On the morning of June 6 local time, the Western Range iron ore project (Western Range), jointly developed by Baowu and Rio Tinto Group, was fully completed and put into operation, marking the full-scale operational phase of this major Sino-Australian resource cooperation project. The designed annual capacity of the Western Range iron ore mine is 25 million mt , providing a 20-year resource guarantee for the Paraburdoo mining hub. The first batch of ore from the project was processed through the production system of the Western Range project by the end of March this year. With a total investment of US$2 billion, the Western Range iron ore project was jointly developed by Rio Tinto (with a 54% stake) and China Baowu (with a 46% stake), and was completed on time and within budget. The project construction included a primary crushing station and an 18-kilometer conveyor system connecting it to the existing beneficiation plant in Paraburdoo. Hu Wangming, Chairman of China Baowu Group, attended and delivered a speech at the inauguration ceremony held in Western Australia, Australia. Hon Roger Cook, Premier of Western Australia; Madeline King, Australian Minister for Resources; Long Dingbin, Chinese Consul General in Perth; Gao Feng, Minister Counsellor at the Chinese Embassy in Australia; Shi Bing, Chairman of Baowu Resources Co., Ltd.; Jakob Stausholm, CEO of Rio Tinto Group; Simon Trott, CEO of Rio Tinto's Iron Ore business; as well as representatives from the government and the joint venture company, jointly attended this significant event. Robyn Hayden (née Tommy), Chairperson of the Board of the Yinhawangka Aboriginal Corporation, attended the inauguration ceremony alongside several Yinhawangka Traditional Owners. Roger Cook stated that the inauguration of the Western Range iron ore mine is a significant milestone, with great significance for the economic development of Western Australia. Our government will continue to support the development of the resources industry, as it not only creates high-quality jobs for the people of Western Australia but also safeguards our standard of living. Madeline King stated that the inauguration of the Western Range iron ore mine is exciting news for the Pilbara region, Western Australia, Traditional Owners, and the entire nation. The Pilbara is the engine of Australia's economy, and projects like Western Range will ensure that this engine continues to drive Australia's future. The partnership between Rio Tinto and Baowu in the Pilbara region dates back to 2002, when the two parties established the Bao-HI Joint Venture to jointly develop the East Range iron ore mine in the Hamersley Ranges. Hu Wangming stated that the success of the Western Range project is not only a milestone in Sino-Australian resource cooperation but also a vivid portrayal of collaboration among multiple parties to overcome challenges. The Western Range project is not only a core fulcrum in the global resource deployment of China Baowu and Rio Tinto Group, but also a model project for China-Australia economic and trade cooperation. The exploration by Baowu and Rio Tinto in areas such as green and low-carbon development and collaborative innovation has not only set a benchmark for the industry but also contributed wisdom and strength to the sustainable development of global resources. We are willing to work hand in hand with the Western Australian government, Indigenous communities, and partners from all walks of life to build an inclusive and sustainable cooperation ecosystem. We will also continue to fulfill our corporate responsibilities, drive industrial upgrading through technological innovation, and inject new momentum into regional prosperity and the stability of the global industry chain. Jakob Stausholm stated that the commissioning of the Western Range iron ore project is an important step for Rio Tinto to extend its mining layout in the Pilbara region. It also brings a more promising future to Paraburdoo, one of our earliest mining centers that has been in operation since 1972. I am particularly proud of our cooperation with the Yinhawangka people on the Western Range project, and we will continue to maintain close cooperation in the future. Our cooperation with Baowu ensures that our largest customer can directly benefit from the stable and exclusive supply of Rio Tinto's world-leading Pilbara Blend ore. It is understood that the Western Range iron ore project is one of a series of mine replacement projects being advanced by Rio Tinto in the Pilbara region, with a total annual capacity of approximately 130 million mt for this series of projects . In addition to the investment in the Brockman Syncline 1 project (US$1.8 billion) announced on March 6, 2025, the development work for the Hope Downs 1 and West Angelas maintenance projects is also in the approval process. Over the next three years (2025-2027), Rio Tinto expects to invest more than US$13 billion in new mine development, plants, and equipment. Over the past three years (2022-2024), Rio Tinto has already invested approximately US$8.5 billion in the Pilbara region. Rio Tinto is also advancing the pre-feasibility study for the Rhodes Ridge project , which is one of the world's largest undeveloped high-grade iron ore deposits, with a planned initial annual capacity of 40 million mt and a target to commence production before 2030.

