[SMM Steel Market Morning News: National Development and Reform Commission (NDRC): Special Funds Will Continue to Be Allocated in 2025 to Support the Recycling and Processing of Used Household Appliances, Promoting Healthy Industry Development] Liu Dechun, Director of the Department of Resource Conservation and Environmental Protection of the NDRC, stated at the State Council's routine policy briefing that efforts will focus on strengthening the recycling and utilization of waste in key areas. Supporting documents for the management measures of special funds for the treatment of waste electrical and electronic products will be introduced, and special funds will continue to be allocated in 2025 to support the recycling and processing of used household appliances, promoting the healthy development of the industry.
★ Macro ★
01 ★★★ 【NDRC: Special Funds Will Continue to Be Allocated in 2025 to Support Recycling and Processing of Used Household Appliances, Promoting Healthy Industry Development】
Liu Dechun, Director of the Department of Resource Conservation and Environmental Protection of the National Development and Reform Commission (NDRC), stated at the State Council's regular policy briefing that efforts will focus on strengthening waste recycling in key areas. Supporting documents for the management measures of special funds for the treatment of waste electrical and electronic products will be introduced. Special funds will continue to be allocated in 2025 to support the recycling and processing of used household appliances, promoting healthy industry development. A work plan for the recycling of used mobile phones will be expedited, promoting trade-in programs for mobile phones and other digital products. The recycling and reuse of retired power batteries will be supported to enhance the security of critical resources.
02 ★★★ 【MOFCOM: Implementation Details for Trade-In Policies in Five Sectors Including Automobiles and Household Appliances Will Be Released Soon】
Li Gang, Director of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce (MOFCOM), stated at the State Council's regular policy briefing that the notice on expanding the implementation of the "program of large-scale equipment upgrades and consumer goods trade-ins" in 2025 has been issued. MOFCOM will focus on ensuring the effective implementation of trade-in policies for consumer goods. First, detailed measures will be introduced to ensure the policies are practical and implementable. MOFCOM will work with relevant departments to release implementation details for five sectors, including automobiles, household appliances, home improvement kitchen and bathroom products, electric bicycles, and mobile phones, specifying subsidy standards and operational procedures. Coordination with 2024 policies will also be considered to ensure a smooth transition. Second, the work mechanism will be improved to make the policies more convenient and efficient. Based on the experience of the 2024 trade-in program, the subsidy application review and fund disbursement processes will be further optimized, and the functionality of related information platforms will be enhanced to improve data verification efficiency, ensuring subsidy funds reach consumers more quickly and conveniently. Third, publicity and interpretation will be strengthened to increase policy awareness and coverage.
03 ★★★ 【SAMR: Accelerating the Development of Key National Standards for 2025 to Support the "Two New" Program】
Liu Hongsheng, Director of the Standards and Technology Management Department of the State Administration for Market Regulation (SAMR), stated at the State Council's regular policy briefing that the next step will involve accelerating the development of key national standards for 2025 in collaboration with relevant State Council departments. Standards will be released as soon as they are ready, with efforts made to expedite the process where possible while ensuring quality. Additionally, the implementation and supervision of standards will be strengthened, and the coordination and support of policy standards will be enhanced to ensure greater success in the "Two New" program.
04 ★★ 【PBOC: Further Optimizing Relending Processes and Expanding Equipment Upgrade Loan Scale】
Peng Lifeng, Director of the Credit Market Department of the People's Bank of China (PBOC), stated at the State Council's regular policy briefing that the next step will involve thoroughly implementing the decisions of the Central Economic Work Conference. In collaboration with relevant departments, the PBOC will continue to provide financial support for large-scale equipment upgrades, enhance the cross-departmental work mechanism, strengthen coordination with fiscal policies, further optimize relending processes, support banks in improving service efficiency, expand the scale of equipment upgrade loans, reduce corporate financing costs, and stimulate demand for equipment upgrades among business entities.
