Due to disruptions from US aluminum tariffs, imports have been hindered and domestic supply is tight, prompting the company to shift from long-term contracts to spot purchasing. Arconic, a major US aluminum producer specializing in aluminum semis for aerospace, automotive, and construction sectors, has a procurement volume of approximately 40,800 mt of aluminum ingots (90 million pounds), which is scheduled for delivery in Q2.

[6.18 Morning Meeting Minutes] Recently, the premium for saprolite ore in Indonesia's nickel ore market remained high, and the cost line of nickel ore for smelters remained firm. Additionally, the drive to switch production to high-grade nickel matte was not met. Currently, the main product of RKEF capacity is still high-grade NPI, and overall production may increase MoM from last month. Demand side, the proportion of long-term agreements for raw materials among major stainless steel mills is relatively high, and there has been a considerable trading volume of spot orders on the eve of this month. Currently, the demand for external purchases is weak.

SMM Nickel News on June 17: Macro News: (1) Tariffs - ① Trump announced that the UK and the US had signed a trade agreement, and Lutnick would decide on the exemption quotas for steel and aluminum tariffs. ② Reports stated that the EU was prepared to conditionally accept a uniform 10% tariff imposed by the US, with the EU calling the claim speculative. ③ India and the US planned to sign an interim agreement by July 9. ④ During the G7 Summit, the leaders of Japan and the US held a brief meeting, with the progress of trade negotiations remaining unclear. ⑤ Trump stated that the US-Canada agreement must include tariffs, while Canada expressed that export tariffs on Canadian goods should be eliminated. (2) On Monday, Eastern Time, US President Trump and UK Prime Minister Starmer jointly announced that they had finalized the general terms of the trade agreement reached last month. The agreement covers trade terms for steel, ethanol, automobiles, and beef. The US plans to set a quota of 100,000 units per year for British automobile imports, with a tariff rate of 10%. The UK has committed to expanding market access for US beef, ethanol, grains, and some industrial products. Spot Market: Today, the SMM 1# refined nickel price is 118,500-121,150 yuan/mt, with an average price of 119,825 yuan/mt, a decrease of 900 yuan/mt from the previous trading day. The quotation range for spot premiums of Jinchuan #1 refined nickel is 2,500-2,700 yuan/mt, with an average premium of 2,600 yuan/mt, a slight increase of 100 yuan/mt from the previous trading day. The quotation range for spot premiums and discounts of electrodeposited nickel from mainstream domestic brands is 0-400 yuan/mt. Futures Market: Affected by the volatile external macro environment, nickel prices accelerated their decline. The most-traded SHFE nickel contract (NI2507) moved downwards after a higher opening and remained in the doldrums: it opened at 119,740 yuan/mt, up slightly by 70 yuan/mt, but quickly fell during the session, reaching a low of 118,150 yuan/mt. As of 11:30, SHFE nickel closed at 118,520 yuan/mt, down 1,150 yuan/mt or 0.96% from the previous trading day. LME nickel was also under pressure, temporarily quoted at $15,000/mt. In the short term, nickel prices are expected to fluctuate rangebound between 118,000-123,000 yuan/mt. If Indonesia tightens its nickel ore policies, it may trigger a phased rebound. However, in the medium and long term, the pressure from supply surplus is difficult to resolve, coupled with a lack of incremental demand, limiting the upside room for nickel prices.

[SMM Magnesium News] Trump's new 50% steel/aluminum tariffs batter US manufacturers. Minnesota metal plants report slumping orders as aerospace/auto clients delay redesigns. Twin Cities Die Castings cites supply cost surges and flat sales, while drill bit maker Minnesota Twist Drill calls tariffs "complete havoc" for operations.

Tariffs - ① Trump announced that the UK and the US had signed a trade agreement, and Lutnick would determine the exemption quotas for steel and aluminum tariffs. ② Reports claimed that the EU was prepared to conditionally accept a uniform 10% tariff imposed by the US, with the EU stating that such claims were speculative. ③ India and the US planned to sign an interim agreement before July 9. ④ The leaders of Japan and the US held a brief meeting during the G7 Summit, with the progress of trade negotiations remaining unclear. ⑤ Trump stated that the US-Canada agreement must include tariffs, while Canada expressed that tariffs on Canadian exports should be eliminated.

Overnight, LME copper opened at $9,678.5/mt, touching a low of $9,664/mt shortly after the opening bell.

