According to SMM statistics, as of June 5, the inventory of primary aluminum ingots in major domestic consumption areas stood at 504,000 mt, a decrease of 15,000 mt from the beginning of the week and a decline of 7,000 mt WoW from Thursday. After the Dragon Boat Festival holiday, the overall inventory buildup situation in China remained manageable, and destocking resumed mid-week, highlighting the continued resilience of domestic consumption in early June and the still relatively low supply of aluminum ingots. The inventory buildup during the holiday was particularly pronounced in the Gongyi region, mainly due to the short-term intensive arrivals caused by customers' concentrated shipments at month-end. However, the volume of goods in transit by rail has returned to the level of the second half of May after the holiday, slightly reducing the pressure of arrivals. The Foshan region maintained a status quo of weak supply and demand for aluminum ingots, with a slight and stable decline observed after the holiday. The Wuxi region experienced a slight inventory buildup during the holiday, but it is understood that subsequent shipment plans from aluminum smelters remain relatively low, and the subsequent arrivals are expected to remain at a relatively tight level, with significant destocking observed mid-week again. SMM expects that the overall inventory of aluminum ingots in China will continue to maintain a destocking trend and is likely to break below the 500,000 mt threshold in the near future.

June 4 News: According to SMM statistics, on June 4, the inventory of aluminum ingots in Guangdong was 206,000 mt; in Wuxi, it was 130,000 mt; and in Gongyi, it was 55,500 mt. The total inventory across these three locations was 391,500 mt, a decrease of 10,500 mt from the previous trading day.

★Macro★ 01 ★★★ [China Real Estate News: From the current situation of the real estate market, the timing for a comprehensive rollout of ready-to-move-in home sales is not yet ripe] An article in China Real Estate News pointed out that recently, the topic of ready-to-move-in home sales has once again become a focal point of attention in the industry and media. Firstly, it stems from a "small article" in a foreign media outlet claiming that "China is considering a nationwide rollout of ready-to-move-in home sales." Secondly, it stems from the statement made by the National Financial Regulatory Administration on May 7 that "a series of financing systems compatible with the new model of real estate development will be accelerated in the near future." Thirdly, a document was issued in Xinyang, Henan Province, requiring that "all commercial housing developments on newly transferred land must be sold as ready-to-move-in homes." As an important part of the new model of real estate development, the pilot work for ready-to-move-in home sales has long been underway. According to agency statistics, at least 30 provinces and cities across the country have issued relevant documents to promote the pilot work of ready-to-move-in home sales, and 18 cities have introduced substantive support measures. From a market perspective, the proportion of ready-to-move-in home sales in commercial residential sales has risen from 12.7% in 2020 to 30.8% in 2024, an increase of 18.1 percentage points over five years, indicating a remarkable pace of advancement. However, from the current situation of the real estate market, the timing for a comprehensive rollout of ready-to-move-in home sales is not yet ripe. 02 ★★ EU Initiates Consultations on Carbon Labels for Steel Products Recently, as part of an impact assessment of different policy options related to the Clean Industry Agreement, the European Commission has launched a public consultation, which includes voluntary labeling to indicate the carbon intensity of steel products. The Industrial Decarbonization Accelerator Act is an important component of the Clean Industry Agreement, aiming to enhance sustainable and resilient industrial production in the EU's energy-intensive industrial sectors by supporting decarbonization investments. Its three main objectives are to accelerate the permitting process for industrial decarbonization; identify and promote priority industrial decarbonization projects and clusters; and the last project will consider introducing sustainability and resilience criteria, as well as minimum EU content requirements, in public procurement (and in some cases, private procurement) in strategic sectors. Its purpose is to create a leading market for low-carbon industrial products. In addition, it will assess the promotion of low-carbon-intensity industrial products, including alternatives to EU labeling. The European Commission stated that this will involve developing a voluntary steel label based on EU Emissions Trading System data and the methodology of the EU Carbon Border Adjustment Mechanism (CBAM). The impact assessment will also consider incentives for adopting clean carbon raw materials, including carbon capture and utilization, sustainable biomass, and recycled waste. The European Commission continued its recent rhetoric of strongly supporting the industrial sector, stating, "If the EU does not take more action, it will maintain the status quo, increase the risk of losing European strategic industries, and become overly dependent on non-EU countries in terms of the EU's green, digital, defense, and economic security goals." ★Industry and Downstream Sectors★ 01 Guangzhou Mortgage Interest Rates Increase by 10BP Today Several banks in Guangzhou have raised the additional points for mortgage interest rates. Reporters learned from some banks and real estate agencies that, starting from May 17, the first-home mortgage interest rate for banks in the Guangzhou area has been adjusted from the