Group 1: Steel Consumption Performance - Overall steel consumption has been poor, with rebar consumption down 4.5% year-on-year and wire rod down 7.8% [1] - Despite the decline in construction steel consumption, plate consumption has increased, supporting high furnace iron output [2] - The average daily transaction volume of building materials in September is only slightly up by 1% compared to previous years, indicating weaker demand during the peak season [3] Group 2: Production and Profitability - Steel mills are facing significant profit pressure due to falling steel prices and rising raw material costs, with rebar profits nearing a loss state [1][4] - High furnace iron output remains elevated at 237.2 million tons per day, despite poor steel consumption, due to strong plate demand [2] - Steel mills may need to reduce production to restore profitability, but this is contingent on various factors, including potential government policies [4][5] Group 3: Market Dynamics and Future Outlook - The market is currently in a phase of unclear trends, with both upward and downward pressures on steel prices [7] - The potential for government policies to stimulate consumption or enforce production cuts could significantly impact the steel market [6][7] - The steel industry is undergoing a "反内卷" (anti-involution) movement aimed at improving product quality and managing competition [7]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - Steel prices rebounded with oscillations this week, supported by the cost side. The Fed's interest - rate cut expectation was fulfilled, having a small impact on the black market. The article in Qiushi Journal boosted the coking coal price, providing cost support for steel. Steel's off - season trading is nearly over, but fundamental pressure remains, and steel is expected to fluctuate within a range. Track the demand improvement after price increases [5][67]. - Iron ore prices fluctuated at a high level this week. Supply: shipping increased but arrivals decreased, and port inventories declined. Demand: hot metal production remained high, pre - holiday restocking demand provided support, and the US easing cycle was favorable for risk assets. However, downstream steel demand showed no obvious improvement, and price increases require fundamental support. Short - term ore prices are expected to continue to oscillate strongly, with attention to adjustment pressure after the end of restocking at the end of the month [5][69]. 3. Summary by Directory 3.1 Report Summary - **Market Focus**: China and the US reached a basic framework consensus on resolving the TikTok issue. Xi Jinping's article on promoting the unified market was published. The Fed cut the federal funds rate by 25 basis points to 4.00% - 4.25%, and is expected to cut twice more this year [5]. - **Key Data**: China's August industrial and consumption data missed expectations; US August industrial and retail data were better than expected. In early September, key steel enterprises' daily crude steel output increased by 7.2% [5]. - **Main Views**: Steel is expected to oscillate in a range, and iron ore is expected to oscillate strongly in the short term [5]. 3.2 Multi - Empty Focus - **For Steel (Thread)**: Bullish factors include positive market sentiment from the Qiushi article, cost support from rising raw material prices, and improved demand and reduced inventory pressure. Bearish factors are the market adjustment after the Fed's rate cut and weakening economic data in August, and the decline in hot - rolled coil apparent demand [8]. - **For Iron Ore**: Bullish factors are positive market sentiment, cost support, high hot metal production, and pre - holiday restocking demand. Bearish factors are the market adjustment after the Fed's rate cut, weakening economic data in August, and increased iron ore shipping [9]. 3.3 Data Analysis - **Macro**: The article in Qiushi Magazine boosted industrial product sentiment. The Fed cut rates, and the market expected another cut in October. August's social financing and economic data were weak, and policies are needed [10][12][18]. - **Terminal**: Real estate investment and sales were weak. August's auto production and sales were stable, with new - energy vehicles growing rapidly. August's excavator production and sales increased, and ship exports grew [24][29][32]. - **Supply**: In the first eight months, China's crude steel and pig iron production decreased year - on - year [33]. - **(Thread)**: Spot prices rose slightly, and the basis shrank. The steel mill profitability rate decreased. Blast furnace开工率 increased, and electric furnace开工率 decreased. Steel output decreased slightly. Thread apparent demand improved seasonally, and hot - rolled coil demand fluctuated. Thread inventory decreased, and hot - rolled coil inventory increased. The coil - to - thread spread declined [35][37][43]. - **(Iron Ore)**: Spot prices fluctuated slightly, and the basis widened. In August, imports increased slightly, and shipping increased this week. Arrivals decreased this week. Hot metal production was high. Port inventory decreased, and dredging increased. Steel mills are still restocking [51][55][58]. 3.4后市研判 - **Steel**: Steel is expected to oscillate in a range, and the demand after price increases needs to be tracked [67]. - **Iron Ore**: Iron ore is expected to oscillate strongly in the short term, and attention should be paid to the adjustment pressure after the end of restocking [69].

