SMM May 7: Metals market: As of the midday close, base metals in the domestic market showed mixed performance. SHFE copper rose 0.43%, SHFE aluminum fell 1.76%, SHFE lead fell 0.36%, SHFE zinc rose 0.41%, SHFE tin rose 3.16%, and SHFE nickel fell 3.33%. In addition, the most-traded casting aluminum futures fell 1.85%, the most-traded alumina contract rose 0.49%, the most-traded lithium carbonate contract rose 0.08%, the most-traded silicon metal contract rose 2.03%, and the most-traded polysilicon futures rose 4.79%. Ferrous metals showed mixed performance. Iron ore rose 0.55%, rebar rose 0.68%, hot-rolled coil rose 0.29%, and stainless steel fell 1.12%. Coking coal and coke: the most-traded coking coal contract fell 1.22%, and the most-traded coke contract fell 1.2%. Overseas base metals, as of 11:41, LME metals mostly fell. LME copper fell 0.22%, LME aluminum fell 1.16%, LME lead rose 0.23%, LME zinc fell 0.29%, LME tin fell 1.71%, and LME nickel fell 0.13%. Precious metals, as of 11:41, COMEX gold rose 0.39% and COMEX silver rose 1.35%. Domestic precious metals: the most-traded SHFE gold contract rose 1.11%, and the most-traded SHFE silver contract rose 3.43%. In addition, as of the midday close, the most-traded platinum futures rose 3.21%, and the most-traded palladium futures rose 1.71%. As of the midday close, the most-traded Europe containerized freight index contract fell 3.35%, closing at 2,355.5 points. As of 11:41 on May 7, midday futures quotes for selected contracts: Spot cargo and fundamentals Nickel: On May 7, SMM #1 refined nickel prices fell 5,050 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,150 yuan/mt, down 100 yuan/mt from the previous trading day... Macro front China: [PBOC reverse repo operations resulted in a net drain of 99.2 billion yuan for the day] The PBOC conducted 27 billion yuan of 7-day reverse repo operations today. As 126.2 billion yuan of 7-day reverse repos matured today, a net drain of 99.2 billion yuan was achieved for the day. [HKEX CEO: LME warehouses in Hong Kong nearing full capacity] HKEX CEO Bonnie Y. Chan said that the storage capacity of a series of LME-approved warehouses in Hong Kong was nearing saturation. The LME began approving metal warehouses in Hong Kong last year. Speaking at a seminar during LME Asia Week in Hong Kong, Chan said the LME currently had 15 warehouses in Hong Kong, compared with just 4 a year ago. She called this an important milestone in establishing physical market connectivity. LME and Hong Kong Exchanges will explore more collaborative projects, including futures and RMB-denominated products, to build a comprehensive commodities ecosystem in Asia. (Jin10 Data) US dollar: As of 11:41, the US dollar index fell 0.01% to 98.01. Chicago Fed President Goolsbee said on Wednesday that the war with Iran increasingly appeared to be an inflationary shock to the economy. Although the impact on employment and economic growth was not yet evident, concerns about supply chain disruptions and sustained price increases were intensifying. "This is not yet a 'stagflation' shock," meaning the kind that hits the job market while pushing up inflation and forces the US Fed to decide which of its policy objectives faces greater risk, Goolsbee said after attending the Milken Institute conference in Los Angeles. "This is just an inflation shock. And the longer this persists, the more uneasy I become." According to CME "FedWatch": the probability of the US Fed keeping rates unchanged through June was 93.5%, with a cumulative 25-basis-point interest rate cut probability of 6.5%. The probability of the US Fed keeping rates unchanged through July was 86.5%, with cumulative probabilities of a 25-basis-point cut at 13.0% and a 50-basis-point cut at 0.5%. (Jin10 Data) Other currencies: On the first day of resumed trading in the Japanese market, the yen broadly stabilized against other G10 currencies and Asian currencies. However, analysts noted that the yen's downside room against the US dollar is likely to be limited due to potential foreign exchange intervention by Japanese authorities. Analysts at Maybank stated in a foreign exchange research report that the unpredictability of Japanese authorities' actions would limit the upside room for USD/JPY in the short term. Given that three suspected interventions have already occurred after the currency pair breached the 157.00 level, the market is now increasingly wary of pushing the dollar above that level. (Jin10 Data) Data: China's April foreign exchange reserves (TBD), US April Challenger enterprise layoffs, US initial jobless claims for the week ending May 2, US March construction spending MoM, US April New York Fed 1-year inflation expectations, Eurozone March retail sales MoM, France March trade balance, and Switzerland April seasonally adjusted unemployment rate are scheduled for release today. In addition, 2027 FOMC voter and Chicago Fed President Goolsbee will participate in a panel discussion at a conference. Crude oil: As of 11:41, oil prices in both markets rose, with WTI up 0.86% and Brent up 0.87%. The market weighed the prospects of a Middle East peace agreement. A decline in US crude oil inventory last week supported oil prices. US EIA Cushing, Oklahoma crude oil inventory for the week ending May 1 was -648,000 barrels, compared to the previous value of -796,000 barrels. US EIA crude oil inventory for the week ending May 1 was -2.313 million barrels, versus expectations of -3.291 million barrels and a previous value of -6.234 million barrels. US EIA Strategic Petroleum Reserve inventory for the week ending May 1 was -5.224 million barrels, compared to the previous value of -7.121 million barrels. According to federal data released Wednesday, US energy inventories continued to decline rapidly due to supply shocks caused by the Middle East war, highlighting the tightening supply problem as the energy crisis continued to spread. According to data from the US Energy Information Administration (EIA), refined product