[China Iron Ore Brief Review] This week, the pre-tax ex-factory price of 64-grade alkaline concentrates (dry basis) at mines and beneficiation plants in Shandong was reported at 868, down 12. Local mines and beneficiation plants mostly maintained normal production as planned, but overall iron ore concentrates resources remained relatively tight. However, most miners had certain inventory levels and were able to maintain shipments, making it difficult for overall supply and demand to see significant changes. Steel mills were relatively cautious in their current procurement, mainly purchasing as needed, and overall market transactions were relatively sluggish. Recently, iron ore futures showed relatively volatile trends. Influenced by this, local iron ore concentrates prices are expected to

[Steel Billet Price Adjustment] On June 1, Tangshan Qian'an plain square billet resources were raised by 10 ex-factory, tax included, quoted at 3,030. (yuan/mt) [SMM Steel]

Today, the most-traded BC copper contract 2607 opened at 93,000 yuan/mt. In early trading, the copper price center gradually moved lower to touch 92,540 yuan/mt, followed by wild swings. After the day session opened, prices continued to fluctuate upward to touch 93,320 yuan/mt, then fluctuated downward, ultimately closing at 92,920 yuan/mt, down 0.06%. Open interest reached 10,346 lots, an increase of 251 lots from the previous trading day, with trading volume at 6,050 lots, indicating bears adding positions. On the macro front, US-Iran negotiations encountered new uncertainties, with adjustments to relevant agreement terms delaying negotiations by one week. Geopolitical uncertainty weighed on copper prices, and overall wait-and-see sentiment in the market was strong. Fundamentals side, market supply circulation was tight, with insufficient arrivals of both domestic and imported copper, leading to overall tight supply. Demand side, copper prices staying high suppressed downstream purchasing enthusiasm, with the market mainly engaging in rigid-demand restocking, and demand remained subdued. Inventory side, as of Monday, June 1, SMM copper inventories in mainstream regions nationwide were flat WoW, with total inventory at 245,200 mt, an increase of 92,200 mt compared to the same period last year's 153,000 mt. SHFE copper 2607 contract closed at 104,680 yuan/mt. Based on the BC copper 2607 contract at 92,920 yuan/mt, its after-tax price was 104,999 yuan/mt. The price spread between SHFE copper 2607 and BC copper was -319, maintaining an inversion that slightly widened from the previous day.

On June 1, Shagang steel mill adjusted ex-factory prices for hot-rolled steel. This adjustment was based on "Shagang's May 2026 Hot-Rolled Steel Price Adjustment Information issued on May 1." The specific adjustment details are as follows: ① The price of hot-rolled coil Q235B was raised by 100 from the previous period. The current execution price of Q235B 5.75*1500*C hot-rolled coil is 3,700 yuan/mt. The above adjustments are all tax-inclusive, effective from June 1, 2026. [SMM Steel]

SMM, June 1， According to SMM data , the average all-in cost (tax-inclusive) of the domestic electrolytic aluminum industry in May 2026 fell 1.9% month-on-month (MoM) and 2.2% year-on-year (YoY), primarily driven by declines in alumina prices and electricity prices during the period. Under the pressure of high inventory in May, domestic aluminum prices trended weak. The SMM A00 spot monthly average price (April 26 – May 25) edged down 0.8% MoM, while electrolytic aluminum profit margins expanded by RMB 110/mt to RMB 8,413/mt, with average profitability up 126.4% YoY. Based on monthly average price calculations, 100% of domestic electrolytic aluminum operating capacity was profitable in May. Breaking down the cost components: Alumina feedstock: According to SMM data, the SMM Alumina Index averaged RMB 2,674/mt in May (April 26 – May 25), down 2.3% MoM. Although average daily alumina output edged slightly lower within the month, alumina market fundamentals remained relatively loose amid the impact of overseas alumina import supply, compounded by the gradual ramp-up of new projects in Guangxi. Spot alumina prices lacked upside momentum. Entering June, as newly commissioned capacity continues to ramp up and maintenance outages are progressively completed, domestic alumina output is expected to increase, with spot prices likely to consolidate sideways for the most part. Auxiliary materials: In May, pre-baked anodes and fluoride salts saw price increases supported by cost-side factors, pushing up auxiliary material costs. Entering June, the pass-through of earlier cost-side weakness, combined with a relatively loose supply landscape, is expected to lead to a modest decline in pre-baked anode prices. On the fluoride salt front, downstream producers have limited capacity to absorb high prices, although elevated costs still provide a degree of price support; amid this tug-of-war, fluoride salt prices are expected to slip modestly MoM. Overall, electrolytic aluminum auxiliary material costs are projected to decline in June. Electricity prices: Power prices fell MoM in May, primarily because the flood season is approaching, with electricity prices in water-rich southern regions declining notably, significantly reducing electrolytic aluminum power costs. Entering June, coal price dynamics may push electricity prices slightly higher in some provinces; however, with the southern flood season underway, power prices are expected to continue declining overall. On balance, electrolytic aluminum power costs are expected to remain broadly stable. Overall , the SMM weighted-average all-in cost (tax-inclusive) of the domestic electrolytic aluminum industry edged lower in May 2026. Electrolytic aluminum costs in June are expected to remain relatively steady, with the average forecast at around RMB 15,800–16,200/mt .

SMM Analysis: On May 29, SMM's monthly blister copper RCs in south China were quoted at 800-1,000 yuan/mt, with an average of 900 yuan/mt, down 50 yuan/mt MoM...