Sheng Qiuping, Vice Minister of Commerce, said at a press conference held by the State Council Information Office on April 27 that the Ministry of Commerce will continue to deepen the construction of international consumption center cities and support the expansion of inbound consumption. The Ministry of Commerce will create an international consumption environment, guide localities in optimizing foreign-related payment services, enhance the effectiveness of the departure tax refund policy, and establish a number of international consumption clusters and inbound consumption-friendly business districts to address the bottlenecks and pain points faced by foreigners in consuming in China. Recently, the financial authorities have been actively studying the provision of special fund support to relevant parties.

[SMM Steel Morning Meeting Summary] From a fundamental perspective, on the supply side, EAF steel mills, affected by profitability, have mostly maintained their previous production levels, with relatively stable output of building materials. Blast furnace steel mills have recently seen an increase in maintenance activities, leading to a reduction in supply pressure after the holiday. On the demand side, influenced by rumors of crude steel production cuts, market sentiment has significantly improved. Coupled with the ongoing restocking demand before the May Day holiday, steel inventories have continued to decline, with some provinces experiencing shortages of rebar specifications. The bottom support for steel prices remains relatively firm. Overall, the market currently maintains a weak balance between supply and demand, with relatively small fundamental imbalances. Short-term prices are likely to fluctuate with market sentiment. It is expected that steel prices will continue to hold up well today, but caution should also be exercised regarding potential sentiment changes due to the insufficient sustainability of the rumors' popularity.

【SMM HRC Daily Trading Volume】On April 27, the combined daily trading volume of HRC among sample enterprises in four cities (Shanghai, Lecong, Tianjin, Ningbo) tracked by SMM was 10,860 mt, down 1,060 mt or 8.9% day-on-day. There was no futures guidance today. Spot prices initially surged significantly, followed by a slight correction in the afternoon. The night session on Friday saw a strong rally, but the wait-and-see sentiment among end-users remained severe. Market trading volume fell short of expectations, with daily trading volume fluctuating rangebound on a daily basis.

[SMM Daily Review of Coking Coal and Coke] In terms of supply, coking enterprises have moderate profits, with good operating rates and strong sales, keeping coke inventory at a low level. Demand side, pig iron production from blast furnaces at steel mills remains high, creating a rigid demand for coke. Additionally, some steel mills have a certain stockpiling demand ahead of the Labour Day holiday, resulting in moderate enthusiasm for coke procurement. In summary, there is a relatively small imbalance in the coke fundamentals. However, the market has once again heard about policies to reduce crude steel output, and downstream players have strong wait-and-see sentiment. In the short term, coke prices may remain stable.

There was no futures market guidance today. However, influenced by the rally in the night session on Friday, spot prices surged significantly in the morning session today. As trading performance was average in the afternoon, prices were adjusted slightly downward. In terms of supply, there were still relatively few new rolling line maintenance activities at steel mills, and HRC supply fluctuated at a high level. Demand side, despite the high spot prices today, end-users remained relatively cautious, with a robust wait-and-see sentiment, and the overall demand release was prudent. Cost side, steel mills may have expectations of raw material restocking before the holiday, but with limited increases in pig iron production, the support from raw materials is neutral. Overall, the fundamental imbalance in the HRC market is relatively small, and there are still expectations for end-user restocking before the holiday. "Rumors of production restrictions" have been circulating in the market, with their authenticity difficult to discern. In the short term, it is advisable to view this as an improvement in sentiment, rather than excessively chasing long positions, and to be cautious of a sentiment retreat and a return to lower levels.

On the 25th local time, US President Trump told reporters on the Air Force One that he would not cancel the tariffs imposed on China unless China made substantial concessions. In the past week, the US side has been sending out confusing and even contradictory signals on the issue of tariffs on China. On the evening of the 25th, a spokesperson for the Chinese Embassy in the US emphasized that China and the US have not engaged in consultations or negotiations on the tariff issue, let alone reached an agreement. If the US side truly wants to resolve the issue through dialogue and negotiation, it should correct its mistakes, stop threats and blackmail, and completely cancel all unilateral tariff measures against China. On one hand, they claim to reach an agreement with China, while on the other hand, they continue to exert extreme pressure. This is not the correct way to deal with China, nor is it feasible.

【SMM Steel Morning Meeting Summary】In terms of supply, due to the profit margin of coke enterprises, production enthusiasm is high, and product shipments are very smooth, the supply-demand pattern of the coke market performs well. Demand side, the pig iron production of steel mills continues to remain at a high level, with a considerable daily average production, showing a rigid demand for coke. Moreover, with the approaching May Day holiday, some steel mills have engaged in minor restocking activities. The fundamentals of coke are generally stable, but the cost support is insufficient. In summary, the coke market is expected to maintain a stable operation pattern in the short term, with an anticipated second round of price increase for coke.