China and US to Hold First Meeting of Economic and Trade Consultation Mechanism; Western Range Iron Ore Project Commences Production
- Premier Li Holds Phone Call with Canadian PM:
Chinese Premier Li Qiang held a phone conversation at invitation with Canadian Prime Minister Justin Trudeau. Li Qiang noted the significant potential for China-Canada cooperation, highlighting the strong economic complementarity between the two nations. He called for deepening collaboration in traditional sectors while expanding cooperation in emerging areas such as clean energy, climate change, and technological innovation, alongside increasing personnel exchanges and economic and trade interactions.
- Vice Premier He to Visit UK, Meet US Counterparts:
At the invitation of the UK government, He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, will visit the United Kingdom from June 8 to 13. During the visit, he will co-chair the first meeting of the China-US economic and trade consultation mechanism with US representatives.
- Steel Mill Maintenance Surges:
Maintenance halts at steel production lines increased significantly last week. A total of 16 lines were under maintenance, 9 more than the previous week. Estimated production impact (from halts and restarts) was 276,700 tonnes. This week's impact is forecasted at 296,300 tonnes, a weekly increase of 19,600 tonnes. [Details >>]
- Rio Tinto & Baowu Commission Western Range Iron Ore Project (June 6):
The Western Range Iron Ore Project, a joint venture between Rio Tinto and Baowu Resources, officially commenced production. The project has an annual capacity of up to 25 million tonnes of iron ore, bringing the hub's total capacity to 130 million tonnes per annum. The average iron ore grade is approximately 62%.
- MOFCOM on EU EV Probe & Rare Earths:
The Ministry of Commerce (MOFCOM) stated that price commitment consultations in the EU's electric vehicle case are in their final stage, requiring continued efforts from both sides. As a responsible major country, China fully considers the legitimate needs and concerns of all countries in the civilian sector. Export license applications for rare earth-related items are reviewed according to laws and regulations, with a certain number of compliant applications already approved.
- PBOC Gold Reserves Rise for 7th Month:
The People's Bank of China (PBOC) reported gold reserves of 73.83 million fine troy ounces (approx. 2,296.37 tonnes) at the end of May, an increase of 60,000 ounces (approx. 1.86 tonnes) from April. This marks the seventh consecutive month of gold accumulation.
- SAFE: Forex Reserves Edge Up in May:
China's foreign exchange reserves stood at $3.2853 trillion at the end of May 2025, according to the State Administration of Foreign Exchange (SAFE). This represents an increase of $3.6 billion (0.11%) from the end of April.
- Shenzhen Unveils 39-Point Plan to Boost Consumption:
Shenzhen has officially issued an action plan to revitalize consumption, outlining 39 specific measures. It includes support for consumption and cultural tourism projects to issue Real Estate Investment Trusts (REITs) in the infrastructure sector.
- Global Rate Cuts Intensify:
Major global economies have announced successive interest rate cuts recently: On June 5, the European Central Bank cut its three key rates for the Eurozone by 25 basis points each. On June 6, the Reserve Bank of India slashed its benchmark rate by 50 basis points. Also on June 6, the Bank of Russia cut its key rate by 100 basis points to 20%, its first reduction in nearly three years.
- Trump Criticizes Fed, Urges Big Cut:
Former US President Donald Trump stated that Federal Reserve Chair Jerome Powell ("Too late man") has been "a disaster" for the Fed. He noted that Europe has cut rates "10 times" while the US hasn't cut once, urging Powell to cut rates by "one point" (100 basis points).
- US May Non-Farm Payrolls Beat Expectations:
US non-farm payrolls increased by 139,000 in May, exceeding the estimate of 126,000. The April figure was revised down to 147,000 from 177,000.
- Tangshan Billet Prices Fall:
Over the past weekend, the price of Q235 150mm square billet in Tangshan's Qian'an district dropped cumulatively by 20 yuan/ton to 2,880 yuan/ton.
Portside iron ore transactions across major Chinese ports totaled 743,000 tonnes on June 6, down 22.8% day-on-day. Trading volume of construction steel among 237 major traders was 104,300 tonnes, up 4.9% day-on-day.
- June Hot-Rolled Strip Steel Output Plan Up:
The planned production volume for hot-rolled strip steel at 79 domestic mills in June 2025 is 9.4996 million tonnes. This compares to the May 2025 actual output of 9.3185 million tonnes, indicating an expected increase of 181,100 tonnes. [Details >>]
- Mongolian Coking Coal Prices Slide:
From early May to early June 2025, the market price of imported Mongolian coking coal showed a sustained downtrend. The price of Mongolian #5 raw coal at Ganqimaodu Port fell from 830 yuan/ton on May 7 to 705 yuan/ton on June 6, marking an accumulated decline of 15.06%. [Details >>]
- Geely Halts New Plant Construction Amid Overcapacity Warning:
Li Shufu, Chairman of Geely Holding Group, stated that the global auto industry suffers from "severe excess capacity." Consequently, Geely has decided against building any new automobile production plants to avoid redundant construction.
- Automotive Industry Consolidation Seen as Inevitable:
Wang Xia, President of the China Council for the Promotion of International Trade Automotive Committee, stated that signs like stagnant market capacity, declining profits, and increasing market concentration in China's auto industry are typical characteristics of market maturity. Coupled with China's high-speed economic development mechanisms and local governments' push for industrial dominance, a wave of mergers and acquisitions in the automotive sector is "inevitable."
- Changqiang Steel Commissions Pipe Project, Breaks Ground on New Lines (June 7):
Changqiang Steel held a ceremony marking the completion of its 127 Special Steel Pipe project and the groundbreaking of its Pipe Intelligent Manufacturing series. The new projects, with a total investment of 1 billion yuan, mainly include the 127 Intelligent Pipe Processing line, continuous caster technical transformation, refining furnace upgrades at the steelmaking plant, and a special/small bar production line.
- Temporary Pause in Some Local Appliance Subsidies:
Wu Xianjian, Deputy Secretary-General of the China Household Electrical Appliances Commercial Association, acknowledged that some regions have indeed paused or adjusted local appliance subsidy programs ("Guobu"). He attributed this mainly to temporary funding gaps during the transition period between subsidy allocations, noting some merchants might be exaggerating the situation. He expressed confidence the situation would improve soon.
- Domestic Silver Futures Hit Record High:
Since June, driven by strong international silver prices, the price of silver futures on the Shanghai Futures Exchange (SHFE) has continued to climb. The main contract price has currently reached a record high.