[SMM Steel Market Morning News] In 2024, the transaction volume of Shanghai's financial market will reach 3,650.30 trillion yuan.

★Macro★
01 ★★★ 【Shanghai's Financial Market Transaction Volume Reached 3,650.30 Trillion Yuan in 2024】
The Shanghai Bureau of Statistics released data on Shanghai's economic performance in 2024. The data showed that in 2024, the financial market transaction volume in Shanghai reached 3,650.30 trillion yuan, up 8.2% YoY. Among them, the interbank market transaction volume increased by 3.7%, the Shanghai Stock Exchange's securities transaction volume rose by 13.1%, and the Shanghai Futures Exchange's transaction volume grew by 25.0%.

02 ★★★ 【Key Points from the State Council Information Office Press Conference (PBOC)】
PBOC:
1. Securities, fund, and insurance companies have conducted two swap convenience operations totaling 105 billion yuan, with a significant increase in proprietary stock investment by securities firms.
2. The 55 billion yuan swap convenience operation in January this year can be used at any time for financing and increasing stock holdings.
3. Policies for stock repurchase and increased holdings refinancing have been continuously optimized, reducing the self-owned capital ratio for loan applications from 30% to 10% and extending the maximum loan term from one year to three years.
4. The scale and response speed of swap convenience operations for securities, fund, and insurance companies are expected to see significant improvements.
5. The PBOC will enhance the convenience of using policy tools and promote the expansion and increase of these tools when appropriate.
6. Over 300 publicly listed firms have disclosed plans to apply for stock repurchase and increased holdings loans, with a total cap exceeding 60 billion yuan.
7. Relevant policies will continue to be optimized to enhance the convenience of tool usage, and the expansion and increase of tools will be promoted at appropriate times, allowing relevant institutions to access sufficient medium and long-term funds for investment as needed.

★Industry and Downstream★
01 ★★★ 【SMM HRC Weekly Balance & Social Inventory Overview】
Social inventory began pre-holiday buildup but performed better than seasonal trends.
This week, SMM's statistics for HRC social inventory across 86 warehouses nationwide (large sample) stood at 3.0949 million mt, up 175,400 mt WoW (+6.01%) and down 25.38% YoY (lunar calendar). This week, the national social inventory buildup accelerated. By region, inventory slightly decreased in central and north-east China, while the buildup speed significantly increased in south, east, and north China.

02 ★★ 【SMM National Construction Steel Inventory Summary】
As of January 23, SMM reported the national rebar total inventory at 4.479 million mt, up 522,900 mt WoW (+13.22%) and down 45.82% YoY. The national wire rod total inventory was 976,600 mt, up 10,000 mt WoW (+1.03%) and down 46.91% YoY.

03 ★★★ 【Multiple Regions Finalise 2025 Transportation Infrastructure Investment Plans】
Focusing on improving the national comprehensive three-dimensional transportation network, strengthening and supplementing transportation hubs, highway construction, and rural road renovation, multiple regions have finalised their 2025 transportation infrastructure investment plans. According to transportation work meetings in various regions, this year's transportation infrastructure investment will place greater emphasis on "effectiveness" and the role of transportation infrastructure construction in supporting and promoting high-quality economic development.

04 ★★★ 【Hubei Plans to Complete 60 Billion Yuan Investment in Ordinary Roads This Year】
In 2025, Hubei plans to complete a 60 billion yuan investment in ordinary roads, constructing 850 km of first- and second-class roads and upgrading 10,000 km of rural roads. According to the head of the Hubei Provincial Highway Development Center, this year, over 200 ordinary national and provincial road projects with investments exceeding 100 million yuan each will be advanced. A new round of enhancement actions will be implemented, including 1,500 km of backbone network upgrades, 3,000 km of dual-lane village road projects, 1,000 km of basic network extension and connectivity projects, and 3,500 km of substandard pavement improvement projects.

05 ★★★ 【Two Studios of Ansteel Group Officially Established】
The Ansteel Group's studio for non-party representatives to provide suggestions, led by Dejun Li, and the Ansteel Mining Design and Research Institute studio were officially established. These studios provide new platforms for Ansteel Group's united front members to offer advice and contribute to the company's development, gathering broader united front forces to accelerate the construction of a more internationally influential world-class enterprise.

★Other Hot Topics★
⭕ 【Beijing's Q1 Major Projects Commence】
Recently, the 2025 Q1 major projects commencement event in Beijing was held at the Yizhuang Comprehensive Bonded Zone project site. A total of 160 major projects, with a combined investment exceeding 340 billion yuan, were launched. Municipal Party Secretary Li Yin attended the event, and Deputy Party Secretary and Mayor Ying Yin announced the commencement of the projects.

⭕ 【Yongyang Special Steel Group's Small Section Line Project Successfully Commissioned】
The small section line project of Yongyang Special Steel Group Co., Ltd. marks the final project in the company's relocation from urban areas. Its commissioning signifies the full completion of Yongyang Special Steel's relocation project, with the new area entering a new phase of full production and efficiency. The production line is designed for an annual output of 200,000 mt, mainly producing small light rails, small-sized steel tower angle steel/channel steel, rail gauge plates, and light rail joint clamps. It adopts a semi-continuous rolling process route with a traversable BD rolling mill, intermediate rolling mill group, and universal finishing mill group. A reheating device is configured before the universal rolling mill to ensure the final rolling quality of ultra-thin and small-section rolled products.