Shen Wan Hongyuan released a research report saying that the fundamentals, valuation, and institutional holdings of the steel industry are currently at the bottom, and emphasis is placed on positive changes in the industry. Industry mergers and restructuring are also expected to drive future concentration increases, and the overall supply pattern is expected to be optimized. The bank expects a subsequent decline in iron ore prices, which will push steel companies' profits to recover. Overall, at the bottom of the current cycle, the overall profits of leading companies have some support, and there is also good upward flexibility in anticipation of cost improvements.

Shen Wan Hongyuan released a research report saying that the fundamentals, valuation, and institutional holdings of the steel industry are currently at the bottom, and emphasis is placed on positive changes in the industry. Industry mergers and restructuring are also expected to drive future concentration increases, and the overall supply pattern is expected to be optimized. The bank expects a subsequent decline in iron ore prices, which will push steel companies' profits to recover. Overall, at the bottom of the current cycle, the overall profits of leading companies have some support, and there is also good upward flexibility in anticipation of cost improvements.