[SMM Steel] John Cockerill India secured a $32 million contract to supply a continuous galvanizing line to JSW Steel Coated Products Limited at its Khopoli plant. The project includes full engineering, supply, and commissioning, with completion scheduled for May 2028. In the short term, the deal reflects ongoing investment in value-added coated steel capacity, supporting future supply of higher-end products.

Although March traditionally marks a demand recovery period and represents the final deadline for "export rush" orders ahead of policy changes, leading to a significant MoM increase compared to February, the magnitude of this recovery is expected to be more limited than pre-holiday forecasts suggested.

SMM June 16 News: According to an official announcement from Yunnan Copper Science & Technology Development Co., Ltd., the company recently offered approximately 30 mt (metal content) of selenium ingots for public sale. Metal grade: selenium ≥99% (subject to the factory test results of Yunnan Copper Science & Technology, which only guarantees the main element, selenium). Product packaging: Barreled and palletized, with 48 barrels per pallet, and each pallet weighing approximately 1.68 mt of selenium (subject to the actual packing list). The bidding sales announcement (Inquiry No.: 202506XSS020010) was released by the Marketing Center of Yunnan Copper Science & Technology Development Co., Ltd. on the Sunshine Procurement Platform of China Copper Corporation Limited before 11:00 on June 16, 2025. Deadline for quotation submission: Bidders must log in to the Sunshine Procurement Platform of China Copper Corporation Limited (https://cg.chncopper.com/epsw/portal/index) and click on "Sunshine Purchase and Sales" to complete the relevant quotation submission before 11:00 on June 19, 2025. Late quotations will not be accepted. The successful bidder is required to pay the full contract amount in full before June 25, 2025.

Today, the People's Bank of China (PBOC) announced that it will conduct 400 billion yuan of outright reverse repo operations on June 16, marking the second announcement of such operations by the PBOC this month. Earlier in June, the PBOC had announced the conduct of 1 trillion yuan of 3-month outright reverse repo operations. Considering that a total of 1.2 trillion yuan of outright reverse repos will mature throughout June, the PBOC's two announcements imply a net injection of funds for the entire month. Industry insiders told a Caixin reporter that June is a critical period for semi-annual liquidity assessments, coupled with factors such as the large-scale maturity of interbank negotiable certificates of deposit (NCDs), leading to a higher demand for liquidity from financial institutions throughout the month. The PBOC's provision of medium-term funding support reflects its care for the market. "Building on the approximately 1 trillion yuan of long-term liquidity released through RRR cuts by the PBOC in May, the increase in outright reverse repo operations in June, continuing to boost medium-term liquidity injections, will help maintain ample liquidity in the banking system and control fluctuations in the funding market amid the continuous large-scale issuance of government bonds and the 'peak' period of interbank NCD maturities in recent months," an industry source told Caixin. PBOC Announces Second Round of Operations This Month, Continuing to Boost Medium-Term Liquidity Injections To maintain ample liquidity in the banking system, the PBOC first announced on June 5 and then conducted 1 trillion yuan of outright reverse repo operations on June 6. Just a week later, the PBOC announced its second round of operations today. Today, the PBOC announced that it will conduct 400 billion yuan of outright reverse repo operations on June 16 through fixed-quantity, interest-rate tendering, and multiple-price bidding, with a tenor of 6 months (182 days). Data shows that 500 billion yuan of 3-month and 700 billion yuan of 6-month outright reverse repos will mature in June, respectively, implying a net injection of 200 billion yuan of outright reverse repos by the PBOC for the entire month as of June 16. "Building on the approximately 1 trillion yuan of long-term liquidity released through RRR cuts by the PBOC in May, the increase in outright reverse repo operations in June, continuing to boost medium-term liquidity injections, will, on the one hand, help maintain ample liquidity in the banking system and control fluctuations in the funding market amid the continuous large-scale issuance of government bonds and the 'peak' period of interbank NCD maturities in recent months," Wang Qing, chief macro analyst at Dongfang Jincheng, told a Caixin