[SMM Steel Market Morning News] Ministry of Commerce: Will Create a Batch of International Consumption Clusters and Inbound Consumption-Friendly Business Districts; Finance Departments Are Studying Special Fund Support

★

Macro

★

01

 ★★★

[India Claims Clashes with Pakistani Troops in Kashmir]

Indian media outlets, including the Asian News International, cited military sources stating that from the night of the 26th to the early morning of the 27th, Pakistani troops used small arms to fire near the Line of Control in Kashmir. Indian troops responded effectively with small arms. No casualties have been reported so far. Pakistan has yet to respond to the incident.

02

 ★★ 

[MOFCOM: Will Foster International Consumption Hubs and Inbound-Friendly Business Districts; Finance Ministry Studying Special Fund Support]

At a press conference held by the State Council Information Office on April 27, Sheng Qiuping, Vice Minister of Commerce, stated 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 will create an international consumption environment, guide localities to optimize foreign-related payment services, enhance the effectiveness of the departure tax refund policy, foster international consumption hubs and inbound-friendly business districts, and address bottlenecks and pain points for foreigners consuming in China. Recently, the finance ministry has been actively studying the provision of special fund support for relevant parties.

03

 ★★ 

[National Bureau of Statistics: Industrial Enterprise Profits Above Designated Size Maintained Recovery Momentum in Q1]

Yu Weining, a statistician from the Industrial Statistics Department of the National Bureau of Statistics (NBS), interpreted the industrial enterprise profit data from January to March 2025. In the first quarter, profits of industrial enterprises above designated size nationwide turned from a 3.3% decline for the whole of last year to a 0.8% increase. The equipment manufacturing and high-tech manufacturing sectors emerged as key pillars of support. Profits in the equipment manufacturing sector increased by 6.4% YoY, while profits in the high-tech manufacturing sector turned from a 5.8% decline to a 3.5% increase. Additionally, influenced by the "program of large-scale equipment upgrades and consumer goods trade-ins" policy, profits in the special equipment and general equipment industries surged. Despite a complex external environment, the effects of macroeconomic policies have become evident, and the industrial economy continues to recover.

★

Industries and Downstream

★

01

 ★★★  

[Ministry of Culture and Tourism: Facilitating Tax Refunds for Departing Tourists Attracts Inbound Visitors and Helps Domestic High-Quality Goods Go Global]

At a press conference held by the State Council Information Office on April 27, Miao Muyang, Director of the Industrial Development Department of the Ministry of Culture and Tourism, stated that inbound tourism and shopping contribute to deepening exchanges and personnel interactions between China and foreign countries, promoting mutual understanding, and providing emotional value. Implementing tax refunds for departing tourists and facilitating tax-refund shopping not only attract inbound visitors and expand the scale of inbound tourism but also help more high-quality domestic goods go global, especially creative products with cultural connotations, featured handicrafts from intangible cultural heritage, and smart products and trendy domestic goods embodying the latest development achievements.

02

 ★★★ 

["Second Home to First Home" Borrowers Eligible for Special Individual Income Tax Deduction on Housing Loan Interest]

Recently, the State Taxation Administration's 12366 Tax Service Platform responded in the form of answers to hot issues, stating that "second home to first home" borrowers who meet relevant conditions are eligible for the special additional deduction for individual income tax on housing loan interest. To stabilize the housing market, China has optimized the criteria for determining the number of housing units in personal housing loans in recent years, implementing the policy of "recognizing housing units, not loans." Some homebuyers have benefited from this, with their second home mortgage interest rates being changed to first home mortgage interest rates. This change has sparked public interest in whether these homebuyers can enjoy the special additional deduction policy for individual income tax on housing loan interest. After all, if eligible, they can enjoy a pre-tax deduction of up to 12,000 yuan annually for 20 consecutive years.

03

 ★★ 

[SMM Iron Ore Shipping: Global Shipments Slightly Decline, Port Arrivals Drop Significantly]

The total global iron ore shipments by SMM were 31.32 million mt, with a slight MoM decline of 1.2%. Among them, shipments from Australia and Brazil increased slightly, while shipments from non-mainstream mines declined significantly. The total iron ore port arrivals in China by SMM were 21.6 million mt, with a significant MoM decline of 25.3% and a YoY decline of 4.1%. In terms of port arrivals by variety, there were declines in coarse powder, concentrate, lump ore, and pellet arrivals this week.

04

 ★★ 

[SMM Steel Shipping: Total Coal Port Arrivals in China Declined 18% WoW Last Week]

By port, the total coal port arrivals by SMM were 7.073 million mt, with a WoW decline of 18%. Among them, the total port arrivals in Guangzhou Port were 1.368 million mt, accounting for 19% of the total arrivals, with a WoW increase of 44%.

05

★★

[SMM Steel Shipping: Total Steel Exports from China Declined 1% WoW Last Week]

Last week (April 12-18, 2025)

The total steel port departures from global ports (excluding China) were 2.093 million mt, with a WoW decline of 3%. The total steel port departures from Chinese ports were 2.9301 million mt, with a WoW decline of 1%.

★

Other Hot Topics

★

⭕[Six Ministries Including MOFCOM: Optimize Tax Refund Procedures for Departing Tourists]Notification from six ministries, including the Ministry of Commerce, on further optimizing the tax refund policy for departing tourists to expand inbound consumption. The notification points out that the procedures for tax refunds for departing tourists should be optimized. Accelerate the improvement of the tax refund management system for departing tourists, optimize the login method at the store level, achieve automatic acquisition of invoice information, and enhance the intelligence and automation of information entry, comparison, and verification. Expand the "immediate tax refund upon purchase" service for tax refunds for departing tourists nationwide and encourage more tax refund stores and tax refund agencies to provide this service. Encourage regions with conditions to establish centralized tax refund points for "immediate tax refund upon purchase" in areas where overseas tourists are concentrated, such as large business districts, street blocks, and scenic spots. Encourage regions with conditions to package and code tax-refundable items to facilitate customs inspection without unpacking. If customs has doubts during the inspection process, it may unpack the packaging for further confirmation before proceeding with the inspection procedures.