05 ★★ 【MOF: Central Government Has Pre-Allocated 81 Billion Yuan for 2025 Trade-In Policies to Ensure Policy Continuity】
Fu Jinling, Director of the Department of Economic Construction of the Ministry of Finance (MOF), stated at the State Council's regular policy briefing that, as of the end of 2024, based on approved amounts, the central government had allocated 150 billion yuan for trade-in policies for consumer goods, which has been nearly fully utilized. Some local governments, after exhausting central funds, proactively allocated additional local funds to ensure uninterrupted policy support. Additionally, 150 billion yuan for large-scale equipment upgrades was allocated to local governments based on project-based distribution, with all funds assigned to specific projects. For trade-in funds for consumer goods, the MOF will work with the NDRC to adjust allocations based on the performance of 2024 policies and fund execution, favoring regions with better results. Recently, the central government pre-allocated 81 billion yuan for 2025 trade-in policies to ensure policy continuity across regions.
06 ★★ 【MOFCOM: Over 36 Million Consumers Purchased Over 56 Million Units of Eight Categories of Household Appliances in 2024, Driving Sales of 240 Billion Yuan】
Li Gang, Director of the Department of Market Operation and Consumption Promotion of MOFCOM, stated at the State Council's regular policy briefing that, in 2024, over 2.9 million vehicles were scrapped and renewed, and over 3.7 million vehicles were replaced, driving automobile sales of over 920 billion yuan. Over 36 million consumers purchased over 56 million units of eight categories of household appliances, driving sales of 240 billion yuan. The "renewal" of kitchen and bathroom products drove sales of nearly 60 million items, with sales reaching approximately 120 billion yuan. Trade-in programs for electric bicycles resulted in over 1.38 million units being replaced, driving new vehicle sales of over 3.7 billion yuan.
07 ★★ 【Two Departments: Direct Allocation of Ultra-Long-Term Special Treasury Bonds to Support Trade-In Policies for Consumer Goods】
The NDRC and MOF issued a notice on expanding the implementation of large-scale equipment upgrades and trade-in policies for consumer goods in 2025. The notice proposed optimizing the allocation of trade-in funds for consumer goods. Ultra-long-term special treasury bonds will continue to be directly allocated to local governments to support trade-in policies for consumer goods. The NDRC, in consultation with the MOF, will determine the scale of support funds for each region based on factors such as permanent population, regional GDP, automobile and household appliance ownership, and the performance of 2024 policies and fund execution. Allocation will favor regions with better results. Regions should focus on key areas, prioritize trade-in programs for durable consumer goods, explore the linkage between subsidy policies and financial support, and maximize the leverage effect of policy funds to promote the integration of high-quality durable consumer goods into residents' lives.
08 ★★ 【Two Departments: Expanding the Scope of Subsidies for Scrapping and Renewing Old Commercial Trucks to Include National IV and Below Emission Standards】
The NDRC and MOF issued a notice on expanding the implementation of large-scale equipment upgrades and trade-in policies for consumer goods in 2025. The notice proposed expanding support for scrapping and renewing old commercial trucks and agricultural machinery. Based on the 2024 support policies, the scope of subsidies for scrapping and renewing old commercial trucks will be expanded to include those meeting National IV and below emission standards, with subsidy standards following the "Notice on Implementing the Scrapping and Renewal of Old Commercial Trucks" (Jiaoguihua Fa [2024] No. 90). Based on the "Supplementary Notice on Strengthening the Subsidy Policy for Scrapping and Renewing Agricultural Machinery" (Nongbanji [2024] No. 5), rice transplanters will be included in the subsidy scope, with reference to the subsidy policy for rice seedling transplanters. The maximum subsidy for scrapping and renewing cotton pickers will be increased from 60,000 yuan to 80,000 yuan per unit. Field operation detection terminals, plant protection drones, grain dryers, color sorters, and flour mills will also be included in the subsidy scope. The maximum number of agricultural machinery types eligible for subsidies, as determined by local governments, will be increased from six to twelve.
