SMM May 9 News: Metals market: Last Friday's overnight domestic market saw base metals mostly decline. SHFE copper rose 0.53%. SHFE aluminum fell 0.16%, and SHFE lead fell 0.15%. SHFE zinc fell 1.19%. SHFE tin fell 1.13%. SHFE nickel fell 0.67%. In addition, the most-traded alumina futures fell 1.37%, and the most-traded casting aluminum futures fell 0.24%. Last Friday's overnight ferrous metals mostly fell. Iron ore was flat at 816.5 yuan/mt, stainless steel fell 1.05%, rebar edged up slightly, and hot-rolled coil rose 0.14%. Coking coal and coke: coking coal fell 0.39%, and coke fell 0.43%. Last Friday's overnight overseas metals showed mixed performance among LME base metals. LME copper rose 1.59%. LME aluminum rose 0.34%, and LME lead was flat at $1,977.5/mt. LME zinc fell 0.17%. LME tin fell 1.26%. LME nickel fell 0.89%. Last Friday's overnight precious metals : COMEX gold rose 0.27%, posting a weekly gain of 1.71%; COMEX silver rose 0.82%, gaining 5.76% for the week. Last Friday's overnight SHFE gold most-traded contract fell 0.21%, with a weekly gain of 3.24%; SHFE silver most-traded contract rose 0.09%, with SHFE silver gaining 11.4% for the week. As of 8:39 AM on May 9, last Friday's overnight closing prices: Macro front China: [Li Qiang Chaired State Council Executive Meeting: Advancing Local Government Debt Risk Resolution and Strengthening Full-Chain Management of Mineral Resources] State Council Premier Li Qiang chaired a State Council executive meeting on May 9, studying and implementing the spirit of General Secretary Xi Jinping's important speeches on the current economic situation and economic work, as well as at the symposium on strengthening basic research. The meeting noted that efforts should be made to align thinking and actions with the CPC Central Committee's scientific assessment of the situation, further bolster confidence, seize opportunities amid changes, drive development through overcoming challenges, consolidate and expand the momentum of steady and positive economic growth, and strive for a good start to the 15th Five-Year Plan period. Macro policies should focus on being fully and effectively utilized, maintaining proactive implementation, and continuously improving execution efficiency. Strengthening the domestic economic circulation should seek breakthroughs in coordinated supply-demand alignment and integrated upgrading, implementing and improving measures to expand capacity and enhance quality in the service sector, and strengthening the planning and construction of water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipeline networks, and logistics networks . Social welfare efforts should focus more on stabilizing employment and ensuring basic needs, and doing well in education, healthcare, childcare, agriculture, rural areas, and farmers. Greater efforts and more concrete measures should be taken to strengthen basic research, placing basic research high on the agenda. In light of the country's urgent needs and long-term demands, the main directions and key areas of focus should be identified, investment should be increased through multiple measures, and efforts should be made to foster a sound research ecosystem. Risks and challenges should be addressed effectively, with continued efforts to defuse risks in areas such as real estate, local government debt, and small and medium-sized financial institutions. Safety production responsibilities of all parties should be closely monitored and enforced to resolutely prevent major and serious accidents. ( Xinhua News Agency ) [General Administration of Customs: In the first 4 months, China's goods trade imports and exports grew 14.9%, with electromechanical product exports up 17.6%] According to customs statistics, in the first 4 months of 2026, China's total goods trade imports and exports reached 16.23 trillion yuan, up 14.9% YoY (the same hereinafter). Of this, exports totaled 9.33 trillion yuan, up 11.3%; imports totaled 6.9 trillion yuan, up 20%. In April, China's total goods trade imports and exports reached 4.38 trillion yuan, up 14.2%. Of this, exports totaled 2.48 trillion yuan, up 9.8%; imports totaled 1.9 trillion yuan, up 20.6%. [Four departments: Exploring direct connection of nuclear power, hydrogen energy and other energy sources to supply computing facilities, and continuously increasing the share of green electricity in computing facilities] The Plan proposes enhancing the diversified power supply capacity of computing facilities. Based on actual conditions such as the scale of computing facility grid connections, power grid voltage levels, power grid new energy penetration rates, power quality requirements, and computing facility business types, standards for energy supply planning and construction of computing facilities are to be established and improved. The use of nuclear power, hydrogen energy, and other energy sources to supply computing facilities through direct connections is to be explored. Computing facilities are encouraged to deploy grid-forming ESS to enhance power supply stability and active support capability for the power system. [Three departments issue the Implementation Opinions on Standardized Application and Innovative Development of AI Agents] The Cyberspace Administration of China, the National Development and Reform Commission (NDRC), and the Ministry of Industry and Information Technology jointly issued the Implementation Opinions on Standardized Application and Innovative Development of AI Agents. The Implementation Opinions specify that the development of AI agents should adhere to the basic principles of safety and controllability, standardization and orderliness, innovation-driven development, and application-led guidance, and put forward measures in four areas: first, consolidating the development foundation by improving the technology base and establishing standards and protocols; second, safeguarding the security baseline by defining product guidelines, preventing security risks, improving the governance system, and strengthening industry self-discipline; third, strengthening application-led guidance by proposing 19 typical application scenarios in areas such as scientific research, industrial development, consumption stimulation, people's well-being, and social