[SMM Steel Market Morning News] Preview: The State Council Information Office will hold a press conference on June 10 regarding policies to further safeguard and improve people's livelihoods

★Macro★

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[Preview: The State Council Information Office will hold a press conference on June 10 regarding policies to further safeguard and improve people's livelihoods]

The State Council Information Office will hold a press conference at 10 a.m. on June 10, 2025 (Tuesday). Deputy Secretary General Xiao Weiming of the National Development and Reform Commission (NDRC) and relevant officials from the Ministry of Education, the Ministry of Civil Affairs, the Ministry of Finance, the Ministry of Human Resources and Social Security, and the National Health Commission will introduce policies to further safeguard and improve people's livelihoods and answer questions from journalists.

02

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[SSE: Will encourage publicly listed firms to increase dividend payouts and effectively utilize market value management tools such as share buybacks, M&A, and investor communication]

The Shanghai Stock Exchange (SSE) held a symposium on high dividends, significant returns, and enhancing the value of publicly listed firms. Relevant officials from the SSE stated that China's capital market system, structure, and institutional mechanisms are continuously improving, and the foundation and conditions for high-quality development are being consolidated. They emphasized the need to maintain confidence in Chinese assets. In the future, the SSE will encourage publicly listed firms to further increase dividend payouts, raise the frequency of dividend distributions, and effectively utilize market value management tools such as share buybacks, M&A, and investor communication to continuously enhance the investment value of companies. On the product supply side, the SSE will continue to enrich the product system related to dividend indices to meet diverse investment needs in the market and promote positive interactions between long-term capital, patient capital, and high-quality equity assets.

03

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[PBOC's open market operations net withdrew 156.1 billion yuan today]

The People's Bank of China (PBOC) conducted 135 billion yuan in 7-day reverse repo operations today. As 291.1 billion yuan in 7-day reverse repos matured today, the net withdrawal for the day was 156.1 billion yuan. This week, the PBOC conducted 930.9 billion yuan in reverse repo operations. With 1,602.6 billion yuan in reverse repos maturing this week, the net withdrawal for the week was 671.7 billion yuan. Additionally, the PBOC conducted 1,000 billion yuan in outright reverse repo operations today.

04

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[US President Trump and South Korean President Lee Jae-myung hold phone call; Trump invites Lee to visit the US]

According to a statement from the South Korean Presidential Office on the evening of the 6th local time, newly elected President Lee Jae-myung had a phone call with US President Trump at 10 p.m. that day, lasting approximately 20 minutes. During the call, Trump first congratulated Lee on his victory in the 21st presidential election. Lee expressed gratitude and emphasized the undeniable importance of the South Korea-US alliance. The two presidents agreed to closely cooperate for the development of the alliance in the future. Regarding the tariff agreement between South Korea and the US, both sides agreed to hold pragmatic negotiations to achieve substantive results. During the call, Trump also invited Lee Jae-myung to visit the US. In response, Lee Jae-myung stated that as special allies, South Korea and the US hope to meet frequently with Trump for consultations. The two presidents also decided that both sides should take the opportunity of multilateral meetings or mutual visits as soon as possible to conduct more in-depth consultations on the development of the South Korea-US alliance.

★ Industry and Downstream ★

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[Cui Dongshu: Cumulative Used Car Transactions in China Reached 6.31 Million Units from January to April, Up 0.5% YoY]

Cui Dongshu, Secretary General of the China Passenger Car Association, announced on June 7 that in April 2025, the used car market in China recorded 1.7 million transactions, a 3% decrease MoM and a 1.3% increase YoY, with a transaction value of 110.2 billion yuan, a 0.8% decrease YoY. From January to April 2025, cumulative used car transactions reached 6.31 million units, up 0.5% YoY, with a transaction value of 413.4 billion yuan, a 2.7% decrease YoY. The penetration rate of new energy vehicles continued to rise in 2025, reaching 9.1% in April.

02

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[New Policy on Beijing Housing Provident Fund: Lifting Restrictions on Mortgage Status for Collateral Appraisal]

The Beijing Housing Provident Fund Management Center issued the "Notice on Further Improving and Enhancing the Quality and Efficiency of Personal Housing Loan Services for Housing Provident Fund," which mentions lifting restrictions on mortgage status for collateral appraisal. It further establishes an efficient and convenient process for purchasing homes with used car loans. If a property has a mortgage, appraisal work can proceed normally, and the "Confirmation Letter for Appraisal and Verification of Personal Housing Loans for Housing Provident Fund from the Beijing Housing Provident Fund Management Center" can be issued.

