This week, ferrous metals fluctuated at highs, with raw material ore and coking products outperforming steel. Against the backdrop of the escalating conflict in the Middle East, ore and coking products held up well, supported by higher shipping costs and transmission from coal and coke as energy substitutes. In the second half of the week, supply and demand data for hot-rolled coil and rebar were released. The increase in rebar inventory slowed markedly; however, hot-rolled coil demand was lower than the same period last year, and the pace of post-holiday recovery was relatively slow, leaving steel as a whole with limited upward momentum, while futures retreated after rapid rise. In the spot market, trading in the Chinese market was average this week.....

[SMM Analysis] Freight Rates Surge, Making Deals Difficult for Steel Expor ters Affected by the US-Iran conflict, tight energy supply and sharply higher fuel costs, compounded by exchange rate fluctuations, have continuously pushed up China's export offers in recent days. Compared with the beginning of the month (March 6), SMM HRC prices have been raised by $9/mt; galvanizing prices rose by $11/mt; CRC rose by $5/mt; billet rose by $6/mt; and rebar rose by $6/mt. However, looking back at market transaction performance, deals weakened again recently. According to the SMM survey, ocean freight rates surged sharply, with current freight to the Middle East as high as $50-60. Most outside China clients remained on the sidelines; shipowners also refused to commit tonnage while waiting for the market to stabilize. For China exporters, there were offers but no market, making shipments difficult. Meanwhile, market sources said Hadeed, the GCC's only flat steel producer, raised its May hot-rolled coil (HRC) prices, still related to shipping restrictions in the Strait of Hormuz. HRC cargoes previously booked from China and other origins were also being redirected to the west coast, mainly heading to Jeddah Port, bringing high inland transportation costs. As for global steel prices, in India, in addition to rising raw material costs and rupee depreciation, a sudden LNG energy shortage further pushed up production costs, forcing steel mills to maintain a strong willingness to hold prices firm despite the traditional domestic off-season and blocked exports. In the Southeast Asian market, price increases were accepted entirely passively, mainly due to the rigid pass-through of high ocean freight rates by overseas suppliers. Although Southeast Asian buyers hesitated to take orders, they had no choice but to passively accept the increases against the backdrop of persistently high geopolitical logistics costs. At the same time, CIS export offers also rose significantly, benefiting from the intensifying geopolitical conflict in the Middle East and the resulting short-term global supply tightens. In the Middle East market, meanwhile, as war tensions continued to escalate, the closure of the Strait of Hormuz completely disrupted transportation, while freight rates and delivery uncertainty pushed the sheets & plates import markets in the UAE and Saudi Arabia into a complete standstill. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. The copyright, trademark rights, domain name rights, commercial data information property rights, and other related intellectual property rights of all content contained in this report (including but not limited to information, articles, data, charts, pictures, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, etc.) are owned or held by SMM or its related right holders. The above rights are strictly protected by relevant laws and regulations of the People's Republic of China, such as the Copyright Law of the People's Republic of China, the Trademark Law of the People's Republic of China, and the Anti-Unfair Competition Law of the People's Republic of China, as well as applicable international treaties. Without prior written authorization from SMM, no institution or individual may: 1. Use all or part of this report in any form (including but not limited to reprinting, modifying, selling, transferring, displaying, translating, compiling, disseminating); 2. Disclose the content of this report to any third party; 3. License or authorize any third party to use the content of this report; 4. For any unauthorized use, SMM will legally pursue the legal responsibilities of the infringer, demanding that they bear legal responsibilities including but not limited to contractual breach liability, returning unjust enrichment, and compensating for direct and indirect economic losses. Data Source Statement: (Except for publicly available information, other data in this report are derived from publicly available information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, data from the National Bureau of Statistics, customs import and export data, various data published by major associations and institutions, etc.), market exchanges, and comprehensive analysis and reasonable inferences made by the research team based on SMM's internal database models. This information is for reference only and does not constitute decision-making advice. SMM reserves the final interpretation right of the terms in this statement and the right to adjust and modify the content of the statement according to actual circumstances.

