[Macro Policy and Tug-of-War Between Sellers and Buyers: Aluminum Prices Move Sideways] The risk of supply disruptions to aluminum outside China has not yet subsided, and there remains a supply gap in ex-China aluminum, with the strong LME market transmitting to China and providing support for aluminum prices. However, the continuation of inventory buildup exceeding expectations in China will weigh on domestic aluminum prices. Meanwhile, tightened invoicing regulations may lead to structural tightness in spot cargo, and the weakening spot market further limits the upside room for domestic aluminum prices. Close attention should be paid to the potential turning point in China's social inventory, which could drive a rebound and rise in aluminum prices.

According to a report on the BNAmericas website, business leaders from Brazil and the US have called for enhanced cooperation between the two countries in critical minerals to address escalating global trade conflicts. The US Chamber of Commerce for Brazil, Amcham Brasil, and the US Chamber of Commerce (USCC) jointly proposed a series of recommendations to deepen cooperation between Brazil and the US, with a focus on strengthening the supply chains for critical minerals and rare earths. The document was submitted to the governments of both countries during a visit to Brazil by a US business innovation delegation, which was led by entities from both countries and held events in Brasilia and Sao Paulo from June 3 to 6. "Critical minerals are the foundation of the global economy and will become even more important in the future. The US and Brazil must strengthen their partnership to jointly ensure a secure and responsible supply chain for critical minerals. Our proposal is mutually beneficial for both countries and will help drive innovation and growth," said Marty Durbin, the USCC's Executive Vice President for Policy, who led the USCC's delegation to Brazil. "Through strategic and pragmatic initiatives, this proposal offers us an opportunity to tap into the potential of both countries," he added. The proposal, developed through long-term bilateral dialogue between the two organizations, outlines five key initiatives: ◎Action Plan for Strategic Minerals Dialogue; ◎Joint Geological Mapping; ◎Provision of Financing and Guarantees; ◎Mineral Processing Technology and Commercial Partnerships; ◎Promotion of Community Engagement and Best Practices for Sustainable Development. These recommendations from business leaders of both countries come at a time when the global trade war initiated by the US government has exposed the vulnerabilities of international supply chains, particularly those related to critical minerals. Brazil's proposal also comes at a time when specific industries, such as aluminum and steel, have expressed strong dissatisfaction with the US government's decision to raise tariffs on these products.

Jamie Dimon, CEO of JPMorgan Chase, recently stated that the impact of the US government's previous measures to boost the economy has waned, and the US economy may face some difficulties in the coming months, urging businesses and investors to prepare accordingly. At a conference on Tuesday, Dimon pointed out, "I think real economic data may soon deteriorate." Despite survey data showing a decline in consumer and business leader confidence in the face of the Trump administration's tariff policies, total employment and consumer spending in the US continue to grow. Dimon downplayed the significance of the survey data, stating that "consumers and businesses have never accurately judged economic turning points," but he also noted that the future process of a "soft landing" for the economy may not be smooth. "Employment will decline slightly, and inflation will rise slightly—hopefully just slightly," he added, mentioning that the decrease in immigration is another complicating factor. In recent days, large-scale protests against Trump's immigration policies have continued to spread across multiple US cities, with Trump having dispatched National Guard and Marine Corps troops to quell the unrest. However, the situation has not improved but has instead escalated. Additionally, data released by the US Department of Labor on Wednesday showed that the full impact of Trump's across-the-board tariff hikes has yet to be fully realized, with US CPI inflation in May falling short of expectations across the board. In fact, Dimon has maintained a cautious or negative outlook on the economic prospects in recent times, and his comments on Tuesday were not particularly pessimistic compared to his previous remarks. At the end of last month, Dimon stated that after the US government and the US Fed's "massive overspending" and quantitative easing, the US bond market would "collapse" under the weight. He called on the Trump administration to steer the US onto a more sustainable path. Dimon pointed out on Tuesday that if Trump sticks to his initial tariff plans, he expects the US economy to enter a recession, but the situation appears better than anticipated. He believes that Trump's tariff policies have already begun to have a negative impact on the economy, although these effects are just beginning to emerge. He mentioned that many individuals and businesses had previously purchased a lot in advance to avoid tariffs, but this was only temporary, and such advance purchases have now ended. Dimon also warned about the private credit sector, which has become a booming business on Wall Street and is considered a potential area of concern during economic downturns. The CEO explained that the risks of private credit are different for banks and investors—banks are responsible for arranging these transactions and then removing them from their books, while investors hope to achieve long-term returns from this asset class. "If I were a fund manager, would I think it's a good time to buy credit assets? No. I wouldn't buy these assets at these prices and spreads today."

