www.ubs.com/investmentresearchThisreporthasbeenpreparedbyUBSSecuritiesAsiaLimited.ANALYSTCERTIFICATIONANDREQUIREDDISCLOSURESBEGINONPAGE22.UBSdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.??GlobalResearch2February2018ChinaSteelSectorMarginupgradesonimproveddemandoutlookAlonger-than-expectedupcycleOurpositivethesisontheChinasteelsectoristhatnewcapacityhasbeenlimitedinthisprofitabilityupcycleanddemand,whichhasbeenresilient,couldbesustainedforlonger,givenlowpropertyinventory,stillrobustnewstartgrowthandlandsales.Thiscouldleadsteelmarginstoremainhighforlongerthaninpreviouscycles(typicallytwoyears).