[SMM Steel Market Morning News] China's Logistics Industry Prosperity Index for June was 50.8%

★Macro★Z2/>01

 ★★ [China's Logistics Industry Prosperity Index Reaches 50.8% in June]

The China Federation of Logistics and Purchasing (CFLP) released June's China Logistics Industry Prosperity Index on July 2. As demand continues to improve, logistics business volumes maintained expansion momentum with the prosperity index rising further. The June index reached 50.8%, up 0.2 percentage points MoM.

Sub-indices analysis shows the total business volume index has stayed in expansion territory for four consecutive months this year. Regionally, central and western regions outperformed the national average in total business volume.

02 ★★ [PBOC Achieves Net Withdrawal of 266.8 Billion Yuan via Open Market Operations]

The People's Bank of China (PBOC) conducted 98.5 billion yuan of 7-day reverse repos today, with bidding volume and awarded volume both at 98.5 billion yuan. The operating rate remained unchanged at 1.40%. With 365.3 billion yuan of 7-day reverse repos maturing today, the net withdrawal reached 266.8 billion yuan.

★Industry & Downstream Sectors★

01 ★★★  [Top 100 Real Estate Firms' June Sales Rise 14.7% MoM]

As mid-year approaches, major developers accelerated performance push efforts. Latest data from research institutions shows top 100 developers achieved 338.96 billion yuan in sales operating revenue in June 2025, up 14.7% MoM. Nearly 60% of these firms reported MoM sales growth. For H1 2025, their total land acquisition investment reached 506.55 billion yuan, up 33.3% YoY.

02 ★★ ★[Shanghai Releases Real Estate "Semi-Annual Report"]

Following implementation of policies including "Shanghai's 9 Measures" and "Shanghai's 7 Measures", the city's real estate market maintained stabilization momentum seen since Q4 2024. Statistics show cumulative transactions of new and existing homes from January to June reached 13.11 million m², the highest for this period since 2022, representing a 17% YoY increase.

03 ★★ [537 Major Projects Commence Construction in Anhui]

According to Anhui provincial government announcements, the CPC Anhui Provincial Committee and Provincial Government held the 2025 third batch major project construction mobilization meeting on the morning of July 2.

During the meeting, the provincial development and reform commission reported progress on first and second batch projects and arrangements for the third batch. Sixteen prefecture-level cities presented local major project construction status via video links.

This construction mobilization involves 537 projects with total investment of 324.08 billion yuan and annual planned investment of 66.91 billion yuan. There are 13 projects with investments exceeding 3 billion yuan and 8 projects with investments exceeding 5 billion yuan.

04 ★★ [This Year's 800 Billion Yuan List of 'Two Priorities' Construction Projects Fully Released]

Recently, the National Development and Reform Commission (NDRC) allocated over 300 billion yuan to support the third batch of 'Two Priorities' construction projects in 2025. With this, the full list of 800 billion yuan 'Two Priorities' construction projects for this year has been released.

For 'hard investment' initiatives, 800 billion yuan has been earmarked in 2025 to support 1,459 projects across key areas including ecological restoration of the Yangtze River Basin, major transportation infrastructure along the Yangtze River, the New International Land-Sea Trade Corridor, high-standard farmland, major water conservancy projects, urban underground pipelines, the 'Three-North' Shelterbelt Program, hospital ward renovations, regular high school construction, and other priorities related to urbanization of rural migrant populations and higher education quality upgrades.

05 ★★[Tesla Delivers 384,000 Vehicles in Q2, Missing Market Expectations]

Tesla delivered 384,122 vehicles in Q2, up 14.09% QoQ, falling short of the estimated 389,407 units. Q2 automotive production reached 410,244 units, up 13.13% QoQ, below the projected 400,083 units. Q2 Model 3/Y deliveries totaled 373,728 units.

★Other Hot Topics★

⭕[HBIS High-End Pipeline Steel Used in BRI Projects]HBIS Group Tangsteel recently completed production of a batch of high-end X70M pipeline steel for a major African energy client, which will be deployed in energy infrastructure construction for Belt and Road Initiative (BRI) participating countries.

Tangsteel deeply engages with domestic and overseas energy engineering steel demands, leveraging HBIS's global marketing platform and integrated sales, R&D, and production advantages to participate in major BRI projects spanning energy, water conservancy, and mining sectors. Through close client communication, the sales team identified requirements for materials capable of long-term service in complex geological environments. In response, Tangsteel formed a joint task force combining R&D, technical, and production experts to conduct targeted technological breakthroughs. During production, the technical team achieved precise micro-alloy composition adjustments, innovatively applied KR mechanical stirring and deep degassing treatment processes, optimized rolling parameters, and ultimately ensured full compliance with client performance standards.

⭕[Taihang Steel Successfully Rolls QStE420TM Cold-Formed Hot-Rolled Fine-Grain Steel]On June 30, Hebei Taihang Steel Group successfully rolled QStE420TM cold-formed hot-rolled fine-grain steel, expanding its product portfolio.

The superior performance of cold-formed hot-rolled fine-grained steel QStE420TM enables automotive structural components to withstand greater loads, enhancing vehicle safety and reliability. Meanwhile, its excellent plasticity and cold formability allow steel plates to be easily processed into various complex shapes, meeting the diversified design needs of the automotive industry and creating greater space for material innovation in automobile manufacturing.

Looking ahead, Hebei Taihang Iron and Steel Group Co., Ltd. will continue to adhere to the innovation-driven development strategy, increasing investments in rolling technology for new steel grades. The company is committed to providing the automotive industry with more high-performance, lightweight, and environmentally friendly steel solutions while gaining greater competitive advantages in the national market for Taihang Iron and Steel.

⭕[Fujian Luoyu Operation Area's Iron Ore Imports/Exports Exceed 10 Million mt]On the morning of July 1, under the supervision of the Putian Entry-Exit Border Inspection Station, the "Ming Feng" vessel carrying 390,000 mt of iron ore from Brazil completed unloading and departed smoothly from Luoyu Operation Area at Dongwu Port, Putian City, Fujian Province.

According to data from Fujian Luoyu Port Development Co., Ltd., iron ore imports/exports at Luoyu Operation Area have reached 10.4278 million mt since the beginning of this year, up 17.31% YoY.

⭕[Trump Announces US-Vietnam Trade Deal]As reported by Xinhua News Agency, US President Trump stated on the 2nd that the United States has reached a trade agreement with Vietnam. In a post on the social media platform "Truth Social," Trump announced, "A trade agreement has been reached with Vietnam. Details will be released later!" He later added that all Vietnamese exports to the US would face at least 20% tariffs while Vietnam would "fully open its market" to the US. That same day, Vietnam News Agency reported that General Secretary of the Communist Party of Vietnam Central Committee Su Lin held a phone conversation with Trump regarding Vietnam-US relations and tariff negotiations. Trump emphasized that the US would continue collaborating with Vietnam to resolve bilateral trade issues. Su Lin proposed that the US promptly recognize Vietnam's market economy status and lift export restrictions on certain high-tech products to Vietnam.