[SMM Steel Market Morning Briefing] General Administration of Customs: In May, China's exports reached 2.28 trillion yuan, up 6.3% YoY

★Macro★

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[General Administration of Customs: China's exports reached 2.28 trillion yuan in May, up 6.3% YoY]

The General Administration of Customs announced on the 9th that in the first five months of this year, the total value of China's import and export of goods trade was 17.94 trillion yuan, up 2.5% YoY, continuing the growth trend. In May, imports and exports reached 3.81 trillion yuan, up 2.7%. In May alone, China's exports reached 2.28 trillion yuan, up 6.3%. Among them, exports to ASEAN, the EU, Africa, and the five Central Asian countries increased by 16.9%, 13.7%, 35.3%, and 8.8%, respectively.

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[General Administration of Customs: China's EV exports increased by 19% and industrial robot exports increased by 55.4% in the first five months of this year]

The General Administration of Customs announced on the 9th that in the first five months of this year, China's exports of equipment manufacturing products reached 6.22 trillion yuan, up 9.2%, accounting for 58.3% of China's total export value. Among them, exports of EVs increased by 19%, construction machinery by 10.7%, ships by 18.9%, and industrial robots by 55.4%. In the first five months, China's equipment manufacturing products contributed 73% to the overall export growth, with the contribution rate reaching as high as 76.9% in May, providing strong support for the stable growth of foreign trade.

03

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[National Bureau of Statistics (NBS): PPI fell 0.4% MoM and 3.3% YoY in May]

According to NBS data, in May, the Producer Price Index (PPI) for industrial products fell 0.4% MoM, with the same decline as the previous month, and fell 3.3% YoY, with the decline expanding by 0.6 percentage points from the previous month. The main reasons for the MoM decline in PPI this month are as follows: First, international input factors affected the price decline in related domestic industries. The decline in international crude oil prices affected the price decline in domestic petroleum-related industries, with the prices of the oil and natural gas extraction industry falling by 5.6%, refined petroleum product manufacturing falling by 3.5%, and the chemical raw materials and chemical products manufacturing industry falling by 1.2%. These three industries collectively affected the MoM decline in PPI by approximately 0.23 percentage points, accounting for more than half of the total decline. Second, there was a phased decline in the prices of some domestic energy and raw materials. Coal demand was in the off-season, with sufficient coal reserves in power plants and ports. Coupled with the low cost and strong substitution effect of new energy power generation, the prices of the coal mining and washing industry fell by 3.0%, and coal processing prices fell by 1.1%. Increased high-temperature and rainy weather in south China affected the construction of some real estate and infrastructure projects. Coupled with the sufficient supply of building materials such as steel and cement, the prices of the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry both fell by 1.0%. These four industries collectively affected the MoM decline in PPI by approximately 0.18 percentage points.

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[National Bureau of Statistics (NBS): National Consumer Price Index (CPI) Down 0.1% YoY in May]

According to NBS data, in May, the national CPI decreased by 0.1% YoY. Specifically, it remained flat in urban areas and decreased by 0.4% in rural areas. Food prices decreased by 0.4%, while non-food prices remained flat. Prices of consumer goods decreased by 0.5%, while service prices increased by 0.5%. From January to May, the national CPI decreased by 0.1% compared to the same period last year. In May, the national CPI decreased by 0.2% MoM.

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[Announcement: Ministry of Commerce to Hold Second Regular Press Conference in June on June 12]

The Ministry of Commerce will hold a press conference at 3 p.m. on Thursday, June 12, 2025. The spokesperson will introduce the latest developments in key business areas and answer questions from journalists.

★Industries and Downstream Sectors★

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[China Passenger Car Association (CPCA): Domestic Retail Sales of Passenger NEVs Reach 1.021 Million Units in May, Up 28.2% YoY]

According to CPCA data, domestic retail sales of passenger NEVs reached 1.021 million units in May, up 28.2% YoY and 12.1% MoM. From January to May, domestic retail sales of passenger NEVs reached 4.351 million units, up 34.1% YoY.

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[CPCA: Retail Sales of Passenger Cars in China Reach 1.96 Million Units in May, Up 13.9% YoY]

According to CPCA data, retail sales of passenger cars in China reached 1.96 million units in May, up 13.9% YoY and 10% MoM. From January to May, cumulative retail sales of passenger cars in China reached 8.934 million units, up 9.5% YoY.

