CICC: The steel industry is still in a trend of demand reduction and structural adjustment, and it is difficult to see a significant improvement in supply and demand and profitability.

The research report of Zhongjin Company pointed out that we believe that the industry will still be in a trend of reducing demand and adjusting structure in 2026. Supply and demand and profitability are difficult to see significant improvement, but the structural market brought by the anti-inward rotation is worth paying attention to. Focus on two main lines: 1) Differentiated production control is expected to advance, leading the green transformation, undervalued high-quality cash flow assets are expected to usher in profit recovery and value revaluation. 2) High-end steel materials usher in a turning point in domestic substitution acceleration, benefiting from the high-growth certainty of leading special steel companies.