[SMM Steel Market Morning News] National Development and Reform Commission (NDRC): Most policies to stabilize employment and the economy will be implemented by month-end June

★Macro★

01

 ★★★ 

LPR for loans over 5 years drops by 10 basis points; 1 million yuan mortgage over 30 years reduces by 20,000 yuan

The latest Loan Prime Rate (LPR) was released today, with the five-year LPR lowered to 3.5% from 3.6%. For a commercial loan of 1 million yuan with a 30-year term and equal principal and interest repayments, the 10 basis point drop in LPR will reduce the monthly payment by 56 yuan, accumulating to a total reduction of 20,000 yuan over 30 years.

02

 ★★ 

NDRC: Most policies to stabilize employment and economy will be implemented by the end of June

The National Development and Reform Commission (NDRC) held a May press conference. At the conference, Li Chao, Deputy Director of the Policy Research Office of the NDRC and spokesperson for the Commission, stated that on the basis of accelerating the implementation of existing policies, the NDRC has collaborated with relevant departments to expedite the introduction of several measures to stabilize employment, stabilize the economy, and promote high-quality development. Currently, relevant departments are urgently implementing these measures, with most policy initiatives planned to be in place by the end of June. Meanwhile, the NDRC will continue to strengthen policy pre-research and reserves on a regular and open-ended basis, continuously improving the policy toolkit for stabilizing employment and the economy to ensure timely implementation when needed.

03

 ★★ 

NDRC: Aims to issue the full list of "two major" construction projects for this year by the end of June

The NDRC held a May press conference on May 20. Li Chao, Deputy Director of the Policy Research Office of the NDRC and spokesperson for the Commission, stated that the NDRC aims to issue the full list of "two major" construction projects for this year by the end of June, ensuring high standards in organization and implementation.

04

 ★★ 

Zhao Chengfeng of NDRC: Central budgetary investment plan for 2025 urban renewal projects to be issued by the end of June

Zhao Chengfeng, Head of the Fixed Asset Investment Department of the NDRC, stated at a press conference held by the State Council Information Office that the NDRC will continue to advance various urban renewal initiatives and increase central investment support. This year, a special central budgetary investment has been established specifically for urban renewal to support the construction of public infrastructure and public service facilities related to urban renewal. In addition to supporting projects such as the renovation of old urban residential communities and urban village renovation, the scope of support has been expanded to include projects for the transformation and upgrading of dilapidated urban housing, old neighborhoods, and old factory districts. Currently, the NDRC is organizing plan submissions and project evaluations, and plans to issue the central budgetary investment plan for 2025 urban renewal projects by the end of June this year.

★Industries and Downstream Sectors★

01

Xi Jinping: To Advance Chinese-style Modernization, We Must Continue to Excel in Manufacturing

On the afternoon of the 19th, General Secretary Xi Jinping visited Luoyang Bearing Group Co., Ltd. in Henan Province for a field trip. He toured the company's intelligent factory, learned about the performance and applications of various bearing products, inspected the intelligent production lines, and had a cordial conversation with the company's employees. Xi Jinping said that we have adhered to developing the real economy, transitioning from relying on imports for matches, soap, and iron in the past to becoming the world's largest manufacturing country with the most comprehensive industrial categories. This path has been the right one. We must continue to excel in manufacturing, persist in self-reliance and self-improvement, master key core technologies, promote the integration of industry, academia, and research, and cultivate a large number of high-quality talents. Only in this way can Chinese-style modernization be truly achieved.

02

In April 2025, major excavator manufacturers sold 22,142 excavators, up 17.6% YoY

According to statistics from the China Construction Machinery Industry Association, in April 2025, major excavator manufacturers sold 22,142 excavators, up 17.6% YoY. Of these, domestic sales reached 12,547 units, up 16.4% YoY, and exports amounted to 9,595 units, up 19.3% YoY. From January to April 2025, a total of 83,514 excavators were sold, up 21.4% YoY. Domestic sales reached 49,109 units, up 31.9% YoY, and exports amounted to 34,405 units, up 9.02% YoY. In April 2025, 25 electric excavators were sold (1 unit below 6 mt, 2 units in the 10-18.5 mt range, 18 units in the 18.5-28.5 mt range, 1 unit in the 28.5-40 mt range, and 3 units of 40 mt and above).

03

China's automobile production reached 2.604 million units in April

According to data from the National Bureau of Statistics (NBS), by industry, in April, 36 out of 41 major industrial categories maintained year-on-year growth in added value. Among them, the automobile manufacturing industry grew by 9.2%.

By product, in April, 341 out of 623 industrial products above designated size saw year-on-year growth in production. Among them, automobile production reached 2.604 million units, up 8.5% YoY, including 1.228 million NEVs, up 38.9% YoY.

From January to April, automobile production reached 10.116 million units, up 11.1% YoY, including 4.395 million NEVs, up 43.7% YoY.

04

China's production figures for four major home appliances in April released

According to data from the National Bureau of Statistics (NBS), in April 2025, China's air conditioner production reached 30.833 million units, up 1.6% YoY. The cumulative production from January to April reached 105.314 million units, up 7.2% YoY.

