[SMM Steel Market Morning News] Economic operations remained generally stable in May, with some indicators continuing to improve

★Macro★

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NBS: Industrial Added Value Above Designated Size Grew 5.8% YoY in May

According to data from the National Bureau of Statistics (NBS), in May, the industrial added value above designated size actually grew by 5.8% YoY. On a MoM basis, the industrial added value above designated size increased by 0.61% compared to the previous month. From January to May, the industrial added value above designated size grew by 6.3% YoY.

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NBS: Youth Unemployment Rate Declined for Three Consecutive Months, Employment Situation Remained Stable

Fu Linghui, spokesperson for the NBS and director of the Department of Comprehensive Statistics of National Economy, stated at a press conference held by the State Council Information Office that in May, the surveyed urban unemployment rate nationwide was 5.0%, a decrease of 0.1 percentage point from the previous month. The unemployment rate among the main employment group remained stable, and the youth unemployment rate declined for three consecutive months, indicating a continued stable employment situation.

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NBS: Economic Operation Remained Generally Stable in May, with Some Indicators Continuing to Improve

Fu Linghui, spokesperson for the NBS and director of the Department of Comprehensive Statistics of National Economy, stated at a press conference held by the State Council Information Office that in May, the economic operation remained generally stable, with some indicators continuing to improve. New growth drivers expanded, and the trend of high-quality development continued, demonstrating strong resilience and vitality in China's economy. In May, influenced by factors such as the trade-in policy for consumer goods, market sales growth accelerated. The total retail sales of social consumer goods grew by 6.4% YoY in May, with the growth rate accelerating by 1.3 percentage points compared to the previous month. From January to May, the service retail sales grew by 5.2%, accelerating by 0.1 percentage point compared to the period from January to April. The acceleration in consumption growth, especially the expansion of service consumption, also boosted related service industries. The production indices of the wholesale and retail industries, as well as the accommodation and catering industries, all accelerated compared to the previous month. Meanwhile, new growth drivers such as high-end manufacturing, the digital economy, and the new energy industry continued to expand, effectively promoting industrial transformation and ensuring stable economic operation.

★Industry and Downstream★

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[SMM Steel Shipping] China's Total Steel Exports Rose 19% WoW Last Week

During this week, the port departures of steel from China's main ports reached 3.244 million mt, up 19% WoW. Among them, Caofeidian Port had port departures of 180,000 mt; Tianjin Xingang Port had port departures of 935,200 mt, up 40% WoW; Bayuquan Port had port departures of 131,400 mt, down 4% WoW; and Fangchenggang Port had port departures of 149,100 mt, down 16% WoW.

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Daily Crude Steel Production of Key Steel Enterprises Rebounded in Early June

According to statistical data from the China Iron and Steel Association (CISA), in early June 2025, the daily average production of pig iron by key steel enterprises was 1.963 million mt, up 2.6% ten-day MoM and down 1.3% YoY; the daily average production of crude steel was 2.159 million mt, up 3.2% ten-day MoM and down 4.0% YoY; and the daily average production of steel was 2.037 million mt, down 6.4% ten-day MoM and down 3.9% YoY. In early June 2025, the steel inventory of key steel enterprises was 15.79 million mt, an increase of 490,000 mt ten-day MoM, up 3.2%; a decrease of 270,000 mt compared to the same period last month, down 1.7%; and a decrease of 300,000 mt compared to the same period last year, down 1.9%.

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YoY Decline in Sales Prices of Commercial Housing in Cities of All Tiers Continued to Narrow in May

In May 2025, among 70 large and medium-sized cities, the sales prices of commercial housing in cities of all tiers declined MoM, while the YoY decline continued to narrow.
In May, the selling prices of newly-built commercial residential properties in first-tier cities shifted from being flat MoM to a decline of 0.2%. Among them, Shanghai saw an increase of 0.7%, while Beijing, Guangzhou, and Shenzhen experienced declines of 0.4%, 0.8%, and 0.4%, respectively. In second-tier cities, the selling prices of newly-built commercial residential properties shifted from being flat MoM to a decline of 0.2%. In third-tier cities, the selling prices of newly-built commercial residential properties declined by 0.3% MoM, with the decline widening by 0.1 percentage points from the previous month. In May, the selling prices of second-hand residential properties in first-tier cities declined by 0.7% MoM, with the decline widening by 0.5 percentage points from the previous month. Among them, Beijing, Shanghai, Guangzhou, and Shenzhen experienced declines of 0.8%, 0.7%, 0.8%, and 0.5%, respectively. In second-tier and third-tier cities, the selling prices of second-hand residential properties both declined by 0.5% MoM, with the declines widening by 0.1 percentage points each.

