★Macro★
01★★★
US February PPI Up 3.2% YoY, Below Expectations
[US February PPI Up 3.2% YoY, Below Expectations] US February PPI increased 3.2% YoY, compared to an estimated 3.3% and a previous value of 3.5%. MoM, February PPI remained flat, with an estimate of 0.3% growth and a prior value of 0.4%.
02 ★★
Preview: Press Conference on March 17 at 3 PM to Discuss Measures to Boost Consumption
The State Council Information Office will hold a press conference on Monday, March 17, 2025, at 3 PM. Vice Chairman of the National Development and Reform Commission (NDRC) Chunlin Li, along with officials from the Ministry of Finance, Ministry of Human Resources and Social Security, Ministry of Commerce, People's Bank of China, and State Administration for Market Regulation, will introduce measures to boost consumption and answer questions from the media.
03 ★★
Financial Regulatory Administration: Expand and Enhance Urban Real Estate Financing Coordination Mechanism, Ensure Housing Delivery
The Party Committee of the Financial Regulatory Administration held an expanded meeting, emphasizing that 2025 marks the final year of the 14th Five-Year Plan. The entire system must ensure early implementation of policies and measures to achieve the annual economic and social development goals. Key risk areas must be effectively prevented and resolved. The meeting called for integrated efforts to address risks and promote the transformation of local small and medium-sized financial institutions through measures such as capital replenishment, mergers and acquisitions, and market exits. The urban real estate financing coordination mechanism will be expanded and enhanced, and efforts will be made to ensure housing delivery. Financing systems compatible with new real estate development models will be formulated and introduced. Support will be provided for local governments in restructuring hidden debts.
04 ★★
PBOC: RRR and Interest Rate Cuts to Be Timed Based on Economic and Financial Conditions
The People's Bank of China (PBOC) held an expanded meeting of its Party Committee. The meeting emphasized the implementation of a moderately loose monetary policy, balancing short-term and long-term goals, growth stabilization and risk prevention, internal and external equilibrium, and supporting the real economy while maintaining the health of the banking system. RRR and interest rate cuts will be timed based on domestic and overseas economic and financial conditions and financial market performance. Various monetary policy tools, including open market operations, will be comprehensively utilized to maintain ample liquidity, aligning the growth of social financing scale and money supply with economic growth and price level targets. Efforts will be made to further unblock monetary policy transmission channels, improve the interest rate formation and transmission mechanism, and reduce overall social financing costs. Communication with the market will be strengthened to enhance policy transparency. The decisive role of the market in exchange rate formation will be upheld, expectations will be guided, and the RMB exchange rate will be kept basically stable at a reasonable and balanced level.
05 ★★
[PBOC: Implementing Moderately Loose Monetary Policy]
On March 13, the People's Bank of China (PBOC) held an expanded meeting of its Party Committee. The meeting emphasized that RRR and interest rate cuts will be timed based on domestic and overseas economic and financial conditions and financial market performance. Various monetary policy tools, including open market operations, will be comprehensively utilized to maintain ample liquidity, aligning the growth of social financing scale and money supply with economic growth and price level targets. Efforts will be made to further unblock monetary policy transmission channels, improve the interest rate formation and transmission mechanism, and reduce overall social financing costs. Communication with the market will be strengthened to enhance policy transparency.
★Industry and Downstream★
01 ★★★
HRC Production Continued to Decline This Week, Social Inventory Destocking Accelerated Slightly
This week, SMM statistics showed that HRC social inventory across 86 warehouses nationwide (large sample) was 4.4704 million mt, down 85,500 mt or 1.88% WoW, and up 1.23% YoY on a lunar calendar basis.
Social inventory continued to decline nationwide this week, with a larger decrease. By region, south China and east China markets saw significant declines, while central, north, and north-east China markets fluctuated rangebound.
Steel mill production decreased this week, with some mills actively shipping, leading to a decline in in-plant inventory WoW.
02★★★
[SMM Construction Steel Inventory] Factory and Social Inventories of Construction Steel Declined This Week
On March 13, SMM reported that the total rebar inventory nationwide was 7.9754 million mt, down 0.74% WoW and 33.81% YoY. The total coiled rebar inventory nationwide was 2.0718 million mt, down 2.05% WoW and 36.46% YoY. This week, construction steel market prices fluctuated downward, with low market trading activity. Later, news of production restrictions led to a slight rebound, driving speculative demand in the market. Meanwhile, end-use demand continued to recover, resulting in a slight decline in total construction steel inventory this week.
★Other Hot Topics★
⭕[WTO: Canada Filed Complaint Against US Steel and Aluminum Tariffs] On March 13, local time, the World Trade Organization (WTO) announced that it had received a request from Canada to initiate WTO dispute consultations with the US regarding import tariffs on certain Canadian steel and aluminum products. The request was distributed to WTO members on the same day. The US tariff measures, introduced by the Trump administration, impose a 25% tariff on all imported steel and aluminum products and officially took effect on March 12.
