Steel News Roundup

SHANGHAI, May 31 (SMM) — This is a roundup of news in the steel industry for last week.

China to take measures to stabilise the pricing and supply of commodities

China's National Development and Reform Commission (NRDC), General Administration of Market Regulation, MIIT, SASAC, and CSRC held a meeting to give instructions to key enterprises in iron ore, steel, copper, and aluminium industries. China Iron and Steel Industry Association and China Nonferrous Metals Industry Association also attended the meeting. The authorities will closely monitor the trend of commodity prices, strengthen the joint supervision of commodity futures and the spot market, and severely investigate and punish illegal acts such as monopoly agreements, disseminating false information, and speculation.

Chinese Premier Li Keqiang had conversations with manufacturing entrepreneurs during his inspection tour in Ningbo on May 24, and understood the adverse effects of rising commodity prices on downstream companies. Li said that downstream companies had made great efforts to tackle with the adverse impact, and had put forward some good suggestions. The government will ensure the supply and price stabilisation of commodities, rationally guide market expectations, and support companies to cope with operating difficulties through tax reduction policies and direct monetary policy tools.

China will adhere to a problem-oriented approach on the optimisation of industrial structure on carbon peaking

China's first plenary meeting of carbon peaking and neutralisation was held in Beijing. Han Zheng, Vice premier of the State Council pointed out on the meeting that China will adhere to a problem-oriented approach, and formulate policies on the optimisation of the industrial structure, adjustment of the energy structure, R&D and promotion of green and low-carbon technologies, improvement of the green and low-carbon policy system, and improving the laws, regulations and standard systems, etc.

The Ministry of Ecology and Environment has dispatched 11 professional teams to supervise the production and waste treatment in key industries including steel, coking, petrochemical, chemical, and glass, in order to intensify crackdown on environment violations.

SHFE to vigorously investigate abnormal transactions and speculation

Jiang Yan, the chairman of the Shanghai Futures Exchange, stated at the theme summit of the "18th Shanghai Derivatives Market Forum” on May 26 that they will closely follow market changes without intervening in the market, and vigorously investigate abnormal transactions and speculation. Timely and targeted measures shall be taken to supervise futures and currents, curb unreasonable price fluctuations, and improve the effectiveness of front-line market supervision and governance.

China's growth in auto production and sales slowed down in April

China produced 2.23 million vehicles in April, down 9.3% on the month but up 6.3% on the year, and the sales volume was 2.25 million units, down 10.8% on the month and up 8.6% on the year, according to the latest data by CAAM. Car output and sales totalled 8.59 million units and 8.75 million units in January to April, up 53.4% and 51.8% on the year. The increase narrowed 28.3 percentage points and 23.8 percentage points respectively compared with the volume in January to March.

China to further strengthen the regulation and control of real estate market

Suzhou, Hainan, Shenzhen and other cities carried out in-depth special rectification of the real estate market, and strictly implemented the restrictions on purchase, price, loan, and sales. At present, it is especially important to prevent school district housing speculation, in order to continuously promote the balanced development of education. The Secretary of the Suzhou Municipal Party Committee proposed to adjust the release time, the number of plots and the structure of the real estate market.