According to the CITIC Construction Investment Research Report, the August macro data showed a combination of “stable production, weak demand, and new structure”. For the steel industry, it was a month where demand-side pressure and supply-side self-discipline coexisted. Looking back, the traditional peak season of “gold, nine, silver, ten” is expected to bring about marginal improvements in demand. Supply regulation and “anti-internal volume” orientation are also conducive to the restoration of industry order. However, the reality of declining real estate, negative infrastructure growth, and year-on-year high inventories determine that there is limited room for steel prices to rise. The core variable of the industry sentiment is still whether terminal demand can actually pick up. In this process, steel companies with diversified structural advantages and close to high-end manufacturing, energy transformation, and special steel tracks will break out of the profit slump faster than companies that simply rely on construction materials, and the industry will be divided or further intensified.

According to the CITIC Construction Investment Research Report, the August macro data showed a combination of “stable production, weak demand, and new structure”. For the steel industry, it was a month where demand-side pressure and supply-side self-discipline coexisted. Looking back, the traditional peak season of “gold, nine, silver, ten” is expected to bring about marginal improvements in demand. Supply regulation and “anti-internal volume” orientation are also conducive to the restoration of industry order. However, the reality of declining real estate, negative infrastructure growth, and year-on-year high inventories determine that there is limited room for steel prices to rise. The core variable of the industry sentiment is still whether terminal demand can actually pick up. In this process, steel companies with diversified structural advantages and close to high-end manufacturing, energy transformation, and special steel tracks will break out of the profit slump faster than companies that simply rely on construction materials, and the industry will be divided or further intensified.