original LPR-60bp to LPR-50bp. This means that the first-home mortgage interest rate for loans with a term of over five years has increased by 10BP, from the original 3.0% to 3.1%. ★Other Hot Topics★ ⭕ [China Reduces US Treasury Holdings by $18.9 Billion in March, Dropping to Third Place; UK Rises to Second] Data released by the US Treasury Department on May 16 local time showed that among the top three overseas holders of US Treasuries in March 2025, Japan and the UK increased their holdings, while China reduced its holdings. China moved from being the second-largest holder of US debt to the third, while the UK became the second-largest holder. March marked the eve of the current round of market turbulence in US Treasuries. According to the US Treasury Department's March 2025 Treasury International Capital (TIC) report, Japan increased its holdings of US Treasuries by $4.9 billion in March, reaching a total of $1,130.8 billion, remaining the largest holder. China reduced its holdings of US Treasuries by $18.9 billion in March to $765.4 billion, marking its first reduction this year. After the reduction, China's holdings of US Treasuries dropped from second to third place. ⭕[Moody's Downgrades US Credit Rating from AAA to AA1] Moody's, an international credit rating agency, announced on the 16th that it had decided to downgrade the US sovereign credit rating from AAA to AA1 due to an increase in the US government's debt and interest payment ratios. At the same time, it adjusted the outlook for the US sovereign credit rating from "negative" to "stable". Moody's stated that the US federal debt burden is expected to rise to 134% of GDP by 2035, and the US federal government deficit is projected to reach 9% of GDP by 2035. As the economy adjusts in response to tariffs, GDP growth may slow down. ⭕ [CSRC: Increasing Tolerance for Regulatory Oversight of Changes in Financial Conditions, Horizontal Competition, and Related-Party Transactions] The China Securities Regulatory Commission (CSRC) issued the Decision on Amending the "Measures for the Administration of Major Asset Restructuring of Publicly Listed Firms". The decision increases tolerance for regulatory oversight of changes in financial conditions, horizontal competition, and related-party transactions. The requirement that publicly listed firms must fully explain and disclose that the current transaction is conducive to "improving financial conditions" and "reducing related-party transactions, avoiding horizontal competition, and enhancing independence" for the listed firm has been adjusted to "not causing significant adverse changes in financial conditions, not leading to new horizontal competition with significant adverse impacts, and not resulting in related-party transactions that severely affect independence or are obviously unfair." ⭕ [Ukrainian Official Says Negotiations Yielded No Results] Reporters learned on the 16th local time that the Turkish Foreign Ministry announced the conclusion of the trilateral talks between Turkey, Russia, and Ukraine. Oleksiy Honcharenko, a member of the Verkhovna Rada of Ukraine, stated that the negotiations in Istanbul yielded no results. According to Ukrainian sources, as a condition for a ceasefire, the Russian delegation demanded the withdrawal of Ukrainian troops from the Donetsk, Luhansk, Kherson, and Zaporizhzhia regions. Russia's other demands were also "unacceptable" and far exceeded the scope of previous discussions. Additionally, some sources claimed that the negotiations were only suspended, not concluded. ⭕ [Tata Steel India to Increase Iron Ore Production by 15 Million mt Annually] Recently, Tata Steel India, a steel company, plans to significantly increase production at its oldest mine, Noamundi, which has been in operation for a full century. Through Tata Steel's OMQ (Ore, Mines, and Quarries) division, $1.18 billion will be allocated for this purpose. The company plans to distribute these funds among three mines in Jharkhand: Noamundi, Joda, and Katamati. Consequently, its total capacity is expected to increase from the current 40 million mt per year to 55 million mt per year. ⭕ [General Administration of Customs: China Imported 37.83 Million mt of Coal and Lignite in April] The latest data from the General Administration of Customs show that in April 2025, China exported 720,000 mt of coal and lignite, up 29.8% YoY; from January to April, cumulative exports reached 2.13 million mt, up 9.8% YoY. In April, China exported 550,000 mt of coke and semi-coke, down 40.8% YoY; from January to April, cumulative exports reached 2.32 million mt, down 30.4% YoY. In April, China imported 37.83 million mt of coal and lignite, down 16.4% YoY; from January to April, cumulative imports reached 152.67 million mt, down 5.3% YoY. ⭕ [US Steel Imports Rose 11.6% MoM in March] According to preliminary census data from the US Department of Commerce, the US monthly steel imports in March this year increased by 11.6% MoM and decreased by 0.6% YoY, totaling 2,271,358 mt. In terms of value, the total US steel imports in March were $2.61 billion, compared to $2.30 billion in February last year and $2.77 billion in March last year. The major source countries for US steel imports in March included Canada (448,626 mt), Brazil (389,380 mt), Mexico (352,899 mt), South Korea (229,327 mt), Taiwan, China (106,049 mt), and Germany (104,371 mt). ⭕[Successful First Lifting of the Housing for the Rolling Mill in the Zhongshou Special Steel ESP Ultra-thin Strip Production Line Project] At 8 a.m. on May 16, at the site of the Zhongshou Special Steel ESP Ultra-thin Strip Production Line Project, the housing for the R3 roughing mill was successfully hoisted into place, marking the official entry of the project into the core equipment installation phase.

