SMM June 6 News: Metals Market: Overnight, base metals across both domestic and overseas markets fell collectively. In the domestic market, SHFE tin led the decline with a drop of 5.27%, while LME tin fell 4.92%, LME copper fell 2.78%, and LME aluminum, LME zinc, and SHFE copper all fell over 1% (LME aluminum fell 1.84%, LME zinc fell 1.52%, and SHFE copper fell 1.84%). The declines for the remaining metals were within 1%. Alumina main contract rose 0.65%, and cast aluminum main contract fell 0.61%. Overnight, ferrous metals generally rose, with only stainless steel falling by 0.14%. All other metals rose, with hot-rolled coil and rebar up around 0.4% (hot-rolled coil rose 0.47% and rebar rose 0.44%). For coking coal and coke, coking coal rose 1.73%, and coke rose 0.15%. In precious metals, overnight COMEX gold fell 3.35%, posting a weekly decline of 5.21%. COMEX silver tumbled 8.08%, with a weekly decline of 10.39%, recording a fourth consecutive weekly decline. Domestically, SHFE gold fell 2.93%, with a weekly decline of 0.66%, and SHFE silver fell 7.43%, with a weekly decline of 3.72%. The US once again recorded strong job growth in May, raising concerns about a possible interest rate hike later this year. As of 8:27 on June 5, overnight closing prices: Macro Front [Foreign Ministry Introduces Arrangements for General Secretary Xi Jinping's Visit to North Korea] At the invitation of Kim Jong Un, State Affairs Commission Chairman of the Democratic People's Republic of Korea, Xi Jinping, General Secretary of the Communist Party of China Central Committee and President of the People's Republic of China, will pay a state visit to the Democratic People's Republic of Korea from June 8 to 9. Foreign Ministry Spokesperson Mao Ning stated at a regular press conference on the 5th that this visit marks General Secretary Xi Jinping's first state visit to North Korea in seven years. During the visit, the top leaders of the two parties and two countries will exchange views on bilateral relations and issues of common concern. In recent years, under the strategic guidance of General Secretary Xi Jinping and General Secretary Kim Jong Un, the traditional friendly and cooperative relationship between China and North Korea has maintained sustained, healthy, and stable development, bringing tangible benefits to both countries and their peoples. This year marks the 65th anniversary of the signing of the China-North Korea Treaty of Friendship, Cooperation, and Mutual Assistance. Both sides will take this visit as an opportunity to push China-North Korea relations for greater development while advancing with the times, enhancing the well-being of the two peoples, and making greater contributions to regional and even global peace, stability, development, and prosperity. (Xinhua News Agency) China: Premier Li Qiang chaired a State Council Executive Meeting on June 5. The meeting pointed out that, based on the characteristics of future industries, it is necessary to further strengthen forward-looking layout and intensify promotion efforts to firmly grasp the initiative in development. Efforts must be made to solidify the technological foundation by continuously increasing investment in basic research and systematically deploying original and disruptive technological breakthroughs. Emphasis should be placed on ecosystem building by promoting the deep integration of industry, academia, research, and application, encouraging close cooperation along the industry chain, and cultivating more startups and unicorn enterprises in key tracks. [Ministry of Housing and Urban-Rural Development Seeks Public Comments on Regulations on the Management of Housing Provident Fund (Revised Draft for Comments)] The Ministry of Housing and Urban-Rural Development issued a notice to solicit public comments on the Regulations on the Management of Housing Provident Fund (Revised Draft for Comments). Employees may withdraw the stored balance in their housing provident fund accounts under any of the following circumstances: (1) paying rent; (2) purchasing, constructing, renovating, or overhauling self-occupied housing; (3) repaying principal and interest on home purchase loans; (4) decorating self-occupied housing up to a specified limit; (5) paying property management fees for self-occupied housing; (6) retiring or resigning; (7) completely losing work capacity and terminating the employment (personnel) relationship with the employer; (8) emigrating and settling abroad; (9) other housing consumption circumstances approved by the State Council. (Wall Street CN) The Ministry of Transport and ten other departments issued the Three-Year Action Plan for Promoting High-Quality Development of Mini- and Small-Sized Passenger Car Rental (2026–2028). The plan proposes accelerating the construction of EV charging facilities in highway service areas, with 30,000 new or upgraded EV charging facilities (charging guns) with power above 60 kW to be completed in highway service areas (including rest areas) by the end of 2028. US Dollar: As of the overnight close, the US dollar index rose 0.62% to 100.07, following data that showed strong US job performance in May. The US Bureau of Labor Statistics reported that non-farm payrolls rose by 172,000 in May, with jobs