Supply - The average operating rate of high furnaces decreased by 1.3 percentage points to 81.6%, compared to a 0.1 percentage point decrease year-on-year[2] - The asphalt operating rate fell by 3.1 percentage points to 26.3%, marking a new low for recent years[2] - The cement dispatch rate decreased by 1.8 percentage points to 33.4%, also the lowest in recent years[2] Demand - New housing sales in 30 major cities increased by 8.0% month-on-month but decreased by 31.7% year-on-year, remaining at the lowest level in recent years[3] - Second-hand housing sales in 18 key cities rose by 20.8% month-on-month but fell by 14.9% year-on-year[3] - Passenger car sales averaged 60,000 units per day, down 1.6% month-on-month and 11.4% year-on-year, primarily due to reduced coverage and support of vehicle replacement subsidies[3] Prices - The average price of rebar increased by 1.6% month-on-month, with the year-on-year decline narrowing to 4.7%[4] - The average price of pork decreased by 1.0% to approximately 17.9 CNY/kg, with a year-on-year decline of 24.0%[6] - The average price of cement fell by 0.8%, with a year-on-year decline expanding to 23.8%[4] Inventory - Steel inventory decreased by 6.0% month-on-month, while the year-on-year increase was 21.8%[7] - The average coal inventory at coastal power plants rose by 2.0% month-on-month but decreased by 5.4% year-on-year[7] - Asphalt inventory fell by 7.9% month-on-month, with a year-on-year increase of 11.0%[7] Liquidity - The central bank implemented a net liquidity injection of 38.98 billion CNY through open market operations in the past half month[9] - The issuance of government bonds totaled 12,026 billion CNY, with a month-on-month decrease of 382.7 billion CNY[9] - The yield on 10-year government bonds rose by 2.2 basis points to 1.844%[9]

CPI Analysis - August CPI decreased by 0.4% year-on-year, lower than the expected -0.2%, marking a six-month low[1] - Food prices contributed to the CPI decline, with a year-on-year drop of 4.3%, impacting CPI by 0.8 percentage points[2] - Core CPI rose by 0.9% year-on-year, the highest in 18 months, indicating a continuous increase for six months[2] PPI Analysis - August PPI decreased by 2.9% year-on-year, an improvement from the previous -3.6%, aligning with expectations[3] - PPI ended an eight-month decline, with a month-on-month stabilization, reflecting seasonal averages[3] - The "anti-involution" effect led to price increases in coal, black metals, and glass industries, contributing to the PPI improvement[3] Future Outlook - September CPI is likely to remain negative, with an annual average around 0% due to ongoing pressures from energy and pork prices[5] - PPI is expected to continue narrowing its decline in September, but weak export prices and insufficient consumer demand will constrain recovery[5] - The overall economic environment suggests a cautious approach, with policies expected to support but not significantly boost growth in the short term[6]