[SMM Steel Market Morning News] Trump: Tariffs on Canadian Steel and Aluminum to Be Raised to 50%, Effective Immediately the Next Day

★Macro★

01★★★

Trump: Tariffs on Canadian Steel and Aluminum to Be Raised to 50%, Effective the Next Day

US President Donald Trump stated that, in response to Ontario, Canada officially imposing a 25% tariff on electricity exports to the US, he has instructed the US Secretary of Commerce to impose an additional 25% tariff on all steel and aluminum products from Canada, bringing the total tariff level to 50%. This will take effect the next day (March 12) in the morning.

★Industry and Downstream★

01 ★★ 

[CAAM: Domestic Sales of Commercial Vehicles in February Up 12.6% MoM and 28.8% YoY]

According to data released by CAAM, in February, domestic sales of commercial vehicles reached 243,000 units, up 12.6% MoM and 28.8% YoY. Among them, domestic sales of trucks were 218,000 units, up 15.6% MoM and 34.4% YoY, while domestic sales of buses were 25,000 units, down 7.9% MoM and 5.2% YoY. In February, commercial vehicle exports were 70,000 units, down 6% MoM and up 13.2% YoY.

02★★★  

[CAAM: NEV Sales Accounted for 41.9% of Total New Car Sales in February]

From January to February, China's automobile production and sales reached 4.553 million units and 4.552 million units, respectively, up 16.2% and 13.1% YoY. Among them, NEV production, sales, and exports all grew by over 50% YoY. During the same period, NEV production and sales reached 1.903 million units and 1.835 million units, respectively, both up 52% YoY. NEV sales accounted for 40.3% of total new car sales. In terms of exports, NEV exports were 282,000 units, up 54.5% YoY.

03★★ 

[SMM Hot-Rolled Arrivals: Increased Arrivals in Mainstream Cities This Week, Reduction Expected Next Week]

SMM Steel reported on March 11 that, according to SMM statistics, the estimated total shipment volume in mainstream markets this week was 319,100 mt, an increase of 34,200 mt WoW.

Shanghai Market:This week, shipments to the Shanghai market remained basically stable WoW. Specifically, shipments from north-east and north China increased, while shipments to south China decreased WoW. Looking ahead, major steel mills in south China are expected to begin maintenance soon, and shipments to the Shanghai market in mid-to-late March are expected to decrease. Over the next 1-2 weeks, arrivals in the Shanghai market are unlikely to see further increases.

Lecong Market:This week, shipments to Lecong increased significantly WoW. Specifically, resources from north China remained stable, while shipments of local mainstream resources returned to normal, leading to an overall increase in arrivals. Looking ahead, in the latter half of next week, local mainstream resources (WG) will undergo new rolling line maintenance, which will slow down shipment pace. Additionally, DDH's shipments to south China this month will be halved, leading to reduced shipments in the latter half of the month. Arrivals in the Lecong market are expected to remain stable with a weak trend next week, with more significant reductions expected the week after.

04 ★★ 

[SMM Electric Furnace Operating Rate: Falling Steel Prices Squeeze Electric Furnace Profits]

According to an SMM survey, as of March 11, the operating rate of 50 major electric furnace steel mills producing construction materials nationwide was 40.6%, down 0.7% WoW. The capacity utilisation rate was 41.08%, down 0.38% WoW. The daily average production of construction materials was 91,500 mt, down 800 mt WoW.

★Other Hot Topics★

⭕[European Auto Stocks Fall as Trump Plans to Double Canadian Steel and Aluminum Tariffs]European auto stocks extended losses after US President Donald Trump announced plans to double tariffs on Canadian steel and aluminum to 50%. As of 2:39 PM Frankfurt time, the Stoxx 600 Automobiles & Parts Index was down 2.6%, while the broader market fell 1.8%. Stellantis dropped 5.9%, Mercedes-Benz fell 2.4%, and BMW declined 1.9%.

⭕[19414 Projects Nationwide Started in February, Total Investment Exceeds 10 Trillion Yuan]According to incomplete statistics, in February 2025, a total of 19,414 projects were launched nationwide, with a total investment of approximately 10,126.456 billion yuan. After the Chinese New Year holiday, various regions across the country actively promoted the commencement of major projects, striving for a "good start" to the year.

⭕[Volkswagen Group's 2024 Net Profit Down 30.6% YoY]Volkswagen Group's 2024 financial report showed that its net profit after tax in 2024 was 12.4 billion euros, down 30.6% YoY. In 2024, Volkswagen sold 9 million vehicles, a YoY decrease of 3.5%, with annual sales revenue of 324.7 billion euros, up 1% YoY. Volkswagen Group attributed the significant decline in profits to rising operating costs and intensified external competition.

⭕[Inner Mongolia Plans Nearly 200 Billion Yuan Investment in Major Water Conservancy Projects]The Inner Mongolia Water Resources Department has issued the "Action Plan for Planning Major Water Conservancy Projects in Inner Mongolia Autonomous Region," proposing five key objectives across 24 project types, including constructing backbone water network projects, improving flood prevention and disaster reduction systems, fully promoting rural revitalization, accelerating the restoration of river and lake ecosystems, and advancing smart water conservancy. The major water conservancy projects promoted by Inner Mongolia are planned to involve an investment of nearly 200 billion yuan. In 2025, total water conservancy investment across society is expected to exceed 18 billion yuan. During the "15th Five-Year Plan" period, no fewer than 500 major projects are planned, with a total investment of no less than 180 billion yuan.

⭕[Shagang Construction Material Price Policy]On March 11, Shagang announced its mid-March ex-factory prices, reducing rebar and wire rod prices by 50 yuan each. The current prices are 3,450 yuan for rebar, 3,560 yuan for coiled rebar, and 3,470 yuan for high-speed wire rod. All prices include tax and take effect from March 11, 2025.

⭕[Environmental Impact Report Approved for Hebei Jinxi Steel's 1,880mm Hot Rolling Coil Production Line Project]Main Part of the Project: Construction of one 1,880mm hot rolling production line, including insulation furnaces, heating furnaces, high-pressure water descaling devices, rolling mills, laminar cooling and hot output roller tables, and coilers.