governance. Fourth, building an innovative ecosystem, promoting industrial cooperation, and strengthening application promotion. [ China's April Warehousing Index Remained in Expansion Territory, with the Warehousing Industry Continuing a Stable and Positive Trend ] The China Federation of Logistics and Purchasing released the April China Warehousing Index today (May 9). The index continued to stay in expansion territory, with the warehousing industry maintaining a stable and positive trend. The April China Warehousing Index was 51%, remaining in expansion territory for two consecutive months. In terms of sub-indices, the new orders index, facility utilization rate index, and end-of-period inventory index remained in expansion territory, while the average inventory turnover index maintained a relatively high level, indicating steady growth in warehousing business demand, good cargo turnover efficiency, and smooth supply chain connectivity. By category, the peak production and construction season drove a rebound in warehousing demand for bulk commodities such as chemicals, coal, and machinery equipment, while Labour Day holiday stockpiling boosted notable growth in warehousing demand for consumer goods such as food, home appliances, and agricultural by-products. In terms of market expectations, the April business activity expectations index was 55.1%, remaining at a relatively high level, reflecting enterprises' continued optimism. Overall, the warehousing industry operated steadily in April, market vitality continued to be released, and Q2 got off to a good start. (CCTV) [ Shanghai Shipping Exchange: Geopolitical Situation Stabilizing, Freight Rates Rising on Most Routes ] The Shanghai Shipping Exchange (SSE) weekly report stated that the current military conflict in the Middle East continued to maintain a ceasefire, with the geopolitical situation relatively stable, though the future situation still faced significant uncertainty. This week, China's export container shipping market remained stable, with freight rates on most routes edging up, driving the composite index higher. On May 8, the Shanghai Containerized Freight Index stood at 1954.21 points, up 2.2% from the previous period. US dollar: Last Friday, the overnight US dollar index fell 0.43% to 97.86. On a weekly basis, the US dollar index declined for two consecutive weeks, down 0.36% for the week. Data released by the US Bureau of Labor Statistics on Friday showed that April non-farm payrolls increased by 115,000, marking the first consecutive growth in nearly a year and the largest two-month gain since 2024, far exceeding the Bloomberg survey median economist forecast of 65,000. March data was also revised up to 185,000. The unemployment rate remained unchanged at 4.3%, in line with expectations. (Wallstreetcn) "US Fed mouthpiece" Nick Timiraos: An increasing number of sell-side institutions and US Fed watchers are removing or delaying interest rate cut expectations from their outlooks, including several forecasters who made adjustments following the release of the April non-farm payrolls data. Currently, half of the respondents believe there will be no interest rate cut this year (given the inertial nature of such forecasts, this camp is likely to continue growing). In addition, Chicago Fed President Goolsbee stated that all rate options are currently on the table, not just rate cuts. At the end of April, the US Fed kept rates unchanged, with three officials opposing language in the statement that hinted the next move could be a rate cut, arguing that the possibility of a rate hike should be preserved. Goolsbee's remarks reflected a shift among US Fed policymakers — moving away from considering near-term rate cuts, primarily because the energy price shock triggered by the Iran war pushed up inflation. He reiterated that both rate cuts and rate hikes are on the table and expressed anxiety about inflation, noting that price pressures exist beyond the energy shock. (Jin10 Data) As consumers worried about the impact of inflation on personal finances and buying conditions, US consumer confidence fell to a new all-time low in recent weeks. University of Michigan data showed that the preliminary May consumer sentiment index fell from 49.8 in April to 48.2. Consumers expected prices to rise at an annual rate of 4.5% over the next year, a slight pullback MoM; longer-term inflation expectations for the next 5 to 10 years stood at 3.4%. As Americans grew anxious about overall living costs, compounded by a sharp rise in gasoline prices, consumer confidence remained subdued. American Automobile Association (AAA) data showed that the average US gasoline price this week surpassed $4.50 per gallon for the first time since July 2022, having risen more than 50% since the outbreak of the Iran war. Survey director Joanne Hsu stated: "About one-third of consumers spontaneously mentioned gasoline prices, and about 30% mentioned tariff issues. Overall, consumers still feel the impact of cost pressure, with the primary driver being surging prices at the pump." The preliminary May current conditions index fell to 47.8, a record low; the expectations index rebounded for the first time since January. Consumers' assessment of their current financial situation dropped to the lowest level since 2009, and the buying conditions indicator also fell to a five-month low. (Jin10 Data) On the macro front: Data to be released this week include China April CPI YoY, China April PPI YoY, US April existing home sales annualized, Germany April CPI MoM final, Germany May ZEW economic sentiment index, Eurozone May ZEW economic sentiment index, US April NFIB small business confidence index, US ADP employment weekly change for the week ending April 25, US April non-seasonally adjusted CPI YoY, US April seasonally adjusted CPI MoM, US April seasonally adjusted core CPI MoM, US April non-seasonally adjusted core CPI YoY, Japan March trade balance, France Q1 ILO unemployment rate, France April CPI MoM final, Eurozone Q1 GDP YoY revised, Eurozone Q1 seasonally adjusted employment QoQ final, Eurozone March industrial output MoM, US April PPI YoY, US April PPI MoM, UK Q1 GDP YoY preliminary, UK March three-month GDP MoM, UK March manufacturing output MoM, Canada March wholesale sales MoM, US