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Macro
01 ★★★
NDRC Director Zheng Shanjie: Vigorously Boost Consumption and Expand Effective Investment
Zheng Shanjie, Director of the National Development and Reform Commission (NDRC), published an article in the journal "Study and Research," stating the need to actively expand effective domestic demand. On one hand, efforts should be made to vigorously boost consumption by implementing special actions to stimulate consumption, innovating diversified consumption scenarios, expanding service consumption, and promoting the development of the cultural and tourism industries. The focus should also be on developing the debut economy, ice and snow economy, and silver economy, while strengthening the construction of consumption infrastructure such as parking lots, charging piles, and public sports facilities, and enhancing consumer rights protection. On the other hand, effective investment should be expanded by coordinating the use of various construction funds, including central budgetary investment, ultra-long-term special government bonds, and new local government special bonds, to quickly generate more tangible work volume. Government investment should effectively drive social investment, continuously promoting the introduction of major projects with private capital.
02 ★★
Li Qiang Presides Over the Seventh Plenary Meeting of the State Council to Discuss the Draft Government Work Report and Mobilize for the Start of the Year
On February 5, Premier Li Qiang presided over the seventh plenary meeting of the State Council to discuss the draft government work report to be submitted for review at the third session of the 14th National People's Congress and to mobilize efforts for the start of the year. Li Qiang emphasized that reporting to the National People's Congress is a statutory duty of the State Council and a way to subject government work to public scrutiny. A high-quality government work report is crucial for building consensus, boosting confidence, and driving development. The report should fully reflect the important instructions of General Secretary Xi Jinping, the decisions and deployments of the Central Committee, the expectations of the public, and the needs for promoting high-quality development. It should be further refined. Li Qiang pointed out that in the face of new situations and tasks in the new year, the Central Committee's major policies and strategic deployments are already clear. Implementation should be systematic and innovative, balancing domestic and international, short-term and long-term, macro and micro, development and security, and finding effective paths among multiple objectives. Breakthroughs should be sought in areas with high potential and ample space for development, with strong and impactful initiatives planned to create more highlights that can drive overall progress. Good practices explored in work should be summarized and expanded, development goals should be targeted, counter-cyclical adjustments should be intensified as needed, resources should be integrated to address key issues, and unconventional, tangible, and accessible policy measures should be introduced. Concerns should be addressed promptly, and interaction between policies and the market should be strengthened. Li Qiang stressed the need for stronger commitment and more proactive actions to achieve new results in high-quality development. Confidence should be firm, challenges should be faced head-on, and external changes should be viewed objectively and dialectically. Domestic economic issues and external challenges should be addressed in a coordinated manner, turning pressure into motivation. Strong measures should be taken to achieve breakthroughs in key areas such as strengthening the domestic economic cycle, promoting technological innovation, and upgrading industries. Long-term efforts should focus on creating new advantages for China's development. Efforts should be vigorous and effective, with a sense of urgency to implement tasks, solve problems with innovative approaches, and adapt scientifically. Work should be focused on achieving clear, assessable goals, implementing specific, actionable measures, and ensuring timely support measures. More energy should be devoted to implementation and practical matters, with policies and measures continuously optimized during execution. Unity and collaboration should be emphasized to further enhance market awareness, legal awareness, and service awareness. A first-class business environment should be created with higher standards and greater efforts, providing better conditions for enterprises to innovate and develop, and more opportunities for talents to pursue their careers. The wisdom and strength of the entire society should be mobilized. Members of the State Council attended the meeting, and heads of relevant departments and units were present.
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Industry and Downstream★
01 ★★★
SMM Pig Iron: Pig Iron Production Increased by 15,000 mt Compared to Pre-Holiday Levels, Slight Pullback Expected Next Week
According to an SMM survey, as of February 5, the blast furnace operating rate of 242 surveyed steel mills was 85.97%, up 0.37 percentage points WoW. The blast furnace capacity utilization rate was 88.44%, up 0.59 percentage points WoW. The daily pig iron production of the sampled steel mills was 2.3791 million mt, up 15,000 mt WoW.
02★★★
[SMM HRC Arrivals] Steel Mills Maintain High Shipping Enthusiasm, Mainstream Regions See High Arrival Levels
SMM Steel reported on February 5 that the estimated total shipment volume to mainstream markets this week was 366,000 mt, up 35,900 mt WoW.
Shanghai Market:Before and after the Chinese New Year, shipments in the Shanghai market increased WoW. Specifically, shipments from mainstream steel mills in north-east China were concentrated, with a significant rise in shipment levels, while resources from south and north China showed minor fluctuations. Looking ahead, with post-holiday resumption of work and production, downstream demand is expected to gradually recover. At present, steel mill orders and profitability remain moderate, and production and shipping enthusiasm is high. It is expected that HRC arrivals in the Shanghai market will remain at a high level in the short term.
