Looking back at February 2025, after the Lantern Festival, workers returned to work and downstream demand picked up. According to the research of Centennial Construction, the rate of funds in place and the rate of resumption of work rose month-on-month. Meanwhile, the low output and low inventory of rebar provided support for the bottom of rebar prices. However, at present, the fundamentals of hot-rolled coil are more contradictory compared to rebar, and Vietnam and South Korea have successively introduced anti-dumping policies. The subsequent demand for hot-rolled coils will be affected. Against this background:

What is the current actual profit situation of steel mills? How is the order acceptance situation? How is the production scheduling?

2. The downstream sector has picked up, and market transactions have improved somewhat. How are the ongoing supply projects and new orders of your company recently? What is the current situation of downstream capital

and construction commencement?

3. How do you view the market situation in March 2025?

On the supply side, after the Lantern Festival, electric furnaces resumed production in a concentrated manner, and blast furnaces gradually resumed production as well. The output of steel gradually increased, and currently, the profit situation of steel mills is still acceptable, and the order taking and production scheduling situation is also acceptable.

On the demand side, according to the research of Century-old Construction, the resumption of work at construction sites, the rate of labor employment, and the rate of funds in place have all increased month-on-month. Demand is gradually improving, and the market will continue to pay attention to the height of the demand recovery in the future.

Experts believe that there are currently many macro disturbance factors. Market demand will gradually be released in March. The current inventory level is also lower than that of previous years. However, considering that exports may have a certain reduction, the increase may be limited.