initial jobless claims for the week ending May 9, US April retail sales MoM, US April import price index MoM, US May New York Fed manufacturing index, US April industrial output MoM, and China April total electricity consumption YoY (TBD), among others. In addition, other events to watch this week included: US Treasury Secretary Bessent's visit to Japan to meet with the Japanese Prime Minister, the Bank of Japan Governor, and the Finance Minister; the Bank of Japan's release of the Summary of Opinions from its April monetary policy meeting; permanent FOMC voter and New York Fed President Williams participating in a panel discussion on monetary policy; Chicago Fed President Goolsbee attending a Q&A session hosted by a local chamber of commerce; 2028 FOMC voter and Boston Fed President Collins delivering a speech at the Boston Economic Club; 2026 FOMC voter and Minneapolis Fed President Kashkari participating in a discussion hosted by a local chamber of commerce; the Bank of Canada releasing its monetary policy meeting minutes; 2026 FOMC voter and Dallas Fed President Logan participating in a dialogue on the energy sector; 2026 FOMC voter and Cleveland Fed President Hammack delivering opening remarks at an online discussion on central bank independence; US Fed Governor Barr delivering a speech; permanent FOMC voter and New York Fed President Williams participating in a discussion; and the National Energy Administration releasing national electricity consumption data around the 15th of the month. Crude oil: Last Friday overnight, both oil futures moved sideways, with WTI down 0.14% and Brent up 0.19%. On a weekly basis, WTI futures declined 7.12% for the week, while Brent fell 7.32%. Middle East conflicts resurfaced, and market concerns over the fragility of ceasefire agreements persisted. According to CMG reporters on May 8, ship-tracking data showed that as of the morning of May 8 local time, no large vessels had transited the Strait of Hormuz in the past 24 hours. This reportedly marked the second consecutive day since May 7 with no large commercial ships passing through the strait. (CCTV) US energy services company Baker Hughes stated in its closely watched report that US energy enterprises increased oil and natural gas rig counts for the third consecutive week, marking the first three-week streak of increases since early February. Data showed that for the week ending May 8, the total US oil and natural gas rig count—a leading indicator of future production—increased by 1 to 548, the highest since early April. (Webstock Inc.) According to foreign media reports, sources said that since shipping disruptions in the Strait of Hormuz, enterprises such as Saudi Aramco's trading arm (Aramco Trading) and UAE national oil company Abu Dhabi National Oil Company (Adnoc) had continued to transport crude oil cargoes through the strait. Although current shipment volumes represented only a fraction of what flowed before Iran closed this oil route nearly 10 weeks ago, the actions of both companies served as a reminder to the market that some supply could still reach global markets. According to sources, Adnoc was among the first companies to attempt shipping crude oil, fuel, and natural gas cargoes out through the strait. The company supplied Upper Zakum crude to clients, a grade typically loaded at Zirku Island, but in this case delivered in Fujairah waters outside the Persian Gulf. According to Vortexa data, at the end of April, a very large crude carrier (VLCC) loaded with Abu Dhabi crude turned off its transponder and sailed out of the Persian Gulf through the Strait of Hormuz. Kpler data showed that as of Thursday, another VLCC, Fujairah Energy, remained anchored in waters near Abu Dhabi, carrying half a cargo of crude obtained from Zirku Island via ship-to-ship transfer. A charter agreement indicated that the vessel had been temporarily chartered by Adnoc, with plans to load crude between May 15 and 17 for delivery to Asia. (Jin10 Data) Citi stated that the current base case scenario projects Brent crude oil prices to average $110 in Q2 2026, then decline to $95 in Q3 and $80 in Q4. Fitch expects Brent crude prices to remain at $100–110 per barrel during the Strait of Hormuz blockade from May to July, before pulling back to $70 per barrel by September. Additionally, JPMorgan analysts said US gasoline prices "could very well" rise to $5 per gallon, as refineries are prioritizing jet fuel production at the expense of other products. The analyst team noted in a Friday report that in Asia, the region currently hardest hit by the energy crisis, the price shock triggered by the Iran war is transmitting significantly faster through refined product markets such as jet fuel and diesel than through the crude oil market. If refinery operations continue to be constrained by limited crude supply, fuel prices could become "the primary transmission channel for demand destruction." "In this scenario, even if refined product crack spreads widen significantly, crude prices could still stabilize around $100 per barrel. At that point, the next phase of the shock would look less like a traditional crude oil price spike and more like a refining and end-user fuel supply crisis." The product most visibly impacted currently is jet fuel, which is prompting refineries to maximize jet fuel output as much as possible, typically at the cost of reduced diesel production. The knock-on effects have also spread to gasoline production. Analysts said: "This perhaps explains why US gasoline prices have already risen to $4.55 per gallon, and why the risk of gasoline prices reaching $5 can no longer be ignored." (Jin10 Data) Recommended Reading:

[SMM Data: Complete Summary of SMM March 2026 Import and Export Data] SMM March 2026 import and export data showed: copper cathode net imports were lower YoY; primary aluminum imports reached 255,000 mt, up 14.8% YoY; refined lead imports surged significantly; zinc ingot imports were up 220% MoM; tin ore imports were up 122% YoY; silver imports were up 93% MoM; steel exports rebounded MoM; PV module export value was up 122.7% MoM; silicon metal exports were up 43% MoM, and magnesium exports hit a multi-year high. Among new energy materials, exports of LiPF6 and artificial graphite surged significantly.

