[SMM Steel Market Morning News] Ministry of Foreign Affairs: We hope the US side will work with the Chinese side to implement the important consensus reached during the phone call between the heads of state of the two countries

★Macro★

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[Ministry of Foreign Affairs: Hopes the US will work with China to implement the important consensus reached during the phone call between the heads of state of the two countries]

According to CCTV News, on June 12, Lin Jian, spokesperson for the Ministry of Foreign Affairs, hosted a regular press conference. A reporter asked about the meeting of the China-US economic and trade consultation mechanism.

Lin Jian stated that he would like to emphasize that this meeting was held under the strategic guidance of the heads of state of the two countries. The two sides reached a consensus in principle on measures to implement the important consensus reached during the phone call between the heads of state of the two countries on June 5 and to consolidate the outcomes of the Geneva economic and trade talks, and made new progress in addressing each other's economic and trade concerns.

China always honors its words with actions. Since a consensus has been reached, both sides should abide by it. We hope that the US will work with China to implement the important consensus reached during the phone call between the heads of state of the two countries, give full play to the role of the China-US economic and trade consultation mechanism, and enhance consensus, reduce misunderstandings, and strengthen cooperation through communication and dialogue.

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[Spokesperson for the Ministry of Commerce: China has approved a certain number of compliant applications for rare earth-related export licenses in accordance with the law]

He Yadong, spokesperson for the Ministry of Commerce, stated that as a responsible major country, China fully considers the reasonable needs and concerns of various countries in the civilian sector, reviews applications for rare earth-related export licenses in accordance with laws and regulations, has approved a certain number of compliant applications in accordance with the law, and will continue to strengthen the approval work for compliant applications.

★Industries and Downstream Sectors★

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[SMM Inventory Data]

This week, the total inventory of rebar was 5.2603 million mt, a decrease of 118,300 mt WoW, down 2.20% MoM, and down 27.31% YoY on the lunar calendar.

This week, the total inventory of wire rod was 1.0994 million mt, a decrease of 30,400 mt WoW, down 2.70% MoM, and down 38.93% YoY on the lunar calendar.

This week, the total inventory of HRC was 2.9681 million mt, a decrease of 6,900 mt WoW, down 0.23% MoM, down 18.67% YoY, and down 20.04% YoY on the lunar calendar.

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[Ministry of Industry and Information Technology: Supports automakers' commitment to "60-day payment terms" to promote the healthy development of the industry]

Recently, 17 key automotive enterprises, including FAW, Dongfeng, GAC, and Seres, have successively issued statements committing to "payment terms not exceeding 60 days." Today (the 12th), relevant officials from the Ministry of Industry and Information Technology stated that the automakers' commitment is of great significance to promoting the healthy and sustainable development of the automotive industry. Relevant officials from the Ministry of Industry and Information Technology stated that automotive enterprises' proactive commitment to "payment terms not exceeding 60 days" reflects their positive response to the national call, their fulfillment of social responsibilities and corporate commitments, and is of great significance to building a collaborative and win-win development ecosystem between "complete vehicles and parts."The relevant person in charge of the Ministry of Industry and Information Technology also stated that currently, China's NEV industry is at a critical juncture for high-quality development. It is hoped that enterprises will lead by example and strengthen industry self-regulation. It is also hoped that all sectors of society will care about and support the high-quality development of the NEV industry, jointly resist online chaos such as "internet water armies" and "black public relations", and create a positive, civilized, and orderly development environment.

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[Implementation Measures for the Management of Innovative Applications of Intelligent Connected Vehicles in Hangzhou Issued, Increasing Financial Support for Industrial Development]

The General Office of the Hangzhou Municipal People's Government issued the Implementation Measures for the Management of Innovative Applications of Intelligent Connected Vehicles in Hangzhou. It mentions that the municipal government will strengthen leadership over the management of intelligent connected vehicles, establish a joint supervision and management mechanism in accordance with the law, formulate and implement relevant industrial policies and work measures, establish a multi-level industrial technology innovation system, and promote the development of the entire industry chain of intelligent connected NEVs through testing and applications. Governments at the district, county (city) levels should strengthen leadership, increase financial support for industrial development, and be responsible for the daily supervision of vehicle road traffic, necessary intelligent roadside infrastructure construction such as networking transformation and data governance within their respective administrative regions.

★Other Hot Topics★

⭕[GF Securities: Supply Tends to Decline, Coal Prices May Have Approached the Year's Low]

GF Securities' research report states that although coal prices this year have been affected by both demand and supply, considering the upcoming peak summer consumption season and the potential pullback in supply, especially the reduction in coal from Xinjiang and Indonesia, it is expected that coal prices may have approached the bottom of the year.

⭕[CICC: The US Fed Will Hold Its June Interest Rate-Setting Meeting Next Week, and Powell's Attitude at This Meeting May Be Hawkish]

CICC's research report points out that next week, the US Fed will hold its June interest rate-setting meeting. We believe that the June FOMC may slightly raise its inflation forecast, but due to the resilience of non-farm payrolls and the cooling of tariffs, the Fed's judgment on growth may be more optimistic than in March. As a result, Powell's attitude at this meeting may be hawkish, which may disappoint investors expecting an interest rate cut from the US Fed.

⭕[China Meteorological Administration Initiates a Level III Emergency Response for Major Meteorological Disasters (Typhoon)]

According to the National Meteorological Center, this year's first typhoon, "Wutip", is expected to move northwestward and then turn northward at a speed of about 10 kilometers per hour, possibly making landfall along the coast from Lingshui to Ledong in Hainan in the early morning to mid-morning of the 13th, and then making a second landfall along the coast from western Guangdong to Guangxi during the day on the 14th. Under its influence, most parts of South China will experience heavy to torrential rain, with some areas experiencing extremely heavy rain or record-breaking rainfall from June 12 to 14. The National Meteorological Center continued to issue a yellow typhoon warning at 6 a.m. on June 12. After comprehensive analysis and emergency consultations, the China Meteorological Administration has upgraded the Level IV emergency response for major meteorological disasters (typhoon) to Level III.