09 ★★ 【MOFCOM: Over 60% of Vehicles Replaced in 2024 Trade-In Programs Were NEVs】
A MOFCOM official stated on January 8 at the State Council's regular policy briefing that, since the implementation of the "Two New" policies in 2024, sales of automobiles and household consumer goods have improved. In automobile trade-in programs, over 60% of vehicles replaced were NEVs. In household appliance trade-in programs, products with Level 1 energy efficiency accounted for over 90% of sales. In kitchen and bathroom equipment renewal programs, over 10 million smart home products, such as smart toilets, robotic vacuum cleaners, and smart locks, were replaced.
10 ★★ 【Two Departments: Continuing Support for Trade-In Programs for Eight Categories of Household Appliances, Adding Four More Categories to Subsidy Scope】
The NDRC and MOF issued a notice on expanding the implementation of large-scale equipment upgrades and trade-in policies for consumer goods in 2025. The notice proposed strengthening support for household appliance trade-in programs. Support will continue for refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household stoves, and range hoods. Four additional categories—microwave ovens, water purifiers, dishwashers, and rice cookers—will be included in the subsidy scope. Individual consumers purchasing products meeting Level 2 energy or water efficiency standards from the 12 categories will receive subsidies equivalent to 15% of the product's selling price. For products meeting Level 1 standards, the subsidy will be 20%. Each consumer can receive a subsidy for one unit per product category (up to three units for air conditioners), with a maximum subsidy of 2,000 yuan per unit. Consumers who received subsidies for a specific category of household appliances in 2024 can continue to receive subsidies for the same category in 2025.
11 ★★ 【Two Departments: Increasing Support for Key Equipment Upgrade Projects and Expanding Ultra-Long-Term Special Treasury Bond Funds】
The NDRC and MOF issued a notice on expanding the implementation of large-scale equipment upgrades and trade-in policies for consumer goods in 2025. The notice proposed increasing support for key equipment upgrade projects. The scale of ultra-long-term special treasury bond funds for key equipment upgrades will be expanded. In addition to continued support for industrial, energy-use, energy and power, transportation, logistics, environmental infrastructure, education, cultural tourism, medical, and old elevator equipment upgrades, the scope will be extended to include electronic information, safety production, and facility agriculture. Priority will be given to high-end, intelligent, and green equipment applications. Regions with suitable conditions are encouraged to use industrial parks and industrial clusters as platforms for deploying and implementing equipment upgrades on a large scale. Key equipment upgrade projects will be supported through investment subsidies and other means, with a "local review, national re-review" approach for project selection and approval. The application and approval processes will be simplified to improve efficiency.
★ Industry and Downstream ★
01 ★★★ 【SMM Blast Furnace Operating Rate】
According to an SMM survey, as of January 8, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 85.33%, up 0.26 percentage points WoW. The capacity utilization rate of blast furnaces was 86.88%, up 0.83 percentage points WoW. The daily average pig iron production of the sampled steel mills was 2.346 million mt, up 15,100 mt WoW.
02 ★★★ 【SMM Electric Furnace Operating Rate】
According to an SMM survey, as of January 7, the operating rate of electric furnaces at 50 major construction steel-producing mills nationwide was 37.46%, down 0.74% WoW. The capacity utilization rate was 38.65%, down 1.24% WoW. The daily average production of construction steel was 86,100 mt, down 2,800 mt WoW.
03
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【SMM Rebar Production Schedule】
The planned rebar production for January is 8.2143 million mt, down 613,500 mt from the actual production in December, a decrease of 6.95%. The planned wire rod production for January is 3.0585 million mt, down 299,900 mt from the actual production in December, a decrease of 8.93%.
04
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【Zhengzhou Housing "Trade-In" Target Exceeded with a Total of 10,816 Units】
According to the Zhengzhou Housing Security and Real Estate Administration Bureau, as of December 31, 2024, 5,085 second-hand housing agreements were signed through the acquisition model of state-owned platform companies, and 5,731 units were completed through the market-based "sell old, buy new, trade-in" model, totaling 10,816 units, exceeding the annual target of 10,000 units set by the municipal government.