[US and UK Reach Trade Agreement Terms Including Import Car Quotas and Steel and Aluminum Tariffs] According to CCTV News, on June 16 local time, the US White House issued a statement indicating that US President Trump and UK Prime Minister Starmer jointly announced the general terms of a trade agreement. It is understood that under the general terms, the US plans to set an annual quota of 100,000 units for UK car imports, with a tariff rate of 10%. The UK has committed to making efforts to meet US requirements regarding the security of the supply chain for steel and aluminum products exported to the US, as well as the nature of ownership of relevant production facilities. On the premise that the UK meets these requirements, the US plans to promptly set "most-favored-nation" tariff quotas for steel and aluminum products, as well as certain derived steel and aluminum products, produced in the UK. In addition, both sides have committed to strengthening the supply chains for aerospace and aircraft manufacturing by establishing duty-free bilateral trade in certain aerospace products. The US has abolished tariffs imposed on the UK's aerospace industry under three previous executive orders. (Finance Link) [Ministry of Ecology and Environment Issues Announcement on Regulating the Import Management of Recycled Black Mass Raw Materials and Recycled Steel Raw Materials for Lithium-Ion Batteries] On June 10, the General Office of the Ministry of Ecology and Environment issued the "Announcement on Matters Related to Regulating the Import Management of Recycled Black Mass Raw Materials and Recycled Steel Raw Materials for Lithium-Ion Batteries," as follows: 1. Recycled black mass raw materials for lithium-ion batteries that meet the requirements of Attached Table 1 are not classified as solid waste and may be freely imported. Recycled black mass raw materials cannot be mixed with other types of recycled raw materials, and different types of recycled raw materials cannot be declared under the same customs declaration form. Imported recycled black mass raw materials cannot be imported in bulk, and different categories of recycled black mass raw materials should be placed separately. 》Click to view details [Xiaomi Auto: Currently, There Are No Official Channels for Bulk Car Orders or Cash Subsidies] In the latest Q&A session with netizens on the evening of June 16, Xiaomi Auto stated that currently, there are no official channels for bulk car orders or cash subsidies from Xiaomi Auto. The public is advised not to believe such information, let alone engage in monetary transactions to avoid financial losses. When encountering similar sales information, the public is urged to carefully verify it and rely on information released through Xiaomi Auto's official channels. (Finance Link) [Bohai Auto: Plans to Acquire Stakes in Multiple Auto Parts Companies, Stock Resumes Trading] Bohai Auto (600960.SH) announced that the company plans to acquire a 51% stake in BAIC Mould & Plastic held by Hainachuan, a 51% stake in Langfang Adient, a 100% stake in Zhilian Technology, and a 50% stake in Leoni Wiring Systems through the issuance of shares and payment in cash, and will raise supporting funds. Following this transaction, the publicly listed firm will expand its main business to include automotive exterior parts, automotive seat frames, automotive electronics, automotive wiring harnesses, and other products. Upon completion of the transaction, the publicly listed firm will extend its product lines into more automotive parts sectors by integrating the R&D capabilities of the target company, thereby comprehensively enhancing the company's core competitiveness. The company's A-shares will resume trading from the market open on June 17, 2025. (Financial Associated Press) [Desay SV: Reaches Cooperation with Chery Automobile and Hyptec to Advance the Implementation of Intelligent Driving Technology] Desay SV stated on an interactive platform that the company has reached relevant cooperation with Chery Automobile to jointly develop an in-cabin and driving integrated central computing platform. This platform is built on the company's independently developed intelligent central computing platform, ICPS01E, and adopts an innovative single-chip multi-domain fusion solution, becoming the industry's first mass-producible in-cabin and driving integrated SOC product. This marks a significant breakthrough for the company in the core technology field of intelligent driving. Meanwhile, the company has signed a strategic cooperation agreement with Hyptec to jointly develop and accelerate the implementation of the next-generation in-cabin and driving integrated, and even central computing platforms, based on a new generation of high-performance computing chips, to meet the requirements of L4 high-level autonomous driving hardware and software systems. (Financial Associated Press) [Launch Meeting for the Special Project on Improving the Quality and Reliability of China's New Energy Vehicles Held in Beijing] The China Association of Automobile Manufacturers (CAAM) organized and held the "Launch Meeting for the Special Project on Improving the Quality and Reliability of China's New Energy Vehicles" in Beijing. More than 100 representatives and experts from China's automotive T10 enterprises, mainstream vehicle manufacturers in the industry, core component enterprises for batteries, motors, and electronic control systems, intelligent vision and key electronic component enterprises, as well as industry service institutions, attended the meeting. The meeting called on relevant parties in the NEV industry chain, particularly T10+ vehicle manufacturers, core system assembly enterprises, key component and module enterprises, and related institutions, to take proactive actions to accelerate the establishment of a quality and reliability innovation and development system; learn from advanced quality and reliability experiences, strengthen relevant cutting-edge basic research, and strive to advance the higher-quality development of the NEV industry and accelerate the construction of China as an automotive powerhouse. (Financial Associated Press) Related Readings: [SMM Analysis] Official HS Codes for Black Mass Imports and Exports: What Impact on Domestic Lithium Battery Recycling Enterprises? [SMM Analysis] Payment Terms for Automakers Shortened to 60 Days, Ushering in Major Changes in the Automotive Supply Chain [SMM Analysis] Breakthrough Achieved in Portugal's Lithium Mine Project, Accelerating Development of Europe's Largest Spodumene Deposit Weekly Summary of the Lithium Iron Phosphate Market in June [SMM Lithium Battery Market Analysis] [SMM Analysis] Behind the 60-Day Payment Commitment: Suppliers' Wry Smiles and Anticipations Cobalt Product Prices "Continuously Decline": Co3O4 Falls by 7,650 Yuan in a Single Week. Will It Stop Next Week? [Weekly Observations] [SMM Analysis] Rio Tinto Teams Up with Codelco to Enter the Lithium Triangle, Investing $900 Million to Develop a World-Class Salt Lake Project [SMM Analysis] Separator Prices Remain Stable [SMM Analysis] Raw Material Prices Drag Down Overall Prices, but a Rebound May Occur During the Policy Window Period Battery and Solid-State Battery Sectors Strengthen Again; Multiple Automakers Announce Latest Progress; Lopal Shares Surge by Daily Limit for Nearly 6 Consecutive Days [Hot Stock] [SMM Analysis] Cathode Material Production Increased MoM in May, While Downstream End-Use Demand Growth Remained Sluggish [SMM Analysis] Anode Material Production Increased in May Due to Rising Demand [SMM Analysis] Co3O4 Production Increased MoM in May, with Most Market Participants Adopting a Cautious Wait-and-See Attitude Cobalt Product Quotations Collectively "Fell", While Cobalt Chloride Smelters Maintained Firm Quotations; Will Prices Remain High and Volatile in the Future? [Weekly Observations] [SMM Analysis] Impact of US Tariffs on China on the Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Methods: "Direct Export from China, Re-Export via Malaysia, and US Domestic Production" (Part 1) [SMM Analysis] Impact of US Tariffs on China on the Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Methods: "Direct Export from China, Re-Export via Malaysia, and US Domestic Production" (Part 2) [SMM Analysis] Impact of US Tariffs on China on the Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Methods: "Direct Export from China, Re-Export via Malaysia, and US Domestic Production" (Part 3) [SMM Analysis] New Breakthrough in Lithium Battery Technology: Can a Single Injection Extend Battery Life?

