On June 3 local time, the White House issued a statement announcing that US President Trump would raise tariffs on imported steel, aluminum, and their derivative products from 25% to 50%, effective at 00:01 Eastern Time on June 4, 2025.

Macro News 1. On June 17 local time, during his attendance at the second China-Central Asia Summit in Astana, President Xi Jinping met with Uzbek President Shavkat Mirziyoyev. The two heads of state exchanged views on the current situation in the Middle East. Xi Jinping stated that Israel's military actions against Iran have suddenly intensified tensions in the Middle East, and China is deeply concerned about this. China opposes any actions that infringe upon the sovereignty, security, and territorial integrity of other countries. Military conflict is not the way to resolve issues, and the escalation of regional tensions does not serve the common interests of the international community. All parties should work to de-escalate the conflict as soon as possible and prevent further escalation of tensions. China is willing to work with all parties to play a constructive role in restoring peace and stability in the Middle East. 2. Li Bin, Deputy Director of the State Administration of Foreign Exchange and spokesperson, stated that in May, the overall supply and demand of foreign exchange at home and abroad were balanced, and the foreign exchange market operated smoothly. In May, the net inflow of cross-border funds from non-bank sectors, including enterprises and individuals, amounted to $33 billion. Among them, the net inflow of funds from trade in goods remained at a relatively high level, and foreign investors' holdings of domestic stocks increased further compared to the previous month. The net outflow of funds from services trade, dividend distributions by foreign-invested enterprises, and outward direct investment remained generally stable. 4. Yesterday, a reporter asked whether there were plans to evacuate Chinese citizens in Iran and Israel amid the escalating conflict between Israel and Iran. Foreign Ministry spokesperson Guo Jiakun stated that some Chinese citizens have already been safely evacuated to neighboring countries. The Foreign Ministry and relevant embassies and consulates are working with relevant departments to fully ensure the safety and protection of Chinese citizens in Iran and Israel and to organize the evacuation of Chinese citizens promptly. 6. At yesterday's regular press conference of the Foreign Ministry, a reporter asked about the Financial Times report that the EU had canceled the high-level China-EU economic dialogue, believing that discussions with China were meaningless without progress on trade issues. Guo Jiakun responded by saying to inquire with the competent Chinese authorities. Guo Jiakun stated that strengthening strategic communication and deepening dialogue and cooperation between China and the EU are beneficial to the world. Industry News 1. Zhang Guoqing, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, conducted a survey on industrial innovation and the promotion of the healthy development of the platform economy in Guangdong from the 15th to the 17th. He emphasized the need to thoroughly implement the important instructions and directives of General Secretary Xi Jinping, implement the decisions and deployments of the CPC Central Committee and the State Council, promote the deep integration of technological innovation and industrial innovation, continuously shape new momentum and advantages for development, adhere to the principle of equal emphasis on development and regulation, focus on improving the governance system of the platform economy, and create a fair and orderly environment for the development of the platform economy. 2. The State-owned Assets Supervision and Administration Commission (SASAC) of the State Council held the second thematic promotion meeting for the 2025 Action Plan for Deepening and Enhancing the Reform of State-owned Enterprises in Shenzhen, Guangdong Province, on the 17th. The meeting called for efforts to improve the quality of technological innovation supply, take on responsibilities in building a modern industrial system, make tangible progress in collaborative innovation and the application of research outcomes, and achieve breakthroughs in improving the innovation evaluation and incentive mechanisms. It also urged active promotion of AI-led transformations in the scientific research paradigms of state-owned enterprises, as well as the creation and opening up of strategic, high-value application scenarios. The meeting emphasized that completing the deepening and enhancement action plan with high quality should be the top priority for this year's state-owned enterprise reforms, with a focus on achieving tangible results. 3. The International Energy Agency's new medium-term outlook indicates that global oil supply growth will far exceed demand growth in the coming years. 4. The National Development and Reform Commission (NDRC) announced that starting today, domestic gasoline and diesel prices will be increased by 260 yuan/mt and 255 yuan/mt, respectively. In terms of price per liter, 92-octane gasoline will increase by 0.2 yuan, while 95-octane gasoline and 0-diesel will both increase by 0.22 yuan. After this price increase, filling up a 50L fuel tank of a family car with 92-octane gasoline will cost an additional 10 yuan. 5. According to a survey report titled "The New Silver Hair Economy Will Become Another 'Strategic Opportunity' for Upgrading Consumption Quality" released by the Shanghai Consumer Council, the new silver hair economy will become an important engine for upgrading consumption quality. The consumption demands of the new silver hair group are highly concentrated in areas such as "health and wellness," "travel and socializing," and "hobbies and interests." 