Everbright research reports point out that currently the steel industry has weak demand, industry profitability is at a low level, but with the completion of mid- to long-term ultra-low emission transformation in the industry and further inclusion in the carbon trading market, the long-term value of the sector may gradually become more prominent. Against the backdrop of the China Securities Regulatory Commission's requirement for listed companies to strengthen market cap management, it is recommended to focus on steel central state-owned enterprises with low valuations and stable profits.