SMM, April 22: The global new energy and AI industries maintained high prosperity, coupled with traditional consumer electronics entering a seasonal peak, driving a comprehensive recovery in demand for copper foil and high-speed connectivity products. In March 2026, China's copper foil exports hit a single-month record high. The power and ESS sectors maintained high prosperity with steadily growing orders; AI-related orders remained robust, with optimistic demand for copper foil across all specifications, and the operating rate of copper foil enterprises rose both YoY and MoM in March. Supported by these fundamentals, copper cable high-speed connectivity, as a core component of AI computing infrastructure, continued to see improving demand expectations. Combined with resonating capital sentiment in the sector, copper cable high-speed connectivity concept stocks strengthened overall on April 22. As of the close on the 22nd, the copper cable high-speed connectivity concept rose 2.29%. Among individual stocks, Far East Holdings hit the daily limit, while Hengtong Optic-Electric, ZTT, Shenlan Technology, Changxin Bochuang, Zhaolonginterconnect, and Kingsinno led the gains. News [State Council: Advancing Computing Power Layout and Edge Computing Power Development in an Orderly Manner, Improving Intelligent Computing Cloud Service System] The State Council issued the "Opinions on Promoting the Expansion and Quality Improvement of the Service Industry." It mentioned deepening the implementation of the Industrial Internet innovation and development project, advancing the industrial data foundation initiative, cultivating data cooperation consortia, and building a number of high-quality industry datasets. It also called for developing professional services such as data annotation and certification, exploring the establishment of classified and graded mechanisms for data rights confirmation, evaluation, and pricing. Computing power layout and edge computing power development will be advanced in an orderly manner, and the intelligent computing cloud service system will be improved. The application of urban information modeling platforms and building information modeling technologies will be accelerated. [China's Intelligent Computing Power Scale Reaches 1882 EFLOPS] Zhang Yunming, Vice Minister of the Ministry of Industry and Information Technology, stated on the 21st that computing power infrastructure has become a key foundation driving the development of artificial intelligence. As of month-end in March, China's intelligent computing power scale reached 1882 EFLOPS. At a press conference held by the State Council Information Office on the same day, Zhang Yunming said that recently, the Ministry of Industry and Information Technology has been making sustained efforts in key areas such as enabling small and medium-sized enterprises with inclusive computing power and computing-electricity coordination, and the computing power industry has shown a positive development trend. Industrial innovation has become stronger, with the in-depth implementation of the computing power foundation "open competition" initiative, the conduct of policy research and standard formulation for computing-electricity coordination, and the promotion of accelerated implementation of generation-grid-load-storage and green electricity direct connection. Network transmission has become smoother, with over 70 computing power corridors built around computing power hubs over the past two years, and the implementation of the metropolitan "millisecond computing" special initiative, among others. [National Advanced Computing Industry Innovation Center Qingdao Base Officially Launched] According to Sugon, on April 22, the National Advanced Computing Industry Innovation Center Qingdao Base was officially launched in Laoshan District, Qingdao. The National Advanced Computing Industry Innovation Center is a national-level industrial innovation platform established in 2018 with the approval of the National Development and Reform Commission (NDRC), aimed at achieving breakthroughs in core technologies in the field of advanced computing and fostering internationally competitive industrial clusters. The Qingdao base launched this time, co-built with the participation of Sugon, will leverage regional industrial advantages to create an advanced computing innovation platform integrating technology R&D, commercialization of research outcomes, and industrial incubation, further pooling industry resources, driving regional industrial intelligent upgrading, and injecting strong "computing power momentum" into the digital economy development of Qingdao and even Shandong Province. [Yuandong Holdings: Q1 2026 Net Profit of 96.6284 Million Yuan, up 110.36% YoY] Yuandong Holdings disclosed its Q1 2026 report on April 22. The company achieved total operating revenue of 5.325 billion yuan, up 9.26% YoY; net profit attributable to the parent company was 96.6284 million yuan, up 110.36% YoY. [Rickda: Achieved Small-Batch Delivery of 400G/800G Products and Is Driving Capacity Ramp-Up] Rickda released an investor relations activity record announcement. The company is a quality supplier capable of simultaneously providing comprehensive solutions for optical, electrical, microwave, high-speed data, and fluid connections. It has also deployed multiple products for AI applications, including power supply, high-speed transmission, and liquid cooling categories. High-speed copper cable connector-related products are primarily led by Suzhou Richuang Connection Technology Co., Ltd., with planned products mainly including AEC, DAC, and ACC high-speed copper cable products, high-speed board-to-board connectors, high-speed I/O connectors, and other product series. Currently, Richuang has achieved small-batch delivery of 400G/800G products and is driving capacity