Guotai Junan Securities: Steel profit margins continue to rise, still optimistic about sector layout opportunities.

Guotai Haitong released a research report stating that demand is expected to gradually hit bottom, even if supply policies are not considered. Currently, the steel industry has been experiencing losses for a long time, and market-oriented supply clearing has begun to appear. It is expected that the steel industry is gradually emerging from the bottom. If supply policies are implemented, the speed at which industry supply contracts will be faster, and industry growth will progress more quickly.