[SMM Silicone Weekly Review: As New Round of Expectations for Price Hike Released, Downstream Enterprises at Various Stages Purchased on Demand] This week, the transaction center of China's silicone DMC market remained stable, with mainstream transaction range at 14,700-15,000 yuan/mt. Regional quotations continued to diverge, with monomer enterprises in Shandong maintaining quotations at 14,700 yuan/mt, while mainstream quotations in other regions were 15,000-15,200 yuan/mt. Post-holiday market transactions were mainly driven by rigid demand, as mid- and downstream enterprises that had not purchased before the holiday entered the market to restock on demand. Currently, some upstream producers have pre-sale orders scheduled through month-end of May, and producers maintained a firm willingness to hold prices firm. Combined with the approaching industry conference in May, overall bullish sentiment in the market strengthened, which also drove downstream enterprises to enter the market for procurement.

[Geopolitical Disruptions Combined with Elevated Inventory Highlight LME Outperforming SHFE in Aluminum Market] Overall, the core pattern of LME outperforming SHFE in the aluminum market is difficult to reverse in the short term. LME strength will support room for SHFE aluminum to catch up after the holiday, but high domestic inventory and weak demand will cap overall gains. Going forward, the focus will be on the pace of aluminum ingot destocking in China and the strength of rigid demand release from downstream resumption of work and production resumptions.

On May 6, 2026, iron ore futures rose sharply today, with the most-traded contract I2609 closing at 816 yuan/mt, up 2.84% from the previous trading session. Port spot prices rose 10-18 yuan/mt from the previous day. Traders showed increased quoting activity, while steel mill purchases were mostly driven by rigid demand with few inquiries; overall spot transaction sentiment remained sluggish. The latest SMM survey data showed that daily average pig iron production edged down by 9,800 mt to 2.4307 million mt; the blast furnace operating rate declined 0.19% to 89.61%. This indicated that overall rigid demand for iron ore, though slightly lower, remained at a high level. Looking ahead, as previously constrained port inventory was released and well absorbed by the market, upward resistance on ore prices has eased amid continuously increasing destocking speed, and there is currently strong upward momentum. However, as raw material costs continue to climb and profits remain under pressure, steel mills may increase maintenance intensity going forward. Therefore, iron ore prices are expected to fluctuate upward in the short term, while medium and long-term trends still depend on the ability of steel mills to absorb supply.

SMM May 6 News: Data Brief: As of Wednesday, May 6, SMM copper inventories in mainstream regions nationwide increased by 9,900 mt WoW from pre-holiday levels to 252,900 mt. Total inventory was up 124,400 mt compared to the same period last year (128,500 mt), ending seven consecutive weeks of destocking. Specifically, Shanghai saw simultaneous increases in both imported and domestic copper arrivals, while elevated copper prices suppressed downstream rigid demand, pushing regional inventory into a buildup phase. Jiangsu continued its destocking trend, with reduced domestic supply arrivals and steady warehouse withdrawal pace, resulting in continued inventory pullback. Guangdong ended its prior destocking trend, as smelting maintenance dragged on domestic arrivals, but concentrated downstream stockpiling before the Labour Day holiday and marginal recovery in consumption supported steady regional inventory decline. Market outlook: Supply side, imported arrivals are expected to converge MoM while domestic supply increments are released, keeping overall supply relatively loose. Demand side, post-holiday downstream purchasing sentiment was mediocre, mostly limited to rigid-demand restocking, with overall consumption pace slightly weakening. Surveys indicated that copper cathode rod operating rates this week are expected to pull back to 58.89%, down 7.46 percentage points WoW. Overall supply-demand pattern suggests the current copper market features marginally loose supply with only rigid demand from downstream, and social inventory is expected to continue a modest inventory buildup trend in the short term.

[SMM Silicon-Based PV Morning Meeting Minutes] Polysilicon: N-type recharging polysilicon was quoted at 34-36 yuan/kg. Polysilicon prices remained relatively stable during the holiday, with extremely limited order signing in the market. Crystal pulling plants had no significant procurement demand for the time being. Post-holiday surveys and conferences were scheduled, and the market was watching subsequent developments. Wafer: Market prices for 18X wafers were 0.9-0.93 yuan/piece, 210RN wafers were 1.00-1.03 yuan/piece, and 210N wafers were 1.2-1.23 yuan/piece. During the holiday, wafer prices remained stable, and cell prices were expected to rise after the holiday.

During the 2026 Labour Day holiday (May 1–5), the Chinese SHFE market was closed, and LME copper exhibited a fluctuating trend of initial decline followed by recovery......