In the first half of 2026, the domestic steel industry faced the dual pressures of low steel prices and rising costs. The overall performance of listed steel companies was under pressure and differentiation intensified. Judging from the mid-term report data of 26 listed steel companies, the overall revenue scale of the industry is stable but profits have shrunk significantly, and more than 40% of the companies have fallen into losses. However, industry insiders said that short-term industry difficulties will not change the trend of medium- and long-term supply and demand optimization. Against the background of capacity reduction and upgrades and valuation restoration, the structural investment value of high-quality steel companies continues to be highlighted, and the medium- and long-term allocation opportunities of the sector are worth seizing.