reporter. Why did the PBOC choose to announce twice in June to manage market expectations? It may be related to June being a traditional critical period for liquidity management, with the funding market facing a "major test" amid multiple pressures. Haitong Asset Management pointed out that the concentrated impact of the peak maturity of interbank NCDs, with a total maturity of over 4 trillion yuan in June, has widened the short-term funding gap for banks. Meanwhile, financial institutions also need to cope with the "regular challenge" of quarter-end liquidity assessments, coupled with a surge in funding demand driven by the accelerated issuance of government bonds, further highlighting the supply-demand imbalance in the funding market. Everbright Securities Finance stated that, considering the seasonal trend, short-term funding rates in June have generally shown a pattern of "pulling back at the beginning of the month and rising in the latter part" in recent years. Given that the end of June coincides with semi-annual financial reports and assessments, liquidity management will be arranged in advance, and the pressure is not expected to last until the last two days of the month. "The intensity and pace of loan issuance squeezing the excess reserve ratio, thereby affecting the willingness of national banks to lend funds; it is estimated that the net financing scale of government bonds in June will still be around 1 trillion yuan, which may cause temporary disruptions; in addition, there will be a concentration of NCD maturities in late June, along with a surge in credit, making the MLF issuance volume worth watching," pointed out Wang Yifeng, Chief Analyst of Everbright Securities' Financial Industry. Wang Qing noted that this move also signals the continuous strengthening of quantitative monetary policy tools, which helps to promote the broadening of credit and enhance countercyclical regulation. "The disclosure of outright reverse repo operations from the end of the month to an earlier release indicates an increase in the transparency of monetary policy operations, which can more effectively guide and stabilize market expectations." In June, the maturity of negotiable certificates of deposit (NCDs) is expected to transition smoothly with no significant changes in volume or price. Looking ahead to June, the large amount of maturing NCDs is one of the main disruptive factors, but the market expects a smooth transition in terms of liquidity. Data shows that the expected maturity of NCDs in June will reach 4.2 trillion yuan, setting a record for the highest single-month figure. Among these, the early and mid-month periods are the concentrated maturity points, with about 920 billion yuan and 1.95 trillion yuan of NCDs due to mature, respectively. Wang Yifeng believes that under the current circumstances, the primary factor disrupting the interest rate on NCDs in June is the large volume of maturities, with 4.2 trillion yuan due to mature in the month, an increase of 1.7 trillion yuan compared to May, reaching a peak for monthly maturities in recent years, increasing the pressure on banks to roll over. However, there are offsetting factors that may result in the renewal volume of NCDs in June being less than the maturing volume. Although NCDs face significant maturity pressure in June, constrained by multiple factors, the overall volume and price levels are not expected to change significantly from previous levels. CITIC Securities Fixed Income Department stated that, looking ahead to June, the disturbance to liquidity from fiscal factors is expected to weaken marginally. Considering the high credit issuance scale typically seen in June due to the bank's semi-annual assessment, coupled with the potential pressure on the liability side after the implementation of a new round of deposit rate cuts, it may be difficult for the liquidity to achieve a spontaneous balance. It is anticipated that the central bank will further inject medium and long-term liquidity through outright reverse repo operations and MLF, and the overall liquidity in June is expected to maintain a balanced supply and demand pattern, with the DR007 interest rate center fluctuating at lows slightly above the policy rate level. "In the future, the central bank will also comprehensively utilize medium- and short-term liquidity management tools such as pledged reverse repo operations, Medium-term Lending Facility (MLF), and outright reverse repo operations to maintain abundant liquidity in the banking system. This is also a crucial step in enhancing the accessibility of credit for enterprises and residents and reducing financing costs for the real economy at present," said Wang Qing.

