[SMM Steel Market Morning News] Gradually and orderly restore or replace cultivated land

★Macro★

01★★[US Department of Justice: Trump's Military Action Against Iran Falls Under Constitutional Authority, Congressional Approval May Be Required if Conflict Persists]

According to CCTV News, on June 22 local time, a senior official from the US Department of Justice stated that President Trump's airstrike on Iranian nuclear facilities was conducted under the executive power granted by Article II of the Constitution, and the decision was made in consultation with the White House legal counsel and the Department of Justice. The official noted that the president has broad military command authority in national security matters, while Article I of the Constitution grants Congress the power to declare war. The current airstrikes on three nuclear targets "do not constitute an act of war requiring congressional approval," but if the conflict continues, the administration may need to seek congressional authorization.

02 ★★ [PBOC Conducts Net Withdrawal of 21.5 Billion Yuan in Open Market Operations]

On June 23, the PBOC conducted 220.5 billion yuan in 7-day reverse repo operations at an interest rate of 1.40%, unchanged from previous operations. With 242 billion yuan in 7-day reverse repos maturing on the same day, this resulted in a net withdrawal of 21.5 billion yuan. This week, 960.3 billion yuan in reverse repos matured, up nearly 12% WoW. The maturity volume of interbank certificates of deposit, an important financing channel for banks, was approximately 1,137.9 billion yuan, up over 10% WoW. On June 23, 100 billion yuan in two-month treasury cash deposits matured.

03 ★★ [Gradual and Orderly Restoration or Replacement of Cultivated Land]

To improve cultivated land protection policies, the Ministry of Natural Resources has guided local governments to address the outflow of cultivated land caused by historical occupation for tree planting, fruit cultivation, and tea farming by setting reasonable transition periods based on actual conditions. During the transition period, cultivated land will be gradually and orderly restored or replaced through methods such as "identifying batches," "restoring batches," and "replacing batches," allowing sufficient time for farmers to adjust crop types and for local governments to optimize industrial development. Plots included in the transition period will be considered in cultivated land protection assessments, balancing the responsibility of protecting cultivated land at all levels while reducing the burden on local governments and safeguarding farmers' rights.

★Industry and Downstream★

01 ★★★ [China's Total Billet Exports, January-May]

Customs data showed that China's total billet exports from January to May 2025 reached 4.7165 million mt, up 305.80% YoY, while total billet imports stood at 361,100 mt, down 67.43% YoY. In May 2025 alone, billet exports totaled 1.3723 million mt, up 74.93% MoM and 344.71% YoY. Among them, plain billets accounted for 56.23%, and plain slabs accounted for 13.77%. In May 2025, the total domestic steel billet imports amounted to 30,900 mt, down 46.86% MoM and 69.38% YoY. Among them, plain billets accounted for 45.01%.

02★★★[SMM Steel Shipping] Last week, China's total steel exports decreased by 20% WoW.

During this week, port departures from China's main ports reached 2.6 million mt, down 20% WoW.

03 ★★★ [Malaysia Removes Anti-Dumping Duties on Vietnamese Steel]

Starting from June 23, 2025, Malaysia has removed anti-dumping duties and related investigations on imported goods originating from or exported from South Korea and Vietnam. The Ministry of International Trade and Industry (MITI) of Malaysia has just announced the final ruling on the anti-dumping duty review for cold-rolled or non-alloy steel products with a width exceeding 1,300 mm imported from China, South Korea, Japan, and Vietnam. According to the ruling, MITI has decided to continue imposing anti-dumping duties on relevant producers from China and Japan but has removed anti-dumping duties on relevant exporters from South Korea and Vietnam. Specifically, three Chinese steel enterprises—Angang Steel Co., Ltd., Ma'anshan Iron & Steel Co., Ltd., and Shougang Jingtang United Iron & Steel Co., Ltd.—will be subject to anti-dumping duties ranging from 4.82% to 8.74%. Other Chinese steel producers/exporters will be subject to a duty rate of 26.38%. All Japanese steel producers/exporters will be subject to a duty rate of 26.39%. The aforementioned duty rates will take effect from June 23, 2025, and will be valid for five years until June 22, 2030.

04 ★★ [Hangzhou: Housing Provident Fund Can Be Used to Directly Pay Down Payments for Home Purchases]

According to "Hangzhou Release," to alleviate the pressure on housing provident fund contributors in paying down payments for home purchases, the Hangzhou Housing Provident Fund Management Center has launched a service allowing contributors to directly use their provident fund to pay down payments for newly built commercial housing purchased in Hangzhou, with full online processing support. The online processing function for second-hand housing is currently under development and will be launched soon.

★Other Hot Topics★

⭕[New Batch of New Housing Projects in Shanghai Expected to Enter the Market]The Shanghai Real Estate Trading Center has recently announced a list of new housing projects expected to enter the market. This batch includes a total of 7 projects, distributed in regions such as Pudong, Minhang, Baoshan, Jiading, Jinshan, Qingpu, and Lingang, with a total of 961 units and a listing area of 100,900 m². It is worth noting that the average recorded price of this batch of new homes is all below 100,000 yuan/m². So far, a total of 24 batches of new homes have been supplied in Shanghai in 2025, with a total of 19,560 units available.

⭕[Public Notice on Environmental Impact Assessment of the Technological Transformation and Upgrading Project of Yongda Steel] The Environmental Impact Report for the Technological Transformation and Upgrading Project of Yongda Steel's Steelmaking has been completed. In accordance with the relevant provisions of the Measures for Public Participation in Environmental Impact Assessment (Order No. 4 of the Ministry), before submitting the Environmental Impact Report to the competent ecological and environmental authority for approval, the full text of the Environmental Impact Report and the Public Participation Statement for this project are now being made public. The public is welcome to actively participate and provide valuable feedback.