【SMM Steel】TenarisSSP finalized a SAR 127m supply agreement with Saudi Aramco on Mar 29 for steel pipes for oil and gas ops over 12 months. The deal involves no related parties. The financial impact is expected in H1 2027.

【SMM Steel】Saudi Steel Pipe's subsidiary Global Pipe Co. won a major contract with Subsea 7. The $80 million deal is to supply line pipes for an offshore redevelopment project. The contract duration is 11 months. Details of the project were not disclosed, but Subsea 7 previously secured a long-term deal with Saudi Aramco in Sep 2025 for 106 km of pipelines and offshore facility work.

On January 29, 2026, Lyu Zexiang, Overseas Operations Director of China Energy Engineering Corporation (CEEC), held talks with Nabil R. Al-Khowaiter, Senior Vice President of Saudi Aramco, in Beijing. The two sides engaged in in-depth discussions and reached consensus on deepening exchanges in scientific and technological innovation, as well as expanding cooperation in the fields of new energy, seawater desalination, new-type energy storage, and integrated green hydrogen, ammonia, and methanol. This meeting not only represents a practical measure for China-Saudi Arabia energy cooperation but also aligns with the strategic deployment of the Political Bureau of the CPC Central Committee to "make forward-looking arrangements for future industries such as hydrogen energy." Lyu Zexiang welcomed Nabil R. Al-Khowaiter and his delegation, introducing CEEC's advantages across the entire industry chain in the energy and power sector and its performance in the Middle East market. He stated that the two sides share highly aligned concepts regarding green transformation cooperation. He expressed hope to establish a regular communication mechanism, strengthen technology and information sharing, and jointly expand cooperation in areas such as new energy, cogeneration, seawater desalination, and green hydrogen, ammonia, and methanol, thereby contributing to global energy transition. Nabil R. Al-Khowaiter appreciated CEEC's comprehensive strength and international performance, noting that Saudi Aramco is advancing the diversification of its energy structure and will focus on investing in new energy and other related projects in the future. He stated that CEEC is a trustworthy partner and looked forward to both sides leveraging their respective advantages, innovating cooperation models, deepening multi-field collaboration, and jointly promoting global green and low-carbon development. The Political Bureau of the CPC Central Committee had previously identified hydrogen energy and related fields as new economic growth points for the "15th Five-Year Plan" period, providing direction for international energy cooperation. The current focus on cooperation in areas such as green hydrogen, ammonia, and methanol not only represents a concrete practice in response to the national layout for future industries but will also inject momentum into deepening China-Saudi Arabia energy cooperation and advancing the global energy transition. Participants in the talks included Jamal A. Al-Azizi, Director of Procurement and Supply Chain Management at Saudi Aramco Asia Company; Xin Zongyi, Vice President of CEEC International Group; and relevant officials from both sides.

On Friday (June 13) local time, the International Energy Agency (IEA) stated that it was prepared to release emergency oil reserves if the crude oil market faced shortages following Israel's attack on Iran. This statement drew criticism from its "rival," the Organization of the Petroleum Exporting Countries (OPEC), which claimed that such remarks would only create panic sentiment in the market. The IEA primarily represents some oil-consuming countries, while OPEC represents major oil-producing countries. In recent years, the two have continued to have disagreements on issues such as global oil demand trends and the pace of energy transition. Fatih Birol, the Executive Director of the IEA, stated that the current market supply was sufficient, but the agency was ready to take action if necessary. He added that the IEA's oil security system had 1.2 billion barrels of strategic and emergency oil reserves. In response, Haitham Al Ghais, the Secretary General of OPEC, criticized the IEA for repeatedly emphasizing the need to release emergency oil reserves, an unnecessary move that created false alarms and sparked panic sentiment in the market. Al Ghais emphasized that there had been no changes in either crude oil supply or market dynamics, so "there was no need to take unnecessary measures." It is worth mentioning that after the outbreak of the Russia-Ukraine conflict in 2022, the US and its allies coordinated with the IEA to release