index for Australian iron ore (62% Fe) was 776 yuan/ton, with a week-on-week increase of 1.0 yuan [73] - The price of coking coal at the port was 1600 yuan/ton, up 10.0 yuan week-on-week [73] - The price of first-grade metallurgical coke remained stable at 1715 yuan/ton [73] Company Valuation Summary - Key companies in the steel sector include Baosteel, Hualing Steel, and Shougang, with projected earnings per share (EPS) and price-to-earnings (P/E) ratios indicating potential for growth [74]

Investment Rating - The steel industry is rated as "Positive" [2] Core Insights - The steel sector has underperformed the broader market, with a decline of 1.92% this week, while the Shanghai Composite Index rose by 0.19% [11] - The report highlights a long-term improvement in supply-demand dynamics, supported by low valuations and cost support for steel prices [4] - The report suggests that the steel sector is still undervalued, with a price-to-book (PB) ratio of 1.27x, which is at the 49th percentile historically [4] Supply Situation - As of March 13, the capacity utilization rate for blast furnaces in sample steel companies was 82.9%, down by 2.40 percentage points week-on-week [3] - Electric furnace capacity utilization increased to 50.4%, up by 29.73 percentage points week-on-week [3] - The total output of five major steel products reached 7.266 million tons, an increase of 3.87% week-on-week [3] Demand Situation - The consumption of five major steel products was 7.981 million tons, up by 15.44% week-on-week [36] - The transaction volume of construction steel by mainstream traders was 97,000 tons, an increase of 72.38% week-on-week [36] Inventory Situation - Social inventory of five major steel products was 14.233 million tons, up by 1.44% week-on-week [44] - Factory inventory of five major steel products was 5.516 million tons, an increase of 0.50% week-on-week [44] Steel Prices & Profits - The comprehensive index for ordinary steel was 3,445.4 CNY/ton, up by 1.22% week-on-week [50] - The profit for rebar produced in blast furnaces was 64 CNY/ton, down by 11.11% week-on-week [57] - The profit for electric furnace-produced construction steel was -78 CNY/ton, an increase of 2.50% week-on-week [57] Raw Material Situation - The spot price index for Australian iron ore (62% Fe) was 775 CNY/ton, up by 1.04% week-on-week [73] - The price of coking coal at Jingtang Port was 1,590 CNY/ton, down by 20 CNY/ton week-on-week [73] Investment Recommendations - The report recommends focusing on high-quality steel companies with advanced equipment and environmental standards, such as Hualing Steel, Shougang, and Shandong Steel [4] - It also suggests paying attention to companies with strong growth potential and those benefiting from the new energy cycle, such as CITIC Special Steel and Jiuli Special Materials [4]

Investment Rating - The investment rating for the steel industry is "Positive" [2] Core Insights - The report highlights that the steel sector is experiencing a supply-demand optimization driven by policies addressing "involution" competition, which is expected to improve the long-standing issues of homogenized competition and excess capacity in the industry [3] - Current inventory pressures for the five major steel products are relatively limited, with overall inventory at historically low levels and the accumulation rate slower than in previous years [3] - The report suggests that the profitability of steel companies is expected to improve, particularly for those with advanced equipment and environmental standards, as the industry undergoes a "de-involution" phase [3] Supply Situation - As of March 6, the capacity utilization rate for blast furnaces among sample steel companies is 85.3%, a decrease of 2.13 percentage points week-on-week [23] - The average daily pig iron production is 2.2759 million tons, down 5.69 thousand tons week-on-week [23] - The total production of the five major steel products is 6.995 million tons, an increase of 1.15 thousand tons week-on-week [23] Demand Situation - The consumption of the five major steel products reached 6.914 million tons as of March 6, an increase of 126.70 thousand tons week-on-week, representing a 22.44% increase [33] - The transaction volume of construction steel by mainstream traders is 57 thousand tons, up 2.17 thousand tons week-on-week, a 62.12% increase [33] Inventory Situation - The social inventory of the five major steel products is 14.031 million tons, an increase of 107.38 thousand tons week-on-week, or 8.29% [41] - The factory inventory of the five major steel products is 5.489 million tons, a decrease of 1.49 thousand tons week-on-week, or 0.27% [41] Steel Prices & Profits - The comprehensive index for ordinary steel is 3,403.9 yuan/ton, a decrease of 2.06 yuan/ton week-on-week [47] - The profit for rebar produced in blast furnaces is 72 yuan/ton, down 11.0 yuan/ton week-on-week [55] - The profit for construction steel produced in electric furnaces is -80 yuan/ton, down 17.0 yuan/ton week-on-week [55] Raw Material Situation - The spot price index for Australian iron ore (62% Fe) at Rizhao Port is 767 yuan/ton, up 17.0 yuan/ton week-on-week [71] - The price of primary metallurgical coke is 1,715 yuan/ton, down 55.0 yuan/ton week-on-week [71] Investment Recommendations - The report recommends focusing on regional leading companies with advanced equipment and environmental standards, such as Hualing Steel, Shougang, and Shandong Steel [3] - It also suggests paying attention to companies with excellent growth potential and those benefiting from the new energy cycle, such as CITIC Special Steel and Jiuli Special Materials [3]