According to Rio Tinto Group: Rio Tinto Group has announced the official commissioning of its latest iron ore project, the Western Range iron ore project. Western Australian Premier Roger Cook, Australian Federal Minister for Resources Madeleine King, traditional landowners from the Yinhawangka people, and senior executives from Rio Tinto Group and its joint venture partner, China Baowu Steel Group, jointly witnessed this significant milestone. Western Range iron ore project: It has a designed annual capacity of 25 million mt; It will provide a 20-year resource guarantee for the Paraburdoo mining hub; With a total investment of $2 billion, it is a joint venture development between Rio Tinto (54% stake) and China Baowu (46% stake); The project construction includes a primary crushing station and an 18-kilometer conveyor system connecting it to the existing beneficiation plant in Paraburdoo; The new mine will provide stable employment for over 880 permanent and fly-in-fly-out employees at Paraburdoo; Meanwhile, the Western Range iron ore project will not only support the sustainable development of Paraburdoo town but also further promote the economic development of Western Australia and Australia through royalties and related taxes. Robyn Hayden (née Tommy), Chairperson of the Board of the Yinhawangka Aboriginal Corporation, attended the commissioning ceremony alongside several traditional landowners from the Yinhawangka people. Western Australian Premier Roger Cook, Australian Federal Minister for Resources Madeleine King, China Baowu Group Chairman Hu Wangming, Baowu Resources Chairman Shi Bing, Rio Tinto Group CEO Jakob Stausholm, Rio Tinto Group Iron Ore CEO Simon Trott, as well as government and joint venture company representatives, also attended this important event. Western Australian Premier Roger Cook stated: The commissioning of the Western Range iron ore project is a significant milestone with great importance for the economic development of Western Australia. Our government will continue to support the development of the resources industry, as it not only creates high-quality jobs for the people of Western Australia but also safeguards our standard of living. Australian Federal Minister for Resources Madeleine King stated: The commissioning of the Western Range iron ore project is exciting news for the Pilbara region, Western Australia, traditional landowners, and the entire nation. The Pilbara is the engine of Australia's economy, and projects like Western Range will ensure that this engine continues to drive Australia's future. The Western Range iron ore project is Rio Tinto's first project to jointly design a Social, Cultural, and Heritage Management Plan (SCHMP) with the traditional landowners of the Yinhawangka people. In accordance with the Social, Cultural and Heritage Management Plan agreed with the Yinhawangka Aboriginal Corporation in 2022, the Western Range iron ore project has been designed and developed with the protection of significant local cultural and heritage values at its core. Robyn Hayden, Chair of the Yinhawangka Aboriginal Corporation, said, "For the Yinhawangka people, the land means everything—it holds our spirits, our laws, and the responsibility to protect it passed down through generations. The commencement of production at Western Range marks a shift in how our cultural heritage is recognized and respected. We acknowledge Rio Tinto's efforts to change the way they interact with us and the actions they have taken to build a stronger and more transparent partnership. This is a profound starting point—we are ready to work together." The partnership between Rio Tinto and Baowu in the Pilbara region dates back to 2002, when the two parties established the Bao-Hl Joint Venture to jointly develop the East Range iron ore project in the Hamersley Ranges. Hu Wangming, Chairman of Baowu Group, said, "The success of the Western Range project is not only a milestone in China-Australia resource cooperation but also a vivid portrayal of multi-party collaboration and overcoming difficulties. The Western Range project is not only a core fulcrum in the global resource layout of China Baowu and Rio Tinto Group but also a model project for China-Australia economic and trade cooperation. Baowu and Rio Tinto's exploration in areas such as green and low-carbon development and collaborative innovation has not only set a benchmark for the industry but also contributed wisdom and strength to the sustainable development of global resources. We are willing to work hand in hand with the Western Australian government, Indigenous communities, and partners from all walks of life to build an inclusive and sustainable cooperation ecosystem. We will also continue to fulfill our corporate responsibilities, drive industrial upgrading through technological innovation, and inject new momentum into regional prosperity and the stability of the global industry chain." Jakob Stausholm, CEO of Rio Tinto Group, said, "The commencement of production at Western Range is an important step in extending Rio Tinto's mining layout in the Pilbara region and also brings longer-term development prospects to Paraburdoo, one of our earliest mining centers, which has been in operation since 1972. I am particularly proud of our collaboration with the Yinhawangka people on the Western Range project, and we will continue to maintain close cooperation in the future. Our partnership with Baowu ensures that our largest customer can directly benefit from a stable and exclusive supply of Rio Tinto's world-leading Pilbara Blend ore." The first batch of ore was processed through the production system of the Western Range project by the end of March this year.

On May 26, the Australian Anti-Dumping Commission issued Notice No. 2025/043, stating that in response to an application submitted by Echeng Steel Co., Ltd., a subsidiary of Baowu Group, a Chinese exporter, it had initiated an anti-dumping review investigation into rebar with a diameter of 50 millimeters or less exported to Australia, to examine whether variable factors related to the existing anti-dumping measures should be changed. The dumping investigation period for this case was from April 1, 2024, to March 31, 2025. The Australian Anti-Dumping Commission is expected to complete the basic facts report of this case no later than September 15, 2025, and submit the final determination report to the Australian Minister for Industry and Science no later than October 28, 2025.

