[SMM Steel Market Morning News] The 520 billion yuan in fixed increase fundraising from the four major banks has all been received

★Macro★

01 ★★ [Big Four Banks Complete RMB520 Billion Private Placements]

According to China Construction Bank, the bank successfully issued A-shares to specific investors, with the Ministry of Finance as the subscriber, raising a total of RMB105 billion. After deducting related issuance costs, the proceeds were all used to supplement the bank's core tier-1 capital. This marks the completion of capital-raising activities by all four major state-owned banks. The entire process, from the release of the private placement plan to the completion of fundraising, took less than three months.

02 ★★ [China's Installed Power Generation Capacity Reaches 3.61 Billion kW by May-End 2025]

Data from the National Energy Administration showed that by the end of May, China's cumulative installed power generation capacity reached 3.61 billion kW, up 18.8% YoY. Specifically, solar power capacity stood at 1.08 billion kW (up 56.9% YoY), while wind power capacity totaled 570 million kW (up 23.1% YoY). Solar and wind power accounted for over 45% of the total installed capacity. In terms of power generation, the average utilization hours of power generation equipment nationwide from January to May was 1,249 hours, down 132 hours compared to the same period last year. Regarding investments, major power generation enterprises completed RMB257.8 billion in power supply projects (up 0.4% YoY), while power grid projects saw RMB204 billion in completed investments (up 19.8% YoY).

★Industry & Downstream★

01 ★★★ [SMM Weekly Maintenance Summary]

According to SMM statistics, during the current week (June 21-27), blast furnace maintenance impacted pig iron production by 1.0304 million mt, down 88,000 mt WoW. Next week (June 28-July 4), the impact is projected at 1.0856 million mt, up 55,200 mt WoW. For building materials, this week's maintenance impact was 1.2689 million mt (down 8,800 mt WoW), while next week's is estimated at 1.1466 million mt (down 122,300 mt WoW). For hot rolling, this week's impact was 52,400 mt (down 64,400 mt WoW), with next week's forecast at 19,600 mt (down 32,800 mt WoW).

02★★★[South Korea's Imported Diesel Vehicle Market Continues to Shrink, Annual Sales May Hit Record Low]

Data released by the Korea Automobile Importers & Distributors Association (KAIDA) on June 24 showed that only 349 imported diesel passenger cars were sold in the domestic market in May, plunging 60.2% YoY. From January to May this year, cumulative sales reached 1,469 units, marking a 50.4% YoY decline, with a market share of only 1.3%. As sales plummeted, the proportion of diesel car models in the overall imported passenger vehicle market also dropped significantly. Data shows that in the first five months of this year, diesel car models accounted for only 1.3% of sales among all fuel types. Influenced by the continuous rise in sales of new energy car models, this proportion is likely to fall below 1% within the year. In contrast, last year, the market share of diesel car models was 2.9%, the lowest level since 2004.

03★★[SMM Electric Furnace Operating Rate] Difficulties in Steel Scrap Collection and Order Abandonment: Electric Furnace Mills Adjust Operating Pace Amid Losses

According to the SMM survey, as of June 24, the operating rate of 50 electric furnace steel mills nationwide, primarily producing construction materials, stood at 31.38%, up 0.4% from the previous period; the capacity utilization rate was 33.79%, down 0.27% MoM; and the daily average production of construction materials was 75,300 mt, down 600 mt MoM.

04 ★★★ [China's Construction Machinery Export Value Reached 165.91 Billion Yuan from January to May]

According to customs data, in May 2025, China's import and export trade volume of construction machinery was $5.238 billion, up 8.1% YoY. Among this, the import value was $214 million, down 0.74% YoY; the export value was $5.024 billion, up 8.51% YoY. From January to May 2025, China's import and export trade volume of construction machinery was $24.185 billion, up 8.49% YoY. Among this, the import value was $1.09 billion, down 0.86% YoY; the export value was $23.095 billion, up 8.98% YoY. Calculated based on the export value in yuan, the export value in May was 36.168 billion yuan, up 10.1% YoY. From January to May, the export value was 165.91 billion yuan, up 10.2% YoY.

05 ★★ [China's Coated Plate (Strip) Exports Reached 1.7499 Million Tons in May]

According to data from the General Administration of Customs, in May 2025, China's total export volume of coated plate (strip) was 1.7499 million tons, down 4.79% MoM and up 10.51% YoY. From January to May 2025, China's total export volume of coated plate (strip) was 8.6194 million tons, up 12.64% YoY. In May 2025, China's total import volume of coated plate (strip) was 67,400 tons, down 5.65% MoM and down 41.02% YoY. From January to April 2025, China's total import volume of coated plate (strip) was 375,400 tons, down 24.20% YoY.

★Other Hot Topics★

⭕[Haikou Plans to Start 14 Urban Renewal Projects This Year]A reporter learned from the Haikou Municipal Housing and Urban-Rural Development Bureau on June 23 that this year, Haikou plans to start 14 urban renewal projects, involving a land area of 623.79 mu and a total construction area of approximately 1.382 million m². It is understood that since the implementation of urban renewal, Haikou has commenced construction on a total of 19 urban renewal projects, including urban village projects, contiguous development projects, and independent renovation projects for dilapidated residential communities. The total investment is approximately 94.1 billion yuan, with 4,826.46 mu of land acquired and demolished, and 2.3845 million m³ of building area acquired and demolished, benefiting 53,000 people. As of now, approximately 17.226 billion yuan of investment has been completed. Next, Haikou will comprehensively survey and sort out the situation of urban villages across the city, and implement and promote the renovation work of urban villages by category. For renovation projects involving rectification, the city will improve the preliminary work such as project feasibility studies and preliminary designs, actively apply for central budgetary funds, and implement a package of "micro-renewal" projects for urban villages. For renovation projects involving demolition and new construction, the city will actively apply for special bonds and special loans to systematically promote the implementation of renovation work.

⭕[Hyundai and Kia's vehicle production in South Korea decreased by 5% YoY in May]According to data from the Korea Automobile Manufacturers Association (KAMA), the combined vehicle production of Hyundai and Kia in South Korea in May totaled 291,649 units, representing a 5% YoY decrease. Among them, Hyundai's production was 157,314 units, a 6% decrease, while Kia's production was 134,335 units, a 3.8% decrease.