Lecong Market: Before and after the Chinese New Year, shipments to Lecong increased WoW. Specifically, resources from north China remained stable with no significant increase, while mainstream local resources in south China saw increased shipments. Steel mills maintained strong shipping enthusiasm, leading to a slight increase in overall arrival levels. Looking ahead, steel mills are expected to maintain high shipping enthusiasm in the short term, and shipments to the Lecong market are likely to remain at high levels compared to the same period in previous years.
03★★★
Steel Inventory Rapidly Accumulated During the Holiday, Inventory Levels Below the Same Period in Previous Years
Construction Steel Social Inventory
[Wuhan Construction Steel]As of February 5, Wuhan's construction steel social inventory was 155,000 mt, up 24,000 mt WoW, an increase of 18.32%, with a slightly slower growth rate.
[Hangzhou Construction Steel] During the Chinese New Year, Hangzhou's inventory continued to increase. As of February 5, the inventory reached 823,000 mt, up 142,000 mt WoW, an increase of 20.85%.
[Xi'an Construction Steel]As of February 5, Xi'an's total construction steel inventory was 672,000 mt, up 90,000 mt WoW, an increase of 15.46%.
[Guiyang Construction Steel]As of February 5, Guiyang's total construction steel inventory was 86,400 mt, up 29,300 mt WoW, an increase of 551.36%. Among this, rebar inventory was 58,700 mt, up 23,500 mt WoW, and wire rod inventory was 27,700 mt, up 5,800 mt WoW.
HRC Social Inventory
[Lecong HRC]This week, Lecong's HRC inventory was 880,000 mt, up 229,000 mt compared to pre-holiday levels, an increase of 26.02%. YoY (lunar calendar), it decreased by 9,400 mt, a YoY decline of 1.07%.
[Shanghai HRC]This week, Shanghai's HRC inventory was 451,000 mt, up 48,000 mt compared to pre-holiday levels, an increase of 11.91%. YoY (solar calendar), it increased by 1.81%, while YoY (lunar calendar), it decreased by 19.18%.
[Zhangjiagang HRC]This week, Zhangjiagang's HRC inventory was 451,000 mt, up 48,000 mt compared to pre-holiday levels, an increase of 11.91%. YoY (solar calendar), it increased by 1.81%, while YoY (lunar calendar), it decreased by 19.18%.
★Other Hot Topics★
⭕[Dalian Plans to Adjust and Optimize Personal Housing Provident Fund Loan Policies]According to "Dalian Release" on February 5, to further leverage the role of the housing provident fund in supporting rigid and improved housing demand, the Dalian Provident Fund Center has drafted the "Notice on Adjusting and Optimizing Personal Housing Provident Fund Loan Policies (Draft for Public Comment)" and is soliciting public opinions. Dalian plans to adjust the minimum down payment ratio for personal housing provident fund loans, setting it at 20% for first and second home loans. Additionally, Dalian plans to increase the maximum loan amount for master's degree holders, raise the maximum loan amount for multi-child families, and support the purchase of newly built commercial housing that meets green building standards.
⭕[Chongqing Party Secretary Yuan Jiajun: Fully Promote Stabilization and Recovery of the Real Estate and Construction Industries]On the morning of February 5, the Chongqing Municipal Party Committee held the "First Meeting of the New Year," attended by Party Secretary Yuan Jiajun, who delivered a speech. Yuan emphasized the need to achieve breakthrough progress in building a high-quality development pilot zone in western China, continuously strengthen the "33618" modern manufacturing cluster system, and promote deep integration of technological and industrial innovation, advanced manufacturing and modern services, and the digital and real economies. He called for the implementation of the "AI+" initiative to drive the integration of "four chains" and coordination of "four sides," fully promoting the stabilization and recovery of the real estate and construction industries, accelerating the formation of modern service industry clusters, expanding the influence and attractiveness of international consumption center cities, advancing the development of a strong cultural and tourism city, and building a western financial center. Efforts should aim to achieve a new position in national high-quality development.
⭕[Shanghai Baoshan Signs 36 Key Projects in the First Batch of the Year, Total Investment Exceeds 30 Billion Yuan]On the first working day of the new year, the 2025 Baoshan District Business Environment Optimization and Investment Promotion Conference was held as scheduled. At the conference, 36 key projects in the first batch of the year, with a total investment exceeding 30 billion yuan, were signed and implemented, and major projects with a total investment of nearly 100 billion yuan were launched. This year, Baoshan District aims to enhance the experience of enterprises by proposing to create a "industry-adaptive" business environment. Specifically, efforts will focus on extending and deepening the standardized administrative environment, precisely mapping industrial blueprints around leading industries and sub-sectors, identifying intrinsic needs, and allocating resources to establish a business service chain that matches the demands of the industrial value chain. A "one-stop" service system for investment attraction, project implementation, and sustained operations will be built. "From solving problems after the fact to preventing them beforehand, administrative services will be more precisely aligned with industrial needs, allowing more business entities to avoid detours," explained a relevant official.
