[SMM Steel Market Morning News] The People's Bank of China conducted reverse repo operations worth 57.2 billion yuan for a 7-day term

★MACRO★

01 ★★ [Central Bank Conducts 57.2 Billion Yuan 7-Day Reverse Repo Operations]

The People's Bank of China announced that on July 3, 2025, it conducted 57.2 billion yuan in reverse repo operations through fixed-rate quantity tender, with an operation rate of 1.40%. Both the bid volume and awarded volume stood at 57.2 billion yuan. According to iFinD data, 509.3 billion yuan in 7-day reverse repos matured today.

02 ★★ [China's Warehousing PMI Reached 51% in June]

The China Federation of Logistics & Purchasing released the June China Warehousing Index on the 3rd. The index has remained in expansion territory for eight consecutive months, indicating sustained positive operation in the warehousing sector. June's index stood at 51%, up 0.5 percentage points MoM. Key sub-indices including new orders, average inventory turnover frequency, business profits, and business activity expectations all showed rebounds.

Specifically, the new orders index reached 51.6% in June, rising 0.7 percentage points MoM. The slight increase within expansion territory reflects active warehousing demand and continued growth in orders. By product category, consumer goods warehousing demand performed particularly well, with notable index increases for food, home appliances, and agricultural products. Driven by growing business demand, overall corporate profits also rebounded. The business profits index re-entered expansion territory after five months, signaling improved operational conditions for warehousing enterprises.

Overall, during H1, China's Warehousing Index consistently operated in expansion territory. The new orders index maintained expansion for six consecutive months, indicating stable demand growth. The business activity expectations index remained at relatively high levels, reflecting sustained optimism among enterprises.

★INDUSTRY & DOWNSTREAM★

01 ★★ [Beijing Proposes Regulation: Individual Subletters Renting 10+ Properties to Face Industry Supervision]

To further standardize housing rental practices and protect tenants' rights, the Beijing Municipal Commission of Housing and Urban-Rural Development, together with market regulators, drafted the "Notice on Standardizing Individual Housing Subletting Activities (Draft for Public Comment)" based on relevant regulations including the Beijing Housing Rental Ordinance. The draft was released for public feedback starting July 3. According to the notice, individuals subletting 10 or more properties will be subject to industry supervision. Additionally, internet platforms and real estate agencies will be prohibited from providing listing or intermediary services to individuals subletting 10 or more units.

02★★ [CAAM: Auto Commodity Export Value Reached US$20.67 Billion in May, Up 12.2% YoY]

Data compiled by the General Administration of Customs and released by the China Association of Automobile Manufacturers (CAAM) shows that in May 2025, China's total auto commodity import-export volume reached US$25.06 billion, up 8.5% MoM and 3.2% YoY. The import value stood at US$4.38 billion, up 18.4% MoM but down 25% YoY, while export value reached US$20.67 billion, up 6.6% MoM and 12.2% YoY. From January to May 2025, the cumulative auto commodity import-export volume totaled US$107.73 billion, down 2.7% YoY. Specifically, import value reached US$17.66 billion (down 32.4% YoY) and export value reached US$90.07 billion (up 6.5% YoY).

03 ★★ [MOFCOM: Trade-in Sales of E-bikes Grew 113.5% MoM on Average During Jan-Jun]

According to the Ministry of Commerce, trade-in sales of electric bicycles nationwide achieved an average monthly growth rate of 113.5% from January to June 2025. As of June 30, both old e-bike collections and new vehicle replacements reached 8.465 million units nationwide, representing a 6.1-fold increase compared to 2024.

04 ★★ [MOFCOM: Will Strengthen Guidance on Used Car Exports to Promote Orderly Development]

The Ministry of Commerce held a regular press conference on the afternoon of July 3, 2025. Spokesperson He Yongqian stated that automobiles are "big-ticket durable" consumer goods, and encouraging the used car market is a common practice worldwide. In February 2024, the ministry jointly issued regulations with relevant departments to formalize used car export procedures, officially launching the national export business. Over the past year, local authorities have implemented these regulations strictly to ensure quality and safety, meeting overseas consumer car purchase demands. "Going forward, we will continue collaborating with relevant departments to strengthen guidance on used car exports and promote their healthy, orderly development," He added.

05 ★★ [CPCA: National Passenger Vehicle Retail Sales Grew 15% YoY, 5% MoM in June]

Data released by the China Passenger Car Association (CPCA) shows that from June 1-30, 2025, nationwide passenger vehicle retail sales reached 2.032 million units, up 15% YoY and 5% MoM. Cumulative sales for the year reached 10.849 million units, up 10% YoY. During the same period, new energy passenger vehicle retail sales hit 1.071 million units, up 25% YoY and 4% MoM, with a retail penetration rate of 52.7%. Year-to-date new energy retail sales totaled 5.429 million units, up 32% YoY.

★Other Hot Topics★

⭕[Heavy Rainfall in Sichuan, Liaoning and Other Regions; Strongest High-Temperature Process This Year Continues to Affect Central-Eastern China]According to China Weather Network, as the subtropical high pressure system controls most areas from China's Huang-Huai region to southern China, rain bands will remain stable in the Sichuan Basin, eastern part of north-west China, North China, and northeast China over the next three days (July 3-5). Heavy rainstorms are expected today in parts of eastern Liaoning, southeastern Jilin, southeastern Gansu, and northwestern Sichuan Basin. Meanwhile, the strongest high-temperature process this year persists, with the highest temperature range occurring tomorrow. Daytime and nighttime humidity will combine to create sweltering conditions, with some regions exceeding 40℃.

⭕[MOFCOM Responds to US-Vietnam Trade Agreement]On the afternoon of July 3, the Ministry of Commerce (MOFCOM) held a regular press conference where a reporter asked about the US-Vietnam trade agreement. In response, MOFCOM spokesperson He Yongqian stated that the US imposition of so-called "reciprocal tariffs" on global trading partners represents typical unilateral bullying practices, which China firmly opposes. China has taken note of relevant developments and is conducting assessments. Our position remains consistent: while we welcome all parties to resolve economic and trade disputes with the US through equal consultations, we firmly oppose any deals reached at the expense of China's interests. Should such circumstances arise, China will take resolute countermeasures to protect its legitimate rights and interests.

⭕[MOFCOM Responds to Reports About US President Planning Business Delegation Visit to China]On the afternoon of July 3, during a regular press conference, a reporter asked about reports that the US president plans to lead a business delegation to visit China. MOFCOM spokesperson He Yongqian responded: "I have no information to provide on this specific matter. However, China's attitude remains consistent and clear. We hope the US will work with China under the strategic guidance of the two heads of state, adhering to the principles of mutual respect, peaceful coexistence, and win-win cooperation. We should continuously expand consensus, reduce misunderstandings, strengthen cooperation, and jointly promote the healthy, stable, and sustainable development of China-US economic and trade relations."