[SMM Coking Coal and Coke Daily Review] Supply side, as coking coal prices, the raw material, continue to rise, some coke producers are forced to implement production restrictions, affecting production levels. In addition, shipments at some coke producers were not smooth, leading to a slight increase in coke inventories at these producers. Demand side, hot metal production at steel mills overall remains at a high level, and combined with still-low coke inventories at some mills, there is rigid demand for coke. In summary, coke fundamentals remain tight, with strong cost support. In the short term, the coke market continues to hold up well, with expectations of a seventh round of price increases.

[SMM Daily Review of Coking Coal and Coke] On the news front, mainstream coking enterprises initiated the sixth round of coke price increases, with water-quenched coke up 50 yuan/mt and dry-quenched coke up 55 yuan/mt, effective from 00:00 on June 8, 2026. On the supply side, coking coal resources continue to tighten, forcing some coking plants to implement production restrictions. Enterprises maintain smooth production and sales, and coke plant inventories generally remain low. On the demand side, blast furnace operating rates at steel mills stay high and hot metal output remains strong, providing ample support for coke demand. In summary, the tight supply-demand situation for coke is unlikely to ease, and the coke market may continue to hold up well next week.

[Price Review] This week (6.1-6.4), silver continued to fluctuate downward in the doldrums, with the overall price center shifting lower, as both international and domestic futures weakened in tandem. On the macro front, the CME FedWatch tool showed a 98.4% probability that the US Fed would keep interest rates unchanged in June, with only a 1.6% probability of a rate cut; for September, the probability of maintaining the current rate stood at 71.1%, with a 27.8% probability of a rate hike. Data-wise, US May ADP employment exceeded expectations, with private sector payrolls increasing by 122,000, the largest monthly gain since January last year, with key focus on tomorrow evening's US May non-farm payrolls data. Geopolitically, the US-Iran conflict remained unresolved; Trump stated that US-Iran negotiations were progressing smoothly and nearing a deal signing, while the maritime blockade on Iran may extend through September; the Israeli Prime Minister indicated tactical differences with the US but aligned strategic objectives, while the Israeli military stated there would be no ceasefire in Lebanon. Industrial demand side, mainstream quotations for national-standard silver ingots in the Shanghai market against TD remained in a slight discount range, but the discount narrowed further WoW, with market quotations gradually moving toward parity. Most transaction prices fell within a discount of 20-0 yuan/kg against the SGE TD contract. As silver prices declined during the week, downstream consumption recovered slightly WoW, with spot cargo selling pressure at low levels somewhat easing, though overall consumption remained sluggish. Inventory side, downstream consumption and investment sentiment remained cautious, and a notable improvement is unlikely in the near term. Social inventory of silver ingots in Shanghai and Shenzhen continued to accumulate slightly. Gold/silver ratio side, as of June 3, the BMA gold/silver ratio widened further from 62.3 to 63.8 this week. [Key Data] Bearish: Warsh was officially inaugurated as Fed Chairman, with a clearly hawkish tone. Speculative funds withdrew on a large scale, with COMEX silver non-commercial net long positions continuing to shrink. Bullish: Peru's energy crisis persisted, with a national state of emergency declared through year-end. Twelve large mines have implemented staggered production, and May silver production is estimated to have declined by 5%-8%, with the global supply-demand gap still in place. [Recent Focus] June 5: US May non-farm payrolls report June 12: US May CPI data Key focus: US Fed officials' speeches, latest developments in US-Iran negotiations, and the implementation of production restrictions at Peruvian mines. [Price Forecast] Silver is expected to hover at lows next week. Silver prices have yet to break free from the macro headwind environment, and the earlier supply-side speculation narrative has largely faded. Key focus will be on tomorrow evening's non-farm payrolls data, US Fed officials' speeches, and the direction of US-Iran negotiations. In terms of operations, it is recommended to mainly wait and see, pending clear stabilization signals. On the China fundamentals side, downstream buying sentiment remained relatively cautious. Overall consumption recovered slightly as silver prices stayed at short-term lows. Low-level spot selling pressure in the market eased somewhat, but the overall market remained sluggish. Investment sentiment showed no obvious rebound either. Social inventory of spot silver ingots continued to accumulate slightly. The mainstream spot transaction discount in the market is expected to remain within the range of a 10-0 yuan/kg discount to the Shanghai Gold Exchange TD price.

