★Macro★
01 ★★★【Support for Stabilization and Rebound of RMB Exchange Rate】
Recently, with continuous signals and policies to stabilize the exchange rate, the RMB exchange rate showed a significant stabilization after a slight decline at the beginning of the year. On the evening of January 20, the offshore RMB against the US dollar surged sharply, briefly recovering the 7.28 level and rising over 400 points. The onshore RMB against the US dollar also experienced a sharp rise, climbing nearly 500 points in a short time. Over the past week, the onshore RMB against the US dollar rebounded nearly 700 points, while the offshore RMB rose over 800 points. Several industry insiders stated that after the previous depreciation pressure on the RMB was released, positive factors driving a new round of RMB appreciation are now accumulating.
02 ★★★ 【National Energy Administration: Installed Power Generation Capacity Reached 3.35 Billion kW by End-2024, Up 14.6% YoY】
On January 21, the National Energy Administration released the 2024 national power industry statistics. By the end of December, the total installed power generation capacity nationwide reached approximately 3.35 billion kW, up 14.6% YoY. Among this, solar power generation capacity was about 890 million kW, up 45.2% YoY, and wind power generation capacity was about 520 million kW, up 18.0% YoY.
03 ★★ 【PBOC Net Injected 201 Billion Yuan into Open Market】
The PBOC conducted 256 billion yuan of 14-day reverse repo operations at an interest rate of 1.65%, unchanged from the previous rate. With 55 billion yuan of reverse repos maturing today, a net injection of 201 billion yuan was achieved.
★Industry and Downstream★
01 ★★★ 【SMM Electric Furnace Operating Rate】Most Electric Furnace Mills Enter Year-End Break, Operating Rate Down 27.2% MoM
According to the SMM survey, as of January 21, the operating rate of 50 major electric furnace steel mills producing construction materials nationwide was 8.18%, down 27.2% MoM; the capacity utilization rate was 8.47%, down 29.1% MoM; and the daily average production of construction materials was 18,900 mt, down 64,800 mt MoM.
02 ★★【SMM Zhangjiagang HRC Inventory】Zhangjiagang Inventory Continued to Decline in the Last Week Before the Holiday
This week, Zhangjiagang HRC inventory was 403,000 mt, down 13,000 mt WoW, a decrease of 3.13%. The YoY decline was 12.39% based on the Gregorian calendar and 16.04% based on the lunar calendar.
03 ★★★ 【2024 NEV Production by Province and City Released】
According to the National Bureau of Statistics, in December 2024, China's NEV production reached 1.647 million units, up 43.2% YoY. From January to December, NEV production totaled 13.168 million units, up 38.7% YoY. By province, Guangdong ranked first with 3.6178 million units, followed by Shanghai with 1.2246 million units, and Shaanxi with 1.198 million units.
04 ★★★ 【2024 Automobile Production by Province and City Released】
According to the National Bureau of Statistics, in December 2024, China's automobile production reached 3.499 million units, up 15.2% YoY. From January to December, automobile production totaled 31.559 million units, up 4.8% YoY. By province, Guangdong ranked first with 5.7074 million units, followed by Anhui with 2.6203 million units, and Chongqing with 2.5401 million units.
05 ★★★ 【2024 Crude Steel Production by Province and City Released】
According to the National Bureau of Statistics, in December 2024, China's crude steel production reached 75.969 million mt, up 11.8% YoY. From January to December, crude steel production totaled 1.0051 billion mt, down 1.7% YoY. By province and city, Hebei ranked first with 199.8576 million mt, followed by Jiangsu with 119.1786 million mt, and Shandong with 72.728 million mt.
06 ★★ 【Lianyuan Steel Achieved a Breakthrough in High Steel Scrap Ratio for Automotive Hot-Formed Steel Production】
Recently, Lianyuan Steel made significant technological progress in the production of automotive hot-formed steel, successfully completing continuous casting of 10 heats with a steel scrap ratio exceeding 44%. This achievement highlights Lianyuan Steel's innovative capabilities in long-process low-carbon smelting technology, setting a new benchmark for green and low-carbon production in China's steel industry.
★Other Hot Topics★
⭕【Hangzhou's Second Land Auction in 2025 Generated 2.66 Billion Yuan】On January 21, Hangzhou held its second land auction of 2025, offering three residential plots with a total construction area of 159,200 m² and a total starting price of 2.3 billion yuan. Ultimately, the three plots generated approximately 2.66 billion yuan, with an average premium rate of 15.7%. Among them, the Xiaoshan Century Linping Old Town plot was acquired by Gemdale for 186 million yuan, with a premium rate of 31%; the Yuhang West Station plot was taken by China Resources for 1.526 billion yuan, with a premium rate of 25.5%; and the Fuyang Lushan plot was acquired by local developer Shanshui Real Estate at the base price of 950 million yuan.
⭕【HBIS Handan New District Customizes Thick-Specification Wheel Steel】Recently, the thin plate plant of HBIS Handan New District successfully produced and delivered 700 mt of 13.75 mm thick-specification wheel steel HZ380CL for a wheel manufacturer in Shandong. The product exhibited excellent coil shape and surface quality, with all performance indicators fully meeting customer requirements. Wheel steel is one of the main profit-generating products of the thin plate plant, with the HZ380CL grade being stably supplied to markets in Hebei, Shandong, and surrounding areas. To further expand its market share in high-end wheel steel, HBIS has re-evaluated the market and customers, organized micro-teams to enhance market research, closely engaged with customers, understood product usage, explored potential customer needs, and fully promoted the development of new wheel steel products and specification expansion.
⭕【Top 10 Raw Coal Producers in 2024 Announced】Raw coal production growth accelerated. According to the National Bureau of Statistics, in 2024, large-scale enterprises produced 4.76 billion mt of raw coal, up 1.3% YoY. In December, raw coal production reached 440 million mt, up 4.2% YoY. Coal imports in 2024 totaled 540 million mt, up 14.4% YoY.