► US and UK Reach Trade Agreement Terms, Including Import Car Quotas and Steel and Aluminum Tariffs ► Ministry of Ecology and Environment Issues Announcement on Regulating the Import Management of Recycled Black Mass Raw Materials and Recycled Steel Raw Materials for Lithium-ion Batteries ► Xiaomi Auto: Currently, There Are No Official Channels for Bulk Vehicle Orders or Cash Subsidies ► Bohai Auto: Plans to Acquire Equity in Multiple Auto Parts Companies, Resumes Stock Trading ► Desay SV: Forms Partnerships with Chery Auto and Hyptec to Advance the Implementation of Intelligent Driving Technology ► Launch Meeting for the Special Project on Improving the Quality and Reliability of China's New Energy Vehicles Held in Beijing

[US and UK Reach Trade Agreement Terms, Including Import Car Quotas and Steel and Aluminum Tariffs] According to CCTV News, on June 16 local time, the US White House issued a statement indicating that US President Trump and UK Prime Minister Starmer jointly announced the general terms of a trade agreement. It is reported that under the general terms, the US plans to set an annual quota of 100,000 units for UK car imports, with a tariff rate of 10%. The UK has committed to making efforts to meet the US requirements regarding the security of the supply chain for steel and aluminum products exported to the US, as well as the nature of ownership of relevant production facilities. On the premise that the UK meets these requirements, the US plans to promptly set "most-favored-nation" tariff quotas for steel and aluminum products produced in the UK, as well as certain derived steel and aluminum products. In addition, both sides have committed to strengthening the supply chain for aerospace and aircraft manufacturing by establishing duty-free bilateral trade for certain aerospace products. The US has abolished the tariffs imposed on the UK's aerospace industry under three previous executive orders.

Strong Performance in Chinese Market Offsets Slowdown in North America Growth; SHFE Tin Prices Remain Volatile [SMM Tin Morning News] Macro: (1) Global NEV sales reached 1.6 million units in May, up 24% YoY. The strong performance in the Chinese market offset the impact of the slowdown in North America growth. (Bullish ★) (2) Xin Yongfei, Director of the Policy and Economics Research Institute at the China Academy of Information and Communications Technology under the Ministry of Industry and Information Technology (MIIT), stated on June 16 that in recent years, China has continuously strengthened the dominant position of enterprises in innovation, optimized and improved management mechanisms, and is currently formulating policies to cultivate and expand unicorn enterprises, while continuously increasing support for the high-quality development of specialized, sophisticated, unique, and innovative small and medium-sized enterprises. (Bullish ★) (3) Tariffs - ① Trump announced that the UK and the US have signed a trade agreement, and Lutnick will determine the exemption quotas for steel and aluminum tariffs. ② Reports indicate that the EU is prepared to conditionally accept a uniform 10% tariff from the US, with the EU describing the claim as speculative. ③ India and the US plan to sign an interim agreement before July 9. ④ The leaders of Japan and the US held a brief meeting during the G7 Summit, with the progress of trade negotiations remaining unclear. ⑤ Trump stated that the US-Canada agreement must include tariffs, while Canada expressed that tariffs on Canadian exports should be eliminated.