【SMM Steel Market Morning Brief】Trump Claims China Must Make Substantial Concessions, Otherwise Tariffs on China Will Not Be Lifted

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Macro

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【Trump States China Must Make Substantial Concessions or Tariffs Will Not Be Lifted】

US President Trump stated aboard Air Force One on the 25th that unless China makes substantial concessions, the tariffs imposed on China will not be lifted. Over the past week, the US has sent mixed and even contradictory signals regarding tariffs on China. On the evening of the 25th, a spokesperson for the Chinese Embassy in the US emphasized that there have been no consultations or negotiations between China and the US on the tariff issue, let alone any agreements. If the US truly wishes to resolve the issue through dialogue and negotiation, it should correct its mistakes, stop threats and coercion, and completely remove all unilateral tariff measures against China. Saying one thing about reaching an agreement with China while simultaneously applying maximum pressure is not the correct way to engage with China and is bound to fail.

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【Two Rainfall Events with Severe Convective Weather Expected in Guangxi Next Week, Caution Against Sudden Shift from Drought to Flood】

According to the Guangxi Meteorological Observatory, this week saw three rainfall events with severe convective weather in Guangxi (April 19, 20, and 22-24), reducing the area of extreme drought by 25.7% WoW. It is expected that in the coming week, Guangxi will experience two moderate rainfall events, with localized heavy rain accompanied by severe convective weather. Efforts should be made to address both flood prevention and drought relief, with caution against a sudden shift from drought to flood.

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【Current Round of Israel-Palestine Conflict Has Resulted in 51,495 Deaths in Gaza】

The Gaza health department announced on April 26 that in the past 24 hours, Israeli military actions in Gaza have caused 56 deaths and 108 injuries. Since the outbreak of the current Israel-Palestine conflict on October 7, 2023, Israeli military actions in Gaza have resulted in 51,495 deaths and 117,524 injuries. Since March 18, 2025, the death toll has reached 2,111, with 5,483 injured.

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【Macron States Zelensky Reaffirms Ukraine's Readiness for Unconditional Ceasefire】

French President Macron stated on April 26 that he held a "very positive" meeting with Ukrainian President Zelensky in Rome. Macron noted that he and former US President Trump share the goal of ending the Ukraine conflict. Macron revealed that Zelensky reaffirmed Ukraine's readiness for an unconditional ceasefire and expressed hope to work with the US and European countries to advance this process. He also stated that France will continue its efforts under the "Volunteer Alliance" framework launched in Paris this March to achieve a ceasefire and ultimately reach a comprehensive and lasting peace agreement.

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【Peskov: Putin and US Envoy Confirm Russia's Willingness to Negotiate with Ukraine Without Preconditions】

Kremlin spokesperson Peskov stated that during a meeting with US Special Envoy for Middle East Affairs Whitcoff, President Putin confirmed Russia's willingness to negotiate with Ukraine without preconditions. On the 25th, President Putin held talks with Whitcoff at the Kremlin regarding the Ukraine issue. This marks the fourth meeting between Putin and Whitcoff this year. Kremlin aide Ushakov revealed that the meeting lasted three hours and was constructive. Discussions included the possibility of resuming direct negotiations between Russia and Ukraine.

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【Xinhua Commentary: Fully Utilize a More Proactive Fiscal Policy, Ensure Fiscal Funds Are Effectively Deployed】

Xinhua published a commentary on April 26 titled "China's Economic Observation in Q1 | Fully Utilize a More Proactive Fiscal Policy." The article emphasized that fully utilizing a more proactive fiscal policy requires ensuring that fiscal funds are effectively deployed and implemented. Efforts should focus on improving the efficiency of fiscal fund allocation and utilization, optimizing expenditure structures, and strengthening performance management to ensure every penny is spent on critical areas of national and public interest. "Effectively utilizing funds where they are most needed" should serve as a benchmark for evaluating the work of relevant departments. Continuous dynamic assessments of policy implementation, improvements to incentive mechanisms, and mobilization of grassroots enthusiasm and initiative are essential to ensure policy implementation and that funds truly benefit enterprises and the public.

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【Finance Minister Lan Fo'an: China to Adopt More Proactive Macro Policies to Achieve Annual Growth Targets】

On April 24, 2025, the World Bank held its 111th Development Committee meeting in Washington, D.C., where the report "Jobs: The Path to Prosperity" was reviewed and approved. China's Finance Minister and World Bank Governor Lan Fo'an attended and delivered a speech. Lan stated that current trade protection policies pose significant risks to global poverty reduction and development efforts. China calls on the World Bank and other international organizations to advocate for non-discrimination and free trade principles to jointly maintain an open and cooperative international environment. Lan highlighted that China is both a beneficiary and contributor to global economic integration, with its contribution to global economic growth remaining around 30% in recent years. Amid the current complex external environment, China will adopt more proactive macro policies to achieve its annual growth targets, continuing to bring stability and momentum to the global economy. China remains committed to the basic national policy of reform and opening up, has granted zero-tariff treatment to products from all least-developed countries with diplomatic ties, and is willing to further open its market to share the benefits of its vast market with the world, achieving mutual benefits and win-win outcomes.

