【SMM Steel Market Morning Brief】Li Qiang: Accelerate the Implementation of Major Strategies and Reform Measures

★Macro★

01 ★★★ 【G20 Holds Second Meeting of Development Working Group, China Clarifies Position on US "Reciprocal Tariff," Multiple Parties Call for Jointly Upholding Multilateral Trade System, Opposing Unilateralism and Trade Protectionism】

From April 14 to 16, 2025, the second meeting of the G20 Development Working Group was held in Cape Town, South Africa. China stated at the meeting that international trade is the engine of global development. The recent "reciprocal tariff" policy introduced by the US government has severely undermined the international trade system, disrupted global industry chains and supply chains, and caused continuous shocks to the world economy, effectively depriving the development rights of countries in the Global South. This is a typical act of unilateralism, protectionism, and economic bullying. The G20 is the main forum for international economic cooperation, bearing the responsibility and mission of addressing major issues in global economic governance and jointly tackling global challenges. G20 members should adhere to the correct direction of globalization, strengthen unity, refrain from using trade restrictive measures, oppose trade protectionism, and jointly uphold a rules-based multilateral trade system.

02 ★★★ 【Li Qiang: Promote Early and Swift Implementation of Policy Measures at Key Time Windows, Be Bold to Break Conventions When Necessary to Grasp Policy Intensity】

The State Council conducted its 13th thematic study session with the theme of "Strengthening Expectation Management, Coordinating Policy Implementation and Expectation Guidance." Premier Li Qiang pointed out that expectation management is comprehensive and requires a stable expectation awareness in all aspects of policy formulation, implementation, and government work. It is particularly important to enhance the relevance and effectiveness of policies in response to changing situations. Key policy focuses should be identified, and issues with a bellwether effect should be addressed with targeted and concentrated measures, timely introducing powerful and effective policy initiatives. Policy timing should be carefully considered, promoting early and swift implementation of policy measures at key time windows to positively influence expectations. Policy intensity should be grasped, and when necessary, conventions should be boldly broken, deploying a "stimulus policy package" to truly benefit the market. Policy communication and interpretation should be strengthened, ensuring active and precise delivery of policies, enhancing interaction and communication with the market, allowing the market to fully understand and utilize policies, and ensuring that policies truly benefit the public and enterprises.

03 ★★★ 【Li Qiang: Accelerate the Implementation of Major Strategies and Reform Measures, Guide the Formation of Clear and Stable Market Expectations】

The State Council conducted its 13th thematic study session with the theme of "Strengthening Expectation Management, Coordinating Policy Implementation and Expectation Guidance." Premier Li Qiang emphasized during the session the need to deeply study and implement the important instructions of General Secretary Xi Jinping and the Party Central Committee's decisions and deployments on stabilizing expectations and strengthening confidence. He called for a deeper understanding of expectation management, promoting stable and positive social expectations in the current context, and forming a strong synergy to address risks and challenges and jointly promote high-quality development.

★Industry and Downstream★

01 ★★★ 【SMM Building Materials Total Inventory】

On April 17, SMM reported that the total rebar inventory this week was 6.8477 million mt, down 421,000 mt WoW, a decrease of 5.79% MoM, and down 22.64% YoY on a lunar calendar basis. The total wire rod inventory this week was 1.3918 million mt, down 234,600 mt WoW, a decrease of 14.42% MoM, and down 26.40% YoY on a lunar calendar basis.

02 ★★★ 【SMM HRC Social Inventory】

This week, SMM statistics from 86 warehouses nationwide (large sample) showed that the HRC social inventory was 3.8347 million mt, down 195,800 mt WoW, a decrease of 4.86% MoM, and down 8.8% YoY on a Gregorian calendar basis. The national social inventory continued to decline this week. By region, the declines in south China, east China, and north China markets were greater than those in central China and north-east China markets.

