How about steel supply and demand in the short term

In February, real estate sales were in good condition, and steel demand for real estate continued to improve. It is expected that in the short term, the marginal improvement of steel supply and demand, steel price is stronger, coke and imported ore price are weaker and stronger respectively, and steel profit is expected to improve.

It is expected that "carbon neutral" will help improve the supply and demand pattern of steel in 2021, and the superimposed cost support will promote the average upward trend of steel price. The trend of steel price may be stronger than that of raw material price, and the profit of steel is expected to improve significantly.

Steel plate valuation is at a historical low, profit improvement is expected to bring valuation repair. We will closely track the impact of the new policy of de capacity and global epidemic prevention and control on steel supply and demand. We should pay attention to the high-quality steel leaders with good environmental protection foundation, superior varieties, strong cost control ability and high dividend level; we should pay attention to the high-quality special steel leaders with weak cycle, high-end product structure and flexible production capacity.