Every year, among the global central banks' event calendars, the Jackson Hole Economic Symposium hosted by the US Fed and the Sintra Forum (ECB Forum on Central Banking) hosted by the European Central Bank (ECB) have consistently been the two most closely watched events. However, few may be aware that in Japan, a similar high-profile central banking event is now held annually... On Tuesday, the two-day annual central banking conference, hosted by the Bank of Japan (BOJ) and its affiliated think tank, commenced at the BOJ headquarters in Tokyo. Despite lacking hiking trails and scenic countryside views, this central banking event is still hailed by industry insiders as Japan's version of the "Jackson Hole Economic Symposium." Participants include renowned scholars from the US, Europe, and Asia, along with officials from the US Fed, ECB, Bank of Canada, and Reserve Bank of Australia, including the Fed's third-in-command, John C. Williams, President of the Federal Reserve Bank of New York. Industry insiders suggest that this year's global central banking symposium in Tokyo may focus on two troubling realities: sluggish economic growth and persistent inflation. Although most speeches are academic in nature and closed to the media, the theme of this year's conference is "New Challenges for Monetary Policy," and these "new challenges" are undoubtedly well-known to insiders: How should central banks respond to stubbornly high inflation, downside economic risks, market volatility, and US tariffs... These conflicting headwinds are largely caused by the policies of US President Donald Trump, and the uncertainty of the outlook is putting many central banks in a difficult position, regardless of whether they are planning to raise or cut interest rates. For example, the BOJ, as the "host," is still insisting on continuing to raise interest rates and steadily scaling back its bond-buying program, which stands in stark contrast to other peers globally that are cutting interest rates. However, recent global developments have raised questions about such tightening measures. What will be discussed at this year's conference? At last year's conference, participants summarized the gains and losses of responding to economic recessions by discussing lessons learned from using various unconventional monetary easing tools. The conference also explored whether Japan—the "outlier" that maintained ultra-low interest rates while other major central banks aggressively raised rates—could emerge from decades of deflation and low inflation with the help of nascent and sustained wage growth. This year, although central bankers' concerns may primarily focus on tariff-induced economic recessions, the conference's agenda indicates that policymakers remain highly sensitive to the risk of falling into a prolonged period of excessively high inflation. According to the meeting agenda seen by industry insiders, one of the parallel sessions will focus on "reserve requirements, interest rate control, and quantitative tightening." Another session will discuss a paper published by the International Monetary Fund (IMF) in December last year titled "Monetary Policy and Inflation Scare." The paper explains how significant supply shocks, such as those caused by the COVID-19 pandemic, can lead to persistent inflation and warns that central banks may face risks if they believe cost-push price pressures can be ignored. "Better to be 'slow' than to 'make a mistake.'" This warning holds implications for major central banks currently facing similar dilemmas—a situation exacerbated by global trade wars and Trump's erratic trade policies. The US Fed was initially expected to implement multiple interest rate cuts this year, but as the risk of inflation rising due to Trump's tariffs intensifies, the Fed has been forced into a wait-and-see mode. Meanwhile, according to industry insiders' interactions with European Central Bank (ECB) policymakers, although the ECB is expected to cut interest rates again in June, the rationale for pausing action is strengthening as inflation challenges emerge. "Tariffs may curb inflation in the short term but pose upside risks in the medium term," Isabel Schnabel, an ECB Executive Board member and a prominent hawk, explicitly called for a pause in interest rate cuts at a conference at Stanford University on May 9. Meanwhile, Japan, currently in a tightening cycle, is also facing the challenge of balancing domestic inflationary pressures with the downside risks to economic growth posed by US tariffs. Trump's tariffs have forced the Bank of Japan (BOJ) to sharply lower its economic growth forecast on May 1 and hint at a pause in its interest rate hiking cycle—currently, the short-term interest rate remains at a low of 0.5%. Despite this, BOJ Governor Kazuo Ueda has signaled readiness to resume interest rate hikes if underlying inflation continues to stabilize toward the 2% target. Japan's core consumer inflation rate hit a two-year high of 3.5% in April, with food prices surging 7%, indicating the pressure rising living costs are placing on Japanese households. Nobuyasu Atago, a former BOJ official and now chief economist at Rakuten Securities Economic Research Institute, stated that it is evident that the BOJ has failed to fulfill its mission of price stability. Inflation will remain one of the BOJ's concerns, and the BOJ may already be lagging in addressing domestic price pressures. As of press time, Kazuo Ueda, Governor of the Bank of Japan, had delivered a keynote speech at the opening event of the annual meeting, stating that the degree of monetary easing would be adjusted as needed. The US dollar fell sharply against the Japanese yen by over 30 pips in the short term. Subsequently, Agustin Carstens, General Manager of the Bank for International Settlements, was also scheduled to deliver a speech, which investors should continue to monitor.