On May 20, Kim Seong-beom, Executive Director of Daesung Corporation in South Korea, visited Luoyang Copper Processing Co., Ltd. to conduct a survey and exchange views on deepening cooperation in the copper processing sector. Cao Qiwen, Secretary of the Party Committee, Chairman, and General Manager of Luoyang Copper Processing, Deputy General Manager Zhao Jing, and relevant business leaders participated in the discussion. Both sides engaged in in-depth discussions on topics such as collaborative enterprise development, technological innovation, and market cooperation. Daesung Corporation's business covers basic materials, high-end manufacturing, and emerging technology sectors, enhancing its global competitiveness through technological R&D and international cooperation. During the discussion, Cao Qiwen welcomed Kim Seong-beom and his delegation and provided a detailed introduction to Luoyang Copper Processing's historical evolution, industrial layout, technological advantages, and core products. He hoped that both sides would take this exchange as an opportunity to deepen cooperation with Daesung Corporation in technological R&D, industry chain collaboration, and international market expansion, jointly promoting industry development. Kim Seong-beom introduced Daesung Corporation's business areas and development strategies. He stated that Daesung has long focused on the application of high-end materials and has established stable cooperative relationships with many renowned global enterprises. Luoyang Copper Processing's strengths in technological R&D and manufacturing were impressive, and there was broad potential for cooperation between the two sides. He looked forward to further integrating resources to achieve mutual benefits and win-win results in areas such as material supply, technological exchange, and market sharing in the future. During the visit, Kim Seong-beom and his delegation toured Luoyang Copper Processing's product exhibition hall and production site, giving high praise to the company's advanced technological level, strict quality control, and green production philosophy. This survey not only deepened mutual trust between the two sides but also injected new momentum into cooperation between Chinese and South Korean enterprises in the copper processing sector. In the future, both sides will further strengthen communication, refine cooperation plans, and jointly write a new chapter in international development.

[Haima Automobile and UAE's BDG Investment Group Sign MOU on Automobile Export Cooperation] On May 19, the "2025 China Hainan Free Trade Port - UAE Promotion Conference" was held in Dubai, with over 250 participants including high-level officials from the governments and free trade zones of the UAE and Hainan, business leaders, and media representatives. Haima Automobile and UAE's BDG Investment Group signed a memorandum of understanding (MOU) on automobile export cooperation. The two sides will jointly explore in-depth cooperation in the UAE, encompassing the export, sales, after-sales service, and technical cooperation of complete vehicle products, with a particular focus on promoting the establishment of Haima Automobile's zero-carbon emission automobile ecosystem across the entire industry chain in the Middle East. It is reported that the first batch of car models for cooperation between Haima Automobile and BDG Investment Group will include the well-tested Haima 7X, Haima 8S, and Haima 7X-E products, which are capable of adapting to the climatic characteristics of the Middle East.

