Minsheng Securities has issued a research report indicating a resurgence in expectations for supply regulation, forecasting a recovery in steel mill profits. Despite maintaining high levels of steel and hot metal production this week, coupled with a gradual recovery in demand, inventories have continued to rise, consequently eroding steel mill profitability. Currently, steel profits have hit their lowest point this year; however, given the low inventory levels and a stabilized, rebounding demand, the scope for further profit declines appears limited. It is anticipated that this round of regulatory measures will be more targeted, focusing on the elimination of weaker players through tiered and categorized management, with the aim of optimizing crude steel supply. Additionally, as new iron ore production capacity comes online in the future, the profitability of steel enterprises is poised to gradually regain strength.