Report Summary 1. Investment Rating - No investment rating is provided in the report. 2. Core View - On Tuesday, the HC2601 contract opened lower and moved lower. The weekly output of hot - rolled coils continued to increase, with a capacity utilization rate of 83.4%. Demand declined slightly and inventory increased. Overall, hot - rolled coil production remained at a high level, terminal demand had strong resilience, and the steel market was intertwined with long and short factors, so the futures price might fluctuate. Technically, the 1 - hour MACD indicator of the HC2601 contract showed that DIFF and DEA were adjusting downward with an enlarged green column. It is recommended to conduct short - term trading and pay attention to rhythm and risk control [2]. 3. Summary by Directory 3.1 Futures Market - The closing price of the HC main contract was 3,340 yuan/ton, down 40 yuan; the position volume was 1367093 lots, down 15676 lots; the net position of the top 20 in the HC contract was - 97,783 lots, up 14344 lots; the HC10 - 1 contract spread was 50 yuan/ton, up 10 yuan; the HC warehouse receipt at the Shanghai Futures Exchange was 38151 tons, down 280 tons; the HC2601 - RB2601 contract spread was 185 yuan/ton, down 10 yuan [2]. 3.2 Spot Market - The price of 4.75 hot - rolled coils in Hangzhou was 3,410 yuan/ton, down 40 yuan; in Guangzhou was 3,370 yuan/ton, down 30 yuan; in Wuhan was 3,430 yuan/ton, down 30 yuan; in Tianjin was 3,330 yuan/ton, down 20 yuan. The basis of the HC main contract was 70 yuan/ton, unchanged; the spread between Hangzhou hot - rolled coils and rebar was 90 yuan/ton, down 20 yuan [2]. 3.3 Upstream Situation - The price of 61.5% PB iron ore fines at Qingdao Port was 797 yuan/wet ton, down 9 yuan; the price of Hebei quasi - first - grade metallurgical coke was 1,490 yuan/ton, unchanged; the price of 6 - 8mm scrap steel in Tangshan was 2,290 yuan/ton, unchanged; the price of Hebei Q235 billet was 3,030 yuan/ton, down 20 yuan. The inventory of iron ore at 45 ports was 13,804.22 million tons, down 48.91 million tons; the inventory of coke at sample coking plants was 42.21 million tons, down 1.55 million tons; the inventory of coke at sample steel mills was 644.90 million tons, up 11.29 million tons; the inventory of Hebei billets was 121.73 million tons, down 7.22 million tons [2]. 3.4 Industry Situation - The blast furnace operating rate of 247 steel mills was 84.00%, up 0.15 percentage points; the blast furnace capacity utilization rate was 90.38%, up 0.18 percentage points. The output of hot - rolled coils of sample steel mills was 326.49 million tons, up 1.35 million tons; the capacity utilization rate of hot - rolled coils was 83.40%, up 0.34 percentage points. The inventory of hot - rolled coils at sample steel mills was 81.30 million tons, up 0.42 million tons; the social inventory of hot - rolled coils in 33 cities was 296.69 million tons, up 4.25 million tons. The domestic crude steel output was 7,737 million tons, down 229 million tons; the net export volume of steel was 901.00 million tons, down 38.00 million tons [2]. 3.5 Downstream Situation - The monthly output of automobiles was 281.54 million vehicles, up 22.43 million vehicles; the monthly sales of automobiles were 285.66 million vehicles, up 26.32 million vehicles. The monthly output of air conditioners was 1,681.88 million units, down 377.77 million units; the monthly output of household refrigerators was 945.32 million units, up 72.25 million units; the monthly output of household washing machines was 1,013.18 million units, up 135.75 million units [2]. 3.6 Industry News - On September 23, the National Energy Administration released the data on全社会 electricity consumption in August, reaching 1015.4 billion kWh, a year - on - year increase of 5.0%. The全社会 electricity consumption exceeded 1 trillion kWh in July and August, which was the first time globally. The Ministry of Ecology and Environment held the 2025 air pollution prevention and control work conference in Beijing [2].

