The latest data shows that after the global tariff issues have cooled down, particularly with the easing of trade relations between the two largest economies, cross-Pacific shipping trade continues to be encouraged. US-bound container shipping rates remained strong in the third week after the May 12 joint China statement, despite a gradual slowdown in container shipping bookings. The latest report released on Thursday by maritime research and consulting firm Drewry showed that the price to transport a 40-foot equivalent unit (FEU) from Shanghai to Los Angeles recorded the largest weekly increase of the year in the week ending May 29—rising nearly 17% to $3,738. Although the current freight rate per container is still nearly one-third lower than the peak in January this year, it is significantly higher than the low point of $2,487 at the end of March, just before Trump announced the "Liberation Day" tariffs. Transportation data company Xeneta expects that freight rates could double in the coming weeks and may even rise higher due to the latest ruling on tariffs by the US Court of International Trade. On Wednesday, the US Court of International Trade unexpectedly ruled that Trump did not have the authority to impose a blanket of comprehensive tariffs on nearly all countries under the International Emergency Economic Powers Act (IEEPA). Prior to this week, the surge in US-bound container shipping rates was almost entirely driven by importers rushing to place orders. After Trump increased tariffs on China to 145% in early April, many importers suspended shipments of their orders. Nathan Strang, head of ocean freight at Flexport, said that some container lines were once fully booked, with sailings scheduled as far out as July. People were operating in almost complete uncertainty, so once they saw an opportunity, they would rush to request shipments. Balsam Brands, a US company that sells artificial Christmas trees and holiday decorations, said it will import 500 containers of Halloween decorations, Christmas trees, and ornaments from China in the coming weeks. It expects to pay approximately $1 million more in additional transportation costs compared to the average spot rate in mid-May. However, despite the continued high container shipping rates, the tightness in container shipping bookings has at least eased somewhat. Data from logistics technology companies Vizion and Dun & Bradstreet show that in the first three days of this week, the total number of container shipping bookings was approximately 106,000 twenty-foot equivalent units (TEUs), a decrease from the 137,000 TEUs in the same period of the previous week. Globally, the week starting May 19 was the highest booking week of the year so far. Data tracking actual shipping over the past two weeks—which tends to lag behind container booking data in terms of changes—also shows a similar slowdown trend. Over the past 15 days, approximately 34 vessels have sailed from Chinese ports to the US, a decrease from the rolling 15-day figure of 48 vessels in the previous week. The number of containers carried by these vessels has also decreased by one-third. "This is a constantly evolving situation," said Jayendu Krishna, Director of Drewry Maritime Services. "What we are witnessing is a continuous rebalancing between the supply chain and indicators such as freight rates, bookings, and sailings." Meanwhile, capacity on relevant trans-Pacific routes is also beginning to recover. Major container liner companies have committed to increasing capacity, and as demand improves, smaller freight forwarders are returning to the route after years of absence. CULines is capitalizing on the sudden boom in the trans-Pacific route and will begin offering shipping services across the Pacific, connecting multiple Chinese ports with Long Beach Port in the US; South Korea's KMTC Line will also resume trans-Pacific route services after decades of absence. China's overall trade volume remains high, with the total number of containers handled at Chinese ports last week increasing by 6% YoY, marking the 16th consecutive week of YoY growth.

