CHONGQING IRON (01053) surged more than 5%, reaching HK$1.42 by the time of writing, with a trading volume of HK$20.92 million. The company recently reported its Q1-Q3 2025 financial results, showing revenue of approximately RMB19.09 billion, down 7.32% year-on-year. The net loss attributable to shareholders narrowed by 83.82% YoY to RMB218 million, with a basic loss per share of RMB0.02.

Analysts noted that the steel industry's profitability has been declining since 2021, with losses persisting for three consecutive years. Some marginal producers are now facing cash flow deficits, highlighting supply-side vulnerabilities. Policy measures are also reinforcing anti-overcapacity expectations, suggesting further production cuts or even shutdowns. Supply contraction is anticipated to continue into 2026.

The recently released "Steel Industry Steady Growth Work Plan (2025-2026)" emphasizes continued production reduction policies, prioritizing advanced enterprises while phasing out inefficient capacity to achieve supply-demand balance. Analysts maintain expectations of supply-side contraction, predicting a gradual recovery in the steel industry's fundamentals.