Steel ETF Guotai (515210) surged nearly 2% intraday, with steel supply maintaining expectations of continued contraction.

Guotai Junan pointed out that demand is expected to stabilize, while supply is expected to remain contracted. As the real estate sector declines, the proportion of steel demand from the real estate sector continues to fall, and the negative drag effect of real estate on steel demand has clearly weakened; demand for steel from infrastructure and manufacturing is expected to grow steadily. From the supply side, approximately 60% of steel companies in the industry are currently operating at a loss, and market-driven supply clearance has begun to emerge. The expectation of supply-side contraction is maintained, and the fundamentals of the steel industry are expected to gradually improve. If supply policies are implemented, the speed of supply contraction in the industry will accelerate, leading to faster progress in the industry’s upward movement. In the long term, increasing industry concentration and promoting high-quality development are inevitable trends for the future development of the steel industry.

The Guotai Steel ETF (515210) tracks the CSI Steel Index (930606), which selects listed companies involved in the production of ordinary steel, special steel, and other businesses from the Shanghai and Shenzhen markets as index samples to reflect the overall performance of related listed companies in the steel industry. The constituent stocks exhibit significant cyclical characteristics and are closely related to the macro economy, focusing on the allocation of raw materials.

Risk Warning: Mentioning individual stocks is solely for industry event analysis and does not constitute any individual stock recommendation or investment advice. Short-term fluctuations in indices are for reference only and do not represent future performance, nor do they constitute a commitment or guarantee regarding fund performance. Views may be adjusted in response to changes in the market environment and do not constitute investment advice or commitments. The risk and return characteristics of mentioned funds vary, and investors are advised to carefully read the fund’s legal documents, fully understand product elements, risk levels, and profit distribution principles, and choose products that match their risk tolerance, investing cautiously. For fund fees, please refer to the legal documents.

Daily Economic News

(Author: Zhang Xiaobo)

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