[SMM Weekly Survey on Aluminum Downstream: Aluminum Processing Operating Rate Rebounds Slightly After the Holiday, Sector Differentiation Persists Amid Off-Season] This week, the operating rate of leading enterprises in China's aluminum downstream processing sector increased by 0.3 percentage points WoW to 61.9%.

SMM, May 8: Metal Market: As of the daytime close, domestic market base metals generally declined, with only SHFE lead rising, up 0.24%. The rest of the metals fell, with SHFE copper leading the decline at 0.9%, followed by SHFE zinc, which dropped 0.78%. The declines in other metals fluctuated slightly. The main alumina contract rose 3.25%. In addition, the main lithium carbonate contract fell 0.77%, the main polysilicon contract rose 2.43%, and the main silicon metal contract fell 0.36%. The main European container shipping contract fell 3.64%. The ferrous metals series declined collectively, with iron ore leading the decline at 2.73%. Rebar and HRC both fell over 1%, with rebar down 1.74% and HRC down 1.18%. In the coking coal and coke segment, coke fell 2.25%, and coking coal fell 2.13%. In the overseas market, as of 15:03, overseas market base metals, except for LME tin, all declined. LME tin rose 0.46%, LME lead fell 0.79%, LME zinc fell 0.59%, and LME copper fell 0.49%. The rest of the metals declined slightly. In precious metals, as of 15:03, COMEX gold fell 1.7%, and COMEX silver fell 0.84%. Domestically, SHFE gold fell 1.41%, and SHFE silver fell 1.78%. Market conditions as of 15:03 today 》Click to view SMM market dashboard Macro Front Domestic: [Zheng Bei, Deputy Director of the National Development and Reform Commission (NDRC): High-quality projects with a total investment of about 3 trillion yuan will be launched this year] Zheng Bei, Deputy Director of the National Development and Reform Commission (NDRC), stated at a State Council Information Office press conference that the full text of the Private Enterprise Promotion Law embodies the principles of equal treatment, fair competition, equal protection, and common development. The NDRC will focus on promoting implementation in areas such as breaking down barriers, expanding opportunities, and optimizing services. In terms of expanding opportunities, support will be given to private enterprises to actively participate in the "implementation of major national strategies and the development of security capabilities in key areas" and the "program of large-scale equipment upgrades and consumer goods trade-ins." Efforts are being accelerated to improve the long-term mechanism for private enterprises to participate in major national projects. The NDRC has launched a batch of major projects in fields such as nuclear power and railways. Currently, the shareholding ratio of private capital in some nuclear power projects has reached 20%. In the fields of industrial equipment renewal and recycling, the capital contribution of some private enterprises exceeds 80%. Zheng Bei revealed that this year, high-quality projects with a total investment of about 3 trillion yuan will be launched in key areas such as transportation, energy, water conservancy, new-type infrastructure, and urban infrastructure. Zheng Bei also stated that during the legislative process of the Private Economy Promotion Law, the NDRC, in coordination with relevant departments, has planned in advance and simultaneously carried out the formulation, revision, abolition, and interpretation of related systems. A batch of supporting systems have already been issued.She stated that a batch of supporting systems are being accelerated for implementation; meanwhile, in promoting technological innovation, service guarantees, and rights protection, many localities are actively improving relevant supporting measures based on local realities. Click for details [Deputy Director of the Financial Regulatory Administration, Lin Cong: 12.6 trillion yuan in new loans have been issued to small and micro entities through the coordination mechanism supporting small and micro enterprise financing] Deputy Director of the Financial Regulatory Administration, Lin Cong, stated at a press conference of the State Council Information Office that the Financial Regulatory Administration has collaborated to create an information sharing mechanism. Offline, the Financial Regulatory Administration, together with the National Development and Reform Commission (NDRC), established a coordination mechanism supporting small and micro enterprise financing, promoting the direct delivery of credit funds to the grassroots level, which is fast, convenient, and at appropriate interest rates. Through this mechanism, 12.6 trillion yuan in new loans