[SMM Daily Comment: Rising Policy Uncertainty Fuels Strong Wait-and-See Sentiment in the Market] June 1 — The SMM upstream sentiment index for high-grade NPI was 3.05, down 0.06 MoM, while the downstream sentiment index for high-grade NPI was 1.94, down 0.03 MoM.

[China Inventory Continued to Decline This Week, Aluminum Prices Show LME Outperforms SHFE in the Short Term] China inventory continued to decline this week but at a modest pace, limiting the upside elasticity of SHFE aluminum, with the divergence between domestic and overseas markets expected to persist in the short term. Key areas to watch going forward include whether China inventory destocking accelerates, whether the US-Iran deal can be formally signed, further clarity on the US Fed's rate path, and whether China is further tightening regulations on aluminum capacity operations. Overall, aluminum prices are expected to continue moving sideways in the short term, with LME outperforming SHFE.

[SMM Lead Morning Meeting Minutes: Divergent Fundamentals in and outside China, Lead Prices Expected to Lack Upward Momentum] Over the weekend, U.S.-Iran negotiations took another turn, with foreign media reporting that Trump significantly revised the memorandum of understanding, proposing tougher terms in an attempt to pressure Iran into accelerating negotiations. The macro landscape remains complex and volatile, while lead fundamentals diverge. In markets outside China, LME lead had previously been in a backwardation structure...

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2607 contract opened lower with a gap at 24,880 yuan/mt. At the beginning of the session, SHFE zinc briefly touched a high of 24,885 yuan/mt before bulls reduced their open interest, sending prices rapidly lower. Near the end of the session, it dipped to a low of 24,630 yuan/mt, ultimately closing down at 24,665 yuan/mt, a decline of 300 yuan/mt or 1.20%. Trading volume fell to 67,517 lots, and open interest decreased slightly by 128 lots to 109,000 lots.

Analysis of Copper Scrap Market Operations in May 2026: Supply-Demand Deadlock and Structural Contradictions amid High Volatility

Mexico is formally seeking the removal of US Section 232 tariffs on steel and aluminum — currently set at 50% — as part of ongoing USMCA review negotiations. Mexico's Economy Minister Marcelo Ebrard described the 50% rate as unacceptable and without justification, following May 27-29 talks between Mexico's Ministry of Economy and the US Trade Representative. Mexico is also advocating for a regional approach to the automotive sector, citing deep North American production integration and existing USMCA rules of origin. Additional rounds of negotiations are scheduled for June and July. Separately, Mexico has already mandated that federal construction projects use only domestically produced steel.