Core Insights - The recent meeting aimed to enhance the activation of existing assets and expand effective investments while discussing the high-quality development of state-owned enterprises [1][2] - The establishment of the "Central State-Owned Enterprise Asset Disposal and Activation Zone" is intended to improve the efficiency of state capital allocation through market-oriented and professional methods [2] Group 1 - The meeting was hosted by the Capital Investment Operation Professional Committee of the China Property Association, with the goal of promoting the construction of a unified national market [1] - The Executive President of the China Property Association emphasized the need for a high-standard property market ecosystem that is standardized, efficient, and collaborative [1] - The Deputy General Manager of the National Development Investment Group highlighted the importance of precise asset activation to release potential [1] Group 2 - The "Central State-Owned Enterprise Asset Disposal and Activation Zone" was launched to facilitate the efficient flow of resources and optimize the allocation of various factors [2] - Over 130 quality project resources were released by more than 20 central enterprises, covering key sectors such as energy, power, manufacturing, transportation, finance, and business services [2] - A total of 13 key projects from 7 central enterprises were selected for a live presentation, showcasing their core advantages and market prospects [2]

Core Viewpoint - The meeting emphasized the importance of addressing environmental safety hazards related to heavy metals and livestock farming pollution, while promoting high-quality development in the non-ferrous metal industry, particularly key metals [1][2]. Group 1: Environmental Safety and Pollution Control - The meeting acknowledged the progress made in the inspection and remediation of heavy metal environmental safety hazards and livestock farming pollution [2]. - It was highlighted that the inspection and remediation work has entered a critical phase, requiring all levels of government to enhance their sense of responsibility and urgency [2][3]. - A focus on risk assessment was emphasized, with a classification system for immediate and long-term rectifications to ensure effective progress [3]. Group 2: Industry Development and Policy Implementation - The meeting called for the acceleration of the construction of a comprehensive pilot zone for the high-quality development of key metals in Nandan, along with the integration of mining rights [4]. - There is a push for the establishment of a unified national market, promoting the non-ferrous metal industry and engaging in resource cooperation with ASEAN countries [4]. - The need for a robust support system, including policy, standards, technology, and talent resources, was stressed to facilitate the high-quality development of the non-ferrous metal industry [4]. Group 3: Accountability and Performance Evaluation - The meeting underscored the importance of accountability, with a focus on addressing issues of inaction or misconduct among officials [3][4]. - It was proposed that the performance of officials in the inspection and remediation efforts should be a key criterion for evaluation and selection [4].