emergency oil reserves, a move that was also strongly opposed by OPEC at the time. Reviewing the current incident, according to CCTV News, Israel launched a "pre-emptive strike" on nuclear facilities and military targets inside Iran in the early hours of Friday (June 13). Influenced by this news, international oil prices surged significantly, with the main Brent crude oil futures contract rising by 7% to $78.53 per barrel at one point, the highest level since January this year. Shortly before the news was released, the Islamic Republic News Agency of Iran reported that Iranian President Masoud Pezeshkian condemned Israel's attack on Iran that day and stated that Iran would take a legitimate and forceful response. These statements led market participants to worry that the situation might escalate further, potentially affecting energy infrastructure in Iran and its neighboring countries, and even leading to the blockade of the Strait of Hormuz. Earlier in the day, JPMorgan Chase wrote in a report that if a larger-scale conflict broke out in the Middle East, leading to the blockade of the Strait of Hormuz, the crude oil market could face severe supply disruptions. JPMorgan Chase believed that under extreme geopolitical circumstances, international oil prices could nearly double, rising to levels between $120 and $130. "Oil prices have surged significantly... and future movements will largely depend on whether Iran repeats the 2019 playbook of attacking tankers, pipelines, and critical energy infrastructure," Helima Croft, an analyst at RBC Capital Markets, wrote in a report. In September 2019, Yemen's Houthi rebels launched a drone attack on Saudi Aramco's oil processing facilities in Abqaiq, disrupting 5.7 million barrels per day of Saudi Arabia's capacity and causing severe market volatility. There are concerns that a similar "Abqaiq incident" could recur.

SMM, June 5: Metal Market: As of the daytime close, domestic market base metals generally declined, with only SHFE lead and SHFE tin rising together. SHFE lead increased by 0.36%, and SHFE tin rose by 1.47%. The rest of the metals fell, with the main alumina contract dropping by 2.9%. In addition, the main lithium carbonate contract fell by 0.43%, the main silicon metal contract declined by 0.56%, and the main polysilicon contract dropped by 0.27%. The main European container shipping contract fell by 0.11%. The ferrous metals series showed mixed performance. Stainless steel rose by 0.2%, iron ore fell by 0.14%, rebar increased by 0.14%, and HRC declined by 0.19%. In the coking coal and coke sector, coking coal rose by 1.68%, and coke increased by 0.56%. In the overseas market, as of 15:03, overseas market base metals generally declined, with only LME copper and LME nickel rising together. LME copper increased by 0.29%, and LME nickel rose by 0.1%. LME lead led the declines with a drop of 0.5%. The fluctuations in the declines of the remaining metals were relatively small. In precious metals, as of 15:03, COMEX gold fell by 0.26%, and COMEX silver rose by 0.03%. Domestically, SHFE gold increased by 0.23%, and SHFE silver fell by 0.01%. Market conditions as of 15:03 today 》Click to view SMM market dashboard Macro Front Domestic Aspects: [National Energy Administration: National power supply is generally expected to be secured during the peak summer period this year] Hao Ruifeng, Director of the Market Supervision Department of the National Energy Administration, stated at a State Council Information Office press conference that, based on the current situation, it is expected that the national power supply will be generally secured during the peak summer period this year, although there may be power supply tightness in some local areas during peak periods. Hao Ruifeng pointed out that the National Energy Administration will aim to ensure flexible regular supply, implement measures for localized short-term tightness, and achieve effective responses to extreme situations, pressing all parties to fulfill their responsibilities. Through measures such as strengthening energy and power monitoring and early warning, fully leveraging power supply potential during peak periods, accelerating the construction and commissioning of supportive power sources, optimizing cross-provincial power exchanges, and enhancing demand-side response, the National Energy Administration will strive to ensure the safe and stable supply of power during the peak summer period. [Song Hongkun, Deputy Director of the National Energy Administration: As of the end of April, installed capacity of wind, PV, and nuclear power historically exceeded that of thermal power] Song Hongkun, Deputy Director of the National Energy Administration, stated