China Galaxy Securities: Looking ahead, with the positive impact of policies, the fundamentals of Steel are expected to improve marginally.

China Galaxy Securities stated that in the year of planning for the "14th Five-Year Plan," the structure of major national projects is expected to be further optimized. Currently, the demand for Steel is transitioning from Real Estate to high-end Manufacturing. The domestic Manufacturing industry is expected to continue transforming and upgrading, and Steel mills are likely to resume production. The Manufacturing sector has a rigid support for the demand for Steel. Infrastructure demand is expected to be released concentratedly, and total demand is expected to stabilize and rebound in the future. As the process of transformation and upgrading of the Manufacturing industry accelerates, the demand for Steel in the high-end Manufacturing sector is expected to improve marginally. Additionally, benefiting from the continuous development of downstream industries such as Aviation, Autos manufacturing, and replacing old home appliances, the consumption outlook for special Steel is promising, and special Steel enterprises are expected to achieve stable growth. Looking ahead, with the positive impact of policies, the supply side of the Steel industry is expected to continue optimizing, downstream Manufacturing demand is expected to grow, and the fundamentals of Steel are expected to improve marginally.