Group 1: Domestic Policy Developments - The article published in "Qiushi" emphasizes the importance of building a unified national market as a major decision by the central government, necessary for constructing a new development pattern and enhancing international competitiveness [9][10] - The State Council meeting led by Premier Li Qiang discussed the implementation of the national ecological environment protection conference, highlighting that the construction of a beautiful China is a long-term systematic project requiring sustained efforts [11][12] - The People's Bank of China adjusted the 14-day reverse repurchase operation to a multi-price bidding system to maintain liquidity in the banking system [22][25] Group 2: Economic Indicators and Market Analysis - In the A-share market, major indices remained stable in the third week of September, with the CSI 100 and ChiNext indices rising by 1.08% and 2.34% respectively, while the Shanghai Composite Index fell by 1.3% [23] - The central bank's net fund injection was 11,923 billion yuan, indicating a slight tightening of liquidity in the market [3][26] - Economic data for August showed a year-on-year industrial value-added growth of 5.2%, while retail sales increased by 3.4%, suggesting a need for counter-cyclical policy adjustments [26][30] Group 3: International Policy Developments - President Xi Jinping's phone call with President Trump focused on stabilizing Sino-US relations and addressing mutual concerns, indicating a constructive dialogue [14][15] - The Federal Reserve's decision to lower interest rates by 25 basis points after nine months reflects a shift in monetary policy, with the target range now at 4.00%-4.25% [16][19] - The Fed's updated economic growth forecast for 2025 was raised by 0.2 percentage points to 1.6%, indicating a more optimistic outlook [19][21]

Group 1 - The "old-for-new" policy has been adjusted in at least 19 provinces and cities since July, primarily to smooth the use of subsidy funds, with a total of 690 billion yuan allocated for the third batch of subsidies [2][10][12] - Most provinces and cities have implemented limit management on subsidy amounts, with 16 out of 19 provinces mentioning this, such as Shanxi's daily allocation for various categories [3][11] - Some provinces have reduced subsidy standards, like Guizhou, which lowered the subsidy for purchasing new energy vehicles from 16% to 10% [3][11] Group 2 - The Huachuang Macro WEI index remains high at 7.53% as of September 14, indicating an upward trend in economic activity [4][16] - Real estate sales have shown an increase, with a 15% year-on-year growth in housing transactions in 67 cities as of September 19 [4][23] - Retail sales of passenger cars have maintained low growth, with a year-on-year increase of only 1% in the second week of September [5][23] Group 3 - The construction sector shows fluctuations, with asphalt plant operating rates at 34.4%, up 8.5% year-on-year [5][26] - The average land premium rate remains low at 3.75% for the first two weeks of September [5][23] - The port container throughput remains high, with a cumulative year-on-year increase of 10.9% as of September 14 [5][35] Group 4 - The central government is addressing "involution" issues, emphasizing the need to regulate low-price competition among enterprises [5][27] - The automotive industry has introduced a stable growth plan, focusing on controlling payment terms [5][27] - Various industries, including coal and steel, are under scrutiny for capacity management and compliance with regulations [5][27]

Core Viewpoint - The government has initiated comprehensive rectification of excessive competition across multiple industries since the second half of last year, aiming to promote the recovery of industrial product prices, restore industry profitability, and optimize industrial structure. In August, the PPI (Producer Price Index) showed signs of stabilization, but investment and commodity consumption have significantly slowed, indicating weak growth momentum in terminal demand [1][2]. Group 1: Supply-Side Dynamics - The current capacity governance emphasizes legal compliance and is characterized by a steady pace of capacity reduction, with a focus on exiting excess low-end outdated capacities in industries such as coal, steel, and photovoltaics. Policies are dense in these sectors, which directly influence the sustainability of price recovery [4][5]. - Approximately 60% of industries are currently at historical profit margins below the 40th percentile, indicating a need for improvement in asset turnover and overall revenue growth to enhance asset return rates [4][6]. - The PPI's fluctuation is significantly influenced by industries such as mining, non-ferrous and ferrous metal smelting, and chemical manufacturing, with notable price increases in coal and water supply sectors [3][4]. Group 2: Demand-Side Challenges - Economic momentum weakened in August, and the effectiveness of stimulus policies on consumer goods is uncertain, particularly as the replacement cycle for durable goods is long, which may diminish the impact of such policies [5][6]. - Real estate and infrastructure investments remain crucial for growth, but both sectors have shown negative year-on-year changes, with real estate down by 12.9% and infrastructure up by only 5.4% in the first eight months of the year [6][8]. - The recovery in the real estate market is expected to take time, and the effectiveness of existing PPP projects and new financial tools will be critical for stabilizing infrastructure investment in the fourth quarter [6][8]. Group 3: Price Transmission and Industry Specifics - The price transmission from upstream to downstream industries is contingent on terminal demand conditions, with structural demand in specific sectors like steel and photovoltaics showing potential for marginal recovery [5][9]. - The analysis of price transmission in the black building materials chain indicates significant price declines in raw materials, while the photovoltaic sector has experienced varied price movements, reflecting the complexities of market dynamics [9][10].

