[SMM Steel Market Morning News] Release of China's First Complete Solution for Low-Altitude New Infrastructure

★Macro★

01 ★★ [Xi Jinping Stresses New Progress in Transforming Resource-Based Economy During Shanxi Inspection, Vows to Write New Chapter in Advancing Chinese-Style Modernization Across Shanxi]

Xi Jinping, General Secretary of the Communist Party of China (CPC) Central Committee, President of the People's Republic of China, and Chairman of the Central Military Commission, recently stressed during an inspection in Shanxi that the province should earnestly implement the CPC Central Committee's strategic deployments on accelerating the rise of central China, promoting ecological conservation and high-quality development of the Yellow River Basin, adhere to the general principle of pursuing progress while ensuring stability, fully and faithfully apply the new development philosophy, coordinate development and security, strive for new progress in transforming resource-based economies, and work to write a new chapter in advancing Chinese-style modernization across Shanxi.

02 ★★ [China's First Integrated Low-Altitude New Infrastructure Solution Released]

The 2025 Aerospace Information Conference, hosted by the National Engineering Research Center for Remote Sensing Satellite Applications and other institutions, was held in Hefei, Anhui Province. The event showcased new technologies and achievements in future industries including commercial aerospace and low-altitude economy, and unveiled China's first integrated solution for low-altitude new infrastructure. A series of innovative technological achievements and application products in the aerospace sector were released, covering satellite internet, low-altitude cloud, low-altitude meteorological applications, and aerospace AI large models. Zhongke Xingtu launched the country's first comprehensive empowerment platform for low-altitude economy, comprising five product systems: low-altitude planning platform, low-altitude smart internet protection platform, low-altitude flight support platform, military-civilian coordination platform, and unified flight network platform. This solution provides an end-to-end approach covering low-altitude planning, safety assurance, collaborative supervision, operational services, and scenario applications, marking China's first complete low-altitude infrastructure solution.

03 ★★ [Three Ministries: Local Governments Encouraged to Support Zero-Carbon Park Construction with Financial Measures Including Special Bonds]

The National Development and Reform Commission (NDRC), Ministry of Industry and Information Technology, and National Energy Administration jointly issued a notice on promoting zero-carbon park construction. The NDRC will coordinate existing funding channels to support such projects, while encouraging local governments to provide financial support including through local government special bonds. Policy banks are urged to offer medium and long-term credit support for eligible projects. Qualified enterprises are supported in issuing bonds for zero-carbon park development. Parks are also encouraged to introduce external talent, technologies, and specialized institutions to assist enterprises with energy-saving transformation, carbon emission accounting, and product carbon footprint certification. Explore the implementation of a "one-window" approval system for multi-energy complementary and integrated supply projects in zero-carbon parks. Strengthen energy use factor support, innovate energy-saving review and carbon emission assessment models within zero-carbon park boundaries, and explore regional approval or project filing mechanisms. Enhance land and sea use factor support for new parks, new energy power supplies, and power supply facilities.

04 ★★ [Three Ministries: Develop Direct Green Electricity Supply Models Tailored to Local Conditions, Including Direct Green Power Connections and Nearby Integration of New Energy into Incremental Distribution Networks]

The National Development and Reform Commission (NDRC), Ministry of Industry and Information Technology, and National Energy Administration issued a notice on zero-carbon park construction. The notice proposes accelerating energy structure transformation in parks, strengthening renewable energy development and utilization in and around parks, supporting resource matching between parks and surrounding non-fossil power generation, scientifically deploying regulatory resources like energy storage systems, developing direct green electricity supply models such as direct green power connections and nearby integration of new energy into incremental distribution networks based on local conditions, encouraging participation in green electricity certificate and green power trading, and exploring hydrogen-electricity coupling development models. Parks are urged to actively utilize thermal energy resources including biomass, nuclear, solar thermal, geothermal, and industrial waste heat to achieve clean and low-carbon heating systems, and explore hydrogen and biomass alternatives to fossil fuels and raw materials.

★Industry & Downstream★

01Z20/> ★★★ [SMM Weekly Maintenance Summary]

According to SMM statistics, blast furnace maintenance impacted 1.1845 million mt of pig iron production this week (July 5-11), increasing 30,700 mt WoW from last week. Next week (July 12-18), blast furnace maintenance impacts are projected to reach 1.2241 million mt, up 39,600 mt WoW.

For construction materials, maintenance impacted 1.2678 million mt this week, decreasing 4,400 mt WoW from last week. Next week's impact is forecast at 1.1856 million mt, down 82,200 mt WoW.

For hot-rolled products, maintenance impacted 2,800 mt this week, decreasing 16,800 mt WoW from last week. Next week's impact is projected at 39,900 mt, up 37,100 mt WoW.

02 ★★ [CPCA: June Domestic Retail Sales of Passenger NEVs Reached 1.11 Million Units, Up 29.7% YoY]

CPCA data shows domestic retail sales of passenger NEVs reached 1.111 million units in June, up 29.7% YoY. Cumulative sales for the first six months reached 5.468 million units, up 33.3% YoY.

