Steel stocks experienced a rapid surge before noon. As of press time, MAANSHAN IRON (00323) rose 7.84% to HK$2.89, ANGANG STEEL (00347) gained 3.17% to HK$2.28, and CHONGQING IRON (01053) increased 2.13% to HK$1.44. The rally followed the launch ceremony of the Simandou iron ore project in Guinea's Port of Moribayah.

The Simandou deposit is recognized as the world's largest iron ore reserve with the potential to become the fifth-largest mine globally. According to Orient Securities, the commencement of Simandou could significantly disrupt the current oligopoly of the four major iron ore suppliers, potentially reshaping the global iron ore supply landscape.

Guotai Junan Securities noted in a research report that steel demand is expected to gradually bottom out. On the supply side, even without considering policy interventions, prolonged industry losses have already triggered market-driven capacity adjustments. The firm anticipates a gradual recovery in the steel sector's fundamentals. Should supply-side policies be implemented, the pace of industry consolidation would accelerate, leading to a quicker rebound.