Steel stocks rise, Maanshan Iron & Steel surges nearly 13%, Angang Steel International up over 4%

Hong Kong-listed steel stocks have seen significant gains, with Maanshan Iron & Steel leading the way with a nearly 13% increase, followed by Daming International with a nearly 9% increase, Angang Steel and China Oriental Group with gains of over 4%, Iron Ore with a nearly 3% increase, and Chongqing Iron and Steel with a 2% increase. In terms of news, a research report from Cinda Securities indicates that although the steel industry is currently facing issues such as prominent supply-demand contradictions and overall declining industry profits, with the deepening implementation of a series of "steady growth" policies, the total demand for steel is expected to remain stable or even slightly increase under the support of factors such as the stabilization of the real estate sector, steady growth in infrastructure investment, continuous development in manufacturing, and high levels of steel exports. On the other hand, under expectations of stricter control policies, the overall supply of steel is expected to tighten and industry concentration is expected to continue to strengthen. Overall, the supply-demand situation in the steel industry is expected to remain stable. In general, the bank believes that the future industrial structure of the steel industry is expected to gradually improve, and combined with the fact that some companies are already undervalued, there are still structural investment opportunities at present, especially for specialty steel companies with high profit margins and leading steel companies with strong cost control and economies of scale. There is an opportunity for valuation recovery in the future, therefore maintaining a "positive" industry outlook rating.