03

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[Dalian City: 27 Specific Measures to Boost Consumption]

To better leverage the fundamental role of consumption in economic development, the General Office of the Dalian Municipal People's Government recently issued a notice on the "Several Measures to Vigorously Boost Consumption in Dalian City." The measures are divided into seven aspects: main objectives, increasing residents' income and reducing burdens, improving the quality and affordability of service consumption, enhancing consumption quality, upgrading and renewing major consumption, optimizing the consumption environment, and safeguarding measures, totaling 27 specific measures. The main objectives are to achieve a growth rate in total retail sales of social consumer goods in Dalian City higher than the national average in 2025, to hold over 1,200 various characteristic consumption-boosting activities, to organize more than 500 sports events at all levels, to host over 400 major exhibition and convention events, to hold over 20 concerts and performances throughout the year, to upgrade 1-2 core business districts and 10 nighttime consumption clusters, to evaluate and recognize over 20 "Dalian Excellent Products," to achieve a growth rate of over 10% in the number of tourists and tourism revenue throughout the year, and to drive sales growth of over 4 billion yuan in the automotive, home appliance, and home improvement sectors through trade-in policies.

04

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[Jiangsu: Increasing the Housing Provident Fund Loan Quota]

The People's Government of Jiangsu Province recently issued the "Notice on Printing and Distributing Several Measures for Implementing Special Actions to Boost Consumption in Jiangsu Province," which mentions that 80 compulsory education schools will be newly built, renovated, or expanded in 2025; localities with conditions are encouraged to trial the setting of the three working days before "Labour Day holiday" and the three working days before "National Day" as spring and autumn holidays for primary and secondary schools, respectively; support will be increased for withdrawing housing provident funds for renting, as well as for constructing, renovating, or overhauling self-occupied housing, and localities with conditions are encouraged to allow parents and children of home buyers to withdraw housing provident funds according to regulations to pay for the down payment on home purchases, increasing the housing provident fund loan quota and optimizing loan conditions; employers and employees are encouraged to determine flexible leave and work arrangements through collective bargaining. Efforts will be made to advance the implementation of parental leave systems and encourage couples to share parental leave, among other measures.

05

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[BYD's Wang Chuanfu: The Company's Overseas Sales Data This Year Will Be Very Good, and Future Overseas Sales Are Expected to Increase Month by Month]

Wang Chuanfu, Chairman of BYD, stated at the company's 2024 Annual General Meeting on the morning of June 6 that the company's overseas sales data this year will be very good, and it is believed that future overseas sales will increase month by month. Currently, there are signs of month-by-month sales increases in multiple overseas markets. "Overseas market prices are relatively stable, which greatly contributes to the company's profitability," Wang said, adding that overseas markets, like high-end markets, are an important strategy for the company.

06

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[Production and Operation of China's Small and Medium-Sized Enterprises Rebound and Improve, with Domestic Tunnel Boring Machine Orders Overseas Scheduled Until 2027]

Since the beginning of this year, the production and sales of China's small and medium-sized enterprises (SMEs) have continued to improve, with innovative vitality burgeoning and the momentum of rebound and improvement further consolidated, providing strong support for the steady growth of the industrial economy. The latest statistics show that from January to April, the added value of industrial SMEs above designated size increased by 8.2% YoY, with operating revenue reaching 25.8 trillion yuan. Among them, the equipment manufacturing and raw material manufacturing industries saw significant demand growth driven by technological upgrades, with 28 out of 31 major manufacturing categories achieving growth. Technological innovation has also simultaneously boosted the continuous improvement of the foreign trade market. In April, the export index of SMEs was 50.4%, remaining in the expansion territory for 13 consecutive months, indicating that the overall export momentum remains strong. A tunnel boring machine enterprise in Jiangsu has innovatively launched a small-diameter blind shaft construction model, increasing excavation efficiency tenfold. Currently, overseas orders from Europe, South America, and other regions are scheduled until 2027.

★Other Hot Topics★

⭕[Global Manufacturing PMI Below 50% for Three Consecutive Months, Global Economy Hovers at a Low Level]

The China Federation of Logistics and Purchasing announced today (the 6th) the global manufacturing PMI for May. The global manufacturing PMI in May was 49.2%, up 0.1 percentage point MoM, and remained below 50% for three consecutive months. By region, the manufacturing PMI in the Americas in May was 48.4%, unchanged from the previous month and below 49% for three consecutive months, indicating that the manufacturing sector in the Americas continued to operate in contraction territory. Data from major countries showed that the US manufacturing PMI in May was 48.5%, down 0.2 percentage point MoM, and declined MoM for four consecutive months. The data changes suggest that the US manufacturing sector continues to weaken under the influence of tariff hikes imposed by the US.

