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China Galaxy Securities: Medium to long-term conflicts in Steel supply and demand are intensifying, accelerating the supply-side reform in the Steel Industry.
Short-term imported iron ore may run weakly, potentially leading to a reduction in raw material costs, which is Bullish for domestic Steel companies. In the medium to long term, mainstream mines may also adjust their supply strategy under the changing landscape, increasing uncertainty in iron ore prices.
Latest assessment from Citigroup on the Steel Industry: Under the "pressure test" of tariffs, why have these two steel companies become the "first choice"?
Citi released the latest assessment report on the Steel Industry.
KANGLI INT HLDG: ANNUAL REPORT 2024
Hong Kong stock Concept tracking | Supply-side reform adjusts Steel supply, market focuses on the implementation status of domestic production restrictions (with related stocks)
Citi published a report on China's resource industry, stating that the announced tariffs by the USA have little impact on the Steel-related sub-industries.
China Steel Industry Association: The imbalance between supply and demand is the main contradiction affecting the development of the industry.
On March 25, Gelonghui reported that Jiang Wei, Deputy Secretary of the Party Committee, Vice President and Secretary-General of the China Steel Industry Association, believes that 2024 will be a year of deep adjustment for the Steel Industry, with increasing downward pressure on traditional construction steel demand. The changes in the structure of Steel consumption lead to a high intensity and sustainability of changes in total consumption, presenting an unprecedented challenge for China's Steel Industry. The imbalance between supply and demand is the main contradiction currently affecting the development of the industry.
Multiple Steel mills have announced a 10% reduction in production, and analysts believe that more Steel mills may control and cut production in the future.
According to Futures Daily, on Monday, Xinjiang Ba Yi Iron & Steel, Kunlun Iron & Steel, Minxin Iron & Steel, and Kunya Iron & Steel announced that to promote the reduction in production in the Xinjiang steel industry, the daily crude steel output will be reduced by 10% starting from March 24.