Group 1 - The average proportion of days with good air quality in China's cities at or above the prefecture level reached 96.0% in August, an increase of 5.9 percentage points year-on-year [1] - The average concentration of PM2.5 in 339 cities was 13.9 micrograms per cubic meter, a decrease of 16.8% year-on-year, while PM10 concentration averaged 27 micrograms per cubic meter, down 12.9% [1] - In the Beijing-Tianjin-Hebei region and surrounding areas, the average PM2.5 concentration was 17.7 micrograms per cubic meter, a decline of 9.2% year-on-year, with an average good air quality days proportion of 89.6%, up 10.9 percentage points [1] Group 2 - The best air quality cities among 168 key cities in August included Haikou, Huangshan, Lishui, Zhuhai, Lhasa, Liu'an, Guiyang, Fuzhou, Xiamen, and Kunming [1] - The cities with the poorest air quality were Taiyuan, Yangquan, Linfen, Lanzhou, Lüliang, Jiaozuo, Tangshan, Zibo, Jinzhong, and Baotou [1] Group 3 - The Minister of Ecology and Environment emphasized the importance of identifying key points for air pollution prevention in the 2025 air pollution prevention work meeting, aiming to achieve the air quality improvement targets set for the 14th Five-Year Plan [2]

Group 1 - The meeting emphasized the importance of adhering to Xi Jinping's new era of socialism with Chinese characteristics and the need for effective implementation of the Party's ideological work regulations [1] - It highlighted the necessity of strengthening the awareness of the Chinese national community and promoting ethnic unity and progress [1] - The meeting underscored the importance of maintaining safety production standards and effectively managing natural disaster prevention [1] Group 2 - The meeting discussed the acceleration of high-quality development in the micro-short drama industry, advocating for innovation-driven approaches and the establishment of Zhengzhou as a "micro-short drama creation capital" [2] - It reviewed the "Zhengzhou Agricultural Industrialization Leading Enterprises Revitalization Action Plan (2025-2030)", focusing on enhancing industry leadership and supporting agricultural modernization [2] Group 3 - The meeting also addressed other matters, including the planning for the 2025 Autumn Consumption Month activities [3]

Core Viewpoint - The Dazhong Coal Mining Group Yanggao Thermal Power Co., Ltd. was found to have committed environmental violations by storing approximately 1,000 tons of low calorific value fuel (coal slurry, coal gangue, and inferior raw coal) in an open area for about two months, which is against the Air Pollution Prevention and Control Law of the People's Republic of China [1][3][4] Group 1 - The investigation by the Dazhong City Ecological Environment Bureau took place on July 30, 2025, revealing the illegal storage of low calorific value fuel [1][3] - The company was fined 37,000 yuan for the violations, as per the relevant laws and regulations [1][4] - Evidence collected during the investigation included inspection records, interrogation records, photographs, and various documents related to the company's operations [3]

Core Points - The city held a meeting to promote comprehensive utilization and burning prohibition of straw, emphasizing the importance of these initiatives [1][2] - The meeting discussed the preparation for the comprehensive utilization of straw during the mid and late rice harvesting period, with a focus on mobilization and deployment [2] Group 1 - The city’s deputy mayor highlighted the need for all districts to prioritize straw utilization and burning prohibition, especially with the upcoming rice harvest in mid to late September [2] - There is a call to accelerate the implementation of a three-year action plan for straw utilization, with tailored strategies for each township and village [2] - The importance of public awareness and support for the straw burning prohibition policy was stressed, aiming for comprehensive communication and understanding [2] Group 2 - The current air pollution prevention efforts are at a critical stage, requiring all relevant departments to recognize the serious situation and avoid complacency [2] - Strong measures are needed to combine both prevention and utilization strategies, enhancing precise control to prevent open burning of straw [2] - Responsibilities must be clearly defined, and measures detailed to ensure strict adherence to the burning prohibition, preventing pollution incidents [2]

Core Viewpoint - The overall air quality in China during the first half of September 2023 is predominantly good, influenced by precipitation and cold air, with localized ozone pollution expected in some areas [1][2][3][4][5][6] Summary by Region Beijing-Tianjin-Hebei and Surrounding Areas - The air quality is mainly good, with slight pollution in some southern cities during specific periods due to temperature fluctuations and varying air flow [1][2] Yangtze River Delta - The air quality is generally good to lightly polluted, with localized areas experiencing light pollution due to high-pressure systems and precipitation [2] Fenwei Plain - The air quality remains predominantly good, with slight pollution in eastern areas, influenced by precipitation and temperature increases [3] Northeast Region - The air quality is mostly good, with potential light pollution in certain areas due to cold air and precipitation [4] South China - The air quality is primarily good, with some areas experiencing light pollution, particularly in central and northern regions [5] Southwest Region - The air quality is mainly good, with some cities experiencing light pollution due to temperature increases, while overall conditions are favorable [5] Northwest Region - The air quality is generally good, with localized light pollution and potential moderate pollution in southern Xinjiang due to dust storms [6]

