Action Plan for the Transformation and Development of the Iron and Steel Industry ( 2015-2017 )》is about to be released. The goal of this plan is to reduce China’s... 8000 10,000-ton steel production capacity to alleviate the contradiction of overcapacity; establish 2~3 Smart demonstration factory for homes, enhancing the integration of informatization and industrialization in the industry.

　　According to a report by the Shanghai Securities Journal, the “Action Plan for the Transformation and Development of the Iron and Steel Industry” ( 2015-2017 )》is about to be released. The goal of this plan is to reduce China’s... 8000 10,000-ton steel production capacity to alleviate the contradiction of overcapacity; establish 2~3 Smart demonstration factory for homes, enhancing the integration of informatization and industrialization across the industry; keeping the number of steel enterprises under control. 300 Around the home, promote strong alliances among leading enterprises and advance regional enterprise restructuring and integration.

　　Since the beginning of this year, the steel industry has seen a series of positive developments—long before... 2 In the month, the Ministry of Industry and Information Technology stated that... 2015 This year, the “Action Plan for the Transformation and Development of the Iron and Steel Industry” will be formulated and released to further promote the implementation of relevant supporting policies and measures. At the same time, the “Medium- and Long-Term Development Plan for the Iron Ore Industry” will be released in due course. 2010-2025 ), guiding the sustained and healthy development of China’s iron ore industry. Meanwhile, the Ministry of Industry and Information Technology plans to... 2015 Annually promote the integration of informatization and industrialization in the steel industry, carry out demonstration applications of smart factories, support large-scale steel enterprises in transforming their proprietary e-commerce platforms into open industry platforms, and facilitate the processing and distribution of personalized orders for products such as automotive sheets and shipbuilding plates.

　　In addition, the NDRC has swiftly approved over... 4500 A billion-yuan infrastructure project, with total investment announced. 1.97 Trillion-yuan PPP As a key raw material for infrastructure construction, demand for steel is expected to pick up. In addition to the stimulus from infrastructure projects, domestic steel mills have recently joined forces to support prices, and environmental regulations continue to tighten. Driven by these multiple positive factors, the steel industry’s outlook is likely to improve.

　　Guangfa Securities believes that steel prices have already fallen this year. 6%-15% , there's room for a rebound during the peak season. 15% The above. 1-3 In the month, sheet prices fell. 12%-15% Long products declined. 6% , close to 2007 The lowest point in years, with only grain-oriented silicon steel seeing an increase. 9% With government policies aimed at increasing infrastructure investment, encouraging real estate investment, and boosting exports of high-end equipment manufacturing, demand is expected to gradually pick up in the second quarter—particularly for long products—and the steel price index... 3 Prices stabilized and rebounded mid-month, and the potential for a seasonal rebound in steel prices is expected to be... 15% Above all, it is worth looking forward to the industry turning a profit.

　　Regarding investment opportunities in steel stocks, China Merchants Securities believes that investors should focus on three main investment themes, with particular emphasis on the opportunities arising from national strategic and institutional developments. First, look for companies benefiting from the Belt and Road Initiative and mixed-ownership reform: including Bayi Steel, Liugang Shares, Sangang Minguang, Baosteel Shares, Xinxing Cast Pipe, and Baogang Shares. Second, pay attention to companies expected to eliminate outdated production capacity and undergo asset injections and restructuring: such as Hebei Iron and Steel, Hangang Shares, Shagang Shares, Chongqing Iron and Steel, and Shaogang Songshan. Finally, focus on emerging strategic sub-sectors, including Jinzhou Pipeline, Changbao Shares, Fushun Special Steel, and Jiuli Special Materials.