Investment Rating - The steel industry is rated as "Positive" [2] Core Insights - The steel sector has shown a recovery in valuation, with the market performance indicating an 11.80% increase this week, outperforming the broader market [2][11] - The report highlights a significant increase in the production and utilization rates of steel, with a high furnace capacity utilization rate of 87.5% as of February 27 [3][22] - Demand for steel has seen a decline, with a total consumption of 564.7 million tons, down 10.87% week-on-week [32] - Inventory levels have increased, with social inventory rising to 1,295.8 million tons, a 9.63% increase week-on-week [40] - Steel prices have shown mixed trends, with the comprehensive index for ordinary steel at 3,406.0 yuan/ton, reflecting a slight decrease [46] Supply Situation - As of February 27, the average daily pig iron production was 2.3328 million tons, an increase of 2.79% week-on-week [22] - The capacity utilization for electric furnaces remained stable at 7.4% [22] - The total production of five major steel products was 6.984 million tons, a decrease of 1.12% week-on-week [22] Demand Situation - The consumption of five major steel products decreased to 564.7 million tons, with a notable drop in rebar sales [32][27] - The transaction volume for construction steel among mainstream traders was 35,000 tons, down 48.24% week-on-week [32] Inventory Situation - Social inventory of five major steel products reached 1,295.8 million tons, up 9.63% week-on-week [40] - Factory inventory also increased to 550.4 million tons, reflecting a 3.87% rise week-on-week [40] Price & Profit Situation - The comprehensive index for ordinary steel was reported at 3,406.0 yuan/ton, with a year-on-year decrease of 4.86% [46] - The profit for rebar production was 83 yuan/ton, an increase of 22.06% week-on-week [54] - The average cost of pig iron was 2,332 yuan/ton, showing a decrease of 11.0 yuan/ton week-on-week [54] Investment Recommendations - The report suggests focusing on high-quality steel companies with advanced equipment and environmental standards, such as Hualing Steel and Shougang [4] - Companies involved in restructuring and integration, like Baosteel and Nanjing Steel, are also highlighted for their growth potential [4] - Special steel enterprises benefiting from the new energy cycle, such as CITIC Special Steel and Jiuli Special Materials, are recommended for investment [4]

Investment Rating - The steel industry is rated as "Positive" [2] Core Viewpoints - The steel sector has shown a recovery in valuation, with the market performance this week indicating an 11.80% increase, outperforming the broader market [2][11] - The report highlights that the supply pressure is limited, with the overall inventory at a relatively low historical level, and the profit margins for common steel are improving [4][40] - The investment suggestion emphasizes the potential for long-term strategic opportunities in the steel sector, particularly for high-quality steel companies [4] Supply Situation - As of February 27, the capacity utilization rate for blast furnaces among sample steel companies is 87.5%, an increase of 1.04 percentage points week-on-week [3][22] - The production of five major steel products reached 6.984 million tons, a week-on-week decrease of 79,400 tons, or 1.12% [3][22] - Daily average pig iron production is 2.3328 million tons, which is an increase of 27,900 tons week-on-week and 57,700 tons year-on-year [3][22] Demand Situation - The consumption of five major steel products was 5.647 million tons, a week-on-week decrease of 688,400 tons, or 10.87% [3][32] - The transaction volume of construction steel among mainstream traders was 35,000 tons, down 3.25% week-on-week and 48.24% year-on-year [3][32] Inventory Situation - Social inventory of five major steel products reached 12.958 million tons, an increase of 1.1378 million tons week-on-week, or 9.63% [40] - Factory inventory of five major steel products was 5.504 million tons, an increase of 20.49% week-on-week [40] Price & Profit Situation - The comprehensive index for common steel is 3,406.0 CNY/ton, a week-on-week decrease of 3.56 CNY/ton [46] - The profit for rebar produced in blast furnaces is 83 CNY/ton, an increase of 15.0 CNY/ton week-on-week [54] - The average cost of pig iron is 2,332 CNY/ton, a week-on-week decrease of 11.0 CNY/ton [54] Investment Recommendations - Focus on regional leading companies with advanced equipment and environmental standards such as Hualing Steel, Shougang, and Shandong Steel [4] - Consider companies with excellent growth potential and restructuring plans like Baosteel and Nanjing Steel [4] - Pay attention to special steel companies benefiting from the new energy cycle such as CITIC Special Steel and Jiuli Special Materials [4]

Core Viewpoint - The steel sector is experiencing a positive start in 2026, with several companies reporting strong production and sales performance in January, indicating a potential recovery in the industry [1]. Group 1: Company Performance - Yangchun New Steel achieved a production and sales rate of 101% in January and successfully expanded into the Hainan market [1]. - Wuhu Xinxing set multiple historical records, with special steel shipments reaching their best levels in recent years [1]. - Fangda Steel exceeded production targets for both steel and materials, maintaining a self-generated electricity rate of over 95% [1]. Group 2: Industry Outlook - According to Everbright Securities, the probability of a supply-side adjustment in the steel industry has increased in the short to medium term [1]. - The losses reported by steel companies in Q4 are nearing those expected in Q3 and Q4 of 2024, highlighting the necessity for adjustments [1]. - Since the beginning of 2026, tightening export policies for steel have emerged, which could impact the industry's profitability, necessitating supply-side policies to mitigate these effects [1]. Group 3: ETF Information - The Steel ETF (515210) tracks the CSI Steel Industry Index (930606), which selects listed companies from the Shanghai and Shenzhen markets involved in various steel sub-industries to reflect the overall performance of the steel sector [1].