[SMM Steel Market Morning News] National Development and Reform Commission (NDRC): China's economic operation has remained generally stable since the beginning of this year

★Macro★

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[National Development and Reform Commission (NDRC): China's Economic Performance Has Remained Generally Stable Since the Beginning of the Year]

At the NDRC's June press conference, the commission's spokesperson stated that China's economic performance has remained generally stable since the beginning of the year. From the supply side, agricultural production has proceeded orderly, with stable growth in industrial and service sectors. In May, the value-added industrial output of enterprises above designated size increased by 5.8% YoY, while the service production index grew by 6.2%, accelerating by 0.2 percentage points compared to the previous month.

From the demand side, consumption and investment continued to expand, with exports maintaining relatively rapid growth. In May, total retail sales grew by 6.4% YoY, marking the highest growth rate since 2024. In the first five months, fixed asset investment maintained stable growth, with manufacturing investment rising by 8.5%. In May, exports of goods denominated in yuan increased by 6.3%, including 17.5% growth in exports to ASEAN, 13.7% to the EU, and 13.8% to countries participating in the Belt and Road Initiative.

02 ★★ [NDRC: Electricity Supply-Demand Balance for Peak Summer Demand Better Than Last Year]

On June 26, Li Chao, Deputy Director of the NDRC's Policy Research Office, indicated that summer represents the peak electricity load period, and energy supply security hinges on electricity. It is projected that the national peak electricity load will increase by approximately 100 million kW YoY during this year's peak summer demand period.

To address this situation, the NDRC has collaborated with relevant parties to implement a series of preemptive measures focusing on electricity supply security, providing robust support for this year's peak summer demand power supply. Li Chao stated that current conditions suggest the electricity supply-demand balance during this year's peak summer period will be better than last year, with overall national power supply and demand balance guaranteed.

★Industry & Downstream Sectors★

01 ★★★  [Over 10 Trillion Yuan in Projects Introduced to Private Capital Nationwide]

China is making comprehensive efforts to optimize the business environment, eliminate hidden barriers, and stimulate private sector vitality. According to the "National Platform for Introducing Projects to Private Capital" established by the NDRC, as of June 25, projects introduced to private capital nationwide exceeded 10 trillion yuan in investment value.

Among these, over 3,200 high-quality projects recently introduced by the NDRC alone involved total investments exceeding 3 trillion yuan.

02 ★★ [Wuhou District Residential Land Parcel in Chengdu Sold at 19.25% Premium]

On June 26, a residential land parcel in Chengdu's Wuhou District was auctioned, with a land area of 11,915.76㎡, planned construction area of 29,789㎡, floor area ratio of 2, starting floor price of 16,100 yuan/㎡, and starting total price of approximately 480 million yuan.

The plot attracted six real estate enterprises including Yuexiu, Greentown, and Aonan to participate in the bidding, and was ultimately acquired by Aonan at a floor price of 19,200 yuan/m², with a total transaction price of approximately 572 million yuan and a premium rate of 19.25%.

03 ★★ [Ministry of Finance: Full Support for Private Enterprises' Participation in Cross-border Infrastructure]

From June 24 to 26, the 10th Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) was held in Beijing, attended by over 3,500 guests from nearly 100 countries and regions. At the forum on June 25, Minister of Finance Lan Fo'an stated that cross-border infrastructure construction has developed vigorously in recent years, and the Ministry of Finance will continue to improve the institutional environment to maximize encouragement for private enterprises to participate in the construction and operation of cross-border connectivity infrastructure projects.

04 ★★ [Jinan Residential Land Floor Price Exceeds 20,000 yuan/m² for First Time; China Overseas Land Acquires Lixia District Plot for Over 3.27 Billion Yuan]

The combined plot group consisting of DMLD-13-02 and DMLD-13-23 in Phase I of Wenboxi Area, Lixia District, Jinan City, Shandong Province, attracted two bidders. After 110 rounds of bidding, it was ultimately acquired by a subsidiary of China Overseas Land & Investment (00688.HK) for a total price of 3.2735 billion yuan with an 11.1% premium. The converted floor price for the two residential plots reached 20,232 yuan/m², setting a new record for residential land prices in Jinan and marking the first time Jinan's residential land unit price exceeded 20,000 yuan/m². Another commercial plot was sold for 646.09 million yuan with a floor price of 4,499 yuan/m². Nearby projects under sale include Cloud Peak No.1 and Poly Jinmao Langyu, with selling prices exceeding 30,000 yuan/m².

★Other Hot Topics★

⭕[National Development and Reform Commission: Third Batch of Consumer Goods Trade-in Funds to Be Allocated in July]Li Chao, Deputy Director of the Policy Research Office of the National Development and Reform Commission (NDRC), stated at a press conference that the third batch of funds for the consumer goods trade-in policy will be allocated in July this year. The NDRC will coordinate relevant parties to adhere to principles of sustainability and balance, formulating monthly and weekly implementation plans for state subsidy fund utilization to ensure the orderly execution of the trade-in policy throughout the year.

⭕[Xie Feng: China-Latin America Cooperation Has No Geopolitical Calculations, Does Not Target Third Parties, Nor Should It Be Interfered by Third Parties]According to CCTV News, Chinese Ambassador to the US and Permanent Observer to the Organization of American States (OAS) Xie Feng emphasized at the 55th OAS Annual Meeting in Antigua and Barbuda on June 25 local time that all countries, regardless of size, strength, or wealth, are equal and important members of the international community. Latin America and the Caribbean is a vibrant land and the shared home of its peoples. China-Latin America cooperation involves no geopolitical calculations, seeks no spheres of influence, imposes no political conditions, coerces no country into taking sides, targets no third party, nor should it be subject to third-party interference. China firmly supports Latin American and Caribbean countries in safeguarding sovereignty and independence, opposes power politics and external interference, and hopes the Latin American side will steadfastly adhere to the one-China principle and firmly support China's efforts to defend its sovereignty and territorial integrity. Xie Feng pointed out that the key to closer China-Latin America ties lies in an open and inclusive mindset and commitment to fairness and justice. This year marks the 80th anniversary of the founding of the United Nations. Both sides should practice true multilateralism, uphold openness over closure, inclusiveness over exclusion, and unity over division; jointly advocate an equitable and orderly multipolar world and a universally beneficial and inclusive economic globalization; jointly safeguard the UN-centered international system and the international order underpinned by international law; and enhance the representation and voice of developing countries.

⭕[US Fed official COLLINS: July interest rate cut may be premature]US Fed official Collins stated that a July interest rate cut may be premature; the baseline assumption is cutting interest rates later in 2025; and the Fed has time to carefully evaluate incoming information.