》[Live] Analysis of Macroeconomics, Power, Infrastructure, Real Estate, and PV Markets; Outlook on Copper and Aluminum Prices; Insights into Cable Technology Trends SMM, May 23: Metal Market: As of the midday close, domestic base metals generally fell. SHFE tin dropped by 0.62%, SHFE zinc remained flat at 22,250 yuan/mt, SHFE aluminum fell by 0.12%, and SHFE nickel dropped by 0.66%. SHFE lead rose by 0.3%, and SHFE copper fell by 0.1%. In addition, alumina fell by 1.98%, lithium carbonate dropped by 1.65%, silicon metal declined by 0.7%, and polysilicon rose by 1.11%. Most ferrous metals series fell, with iron ore dropping by 0.69% and HRC falling by 0.47%. Stainless steel rose slightly, while rebar fell by 0.36%. In terms of coking coal and coke: coking coal fell by 2.81%, and coke dropped by 1.28%. In the overseas metal market, as of 11:43 a.m., LME metals rose across the board. LME copper rose by 0.31%, LME aluminum increased by 0.37%, LME zinc gained 0.54%, LME nickel rose by 0.33%, LME tin increased by 0.38%, and LME lead rose by 0.51%. In precious metals, as of 11:43 a.m., COMEX gold rose by 0.09%, and COMEX silver increased by 0.17%. Domestically, SHFE gold fell by 0.77%, and SHFE silver dropped by 0.52%. As of the midday close, the most-traded contract for the European container shipping index rose by 3.02%, closing at 2,231.2 points. As of 11:43 a.m. on May 23, the midday futures market movements for some contracts were as follows: 》SMM Metal Spot Prices on May 23 Spot and Fundamentals Copper: In terms of inventory, according to SMM's domestic aluminum ingot inventory data, domestic aluminum ingot inventory stood at 557,000 mt on May 23, a destocking of 28,000 mt from Monday. In the short term, the lower arrival of goods in east China is conducive to the rise in premiums and discounts. Follow-up attention should be paid to changes in demand... 》Click for details Macro Front Domestic Aspect: [Ministry of Commerce: Online Sales of Digital Products Grew by 8.4% from January to April; Sales of Smart Robots and Smart Home Systems Rose by 87.6% and 16%, Respectively] The head of the E-commerce Department of the Ministry of Commerce introduced the development of China's e-commerce from January to April 2025. Digital consumption growth accelerated. According to monitoring by the Ministry of Commerce's big data, online sales of digital products increased by 8.4%, with sales of smart robots and smart home systems rising by 87.6% and 16%, respectively. Products under the trade-in policy grew rapidly, with online sales of 15 categories of home appliances and digital products increasing by 11.5%, among which three expanded categories of digital products, including mobile phones, grew by 18.5%. Service consumption led the growth. Driven by factors such as policy support, supply optimization, and holiday economy, the growth of key monitored online service consumption reached 12.1%, with online entertainment and online tourism increasing by 31.9% and 25.4%, respectively. [The central bank injected a net 36 billion yuan into the open market] The central bank conducted 142.5 billion yuan of 7-day reverse repo operations today, with an operating interest rate of 1.40%, unchanged from the previous rate. As 106.5 billion yuan of 7-day reverse repos matured today, a net injection of 36 billion yuan was achieved. ► On May 23, the central parity rate of the RMB against the US dollar in the interbank foreign exchange market was 7.1919 yuan per US dollar. US dollar: As of 11:43, the US dollar index fell by 0.28% to 99.66. Concerns over the deterioration of the US fiscal outlook intensified, leading to a weakening of the US dollar. Tim Baker, an analyst at Deutsche Bank, believes that the market's reaction to rising US fiscal uncertainty may harm the US dollar more than US Treasuries. He stated that when bond prices fall and yields rise