03 ★★ 【Suzhou New Housing Provident Fund Policy: Families with Multiple Children Can Borrow Up to 2.1 Million】

The Suzhou Housing Provident Fund Management Center issued the "Notice on Further Increasing the Support for Housing Provident Fund Loans." Key points of the policy include: Families raising two minor children can use housing provident fund loans to purchase their first or second self-occupied homes, with the loan amount increased by 30% based on the eligible loan amount. Families raising three or more minor children can use housing provident fund loans to purchase their first or second self-occupied homes, with the loan amount increased by 40% based on the eligible loan amount. Using housing provident fund loans to purchase "two smart and one full" new improved residential properties, the loan amount can be increased by 20% based on the eligible loan amount. If the loan applicant meets multiple conditions for increasing the housing provident fund loan amount in Suzhou, the highest increase ratio will be applied, and the increased amounts will not be cumulatively calculated. The policy will take effect from May 15, 2025, and will be valid for 5 years.

★Other Hot Topics★

⭕【Baosteel: Acquires 49% Equity in Maanshan Iron & Steel Co., Ltd. Through Equity Acquisition and Capital Increase, Total Consideration of 9 Billion】Baosteel (600019.SH) announced that the company plans to acquire 35.42% equity in Maanshan Iron & Steel Co., Ltd. held by Maanshan Iron & Steel Co., Ltd. for 5.139 billion yuan in cash, and simultaneously increase capital in Maanshan Iron & Steel Co., Ltd. by 3.861 billion yuan in cash, with a total expected investment of 9 billion yuan. After the completion of this transaction, the company will hold 49% equity in Maanshan Iron & Steel Co., Ltd. The above investment amount is only an estimated amount, and the final amount will be determined based on the net asset appraisal value of Maanshan Iron & Steel Co., Ltd. filed by the authorized filing agency.

⭕【White House Says It Has Not Received a Call from China, US Media: Overestimated the Impact of Tariffs on China】CNBC published an article on April 16, stating that a US corporate executive revealed that the White House confirmed to him that China had not called. The executive said that it is clear that the US government has greatly overestimated the impact of tariffs on China. It has been evident from the beginning that the Trump administration greatly overestimated the influence tariffs would give them over China. CNBC reported on April 16, citing an anonymous US corporate executive. The Chinese Ministry of Commerce had already held a press conference on April 10, clearly responding to the question of "whether China has engaged in negotiations with the US on tariff issues." The spokesperson for the Ministry of Commerce stated that China's position is clear and consistent. The door for talks is open, but dialogue must be conducted on the basis of mutual respect and equality. If it comes to a fight, China will also see it through to the end. Pressure, threats, and blackmail are not the right ways to deal with China. We hope the US will meet China halfway, and based on the principles of mutual respect, peaceful coexistence, and win-win cooperation, resolve differences through dialogue and consultation.

⭕【Ministry of Commerce: Chinese and US Counterpart Departments Have Maintained Working-Level Communication, Urges the US to Immediately Stop Maximum Pressure and Coercion】He Yongqian, spokesperson for the Ministry of Commerce: The Chinese Ministry of Commerce and its US counterpart departments have maintained working-level communication. China's position has always been clear, and it is open to consultations with the US in the field of trade and economy. The unilateral tariff measures were entirely initiated by the US, and the one who tied the bell must untie it. We urge the US to immediately stop maximum pressure and coercion, and to resolve differences with China through equal dialogue on the basis of mutual respect.

⭕【China-Malaysia Joint Statement: Both Sides Agree to Strengthen Infrastructure Connectivity Cooperation, Jointly Implement Key Projects Such as the East Coast Rail Link】The Joint Statement of the People's Republic of China and Malaysia on Building a High-Level Strategic China-Malaysia Community with a Shared Future was released on April 17. The statement proposed that both sides agree to strengthen infrastructure connectivity cooperation, jointly implement key projects such as the East Coast Rail Link, promote rail-sea intermodal transport, and enhance regional connectivity construction. Both sides encourage cooperation between ports of the two countries to jointly promote the development of the blue economy. Both sides are committed to exploring more strategic and iconic new highlights of cooperation on the basis of mutual trust, mutual benefit, and consensus.