Morning reading: Latest survey on steel mill maintenance impact, structural steel production capacity adjustment enters a stable period

　　◎Minister of Industry and Information Technology Li Lecheng presided over a symposium with some provinces and cities on the "15th Five-Year Plan." Li Lecheng emphasized the need to thoroughly study the tasks and measures for promoting new industrialization during the "15th Five-Year Plan" period. It is necessary to maintain a reasonable proportion of manufacturing, promote the deep integration of technological innovation and industrial innovation, enhance the resilience and security level of the industrial and supply chains, and intensify the transformation and upgrading of traditional industries.

　　◎Ren Zhuqian, Vice President of Shanghai Steel Union, stated that the adjustment of section steel production capacity has entered a stable period, and the new capacity needs to be absorbed. In the past five years, China's net new section steel capacity increased by about 28 million tons, with the current effective total capacity at 105.95 million tons. After the concentrated adjustment of new section steel capacity, the capacity adjustment has basically entered a stable period.

　　◎Last week, steel plants in 14 provinces conducted production line maintenance and resumption, including 17 lines under maintenance, an increase of 15 lines week-on-week, and 2 lines resuming production. Based on the average daily output of rolling mills, the maintenance affected production by 326,800 tons. It is expected that this week's maintenance will affect production by 270,400 tons.

　　◎According to data from the State Administration of Foreign Exchange, as of the end of August 2025, China's foreign exchange reserves amounted to 3,322.2 billion US dollars, an increase of 29.9 billion US dollars from the end of July, a rise of 0.91%.

　　◎Data released by the People's Bank of China shows that China's gold reserves reached 74.02 million ounces at the end of August, up from 73.96 million ounces at the end of July, marking the 10th consecutive month of gold accumulation.

　　◎At 10:00 on September 7, the Ministry of Water Resources initiated a Level IV emergency response for flood defense in Guangdong and Guangxi, and dispatched two working groups to Guangdong and Guangxi to assist and guide typhoon, heavy rain, and flood defense work.

　　◎In August, the US non-farm payrolls increased by only 22,000, far below the market expectation of 75,000. The unemployment rate rose to 4.3%, the highest since 2021. These data further raised expectations for a Federal Reserve rate cut in September.

　　◎US President Trump announced exemptions from global country tariffs for gold bars and metal products such as graphite, tungsten, and uranium, while including silicone products in the tariff scope.

　　◎On September 7, Japanese Prime Minister and Liberal Democratic Party President Shigeru Ishiba held an emergency press conference at the Prime Minister's Official Residence, announcing his decision to resign as LDP President. Earlier that day, Ishiba had decided to resign as Prime Minister.

　　◎On September 5, the national main ports recorded iron ore transactions of 1.467 million tons, a week-on-week increase of 62.1%; 237 mainstream traders transacted 113,300 tons of construction steel, a week-on-week increase of 12.2%.

　　◎At the end of last week, the ex-factory price including tax of universal billets in Qian'an, Tangshan, was lowered by 10 yuan/ton to 2,980 yuan/ton.

　　◎From January to August 2025, the national industrial wire rod output reached 47.5281 million tons, a year-on-year increase of 1.41%, showing a slight overall growth trend but with significant internal differentiation. Hard wire and 30MnSi became the main growth varieties, while drawing wire and B steel significantly reduced production due to insufficient demand and profit pressure. Details>>

　　◎Last week, the total inventory of imported iron ore at 47 ports nationwide was 144.2572 million tons, an increase of 377,000 tons week-on-week; the total inventory at 45 ports was 138.2532 million tons, an increase of 623,000 tons week-on-week.

　　◎Last week, the blast furnace operating rate of 247 steel plants nationwide was 80.4%, a decrease of 2.80 percentage points week-on-week; the blast furnace ironmaking capacity utilization rate was 85.79%, down 4.23 percentage points week-on-week; the average daily hot metal output was 2.2884 million tons, down 112,900 tons week-on-week.

　　◎Last week, the average daily coke output of 230 independent coking enterprises nationwide was 643,200 tons, down 2,000 tons; coke inventory was 665,100 tons, up 12,000 tons; total coking coal inventory was 9.2005 million tons, down 412,200 tons; available coking coal days were 10.8 days, down 0.44 days.

　　◎Last week, the average capacity utilization rate of 90 independent electric arc furnace steel plants nationwide was 55.74%, down 0.8 percentage points week-on-week and up 23.04 percentage points year-on-year; the average operating rate was 73.21%, down 1.88 percentage points week-on-week and up 23.99 percentage points year-on-year.

　　◎Last week, the total inventory of imported iron ore at steel plants nationwide was 89.3987 million tons, down 673,200 tons week-on-week; the current daily consumption of imported ore at sample steel plants was 2.8067 million tons, down 154,300 tons week-on-week; the inventory-to-consumption ratio was 31.85 days, up 1.43 days week-on-week.

　　◎Xia Nong, Vice President of the China Iron and Steel Association, stated that steel structure buildings are definitely one of the most competitive technical systems in China's construction system; positive changes have appeared, such as steel structure buildings reaching cost parity with reinforced concrete units, the gradual establishment of industrial chain collaboration platforms, and significant efficiency improvements.

　　◎OPEC+ stated that eight OPEC+ member countries agreed to increase oil production by 137,000 barrels per day in October.

　　◎According to the China Construction Machinery Industry Association, in August 2025, sales of various excavators reached 16,523 units, a year-on-year increase of 12.8%; sales of various loaders reached 9,440 units, a year-on-year increase of 13.3%.

　　◎According to Clarkson, from January to August 2025, the global cumulative new ship orders amounted to 1,912 vessels totaling 34.48 million CGT, a 14% decrease compared to 2,190 vessels totaling 40.14 million CGT in the same period last year. Among them, Chinese shipyards received orders for 872 vessels totaling 13.96 million CGT, a 17% decrease year-on-year, holding a market share of 40%, ranking first globally.