at a State Council Information Office press conference today that as of the end of April this year, China's installed capacity of renewable energy power generation reached 2.017 billion kW, up 58% YoY. The installed capacity of wind, PV, and nuclear power reached 1.53 billion kW, historically exceeding that of thermal power. [Ministry of Ecology and Environment: Coal consumption accounted for 53.2% of total energy consumption in 2024] The Ministry of Ecology and Environment officially released the "2024 Report on the State of China's Ecology and Environment."The proportion of coal consumption in total energy consumption was 53.2%, a decrease of 1.6 percentage points from 2023. The proportion of clean energy consumption, including natural gas, hydropower, nuclear power, wind power, and solar power, in total energy consumption was 28.6%, an increase of 2.2 percentage points from 2023. As of the end of 2024, the cumulative trading volume of quotas in the national carbon emissions trading market reached 630 million mt, with a cumulative turnover of 43.033 billion yuan. [Caixin China General Services PMI rose to 51.1 in May] The Caixin China General Services Business Activity Index (Services PMI) for May, released today, recorded 51.1, up 0.4 percentage points from April, indicating an acceleration in the expansion of services sector operations. ► The central parity rate of the RMB exchange rate in the inter-bank foreign exchange market on June 5 was 7.1865 RMB per US dollar. US dollar: As of 15:03, the US dollar index rose by 0.12% to 98.91. On June 4 local time, the latest Beige Book, a national economic conditions survey report released by the US Fed, showed that economic activity in the US had declined slightly since the last report. Businesses and consumers faced increased policy uncertainty and mounting price pressures, with the overall economic outlook remaining pessimistic. US ADP employment increased by 37,000 in May, against an expected increase of 110,000 and a prior increase of 62,000. Following the release of the US May ADP employment data, US President Trump stated that Powell must now cut interest rates. Data released by ISM showed that the US May ISM Services PMI Index was reported at 49.9, significantly below the expected 52, marking the first contraction in nearly a year. The new orders index fell sharply by 5.9 points, the largest decline since June 2024, to 46.4. The prices paid index jumped to 68.7, the highest since November 2022. Currently, the market is focusing on the non-farm payrolls report to be released this Friday, seeking clearer guidance. Macro: Today, data such as the year-on-year rate of the ANZ commodity price index for May globally, Australia's goods and services trade balance for April, Australia's monthly export rate for April, Australia's monthly import rate for April, China's Caixin Services PMI for May, Switzerland's unadjusted unemployment rate for May, Switzerland's seasonally adjusted unemployment rate for May, the leading indicator for turning points in the global industrial production cycle for May, the number of job cuts announced by US companies in May (Challenger report), the European Central Bank's (ECB) main refinancing rate for June in the Eurozone, the ECB's deposit facility rate for June in the Eurozone, the ECB's marginal lending facility rate for June in the Eurozone, the US trade balance for April, the number of initial jobless claims in the US for the week ending May 31, the number of continuing jobless claims in the US for the week ending May 31, Canada's trade balance for April, Canada's seasonally adjusted IVEY PMI for May, Canada's unadjusted IVEY PMI for May, and the global supply chain pressure index for May will be released. In addition, it is worth noting that the US Fed released the Beige Book on economic conditions; the European Central Bank (ECB) announced its interest rate decision; and ECB President Christine Lagarde held a press conference on monetary policy. Crude oil: As of 15:03, oil prices in the two markets showed mixed performance, with US crude oil down 0.06% and Brent crude oil up 0.05%. Earlier industry reports indicated an increase in US gasoline and diesel inventories last week. Additionally, Saudi Arabia lowered its official selling prices (OSPs) for Asian crude oil buyers in July, while uncertainties surrounding the global economy also weighed on oil prices. The US Energy Information Administration (EIA) released its inventory report on Wednesday, showing a decline in US crude oil inventories last week as refineries ramped up production with the start of the summer driving season, while fuel inventories rose due to weak demand. The EIA reported that US gasoline inventories