HK Stock Moves | Steel Stocks Decline Collectively as Insufficient Steel Pass-Through Margins Squeeze Spreads Amid Upstream Pricing Power Negotiations

LootboxPhobia · 2026-03-19T06:29:19+00:00

Steel stocks declined broadly, with Angang Steel falling 5.81%. China Securities points out that spring inventory replenishment has ended, with weak terminal demand leading to reduced profitability. Guotai Kaiyuan Securities predicts steel demand will gradually touch bottom, while market-based supply clearing may promote industry fundamentals recovery.

LootboxPhobia

2026-03-19 06:29:19

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According to Cailian Press Finance APP, steel stocks are collectively declining. As of the latest report, Ansteel (00347) fell 5.81% to HKD 1.62; Maanshan Steel (00323) dropped 4% to HKD 2.64; Chongqing Steel (01053) decreased 1.61% to HKD 1.22.

Previously, Guojin Securities released a research report stating that the spring restocking by steel mills has basically ended this year, with the intensity further weakening compared to 2025; terminal demand is average, steel price increases are insufficient, leading to an industry average profit decline of 31.7 yuan, with a current loss of 53 yuan per ton; the impact of the domestic major conference policy expectations being priced in has mostly been accounted for, and geopolitical events causing stagflation expectations plus upstream pricing power battles squeezing margins are the current factors suppressing the steel sector’s performance.

Guotai Haitong Securities also indicated that steel demand is expected to gradually bottom out; even without considering supply policies, the industry has been operating with minimal profits for a considerable time, and market-driven supply clearing has begun to appear. We expect the fundamentals of the steel industry to gradually recover. If supply policies are implemented, the pace of industry supply contraction will accelerate, and the upward progress of the industry will unfold more quickly.

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