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Industry and Downstream

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【Strong Start in Q1, Nearly 90% of Provinces Accelerate Development】

In Q1 2025, China's economy showed a steady and positive trend, with nearly 90% of provinces achieving faster YoY growth compared to the full year of 2024. The coverage of provinces with steady and positive economic growth further expanded. Regionally, the ten eastern provinces played a key supporting role, leading industrial upgrades and international competitiveness. The central region demonstrated strong economic recovery, with notable achievements in industrial upgrades and export-driven growth. Meanwhile, the effects of the "Two Major" and "Two New" policies continued to be realized, with double-digit growth in industrial investment across multiple provinces, providing strong support in key areas. Looking ahead to Q2, experts interviewed believe that accelerated issuance of special bonds and the commencement of major projects will support stable economic operations. However, policies such as stabilizing employment need to be further advanced to consolidate the positive economic momentum.

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【Sichuan: Province-Wide Cancellation of Standards for Ordinary and Non-Ordinary Residential Housing】

The Sichuan Provincial Government issued a notice regarding the cancellation of standards for ordinary and non-ordinary residential housing. 1. Province-wide cancellation of standards for ordinary and non-ordinary residential housing. 2. According to the "Provisional Regulations on Land Value-Added Tax of the People's Republic of China" and its implementation rules, taxpayers selling standard residential housing that meets the following three conditions will continue to be exempt from land value-added tax if the value-added amount does not exceed 20% of the deductible project amount: (1) The plot ratio of the residential community is above 1.0; (2) The building area of a single unit is below 140 m²; (3) The actual transaction price is less than 1.2 times the average transaction price of housing on land of the same grade. This notice takes effect from the date of issuance and will remain valid until December 31, 2029.

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【Cui Dongshu of CPCA: 95,000 Imported Cars in January-March 2025, Down 39% YoY】

Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA), stated that China's car imports have been declining at an annual rate of about 8% from 1.24 million units in 2017 to just 800,000 units in 2023. In 2024, car imports reached 700,000 units, down 12% YoY. From January to March 2025, car imports totaled 95,000 units, down 39% YoY, marking a rare significant decline for the first quarter in recent years. Among them, March imports were 39,000 units, down 27%, showing slight improvement in the decline.

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Other Hot Topics

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⭕【US Government Lawyers: Immigration Bureau Restoring Some International Student Visa Registrations】US media reported on the 25th that US Immigration and Customs Enforcement is revoking decisions to terminate the legal status of some international students across the country and is restoring their visa registrations.

⭕【Indian Media Reports India-Pakistan Clash in Kashmir】According to Indian media reports on the 26th, India and Pakistan clashed again in the Kashmir region on the evening of the 25th. Pakistani media have not reported on the incident, and the Pakistani military has not issued any statements or notifications. Indian Army sources claimed that the small-arms clash was initiated by Pakistan, and India responded "appropriately."

⭕【US E-Commerce Platforms Raise Prices】Recently, Trump's tariff policies have intensified global trade tensions, increasing operational costs for businesses. According to US media reports on April 25, many merchants on US e-commerce platforms like Amazon have begun raising product prices. Data from a price analysis agency shows that since April 9, prices for nearly 1,000 products on Amazon's US website have risen significantly, covering categories such as clothing, home goods, electronics, and toys, with an average price increase of nearly 30%. Several cross-border e-commerce platforms, including Temu and Shein, have also announced price adjustments starting April 25 due to "recent changes in global trade rules and tariffs" that have raised operational costs. Many US netizens on social media lamented that items in their shopping carts became more expensive overnight.

⭕【Baosteel: Q1 Net Profit of 2.434 Billion Yuan, Up 26.4% YoY】Baosteel (600019.SH) announced that in Q1 2025, its operating revenue was 72.88 billion yuan, down 9.8% YoY, while net profit attributable to shareholders of the publicly listed firm was 2.434 billion yuan, up 26.4% YoY. The company stated that the profit growth was mainly due to proactive responses to the severe and complex external environment, solid implementation of reform measures, enhanced integration and coordination across the system, and a focus on key tasks such as reducing pig iron costs, ensuring smooth blast furnace operations, and advancing smart manufacturing. Additionally, the company accelerated the implementation of its intelligent transformation strategy, strengthened coordination between domestic sales and exports, enhanced international competitiveness, adhered to technological innovation, and achieved technological leadership.