ramp-up, while multiple products with even higher speeds are also progressing as planned. [Tongguan Copper Foil: The Company's High-Frequency High-Speed PCB Copper Foil Can Be Widely Used in 5G Communication Equipment, High-Computing-Power Servers, and Other Network Equipment and Network Connectors] Tongguan Copper Foil stated on the investor interaction platform on March 23 that the company's high-frequency high-speed PCB copper foil can be widely used in 5G communication equipment, high-computing-power servers, data centers, switches, and other network equipment and network connectors. [Xinhongye: Dedicated Technical Research Has Been Conducted in the High-Speed Copper Cable Connection Field for Intelligent Computing Scenarios] Xinhongye stated on the interaction platform on March 17 that the company pays close attention to the development trends of computing power data centers and the computing-power-and-electricity synergy industry, and will leverage its core business and technological advantages to continuously track industry dynamics and prudently evaluate opportunities for penetration and deployment in related fields. The current AI intelligent computing industry is trending toward the parallel development and synergy of optical and copper solutions. Leveraging its core copper cable technology advantages, the company has launched dedicated technical research in the high-speed copper cable connectivity domain for intelligent computing scenarios. Meanwhile, in line with the industry's technological evolution, the company maintains forward-looking technical research and market tracking in fiber optic-related fields, and is expected to steadily advance related deployments based on industry demand, technological development, and its own strategic planning. AI-Related Orders Remain Red-Hot with Optimistic Demand across All Copper Foil Specifications According to SMM, the operating rate of Chinese copper foil enterprises rose both YoY and MoM in March 2026. Downstream demand recovered rapidly after Chinese New Year, with both production and sales of lithium battery copper foil and electronic circuit copper foil climbing in March, bringing the overall industry operating rate close to 90%. End-use demand side, the power and ESS sectors maintained high prosperity with steady order growth. The traditional consumer electronics industry transitioned smoothly into peak season, AI-related orders remained red-hot, and demand across all copper foil specifications performed optimistically . Global New Energy and AI Industries Show High Prosperity — March Copper Foil Exports Hit a Single-Month Record High According to data from the General Administration of Customs, China's copper foil (HS codes: 74101100, 74102190) imports in March 2026 totaled 8,220.04 mt, up 11.88% YoY and up 27.59% MoM. China's copper foil exports in March 2026 totaled 6,663.48 mt, up 56.19% YoY and up 38.23% MoM. Statistics showed that both China's copper foil imports and exports rose to elevated levels in March 2026, with exports hitting a single-month record high. Global new energy and AI industries exhibited high prosperity, coupled with optimistic demand during the seasonal consumption peak. Voices from Various Parties A Huaxi Securities research report stated that external geopolitical risks persist at the current juncture, and market risk appetite may affect short-term market fluctuations. AI remains a key investment theme in the near term, with attention on domestically produced computing power and computing power leasing driven by supply-demand imbalance, as well as optical module and fiber optic cable segments with strong earnings certainty. Computing power supply-demand imbalance is intensifying, with computing power consumption expanding sharply and the three major cloud providers collectively raising prices. On one hand, the current supply-demand imbalance reflects robust demand in upstream chips and computing power leasing industries, with enhanced bargaining power driving price increases, benefiting domestic AI chip and computing power leasing producers. On the other hand, rising AI service costs will be transmitted to downstream application development, potentially accelerating downstream industry consolidation and improving computing power utilization efficiency. Changjiang Securities believed that geopolitical conflicts were accelerating the restructuring of global supply chains, enhancing China's irreplaceability as the "world's factory," and that related export chain and manufacturing leading assets may command a "scarcity premium." In terms of allocation, regardless of whether the Middle East conflict fluctuated, three main themes should be firmly pursued. First, the AI trend that conflicts could hardly alter — focusing on AI infrastructure such as computing power, storage capacity, and power equipment, as well as "HALO" asset opportunities. Second, the urgency of conflicts accelerating the energy revolution — focusing on new energy sectors such as lithium battery and hydrogen energy, as well as resource commodities including non-ferrous metals, oil, and coal. Third, sectors at cyclical bottoms where earnings were expected to gradually improve, such as chemicals, steel, and condiments. Data showed that the CSI A500 Index, closely tracked by A500 ETF South China, covered high-quality large- and mid-cap leading enterprises in A-shares, evenly distributed across core areas such as emerging manufacturing and consumption upgrading, with a focus on new quality productive forces. Investors could gain exposure through A500 ETF South China and its feeder funds in one step. A Huatai Securities research report believed that, with the rapid increase in demand for 800G and 1.6T optical modules in recent years and the approaching 3.2T era, the development opportunities for upstream core materials of optical modules were