According to information obtained by the author from the China Iron and Steel Association: From January to May, national crude steel output reached 432 million tons, a year-on-year decrease of 1.7%. In terms of profits, the steel industry has seen positive changes. Data from the National Bureau of Statistics shows that from January to May, China's ferrous metal smelting and pressing industry achieved a total profit of 31.69 billion yuan, surpassing the full-year profit of 29.19 billion yuan in 2024.The stable operation and significant economic benefit improvement of China's steel industry in the first five months of this year can be attributed to the improvement in supply and demand conditions.On the supply side, since 2025, the steel industry has intensified self-discipline in production control. China's crude steel output has shown a downward trend year-on-year, leading to a mitigation of supply and demand contradictions. Inventory pressure has been relieved in stages, providing support for steel prices and improving the overall business environment. Jiang Wei, Secretary-General of the China Iron and Steel Association, believes that the 1.7% reduction in crude steel output achieved by the entire industry while maintaining profitability is the guarantee for the steel industry's performance from January to May.On the demand side, the "Two New" policies have increasingly demonstrated their role in driving steel consumption. In the first five months, China's automobile production and sales volume both grew by over 10%, and retail sales of household appliances and audio-visual equipment increased by 30.2%.Furthermore, on the cost side, prices of major raw materials such as iron ore, coking coal, and coke have significantly dropped from last year's high levels, effectively reducing steel mills' production costs. Data from the China Steel Association shows that in the first quarter, procurement costs for imported iron ore fines, coking coal, and metallurgical coke decreased among key statistical steel enterprises.Jiang Wei stated that enterprises' self-discipline in production control has been effective, ensuring that inventory levels remain low. This has led to a decrease in direct demand for raw materials and downward pressure on prices. On the other hand, it has maintained basic balance in steel market supply, keeping steel prices relatively stable and further guaranteeing industry profitability. In the second half of the year, enterprises should continue to practice self-discipline in production control and inventory reduction to avoid "involutionary" competition.