In April, the national production of refrigerators reached 8.179 million units, down 10.7% YoY. The cumulative production from January to April was 32.204 million units, down 0.7% YoY.

In April, the national production of washing machines reached 9.651 million units, up 2.6% YoY. The cumulative production from January to April was 39.188 million units, up 10.9% YoY.

In April, the national production of color TVs reached 16.074 million units, down 9.8% YoY. The cumulative production from January to April was 59.666 million units, down 3.9% YoY.

05

[SMM Shenyang HRC Inventory] This week, the HRC inventory in Shenyang was 99,000 mt.

This week, the HRC inventory in Shenyang was 99,000 mt, down 5,300 mt or 5.08% WoW, and down 70,000 mt or 41.42% YoY.

06

[SMM Zhangjiagang HRC Inventory] This week, the inventory in Zhangjiagang continued to decline steadily.

This week, the HRC inventory in Zhangjiagang was 349,000 mt, down 22,000 mt or 5.93% WoW. It increased by 10.44% on a solar calendar YoY basis and by 12.58% on a lunar calendar YoY basis.

07

[SMM HRC Arrivals] Arrivals in mainstream markets decreased significantly.

SMM Steel News on May 20: According to SMM statistics, the estimated total resource shipments in mainstream markets this week were 207,500 mt, a decrease of 37,000 mt compared to the shipment level last week.

08

[SMM Electric Furnace Operating Rate] Two electric furnace plants resumed production as scheduled, with the national operating rate rising to 38.46%.

According to the SMM survey, as of May 20, the operating rate of 50 electric furnace steel mills mainly producing construction materials nationwide was 38.46%, up 1.3% from the previous period. The capacity utilisation rate was 39.72%, up 1.08% WoW. The daily average production of construction materials was 88,400 mt, an increase of 2,400 mt WoW.

★Other Hot Topics★

⭕[Six Major State-Owned Banks Collectively Lower Deposit Interest Rates Today, All One-Year Fixed Deposit Rates Reduced by 15 Basis Points]Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Postal Savings Bank of China, and Bank of Communications all announced today that they have lowered their deposit interest rates, with the reductions being consistent across the board. The specifics are as follows:

①Bank of China lowered its RMB deposit interest rates on May 20. The demand deposit interest rate was lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with terms of three months, six months, one year, and two years were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for fixed deposits with terms of three years and five years were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for time deposits with lump-sum deposit and withdrawal in installments, lump-sum deposit and lump-sum withdrawal in installments, and principal deposit with interest withdrawal were all lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%.

② On May 20, the Agricultural Bank of China reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%.

③ On May 20, the Industrial and Commercial Bank of China reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%.

④ On May 20, the China Construction Bank reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%.

⑤ On May 20, the Postal Savings Bank of China reduced the RMB deposit interest rates for multiple terms, with the demand deposit rate lowered to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, three-year, and five-year terms were all lowered to 0.65%, 0.86%, 0.98%, 1.25%, and 1.30%, respectively.

⑥ The Bank of Communications reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%.

⭕[Thailand: Removal of Incentives for the Steel Manufacturing Industry]Nari Tesdirasudi, Secretary General of the Thailand Board of Investment (BOI), stated to the media on the 19th that the BOI has introduced four new measures aimed at enhancing the competitiveness of small and medium-sized enterprises (SMEs) in Thailand, mitigating risks arising from US trade policies, and integrating Thai enterprises into the global supply chain.

⭕[Commencement of the 3-Million-Ton Short-Process Project by Yonggang Steel in Kazakhstan]Recently, the groundbreaking ceremony for the 3-million-ton short-process integrated steel mill project of the Yonggang Steel Group in Kazakhstan, which was overall designed by Shougang Engineering, was held in the Zhebekjoly Special Economic Zone, Jambyl Province, Kazakhstan.

⭕[Australia Initiates Second Sunset Review Anti-Dumping Investigation on Wire Rods from China]On May 19, the Australian Anti-Dumping Commission issued Notice No. 2025/040, announcing the initiation of a second sunset review anti-dumping investigation on wire rods imported from China, in response to an application submitted by InfraBuild (Newcastle) Pty Ltd, an Australian domestic enterprise. The dumping investigation period for this case spans from April 1, 2024, to March 31, 2025, while the injury investigation period commenced on April 1, 2020.

⭕[South Africa Issues Final Safeguard Measure Determination on Imported Flat-Rolled Products]

On May 16, 2025, the WTO issued a notification stating that the South African International Trade Administration Commission (ITAC), acting on behalf of the Southern African Customs Union (SACU), which includes Namibia, South Africa, Lesotho, Swaziland, and Botswana, has issued a final determination in the safeguard measure case concerning certain flat-rolled products of iron, non-alloy steel, or other alloy steel. The decision is to impose safeguard duties on the products in question at rates of 13% in the first year, 11% in the second year, and 9% in the third year, for a duration of three years. The South African tariff codes for the products in question are 7208.10, 7208.25, 7208.26, 7208.27, 7208.36, 7208.37, 7208.38, 7208.39, 7208.4, 7208.51, 7208.52, 7208.53, 7208.54, 7208.9, 7211.14, 7225.3, 7225.4, 7225.99, and 7226.99. The safeguard measures in this case do not apply to grain-oriented electrical silicon steel.