[SMM Steel Market Morning Briefing] White House Says Trump Signed Order to Raise Steel and Aluminum Tariffs, Effective from Early Morning of June 4

★Macro★

01 ★★★ [Four Ministries Launch Pilot Work on Integrated Development of Human Resources Services and Manufacturing]

The Ministry of Human Resources and Social Security, the Ministry of Industry and Information Technology, the Ministry of Commerce, and the All-China Federation of Industry and Commerce issued a notice to launch pilot work on the integrated development of human resources services and manufacturing. The initiative aims to actively explore institutional, policy, platform, and model innovations, accelerate the promotion of high-quality and full employment, and support the construction of a modern industrial system. The pilot work will be carried out in around 30 eligible cities on a trial basis. Through efforts over approximately three years, it aims to cultivate a group of professional human resources service institutions catering to the manufacturing sector, create a number of integrated development platforms and consortia, develop innovative human resources service technologies, products, and models that support the high-quality development of manufacturing, and formulate a set of policy systems and effective models that promote deep synergy between human resources and the real economy, as well as technological innovation.

02 ★★★[White House Says Trump Signed Order to Raise Steel and Aluminum Tariffs, Effective from Early Morning of June 4]

The US White House issued a statement saying that President Trump had signed an order to raise tariffs on imported steel, aluminum, and their derivatives from 25% to 50%, effective from 00:01 Eastern Time on the 4th. The statement indicated that tariffs on steel and aluminum imported from the UK would remain at 25%.

03 ★★★[Multiple Regions Join the 35°C High-Temperature Zone]

Starting today, high temperatures will significantly increase in Xinjiang, North China, Huanghuai, and other regions, with Henan taking the lead in experiencing 35°C high temperatures. From tomorrow, parts of Beijing, Tianjin, Hebei, Henan, and Shandong will also experience high temperatures, with the maximum temperature in Shijiazhuang possibly reaching 38°C. The maximum temperature in Turpan, Xinjiang, will exceed 40°C over the next five days. It is advised to avoid outdoor activities during the peak high-temperature hours in the afternoon. In south China, Changsha, Hunan, may experience its first high-temperature day tomorrow, and Hangzhou, Zhejiang, may experience its first high-temperature day the day after tomorrow. Unlike the dry heat in the north, the south will feel more muggy, so it is essential to take extra precautions to avoid heatstroke.

★Industries and Downstream Sectors★

01 ★★★ [Preliminary Estimate: May's Wholesale Sales of Passenger NEVs by Producers Nationwide Reached 1.24 Million Units, Up 38% YoY]

Based on comprehensive preliminary monthly passenger vehicle sales data, it is estimated that nationwide wholesale sales of passenger NEVs by producers reached 1.24 million units in May, up 38% YoY and 9% MoM. The cumulative wholesale sales for the period from January to May this year are estimated to reach 5.22 million units, up 41% YoY.

02 ★★★ [Nantong: Maximum Housing Provident Fund Loan Amount Adjusted to 1.4 Million Yuan per Household]

The Nantong Housing Provident Fund Management Center issued a "Notice on Optimizing the Use Policy of Housing Provident Funds."In terms of increasing the loan limit for housing provident funds, the maximum individual housing provident fund loan limit has been adjusted from 600,000 yuan/person to 700,000 yuan/person, and the maximum household housing provident fund loan limit has been adjusted from 1.2 million yuan/household to 1.4 million yuan/household. New urban residents and flexible workers who have regularly contributed to the housing provident fund for six months and purchased a home are eligible for a housing provident fund loan amount of up to 25 times the balance in their housing provident fund account, with the maximum loan limit not exceeding 700,000 yuan/person or 1.4 million yuan/household. In terms of supporting the purchase of improved housing through trade-in policies, those who purchase improved housing through trade-in policies are eligible for an increase of 200,000 yuan/household in their housing provident fund loan limit, based on the existing loanable amount.

03★★★ [Ministry of Housing and Urban-Rural Development: 5,679 Old Urban Residential Communities Nationwide Underwent Renovation from January to April 2025]

According to the website of the Ministry of Housing and Urban-Rural Development, in 2025, the country plans to commence renovation work on 25,000 old urban residential communities. Based on data reported by various regions, from January to April, 5,679 old urban residential communities nationwide underwent renovation. Regionally, the operating rates in six regions, namely Hebei, Chongqing, Liaoning, Shanghai, Zhejiang, and Hubei, exceeded 50%.

04★★★ [Daily Average Pig Iron Production Was 2.4163 Million mt, Down 5,000 mt MoM]

According to an SMM survey, on June 4, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 88.26%, down 0.09 percentage points MoM. The capacity utilisation rate of blast furnaces was 89.56%, down 0.18 percentage points MoM. The daily average pig iron production of the sampled steel mills was 2.4163 million mt, down 5,000 mt MoM.

★Other Hot Topics★

⭕In accordance with the requirements of the Jinan Coking Capacity Integration and Transfer Work Plan, Shandong Taishan Coking Co., Ltd. transferred 270,000 mt of compliant coking capacity indicators to Shandong Fulun Iron and Steel Co., Ltd.

⭕The Shandong Provincial Department of Industry and Information Technology announced the transfer of 70,000 mt of compliant coking capacity indicators from Heze Fuhai Energy Co., Ltd. to Shiheng Special Steel Group Co., Ltd.

⭕On June 4, AESC announced the official commencement of operations at its battery gigafactory in Douai, France. It is reported that the initial 10 GWh capacity of the factory will supply power batteries to leading international automakers such as Renault, meeting the supporting demand for 200,000 EVs.

⭕Last week (from May 26 to June 1), the total transaction (contract signing) area of newly-built commercial housing in 10 key cities was 1.7768 million m², down 8.7% MoM and 27.1% YoY.

⭕The evaluation results for the 2025 Central Government Financial Support for Urban Renewal Initiatives have been announced. The 20 cities proposed for support (sorted by administrative division) are: Beijing, Tianjin, Tangshan, Baotou, Dalian, Harbin, Suzhou, Wenzhou, Wuhu, Xiamen, Jinan, Zhengzhou, Yichang, Changsha, Guangzhou, Haikou, Yibin, Lanzhou, Xining, and Urumqi.

⭕ The Baltic Dry Index (BDI) rose by 8 points, or 0.6%, to 1,430 points, marking its fifth consecutive trading day of gains and reaching its highest level since April 4.

⭕ Recently, the UK-based KHL Group released the 2025 Yellow Table ranking of the world's top 50 construction machinery manufacturers. Thirteen Chinese companies made the list, collectively accounting for 18.7% of the global market share, up 1.5 percentage points YoY.