Tracking Hong Kong stock concepts | Low steel inventory combined with policy catalysis, institutions optimistic about the bottom recovery cycle (including concept stocks)

Many steel companies disclosed that they achieved a strong start in production in the first month of 2026. Fangda Steel's production of pig iron, crude steel, and steel in January achieved 105.01%, 110.63%, and 110.71% of the production plan respectively, with multiple core indicators reaching new highs. Yangchun Xingang achieved a production and sales rate of 101% in January, and made a new breakthrough in sales channels. Huatai released a research report stating that the recent voluntary emission reduction during the two sessions may signal the substantial implementation stage of the dual carbon policy, with supply constraints becoming a core driver for industry profit recovery. The steel industry is expected to recover in 2026. The industry is currently at a historic low, with a long-term decline in crude steel production, and downstream demand structure continuously optimizing. The steel industry is entering a policy-led, supply shrinkage, and profit elasticity expanding recovery cycle. Zhongjin released a research report, stating that South Korea's anti-dumping ruling on hot-rolled coils with China has reached an agreement on the price commitment plan, replacing anti-dumping duties with price commitments. This substitution with price commitments for high anti-dumping duties will enhance the continuity and predictability of export orders, potentially compressing the space for low-price competition, improving the order of export pricing, and the role of the export "water reservoir" is expected to return. In addition, the expected relaxation of domestic property policies may support market sentiment and boost industry recovery. Galaxy Securities' research report suggests that the improvement in the supply and demand landscape of the steel industry is gradually strengthened by policy catalysis. The steel industry is gradually deepening its "anti-inner loop" efforts, with orderly clearance and steady increase in industry concentration. At the same time, the emphasis on green, intelligent, and technological innovation in steel growth highlights the scarcity of high-quality special steel and special alloy steel for high-end equipment. Suggestions include: 1. Actively lay out mergers and acquisitions to enhance synergy and strengthen leadership positions; 2. Continuously optimize product structure and maintain stable high dividends; 3. High technological barriers against "inner loops", significant potential for performance and valuation repair. Hong Kong stocks related to the steel sector: CHONGQING IRON (01053), MAANSHAN IRON (00323), Angang Steel (00347), CHINA ORIENTAL (00581)