data for the previous two months revised upward. The average job growth over the last three months marked the best performance in over two years, while the unemployment rate held steady at 4.3%, with labour market resilience far exceeding overall market expectations. "Fed mouthpiece" Nick Timiraos noted that the re-acceleration of hiring this spring will provide further ammunition for Fed officials concerned about inflation and believing current interest rates are too low to suppress a new round of price pressures. Some officials have recently hinted that the Fed should be prepared to raise interest rates later this year, at least clawing back part of the three 25-basis-point rate cuts implemented in H2 last year. Those cuts were made to stabilize the labour market, which now looks much healthier than it did then. This jobs report won't entirely settle the debate over how much the Fed should consider raising rates later this year, but it further illustrates that the case for cutting rates in the near term has largely evaporated. The stronger argument for rate hikes currently stems from the inflation outlook. Multiple overlapping shocks, including AI infrastructure buildout, tariffs, and energy, could keep inflation persistently well above the Fed's 2% target, even if progress is made toward reopening the Strait of Hormuz to commercial shipping. If the Fed stays on hold while inflation rises, real inflation-adjusted rates would decline. Even if the labour market isn't the main driver, this mechanism could become a key factor fueling debate over rate hikes. (Jin10 Data APP) Fed's Hammack stated that with the labour market appearing to be roughly in balance, rate hikes could become appropriate in the near term. Hammack said that while she never focuses too much on any single data point, today's jobs report reaffirms that the labour market seems roughly in balance. She noted that the unemployment rate remaining at 4.3% is broadly consistent with what she defines as full employment. Given the uncertainty regarding the economic outlook, holding rates steady is sensible for now. But if recent trends continue, action could be needed soon. This essentially echoed remarks she made on June 2. (Jin10 Data APP) According to foreign media reports, the May non-farm payrolls data far exceeded market expectations, prompting the US interest rate futures market to sharply increase bets on a Fed rate hike at the December meeting. According to LSEG data, interest rate futures markets now price in a 65% probability of a Fed rate hike in December, up from 48% before the release of the jobs report. For the June meeting, the market continues to widely expect the Fed to keep rates unchanged in the 3.50%-3.75% range. Stronger than expected employment data indicates the US labour market remains resilient, further weakening market expectations for near-term rate cuts and reinforcing investor judgement that the Fed could resume raising rates later in the year to address inflation pressures. (Jin10 Data APP) According to CME FedWatch: The probability of the Fed keeping rates unchanged in June is 96.6% (vs. 96.4% prior to the non-farm payrolls release), with a 3.4% probability of a cumulative 25 bp rate cut. The probability of the Fed keeping rates unchanged through July is 90.6%, with a 6.2% probability of a cumulative 25 bp rate hike and a 3.2% probability of a cumulative 25 bp rate cut. (Jin10 Data APP) Macro: Next week, China side, China will release data including the May CPI yoy, May PPI yoy, May Trade Balance (pending), and May M2 Money Supply yoy (pending). US side, data to be released includes the US May NY Fed 1-Year Inflation Expectations, May NFIB Small Business Optimism Index, weekly change in ADP Employment for the week ending May 23, April Trade Balance, May Existing Home Sales Annualized Rate, April Wholesale Sales m/m, May unadjusted CPI yoy, May seasonally adjusted CPI m/m, May seasonally adjusted Core CPI m/m, May unadjusted Core CPI yoy, US 10-Year Note Auction rate and bid-to-cover ratio for the week ending June 10, Initial Jobless Claims for the week ending June 6, May PPI yoy, May PPI m/m, June preliminary 1-year inflation expectations, and June preliminary University of Michigan Consumer Sentiment Index. Germany side, data to be released includes the German April seasonally adjusted Industrial Production m/m, April seasonally adjusted Trade Balance, and May final CPI m/m. Eurozone side, data to be released includes the Eurozone June Sentix Investor Confidence Index, ECB Deposit Facility Rate for the period through June 11, and ECB Main Refinancing Rate for the period through June 11. UK side, data to be released includes the UK April 3-month GDP m/m, April Manufacturing Production m/m, April seasonally adjusted Goods Trade Balance, and April Industrial Production m/m. Other data to be released includes the Bank of Canada rate decision for the period through June 10, France May final CPI m/m, Japan April Trade Balance, and Switzerland May Consumer Confidence Index. Additionally, the Bank of Canada will announce its interest rate decision, and BOC Governor Macklem and Senior Deputy Governor Rogers will hold a monetary policy press conference. The ECB will announce its interest rate decision, and ECB President