Core Points - The mayor emphasizes the importance of implementing Xi Jinping's ecological civilization thoughts and the directives from his inspection in Henan to improve air pollution control efforts [1][2] - The focus is on strict management of pollution prevention facilities and improving technology to ensure stable and compliant emissions [1] - The mayor highlights the need for effective dust control and safety measures at construction sites, urging responsible parties to avoid complacency [2] Group 1 - The mayor conducted an undercover inspection to oversee air pollution prevention work, stressing the need for accountability and rigorous rectification measures [1] - The inspection included visits to key facilities, where real-time data on pollution indicators were reviewed, emphasizing the importance of source control and emission management [1] - The mayor calls for a comprehensive approach to pollution control, including precise, legal, and scientific methods, focusing on key industries and tasks [2] Group 2 - The need for structural adjustments in industries, energy, and transportation is highlighted to promote a low-resource, low-pollution industrial structure [2] - The mayor advocates for the clean and efficient use of traditional energy and the replacement with renewable energy sources to foster green production and living methods [2] - Strengthening institutional constraints and internal incentives is essential to enhance the effectiveness of pollution control efforts [2]

Core Viewpoint - Xianyang has issued two lists aimed at tackling air pollution, emphasizing the need for clear responsibilities among various departments to enhance environmental protection efforts [1] Group 1: Policy Implementation - Xianyang's new lists include a "Basic Responsibilities List" and a "Cooperative Responsibilities List" to clarify the roles of 41 departments in air pollution control, totaling 394 responsibilities [1] - The initiative aims to establish a robust mechanism for collaborative pollution prevention and control, focusing on the principle that "management of the industry must include environmental protection" [1] Group 2: Pollution Sources and Control Measures - The focus will be on eight types of pollution sources: coal combustion, dust, industrial emissions, mobile sources, biomass burning, volatile organic compounds, as well as managing ozone pollution and emergency responses during heavy pollution periods [1] - Departments are required to strictly adhere to the two lists to create a comprehensive responsibility system that addresses pollution at all levels [1]

Core Viewpoint - The city of Changsha is facing unprecedented pressure and challenges in ecological environment work, particularly in air pollution prevention, necessitating immediate and effective actions to address key tasks and risks [1] Group 1: Key Actions and Measures - The city will implement extraordinary measures for air pollution prevention, focusing on issues such as illegal truck entry, construction site dust, and restaurant oil smoke [1] - The "Five Major Special Actions" will be advanced to tackle these specific problems [1] Group 2: Urgency and Responsibility - There is a strong emphasis on the need for heightened awareness and reflection on the current situation, which includes delays in key tasks and prominent risk hazards [1] - The city administration is urged to adopt a rigorous approach, ensuring high-frequency scheduling, precise coordination, and strict supervision to facilitate smooth and rapid progress in ecological environment work [1] Group 3: Commitment to Improvement - The commitment to ecological environment protection is underscored by a call for extraordinary thinking, strength, and measures to achieve significant improvements [1] - A sense of responsibility and execution is highlighted, with a focus on continuous improvement in the city's ecological environment [1]

Core Points - The provincial government of Hainan held a special meeting to address the poor air quality performance of certain cities and counties from January to July, specifically regarding PM2.5 progress [2] - Five cities and counties, including Haikou, Ding'an, Qionghai, Ledong Li Autonomous County, and Wanning, were identified for failing to meet PM2.5 targets and have been warned to improve their air quality management [2][3] - The meeting emphasized the need for these local governments to recognize the severity of the situation, take responsibility, and mobilize relevant departments to improve air quality [3] Summary by Categories Air Quality Performance - From January to July, the air quality in five cities and counties did not meet the PM2.5 progress targets, with these areas failing to complete monthly goals three times or more [2] - The overall situation regarding the completion of annual targets is described as extremely severe [2] Government Response - A concentrated discussion was held to promote rectification of the air pollution prevention efforts in the identified areas [2] - Local government officials were required to acknowledge the issues and commit to improving air quality management practices [3] Challenges Identified - The five cities and counties face challenges such as slow progress in certain tasks, inadequate pollution control measures, and insufficient management of construction dust, industrial emissions, vehicle exhaust, and open burning [2]