SMM News on May 28: Metal Market: As of the daytime close, domestic market base metals generally fell, with only SHFE aluminum rising, up 0.17%. SHFE tin and SHFE nickel both fell by over 2%, with SHFE nickel down 2.1% and SHFE tin down 3.15%. SHFE zinc fell 0.89%, while the rest of the metals dropped slightly. The main alumina contract fell 0.73%. In addition, the main lithium carbonate contract fell 0.59%, the main polysilicon contract rose 0.23%, and the main silicon metal contract fell 2.52%, hitting a record low since its listing at an intraday low of 7,240 yuan/mt. The main European container shipping contract fell 4.08%. In the ferrous metals series, all prices fell, with stainless steel down 1.32%, rebar down 0.77%, and HRC down 0.55%. In the coking coal and coke sector, coking coal fell 2.2%, and coke fell 1.91%. In the overseas market, as of 15:03, overseas market base metals all fell, with LME tin and LME nickel both declining. LME tin fell 1.96%, and LME nickel fell 1.32%. LME zinc fell 0.7%. The declines in the rest of the metals fluctuated slightly. In the precious metals sector, as of 15:03, COMEX gold rose 0.14%, and COMEX silver rose 0.04%. Domestically, SHFE gold fell 0.59%, and SHFE silver fell 0.36%. Market conditions as of 15:03 today 》Click to view SMM Market Dashboard Macro Front Domestic: [China-EU Semiconductor Upstream and Downstream Enterprise Symposium: Firmly Opposing Unilateralism and Bullying, Striving to Maintain Global Semiconductor Supply Chain Security and Stability] The Ministry of Commerce website showed that the China-EU Semiconductor Upstream and Downstream Enterprise Symposium was held in Beijing on May 27. Relevant departments of the Ministry of Commerce, the China Semiconductor Industry Association, the European Union Chamber of Commerce in China, and representatives from over 40 Chinese and European semiconductor upstream and downstream enterprises attended the meeting. The meeting focused on deepening economic and trade cooperation in the China-EU semiconductor sector. The meeting emphasized that both China and the EU hold important positions in the global semiconductor supply chain, and strengthening cooperation is in the interests of both sides. Given the complex and severe international situation, with increasing unstable and uncertain factors, China will continue to expand high-level opening-up, providing enterprises with a fair, stable, transparent, and predictable policy environment. It supports Chinese and European semiconductor enterprises in fully leveraging their complementary advantages, deepening economic and trade cooperation in compliance with laws and regulations, firmly opposing unilateralism and bullying, and striving to maintain global semiconductor supply chain security and stability. Participants unanimously agreed that the security and stability of the global semiconductor production and supply chain are currently facing severe challenges. This symposium provided a good platform for Chinese and European semiconductor upstream and downstream enterprises to enhance understanding, boost trade confidence, and deepen exchanges and cooperation. Strengthening exchanges and cooperation in the semiconductor sector between China and the EU will help inject new impetus into the global economic recovery and growth. (Cailian Press) [China's Ministry of Finance to Issue RMB68 Billion in Treasury Bonds in Hong Kong This Year] With the approval of the State Council, the Ministry of Finance will issue RMB68 billion in Treasury bonds in six tranches in the Hong Kong Special Administrative Region in 2025. Among them, the first two tranches, totaling RMB25 billion, were issued in February and April, respectively. The third tranche of RMB12.5 billion in Treasury bonds is scheduled to be issued through tender on June 4, with specific issuance arrangements to be announced on the Central Moneymarkets Unit (CMU) system of the Hong Kong Monetary Authority. [Jiangsu: Boosting Consumption Upgrade, Expanding Service Consumption in Key Areas, and Accelerating the Development of New-Type Consumption] The Ninth Plenary Session of the 14th Jiangsu Provincial Committee of the Communist Party of China was held in Nanjing on May 27. The plenary session emphasized the need to strive for excellence in advancing deep-level reforms and high-level opening-up, accumulating greater impetus for forward development. It called for deepening the reform of market-oriented allocation of production factors and serving the construction of a unified national market. The session also urged for in-depth promotion of the construction of the "1+3" key functional areas and continuous optimization of the provincial productivity layout. It stressed the need to boost consumption upgrade with greater efforts, expand service consumption in key areas, explore new consumption scenarios, and accelerate the development of new-type consumption. The plenary session also highlighted the importance of strengthening the protection of the legitimate rights and interests of various business entities, promoting whole-chain optimization of approvals, fair supervision throughout the entire process, and whole-cycle optimization of services, to create a world-class business environment that is market-oriented, law-based, and internationalized. It called for in-depth implementation of the strategy to upgrade free trade zones, facilitate cross-border trade, and steadily expand institutional opening-up. The session also emphasized the need to continuously consolidate traditional markets, tap the potential of emerging markets, develop new forms and models of foreign trade, and actively expand international cooperation space. ► The central parity rate of the RMB against the US dollar in the interbank foreign exchange market on May 28 was 7.1894 RMB per US dollar. US dollar: As of 15:03, the US dollar index rose by 0.13% to 99.74. Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, called on Tuesday for maintaining interest rates unchanged until the impact of tariff hikes on inflation becomes clearer, and warned against ignoring the effects of such supply-side price shocks. He also noted that within the US Fed, there are differing views on how interest rates should change in response to the inflation risks posed by Trump's tariff policies. John Williams, President of the Federal Reserve Bank of New York, said on Wednesday that when inflation begins to deviate from its target, central banks must take "relatively strong countermeasures." According to survey data released by the Conference Board, a US research institution, on the 27th, influenced by factors such as the latest developments in the trade situation, the US consumer confidence index in May rebounded to 98 from 85.7 in April, higher than market expectations, ending a five-month consecutive decline. The month-on-month rate of US durable goods orders in April recorded a -6.3% decline, marking the largest drop since June 2024. Macro Aspects: Today, data including the European Central Bank's 1-year CPI expectation for the eurozone in April, the European Central Bank's 3-year CPI expectation for the eurozone in April, Germany's seasonally adjusted unemployment rate for May, the change in Germany's seasonally adjusted number of unemployed individuals for May, Australia's annual CPI rate (seasonally adjusted) for April as reported by the statistics bureau, New Zealand's official cash rate decision for May 28, France's final annual GDP growth rate for Q1, and Switzerland's Credit Suisse/CFA Economic Expectation Index for May will be released. Additionally, FOMC permanent voter and New York Fed President John Williams will participate in a panel discussion at the Bank of Japan Institute for Monetary and Economic Studies conference. The Reserve Bank of New Zealand will announce its interest rate decision and monetary policy statement, and Reserve Bank of New Zealand Governor Adrian Orr will hold a monetary policy press conference. Crude Oil Aspects: As of 15:03, oil prices in both markets rose simultaneously, with US crude oil up 0.11% and Brent crude oil up 0.08%. OPEC+ has advanced its video conference to decide on the July oil production levels of eight major member countries by one day to May 31. OPEC+ will also hold a series of virtual plenary sessions on May 28, potentially assessing production quotas across the entire organization. As the meeting approaches, the market is focused on whether OPEC+ will further increase production in July. Institutions generally expect that, following two consecutive production increases of 411,000 barrels per day in May and June, the organization will announce a third round of large-scale production increase in July, followed by a return to the regular monthly production increase of 135,000 barrels per day, maintaining this pace until the end of 2025 and pausing production increases in early 2026. An eight-country group led by Saudi Arabia and Russia held preliminary talks last week on a significant daily production increase of approximately 411,000 barrels for the third consecutive month, with the final plan to be determined in a conference call. Saudi Arabia had previously stated that the production increase was a disciplinary measure against member countries that refused to comply, noting that Kazakhstan overproduced crude oil by approximately 400,000 barrels per day in April, and that condoning such behavior would threaten the existence of the OPEC+ agreement framework. When asked about July's production plans on Tuesday, the UAE Energy Minister stated that OPEC+ is doing its utmost to balance the oil market and needs to focus on growing demand. Regarding the market outlook, Hongyuan Futures analysis suggests that the downside risk for oil prices has not been fully released, primarily because it is believed that for the Trump administration, making certain concessions to bring Iranian crude oil back to the market, thereby lowering oil prices and inflation, would be beneficial for the US Fed to cut interest rates. If US-Iran negotiations break down, oil prices will rebound in the short term, but expectations for an OPEC production increase will limit the rebound's height. If negotiations proceed smoothly, oil prices will face further downside risks. (Wenhua Comprehensive) SMM Daily Review ► Domestic silver prices continue to consolidate under pressure, with overall market trading remaining sluggish as month-end approaches [SMM Daily Review]