Lagarde will hold a monetary policy press conference. Crude Oil: At the overnight close, both oil benchmarks fell collectively. WTI crude fell 3%, and Brent crude declined 2.37%, though both recorded weekly gains (WTI crude up 3.31% for the week, Brent crude up 1.82% for the week). Overnight oil prices fell mainly due to reduced market concerns over a potential US-Iran conflict. On the 5th, while at a campaign event in Wisconsin, former President Trump tweeted that he would swiftly end the war with Iran, removing a key driver of high prices. As the midterm elections approach, US public opinion widely believes the US-Iran conflict has led to rising oil prices and higher living costs, pressuring Republican electoral prospects. (CCTV) Fitch stated in a new report that the closure of the Strait of Hormuz created a logistical supply shock but did not alter the market trend. It expects rapid production recovery in the region, strong supply growth from non-OPEC countries combined with potentially more aggressive OPEC policy could reignite oversupply conditions in 2026 Q4 and push oil prices lower once the strait reopens. Based on the assumption that the Strait of Hormuz will reopen around end-July (meaning a five-month effective closure period), our base case forecast is for Brent crude oil to average $87/bbl in 2026. Significant uncertainty remains over the exact timing of the strait's reopening, and risks to oil prices are binary. The current price increase reflects temporary logistical supply disruptions rather than permanent loss of production capacity. We expect the strait to reopen around the end of July and believe Brent crude oil prices will fall significantly from elevated levels seen during the March to July period. (Jin10 Data APP) According to a Bloomberg survey, OPEC crude oil production fell to its lowest level in decades in May, as the US blockade against Iran and ongoing turmoil in the Persian Gulf region continue to curtail output. OPEC daily oil production fell by 1.22 million barrels in May (Iran accounting for half), dropping to 16.33 million barrels per day, the lowest level in at least 37 years. The figures exclude the UAE, which left OPEC last month. Iran's daily oil production last month tumbled to 2.34 million barrels, the lowest in five years, a drop of 710,000 barrels. The US Central Command remains active in enforcing the blockade of all maritime traffic to and from Iranian ports. (Jin10 Data APP) Notably, however, the UK government has raised its domestic crude oil price forecast, now expecting that crude oil prices could remain around $100/bbl until 2028 even if the US reaches a peace agreement with Iran, because it now assumes a longer timeline for energy supply recovery from the Gulf region. The new analysis warns that pressures on energy prices are higher than previously expected, while the global economic outlook is also deteriorating. The UK government previously expected that Gulf region supplies could resume within about six months after the war ends, but it now believes that recovery could take as long as fourteen months. (Jin10 Data APP)

According to industry sources on June 5, POSCO Holdings received RIGI approval from the Argentine government for its Sal de Oro lithium project in Argentina. RIGI is a framework designed to attract large-scale investment in strategic industries such as energy, mining and technology. Once approved, companies can expect benefits such as lower corporate taxes, tariff exemptions and eased foreign exchange regulations.

SMM June 5 News: Metals market, as of the midday close, domestic base metals all declined. SHFE copper, aluminum, and lead each fell within 0.5%. SHFE zinc fell 0.88%, SHFE tin fell 4.29%, and SHFE nickel fell 1.68%. Additionally, the most-traded casting aluminum futures contract edged down, alumina most-traded contract fell 0.75%, lithium carbonate most-traded contract rose 1.37%, silicon metal most-traded contract fell 1.15%, and polysilicon most-traded futures contract fell 1.76%. Ferrous metals mostly rose, with iron ore falling 0.84%, rebar and HRC both edging up 0.06%, and stainless steel falling 1.05%. Coking coal and coke: the most-traded coking coal contract rose 2.74%, and the most-traded coke contract rose 1.5%. Overseas base metals market, as of 11:39, LME metals fell across the board. LME copper fell 1.05%, LME aluminum fell 0.98%, LME lead fell 0.4%, LME zinc fell 0.99%, LME tin fell 2.05%, and LME nickel fell 0.21%. Precious metals, as of 11:39, COMEX gold fell 0.9% and COMEX silver fell 1.77%. Domestic precious metals: the most-traded SHFE gold contract fell 0.53%, and the most-traded SHFE silver contract fell 1.75%. Additionally, as of the midday close, the most-traded platinum futures contract fell 0.02%, and the most-traded palladium futures contract fell 2.4%. As of the midday close, the most-traded European container freight futures contract fell 0.68% to 3,660 points. As of 11:39 on June 5, selected futures midday quotes: Spot and fundamentals Copper: Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper quoted at a premium of 50 yuan/mt, up 20 yuan/mt from the previous trading day; standard-quality copper quoted at a discount of 20 yuan/mt, up 10 yuan/mt; SX-EW copper quoted at a discount of 70 