Galaxy Securities: The concentration of the steel industry is expected to continue to increase

The research report from Galaxy Securities points 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 supply-demand pattern in the industry, the profitability and valuation of leading steel companies are expected to recover. From the supply side, industrial policies continue to take effect, and steel production capacity is showing a trend of contraction, with the industry's concentration expected to continue to rise; from the demand side, new policies are accelerating investment in downstream manufacturing, with steel-consuming sectors such as shipbuilding supporting demand. The industry is expected to benefit from the transformation and upgrading of manufacturing. It is recommended to pay attention to leading companies in the general steel sector that are experiencing marginal improvements in demand due to favorable policy expectations, as well as leading companies in the special steel sector with positive fundamentals