increased by 5.2 million barrels to 228.3 million barrels in the week ending May 30, compared to market expectations of a 600,000-barrel increase. US commercial crude oil inventories fell by 4.3 million barrels to 436.06 million barrels in the same week, against market expectations of a 1 million-barrel decrease. Distillate inventories, including heating oil and diesel, rose by 4.2 million barrels to 107.6 million barrels in the week, compared to market expectations of a 1 million-barrel increase. Saudi Arabia, the world's largest oil exporter, lowered its prices for Asian crude oil buyers to a two-month low, which the market views as an attempt by Saudi Arabia to regain market share. Saudi Aramco reduced the OSP for its flagship Arab Light crude oil sold to Asia in July to a premium of $1.20 per barrel over the Oman/Dubai average. The OSP premium was $1.40 per barrel in June and $1.20 per barrel in May. A previously released survey indicated that the price cut for Arab Light crude oil in July would be in the range of 40-50¢. Analysts from ANZ Bank said in a report, "Although the price cut by Saudi Arabia was smaller than expected, it indicates that demand remains weak despite entering the peak demand period." (Wenhua Comprehensive) SMM Daily Review ► Aluminum prices fluctuate rangebound, aluminum scrap prices remain unchanged [Daily Review of Aluminum Scrap] ► June 5: SHFE aluminum holds up well, with no sign of inventory buildup yet; processing fees struggle to maintain [Daily Review of Spot Aluminum Billet] ► [SMM MHP Daily Review] June 5: Indonesian MHP prices decline ► [SMM Nickel Sulphate Daily Review] June 5: Nickel salt prices decline ► Rare earth miners withhold sales and refuse to budge on prices, leading to a slight price increase [SMM Rare Earth Daily Review] ► Tungsten market fluctuates at highs, with APT and tungsten powder prices rising again [SMM Tungsten Daily Review] ► Silver prices continue to consolidate, with sluggish market trading remaining unchanged [SMM Daily Review]

On June 3, in response to the financial pressure brought about by the decline in crude oil prices, Saudi Aramco, the Middle East's oil giant, announced the completion of a $5 billion bond issuance. The issuance consisted of three tranches, with coupon rates of 4.75% (5-year), 5.375% (10-year), and 6.375% (30-year), respectively. Ziad Al-Murshed, Saudi Aramco's Chief Financial Officer, stated that the bond issuance received "strong" market subscription, with global investors expressing confidence in the company's "financial resilience and robust balance sheet." On May 30, Saudi Aramco released a prospectus for the issuance of Islamic bonds (Sukuk), indicating its plan to soon re-enter the debt market for financing. Currently, the price of Brent crude oil stands at around $65 per barrel, a significant pullback from $82 in mid-January this year. The decline in oil prices has affected Saudi Aramco's profits, putting pressure on the company to maintain high dividends. In Q1 2025, Saudi Aramco's net profit was approximately $26 billion, a year-on-year (YoY) decrease of about 4.6%. Its performance dividend was $200 million, far lower than the over $10 billion in Q3 2024. As the major shareholder of Saudi Aramco, the Saudi government relies on related dividends to carry out the country's economic diversification projects. Limited dividend payouts will also constrain the government's fiscal spending capacity. In the Islamic bond prospectus released on May 30, Saudi Aramco disclosed that as of the end of Q1 this year, its asset-liability ratio had risen to 5.3% from 4.5% at the end of last year. During an earnings call in May, Al-Murshed mentioned that over the past three years, Saudi Aramco had significantly reduced its debt levels, but had started to "moderately increase leverage as planned since last year to optimize its capital structure." Amin Nasser, Saudi Aramco's CEO, stated during the same call that current oil demand in the international market is strong, with global crude oil inventories at a "five-year low." He also pointed out that OPEC's decision to increase production starting from May would drive Saudi Aramco's daily production to increase by 200,000 barrels. If oil prices remain at $60 per barrel, this increase is expected to generate approximately $1.9 billion in annual cash flow. Last week, Saudi Finance Minister Mohammed al-Jadaan stated in a media interview that due to reduced oil revenues, the Saudi government would re-evaluate the pace of fiscal spending. He mentioned, "The crisis provides us with an opportunity to assess and adjust," including whether projects are being advanced too quickly and whether related plans need to be postponed or rescheduled.