Hong Kong-listed steel stocks experienced a collective decline. At the time of writing, ANGANG STEEL (00347) fell 5.81% to HK$1.62. MAANSHAN IRON (00323) dropped 4% to HK$2.64. CHONGQING IRON (01053) decreased 1.61% to HK$1.22. A recent research report from Guojin Securities indicated that the seasonal spring restocking by steel mills for the year has largely concluded, with its intensity further weakening compared to 2025. End-user demand remains tepid, and the insufficient pass-through of costs into finished steel prices has led to a reduction in the industry's average profit by 31.7 yuan, resulting in a current loss of 53 yuan per ton. The market has mostly priced in the disappointment from the lack of anticipated policy support during recent important domestic meetings. Current pressures on the steel sector stem from stagflation expectations triggered by geopolitical events and margin compression caused by bargaining over upstream pricing power. Conversely, Guotai Haitong Securities expressed a view that steel demand is expected to gradually bottom out. On the supply side, even without considering potential supply policies, the industry has endured meager profits for an extended period, leading to the beginning of market-driven supply rationalization. The firm anticipates a gradual improvement in the fundamental conditions of the steel industry. Should formal supply policies be implemented, the pace of supply contraction would accelerate, potentially leading to a faster recovery for the sector.