[SMM Coking Coal and Coke Daily Brief] News: Market rumors suggested that some steel mills raised wet-quenched coke prices by 50 yuan/mt and coke dry quenching prices by 55 yuan/mt, effective from 00:00 on June 3, 2026. In terms of supply, affected by rising production costs and tightening safety supervision, coke producers' production enthusiasm was constrained, with some experiencing passive production restrictions. Additionally, with smooth shipments, coke producers' coke inventory generally remained at low levels. Demand side, steel mills maintained moderate profitability, and overall hot metal production continued to fluctuate at highs, supporting strong rigid demand for coke. Some steel mills with low inventory were still actively restocking. Overall, the coke supply-demand pattern remained tight. In the short term, the coke market is expected to hold up well, with strong expectations for the fifth round of coke price increases to be implemented.

[Price Review] Silver prices remained under pressure this week, primarily due to renewed geopolitical tensions in the Middle East, sustained expectations for US Fed interest rate hikes within the year, and strong performance in European and US equity markets that continued to divert funds from the precious metals market. On the macro front, newly appointed Fed Chairman Waller officially took office, with his hawkish stance reinforcing market tightening expectations; US-Iran negotiations remained volatile—according to Reuters on May 28, the US military launched a new round of strikes on military facilities within Iran. On the industrial demand side, as silver prices declined during the week, mainstream quotations and spot transaction discounts both narrowed. However, some suppliers had limited willingness to sell due to tax invoice audits and the approaching month-end, combined with downstream consumption still showing no significant improvement. Only some downstream enterprises lacking tax invoice input credit could accept small quantities at high premiums. The spot market overall exhibited sluggish trading on both sides, with inventory continuing to accumulate. Gold/silver ratio side, as of May 27, the LBMA gold/silver ratio rebounded to 62x, continuing to widen WoW. [Key Data] Bearish Waller officially assumed the role of Fed Chairman, with a clearly hawkish tone. US-Iran negotiations saw major reversals, causing market expectations to become chaotic. On May 25, Iran stated it had reached consensus with the US on most issues, but on May 28, Trump publicly stated that "Iran negotiations have made no progress." Speculative funds withdrew on a large scale—COMEX silver non-commercial net long positions declined sharply for three consecutive weeks, with cumulative reductions exceeding 25,000 contracts. Previously inflowing speculative funds concentrated on closing positions, amplifying the magnitude of silver's price decline. Bullish: Peru's energy crisis continued, with a national state of emergency extending to year-end. Twelve large mines have implemented staggered production schedules, and May silver production is expected to decline 5%-8%, with the global supply-demand gap persisting. [Upcoming Focus] May 29: US May University of Michigan Consumer Sentiment Index (final) June 3: US May ISM Manufacturing PMI June 5: US May Non-Farm Payrolls Report June 12: US May CPI Data Key focus: Fed officials' speeches, latest developments in US-Iran negotiations, execution of production restrictions at Peruvian mines [Price Forecast] Silver is expected to hover at lows in a bottoming pattern next week, with core variables being Fed officials' speeches and the direction of US-Iran negotiations. Current market sentiment is extremely cautious, with macro headwinds remaining the dominant factor, and the previous supply-side speculation narrative having largely faded. Operationally, a wait-and-see approach is recommended, pending clear stabilization signals. China fundamentals side, downstream buying sentiment remains cautious, overall consumption is still sluggish, and spot silver ingot social inventory continues to accumulate. However, as silver's absolute price has declined and bank floor purchase price discounts have narrowed, mainstream spot transaction discounts are expected to contract slightly to a range of 20-0 yuan/kg discount to the SGE TD price.

In the manganese-based hydrometallurgy industry chain, sulphuric acid is not merely an ordinary auxiliary material, but rather a core lifeline raw material that runs through the production of all product categories, controls production costs, and influences process selection. Mainstream products such as EMM, various grades of manganese sulphate, and EMD differ vastly in production processes and have entirely distinct acid consumption structures, which also leads to completely stratified sensitivities of various manganese products to sulphuric acid price fluctuations. Every round of change in acid prices transmits from top to bottom, directly reshaping the cost structure and market dynamics of the manganese industry chain.