According to the International Finance News app, most of the steel stocks are rising. As of the time of publication, Maanshan Iron and Steel (00323) rose by 6.52% to HK$0.98; Angang Steel (00347) rose by 6.42% to HK$1.16; Chongqing Iron (01053) rose by 3.28% to HK$0.63; China Oriental Group (00581) rose by 1.89% to HK$1.08.

On the news front, GTJA pointed out that as of September 20, 2024, the profit margin of 247 steel companies was 9.96%, an increase of 3.9 percentage points month-on-month, and has been rising for 4 consecutive weeks. Currently, the industry still maintains a deep loss state. The bank believes that the elasticity of production growth is limited, but with the continued recovery of demand in the peak season, there is still room for profit margin improvement. From the demand side, the real estate sector has been declining for the past two years, and its demand share has dropped to below 20%. The bank expects the negative drag of real estate on the steel industry to gradually decrease. Infrastructure is still expected to play a supporting role, with demand having certain support. The manufacturing industry continues to maintain a steady growth trend and is expected to offset the decline in steel demand from the real estate side.

Furthermore, on September 23, the National Development and Reform Commission held a special press conference. Deputy Director Zhao Chenxin revealed that China Resources Recycling Group is currently being established to promote the establishment of a nationwide, functional resource recycling platform. Chinese Baowu's scrap steel recycling business is expected to be integrated into the new central enterprise as a solid support for promoting future recycling initiatives.