SMM

[China's Foreign Trade in Goods Grew 3.6% YoY in the First 11 Months] The General Administration of Customs announced on December 8 that China's foreign trade in goods maintained growth in the first 11 months of this year, with total imports and exports reaching 41.21 trillion yuan, up 3.6% YoY. Exports amounted to 24.46 trillion yuan, up 6.2%, while imports reached 16.75 trillion yuan, up 0.2%. Trade with Belt and Road Initiative partner countries totaled 21.33 trillion yuan, up 6%, accounting for 51.8% of China's total foreign trade value. Imports and exports by private enterprises reached 23.52 trillion yuan, up 7.1% YoY. In November, China's foreign trade growth rebounded, with total imports and exports reaching 3.9 trillion yuan, up 4.1% YoY. Exports were 2.35 trillion yuan, up 5.7%, while imports were 1.55 trillion yuan, up 1.7%.

[Shandong Province's "16th Five-Year Plan" Recommendations: Comprehensively Promote Optimization and Upgrading of Industries Such as Steel, Petrochemicals, and Automobiles, and Increase the Proportion of Advanced Capacity] The recommendations of the Shandong Provincial Committee of the Communist Party of China on formulating the 16th Five-Year Plan for Shandong Province's national economic and social development have been released. Among them, it is mentioned to optimize and upgrade traditional industries. Seize the critical period of reducing quantity and improving quality in traditional industries, promote high-end quality enhancement, digital and intelligent empowerment, and green transformation in traditional advantageous industries such as metallurgy, chemicals, machinery, light industry, textiles and apparel, mining, and construction materials. Adhere to the principle of establishing before abolishing, effectively resolve structural contradictions, comprehensively promote optimization and upgrading of industries such as steel, petrochemicals, and automobiles, and increase the proportion of advanced capacity. Scientifically optimize the layout of major productive forces, strengthen and enhance the Rizhao-Linyi and Laiwu-Tai'an steel bases, build and improve the "one base, two clusters" petrochemical industry development pattern, extend the aluminum deep processing industry chain, and consolidate the position as a key national industrial base. Implement higher-level tech

[Shandong Province's "16th Five-Year Plan" Recommendations: Accelerate the Establishment of a New Real Estate Development Model and Improve a Housing System Featuring Multi-Supplier Provision, Multi-Channel Support, and Equal Emphasis on Rental and Purchase] The Communist Party of China Shandong Provincial Committee's recommendations for formulating Shandong Province's 14th Five-Year Plan for National Economic and Social Development have been released, which mention improving the housing supply and security system. The plan calls for accelerating the establishment of a new real estate development model and improving a housing system characterized by multi-supplier provision, multi-channel support, and equal emphasis on rental and purchase to promote high-quality development in the real estate sector. It aims to steadily develop affordable rental housing and subsidized sale housing, expedite the participation of flexible employment personnel in the housing provident fund system, and focus on addressing the housing issues of new urban residents, young people, urban wage-earning groups, and various families in difficulty. The recommendations also emphasize optimizing the linkage of factors such as "people, housing, land, and capital," and improving a dynamic adjustment mechanism that connects residential land supply with changes in the urban population and existing housing stock. Efforts will be made to enhance the supply of high-quality land parcels, improve the entire chain o

The annual rate of the US core PCE price index unexpectedly pulled back to 2.8% in September, hitting a three-month low, while market expectations were for it to record 2.9% for the third consecutive month.

On December 8, the SMM #1 refined nickel price was 117,500-122,900 yuan/mt, with an average price of 120,200 yuan/mt, up 150 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 4,800-5,100 yuan/mt, with an average premium of 4,950 yuan/mt, up 50 yuan/mt from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -200-400 yuan/mt.

[SMM Aluminum Express News] A major alumina refinery project in Banten, Indonesia, is moving forward. PT Banten Anugerah Industri Kemajuan and the state electricity company, PLN, have signed a Memorandum of Understanding for a massive new power supply of 1,920 MVA. The power will be provided in two phases: 960 MVA by 2026, increasing to the full 1,920 MVA by 2027. This reliable, large-scale electricity supply was a critical factor in the company's investment decision for the global-scale facility. PLN will coordinate all technical preparations, from system studies to building the necessary transmission infrastructure.

[Copper cathode rod November inventory level] In November, days of raw material inventories for copper cathode rod enterprises decreased by 0.72 days MoM to 1.76 days, while days of finished product inventories decreased by 2.21 days MoM to 3.93 days. The main reasons were that after the operating rate rebounded, enterprises prioritized consuming existing inventories, and raw material procurement was maintained on a just-in-time basis; after the price correction, destocking focused on finished product inventories, and coupled with high volatility in current copper prices, enterprises strictly controlled finished product inventory levels.

[Copper cathode rod November operating rate] The operating rate in the copper cathode rod industry was 66.65% in November, up 5.5 percentage points MoM, but down 8.03 percentage points YoY. The main reasons were that enterprises resumed normal production one after another, and downstream restocked on dips after a slight correction in copper prices, which collectively drove the operating rate rebound. SMM expects the operating rate to drop slightly by 1.58 percentage points in December, mainly due to financial constraints downstream at year-end and rising copper prices in December suppressing new orders. However, some enterprises' push for annual target at year-end limited the decline in the operating rate.

SMM December 8 News – According to market rumors obtained by SMM, a major smelter in northern China recently conducted a public tender for several tons of crude cadmium and refined cadmium, which was successfully concluded. Unverified market sources indicate that the final transaction price for refined cadmium was at a discount of RMB 1,400 yuan per ton to the benchmark price, while crude cadmium was transacted at a discount of RMB 3,000 yuan per ton to the benchmark. Market participants noted that although cadmium prices currently show a weakening trend and downstream buying interest remains lackluster, the successful conclusion of this tender may reflect that actual market demand is not as weak as perceived.