Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **China Materials** industry, specifically the **steel sector** and its demand trends in China [1] Core Insights and Arguments - **Demand Recovery Expectations**: Market expectations for a demand recovery in the steel sector remain cautious, with the current pecking order of demand being aluminum > steel > copper > thermal coal > battery > gold > lithium > cement [1] - **Steel Production Data**: - For the week of August 8 to August 14, 2025, total steel production in China was **8.7 million tons (mt)**, reflecting a **0.3% week-over-week (WoW)** increase and a **12% year-over-year (YoY)** increase. - Breakdown of production: - Rebar: **2.2 mt** (-0.3% WoW, +32.5% YoY) - Hot-Rolled Coil (HRC): **3.2 mt** (+0.2% WoW, +4.7% YoY) - Cold-Rolled Coil (CRC): **0.9 mt** (+0.2% WoW, +7.5% YoY) [1] - **Year-to-Date Production**: - Total steel production from the beginning of the year to date was **282.7 mt**, down **0.5% YoY**. - Year-to-date production breakdown: - Rebar: **70.4 mt** (-2.6% YoY) - HRC: **105.5 mt** (+0.6% YoY) - CRC: **28.6 mt** (+2.3% YoY) [1] - **Steel Inventory Levels**: - As of August 14, 2025, China's steel inventory stood at **14.2 mt**, which is a **3% WoW increase** but a **16.7% YoY decrease**. - Inventory breakdown: - Steel mills: **4.3 mt** (+3% WoW, -8.6% YoY) - Traders: **9.9 mt** (+2.9% WoW, -19.8% YoY) - Total inventory of rebar, HRC, and CRC was **5.9 mt**, **3.6 mt**, and **1.4 mt** respectively [1] - **Apparent Consumption**: - For the week of August 8 to August 14, 2025, apparent consumption of steel in China was **8.3 mt**, down **1.7% WoW** but up **3.8% YoY**. - Breakdown of apparent consumption: - Rebar: **1.9 mt** (-9.9% WoW, -3.1% YoY) - HRC: **3.1 mt** (+2.8% WoW, +9.2% YoY) - CRC: **0.9 mt** (-0.6% WoW, +24.8% YoY) [1] - **Year-to-Date Apparent Consumption**: - Year-to-date apparent consumption of steel was **279.5 mt**, down **0.3% YoY**. - Year-to-date breakdown: - Rebar: **68.3 mt** (-4.1% YoY) - HRC: **105.1 mt** (+1.6% YoY) - CRC: **28.6 mt** (+4.6% YoY) [1] Additional Important Information - The report utilizes data from **Mysteel**, a key source for steel market information in China [1] - The analysis indicates a mixed outlook for the steel industry, with certain segments like HRC and CRC showing positive growth while overall production and consumption figures reflect a more cautious market sentiment [1]