On February 18, 2025, the National Development and Reform Commission (NDRC) of Cangzhou officially released the "Cangzhou Hydrogen Subsidy Management Measures (Trial)" (hereinafter referred to as the "Measures"), aiming to promote the development of the hydrogen energy industry, facilitate the construction of hydrogen refueling stations, and ensure the healthy development of the hydrogen market. This policy not only provides direct subsidy support for hydrogen refueling stations but also encourages the reduction of hydrogen selling prices through a price incentive mechanism, offering strong support for the popularization and commercialization of hydrogen energy. This article provides a detailed interpretation of this policy. I. Policy Background and Objectives With the acceleration of global energy transition and the rapid development of the hydrogen energy industry, Cangzhou, as one of the important energy bases in northern China, has actively responded to the national call to vigorously develop the hydrogen energy industry. However, the development of the hydrogen energy industry faces challenges such as high costs and low market acceptance, which hinder its large-scale and commercial application. To address these challenges, the Cangzhou government introduced the "Measures" to reduce the operating costs of hydrogen refueling stations through financial subsidies, rationalize hydrogen market prices, and promote the rapid development of the hydrogen energy industry. II. Subsidy Targets and Conditions The "Measures" specify that the subsidy targets are fixed or skid-mounted hydrogen refueling stations providing hydrogen refueling services within the administrative region of Cangzhou, with a hydrogen market selling price not exceeding 25 yuan per kilogram. This provision ensures the precise allocation of subsidies while avoiding excessive market price fluctuations. Additionally, the hydrogen selling price and refueling volume are verified based on invoices, ensuring fairness and transparency in subsidy distribution. III. Subsidy Standards and Methods According to the "Measures," for eligible hydrogen refueling stations with a hydrogen selling price not exceeding 25 yuan per kilogram, a subsidy of 3 yuan per kilogram will be provided. Furthermore, for every 1 yuan per kilogram reduction in the hydrogen selling price, an additional subsidy of 0.5 yuan per kilogram will be granted. This subsidy policy not only directly reduces the operating costs of hydrogen refueling stations but also encourages them to lower hydrogen selling prices through a price incentive mechanism, enhancing market competitiveness. Subsidies are settled quarterly based on invoice dates, ensuring timely and effective subsidy distribution. IV. Subsidy Duration and Cap The "Measures" stipulate that the subsidy duration is from 2025 to 2027, with a total subsidy cap of 50 million yuan. Among this, the subsidy cap for 2025 is 20 million yuan, for 2026 is 20 million yuan, and for 2027 is 10 million yuan. This provision ensures the continuity and stability of the subsidy policy while avoiding excessive investment and waste of subsidy funds. V. Policy Significance and Impact The introduction of the "Measures" holds significant importance for promoting the development of the hydrogen energy industry in Cangzhou. On one hand, financial subsidies reduce the operating costs of hydrogen refueling stations, enhancing their profitability and attracting more social capital to invest in the hydrogen energy industry. On the other hand, the price incentive mechanism encourages hydrogen refueling stations to lower hydrogen selling prices, improving market acceptance and competitiveness, thereby facilitating the large-scale and commercial application of hydrogen energy. Additionally, the implementation of this policy contributes to the collaborative development of the hydrogen energy industry chain and promotes the deep integration of the hydrogen energy industry with NEVs and the energy internet. VI. Conclusion In summary, the introduction of the "Cangzhou Hydrogen Subsidy Management Measures (Trial)" is a strong initiative by the Cangzhou government to actively respond to the national call and promote the development of the hydrogen energy industry. By combining financial subsidies with a price incentive mechanism, this policy reduces the operating costs of hydrogen refueling stations, enhances market competitiveness, and provides strong support for the popularization and commercialization of hydrogen energy. In the future, with the in-depth implementation of the policy and the continuous development of the hydrogen energy industry, Cangzhou is expected to become one of the key hydrogen energy industry bases in China, making a positive contribution to energy transition and sustainable development.

In 2025, Yingkou City is expected to thoroughly implement the important speeches and instructions of General Secretary Xi Jinping on the comprehensive revitalization of northeast China and Liaoning Province, fully implement the spirit of the Central Economic Work Conference and the Provincial Economic Work Conference, and formulate a series of policies and measures to stabilize growth and improve people's livelihood. These measures aim to enhance the supply of growth-stabilizing policies, continuously consolidate the trend of steady economic improvement and quality enhancement, and promote the successful conclusion of the 14th Five-Year Plan and a new breakthrough in the comprehensive revitalization of Yingkou. Below is a detailed interpretation of these policies and measures. I. Industrial Projects and Industrial Upgrading Strengthening Support for Industrial Projects Measures : For newly constructed industrial projects with a verified total investment of 5 million yuan or more, direct subsidies will be provided at a rate not exceeding 10% of the project construction investment, or interest subsidies will be granted based on the one-year Loan Prime Rate (LPR) published by the People's Bank of China during the same period. Interpretation : This measure aims to encourage enterprises to increase investment, promote the rapid development of industrial projects, and enhance the overall competitiveness of Yingkou's industrial sector. Supporting the Development of Specialized Industrial Design Institutions Measures : A one-time reward of up to 250,000 yuan will be granted to units recognized as provincial-level industrial design demonstration enterprises (institutions), and a one-time reward of up to 500,000 yuan will be granted to units recognized as national industrial design research institutes. Interpretation : Through a reward mechanism, this measure aims to promote the development of industrial design institutions, improve product design quality and market competitiveness, and thereby facilitate industrial upgrading. Supporting the Development of Testing and Detection Institutions Measures : Efforts will be made to enhance the technical capabilities of testing and detection institutions, support their deepened cooperation with internationally renowned organizations, and guide traditional laboratories in digital and intelligent transformation. Rewards will be provided to testing and detection institutions newly accredited with qualifications. Interpretation : This measure aims to enhance the overall strength of testing and detection institutions and promote high-quality industrial development. II. E-Commerce and Logistics Development Enhancing E-Commerce Supply Chain Levels Measures : Efforts will focus on strengthening the construction of e-commerce supply chain service systems, encouraging the organization of e-commerce live-streaming supply chain matchmaking events, and providing financial support to event organizers. The development of full-supply-chain managed logistics services will also be promoted. Interpretation : By enhancing e-commerce supply chain levels and strengthening the development of new sales models such as e-commerce live-streaming, this measure aims to promote the prosperity of the consumer market. Vigorously Developing Multimodal Transport Measures : Enterprises will be encouraged to apply for high-quality development pilot projects in multimodal transport, modernize port collection and distribution systems, and accelerate the construction of the Bayuquan port cargo pick-up expressway. Interpretation : By developing multimodal transport, this measure aims to optimize the logistics system, improve transportation efficiency, reduce logistics costs, and promote further optimization and upgrading of the logistics industry. III. Hydrogen Energy Industry and Green Development Accelerating the Construction of the "Shenyang-Dalian Hydrogen Energy Expressway Corridor" Measures : Leveraging Yingkou's advantages in ports, resources, and location, research on the city's hydrogen energy industry development will be conducted to accelerate integration into the "Shenyang-Dalian Hydrogen Energy Expressway Corridor." Construction subsidies will be provided for newly built or renovated commercial hydrogen refueling stations with a refueling capacity of 500 kilograms or more. Interpretation : This measure aims to promote the development of the hydrogen energy industry, facilitate the use of clean energy, reduce carbon emissions, and achieve green development. IV. Consumption and Livelihood Improvement Promoting Recovery and Revitalization in the Consumption Sector Measures : Support will be provided for consumption promotion activities, including the issuance of subsidies for bulk consumption and dining consumption. Efforts will also focus on creating new consumption scenarios and supporting the issuance of consumption vouchers in the commercial circulation sector. Interpretation : By issuing consumption subsidies and creating new consumption scenarios, this measure aims to stimulate consumer purchasing intentions and promote the recovery and revitalization of the consumer market. Promoting High-Quality Implementation of "Two Major" Policies Measures : Efforts will be made to closely monitor national policy trends and funding directions, strive to secure various types of higher-level funding, strengthen land use guarantees for "Two Major" projects, and optimize approval procedures. Interpretation : By securing higher-level funding and optimizing approval procedures, this measure aims to promote the construction of key projects, thereby facilitating stable economic growth and improving people's livelihoods. V. Financial and Employment Support Strengthening Financial Credit Support for Enterprises Measures : Efforts will be made to increase the issuance of inclusive small and micro loans, encourage financial institutions in Yingkou to innovate products and services, and provide financial support services for transportation enterprises' vehicles. Interpretation : By strengthening financial credit support, this measure aims to alleviate the difficulties and high costs of financing for enterprises, promoting their healthy development. Making Every Effort to Stabilize Employment Measures : Efforts will be made to enhance support for employment and entrepreneurship and improve vocational skills. Interpretation : By implementing employment stabilization policies, this measure aims to improve workers' employability and entrepreneurial intentions, promoting a stable and prosperous job market. VI. Summary and Outlook The policies and measures of Yingkou City to stabilize growth and improve people's livelihood cover various areas, including industrial projects, e-commerce logistics, hydrogen energy industry, consumption and livelihood, and financial and employment support. These measures aim to promote stable economic growth and continuous improvement in people's livelihoods. Their implementation is expected to enhance Yingkou's industrial competitiveness, optimize the logistics system, promote clean energy development, stimulate consumer market vitality, alleviate enterprise financing difficulties, and stabilize the job market. In the future, with the in-depth implementation and continuous improvement of these policies, Yingkou City is expected to achieve higher-quality and more sustainable development.

[SMM Analysis: Lithium Battery Policy Interpretation] Major Policy Adjustment in the Lithium Battery Industry at the Beginning of the Year - "Catalogue of Technologies Prohibited and Restricted from Export in China

[SMM Analysis] On February 9, 2025, the National Development and Reform Commission (NDRC) and the National Energy Administration jointly issued the "Notice on Deepening the Market-oriented Reform of New Energy Feed-in Tariffs to Promote High-quality Development of New Energy" (NDRC Price [2025] No. 136, hereinafter referred to as "Circular No. 136"). The notice clearly stipulates the cancellation of the mandatory energy storage policy for new energy projects, marking the exit of the administrative energy storage mechanism, which has been in place for nearly eight years, from the historical stage. This policy aims to address industry pain points such as inefficient resource allocation, sharp increase in cost pressures for new energy enterprises, and the phenomenon of energy storage being "built but not used," and to promote the transition of energy storage from "policy-driven" to "economy-driven."