Report Information - Report Name: Iron Alloy Industry Risk Management Daily Report - Date: September 23, 2025 - Author: Chen Mintao (Z0022731) [1] Industry Investment Rating - Not provided in the report Core Viewpoints - The current core contradictions affecting the iron alloy market include the contradiction between high supply and weak demand, cost support with electricity price hikes and manganese ore supply disturbances, the contradiction between the improvement of the term structure and capital withdrawal, and the contradiction between anti - involution expectations and weak reality [4][5] - There are both positive and negative factors in the iron alloy market. Positive factors include potential policy - related supply contractions and inventory reductions, while negative factors include weak downstream demand and inventory increases in some products [7][8][9] Summary by Directory Iron Alloy Price Forecast and Hedging - **Price Range Forecast**: The monthly price range forecast for silicon iron is 5300 - 6000, with a current 20 - day rolling volatility of 12.68% and a 3 - year historical percentile of 18.5%. For silicon manganese, the price range is also 5300 - 6000, with a volatility of 12.10% and a 3 - year historical percentile of 12.9% [3] - **Hedging Strategies**: For inventory management with high finished - product inventory, it is recommended to short SF2511 and SM2601 futures at a 15% hedging ratio, with an entry range of 6200 - 6250 for SF and 6400 - 6500 for SM. For procurement management with low regular inventory, it is recommended to buy SF2511 and SM2601 futures at a 25% hedging ratio, with an entry range of 5100 - 5200 for SF and 5300 - 5400 for SM [3] Core Contradictions - **High Supply and Weak Demand**: Although production profits initially declined in early September, they have now recovered, and production remains at a high level. However, downstream demand has not improved significantly during the peak season, and there may be a situation of "peak season without prosperity" [4] - **Cost Support**: Ningxia's electricity price has been raised by 2 cents to 0.4 yuan/kWh, and the silicon - iron spot price in some areas is lower than the cost price, forming a cost - bottom expectation. There are rumors of a possible reduction in Gabon's manganese ore shipments in October, but currently, the supply is relatively sufficient [4] - **Term Structure and Capital**: The term structure of iron alloy has improved, with some contracts changing from contango to backwardation, which is favorable for short - term price increases. However, the term structure of coking coal has not improved, and the contango has deepened. Meanwhile, the iron alloy's open interest has been declining for two consecutive weeks [4] - **Anti - Involution Expectations**: There are still expectations of supply - side contractions, but there is a lack of substantial actions, and there is a high risk of price surges followed by declines [5] 利多解读 (Positive Factors) - **Silicon Iron**: There are rumors of an increase in the standard for metallurgical industry submerged arc furnaces to 33000KVA. An important article in the 18th issue of Qiushi magazine may help regulate the market. Silicon - iron enterprise inventory and total inventory have decreased, with a 9.3% and 0.53% month - on - month decline respectively [7] - **Silicon Manganese**: The government's strict control over high - energy - consuming industries may lead to industrial structure adjustment and upgrading. There are rumors of a reduction in Gabon's manganese ore shipments in October, which may affect the cost of manganese - silicon [7] 利空解读 (Negative Factors) - **Silicon Iron**: The silicon - iron enterprise operating rate remains high, while downstream demand is weak [8] - **Silicon Manganese**: In the long run, the real - estate market is sluggish, and there are doubts about the growth of steel terminal demand. Silicon - manganese enterprise inventory has increased by 19.24% month - on - month, and the total inventory has increased by 5.97% month - on - month. Hebei Iron and Steel Group's September silicon - manganese price has decreased by 200 yuan/ton compared to August [9] Daily Data - **Silicon Iron**: On September 22, 2025, the basis in Ningxia was 82, with a daily increase of 118 and a weekly increase of 152. The silicon - iron warehouse receipts decreased by 243 compared to the previous day [10] - **Silicon Manganese**: On September 22, 2025, the basis in Inner Mongolia was 210, with a daily increase of 94 and a weekly increase of 86. The silicon - manganese warehouse receipts decreased by 629 compared to the previous day [11] Graphical Data - The report includes graphs of the term structure spreads of silicon iron, silicon manganese, and coking coal, as well as seasonal graphs of market prices, basis, and inventory of silicon iron and silicon manganese [12][15][25]