have been issued to small and micro entities, with an average interest rate of 3.66%. Online, the promotion of credit information sharing and comprehensive financial service platforms in multiple regions has been driven, allowing data to travel more and enterprises and banks to travel less, supporting banks in issuing credit loans with data information. By the end of Q1, the balance of credit loans for private enterprises was 18.1 trillion yuan, up 15.4% YoY. ► On May 8, the central parity rate of the RMB in the interbank foreign exchange market was 7.2073 yuan per US dollar. On the US dollar side: As of 15:03, the US dollar index rose 0.3% to 100.18. On May 7 local time, the US Fed released its interest rate decision statement, announcing that the target range for the federal funds rate would remain at 4.25% to 4.50%, marking the third consecutive time since January this year that the US Fed has kept rates unchanged. In the latest monetary policy statement, the US Fed stated that the uncertainty of the economic outlook has further intensified, and the risks of rising unemployment and inflation have increased. At the press conference, Powell denied any idea of preemptive interest rate cuts. When discussing the prospects for rate cuts, Powell said that situations suitable for rate cuts or maintaining the status quo may arise in the future. No predictions can be made now, and we will have to wait until June. Traders expect that the US Fed will cut rates by 77 basis points starting from September this year. (Wenhua Comprehensive) On the data side: Today, Germany's seasonally adjusted industrial production MoM for March, Germany's working-day adjusted industrial production YoY for March, Germany's seasonally adjusted exports MoM for March, the UK's central bank benchmark interest rate for May, the US initial jobless claims for the week ending May 3, the US continuing jobless claims for the week ending April 26, the US wholesale inventories MoM final for March, the US New York Fed's 1-year inflation expectations for April, and the US New York Fed's 3-year inflation expectations for April will be released.Also to watch: The US Fed's Federal Open Market Committee (FOMC) will announce its interest rate decision; Fed Chairman Powell will hold a press conference on monetary policy; the Bank of England will announce its interest rate decision. Crude oil: As of 15:03, oil prices in both markets rose simultaneously, with US crude oil up 0.38% and Brent crude oil up 0.31%. Signs of easing trade tensions improved market sentiment, triggering a rebound in oil prices in an oversold market. However, after the US Fed kept interest rates unchanged but warned of rising economic uncertainty, concerns about weak demand limited the rise in oil prices. Last week, US gasoline inventories increased, exacerbating concerns about weak demand and prompting analysts to worry that consumption would not increase as the US entered the summer demand period later this month. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and its allies will increase oil production, adding pressure to oil prices. (Wenhua Comprehensive) SMM Daily Review ► [SMM Nickel Ore Daily Review] Prices of overseas mines for Philippine nickel ore ease; tight supply of Indonesia's local ore persists ► The tug-of-war between sellers and buyers continues; spot prices of EMM remain stable for now [SMM EMM Daily Review] ► Silver prices continue to consolidate at high levels; trading activity in the spot market improves [SMM Daily Review] ► Suppliers' quotes are relatively high; actual transactions in the rare earth market remain sluggish [SMM Rare Earth Daily Review]

["[US Fed Maintains Status Quo, Highlights Rising Risks of Unemployment and Inflation] The US Fed kept interest rates unchanged for the third consecutive meeting, emphasizing that it sees increased risks of both rising inflation and unemployment. The FOMC committee stated, 'Uncertainties about the economic outlook have increased further. The Committee is monitoring risks to its dual mandate in both directions and judges that risks of both high unemployment and high inflation have risen.' Officials unanimously voted to maintain interest rates within the 4.25%-4.5% range. The US Fed indicated that it would continue to reduce its balance sheet at the pace announced at the March meeting. Trump's trade policies have sparked a wave of uncertainty throughout the economy. Although tariffs are still under negotiation, economists generally expect that comprehensive tariffs will drive up inflation and drag down economic growth. This will create an imbalance between the two objectives of policymakers (price stability and maximum employment)."]