Angang Steel Company Limited (00347) dropped more than 5% in late trading, last trading down 4.66% at HKD 1.125, with turnover reaching HKD 13.1659 million.

The company recently issued a profit warning, forecasting a net loss of approximately 2.047 billion yuan for the first half of 2026, an expansion of about 83.59% year-on-year. On a quarterly basis, Angang Steel posted a loss of 1.457 billion yuan in the first quarter, with an estimated loss of about 590 million yuan in the second quarter. Although the second quarter showed a sequential improvement, the overall loss in the first half still hit a record high for the same period in recent years.

Guotai Junan Securities released a research note stating that as the real estate sector declines, the proportion of steel demand from property continues to decrease, and the negative drag of real estate on steel demand is expected to weaken significantly. Steel demand from infrastructure and manufacturing sectors is likely to see steady growth. On the supply side, approximately 60% of steel companies are currently reporting losses, and market-driven consolidation has begun to emerge. The brokerage maintains its expectation of supply-side contraction, suggesting the steel industry's fundamentals could gradually improve.