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[Shenzhen's Pre-owned Home Trading Volume Up 44% YoY in First Five Months]

Preliminary statistics from China Index Academy show that from January to May, the sales area of new homes in Shenzhen increased by 41% YoY, and the trading volume of pre-owned homes increased by 44% YoY.

04

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[Shenzhen Plans to Introduce New Policy to Support Housing Fund Withdrawals for Down Payments]

The "Implementation Plan for Special Actions to Boost Consumption in Shenzhen" was officially released recently, introducing 39 measures to boost consumption. In terms of renting and purchasing homes, the plan proposes expanding the scope of housing fund usage. Eligible individuals purchasing homes within the city can apply to withdraw their housing fund once for down payments. A reporter learned from the Shenzhen Municipal Housing and Construction Bureau on June 9 that the detailed implementation rules for using the housing fund for down payments are currently being drafted. In addition, the Plan also proposes that employees who contribute to the housing provident fund and their family members with no housing within the city limits can increase the monthly withdrawable amount for rent payment from 65% to 80% of the amount payable in the month of application, provided that they withdraw the housing provident fund for this purpose within two years starting from November 1, 2025. Meanwhile, policies to support housing for young talents will be introduced to consolidate and improve the multi-tiered rental housing supply structure of "one bed, one room, one apartment," and launch more high-quality, small-sized affordable rental housing units.

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[Angang Bayuquan Branch Successfully Develops New Generation of High-Performance Taphole Drill]

On a certain day, the Steelmaking Department of Angang Steel's Bayuquan Branch, in close collaboration with the producer, successfully developed a new generation of high-performance taphole drills. These drills significantly enhance high-temperature resistance and wear resistance, substantially reduce taphole drilling time, extend the service life of the drills, and improve converter operation efficiency, with an expected annual benefit exceeding 2 million yuan. As a key component in steelmaking production, converter taphole drills have long been plagued by issues such as high-temperature erosion and wear, leading to frequent replacements, high maintenance costs, and low drilling efficiency. In response to this problem, the department organized a technical team to conduct long-term tracking on the front lines, identifying the root causes. Through close cooperation with the producer and by optimizing materials and structure, they significantly reduced thermal stress damage, extended the drill's service life by three times compared to the original model, significantly enhanced high-temperature and wear resistance, improved slag discharge efficiency by over 60%, and reduced single drilling time by 75%, providing strong support for the fast-paced production of converters.

★Other Hot Topics★

⭕[Several Incremental Policies to Stabilize the Economy Expected to Be Introduced Successively in the Near Future]

Several incremental policies to stabilize the economy are expected to be introduced successively in the near future, covering areas such as the "program of large-scale equipment upgrades and consumer goods trade-ins," the "implementation of major national strategies and the development of security capabilities in key areas," and stabilizing foreign trade. Experts state that the early introduction of incremental policies will help stabilize expectations and achieve early results. Since the beginning of this year, the "program of large-scale equipment upgrades and consumer goods trade-ins" has been intensified and expanded, becoming an important engine for expanding domestic demand. The latest data shows that subsidies for purchasing new digital products such as mobile phones have driven sales exceeding 140 billion yuan, with retail sales of home appliances maintaining double-digit growth for eight consecutive months. In the first four months of this year, investment in the purchase of equipment and tools increased by 18.2% YoY.

⭕[Beijing: Supporting Furniture and Home Furnishing Enterprises in Transitioning to Develop Whole-House Customization Businesses]

The Beijing Municipal Commission of Commerce and three other departments issued the "Special Action Plan for Expanding Fashion Consumption in Beijing." It proposes to tap into the advantages of fashionable intelligent manufacturing. By focusing on areas such as digital and intelligent electronics and smart mobility, new technologies will be applied to accelerate new product R&D and product iteration, enhance product aesthetics and functional integration, and optimize human-machine interaction experiences. Support the transformation of furniture and home furnishing enterprises, develop smart home products, and expand the business of customized full-house solutions. In conjunction with the construction of the "Future Beauty City", encourage the expansion of medical aesthetics projects and the R&D innovation of medical aesthetics products, and launch a batch of personalized service and immersive consumption scenarios in the beauty and health industry. Encourage enterprises to actively apply new technologies such as virtual reality, artificial intelligence, and the metaverse, and innovate to launch fashionable consumption scenarios such as VR shopping, AR try-ons, virtual models, and metaverse experiences. Promote the integration of technology into tourism services, commercial services, and other scenarios, and encourage cultural and tourism venues, commercial entities, etc., to enhance service levels by leveraging artificial intelligence technology.