HK Stock Market Move | Steel stocks rise again, steel industry opens the year with strong production and sales, institutions point to the possibility of a recovery in the steel industry in 26 years.

Steel stocks rose again, as of the time of publication, CHONGQING IRON (01053) rose by 7.38% to 1.31 Hong Kong dollars; MAANSHAN IRON (00323) rose by 4.67% to 2.69 Hong Kong dollars; Angang Steel (00347) rose by 4.41% to 2.13 Hong Kong dollars; CHINA ORIENTAL (00581) rose by 2.56% to 1.6 Hong Kong dollars. On the news front, multiple steel companies have disclosed that they achieved a "good start" in production in the first month of 2026, with Fangda Steel achieving 105.01%, 110.63%, and 110.71% of the production targets for pig iron, crude steel, and steel products respectively in January, setting new highs for multiple core indicators; Yangchun Xinxinxinxinxin Iron achieved a production and sales rate of 101% for the entire month of January, achieving a new breakthrough in sales channels. Huatai released a research report stating that the recent independent emission reduction during the Two Sessions may signal the substantive implementation stage of the dual carbon policy, with supply constraints becoming normalized and potentially serving as the core driver for industry profit recovery. The steel industry is expected to rebound in 2026. The industry is currently at historical lows, with long-term declines in crude steel production, continuous optimization of downstream demand structures, and steel entering a period of policy-led, supply contraction, and profit elasticity expansion.