6. The commencement ceremony for the EPCI project of the Shanghai Lingang Submarine Data Center Demonstration Project, participated in by the Second Company of CCCC Third Harbor Engineering Co., Ltd., was held in Nantong. As the world's first zero-carbon new infrastructure benchmark for offshore wind power-integrated submarine data centers, this project will help Shanghai reach the international forefront in the field of green and low-carbon computing infrastructure. 7. During an inspection of a shipment of children's toys and plastic cups, customs officers from Beilun Customs, under the jurisdiction of Ningbo Customs, discovered that a plush toy was suspected of infringing on the copyright of the "Labubu Spring Elf Series." After contacting the rights holder for confirmation, it was determined that the entire shipment was infringing. Upon inventory, it was found that there were 20,240 infringing children's toys. 8. Relevant officials from the Guangdong Provincial SASAC stated at the second thematic promotion meeting for the 2025 Action Plan for Deepening and Enhancing the Reform of State-owned Enterprises that Guangdong Province has increased its investment in strategic emerging industries and high-tech enterprises, establishing the Guangdong Advanced Manufacturing Industry Investment Fund and the Strategic Industry Promotion and Development Fund, with a total subscribed capital of approximately 70 billion yuan and 52 investment projects. Company News 1. New World Development stated on an interactive platform that its shopping malls have POP MART vending machines. 2. PetroChina Capital announced its plan to invest 655 million yuan to increase the capital of Kunlun Capital for investment in controllable nuclear fusion projects. 3. SmartSens Technology announced that the shareholding ratio of the National Integrated Circuit Industry Investment Fund Phase II has decreased to 6.99%. 4. BOE Technology Group Co., Ltd. announced its plan to acquire a 30% stake in CHOT. 5. RemeGen announced that Telitacicept has been granted orphan drug designation by the European Union. 6. Dematic announced its strategic cooperation intention with Zhiyuan Xinchuang to explore innovative applications of embodied intelligent robots in logistics scenarios. 7. GCoreLab announced the successful internal testing of its new anti-quantum cryptographic card, which has been sampled to multiple customers. 8. Yuanlong Yatu stated on the interactive platform that its revenue from IP-related businesses with POP MART in 2024 was approximately 2.21 million yuan. 9. Eastcompeace Technology announced that in recent years, the company has actively deployed R&D and applications in fields such as blockchain, but faces risks of new technology R&D and commercial applications not meeting expectations. 10. Asian Paints announced that Runhe Tongcai intends to passively reduce its shareholding in the company by 3% due to the triggering of a mandatory liquidation procedure. Global Markets 1. US stocks opened lower and closed lower, with all three major indices ending in the red. The Nasdaq fell 0.91%, the S&P 500 fell 0.84%, and the Dow fell 0.7%. Major tech stocks generally declined, with Tesla falling nearly 4% and Apple falling over 1%. Most popular Chinese ADRs closed lower, with the Nasdaq Golden Dragon China Index falling 1.77%. Major European stock indices also closed lower, with the German DAX30 index falling 0.86%. 2. International crude oil futures settlement prices rose sharply by over 4%. WTI crude oil futures for July rose 4.28%, and Brent crude oil futures for August rose 4.4%. 3. COMEX gold futures fell 0.37%, while COMEX silver futures rose 1.97%. Investment Opportunities Reference 1. China's annual cross-border e-commerce export scale exceeds 2 trillion yuan, with leading sellers expected to continue increasing market share According to media reports, at the 2025 China Langfang International Economic and Trade Fair, which opened on June 16, the Statistical Analysis Department of the General Administration of Customs introduced China's cross-border e-commerce import and export situation in 2024, stating that China's cross-border e-commerce export scale exceeded 2 trillion yuan in 2024, reaching 2.15 trillion yuan, a 16.9% increase from 2023, setting a new historical high for cross-border e-commerce scale. A survey of enterprises by the customs showed that over 70% of enterprises expected cross-border e-commerce import and export to remain stable or grow in 2025. Cinda Securities believes that the increasing penetration of online channels in overseas consumer markets will continue to be an important opportunity for Chinese brands to go global. Leading sellers in cross-border e-commerce are focusing on brand strategies and leveraging their core supply chain advantages, and are expected to continue increasing their market share. 