yuan/mt, up 10 yuan/mt. The average price of Guangdong #1 copper cathode was 105,335 yuan/mt, down 65 yuan/mt from the previous trading day, while the average for SX-EW copper was 105,250 yuan/mt, down 70 yuan/mt. Spot market: Guangdong inventory continued to decline today, marking four consecutive days of decline... Macro front Domestic side: [Strengthening fair competition: China Anti-Monopoly Enforcement Annual Report (2025) released] The State Administration for Market Regulation (the National Anti-Monopoly Bureau) released the China Anti-Monopoly Enforcement Annual Report (2025). The report noted that in 2025, the SAMR continued to step up anti-monopoly enforcement, filing 20 monopoly cases and concluding 22 throughout the year, with total fines and confiscations reaching 653 million yuan; steadily improved the quality and efficiency of business concentration regulation, concluding 706 merger cases, up 9.8% YoY; intensified efforts to remove local protectionism and market segmentation, issued the Implementation Measures for the Fair Competition Review Regulations, strengthened gatekeeping at the source for fair competition review, and market regulation departments at all levels reviewed nearly 60,000 policy measures during the year. (CCTV) [PBOC Reverse Repo Injects Net 92 Billion Yuan Today] The PBOC conducted a 215 billion yuan 7-day reverse repo operation at an interest rate of 1.4%, unchanged from the previous operation. Today, 123 billion yuan in reverse repos matured. On the dollar front: As of 11:39, the US dollar index edged down 0.03% to 99.42. US initial jobless claims for the week ending May 30 came in at 225,000, above the expected 213,000 and the revised prior reading of 212,000, the highest since the first week of February. The four-week moving average was 214,750, up from 208,250 the previous week. Continuing claims stood at 1.777 million, slightly below the expected 1.78 million. The rise in initial claims indicates some softening in the labor market, though they remain at relatively low and stable levels. Continuing claims edged down. It should be noted that continuing claims data are reported with a one-week lag, so next week's data will correspond to this week's initial claims. (Jin10 Data APP) According to the CME FedWatch Tool: The probability that the Fed will keep interest rates unchanged through June is 96.4%, while the probability of a cumulative 25-basis-point cut is 3.6%. Through July, the probability of rates staying unchanged is 88.5%, the probability of a cumulative 25-bp rate hike is 8.2%, and the probability of a cumulative 25-bp cut is 3.2%. The Fed's Mary Daly said that monetary policy is currently in a good place, but the economic situation is too uncertain to clearly determine the path of interest rates. Daly stated that providing forward guidance is not appropriate at this time because it is impossible to predict how the economy will evolve, and the most concerning issue is inflation, with the focus on rising energy and food prices. Bringing inflation back to target is the Fed's top priority. Daly also said that while there is no clear evidence in the economic data yet that AI is boosting productivity, she remains optimistic about the technology and believes 2027 will be a litmus test; at the same time, she sees no financial stability concerns related to AI investment. (Jin10 Data APP) Data: Today, data including the US unemployment rate for May, US seasonally adjusted non-farm payrolls for May, US average hourly earnings year-over-year for May, US average hourly earnings month-over-month for May, UK Halifax seasonally adjusted house price index month-over-month for May, French industrial production month-over-month for April, French trade balance for April, Eurozone Q1 revised GDP annual growth rate, and Eurozone Q1 final seasonally adjusted employment change quarter-over-quarter will be released. Additionally, 2028 FOMC voting member and Kansas City Fed President Schmid participated in a fireside chat, while 2027 FOMC voting member and San Francisco Fed President Daly delivered a speech. Crude Oil: As of 11:39, oil prices on both exchanges moved sideways, with WTI up 0.19% and Brent up 0.46%. The market focused on developments in the geopolitical conflict. UK-based maritime analytics firm Windward reported on the 4th that satellite imagery showed loading operations had resumed at Iran’s key oil export hub, Kharg Island. The report stated that satellite images captured on June 2 showed a very large crude carrier (VLCC) moored near the western offshore terminal of Kharg Island, marking the first confirmed vessel to berth since the facility halted operations in early May due to a suspected oil leak. On June 3, loading operations were underway simultaneously for the VLCC at the western berth and a Panamax tanker at the eastern T-jetty. By the 4th, the VLCC had completed loading and departed, while the Panamax remained berthed at the terminal. Windward noted that the simultaneous resumption of services at both terminals indicates Iran is actively working to restore crude export capacity. The report also highlighted continued frequent activity by small fast-attack craft of Iran’s Islamic Revolutionary Guard Corps (IRGC) throughout the Strait of Hormuz. The ongoing