05
★★
【Cui Dongshu of CPCA: "Unified Subsidy Standards for Replacement and Upgrades" Will Balance Market Competition Across Regions】
The National Development and Reform Commission (NDRC) and the Ministry of Finance issued a notice today on the 2025 expansion and implementation of large-scale equipment upgrades and trade-in policies for consumer goods, which unified the subsidy standards for vehicle replacement and upgrades. Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA), told a reporter from Cailian Press that the unified standard of "no more than 15,000 yuan per passenger NEV and no more than 13,000 yuan per fuel-powered passenger car" effectively equalizes subsidy policies across regions, balances market competition, and provides better policy support for consumers.
06
★★
【Shanghai's 2024 New Home Transactions Total Approximately 540 Billion Yuan, Second-Hand Home Transactions Near 750 Billion Yuan】
Benefiting from a series of favorable policies, Shanghai's real estate market in 2024 experienced the most relaxed policy environment in nearly a decade. The total transaction value of new homes reached approximately 540 billion yuan, while second-hand home transactions approached 750 billion yuan, ranking first among 100 cities. Throughout the year, there were about 60 "instant sell-out" projects, covering luxury homes, improvement-oriented projects, and first-time buyer properties. Industry insiders believe that Shanghai already demonstrated strong market recovery in Q4 last year, with increasingly clear signals of "stabilization and recovery."
07
★★
【NDRC: Domestic Retail Sales of New Energy Vehicles Reached 11 Million Units in 2024】
Zhao Chenxin, Deputy Director of the National Development and Reform Commission (NDRC), stated at the State Council's regular policy briefing on January 8 that over 6.5 million vehicles were scrapped and replaced in 2024, and the domestic retail sales of passenger NEVs reached 11 million units.
08
★★
【CPCA: Preliminary Statistics Show December Passenger NEV Retail Sales at 1.379 Million Units, Up 46% YoY】
According to preliminary statistics from the China Passenger Car Association (CPCA), retail sales in the passenger car market from December 1 to 31 totaled 2.622 million units, up 11% YoY and 9% MoM. Cumulative retail sales for the year reached 22.88 million units, up 5% YoY. Wholesale sales by passenger car manufacturers from December 1 to 31 totaled 3.064 million units, up 13% YoY and 5% MoM, with cumulative wholesale sales for the year reaching 27.18 million units, up 6% YoY. Retail sales in the passenger NEV market from December 1 to 31 totaled 1.379 million units, up 46% YoY and 10% MoM, with cumulative retail sales for the year reaching 10.975 million units, up 42% YoY. Wholesale sales by passenger NEV manufacturers from December 1 to 31 totaled 1.5 million units, up 35% YoY and 5% MoM, with cumulative wholesale sales for the year reaching 12.218 million units, up 38% YoY.
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Other Hot Topics
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⭕【PBOC Shanghai Headquarters: Strengthen Macroprudential Management of Shanghai's Real Estate Finance in 2025 and Continue Risk Prevention in the Interbank Bond Market】
The Shanghai headquarters of the People's Bank of China (PBOC) held its 2025 work conference on January 8. The meeting emphasized key tasks for 2025, including continuously preventing and resolving risks in key areas, leveraging the coordination mechanism for local financial work in Shanghai to ensure the implementation of agreed matters, improving and strengthening macroprudential management of Shanghai's real estate finance, continuing risk prevention in the interbank bond market, and cracking down on illegal activities such as underground banks, cross-border gambling, and export tax fraud.
⭕【Indonesia Continues to Impose Anti-Dumping Duties on HRC from China and Other Regions】
The Indonesian Ministry of Finance issued Announcement No. PMK103, continuing to impose anti-dumping duties on non-alloy iron or steel HRC with a width of not less than 600 mm originating from mainland China, India, Russia, Kazakhstan, Belarus, Taiwan, China, and Thailand. The tax rate for mainland China remains unchanged at 0% and 20% (see the annex for detailed rates). The measures will take effect on January 15, 2025, and will remain valid for five years until January 14, 2030.