2. Ten new low-altitude logistics routes have been added in the region, and 2025 is expected to be the first year for the commercial application of the low-altitude economy to take root. According to media reports, the Hanshang Low-Altitude Port, which connects the core areas of the three towns of Wuhan (Wuchang, Hankou, and Hanyang) through flight service routes, has officially commenced operations. It is understood that the Hanshang Low-Altitude Port is constructed and operated by Hanshang Low-Altitude Technology Co., Ltd., a subsidiary of Hanshang Group. Currently, it has formed a specialized low-altitude logistics operation system comprising one digital real-time dispatching platform, two intelligent command centers, ten low-altitude routes, and 22 intelligent parking aprons. It primarily serves the distribution and emergency support of commodities such as seafood, fresh-cut flowers, and pharmaceuticals. Galaxy Securities believes that 2025 is expected to be the first year for the commercial application of the low-altitude economy to take root, with infrastructure such as air traffic control systems and takeoff and landing sites accelerating in construction. Kaiyuan Securities further analyzed that the low-altitude economy has ushered in vertical implementation from the macro level (national-level industrial planning) to the meso level (local subsidies in various regions) and then to the micro level (infrastructure mainframe tenders and application scenario creation). It is recommended to pay attention to the subsequent market trends of the low-altitude economy sector. 3. The region's first project of this kind has officially landed! Policy dividends are emerging, injecting strong momentum into foreign trade growth. According to media reports, recently, the Macun Port Customs under Haikou Customs successfully handled the customs clearance procedures for a cross-border bonded lease of a "Lancang" electric multiple unit (EMU) trainset declared by a leasing company within the Haikou Integrated Free Trade Zone, marking the official landing of Hainan Free Trade Port's first cross-border railway EMU leasing project. Currently, the EMU trainset has been delivered to Laos-China Railway Co., Ltd., effectively enhancing the passenger transport supply capacity of the Lao section of the China-Laos Railway and driving regional economic development. "Unlike previous direct sales and exports, the bonded lease approach significantly reduces the investment and operating costs for foreign enterprises. It also helps promote international cooperation and optimal resource allocation, providing more foreign enterprises with access to China's manufacturing resources and market opportunities," said a relevant person in charge of the leasing company. This business represents an important milestone in the company's cross-border leasing business layout. A relevant person in charge of Haikou Customs stated that the customs will strengthen communication and exchanges with various parties, including the Haikou Integrated Free Trade Zone and leasing companies, to further leverage the policy advantages of the Hainan Free Trade Port. By facilitating financing and customs clearance, it will promote industrial development and accelerate the "going global" of large-scale rail transit equipment made in China. According to statistics from Haikou Customs, as of late May this year, the import value of goods under Hainan Free Trade Port's three "zero-tariff" lists reached 22.69 billion yuan, with tax exemptions and reductions totaling 4.32 billion yuan. The early policy dividends of the Hainan Free Trade Port are emerging, injecting strong momentum into foreign trade growth. 4. Hard to Get a Ticket! Number of Scottish Premiership Sponsors Surges to 20 It was reported that as of June 16, the number of Scottish Premiership sponsors had reached 20, more than three times the number at the start of the season. Amid sustained high popularity, the sponsorship fees for the "Scottish Premiership" had soared to 3 million yuan, and it was hard to get a ticket. Meanwhile, according to booking data from Meituan Travel, the booking volume for cultural and tourism activities in Jiangsu Province during the summer vacation had increased by 41% YoY. Over the past weekend, the tourism order volume in Jiangsu Province had surged to the top nationwide, with the order volume for dining in restaurants in Jiangsu contributed by out-of-town consumers increasing by over 49% YoY. The tourism order volume in Nanjing, the provincial capital, led the country, while Suzhou and Yangzhou had both ranked among the top 10, showing a booming trend of "full bloom". The "Scottish Premiership Effect" was amplified by policy support and the platform economy, driving comprehensive growth in the cultural, tourism, sports, and commercial sectors in Jiangsu. The ongoing Jiangsu Provincial City Football League has recently attracted a large number of fans to attend the games. According to Future Report data, the global football market size reached $55.97 billion in 2024 and is expected to expand at a compound annual growth rate of 3.9%, reaching $70.29 billion by 2030. Fang Guangzhao from Kaiyuan Securities believes that driven by both policy support and market demand growth, the Chinese football industry is expected to usher in a period of rapid development, and it is recommended to actively pay attention to investment opportunities related to the football industry chain. The development of the football industry is expected to drive demand for derivatives such as trading cards and sports lotteries. As a core component of the upstream events in the football industry chain, football clubs are expected to see their value continue to rise. In addition, with the rapid development of the football industry, the demand for high-grade football equipment and materials may increase significantly.

