December 2nd, CITIC Construction Investment Research Report pointed out that in the future, there is a small possibility of a significant decline in China’s crude steel consumption. This is because on one hand, China is still in the process of urbanization and industrialization, requiring a large amount of crude steel; on the other hand, with the expansion of application scenarios, the demand for steel as a basic material still has potential. The promotion of prefabricated steel structures, the upgrading and expansion of manufacturing industry, and the rapid development in the field of new energy all support China’s steel consumption to remain at a high level for a relatively long time. In the short term, 2024 will be a year when strong fiscal effectiveness is released. The issuance of 1 trillion yuan special national bonds and special refinancing bonds will effectively alleviate funding issues and no longer impose restrictions on physical infrastructure demand. It is expected that in 2024, steel mill profits will be driven by both improved demand and cost reduction, with hopes to fully unleash elasticity.