promising. It systematically reviewed the growth logic of two major industries — InP substrates and thin-film lithium niobate. InP substrates, as upstream core raw materials for optical chips, benefited from the rapid boost in demand from optical chip producers, with the industry showing an undersupply trend. Modulators made from thin-film lithium niobate, leveraging advantages such as low power consumption and high bandwidth, were expected to enter an adoption window in 3.2T pluggable solutions in the future, with broad growth potential across the industry chain. A Shanxi Securities research report indicated that NVIDIA made a $2 billion strategic investment in Marvell to cooperate on expanding the NVLINKFusion ecosystem. On March 31 local time, NVIDIA and Marvell announced a strategic partnership to connect Marvell with NVIDIA's AI factory and AI-RAN ecosystem through NVIDIA NVLINKFusion. Marvell would provide customized XPUs and NVLINKFusion-compatible expansion networks, while NVIDIA would provide supporting technologies, including Vera CPU, ConnectX NICs, Bluefield DPU, NVLINK interconnects, and SpectrumX switches, as well as rack-scale AI computing. Marvell is one of the world's leading ASIC custom service providers, with clients including AWS, Microsoft, and Google. It is a major global supplier of optical module DSP and EIC, and has focused on CPO deployment through the acquisition of CelestialAI. We believe that NVIDIA's strategic investment in Marvell is expected to enhance Marvell's design capabilities in memory semantics, high-speed SERDES, and super-node systems, and to facilitate the expansion of the NVLINKFusion ecosystem. NVIDIA's NVLINK Scaleup technology encompasses an overall solution covering NVLINK SERDES, NVLINK chiplets, NVLINK switches, and rack-scale expansion architecture (including NVLINK SPINE, copper cabling systems, innovative mechanical architecture, power supply, and liquid cooling technologies). NVIDIA unveiled a complete copper-connected rack-scale solution at GTC 2026, including Rubin NVL72, Rubin Ultra NVL144, LPX 256, and ETL 256. Shanxi Securities believed that Marvell's participation is expected to expand the addressable market for copper connectivity. NVIDIA has positioned CPO as one of the most important transformations in Feynman-generation Scaleup technology, and combined with Marvell's silicon photonics technology, we believe the CPO penetration rate is expected to gradually increase. Soochow Securities' research report commenting on Fujida noted: a leading player in China's RF connector industry. The company specializes in the R&D, sales, and services of connectors, cables, cable assemblies, and microwave components, holding a leading position in China and non-China markets. Since its establishment in 1998, the company has been deeply engaged in the RF interconnect field. Backed by AVIC Optronics (its controlling shareholder), it has gradually expanded from traditional general-purpose RF connectors to high-end new product categories, including RF cables (aerospace applications), advanced ceramic products (chip integrated packaging applications), and RF links (active and passive microwave components). In 2025, the company achieved revenue of 881 million yuan and net profit attributable to the parent company of 78 million yuan, up 15.5% and 52.0% YoY, respectively. The company has positioned itself in five core tracks, with broad prospects for high-end connectors: 1) Demand in the defense informatization sector remained strong, with new products showing considerable potential. 2) The civil aerospace satellite sector has become a new growth engine. 3) The semiconductor equipment industry urgently needs high-end RF/electrical connectors. 4) The domestic supply chain for high-end electronic measurement instruments is embracing opportunities. 5) High-speed copper cables and quantum communication cable products are benefiting from the data center construction boom. Large-scale growth in data center infrastructure is boosting high-speed transmission products to gradually evolve toward system-level solutions. The company's high-speed copper cables have achieved product category expansion around 400G components, reaching an internationally leading level; meanwhile, in the quantum communication field, the company has deployed cryogenic superconducting cables, achieved initial small-batch supply, and is expected to gradually achieve commercialization. Recommended Reading:

SMM April 22: Metals market: As of the midday close, domestic market base metals mostly rose. SHFE copper was up 0.12%. SHFE aluminum was up 0.26%. SHFE lead was down 0.59%, and SHFE zinc was up 0.23%. SHFE tin was down 0.58%, and SHFE nickel was up 0.79%. In addition, the most-traded foundry aluminum futures were up 0.17%, and the most-traded alumina contract was up 0.14%. The most-traded lithium carbonate contract was up 0.21%. The most-traded silicon metal contract was up 0.4%. The most-traded polysilicon futures were up 5.24%. Ferrous metals mostly rose. Iron ore was up 0.64%, rebar and hot-rolled coil were both up less than 0.5%, and stainless steel was down 0.1%. Coking coal and coke: the most-traded coking coal contract was up 1.31%, and the most-traded coke contract was up 1.12%. Overseas market base metals, as of 11:48, LME metals were nearly all up. LME copper was up 0.79%. LME aluminum was up 0.59%, LME lead was down 0.26%, and LME zinc was up 0.1%. LME tin was up 1.44%. LME nickel was up 1.02%. Precious metals, as of 11:48, COMEX gold was up 1.2%, and COMEX silver was up 2.04%. Domestic market precious metals: the most-traded SHFE gold contract was down 0.54%, and the most-traded SHFE silver contract was down 1.91%. In addition, as of the midday close, the most-traded platinum futures were down 0.17%, and the most-traded palladium futures were up 0.35%. As of the midday