[Fierce market competition may lead to a slight decline in the price of grain-oriented silicon steel next week] Looking ahead, the pressure on the supply side will continue to emerge. With the production release of enterprises such as Baowu Group and Shougang Group, there will be significant inventory pressure. Although there is policy support on the demand side, the actual conversion of orders takes time, making it difficult to reverse the off-season pattern in the short term. Overall, it is expected that the price of grain-oriented silicon steel will be in the doldrums next week.

I. Policy Review: Accelerated Implementation of Global Green Hydrogen Strategies 1. China's "Action Plan for High-Quality Development of the Hydrogen Energy Industry (2025-2030)" Officially Released It sets a clear target of 5 million mt of annual green hydrogen production by 2030, requiring the cost of hydrogen production from renewable energy to be reduced to below $1.5/kg; It offers fixed asset investment subsidies of up to 30% for liquid hydrogen storage and transportation projects, as well as solid-state hydrogen storage projects; It includes hydrogen energy in the "new infrastructure" category for the first time, supporting the co-construction of hydrogen refueling stations with gas stations and charging stations. Regional Responses: Inner Mongolia and Xinjiang have launched demonstration projects for "wind-solar-hydrogen-storage integration," with individual projects eligible for up to 5 billion yuan in special bond support. 2. EU Adopts Revised "Hydrogen Act" It requires member states to establish 40 GW of electrolyzer capacity and 10 GW of green hydrogen import capacity by 2030; It implements a "carbon label" system for imported hydrogen, imposing a carbon tariff of €60/mt on grey hydrogen and offering a tax credit of €200/mt for green hydrogen. 3. US Launches Second Phase of Tendering for the "Clean Hydrogen Accelerator Program" With a total budget of 1.2 billion US dollars, it focuses on supporting the large-scale production of alkaline electrolyzers (with a target cost of $400/kW) and the R&D of seawater direct electrolysis technology; Six states, including California and Texas, have jointly applied for the "Hydrogen Shipping Corridor" project, planning to deploy 20 hydrogen-powered cargo ships by 2030. II. Corporate Developments: Top-Tier Enterprises Compete for Scale and Commercialization 1. SinoHytec Releases the World's First 400 kW Fuel Cell Stack for Heavy-Duty Trucks Technical Highlights: Power density of 5.2 kW/L, durability of 50,000 hours, suitable for 49-tonne tractors, paired with EVE's 150 kWh solid-state battery hybrid system. Orders: Signed an order with SF Express for 300 hydrogen-powered heavy-duty trucks, planned for operation on the Beijing-Xiong'an cold chain logistics route by 2026. 2. Plug Power and Saudi Aramco Establish a Joint Venture to Build the World's Largest Green Hydrogen Plant Scale: An investment of 8 billion US dollars, planning for 15 GW of electrolyzer capacity, an annual production of 1.2 million mt of green hydrogen, and an annual export capacity of 2 million mt of liquid ammonia; Technology: Utilizing Siemens Gigastack alkaline electrolyzers and Giner ELX proton exchange membranes, with a target lifespan of 100,000 hours. 3. Guohong Hydrogen Energy Announces Mass Production of Monocrystalline Graphite Plate Stacks Breakthrough: Single stack power of 250 kW, lifespan of 30,000 hours, cost reduction of 40% compared to imported metal plate stacks; Collaboration: Established the "Hydrogen Energy Construction Machinery Ecosystem Alliance" with Sany Heavy Industry and Zoomlion Heavy Industry, planning to promote 5,000 hydrogen-powered excavators by the end of 2025. III. Technological Advancements: Breakthroughs in Long-Life and Low-Cost Technologies 1. Industrial Application of Non-Precious Metal Catalysts Achieved Achievements: The Fe-N-C catalyst developed by the Dalian Institute of Chemical Physics, CAS (with a platinum usage of only 0.1 mg/cm²) has been validated in SinoHytec's stack, achieving a power density of 4.5 kW/L and a cost reduction to $8/g (compared to $50/g for the original Pt/C catalyst). 2. Solid-State Hydrogen Storage Technology Enters Commercial Stage for the First Time Project: Shanghai Hydrogen Proton Tech, in collaboration with China Energy Investment Corporation, has commissioned a 5-tonne solid-state hydrogen refueling station in Ordos, with a hydrogen storage density of 50 kg/m³ and a cycle life of 10,000 times. 3. Electrolyzer Efficiency Sets a New World Record • Technology: Siemens Energy of Germany has released a 100 MW alkaline electrolyzer with a current density of 0.8 A/cm² and an efficiency of 82% (LHV), an 8% improvement over the industry average. IV. Industrial Synergy: Accelerated Cross-Sector Integration 1. Hydrogen-Electricity-Heat Multi-Energy Complementary Park Established in Xiong'an Model: China Huaneng Group has constructed a 100 MW fuel cell combined heat and power system, coupled with PV power generation and ground-source heat pumps, achieving a comprehensive energy efficiency of 92% and reducing carbon emissions by 80,000 mt/year. 2. Hydrogen Aviation Takes a Critical Step Forward Progress: COMAC, in collaboration with Air Liquide Haopu, has completed the maiden flight of a hydrogen hybrid regional aircraft (ARJ21-H2), with hydrogen fuel cells contributing 30% of the flight energy, and plans to obtain certification by 2030. 3. Large-Scale Implementation of Green Hydrogen Steelmaking in the Steel Industry Case Study: Baowu Group's Zhanjiang Base has launched a 2 million mt/year hydrogen-based direct reduced iron (DRI) project, paired with a 1.2 GW wind-solar hydrogen production system, achieving annual carbon emission reductions of 1.8 million mt of CO₂.