► US dollar weakens; domestic metal market outperforms overseas market; alumina rises over 4%; SHFE gold posts six consecutive losses; European shipping rates surge [[SMM Midday Review]] ► Large price spread between futures contracts persists on delivery day; spot trades remain sluggish [[SMM South China Spot Copper Review]] ► Spot copper premiums and discounts in Guangdong market at different time intervals on May 15 (Fourth interval: 10:45) [[SMM Price]] ► Spot copper premiums and discounts in Shanghai market on May 15 (Fourth interval) [[SMM Price]] ► Ningbo zinc: Downstream players hold certain inventory; premiums continue to decline [[SMM Midday Review]] ► Tianjin zinc: Premiums fall; trading dominated by traders [[SMM Midday Review]] ► Limited short-term supply growth in domestic smelting sector; high SHFE tin prices suppress spot transactions [[SMM Tin Midday Review]] ► [[SMM Nickel Midday Review]] Nickel prices experience slow decline on May 15; US-China container shipping bookings surge 277% 》Click to visit SMM's official website for daily quotes 》Subscribe to view historical price trends of SMM metal spot prices (Recommended for viewing on desktop)

In a volatile fusion of tariff tensions, supply chain snarls, and shifting trade dynamics, US aluminium import costs have surged to multi-year highs, reshaping the metals market and sending shockwaves through American manufacturing.

SMM Daily Review: Metals Show Mixed Performance, SHFE Copper and Aluminum Up Over 1%, NY Gold and SHFE Gold Hit New Highs, Europe Shipping Rates Down Over 5% By the close of the domestic market, base metals showed mixed performance. SHFE copper and SHFE aluminum both rose over 1%, with SHFE copper up 1.26% and SHFE aluminum up 1.11%. SHFE nickel saw the largest decline at 0.55%, while other metals experienced minor fluctuations. The main alumina contract fell 1.55%, closing below the 3,000 yuan/mt mark. Additionally, the main silicon metal contract dropped 0.61%, and the main polysilicon contract increased 1.05%, marking two consecutive days of gains. The main lithium carbonate contract declined 2.81%, recording three consecutive days of losses.

According to the SMM survey, as of February 11, the operating rate of 50 major electric furnace steel mills producing construction materials nationwide was 7.2%, down 0.98% MoM. Currently, 10% of electric furnace mills have resumed production after the holiday, while most will resume production after the Lantern Festival.