close, the most-traded Europe containerized freight index contract was up 3.92%, at 2,205.7 points. As of 11:48 on April 22, midday futures quotes for selected contracts: Spot cargo and fundamentals Zinc: In the Tianjin market, #0 zinc ingot was mainly traded at 23,980-24,120 yuan/mt, Zijin brand at 24,060-24,140 yuan/mt, and #1 zinc ingot at around 23,980-24,060 yuan/mt. Zijin was quoted at a discount of 30-40 yuan/mt against the 2605 contract. Huzinc was quoted at 25,170 yuan/mt. #0 zinc ingot was quoted at a discount of 50-120 yuan/mt against the 2605 contract. Tianjin was quoted at a discount of around 50 yuan/mt against Shanghai. Macro front China: [Ministry of Emergency Management: China's total work safety accidents dropped significantly in Q1] April 22 - According to the Ministry of Emergency Management, China's total work safety accidents dropped significantly in Q1, with the safety situation in most regions and industry sectors improving notably. Shen Zhanli, Director of the Press and Publicity Department of the Ministry of Emergency Management, said that a total of 3,258 work safety accidents of various types occurred nationwide in Q1, down 26.7% YoY. No extraordinarily serious accidents occurred, but major accidents and significant near-miss incidents were frequent in some regions and industry sectors. Illegal production activities in sectors such as mining, chemicals, fire safety, and fireworks showed signs of resurgence. The pressure to prevent and curb major and extraordinarily serious accidents further increased, and the work safety situation remained challenging. Natural disaster side, China's Q1 was dominated by low-temperature freezing rain and snow, snowstorms, wind and hail, and earthquakes, with droughts, floods, forest fires, and geological disasters also occurring to varying degrees. (Xinhua News Agency) (Jin10 Data) [China Motorcycle Chamber of Commerce: Motorcycle Exports Reached 4.6268 Million Units in Q1] Based on customs data analysis, from January to March 2026, China's motorcycle exports totaled 4.6268 million units, up 13.49% compared to the same period last year, with an export value of $3.014 billion, up 16.93% compared to the same period last year. Latin America was the largest export destination, with exports of 1.4812 million units, down 8.47% YoY, and an export value of $963 million, down 0.99% YoY. Africa saw the largest growth, with exports of 1.753 million units, up 44.95% YoY, and an export value of $949 million, up 48.01% YoY. (Jin10 Data APP) [PV Patent Pool Expert Advisory Committee Inauguration Ceremony and PV Patent Pool Co-building Seminar Held in Beijing] On April 21, the PV Patent Pool Expert Advisory Committee Inauguration Ceremony and PV Patent Pool Co-building Seminar was held in Beijing. The establishment of the Expert Advisory Committee aimed to provide regulatory supervision and guidance over the construction and operation of China's PV patent pool, promoting its lawful, compliant, and healthy development. After prior solicitation, selection, and review, the first batch of 14 experts were selected, covering fields including intellectual property management, PV technology R&D, legal litigation, and antitrust research. At the event, representatives from enterprises including TrinaSolar Co., Ltd., JA Solar Technology Co., Ltd., and Jinko Solar Holdings Co., Ltd. jointly launched the PV patent pool in the TOPCon battery technology field. (National Industrial Information Security Development Research Center) [PBOC Net Injected 5.5 Billion Yuan via Reverse Repo Operations] The PBOC conducted 6 billion yuan of 7-day reverse repo operations today. As 500 million yuan of 7-day reverse repos matured today, a net injection of 5.5 billion yuan was achieved. (Jin10 Data APP) US dollar side: As of 11:48, the US dollar index was up 0.01% at 98.4. Fed Chairman nominee Kevin Warsh rebutted Democrats' concerns that he would become the President's "puppet," repeatedly emphasizing that he would be an independent decision-maker if his nomination was confirmed by the Senate. Warsh stated at the Senate Banking Committee hearing on Tuesday that a series of reforms should be made to how the US Fed makes decisions, including establishing a new inflation response framework and improving communication with the public. But he provided few details and dodged questions about the near-term path of short-term interest rates. (Wallstreetcn) According to CME "FedWatch": the probability of the US Fed raising interest rates by 25 basis points in April was 0%, and the probability of keeping rates unchanged was 100%. The probability of a cumulative 25-basis-point interest rate cut by the US Fed through June was 1.7%, and the probability of keeping rates unchanged was 98.3%. (Jin10 Data) A CITIC Securities research report stated that Warsh's testimony demonstrated the highly difficult balancing act he faces. On one hand, he needs to "please" Trump to a certain extent, thus acknowledging Trump's right to voice opinions on interest rates; on the other hand, he needs to earn the trust of the market and the US Fed internally, thus emphasizing the mission of price stability and the independence of the US Fed. Although Warsh's performance was unsatisfactory when facing questions from Democratic senators, this has a relatively small impact on whether Warsh can succeed Powell. Whether Warsh can successfully pass the Senate Banking Committee vote depends on whether he can secure the support of Republican Senator Tillis. We believe Trump will most likely TACO and withdraw the investigation into Powell to help Warsh pass the Senate vote. Warsh emphasized during the Q&A session that he would not become Trump's "puppet," and the market leaned toward hawkish trading. Warsh's ideas on reforming the US Fed deserve more market attention, especially his proposal that the US Fed needs a new