high tempo of operations suggests that the IRGC Navy remains on heightened alert to support Iran-linked vessels in the Strait. (Xinhua News Agency) On Friday, an explosion occurred near the Mina Al Fahal crude terminal in Oman. Details on the cause and scale remain limited, but the incident was reportedly a drone attack. The spillover of geopolitical risks has drawn close attention from multiple parties. (Jin10 Data App) Furthermore, eight OPEC+ member countries will hold an online meeting on Sunday to review supply policy for March. According to delegates, OPEC+ is still prepared to approve the suspension of production increases, even after US threats against member Iran helped push oil prices to $70. A delegate previously suggested that a major supply disruption could prompt the group to act, but for now, their stance appeared unaffected by this week’s crude price rally. OPEC+ faces a more uncertain choice at its subsequent monthly meeting, which will likely be held in early March, when it must decide on a course of action after the Q1 production-increase pause expires. Other members like Saudi Arabia and the UAE have already shown notable signs of eagerness to continue restoring output. However, whether further increases are feasible is another question. (Jin10 Data App) Spot Market Overview: ► ► ► ► ► ► ► ► ► ►

[E-Bike Market Updates] According to the website of the Foshan Municipal Administration for Market Regulation in Guangdong Province, the Foshan Municipal Administration for Market Regulation recently issued a notice on the quality supervision and random inspection of e-bikes and accessories in 2025 (Notice No. 8 of 2026). A total of 5 models of e-bikes and accessories were found to be non-compliant in this inspection.

This week, the operating rate of China's downstream aluminum processing industry leaders was recorded at 64%, edging down 0.1 percentage point WoW, with significant divergence across sub-sectors. The operating rate of primary aluminum alloy edged up 1.2 percentage points WoW to 59.4%; although supply remained normal, demand recovery was slow, and the rate is expected to hold steady in the short term. The operating rate of aluminum plate/sheet and strip edged down 0.2 percentage points to 72.0%, with robust export orders offsetting weak domestic demand caused by high aluminum prices. The operating rates of aluminum wire and cable and aluminum extrusion held flat at 68.0% and 57.6% respectively; aluminum wire and cable benefited from a significant increase in aluminum stranded wire exports. Extrusion side, steady growth in home decoration orders partially offset the drag from weak real estate recovery, while industrial extrusion demand remained solid, expected to hold up well in the short term. The operating rates of aluminum foil and secondary aluminum producers declined 0.3 and 1 percentage point respectively to 73.3% and 53.9%, affected by multiple factors including fading peak season, air-conditioner foil drag, bill supervision tightening, and weakening demand, facing sustained downward pressure going forward. Overall, strong exports partially compensated for insufficient domestic demand, but high aluminum prices, cost pressure, and off-season factors continued to constrain the industry's upside room. Primary aluminum alloy: This week, the operating rate of China's industry leaders in primary aluminum alloy rose 1.2 percentage points WoW to 59.4%. Supply side, enterprises maintained normal production schedules overall. Some enterprises saw operating rates rebound recently as prior inventory had been largely depleted. Demand side, the aluminum price center shifted lower this month MoM, but downstream spot order quotes remained generally scarce, with the market primarily executing long-term contracts as usual. As downstream demand recovered slowly, primary aluminum alloy enterprises intensified competition for limited orders, leading to a slight increase in overall inventory. Overall, with aluminum prices maintaining current levels, the stimulus effect on downstream consumption remained limited. The operating rate of the primary aluminum alloy industry is expected to stay at current levels, likely remaining stable next week. Aluminum plate/sheet and strip: This week, the operating rate of aluminum plate/sheet and strip industry leaders edged down 0.2 percentage points WoW to 72.0%. Operations side, plate/sheet, strip and foil industry leaders maintained a generally stable production pace, but disrupted shipment pace had not yet eased due to persistently high aluminum prices and downstream speculative purchasing patterns. Orders side, stable domestic can stock packaging demand provided a floor; ESS sector battery casings, brazing materials and other products maintained high operating rates as downstream orders extended into Q3, forming a key support; auto sheets benefited from MoM rebound in new energy vehicle sales in May and strong exports, with orders recovering at the margin. Export side, a stronger overseas market significantly benefited China's exports, with enterprises reporting export orders already extended to late August and beyond, with full orders on hand. However, the domestic commodity plate market faced a severe situation: aluminum ingot average prices had long