[SMM Steel Market Morning News] 300 billion national subsidies for "trade-in" policy advancing in an orderly manner

★Macro★

01

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Central Bank to Establish Interbank Market Transaction Reporting Repository and International Digital RMB Operation Center

At the opening ceremony of the 2025 Lujiazui Forum, Pan Gongsheng, Governor of the People's Bank of China, announced the establishment of an interbank market transaction reporting repository. This repository will aggregate and systematically analyze transaction data from various financial sub-markets, including interbank bonds, currencies, derivatives, gold, and bills, to serve financial institutions, macroeconomic regulation, and financial market supervision. Meanwhile, an international digital RMB operation center will be established to promote the international operation of digital RMB and the development of financial market businesses, supporting digital financial innovation.

02

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PBOC Achieves Net Withdrawal of 7.7 Billion Yuan in Open Market Operations

On June 18, the People's Bank of China conducted 156.3 billion yuan of 7-day reverse repo operations at an interest rate of 1.40%, unchanged from the previous rate. As 164 billion yuan of 7-day reverse repos matured on the same day, a net withdrawal of 7.7 billion yuan was achieved.

★Industry and Downstream Sectors★

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[SMM Blast Furnace Operating Rate]

According to the SMM survey, as of June 18, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 87.70%, down 0.45 percentage points MoM. The capacity utilization rate of blast furnaces was 89.10%, down 0.41 percentage points MoM. The daily average pig iron production of the sampled steel mills was 2.4084 million mt, down 6,500 mt MoM.

02

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Shenzhen: Over 10 Million Home Appliances and Digital Products Sold Through Trade-in Policy

Data released by the Shenzhen Municipal Bureau of Commerce show that since the launch of the 2025 consumer goods trade-in policy, consumers have actively participated. As of June 16, the trade-in policy had driven auto sales of over 70,000 units, with a sales amount of 17.6 billion yuan. Through the trade-in policy, a cumulative total of 10.01 million home appliances and digital products were sold both online and offline, with a sales amount of 19.1 billion yuan.

03

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"National Subsidies" Suspended in Multiple Regions? Relevant National Departments: Remaining Support Funds to Be Disbursed in an Orderly Manner, Guiding Local Governments to Use "National Subsidies" Funds Steadily and Orderly

Recently, there have been reports that the "national subsidies" for trade-in policies have been suspended or adjusted in multiple regions. In response, relevant national authorities stated regarding the next steps for the "national subsidies" that this year, the country has allocated 300 billion yuan of ultra-long-term special treasury bond funds to support the trade-in of consumer goods. So far, a total of 162 billion yuan has been disbursed to local governments, and the remaining funds will be disbursed in an orderly manner. The 2025 consumer goods trade-in policy will be implemented throughout the year, and relevant departments are guiding local governments to use the "national subsidies" funds steadily and orderly to maximize the policy's effectiveness.

04

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CPCA: 706,000 passenger vehicles sold in China's passenger vehicle market from June 1-15, up 20% YoY compared to the same period in June last year

Data from the CPCA shows that from June 1-15, 706,000 passenger vehicles were sold in China's passenger vehicle market, up 20% YoY compared to the same period in June last year, and down 9% MoM compared to the same period last month. The cumulative retail sales for the year so far reached 9.522 million vehicles, up 10% YoY. From June 1-15, passenger vehicle producers nationwide distributed 714,000 vehicles, up 24% YoY compared to the same period in June last year, and up 4% MoM compared to the same period last month. The cumulative wholesale distribution for the year so far reached 11.504 million vehicles, up 12% YoY.

★Other Hot Topics★

⭕[The Central Meteorological Observatory continues to issue a yellow warning for heavy rain at 10:00 on June 18]The Central Meteorological Observatory continues to issue a yellow warning for heavy rain at 10:00 on June 18: It is expected that from 14:00 on June 18 to 14:00 on June 19, heavy to torrential rain will occur in parts of eastern south-west China, northern Guangxi, Hubei, western and northern Hunan, northern Jiangxi, southwestern Anhui, as well as central and western Liaoning, Tianjin, northwestern Shandong, southern and western Henan. Among these areas, there will be extremely heavy rainfall (100-200 millimeters) in parts of southwestern Hubei, northwestern Hunan, southeastern Chongqing, northeastern Guizhou, and northeastern Guangxi. Some of the aforementioned areas will be accompanied by short-term heavy precipitation (maximum hourly rainfall of 20-50 millimeters, with local areas possibly exceeding 80 millimeters), and there will be severe convective weather such as thunderstorms and gales in some local areas.

⭕[China imported 36.04 million mt of coal and lignite in May]The latest data from the General Administration of Customs shows that in May 2025, China exported 410,000 mt of coal and lignite, up 32.3% YoY. The cumulative exports from January to May reached 2.54 million mt, up 12.9% YoY. In May, China exported 680,000 mt of coke and semi-coke, up 2.2% YoY. The cumulative exports from January to May reached 3 million mt, down 25.0% YoY. In May, China imported 36.04 million mt of coal and lignite, down 17.7% YoY. The cumulative imports from January to May reached 188.67 million mt, down 7.9% YoY.

⭕[Ranking of the top 10 enterprises in raw coal production from January to May 2025 announced]According to statistics from the National Bureau of Statistics (NBS), from January to May, the raw coal production of enterprises above designated size was 1.99 billion mt, up 6.0% YoY. In May, the raw coal production of enterprises above designated size was 400 million mt, up 4.2% YoY, with a daily average production of 13.01 million mt. The growth rate of raw coal production accelerated. According to customs statistics, China imported 189 million mt of coal nationwide from January to May, down 7.9% YoY. According to statistics from the Statistics and Information Department of the China National Coal Association, the combined raw coal production of the top 10 enterprises from January to May 2025 was 980 million mt, an increase of 49.61 million mt YoY, accounting for 49.2% of the raw coal production of enterprises above designated size. The specific situation is as follows: China Energy Investment Corporation produced 254.27 million mt, down 1.4% YoY; Jinneng Holding Group produced 168.48 million mt, up 17.5% YoY; Shandong Energy Group produced 115.52 million mt, up 5.2% YoY; China National Coal Group produced 113.07 million mt, up 3.0% YoY; Shaanxi Coal and Chemical Industry Group produced 107.39 million mt, up 2.1% YoY; Shanxi Coking Coal Group produced 77.67 million mt, up 20.6% YoY; China Huaneng Group produced 42.85 million mt, down 8.4% YoY; Lu'an Chemical Industry Group produced 41.38 million mt, up 14.3% YoY; Henan Energy and Chemical Industry Group produced 31.28 million mt, up 7.0% YoY; Huaihe Energy Group produced 30.26 million mt, up 1.8% YoY.