[SMM Steel Market Morning News] In June, the steel industry realized a profit of 13.6 billion yuan

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Macro

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[Profits of National Industrial Enterprises Above Designated Size, January-June]

From January to June, among industrial enterprises above designated size, state-controlled enterprises achieved a total profit of 1,307.74 billion yuan, up 17.9% YoY; joint-stock enterprises achieved a total profit of 3,044.32 billion yuan, up 24.7%; foreign-invested and Hong Kong, Macau, and Taiwan-invested enterprises achieved a total profit of 887.32 billion yuan, up 2.6%; and private enterprises achieved a total profit of 965.56 billion yuan, up 13.0%. From January to June, the mining sector achieved a total profit of 574.50 billion yuan, up 33.5% YoY; the manufacturing sector achieved a total profit of 2,971.21 billion yuan, up 20.1%; and the electricity, heat, gas, and water production and supply sector achieved a total profit of 402.27 billion yuan, down 4.2%.

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[NMC Continues to Issue Orange Rainstorm Warning at 10:00 on July 27]

The National Meteorological Center continued to issue an orange rainstorm warning at 10:00 on July 27: It is expected that from 14:00 on July 27 to 14:00 on July 28, areas including northern and southeastern Guangdong, southern Fujian, northern and western Guangxi, central and eastern Hunan, western and northern Jiangxi, central and eastern Hubei, central and eastern Henan, southern Anhui, northern Shandong, southern Hebei, northeastern Jilin, western Shaanxi, southern Ningxia, eastern Gansu, western and southern Sichuan Basin, and central and eastern Yunnan will experience heavy to torrential rain. Among them, torrential rain (100–240 mm) is expected in northern and southeastern Guangdong, northern Guangxi, southeastern Fujian, northeastern Hunan, northwestern Jiangxi, southern Hubei, western Sichuan Basin, and eastern Gansu. These areas will be accompanied by short-duration heavy rainfall (maximum hourly rainfall of 20–50 mm, locally exceeding 80 mm), and locally there will be severe convective weather such as thunderstorms, strong winds, or hail.

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Industry & Downstream

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[H1 Profits of Coal Mining and Washing Industry Reach 210.72 Billion Yuan]

From January to June, among industrial enterprises above designated size, state-controlled enterprises achieved a total profit of 1,307.74 billion yuan, up 17.9% YoY; joint-stock enterprises achieved a total profit of 3,044.32 billion yuan, up 24.7%; foreign-invested and Hong Kong, Macau, and Taiwan-invested enterprises achieved a total profit of 887.32 billion yuan, up 2.6%; and private enterprises achieved a total profit of 965.56 billion yuan, up 13.0%.

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[Analysis of Production and Sales of Plate and Strip by Key Statistical Enterprises in June 2026]

In June, the production of medium-thickness plate mills and cold continuous rolling mills in key statistical enterprises increased YoY, while the production of hot continuous rolling mills decreased YoY. The production of major plate varieties showed mixed results YoY, with shipbuilding plates and construction machinery steel plates experiencing relatively large increases, and pipeline steel plates and wind power steel plates experiencing relatively large decreases. Product prices rose except for cold-rolled thin strips, which decreased MoM.

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[Steel Industry Achieves Profit of 13.6 Billion Yuan in June]

From January to June, industrial enterprises above designated size nationwide achieved a total profit of 3,947.99 billion yuan, up 18.7% YoY. From January to June, among industrial enterprises above designated size, state-controlled enterprises achieved a total profit of 1,307.74 billion yuan, up 17.9% YoY; joint-stock enterprises achieved a total profit of 3,044.32 billion yuan, up 24.7%; foreign-invested and Hong Kong, Macau, and Taiwan-invested enterprises achieved a total profit of 887.32 billion yuan, up 2.6%; and private enterprises achieved a total profit of 965.56 billion yuan, up 13.0%. From January to June, the mining sector achieved a total profit of 574.50 billion yuan, up 33.5% YoY; the manufacturing sector achieved a total profit of 2,971.21 billion yuan, up 20.1%; and the electricity, heat, gas, and water production and supply sector achieved a total profit of 402.27 billion yuan, down 4.2%.

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[China Automobile Dealers Association Passenger Car Joint Branch Head Cui Dongshu: Auto Industry Profit Margin at 3.8% in January-June 2026]

Cui Dongshu, head of the China Automobile Dealers Association Passenger Car Joint Branch, stated in a post that in January-June 2026, the auto industry's revenue was 5,189.3 billion yuan, up 1.8% YoY; cost was 4,610 billion yuan, up 2.8%; profit was 195.4 billion yuan, down 20% YoY; and the auto industry's profit margin was 3.8%, which remains low compared to the downstream industrial enterprises' average profit margin of 6.5%.

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Other Hot Topics

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⭕[Shanghai Huangpu District: Promoting Smart and Quality Upgrades of Sports Venue Facilities, Significantly Improving Utilization Efficiency] The Shanghai Huangpu District issued the "Huangpu District Sports Development 15th Five-Year Plan," which states that by 2030, the proportion of people regularly engaging in physical exercise is expected to reach 53%. There should be no fewer than 5.5 social sports instructors per 1,000 people and no fewer than 32 sports fitness organizations per 10,000 people. The waterfront sports space along the "One River, One Creek" will be continuously expanded, and the smart and quality upgrades of sports venue facilities in the district will be promoted, resulting in a significant improvement in utilization efficiency.

⭕[Brazil Initiates Sunset Review of Anti-Dumping Measures on Seamless Alloy Steel Cylinders from China] Recently, the Foreign Trade Secretariat of the Ministry of Development, Industry, Commerce, and Services of Brazil issued Notice No. 60/2026, in response to an application filed by the domestic Brazilian company Mat Equipamentos para Gases Ltda on March 26, 2026, initiating the first sunset review of anti-dumping measures on seamless alloy steel cylinders (Portuguese: cilindros para GNV) originating from China. The NCM code of the products involved is 7311.00.00. The dumping investigation period is from January 2025 to December 2025, and the injury investigation period is from January 2021 to December 2025. The notice is effective from the date of issuance.

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