The Federal Reserve cut interest rates by 25 basis points, while Zhongtian rebar prices were raised by 50 yuan.

◎ Following its meeting, the Federal Open Market Committee (FOMC) announced a 25-basis-point interest rate cut, lowering the target range for the federal funds rate to 3.50%–3.75%. This marks the Fed’s third rate cut of the year, each by 25 basis points.

◎ Federal Reserve Chair Powell stated that inflation remains elevated, but core inflation—driven by factors other than tariffs—has improved significantly. Without new tariffs, commodity inflation is expected to peak in the first quarter of 2026. Interest rates are already at the upper end of the neutral range, and policy is transitioning from restrictive to neutral. U.S. President Trump reiterated his criticism of Federal Reserve Chair Powell. Trump said the magnitude of the interest rate cuts has been too small and could have been larger; the Fed could have doubled the size of its rate cuts.

◎ According to estimates, the output of the Simandou iron ore project may enter a phase of increased production between the end of 2026 and early 2028, with full production potentially being reached no earlier than after 2028-2029. If the project continues at its current pace, its overall supply in 2026 could fall short of the previously expected level of 20 million tons. Details>>

◎ On December 10, Zhongtian Steel announced its mid-December pricing: rebar, wire rod, and coiled rebar prices were all raised by 50 yuan/ton. In East China, rebar is priced at 3,400 yuan/ton, while wire rod and coiled rebar are priced at 3,600 yuan/ton.

◎ National Bureau of Statistics: In November, China’s CPI rose 0.7% year-on-year, an increase that expanded by 0.5 percentage points compared to the previous month; the PPI rose 0.1% month-on-month, marking a second consecutive month of increase.

◎ The Ministry of Finance will renew the special government bonds worth 750 billion yuan on December 12 upon their maturity. The renewed special government bonds will still correspond to the original assets and liabilities and will not increase the fiscal deficit.

◎ On December 10, Changsha, Yiyang, Zhuzhou, and other regions will upgrade their yellow alert for severe air pollution to an orange alert and simultaneously activate a Level II response.

◎ The International Monetary Fund (IMF) forecasts that China’s economy will grow by 5.0% and 4.5% in 2025 and 2026, respectively. These forecasts represent upward revisions of 0.2 and 0.3 percentage points from the October projections.

◎ The Federal Reserve has raised its GDP growth forecasts for the U.S. from 2025 to 2028, with median growth rates now projected at 1.7%, 2.3%, 2.0%, and 1.9%, respectively—representing a comprehensive upward revision compared to the September projections of 1.6%, 1.8%, 1.9%, and 1.8%.

◎ European Central Bank President Lagarde said that the eurozone has demonstrated resilience beyond expectations in the face of the U.S. tariff offensive, and the bank’s new forecast to be released next week may revise upward its economic growth projections.

◎ The Bank of Canada kept its benchmark interest rate unchanged at 2.25%, in line with general market expectations.

◎ On December 10, the nationwide spot trade volume of iron ore at major ports reached 715,000 tons, down 37.1% from the previous month; the trade volume of construction steel by 237 leading traders totaled 114,300 tons, up 23.5% from the previous month.

◎ The global steel production landscape is undergoing profound changes. As consumption in China, Japan, and South Korea has reached its peak, their production is now on a downward trajectory. Meanwhile, India, Southeast Asia, Africa, and the Middle East are witnessing rapid growth in steel production. Global steel supply is expected to increase slightly by 2026, with an estimated growth rate of between 0.5% and 1%. Read more>>

◎ Some steel mills in Hebei and Tianjin have lowered the prices of wet-quenched coke by 50 yuan/ton and dry-quenched coke by 55 yuan/ton, effective from midnight on December 12.

◎ This week, the capacity utilization rate of a sample of 314 independent coal preparation plants was 38.2%, up 1.7% from the previous week. Daily production of clean coal reached 279,000 tons, an increase of 8,000 tons from the previous week. Clean coal inventory stood at 3.324 million tons, up 110,000 tons from the previous week.

◎ This week, the average cost of hot metal (without tax) at mainstream sample steel mills in Tangshan was 2,304 yuan per ton, while the average cost of billets (with tax) was 3,065 yuan per ton. Both figures declined by 6 yuan per ton compared to the previous week. Compared to the ex-factory price of ordinary square billets on December 10, which stood at 2,960 yuan per ton, steel mills are experiencing an average loss of 105 yuan per ton.

◎ The Yunnan Desheng wire rod rolling mill is scheduled for a four-day maintenance period from December 13 to 16, which is expected to affect wire rod production by approximately 6,000 tons.

◎ The construction of the plant for the 1-million-ton-per-year high-frequency straight-seam welded pipe project of Yunnan Youfa Fangyuan Pipe Industry Co., Ltd. is now basically complete. The project is currently in the final sprint phase of equipment installation and commissioning, and is expected to enter trial production by the end of this month.

◎ According to incomplete statistics from Mysteel, in November 2025, a total of 528 projects were started nationwide, with a total investment amount of approximately 751.785 billion yuan.

◎ From January to November this year, railway construction has been advancing smoothly and efficiently. Nationwide, fixed-asset investment in railways reached 753.8 billion yuan, representing a year-on-year increase of 5.9%.

◎ China Passenger Car Association: From December 1 to 7, retail sales of passenger cars nationwide totaled 297,000 units, down 32% year-on-year. Year-to-date cumulative retail sales reached 2,178,100 units, up 5% year-on-year.

◎ As of December 10, 18 automakers have released their sales figures: In November, total vehicle sales reached 2.5537 million units, and cumulative sales from January to November totaled 22.8198 million units. Among them, BYD’s November sales reached 480,200 units, hitting a new high for the year.

◎ The “15th Five-Year” planning proposals of 9 provinces mention content related to the shipbuilding industry, including promoting quality improvement and upgrading of the shipbuilding sector and stepping up the promotion of new-energy vehicle and vessel applications. Learn more>>

◎ SHFE: Starting from the closing settlement on December 12, 2025, the daily price limit for silver futures contract AG2602 will be adjusted to 15%; the margin ratio for hedging positions will be adjusted to 16%; and the margin ratio for non-hedging positions will be adjusted to 17%.

16:00 China’s November M2, total social financing, and new RMB loans

17:50 Bank of England Governor Bailey delivers a speech.

21:30 U.S. initial jobless claims for the week ending December 6

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