operated at a high level of 24,000 yuan/mt, civilian aluminum semis demand contracted sharply, fixed-price engineering orders were widely delayed as picking up goods meant immediate losses, and domestic orders showed signs of weakening. In the short term, although strong exports could offset some weak domestic demand, aluminum price fluctuation risks intensified, and enterprises tended to control production schedule pace while destocking simultaneously. The operating rate of aluminum plate/sheet and strip is expected to be under pressure in June. Aluminum wire and cable: The domestic aluminum wire and cable industry operating rate held steady at 68.0% this week, flat WoW. The industry operating rate stayed high during the week, mainly supported by strong export order activity. Resilient ex-China demand continued to drive enterprise production plans, and near-term industry orders remained focused on aluminum stranded wire export orders. In contrast, domestically, the pace of power grid construction project order placement was slower than expected at the beginning of the year. Recent power grid tenders were dominated by low-voltage and overhead lines, and the marginal boost from order production schedules to operating rates weakened. However, sustained volume growth in export orders effectively filled the gap in domestic demand, and the order structure continued to show a pattern of "strong exports, stable domestic." Under the current dynamic between high export growth and stable domestic demand, industry shipments maintained a dynamic balance, and operating rates are expected to remain resilient in the near term. Aluminum extrusion: The domestic aluminum extrusion operating rate held steady at 57.6% this week, with the industry continuing a mild operating trend overall. On the architectural extrusion side, home renovation orders maintained steady incremental growth recently. Combined with some enterprises having previously secured large-scale project orders such as supertall buildings and corporate headquarters, their volume advantage and longer delivery cycles provided sustained support for industry operations, partially offsetting the drag from weak real estate recovery. On the industrial extrusion side, demand in segments such as power systems, automotive lightweighting, and PV frames remained solid, supporting stable industry operations. Multiple large enterprises reported that May orders remained robust and held an optimistic outlook for June orders. However, some small and mid-sized industrial extrusion enterprises reported that to maintain healthy cash flow, they expect to moderately control order-taking to ease finished product inventory pressure. Some enterprises also proactively declined orders with low processing fees to maintain reasonable margins, leading to slight divergence in industry operations. Overall, off-season characteristics had not yet emerged, and the aluminum extrusion operating rate is expected to continue to hold up well next week. Aluminum foil: The operating rate of aluminum foil industry leaders pulled back 0.3 percentage points WoW to 73.3% this week. At the enterprise operation level, the traditional peak-season effect was gradually fading. Although orders on hand at industry leaders remained ample, structural divergence intensified. On the order side, demand for food packaging foil and pharmaceutical foil was at the tail end of the peak season, and domestic orders were set to face a seasonal pullback. Battery foil, on the other hand, benefited from robust battery end-use demand, with tight production schedules. However, the air-conditioner foil segment faced notable pressure: June household air conditioner domestic sales production schedules were sharply revised down YoY, downstream clients bargained aggressively, hydrophilic foil processing fees were running near cost, and the air-conditioner foil segment entered a downturn earlier than in previous years. In June, the packaging off-season effect and the drag from air-conditioner foil are expected to gradually dominate, with operating rates continuing to pull back. Secondary Aluminum: This week, the operating rate of secondary aluminum industry leaders fell 1 percentage point WoW to 53.9%, mainly weighed down by dual pressures from both the cost and demand sides. Cost side, invoice regulation continued to tighten with an expanded scope, and the shortage of compliant input invoices forced some secondary aluminum producers to cut production, significantly dampening their willingness to operate. Demand side, downstream consumption weakened further after June, with new orders for die-casting remaining sluggish. Although ADC12 prices were raised consecutively at the beginning of the week driven by costs, downstream buyers showed limited acceptance of high prices, restocking mainly on rigid demand with little willingness to rush to buy amid continuous price rise, and transaction volumes failed to increase in tandem. Overall, if invoice issues continue to escalate and the off-season deepens further, the industry operating rate still faces downward pressure.

[SMM Aluminum Price Weekly Review: Export Demand Offsets Weak Domestic Consumption, China Domestic Aluminum Prices Expected to Fluctuate and Adjust in the Short Term]