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National Bureau of Statistics (NBS): National real estate development investment from January to May was 3,623.4 billion yuan, down 10.7% YoY

According to NBS data, from January to May, national real estate development investment was 3,623.4 billion yuan, down 10.7% YoY. Among this, residential investment was 2,773.1 billion yuan, down 10.0%. From January to May, the sales area of newly-built commercial residential properties was 353.15 million m², down 2.9% YoY, with the sales area of residential properties down 2.6%. The sales volume of newly-built commercial residential properties was 3,409.1 billion yuan, down 3.8% YoY, with the sales volume of residential properties down 2.8%.

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National Bureau of Statistics (NBS): National fixed asset investment increased by 3.7% from January to May

According to NBS data, from January to May 2025, national fixed asset investment (excluding rural households) was 19,194.7 billion yuan, up 3.7% YoY. Among this, private fixed asset investment remained flat YoY. On a MoM basis, fixed asset investment (excluding rural households) increased by 0.05% in May.

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National Bureau of Statistics (NBS): China's automobile production reached 2.642 million units in May

According to NBS data, by industry, in May, 35 out of 41 major industries maintained YoY growth in added value. Among them, the automobile manufacturing industry grew by 11.6%. By product, in May, 326 out of 623 industrial products above designated size saw YoY growth in production. Among them, automobile production was 2.642 million units, up 11.3%, including 1.245 million NEV units, up 31.7%.

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National Bureau of Statistics (NBS): Retail sales of home appliances and audio-visual equipment increased by 53% YoY in May

On the 16th, the NBS released data showing that in May, the trade-in policy for consumer goods continued to show effects, with retail sales of home appliances and audio-visual equipment, communication equipment, cultural and office supplies, and furniture by units above designated size increasing by 53.0%, 33.0%, 30.5%, and 25.6%, respectively.

★Other Hot Topics★

⭕[Ministry of Ecology and Environment, etc.: Announcement on Regulating the Import Management of Lithium-ion Batteries and Recycled Steel Raw Materials Released]The Ministry of Ecology and Environment and other departments issued an announcement on regulating the import management of recycled black mass raw materials for lithium-ion batteries and recycled steel raw materials. The announcement points out that in order to promote the recycling of renewable resources and regulate the import management of recycled black mass raw materials for lithium-ion batteries and recycled steel raw materials, the following matters are hereby announced. 1. Recycled black mass raw materials for lithium-ion batteries that meet the requirements are not classified as solid waste and can be freely imported. Recycled black mass raw materials must not be mixed with other types of recycled raw materials, and different types of recycled raw materials cannot be declared under the same customs declaration form during customs clearance. Imported recycled black mass raw materials cannot be in bulk, and different categories of recycled black mass raw materials should be placed separately. Recycled steel raw materials that meet the requirements are not classified as solid waste and can be freely imported. Recycled steel raw materials must not be mixed with other types of recycled raw materials, and different types of recycled raw materials cannot be declared under the same customs declaration form during customs clearance. However, different categories of recycled steel raw materials can be declared under the same customs declaration form. When different categories of recycled steel raw materials are independently packaged or physically separated, or can be distinguished and unloaded separately during unloading, they can be mixed but should be placed separately.

⭕[National Bureau of Statistics (NBS): Raw Coal Production in Above-Scale Industries Reached 1.99 Billion mt from January to May, Up 6.0% YoY]According to data from the National Bureau of Statistics (NBS), the production growth of raw coal, crude oil, and natural gas in above-scale industries accelerated in May, while electricity production grew steadily. In May, the raw coal production in above-scale industries was 400 million mt, up 4.2% YoY, with the growth rate accelerating by 0.4 percentage points compared to April; the daily average production was 13.01 million mt. From January to May, the raw coal production in above-scale industries was 1.99 billion mt, up 6.0% YoY.

⭕[China Passenger Car Association (CPCA): Pickup Truck Sales in May Reached 52,000 Units, Up 13.6% YoY]According to data from the China Passenger Car Association (CPCA), in May 2025, the nationwide pickup truck production was 51,700 units, up 20.8% compared to May 2024. From January to May, pickup truck production was 255,000 units, up 23.4% YoY. In May 2025, pickup truck market sales reached 52,000 units, up 13.6% compared to May 2024 and down 8.1% MoM, remaining at a high level in the past five years. From January to May 2025, pickup truck market sales reached 258,000 units, up 18.2% compared to the same period in 2024.