⭕[Ken Griffin, Founder of Citadel Securities: Tariff Policy Cannot Achieve the Goal of Bringing Back U.S. Manufacturing]Ken Griffin, founder of Citadel Securities, recently criticized the Trump administration's tariff policy for failing to achieve the goal of bringing back U.S. manufacturing. Griffin believes that the current structure of the U.S. labor market has undergone fundamental changes, and factory automation is an irreversible trend. Regardless of tariffs, many traditional manufacturing jobs are being replaced by machines, and how to help this group transition is crucial, an area where the U.S. government has not performed well. The United States should focus on high-value advantage areas such as intellectual property and content creation rather than clinging to factory jobs that cannot be recovered. The "dream" of bringing manufacturing back to the United States through tariff barriers is destined to fail. Griffin also warned that trade wars have damaged U.S. relations with the rest of the world. He criticized the Trump administration for adopting a short-sighted "transaction-oriented mindset," which runs counter to the long-term national interests of the United States. Griffin pointed out that the U.S. government needs to reflect and re-examine its decisions to find a wiser and more sustainable path.

⭕[Sangang Minguang Achieved Operating Revenue of 46.058 Billion Yuan in 2024, a YoY Decrease of 3.93%]Sangang Minguang released its 2024 annual report, reporting operating revenue of 46.058 billion yuan, a YoY decrease of 3.93%; total profit of -1.607 billion yuan, a YoY decrease of 81.82%; and net profit attributable to shareholders of listed companies of -1.277 billion yuan, a YoY decrease of 91.21%. In 2024, the company produced 11.4107 million mt of steel, a YoY increase of 1.51%; 10.0244 million mt of pig iron, a YoY increase of 2.46%; 11.0679 million mt of steel products, a YoY decrease of 0.07%; 1.01 million mt of coke, a YoY increase of 32.42%; 13.5367 million mt of sinter fed into the furnace, a YoY increase of 9%; and 1.2579 million mt of pellets, a YoY decrease of 14.72%. The company's production and operation targets for 2025 are: 9.81 million mt of pig iron, 11.23 million mt of steel, 10.72 million mt of steel products, 970,000 mt of coke, 13.35 million mt of sinter fed into the furnace, 1.26 million mt of pellets; and operating revenue of 42.119 billion yuan.

⭕[HBIS Produced 29.62 Million mt of Pig Iron in 2024]HBIS released its 2024 annual report. In 2024, the company produced 29.62 million mt of pig iron, 27.93 million mt of crude steel, and 26.42 million mt of steel products; and 220,000 mt of vanadium slag. It achieved operating revenue of 121.6 billion yuan, total profit of 924 million yuan, and net profit attributable to owners of the parent company of 707 million yuan, achieving good operational results. Over the past year, the company has continuously made new progress in various key tasks. The company's production plan for 2025 is: 33.39 million mt of pig iron, 31.89 million mt of crude steel, 28.96 million mt of steel products, and 260,000 mt of vanadium slag.

⭕[Next Week, 504.5 Billion Yuan in Reverse Repo Operations Will Mature in the PBOC's Open Market]This week, the PBOC conducted a total of 972 billion yuan in reverse repo operations, 100 billion yuan in treasury cash deposits, and 600 billion yuan in MLF operations in the open market. A total of 808 billion yuan in reverse repo operations matured in the PBOC's open market this week, resulting in a net injection of 864 billion yuan in the PBOC's open market on a full-caliber basis this week. Next week, 504.5 billion yuan in reverse repo operations will mature in the PBOC's open market, with 176 billion yuan, 220.5 billion yuan, and 108 billion yuan maturing on Monday, Tuesday, and Wednesday, respectively. Thursday and Friday coincide with the Labour Day holiday, so the maturing funds will be rolled over to the first trading day after the holiday.

⭕[China Communications Construction: Net Profit Down 10.98% YoY in Q1]China Communications Construction (601800.SH) released its Q1 report, reporting operating revenue of 154.644 billion yuan, a YoY decrease of 12.58%; and net profit attributable to shareholders of listed companies of 5.467 billion yuan, a YoY decrease of 10.98%. During the reporting period, facing the dual pressures of industry conditions and the economic cycle, the company's main operating indicators remained basically stable. Its overseas business demonstrated strong resilience, and its domestic large city business developed steadily. While its traditional major transportation pillar business was under pressure, it still maintained a leading position in the construction industry. The company's newly signed contract value was 553.034 billion yuan, a YoY increase of 9.02%.

⭕[Baosteel's Operating Revenue in 2024 Was 322.116 Billion Yuan, a YoY Decrease of 6.5%]Recently, Baosteel released its 2024 annual report, reporting operating revenue of 322.116 billion yuan in 2024, a YoY decrease of 6.5%; and net profit attributable to shareholders of listed companies of 7.362 billion yuan, a YoY decrease of 38.36%. In 2024, the company produced 48.83 million mt of pig iron, 53.21 million mt of steel, and 51.41 million mt of steel products. For its 2025 business targets, the company plans to produce 48.79 million mt of pig iron, 52.61 million mt of steel, sell 52.24 million mt of commodity billets and materials, achieve total operating revenue of 312 billion yuan, and operating costs of 290.9 billion yuan.