⭕[Xi'an Railway Supervision Bureau and Others Summoned Shanxi TISCO Stainless Steel Co., Ltd.] According to the National Railway Administration on March 13, two general railway traffic accidents occurred on TISCO's dedicated railway on January 18 and January 22 this year. On February 28, 2025, the Xi'an Railway Supervision Bureau, in accordance with the "Implementation Measures for Railway Safety Production Summons (Trial)," jointly summoned Shanxi TISCO Stainless Steel Co., Ltd., the responsible party for the accidents, along with the Taiyuan Railway Safety Supervision Office.
⭕The US reported 220,000 initial jobless claims last week, compared to an estimate of 225,000 and a previous value of 221,000.
⭕[New Home Inventory in 50 Cities Down 11% YoY; De-stocking Cycle in Hot Cities Like Beijing and Guangzhou Still Exceeds 20 Months] "De-stocking" remains a key task for the real estate industry this year. According to CRIC monitoring data, as of the end of January this year, the narrow inventory of newly built commercial housing in 50 key cities was 310.93 million m², down 1% MoM and 11% YoY. However, in several key first- and second-tier cities, including Beijing, Guangzhou, Nanjing, and Wuhan, the de-stocking cycle for new homes still exceeds 20 months. CRIC noted that "due to supply constraints, the real estate market remains in a de-stocking cycle."
⭕[South Korea to Announce Response Plan to US Steel Tariffs This Month] On March 13, South Korean Minister of Trade, Industry, and Energy Dukgeun Ahn stated that the government would announce a response plan for steel trade and unfair imports within this month to effectively address the global trade protectionism triggered by the US's 25% steel and aluminum tariff policy. Speaking at a steel industry roundtable in Gangnam, Seoul, Ahn noted that unfair trade practices are likely to increase. The Ministry will adopt strong countermeasures, including enhanced monitoring of anti-dumping circumvention and imported products. The Ministry is also gathering industry opinions to finalize the response plan.
⭕[Guangxi Shenglong Metallurgical Slab Continuous Casting Machine Commissioned] Recently, the No. 5 slab continuous casting machine of Guangxi Shenglong Metallurgical Co., Ltd., contracted by Sinomach Heavy Equipment Group, successfully completed its hot trial and was commissioned. The quality of the cast slab products met all standards and received high praise from users. The project was undertaken by the China Heavy Machinery Research Institute under Sinomach Heavy Equipment Group. The continuous casting machine, designed for producing high-value-added products such as silicon steel and automotive sheets, integrates advanced casting technologies, equipment, and intelligent operation systems. It provides robust support for product upgrades and capacity enhancement.
⭕[Brazil to Appeal US Steel and Aluminum Tariffs to WTO] On March 12, local time, the US's 25% tariff on imported steel and aluminum products officially took effect. On the same day, Brazil's Ministry of Foreign Affairs and Ministry of Development, Industry, Trade, and Services issued a joint statement, indicating that Brazil may appeal the measure to the World Trade Organization (WTO). Brazil, one of the most affected countries, exports 54% of its steel products to the US, according to the National Confederation of Industry (CNI). Brazil criticized the US's tariff policy as protectionism favoring domestic steel mills, giving them an advantage over imported products. The Brazilian government supports a multilateral trade system and opposes the US's unilateral trade barriers, calling them "unreasonable and wrong."
⭕CDB: From January to February, CDB issued 28.57 billion yuan in loans for water conservancy and water resources, up 67.5% YoY.The Ministry of Water Resources held a meeting of the National Water Network Construction Leadership Group, emphasizing the acceleration of the main framework and arteries of the national water network, promoting coordinated development of provincial, municipal, and county-level water networks, and achieving substantial progress in various tasks.
⭕[Pangang and Chalco's Zinc-Aluminum-Magnesium Coated Steel Sheets Applied in Domestic Home Appliance Sector for the First Time] Pangang and Chalco's zinc-aluminum-magnesium coated steel sheets were successfully applied to components of home appliances such as air conditioners, marking the first domestic application in the home appliance sector.
Zinc-aluminum-magnesium coated steel sheets, the latest generation of coated products, are categorized into low-aluminum, medium-aluminum, and high-aluminum types, with corrosion resistance 6–15 times that of pure zinc coatings. Compared to low-aluminum products, medium-aluminum zinc-aluminum-magnesium products offer better durability and are widely used in PV mounting brackets, storage racks, light steel buildings, agriculture and livestock industries, and construction machinery. However, they had not been applied in the home appliance sector.
To meet the quality requirements of home appliance users, Pangang conducted research on the application technology of medium-aluminum zinc-aluminum-magnesium products, clarifying their forming, coating, and welding properties. This research established the feasibility of their application in home appliance components and provided comprehensive solutions for users. The project team addressed technical challenges such as controlling typical surface defects, improving coating formability, and developing environmentally friendly surface treatment technologies. They developed high-surface-quality medium-aluminum zinc-aluminum-magnesium alloy coated steel sheets, which have been applied by home appliance manufacturers with excellent performance, fully meeting user requirements.