[SMM Weekly Survey of Aluminum Downstream: Pressure on Cost Side of Aluminum Processing Industry Intensifies, Most Sectors Show Weakness in New Orders] This week, the overall off-season atmosphere in the downstream aluminum processing industry was strong, with weekly operating rates declining by 0.5 percentage points WoW to 60.4%...

On June 10, the Department of Industry and Information Technology of Henan Province issued a notice on implementing the Implementation Plan for Accelerating the Application of Clean and Low-Carbon Hydrogen in the Industrial Sector. The document states that by 2027, significant progress will be made in supporting equipment and technology promotion for the application of clean and low-carbon hydrogen in the industrial sector. Clean and low-carbon hydrogen will achieve large-scale application in industries such as metallurgy, ammonia synthesis, methanol synthesis, and refining and petrochemicals, and demonstration applications will be realized in fields including industrial green microgrids, shipping, aviation, and rail transit. A number of commercial application models for hydrogen energy in transportation, power generation, and energy storage will be formed. A group of leading enterprises with strong industrial ecological dominance and industrial clusters, as well as system solution providers with high professional standards and strong service capabilities, will be cultivated, and a relatively complete industry chain and industrial system will be initially established. Accelerate the substitution and application of clean and low-carbon hydrogen. Develop low-cost, highly reliable, and off-grid-capable "PV + ESS" technologies and products, continuously improving the supply of low-cost green electricity for hydrogen production and utilization. Under the premise of compliance with industrial restructuring, promote the orderly construction of "hydrogen production + hydrogen utilization" integrated projects by industrial enterprises and industrial parks in regions rich in clean energy sources such as wind and PV power. Promote the development of new models for weak grid-connected and off-grid hydrogen production from renewable energy, and explore new approaches such as the coupled utilization of industrial waste heat and high-temperature electrolysis for hydrogen production, as well as offshore wind power-based hydrogen production. Vigorously develop green methanol production through hydrogen-carbon coupling. Advance the construction of demonstration projects for green methanol, improve carbon conversion rates and methanol selectivity, and strictly prohibit the unauthorized construction of coal-to-methanol projects that do not comply with industrial policies under the guise of green methanol. Actively promote green ammonia synthesis through hydrogen-nitrogen coupling. Encourage energy enterprises, chemical enterprises, shipping transportation enterprises, and shipbuilding enterprises to jointly advance the construction of demonstration projects for green ammonia synthesis, and promote applications such as large-scale off-grid hydrogen production from wind and solar power, flexible scheduling and control of ammonia synthesis processes, and coordinated control of the entire "electricity-hydrogen-ammonia" system. Accelerate the application of hydrogen fuel cell vehicles. Encourage demonstration projects for fuel cell vehicles to utilize high-quality industrial by-product hydrogen and hydrogen produced from renewable energy sources nearby, and promote the construction of integrated hydrogen production and refueling stations based on distributed renewable energy. Continuously advance the "Hydrogen into Every Home" demonstration project, carry out multi-scenario applications of hydrogen energy vehicles, electromechanical equipment, and integrated power supply on highways, in ports, and industrial parks, scientifically evaluate the pilot effects of hydrogen energy applications, and orderly expand the scope of demonstration projects. Steadily develop hydrogen-powered ships, aviation, and rail transit equipment. Support the development of medium- and high-speed hydrogen fuel cell electric multiple units (EMUs), as well as shunting locomotives and heavy-haul locomotives for stations and yards. Encourage regions with suitable conditions to apply hydrogen energy rail transit equipment in scenarios such as suburban commuting, scenic area tourism, and airport shuttle services, as well as on intercity high-speed railways. Explore the development of green industrial microgrids integrating hydrogen and electricity. Encourage industrial enterprises, industrial parks, and data centers to collaborate with energy enterprises in