03 ★★ [CPCA: June National Passenger Vehicle Market Retail Sales Reached 2.11 Million Units, Up 18.6% YoY]

CPCA data shows national passenger vehicle market retail sales reached 2.11 million units in June, up 18.6% YoY. In the first six months, China’s passenger vehicle market achieved cumulative retail sales of 11.05 million units, up 11.2% YoY.

04 ★★ [CPCA: Automotive sector's profit margin reaches 4.3% in Jan-May, improving from 4.1% in Jan-Apr]

Data from the China Passenger Car Association (CPCA) shows that driven by trade-in subsidy policies, automotive production reached 12.76 million units from January to May 2025, up 11% YoY. During the same period, the automotive sector’s revenue totaled 4.1283 trillion yuan (+7% YoY), costs reached 3.6351 trillion yuan (+8% YoY), and profits stood at 178.1 billion yuan (-11.9% YoY). The automotive sector’s profit margin stood at 4.3%, lower than the average 5.7% for downstream industrial enterprises but improving from 4.1% in January-April. In May specifically, the sector’s revenue reached 873.1 billion yuan (+8% YoY), costs hit 771.5 billion yuan (+8% YoY), and profits amounted to 45.6 billion yuan (-27.1% YoY). The May profit margin reached 5.2%, rising sharply MoM from April though significantly lower than 7.5% in May 2024.

05 ★★ [Hunan: Daily coupon quotas implemented for home appliance/digital product trade-ins, with max 3 redemptions per category monthly]

The Hunan Provincial Department of Commerce announced adjustments to trade-in activity rules for certain consumer goods. Starting July 8, 2025 (00:00), daily coupon quotas will apply to trade-ins for home appliances, digital products, and home improvement items. Coupon collection hours are adjusted to 11:00-24:00 daily, with usage permitted from 8:00-24:00. Coupons will be valid for 7 natural days (including collection day). The 18 home appliance categories include refrigerators, washing machines, televisions, air conditioners (three sub-categories), computers, water heaters, etc. The 5 home improvement categories cover decoration materials, sanitary ware, furniture lighting, smart home devices, and home textiles. The 3 digital product categories include mobile phones, tablets, and smart watches/bands. Consumers may collect up to 3 coupons per category monthly.

06 ★★ [Guangdong's key projects achieve 452.2B yuan investment in Jan-May]

Guangdong Province allocated 1,500 key provincial projects for 2025 with an annual planned investment of 1 trillion yuan. From January to May, completed investment in these projects reached 452.2 billion yuan, accounting for 45.2% of the annual plan. It is reported that 105 projects, including Phase II of the Hong Kong University of Science and Technology (Guangzhou) Project and the 10,000-mt-class carbon fiber project of Oriental Energy (Maoming) Carbon Fiber Co., Ltd., have commenced construction. Ongoing projects such as the Guangzhou-Heyuan High-Speed Railway section from Baiyun Airport T3 to Jiangcun West, the Nansha-Zhuhai (Zhongshan) Intercity Railway section from Wanqingsha to Xingzhong, the Phase III expansion of Guangzhou Baiyun International Airport, the Shenzhen Outer Ring Expressway Shenzhen section (Phase III) from Kengzi to Dapeng, the Yangjiang Fanshi I Offshore Wind Farm, the Phase II construction of Taipingling Nuclear Power Plant, the South China Titanium Valley Project, and the Longma Group Yangjiang High-End Equipment Manufacturing Base Project are progressing smoothly.

★Other Hot Topics★

⭕[Foreign Ministry Responds to Trump's Announcement of Tariff Hikes on 14 Countries]According to CCTV News, today, Foreign Ministry spokesperson Mao Ning chaired a regular press conference. When asked about US President Trump's announcement on July 7th to impose tariffs ranging from 25% to 40% on imports from 14 countries including Japan and South Korea starting August 1st, Mao Ning stated that China's position on tariff issues is consistent and clear: tariff wars and trade wars have no winners, and protectionism harms the interests of all parties.

⭕[China Railway Shanghai Bureau Suspends Some Passenger Trains Due to Typhoon "Danasi"]Affected by Typhoon "Danasi" (the 4th typhoon of this year), heavy rainstorms are expected in parts of southeastern Zhejiang and northeastern Fujian starting this morning (8th). As reported by China Railway Shanghai Bureau, to ensure railway transport safety and passenger travel safety, the bureau has suspended some passenger trains. As of now, the China Railway Shanghai Bureau has activated a Level III emergency response for flood and typhoon prevention. Temporary suspension measures have been implemented for passenger trains including G7599 and G7521 on the Hangzhou-Shenzhen Railway, G7503 and G7575 on the Hangzhou-Taizhou High-Speed Railway, C3633 and G7581 on the Hangzhou-Wenzhou High-Speed Railway, as well as G7367 and G7467 on the Jinhua-Wenzhou Railway on July 8th.