Huatai Securities pointed out that since '21, steel companies have adjusted their product structures and increased exports, but prices are under pressure. Anti-domestic policies have been implemented this year, the conflict between supply and demand in the industry has been marginally mitigated, and corporate profits have bottomed out and rebounded. However, there is a difference between this round of internal scrutiny and supply-side reforms in 2015. At that time, excess production capacity could be quickly cleared. Monetization of superimposed shed reforms drove up demand for real estate, and corporate profits improved dramatically. However, in this round, the supply side relies more on self-regulatory mechanisms, and demand-side differentiation continues, and enterprises will still need to reduce volume and improve quality in the future. Next year, the industry may continue to improve the trend of supply and demand, driven by an anti-domestic market, but the magnitude may be limited. Combined with the overall low interest rate spreads on industry bonds, the main fundamentals still exist. The steel bond allocation proposal is mainly based on the allocation of central state-owned enterprises with obvious scale and capital advantages, and moderately explores opportunities for perpetual bonds within 3 years. As profits continued to improve, it sank down to explore short-term medium-sized steel companies.

Huatai Securities pointed out that since '21, steel companies have adjusted their product structures and increased exports, but prices are under pressure. Anti-domestic policies have been implemented this year, the conflict between supply and demand in the industry has been marginally mitigated, and corporate profits have bottomed out and rebounded. However, there is a difference between this round of internal scrutiny and supply-side reforms in 2015. At that time, excess production capacity could be quickly cleared. Monetization of superimposed shed reforms drove up demand for real estate, and corporate profits improved dramatically. However, in this round, the supply side relies more on self-regulatory mechanisms, and demand-side differentiation continues, and enterprises will still need to reduce volume and improve quality in the future. Next year, the industry may continue to improve the trend of supply and demand, driven by an anti-domestic market, but the magnitude may be limited. Combined with the overall low interest rate spreads on industry bonds, the main fundamentals still exist. The steel bond allocation proposal is mainly based on the allocation of central state-owned enterprises with obvious scale and capital advantages, and moderately explores opportunities for perpetual bonds within 3 years. As profits continued to improve, it sank down to explore short-term medium-sized steel companies.