Guotai Junan Securities: The steel industry is expected to benefit from the release of infrastructure project demand and accelerated control of overcapacity to prevent internal competition.

China Galaxy Securities research report states that in the context of the continuous promotion of supply-side anti-insulation, the steel industry's production capacity is concentrating on high-quality leading enterprises. The recent start of the Yaxia Hydroelectric Project is expected to boost demand for basic steel and special steel; at the same time, the State Council's "Rural Road Regulations" have been announced, signaling the release of signals for rural infrastructure transformation. China Galaxy Securities believes that the industry is expected to benefit from the release of infrastructure project demand and the acceleration of anti-insulation capacity regulation.