Recently, there have been rumors in the steel market that the industry will implement production restrictions totaling 50 million mt to address changes in the market's supply and demand structure in recent years. At Baosteel's earnings conference on April 28, the company's management responded that production restrictions are highly likely, but the company is confident in its ability to cope. Baowu Group will strictly adhere to national regulations, and as Baosteel, a core subsidiary of Baowu Group, the group will provide preferential support in terms of capacity. Cai Yanqing, Deputy General Manager of Baosteel, stated that if production restrictions are implemented in the industry, on the one hand, the company will receive support from the group in terms of resources. Through internal adjustments and resource optimization, the company will ensure full production and sales under the backdrop of production restrictions, maximizing production efficiency. Additionally, Baosteel will leverage the synergistic advantages of its multiple bases to flexibly allocate orders and resources, optimize production plans, and ensure high-load, high-efficiency production at the company. At the earnings conference, the company's senior management also engaged in in-depth exchanges with investors on key issues such as the company's strategic planning and competitive landscape in the industry. An investor inquired about the synergistic effects between Baosteel and Magang after Baosteel's equity participation in Magang, as well as the company's layout planning for long products. Zou Jixin, Chairman of Baosteel, responded that in this equity participation in Magang, Baosteel not only values Magang's industry heritage and unique advantages but also focuses on the synergistic potential between the two parties in terms of efficiency, quality, cost, and management. Magang has significant room for optimization in areas such as improving sheet quality, controlling iron costs, and enhancing marketing and procurement management. Baosteel will leverage its own experience and technological advantages to assist Magang in achieving efficiency improvements. Baosteel plans to develop Magang into a base for the third-generation core strategic products, with Magang playing a crucial role in the strategy for high-quality long products. In response to an investor's question about the competitiveness of Baosteel's automotive sheet business, Liu Baojun, a director and General Manager of the company, stated that despite the intensified competition in the steel industry, Baosteel's management remains confident in the future development of its automotive sheet business. Although the structure of the automotive market has changed, and the rise of new energy vehicles (NEVs) presents new challenges to traditional automotive materials, Baosteel's advantages in product R&D, supply chain management, and technical services remain prominent. The company will continue to increase R&D investment in new materials such as high-strength steel and high-end aluminum sheets, while also meeting the demand for lightweight, high-performance materials in NEVs by improving production efficiency and service capabilities. Regarding the impact of trade frictions between China and the United States on Baosteel, which investors were concerned about, Zou Jixin stated that there is almost no direct impact on Baosteel's exports, while indirect exports have been slightly affected. The company will take proactive measures: on the one hand, it will adjust its export product mix and optimize overseas marketing channels to mitigate the impact of trade frictions; on the other hand, it will actively explore emerging markets along the "Belt and Road" initiative, achieving remarkable results. In addition, the company will also respond to unreasonable trade policies through legal means to strive for a fair and equitable trade environment. Zou Jixin also responded to questions about the company's future capital investment planning. He stated that Baosteel has always maintained a rational approach to capital expenditures. In the future, the company will continue to make necessary investments in areas such as green and low-carbon development, strategic products, and equipment upgrades and replacements, while optimizing investment intensity. The company's capital expenditures will be gradually optimized, with a projected decrease in new project investments each year and a gradual decline in capital expenditure intensity. Future investment priorities will include the development of strategic investment projects, hardware investments in the field of artificial intelligence, and green, low-carbon, and smart manufacturing. The company plans to further enhance its competitiveness and market value through these investments.