⭕[China National Coal Association Holds Meeting: Promoting Efficient Allocation of Resources and Elements to Achieve Dynamic Balance in Coal Supply and Demand]

The China National Coal Association and the China Coal Transportation and Distribution Association are scheduled to hold the "2025 Summer National Coal Trading Conference" from July 10 to 11. The theme of this conference is "Promoting Efficient Allocation of Resources and Elements to Achieve Dynamic Balance in Coal Supply and Demand." The conference aims to earnestly implement the decisions and deployments of the CPC Central Committee and the State Council, continuously enhance the viability, competitiveness, development capacity, and sustainability of the coal industry chain and supply chain, and maintain stable and healthy economic development and overall social stability.

⭕[National Subsidies for Home Appliance Trade-ins Suspended in Multiple Regions? Some Regions Claim Early Subsidy Funds Have Been Exhausted, Experts Say Second and Third Batches Are Being Allocated]

The most important sales promotion event of the first half of the year, "618," is currently in full swing, but news has emerged from some regions that national subsidies for home appliance trade-ins have been suspended or adjusted. Wu Xianjian, Executive Deputy Secretary General of the China Household Electrical Appliances Commerce Association, told reporters, "Recently, there have indeed been cases where national subsidies for home appliances have been suspended or adjusted in some regions, mainly due to a gap in the continuity of national subsidy funds. Some regions have basically allocated the second batch of funds, while others are still in the process of allocating the second batch. The planning for the third batch of funds is also underway. This is currently a temporary situation. There is some anxiety in the market, and some merchants are engaging in speculation. We believe that the situation will improve soon."

⭕[Wang Xia, President of the Automotive Industry Committee of CCPIT: The Wave of Mergers and Acquisitions in the Automotive Industry Is Inevitable]

At the "2025 China Auto Chongqing Forum" held in Chongqing, Wang Xia, President of the Automotive Industry Committee of the China Council for the Promotion of International Trade and President of the Automotive Industry Chamber of Commerce of the China Chamber of International Commerce, stated that compared with price wars, the technological competition in China's EV industry appears more positive. Following competitions in driving range, charging speed, and other performance aspects, as well as functional competitions for "refrigerators, TVs, and large sofas," the advent of solid-state batteries, large models and AI integration in vehicles, and intelligent driving democratization have followed in quick succession. However, accidents such as battery fires, runaway autonomous driving, and hidden door handle traps serve as constant reminders that in the race for new technologies, safety must always be the bottom line," said Wang Xia. He believes that mergers and acquisitions are an inevitable outcome of "cut-throat competition" and also an important means to address it. In line with the laws of market economy development, mergers and reorganizations are an inevitable phenomenon as industries approach maturity. Currently, the Chinese automotive industry is exhibiting signs of stagnating market capacity, declining profits, and further increased market concentration, which are typical characteristics of an industry entering its mature stage. Coupled with China's rapid economic development mechanism and the investments made by various regions to seize the commanding heights of the industry, a wave of mergers and reorganizations in the automotive sector is inevitable.

⭕[Brazil Initiates Anti-Dumping Investigation into HRC Imports from China]

The Ministry of Commerce announced that the Secretariat for Foreign Trade of Brazil issued Notice No. 39 of 2025 in the Official Gazette on June 3, deciding to initiate an anti-dumping investigation into imports of hot-rolled coil (HRC) (Portuguese: Laminados a quente) from China, in response to applications from three companies: ArcelorMittal Brasil S.A., Gerdau Açominas S.A., and Usinas Siderúrgicas de Minas Gerais S.A. The NCM codes of the products involved are 72081000, 72082500, 72082610, 72082690, 72082710, 72082790, 72083610, 72083690, 72083700, 72083810, 72083890, 72083910, 72083990, 72084000, 72085300, 72085400, 72089000, 72111300, 72111400, 72111900, 72119010, 72119090, 72253000, 72254090, and 72269100. The dumping investigation period for this case is from July 2023 to June 2024, and the injury analysis period is from July 2019 to June 2024.

⭕[Production Safety Accident at a Qinyuan, Shanxi Enterprise Results in One Fatality; Production Halted for Rectification Due to Concealment]

The Emergency Management Bureau of Qinyuan County, Changzhi City, Shanxi Province, issued a notice on June 7, addressing the online reports of a suspected safety accident at Shendayuan Coal Industry Co., Ltd., a subsidiary of Kangwei Group. The local government organized relevant departments to form a verification team to conduct an investigation. Preliminary verification revealed that on April 29, 2025, a production safety accident occurred at Shanxi Qinyuan Kangwei Shendayuan Coal Industry Co., Ltd., resulting in one fatality, and the accident was concealed. The Qinyuan County Emergency Management Bureau has reported the incident to higher authorities in accordance with relevant regulations. On June 4, the enterprise halted production for rectification, and the public security organs have taken criminal coercive measures against the relevant suspects in accordance with the law. Currently, the accident is under further investigation.