Steel stocks experienced a rapid surge in the afternoon session. As of press time, MAANSHAN IRON (00323) rose 5.38% to HKD 2.74, CHONGQING IRON (01053) gained 2.88% to HKD 1.43, and ANGANG STEEL (00347) climbed 1.83% to HKD 2.22. The rally followed reports of improved profitability in the steel industry during the third quarter.

According to Mysteel data, steel mill profit margins increased from 59% at the end of June to 64% by late August. However, steel price gains in September lagged behind coking coal price increases, leading to a decline in mill profitability. On average, Q3 steel mill profit margins stood at 62%, up 4.5 percentage points from Q2.

Changjiang Securities' analysis of key listed steel companies showed Q3 2025 net profit per ton reached RMB 92, up RMB 14 sequentially, ranking in the 68th percentile since 2021. The brokerage noted that for 2026, iron ore concessions could far exceed coking coal price adjustments, with the Simandou project's production ramp-up potentially creating opportunities.

While Q3 market expectations about anti-internal competition measures remained largely speculative - as evidenced by persistently high blast furnace utilization rates indicating limited production cuts - analysts anticipate more concrete supply-side discipline in 2026 through tiered industry management and differentiated production restrictions.