[SMM Steel Market Morning News] Guangdong: Implementation of Steel Industry Integration and Upgrading & Global Ship Orders in January Plunged 74% YoY

★Macro★

01★★ 

Ex-Factory Prices of National Industrial Producers Fell 2.2% YoY and 0.1% MoM in February

According to data released by the National Bureau of Statistics (NBS), in February 2025, the ex-factory prices of national industrial producers fell 2.2% YoY and 0.1% MoM, with the decline narrowing by 0.1 percentage points compared to the previous month. The purchase prices of industrial producers fell 2.3% YoY and 0.2% MoM. On average, from January to February, the ex-factory prices of industrial producers decreased by 2.2% compared to the same period last year, while the purchase prices of industrial producers dropped by 2.3%.

02 ★★ 

Consumer Prices Fell 0.7% YoY in February 2025

In February 2025, the national consumer prices fell 0.7% YoY. Among them, urban areas saw a 0.7% decline, and rural areas also dropped by 0.7%. Food prices fell 3.3%, while non-food prices decreased by 0.1%. Prices of consumer goods dropped 0.9%, and service prices fell 0.4%. On average, from January to February, national consumer prices decreased by 0.1% compared to the same period last year.

★Industry and Downstream★

01 ★★ 

Minister of Housing and Urban-Rural Development Ni Hong: All Urban Old Residential Areas Built Before 2000 to Be Included in Urban Renewal

Ni Hong, Minister of Housing and Urban-Rural Development, stated at the press conference on livelihood themes during the third session of the 14th National People's Congress that efforts will be made to implement a batch of urban renewal projects that benefit people's livelihoods, promote development, and prevent risks. In terms of livelihood, all urban old residential areas built before 2000 will be included in the scope of urban renewal, with renovations implemented according to local conditions. Local governments are encouraged to explore resident-led renovations of old residential buildings. The scope of urban village renovations has now expanded to all prefecture-level and above cities nationwide, and further expansion is planned. Efforts will also be made to promote the construction of complete communities, focusing on the elderly and children, improving facilities for accessibility, aging-friendly adaptations, government childcare services, and children's activity spaces.

02 ★★★  

Domestic Sales of Excavators Reached 11,640 Units in February 2025, Up 99.4% YoY

According to statistics from the China Construction Machinery Industry Association on major excavator manufacturers, 19,270 excavators were sold in February 2025, up 52.8% YoY. Among them, domestic sales reached 11,640 units, up 99.4% YoY, while exports totaled 7,630 units, up 12.7% YoY.

From January to February 2025, a total of 31,782 excavators were sold, up 27.2% YoY. Among them, domestic sales reached 17,045 units, up 51.4% YoY, and exports totaled 14,737 units, up 7.37% YoY.

According to statistics from the China Construction Machinery Industry Association on major loader manufacturers, 8,730 loaders were sold in February 2025, up 34.4% YoY. Among them, domestic sales reached 4,505 units, up 63% YoY, while exports totaled 4,225 units, up 13.2% YoY.

From January to February 2025, a total of 16,650 loaders were sold, up 16.5% YoY. Among them, domestic sales reached 8,211 units, up 26.2% YoY, and exports totaled 8,439 units, up 8.33% YoY.

★Other Hot Topics★

⭕[Minister of Housing and Urban-Rural Development Ni Hong: Residential Floor Height Standard to Be Adjusted to No Less Than 3 Meters]Ni Hong, Minister of Housing and Urban-Rural Development, stated at the press conference on livelihood themes during the third session of the 14th National People's Congress that a "Good Housing" construction guide is being organized, and residential project specifications are being revised. One of the revisions is to increase the residential floor height to no less than 3 meters.

⭕[Minister of Housing and Urban-Rural Development Ni Hong: Real Estate Market Maintained Positive Momentum of Stabilization in January-February]Ni Hong, Minister of Housing and Urban-Rural Development, stated at the press conference on livelihood themes during the third session of the 14th National People's Congress that since September last year, real estate policies have been continuously strengthened. Local governments have implemented city-specific, precise, and tailored measures to strongly support residents' rigid and improved housing needs. The annual target of the housing delivery campaign was achieved through efforts. With the concerted efforts of all parties, market confidence has been effectively boosted, and positive changes have emerged in the real estate market. According to statistical data, the real estate market maintained a positive momentum of stabilization in January-February this year.