exploring green industrial microgrids integrating hydrogen and electricity through market-oriented approaches. Accelerate the development and operation of integrated systems for wind power, PV power generation, hydrogen production from renewable energy, diversified hydrogen storage, fuel cell power generation/cogeneration, and intelligent energy management and control, to achieve optimized and integrated utilization of regional resources. In addition, provide policy support for capacity extension and replacement for eligible demonstration projects for the industrialisation of low-carbon cutting-edge technologies such as hydrogen-based metallurgy. Encourage local governments to formulate supportive policies for hydrogen production from renewable energy electricity, and encourage hydrogen production projects from renewable energy to participate in the electricity market, reducing hydrogen production costs through measures such as peak shaving and valley filling. Local governments should innovate management models, and integrated hydrogen production and refueling stations are no longer restricted to chemical parks.

Recently, the National Railway Administration organized the compilation of the "Administrative Regulations on the Renovation of Power Source Systems for Aging Railway Diesel Locomotives" (hereinafter referred to as the "Regulations"), and is now soliciting public opinions on the draft. Article 3 of the Regulations clearly states that the renovation of the power source systems for aging railway diesel locomotives involves replacing the fossil fuel-based power systems of aging railway diesel locomotives with power systems such as "diesel engine + power battery system," "power battery system," and "hydrogen fuel cell system + power battery system," which offer superior energy efficiency and emission levels. With the introduction of these Regulations, the railway system has finally initiated a transformation towards hydrogen energy applications, following in the footsteps of the highway, low-altitude aviation, and waterway sectors! The key piece of the hydrogen energy transportation system has fallen into place, and a comprehensive shift towards hydrogen energy substitution is becoming an inevitable trend. The Inevitability of Applying Hydrogen Energy in Railways 1. An Inevitable Choice for Low-Carbon/Zero-Carbon Power Innovation Aging diesel locomotives rely on fossil fuels for power, contributing to over 70% of the railway system's total carbon emissions. Hydrogen-powered locomotives, driven by electricity generated from fuel cells, produce only water as their byproduct and emissions. When paired with green hydrogen (produced through water electrolysis using renewable energy), they can achieve "zero-carbon operation" throughout their entire life cycle. The Mireo Plus H hydrogen fuel cell train, already in operation by Deutsche Bahn (DB), boasts a driving range exceeding 1,000 kilometers and reduces emissions by over 90% compared to diesel locomotives, providing a reference for China's heavy-haul freight transportation and electrification renovation of remote railway lines. 2. Breaking Geographical Limitations in Railway Energy Supply Railway electrification requires the installation of overhead catenary systems. Given China's vast territory and complex geographical environments, including mountainous regions, deserts, and gobi deserts, the construction of railway catenary systems poses significant challenges. Hydrogen-powered locomotives can be powered by onboard hydrogen storage tanks, eliminating the need for reliance on a fixed power grid. This makes them highly adaptable to regions in north-west and south-west China that are rich in renewable energy but have weak power grids. By utilizing locally produced renewable energy for hydrogen production, a closed-loop system of "local hydrogen production - locomotive hydrogen consumption" can be achieved, reducing the costs associated with long-distance electricity transmission. Core Advantages of Hydrogen-Powered Locomotives Hydrogen-powered locomotives possess three major advantages: strong driving range and payload capacities, robust environmental adaptability, and high energy replenishment efficiency. Strong Driving Range and Payload Capacities: Hydrogen fuel cells have an energy density of 3-5kWh/kg and high overall energy efficiency. Hydrogen energy of the same volume can provide locomotives with longer-lasting power supply and higher-power output, enhancing their driving range and payload capacities, making them suitable for long-haul freight transportation. Robust Environmental Adaptability: The design of hydrogen fuel cells combined with insulated hydrogen storage tanks enables