The Ministry of Commerce responded again to the high-level economic and trade talks between China and the United States: The US side should be well-prepared and take actions on issues such as canceling unilateral tariff hikes.

[SMM Steel Morning Meeting Summary] From a fundamental perspective, on the supply side, there is a divergence in production profits for construction materials between BF and EAF steel mills. BF steel mills enjoy relatively considerable profits and mostly maintain normal production status. In contrast, EAF steel mills face poor profitability and difficulties in scrap collection, leading to phenomena such as shortened operating hours and production halts at electric furnace plants. On the demand side, construction site operations were hindered during the holiday, coupled with the onset of the rainy season in south China after the holiday, resulting in generally weak downstream demand. Additionally, considering that downstream construction sites had already engaged in stockpiling before the holiday, the pace of procurement slowed during the holiday, leading to a slight accumulation of construction material inventory after the holiday and increased inventory pressure. According to the SMM survey, the total rebar inventory stands at 6.1434 million mt, up 1.65% MoM. Overall, there is currently a slight accumulation of construction material inventory, with demand performance falling short of expectations and market sentiment leaning towards caution. It is expected that construction material prices may maintain a weak and volatile pattern in the short term.

[SMM Daily Briefing on Coking Coal and Coke] In terms of supply, most coking enterprises have maintained profits and have shown good enthusiasm for production, with coke production remaining at highs. Moreover, coke shipments are moderate, and inventory levels remain low. Demand side, steel mills have moderate profitability, and blast furnace pig iron production is fluctuating at highs, indicating good demand for coke. However, steel mills' coke inventory is at a medium-to-high level, and purchasing as needed is the main strategy. Overall, the imbalance in the coke fundamentals is relatively small. However, the market outlook for finished steel products is relatively pessimistic. Additionally, the cost support for coke has weakened recently, and the driving force for price increases is insufficient. In the short term, the coke market may remain stable.

[SMM Steel Morning Meeting Summary] From a fundamental perspective, on the supply side, according to the SMM survey, due to poor profits at EAF steel mills and weakening demand, some electric furnace plants in south China adjusted their operating hours downward. Some electric furnace plants in central and south-west China also conducted temporary maintenance due to raw material procurement issues. This week, the national electric furnace operating rate dropped to 36.52%, down 1.82% WoW. On the demand side, the market enthusiasm for construction materials demand in May waned, and continuous rainfall during the flooding season in south China disrupted construction schedules. Overall, the supply-demand imbalance in the fundamentals is not yet prominent. It will take some time for positive news such as RRR cuts, reductions in housing provident fund loan interest rates, and the advancement of Sino-US peace talks at the macro level to be implemented. The market sentiment is one of wait-and-see, and merchants are operating more cautiously. It is expected that construction material prices may fluctuate in the short term, and subsequent attention should be paid to any changes in the macro direction.

The People's Bank of China will strengthen macroeconomic regulation and control, and introduce a package of monetary policy measures, mainly consisting of three categories and ten policies.

[SMM Daily Coke Market Briefing] In terms of supply, the profitability of most coke enterprises was moderate, with operations fluctuating at highs. Meanwhile, coke enterprises experienced relatively smooth shipments, keeping their own inventories at low levels. Demand side, pig iron production at steel mills fluctuated at highs, with moderate production enthusiasm. However, steel mills' coke inventories remained at reasonable levels, resulting in general purchase willingness for coke. In summary, the imbalance in the fundamental supply and demand of coke was relatively small. However, steel prices fluctuated, and the market sentiment leaned heavily towards wait-and-see. This week, the coke market may remain stable for the time being.

[SMM Weekly Maintenance Statistics] According to SMM statistics, for the week (May 3 to May 9), the impact of blast furnace maintenance on pig iron production was...

Preview: The People's Bank of China, the China Securities Regulatory Commission, and other departments will make announcements at 9 a.m. on the 7th, introducing the relevant situation of "a package of financial policies to support market stability and stabilize expectations.

[SMM Steel Morning Meeting Summary] From a fundamental perspective, on the supply side, blast furnace steel mills still have profit margins in producing construction materials, and their willingness to produce remains moderate, maintaining normal production levels. EAF steel mills are facing greater difficulties in collecting scrap, with some electric furnace plants halting operations. Overall, the supply pressure for construction materials is not significant. On the demand side, during the Labour Day holiday, cargo transportation was hindered, and construction activities in some regions were temporarily suspended. This was followed by rain and flood conditions in south China, further impeding construction progress at construction sites. Overall demand performance has been average. During the holiday, the pace of downstream purchases slowed down, and inventory levels in some regions increased slightly. Overall, the fundamentals indicate a situation of weak supply and demand, with slightly insufficient market confidence and cautious operations. It is expected that steel prices will remain in the doldrums in the short term. Going forward, it is necessary to closely monitor changes in the macroeconomic environment and downstream demand.

SMM Steel News on May 6: According to SMM statistics, the estimated total resource shipments in mainstream markets this week were 246,000 mt, a decrease of 16,400 mt WoW from the shipment level last week. By market: