According to the China National Light Industry Council, in 2025, the retail sales of 11 categories of light industrial goods totaled 8,671.9 billion yuan, up 7.8% YoY. Among them, the retail sales of household appliances and audio-video equipment were up 11% YoY.

Data released by the National Bureau of Statistics (NBS) on the 16th showed that in May, the trade-in policy for consumer goods continued to show results, with retail sales of household appliances and audio-visual equipment, communication equipment, cultural and office supplies, and furniture by units above designated size increasing by 53.0%, 33.0%, 30.5%, and 25.6%, respectively.

Since Q2, the issuance of local government bonds has significantly accelerated. A review of the Special Bond Information Network by reporters revealed that as of June 12, local government bond issuance this year had exceeded 4 trillion yuan, with newly added special bonds accounting for nearly 40%. Experts stated that fiscal policy will remain one of the key supports for economic resilience in Q2, and the issuance of local government bonds is expected to further increase, driving steady growth in infrastructure investment throughout the year. This year, there has been a notable increase in the issuance scale of new bonds allocated to major projects through local government bonds, primarily in the form of newly added special bonds. Data shows that among the 4,483.4 billion yuan of local government bonds issued so far, 1,645.7 billion yuan are newly added local government bonds, and 359.6 billion yuan are newly added general bonds.

[SMM Steel Morning Meeting Summary] Last week, rebar prices fluctuated rangebound, with the current nationwide average price at 3,087 yuan/mt, down 10 yuan/mt MoM. On the supply side, blast furnace steel mills are still in a profitable phase. In June, some steel mills adjusted their production structures, shifting towards increasing production of high-quality special steel and strip steel varieties, with expectations of further reductions in construction materials. Steel scrap prices have remained firm, exacerbating losses on production at EAF steel mills. This week, individual steel mills have halted operations, and several others have reduced their operating hours, resulting in operating rates significantly lower than the same period last year...

The US Department of Commerce announced that it would impose additional tariff on a variety of steel household appliances, including dishwashers, washing machines, and refrigerators, among other "steel derivatives". This move will affect the 50% tariff set by most countries, potentially leading to an increase in consumer prices and drawing close attention from industry stakeholders. In addition, sources revealed that the US plans to list rare earths under the Defense Production Act, but the timetable for Trump's rare earths plan remains unclear.

This week, the ferrous metals series first rose and then fell, with an overall downward trend. At the beginning of the week, the China-US talks sent optimistic signals, improving market sentiment and driving up the futures market. However, mid-week, the fundamental factors of steel turned weak, coupled with fading sentiment, causing the futures market to decline. As the weekend approached, the US announced that it would impose a tariff hike on steel home appliances starting from the 23rd, leading to a significant drop in the futures market, except for coking coal and coke. In the spot market, the futures market rose in the first half of the week, leading to a phased improvement in market transactions. However, most transactions were driven by rigid demand for low-priced purchases, and seasonal characteristics began to emerge...

[SMM Daily Coke Market Briefing] In terms of supply, the national environmental protection checks team has been stationed in provinces such as Shanxi and Inner Mongolia, with environmental protection checks becoming stricter. Some coke enterprises have implemented phased production cuts, and some have slightly reduced production due to losses and inventory accumulation, leading to a tightening of coke supply. Demand side, the off-season in the market has led to a decrease in demand for finished steel products. Additionally, steel mills' coke inventory is at a medium-to-high level, lacking restocking demand. Some steel mills with high coke inventory are even controlling the arrival of goods. In terms of news, the US Department of Commerce announced that it will impose additional tariffs on a variety of steel household appliances starting from June 23, including "steel derivatives" such as dishwashers, washing machines, and refrigerators. In summary, downstream demand has weakened, coke supply is relatively loose, and there is an expectation of weakening cost support. Next week, there is an expectation of a fourth round of coke price cuts.

SMM data shows that the most-traded SS contract declined this week. As of 10:30 on June 13, the SS2508 contract was quoted at 12,540 yuan/mt, down 160 yuan/mt WoW. Macro front, on June 11, China and the US held the second round of economic and trade consultations in London, reaching a framework agreement in principle and broadening the scope for future cooperation. This alleviated market concerns about escalating trade frictions and injected positive sentiment into the stainless steel futures market in the short term. The US CPI rose 2.4% YoY in May, below the expected 2.5%, raising expectations for US Fed interest rate cuts within the year. The US dollar index came under pressure, providing support for nickel, stainless steel, and other commodity prices. During the week, the National Development and Reform Commission (NDRC) proposed establishing new-type policy-based financial instruments to facilitate the implementation of major engineering projects in people's livelihoods, which is expected to drive effective investment exceeding 6 trillion yuan and stimulate demand and application for stainless steel in infrastructure and other sectors. However, on June 12, the US Department of Commerce announced new tariffs on common household appliances made of steel components, such as washing machines and dishwashers, limiting the export consumption of downstream stainless steel products and exerting a negative impact on the market. Fundamentally, under the influence of the traditional consumption off-season, the stainless steel market has gradually shown signs of weak demand, with upstream stainless steel mills, agents, and traders generally facing increased pressure to ship goods. Driven by losses, stainless steel mills implemented price-capping strategies for downstream selling prices. Despite successive price reductions in the early stage, transaction volumes failed to improve. During the week, due to high finished product inventories, steel mills temporarily canceled the price-capping policy, leading to a rapid decline in stainless steel prices. Although the price-capping policy was subsequently reinstated, stainless steel quotes remained at low levels. Overall, the mismatch between weak stainless steel market consumption and relatively high steel production has intensified. Although the SS futures market hit a new five-year low during the week, the lack of upward rebound momentum amid market pessimism means that the SS futures market will continue to fluctuate at lows.

[SMM Morning Meeting Summary: Uncertainty in Sino-US Trade Relations Restrains Copper Price Uptrend] On June 12, spot prices of #1 copper cathode against the 2506 contract for the current month were quoted at a premium of 40-150 yuan/mt, with an average quoted premium of 95 yuan/mt, unchanged MoM. Copper prices fell today, and downstream procurement sentiment improved, but currently, downstream players under the backwardation structure are more inclined to make purchases after the contract rollover...

A CCTV reporter learned on June 12 local time that the US Department of Commerce announced it would impose additional tariff on a variety of steel household appliances, including "steel derivatives" such as dishwashers, washing machines, and refrigerators, starting from June 23. It is reported that the 50% tariff set for most countries will affect the import of these steel products, potentially leading to a rise in consumer prices. Industry stakeholders are closely monitoring the developments.