inflation framework and his criticism of the US Fed's current approach to forward guidance. Warsh emphasized that the US Fed should shrink its balance sheet, with interest rates as the primary policy tool. However, we still believe Warsh's plan to shrink the balance sheet requires lengthy preparation, and the pace of implementation will be gradual. A CICC research report stated that Fed Chairman nominee Kevin Warsh attended the Senate Banking Committee hearing, revealing his core policy stance of a dual-track approach of "balance sheet reduction and interest rate cuts": at the balance sheet level, he explicitly opposed normalizing quantitative easing (QE), advocating for a gradual and orderly reduction of the US Fed's balance sheet size, exiting quasi-fiscal functions, and returning it to its monetary policy mandate; at the interest rate level, although he made no explicit commitment, his statements already showed an inclination toward cutting interest rates. In our view, Warsh's policy stance is not only an adjustment to the monetary transmission mechanism but also an extension of the "America First" strategy into the monetary domain amid the wave of deglobalization — shifting from a "global central bank" that endlessly supplies liquidity to the world, toward a new approach that firmly controls the monetary spigot, focuses on domestic productivity, and emphasizes monetary sovereignty. We believe this shift means the narrative of persistently excessive US dollar liquidity will face correction, and assets that purely rely on liquidity-driven gains and benefit from "US dollar over-issuance" may come under pressure. (Jin10 Data) Other currencies: Japan's March imports and exports continued to grow, but the trade outlook for the coming months remains clouded by the Middle East war. Yasuhisa Irie, an economist at Mizuho Securities, said that in the short term, Japan's total import value is likely to remain roughly flat, as supply constraints suppressed imports and high energy prices eroded consumer confidence, thereby limiting demand. Takeshi Minami, an economist at Norinchukin Research Institute, expected the consequences of energy shortages to become more apparent starting in April. Minami said: "Although the Japanese government has begun to release crude oil reserves and claims to have secured alternative procurement routes that do not rely on the Strait of Hormuz, a prolonged blockade could lead to significant economic contraction in emerging markets with smaller oil reserves." He added that this situation is expected to harm the Japanese economy in multiple ways, including a slowdown in economic activity and intensified inflationary pressures. (Jin10 Data) Data: The preliminary eurozone consumer confidence index for April, the UK March CPI monthly rate, and the UK March retail price index monthly rate will be released today. In addition, US Fed Governor Waller will deliver a speech at the Brookings Institution. Crude oil: As of 11:48, oil prices in both markets edged down, with WTI falling 0.22% and Brent falling 0.07%. Oil prices moved sideways as the market weighed the prospects of US-Iran peace negotiations. Data released by the American Petroleum Institute (API) showed that US crude oil inventory declined. For the week ending April 17, API crude oil inventory was -4.47 million barrels (expectations: -1.8 million barrels, previous: 6.101 million barrels). For the same week, API gasoline inventory was -5.165 million barrels (expectations: -1.333 million barrels, previous: 626,000 barrels). (Jin10 Data) Mitsubishi UFJ analyst Lloyd Chan said in a research note that the US-Iran conflict appeared to have shifted into a prolonged stalemate rather than a swift resolution. The senior currency analyst said the US appeared to be using a blockade of Iranian ports to pressure Tehran into a peace deal, or risk further military escalation. Chan said: "For markets, this environment means continued disruption to energy shipments through the Strait of Hormuz." The analyst added that pressure points were more evident in oil-sensitive currencies, including the Philippine peso and the Thai baht. (Jin10 Data) A research report from CITIC Securities noted that the recurring tensions in the Strait of Hormuz indicated that the impact of this round of events on the oil shipping market was still unfolding according to a three-phase logic. After a brief reopening on April 17, Iran reimposed the blockade on April 18, indicating that the situation had not yet stabilized. Regardless of how the U.S.-Iran standoff develops going forward, the market is still in the process of the Hormuz blockade shock gradually transmitting to oil shipping fundamentals. Oil shipping freight rates evolved in three stages: rates rose during the conflict period, vessel redeployment lengthened shipping distances and pushed up the freight rate center, and after the reopening, a rush to secure oil may drive freight rates higher for over two months. Currently, the third stage — the inevitable global scramble for crude oil following the reopening of the Strait of Hormuz — will inevitably transmit to the oil tanker shipping market. (Jin10 Data) Spot Market Overview: ► ► ► ► ► ► ► ► ► ►

According to the latest data from SMM Customs, imports of SMM hydrometallurgy intermediate products in March 2026 reached 171,240 mt in physical terms, up 37% MoM and up 1.4% YoY. By country, the main incremental volumes this month came from hydrometallurgy intermediate products imported from Papua New Guinea, Indonesia, and New Caledonia.

In March 2026, China’s alumina imports and exports showed significant changes: imports totaled 338,300 metric tons, an 86.9% increase from the previous month, but a substantial 2,928.8% increase year-over-year; exports totaled 209,400 metric tons, a 43% increase from the previous month, but a 29.4% decrease year-over-year.