the locomotive's power system to operate under a wide range of conditions, adapting to various external climatic conditions and geographical environments. High energy replenishment efficiency: Hydrogen-powered locomotives have a short refueling time, which can be completed within a few minutes. Compared to the several hours required for charging, this is more suitable for the "high-capacity and high-speed" demands of trunk railways. Enhancing the economic efficiency of hydrogen refueling stations The retrofitting of hydrogen-powered locomotives can drive profound changes in the existing hydrogen energy industry system. The certainty of railway routes and the stability of hydrogen consumption are advantages not found in other scenarios, allowing for unified planning and construction. Sharing hydrogen refueling stations with hydrogen fuel cell vehicles and hydrogen-powered rail transit systems can achieve "synchronized hydrogen network operations," expand the market size of applications, and reduce infrastructure construction costs. This will further enhance the economic efficiency of hydrogen refueling station construction and operation, helping hydrogen refueling stations gain greater development space in the energy market. Dual value of "transportation revolution + energy security" 1. Carbon reduction and quality improvement, optimized energy use The application of hydrogen energy power systems will gradually reduce the railway system's reliance on fossil fuels, marking a transformation in the energy structure of railway locomotives. With the development of hydrogen application technologies and power technologies, hydrogen-powered railway locomotives will complement the end-use applications of hydrogen energy in the transportation sector, driving a broader national transportation energy revolution. 2. Reshaping the energy transportation landscape Hydrogen-powered locomotives can transform the "West-to-East Electricity Transmission" into "West-to-East Hydrogen Transportation," significantly expanding the range of hydrogen energy transportation through the railway system. Compared to ultra-high-voltage power transmission, the integrated energy conversion efficiency of hydrogen energy production, storage, and transportation is higher, and it can avoid energy waste caused by long-distance power transmission losses (approximately 6-8% for ultra-high-voltage power transmission). The railway system is a super scenario for hydrogen energy applications. The hydrogenation retrofitting of old locomotive power systems has already sent positive signals. Once hydrogen energy is applied on a large scale in railway locomotives, the market demand for hydrogen energy will grow rapidly, inevitably leading to profound changes in the entire industry chain of hydrogen production, storage, transportation, and utilization.

[SMM Aluminum Morning Meeting Summary: Signals of Easing Trade Frictions Transmitted, Aluminum Prices May Remain in the Doldrums in the Short Term] On the macro front, the phone call between Chinese and U.S. leaders conveyed positive signals of easing trade frictions. If this can prompt the U.S. to revoke unfavorable measures, it will further improve the external environment for the aluminum market. Coupled with the European Central Bank's interest rate cut, which provides a relatively direct and clear positive stimulus for aluminum prices and offers additional support. Fundamentals side, the operating capacity of domestic electrolytic aluminum remains stable, with a slight expected decrease in subsequent casting ingot volumes. Domestic aluminum ingot inventory temporarily maintains a destocking trend. Cost side, the impact of the Guinea mine incident on alumina prices has eased somewhat, and the real-time cost of electrolytic aluminum has declined slightly MoM. On the demand side, there is dual pressure from domestic seasonal weakness and trade uncertainties. In the short term, the operating rate of domestic aluminum processing enterprises will be under pressure, with the off-season atmosphere becoming more pronounced. New orders in sectors such as building materials, PV, and automobiles are all showing signs of weakness. Overall, the current low inventory and the expectation of a higher proportion of liquid aluminum provide strong support for aluminum prices. However, the overall bearish macro environment during the week has caused aluminum prices to face downward pressure at high levels, and the off-season pressure on the demand side limits upside room. Spot aluminum in major consumption areas may soon face a situation of weak supply and demand, with aluminum prices likely to remain in the doldrums and consolidate in the short term.