According to SMM data, as of April 24, the weekly average domestic HRC production was 3.3262 million mt, showing a trend of being lower in the first half and higher in the second half, up 0.13% WoW from March. The increase in HRC production in April was slightly lower than expected, primarily due to the continued impact of maintenance at some steel mills in early April. In addition, as HRC profits declined, some steel mills shifted their pig iron production to construction materials in mid-April. Under the combined influence of these factors, the increase in HRC production in April fell short of expectations.

[SMM Weekly Maintenance Statistics] According to SMM statistics, for the week (April 26 to May 2), the impact of blast furnace maintenance on pig iron production was...

Zou Lan, Deputy Governor of the People's Bank of China (PBOC), stated at a press conference held by the State Council Information Office on April 28 that the PBOC would implement RRR cuts and interest rate cuts in a timely manner based on the domestic and overseas economic situation and the operation of financial markets, to maintain ample liquidity, leverage the dual functions of the monetary policy toolkit in terms of both aggregate and structural aspects, create new structural monetary policy tools, and provide targeted financial support in key areas focused on stabilizing employment and promoting growth. The PBOC is also exploring ways to enrich its policy toolkit and will introduce incremental policies in due course to help stabilize employment, enterprises, markets, and expectations.

【SMM Steel Morning Meeting Summary】Yesterday, rebar futures maintained a fluctuating trend, closing at 3,129, up 0.61% from the previous trading day. In the spot market, prices in some regions rose slightly, with increases ranging from 10 to 30 yuan/mt. The futures market lacked sustained performance, and market sentiment weakened somewhat, with overall trading volume being average. On the supply side, there has been strong demand for billet exports recently, with profit margins higher than those for rebar. Some manufacturers have nearly filled their billet orders for May-June, and there are expectations of reduced finished steel production. Additionally, many blast furnace steel mills have recently announced new maintenance plans, which may alleviate the supply pressure for finished steel after the holiday. On the demand side, influenced by the pullback in the morning session, market enthusiasm has diminished, with end-user purchases primarily driven by immediate needs. Overall, the current fundamental situation for construction steel is moderate. However, with intensified competition in the futures market and increased market caution, it is expected that construction steel prices will maintain a fluctuating trend in the short term.

In April, the price spread between cold-rolled and hot-rolled steel narrowed sharply. According to SMM data, as of April 25, the nationwide average price of cold-rolled steel fell by 3.5% MoM from the March average, while the nationwide average price of HRC fell by 2.9% MoM. The average price spread between cold-rolled and hot-rolled steel decreased from 699 yuan/mt in March to 655 yuan/mt, narrowing by 6.4% MoM.

[SMM Daily Briefing on Coking Coal and Coke] In terms of supply, coking enterprises have maintained normal operating levels, with relatively stable coke production. Coke shipments have been smooth, and coke inventory has remained at low levels. Demand side, pig iron production at steel mills has fluctuated at highs, indicating a rigid demand for coke. Additionally, influenced by the restocking demand before the Labour Day holiday, steel mills have shown good enthusiasm for coke procurement. In summary, the fundamental imbalance in the coke market is relatively weak. However, the cost support for coke is also weak. It is expected that the coke market will remain stable before the Labour Day holiday.