[Gotion High-tech Announces Construction Completion of Pilot Line for All-Solid-State Batteries] At the Gotion High-tech Global Technology Conference held on May 17, Gotion High-tech announced the construction completion of a pilot line for all-solid-state batteries, with a designed capacity of 0.2 GWh. The line was 100% independently developed, with a 100% localization rate for core equipment, and boasts over 30 patent applications. According to the on-site introduction by the business leader, the pilot sample parameters indicate a battery cell energy density of 350 Wh/kg and a single cell capacity of 70 Ah. Loading tests have already commenced. [CPCA's Cui Dongshu: China's Power Battery Installations Reached 54.1 GWh in April, Up 52.8% YoY] Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA), released an analysis of the new energy vehicle lithium battery market in April. In April, China's power battery installations reached 54.1 GWh, down 4.3% MoM and up 52.8% YoY. Among them, ternary battery installations were 9.3 GWh, accounting for 17.2% of total installations, down 7.0% MoM and 6.3% YoY. LFP battery installations were 44.8 GWh, accounting for 82.8% of total installations, down 3.8% MoM and up 75.9% YoY. From January to April, China's cumulative power battery installations reached 184.3 GWh, up 52.8% YoY. Among them, cumulative ternary battery installations were 34.3 GWh, accounting for 18.6% of total installations, down 15.9% YoY. Cumulative LFP battery installations were 150.0 GWh, accounting for 81.4% of total installations, up 88.0% YoY. (Financial Associated Press) [CATL and Honda China to Further Upgrade Cooperation in LFP Batteries and Other Areas] Honda R&D Co., Ltd. (China) and Contemporary Amperex Technology Co., Limited (CATL) officially signed a memorandum of understanding to deepen cooperation. The two parties will further upgrade cooperation in areas such as LFP batteries, CTB (Cell to Body) integration technology, supply chain optimization, and R&D of 12V and hybrid batteries, to promote the upgrading of the new energy vehicle industry. In the future, the two parties will continue to explore new business cooperation models. (Financial Associated Press) [Former Polish Prime Minister: Chinese EVs May Replace Tesla in the European Market] Former Polish Prime Minister Marek Belka stated that China has now become a manufacturer and exporter of technology. Therefore, China needs to protect intellectual property rights, technology, and knowledge transfer, which requires negotiation and consensus. He pointed out that European companies hope to gain greater access to the Chinese market, and China is also interested in discussing this. Belka also mentioned that Europe has recently discussed extensively the issue of Chinese electric vehicles entering the European market. In the European market, Chinese electric vehicles are likely to replace Tesla's position. Since Tesla is not a European company, there are actually no major issues. In the short term, Europe should strive to diversify its markets, as diversified markets will foster better development. [Japan considers subsidizing Tesla charging stations in US tariff negotiations] Japan is contemplating a plan to provide subsidies for the construction of Tesla EV charging stations during tariff negotiations with the US. Currently, the Japanese government only offers subsidies for the installation of charging stations adhering to Japan's CHAdeMO standard, excluding Tesla's Superchargers. TBS reported that the US Trade Representative has expressed concerns over this issue and has requested improvements. (Eastmoney) [Are Canada's retaliatory tariffs on the US "close to zero" after exemptions? Canadian finance minister clarifies: 70% of retaliatory tariffs remain in effect] On May 17, Canadian Finance Minister Chrystia Freeland stated on social media platform X that 70% of the 25% retaliatory tariffs previously imposed by Canada on billions of US dollars' worth of US goods remain in effect. She indicated that the Canadian government had "publicly and temporarily suspended tariffs on certain goods" for health and public safety reasons. Freeland's statement was in response to an Oxford Economics report cited by the Conservative Party of Canada. The report stated that after announcing retaliatory tariff measures against the US, the Canadian government granted a six-month tariff exemption for products used in the country's manufacturing, processing, food and beverage packaging industries, as well as items related to healthcare, public safety, and national security. Additionally, automakers also received preferential treatment, with companies like General Motors operating in Canada being allowed to import a certain quantity of vehicles tariff-free. The report pointed out that these exemptions meant that Canada's new tariff rates on the US were "almost zero." (Eastmoney) Related Reading: Driven by multiple positive factors! The auto parts sector surges with a wave of "limit-up" rallies, with over 12 stocks hitting their daily limits! [Hot Stock] Refined cobalt quotes slightly recover, while Co3O4 prices continue to decline. The market awaits the aftermath of the June DRC ban. [Weekly Observation] [SMM Industry Insights] Global cobalt industry chain changes and Chinese market outlook following the DRC's cobalt export ban - Key points from Wang Cong's speech, General Manager of SMM Industry Research Temporary tariff suspension spurs lithium carbonate futures to rise over 3%. Can the expectation of a rush in exports make lithium carbonate "stand up"? [SMM Flash News] Retail sales of passenger vehicles in April hit a nearly decade-high growth rate, with auto production and sales exceeding 10 million units in the first four months! [SMM Special Report] [SMM Analysis] Impact of US tariff adjustments on China's new energy end-users following the "Geneva Talks" [SMM Analysis] 2025 Shanghai Auto Show: Intelligence, Luxury, Electrification [SMM Analysis] Sibanye Stillwater's Finnish lithium mine project sees a 17% cost surge, but the 2026 commissioning plan remains unchanged Lithium carbonate prices fell over 25% YoY in Q1, with miners' performances varying widely. When will lithium prices rise? [SMM Special Report] [SMM Analysis] In April 2025, SMM's total domestic lithium carbonate production fell 7% MoM but rose 40% YoY Yanhu Stock's net profit in Q1 surged over 22% YoY, aiming to achieve an annual lithium chemicals production capacity of 200,000 mt by 2030 On the first day back from the holiday, the auto parts sector surges with a wave of "limit-up" rallies. Jingjin Electric hits three consecutive daily limits, indicating a positive market performance during the holiday. [Hot Stock] [SMM Analysis] Spot prices of refined cobalt strengthen [SMM Analysis] Spot prices of cobalt intermediate products rise [SMM Analysis] The economic viability of refined cobalt production declines, with April's refined cobalt production falling MoM [SMM Analysis] Lithium hydroxide production in April remained stable but slightly weak MoM, with May's production expected to be basically flat [SMM Analysis] The production of ternary cathode precursors in April rose 0.36% MoM [SMM Analysis] The production of ternary cathode materials in April rose 7.38% MoM