Galaxy Securities Research Reports point out that in recent years, the Steel Industry has experienced weak prosperity, and individual stocks have fallen to relatively low valuations. With the improvement of the industry supply and demand pattern, the profitability and valuations of leading steel companies are expected to recover. From the supply side, industrial policies continue to show effects, and steel production capacity is showing a contraction trend, leading to an expected increase in industry concentration; from the demand side, new policies help accelerate investment in downstream manufacturing, with the demand for Steel supported by shipbuilding and other sectors. The industry is likely to benefit from the upgrading of manufacturing. It is recommended to pay attention to leading companies in the General Steel Sector that may experience marginal demand improvements due to bullish policy expectations, as well as related leading companies in the Steel Sector with good fundamentals.