⭕[National Railway Fixed Asset Investment Reached 68.54 Billion Yuan in January-February, Up 5.1% YoY]According to China State Railway Group Co., Ltd., in January-February this year, national railway fixed asset investment reached 68.54 billion yuan, up 5.1% YoY. Key railway projects progressed efficiently and orderly, injecting new momentum into regional economic and social development. A relevant official from China State Railway Group stated that the next step will focus on completing more physical workloads and investments, strengthening the guarantee of construction funds and land resources, dynamically optimizing the construction organization of key ongoing projects, and actively promoting the early commencement of major projects to contribute positively to the sustained economic recovery.

⭕Ba Yi Steel: New Wide and Thick Plate Continuous Casting Machine Project for 150t Production Line in Steelmaking Plant

On March 8, Ba Yi Steel announced that its steelmaking plant has two converter production lines of 120t and 150t. The 150t converter production line is equipped with two billet continuous casting machines for bar and wire production lines, while the 120t converter production line is equipped with four slab continuous casting machines for hot rolling and wide and thick plate production lines, with a maximum specification of 1,800mm×250mm. The 120t converter production line can achieve hot delivery when connected to the hot rolling production line, but supplying the wide and thick plate production line requires transportation by truck, making hot charging and hot delivery impossible, which is less economical. Additionally, the total slab output of the 120t converter production line cannot simultaneously meet the supply for both hot rolling and wide and thick plate production lines. The wide and thick plate production line is limited by slab specifications, with a maximum single weight of <11.5t, which cannot meet the maximum single weight supply requirement of 20t for wind power tower complete steel supply. Similar maximum single weight requirements exist for container steel and hydropower steel, all requiring larger slab raw materials from the steelmaking plant.

On March 7, 2025, the 20th meeting of the 8th Board of Directors approved the "Proposal on the New Wide and Thick Plate Continuous Casting Machine Project for the 150t Production Line in the Steelmaking Plant of Ba Yi Steel," with a total estimated investment of 180.7286 million yuan.

⭕[Longteng New Energy's 3,800mm Medium-Thickness Plate Project Successfully Completed Initial Hot Trial]The 3,800mm medium-thickness plate production line of Longteng New Energy is the world's first 3,800mm elevated medium-thickness plate production line. The production line adopts a single-stand reversible four-high rolling mill paired with a separate large-power vertical rolling mill, equipped with a super-large opening AGC variable elevation rolling four-high mill and a world-leading ultra-high capacity width control fully hydraulic lower drive vertical rolling mill. It integrates advanced technologies such as split transverse roll-changing technology and digital simulation technology, boasting the strongest rolling capacity among similar equipment. The rolling capacity and reliability of the equipment have been significantly improved, and the overall process equipment technology of the main rolling line has reached the world's advanced level. In addition to rolling conventional continuous casting slabs, the equipment is more suitable for rolling ultra-thick mold casting slabs, with a maximum product thickness of up to 800mm.

⭕[Saudi Arabia to Invest 1.5 Billion Euros in New Silicon Steel Plant]

Recently, the Slovenian Steel Group (SIJ) and the Saudi Arabian government reached a cooperation agreement to build a silicon steel plant in Ha'il Port, Saudi Arabia. This marks SIJ's first key step in overseas investment, opening a new chapter for deep cooperation between the two parties in the steel sector. The total investment in this project amounts to 1.5 billion euros, with funding primarily provided by the Saudi government, while SIJ will contribute its advanced high-tech solutions. In addition to constructing a silicon steel production line, the project also includes a hot-rolled strip steel plant, which will be jointly promoted by SIJ and Saudi engineering company WAHAJ.

The plant, a collaborative effort of multiple parties, is expected to commence production by 2029, injecting new vitality into the local steel industry.

⭕According to data from the General Administration of Customs on March 7, 2025, China exported 892 ships from January to February 2025, down 0.7% YoY.

From January to February 2025, China exported 689.528 million household appliances, up 9.4% YoY.