Morning Reading: China and the U.S. Agree to Hold a New Round of Economic and Trade Consultations; Steel Mills Reduce Production and Conduct Maintenance Inspections

　　◎The 4th Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing from October 20 to 23. Key agenda items included: the Political Bureau of the CPC Central Committee reporting its work to the Central Committee, and deliberating on proposals for formulating the 15th Five-Year Plan for National Economic and Social Development. The session also analyzed and assessed the current economic situation, and outlined economic tasks for the second half of the year.

　　◎ On October 18, He Lifeng held a video call with U.S. Treasury Secretary Janet Yellen and Trade Representative Katherine Tai. Both sides agreed to hold a new round of China-U.S. economic and trade consultations at the earliest opportunity.

　　◎ Last week, steel plants in 13 provinces carried out production line maintenance and resumption activities. Among them, 3 production lines underwent maintenance—down by 6 compared to the previous week—and 8 lines resumed operations—up by 1 from the prior week. Based on daily average rolling mill output calculations, the ongoing maintenance activities have impacted production by approximately 215,300 tons, while this week's planned maintenance is expected to affect production by an estimated 63,800 tons.

　　◎ According to data from the Ministry of Finance, in the first three quarters, the national general public budget revenue reached 16,387.6 billion yuan, representing a year-on-year increase of 0.5%. Meanwhile, the national general public budget expenditure totaled 20,806.4 billion yuan, up by 3.1% compared to the same period last year.

　　◎Since October, a number of small and medium-sized banks have intensively lowered or are preparing to lower their deposit interest rates. On October 13, Shanghai Huarui Bank issued an "Announcement on Adjusting the Listed Interest Rates for RMB Deposits," reducing the interest rate for three-year fixed-term deposits from 2.3% to 2.15%.

　　◎ This week, the central bank will see RMB 789.1 billion in reverse repurchase agreements mature in the open market, with maturities of RMB 253.8 billion, RMB 91 billion, RMB 43.5 billion, RMB 236 billion, and RMB 164.8 billion occurring from Monday to Friday, respectively.

　　◎U.S. President Donald Trump signed an executive order on October 17 local time, imposing a new 25% tariff on imports of medium- and heavy-duty trucks and their components starting November 1. Trump also announced that a 10% tariff would be levied on imported passenger vehicles.

　　◎ On October 17, national major port iron ore transactions totaled 1.003 million tons, down 16.9% from the previous day; meanwhile, mainstream trading companies saw construction steel transactions amounting to 95,000 tons, a decrease of 6.7% compared to the prior day.

　　◎ Last weekend, the ex-factory price of Pufang billet resources in Qian'an, Tangshan, remained stable at RMB 2,920 per ton, inclusive of taxes.

　　◎ Last week, the total inventory of imported iron ore at 47 ports nationwide reached 149.6187 million tons, an increase of 3.2079 million tons compared to the previous week. Meanwhile, the average daily port throughput decreased by 122,200 tons to 3.2932 million tons.

　　◎ Last week, the inventory of imported coking coal at 16 ports nationwide stood at 4.8816 million tons, a decrease of 193,100 tons compared to the previous week. Meanwhile, the inventory of metallurgical coke at 18 ports across the country reached 2.5265 million tons, representing an increase of 60,000 tons from the prior week.

　　◎ Last week, the capacity utilization rate of 462 national coal mines with power generation facilities reached 91.7%, down 0.1 percentage point from the previous week; total coal stocks amounted to 2.938 million tons, a decrease of 246,000 tons compared to the prior week.

　　◎ Last week, the blast furnace ironmaking capacity utilization rate at 247 steel plants reached 90.33%, a decrease of 0.22 percentage points from the previous week but an increase of 2.34 percentage points year-on-year. Daily molten iron production averaged 2.4095 million tons, down 0.059 million tons from the prior week, yet up 0.0659 million tons compared to the same period last year.

　　◎ Last week, the average capacity utilization rate of 90 independent electric arc furnace steel plants nationwide was 53.2%, up 2.13 percentage points from the previous week and 1.32 percentage points year-on-year. The average operating rate stood at 68.85%, increasing by 1.79 percentage points week-on-week but declining by 0.73 percentage points year-on-year.

　　As of 0:00 on October 17, all 48 cities and counties across Jilin Province have officially started heating supply through pipeline connections, marking an average advance of 3 days compared to the previous heating season.

　　◎ Australian Prime Minister Anthony Albanese is expected to meet with U.S. President Donald Trump in Washington to discuss issues including the supply chain for rare earth materials.

　　◎ According to statistics compiled by the China Construction Machinery Industry Association from major forklift manufacturers, 130,380 units of various forklifts were sold in September 2025, representing a year-on-year increase of 23%. Among these, domestic sales reached 81,119 units, up 29.3% year-on-year, while exports totaled 49,261 units, reflecting a 13.9% growth compared to the same period last year.

　　◎ The China Shipowners Association officially signed Memorandums of Understanding on cooperation in the maritime transportation sector with three major international shipping organizations: the Baltic International Maritime Council, the International Association of Independent Tanker Owners, and DNV China Co., Ltd.