CITIC Securities: With the clearance of excess production capacity in the steel industry, the overall situation of the industry will further improve.

CITIC Securities pointed out that with the release of the company classification under new industry norms, the high-quality development of the steel industry is beginning to enter the practical stage of "graded evaluation-list announcement-element aggregation". The industry management logic is shifting from the previous emphasis solely on production capacity compliance to a more comprehensive evaluation of high-end, intelligent, green, and efficiency capabilities. In particular, for industry leaders, their environmental protection and efficiency capabilities are at the forefront. With the clearance of excess capacity and production, the industry landscape will further improve. The steel industry is expected to maintain its "outperforming the broad market" rating.