1. Report Industry Investment Rating No information regarding the industry investment rating is provided in the report. 2. Core Viewpoints of the Report The report comprehensively analyzes various policies from September 5th to September 20th, 2025, including macro - economic, fiscal, monetary, financial regulatory, real estate, and tariff policies. It aims to provide an overview of the current economic policy environment and potential impacts on different sectors [1][2][3]. 3. Summary by Directory 3.1 Macro - economic Tone - The government is promoting the construction of a unified national market and expanding service consumption. Measures include rectifying disorderly competition, boosting consumer spending with about 420 billion yuan in fiscal support driving over 2.9 trillion yuan in sales, and promoting private investment [1][11][12] - The State Council has deployed measures to promote private investment, aiming to expand investment space, ensure fair competition, and support private capital in new areas [13][16] 3.2 Fiscal Policy - The fiscal policy is more active, with a focus on using special bonds to repay government arrears to enterprises. As of September 19th, 2025, 1.1506 trillion yuan of special bonds have been issued, exceeding the annual limit of 800 billion yuan [17] - Over 60% of financing platforms have exited, and 4 trillion yuan of the 6 - trillion - yuan special debt quota has been issued. The government debt risk is under control, and it plans to issue part of the 2026 local government debt quota in advance [18][19] 3.3 Monetary Policy - The central bank has optimized and simplified the evaluation indicators for primary dealers, which helps to improve the transmission of interest rates and strengthen the benchmark nature of the Treasury yield curve [21] - The 14 - day reverse repurchase operation has been adjusted to a fixed - quantity, interest - rate tender, and multiple - price winning bid method, further strengthening the policy interest rate status of the 7 - day reverse repurchase [22] - The global financial stability system faces challenges such as fragmented regulatory frameworks, insufficient regulation in digital finance, and weak regulation of non - bank intermediaries [23] 3.4 Financial Supervision - A draft for public comments on the management regulations of public fund sales fees has been released, and the second batch of science and technology innovation bond ETFs will be listed on September 24th [26] - New regulations for insurance, trust, and securities industries have been introduced, including the "Insurance Company Capital Guarantee Management Measures", the "Trust Company Management Measures", and the start of the self - evaluation of securities company classification [27][28] - The controlling rights of three AMC companies have been transferred to Central Huijin. There are concerns about the liquidity risk of funds concentrated in the technology sector, and the proportion of cash wealth management in August reached a new low for the year [29] 3.5 Real Estate Policy - Shenzhen has relaxed purchase restrictions in multiple districts, and Shanghai has exempted first - home buyers from property tax under certain conditions [32] - Shenzhen has released a draft for public comments on the housing provident fund management measures, and Beijing and Shanghai have adjusted the upper and lower limits of the monthly housing provident fund payment base [33] 3.6 Tariff Policy - Chinese and US leaders had a phone call, and the two sides reached a basic framework on issues such as TikTok. China opposes the politicization of technology and economic and trade issues [36][37]

Core Viewpoint - The National Taxation Administration of China has announced progress on the third round of inspections, emphasizing the need for rectification in tax-related issues concerning investment attraction and enhancing regulation of emerging tax sources [1] Group 1: Taxation and Regulation - The administration aims to address violations in tax-related issues linked to investment attraction [1] - There is a focus on strengthening regulation of the platform economy and other emerging tax sources [1] - The administration is committed to advancing the revision of tax collection laws and standardizing tax incentive policies [1] Group 2: Economic Development Support - The initiatives are designed to support the construction of a unified national market and accelerate the development of new productive forces [1] - The measures are also aimed at promoting high-level opening up to the outside world, thereby better serving the overall economic and social development [1]