CITIC Securities: It is expected that 2025 will be a turning point for the Chinese steel industry.

CITIC Securities research report predicts that 2025 will be a turning point for China's steel industry. The first quarter of 2025 is expected to be a long-term performance turning point for the industry. With the deepening of industry reforms, the continuous reduction of capacity and production is inevitable. The supply side is expected to bring about production contraction beyond expectations. At the same time, with the continuous progress of the steel industry in promoting integration and restructuring, and driving the exit of backward and inefficient capacity, it is expected that profits in the industry chain will continue to be redistributed, and the steel industry will benefit from this redistribution. We believe that the current period of being at the valuation bottom and the anticipated continuous profit redistribution in the industry is a prime time for investment in the steel industry. We maintain a "outperform" rating for the steel industry compared to the overall market.