sufficiently, domestic investors will buy bonds. However, foreign investors deterred by the expanding US budget deficit will continue to sell the US dollar. Baker said, "As US domestic investors rotate out of the stock market, US Treasuries may eventually receive some support, but the withdrawal of foreign investors will still be negative for the US dollar." (Huitong Finance) Other currencies: Japan's core inflation surged to 3.5% YoY in April, the fastest pace in two years, sparking market expectations of a rate hike by the Bank of Japan. Meanwhile, the persistent expansion of the fiscal deficit has raised concerns among investors about the sustainability of government debt, leading to a surge in yields on 20-year and longer-dated Japanese government bonds to historic highs this week, challenging the market's ability to absorb long-term debt. (Huitong Finance) Macro: Today, data including the revised quarter-on-quarter seasonally adjusted GDP growth rate for Germany in Q1, the revised year-on-year non-seasonally adjusted GDP growth rate for Germany in Q1, the month-on-month seasonally adjusted retail sales growth rate for the UK in April, the month-on-month seasonally adjusted core retail sales growth rate for the UK in April, the revised month-on-month building permits growth rate for the US in April, the revised annualized total building permits for the US in April, the month-on-month retail sales growth rate for Canada in March, the month-on-month core retail sales growth rate for Canada in March, and the annualized total seasonally adjusted new home sales for the US in April will be released. In addition, it is worth noting that: John C. Williams, permanent voting member of the FOMC and President of the Federal Reserve Bank of New York, will deliver a keynote speech at a seminar on monetary policy implementation; James Bullard, 2025 FOMC voting member and President of the Federal Reserve Bank of St. Louis, and Esther George, President of the Federal Reserve Bank of Kansas City, will participate in a fireside chat in Northwest Arkansas hosted by the Federal Reserve Bank of St. Louis to discuss the economy and monetary policy. Crude oil: As of 11:43, crude oil futures all declined, with US crude oil falling by 0.62% and Brent crude oil falling by 0.57%. OPEC may further increase crude oil production, putting pressure on oil prices. It is reported that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, forming the OPEC+ alliance, are discussing whether to significantly increase production again at their meeting on June 1. Delegates attending the meeting said that a 411,000 barrel-per-day increase in July is one of the options under discussion, but no final agreement has been reached. The significant accumulation of US crude oil is also putting pressure on oil prices. According to data from The Tank Tiger, a storage broker, US crude oil storage demand has surged in recent weeks to levels comparable to those during the COVID-19 pandemic, as traders prepare for a significant increase in supply from OPEC and its allies in the coming months. On Friday, the market will focus on data from Baker Hughes on the number of US oil and natural gas drilling rigs, which is seen as an indicator of future supply trends. (Webstock Inc.) Spot Market Overview: ► SMM: Easing of Sino-US Tariffs, Fundamentals Supporting the Market, Copper and Aluminum Prices Expected to Fluctuate Upward [SMM Cable Conference] ► Inventory Hits Recent Low, Suppliers Actively Refuse to Budge on Prices [SMM South China Spot Copper] ► [SMM Nickel Midday Review] Nickel Prices Continue to Weaken on May 23, PBOC Conducts 500 Billion Yuan MLF Operation ► Silver Bottoms Out and Rebounds, Market Focuses on Inflation and Geopolitical Risk Aversion [SMM Weekly Silver Market Review] Midday reviews of other metal spot prices will be updated later. Please refresh to view~