inventories, including diesel, plunged by 1.3 million barrels last week to the lowest level since April 2003. These inventories are currently 11% below the five-year seasonal average. Due to refinery shutdowns, diesel prices recently hit record highs in Wisconsin, Illinois, and Michigan. (CNN) According to a person familiar with the matter, the Trump administration is exploring the use of oil resources beneath US military bases and other Department of Defense sites to replenish the nation's dwindling emergency reserves. The source said no decision has been made on this potential move. This comes as the US government has pledged to explore innovative ways to replenish the Strategic Petroleum Reserve, which was further depleted during the Iran war. (Jin10 Data) According to a foreign media survey, OPEC's crude oil production fell to a 36-year low last month as the ongoing Iran war continued to obstruct Persian Gulf exports and forced more oil fields to shut down. The survey showed that OPEC's April crude oil production decreased by 420,000 barrels per day to 20.55 million barrels per day, the lowest level since 1990, mainly dragged down by further production declines in Kuwait and Iran. The survey showed that Kuwait saw the largest production drop last month, with daily output falling by 470,000 barrels to 800,000 barrels per day, less than one-third of pre-war levels. The country's exports have fallen to just 22,000 barrels per day. Iran followed, with production declining by 180,000 barrels per day to 3.05 million barrels per day, doubling the cumulative production cuts since the war began. OPEC also suffered another blow last week. The UAE announced its withdrawal from the organization, following years of friction with the group's leader Saudi Arabia over production limits. The April survey still included UAE data, as the UAE's withdrawal did not officially take effect until May 1. (Bloomberg) Spot market overview: ► ► ► ► ► ► ► ► ►

Jiangxi Copper Corporation announced that, to further optimize its industrial layout, broaden financing channels, enhance the core competitiveness of its controlled subsidiary JCC Copper Foil, and continuously strengthen the copper foil business, the company is expected to spin off JCC Copper Foil for listing on the Hong Kong Stock Exchange. This spin-off will not result in the company losing control over JCC Copper Foil, which will remain a controlled subsidiary within the company's consolidated financial statements, and will not have a material impact on the business operations and development of the company's other segments.

In late this month, Lithium Argentina announced its fourth quarter and full-year 2025 results, along with an outlook on subsequent expansion plans. The company holds a 44.8% equity interest in the Cauchari-Olaroz project. The company's flagship Cauchari-Olaroz project currently has an annual production capacity of 40,000 tons, with plans to expand by 45,000 tons per year. In the fourth quarter of 2025, the company produced approximately 9,700 tons of lithium carbonate. For the full year of 2025, production reached 34,100 tons, including 359 tons of lithium chloride (in LCE terms) produced and sold to Ganfeng Lithium in the first half of 2025 to support the startup of Ganfeng's Mariana project. 2025 production reached the upper end of the guidance range of 30,000-35,000 tons, representing a 34% increase year-over-year compared to 2024. Cost of sales in the fourth quarter of 2025 was US$66 million, with cash operating costs for lithium carbonate at US$5,618 per ton. The reduction in operating costs was driven by structural optimization and operational efficiency improvements, with these cost-saving effects expected to be sustainable. Revenue in the fourth quarter of 2025 was US$92 million, with an average realized selling price for lithium carbonate of approximately US$9,049 per ton. Due to a significant increase in market prices since late 2025, the average realized selling price for lithium carbonate in the first quarter of 2026 is expected to be approximately US$17,000 per ton. 2026 production guidance for lithium carbonate is set at 35,000-40,000 tons. With continued optimization and lean operations, production is expected to steadily increase in 2026, supporting the project's long-term operational performance. Regarding the PPG project and Cauchari-Olaroz expansion: Cauchari-Olaroz Stage 2 Expansion: The Cauchari-Olaroz project is advancing expansion plans, aiming to add 45,000 tons per year of lithium carbonate production capacity. Measured and indicated lithium resources increased by 42%, reaching 28.1 million tons of lithium carbonate equivalent, with an average lithium grade of 562 mg/L. Leveraging the better-than-expected operational performance of the Cauchari-Olaroz project, the 5,000-ton-per-year DLE plant will continue to be built, with the first unit to be deployed at Ganfeng Lithium's adjacent Mariana project for technology integration and operational validation. The Stage 2 expansion plan, incorporating DLE technology, is expected to be completed by mid-2026. The application for the Large Investment Incentive Regime (RIGI) and the environmental permit for the Stage 2 project were both submitted in December 2025. PPG Project: Three-phase integrated development, with a total target capacity of 150,000 tonnes/year LCE PPG is expected to have an annual capacity of 25,000 tonnes when it begins production in 2029, subsequently increasing to 50,000 tonnes in 2031, 100,000 tonnes in 2034, and reaching the design capacity of 150,000 tonnes/year in 2038. The detailed preliminary study was completed in December 2025. Based on the assumption of a lithium carbonate price of US$18,000/tonne, the project's after-tax net present value (at an 8% discount rate) is US$8.1 billion, with an internal rate of return (IRR) of 33%. Phase 1 environmental permit was obtained in November 2025, and the RIGI application was submitted in February 2026. Integration of the new joint venture company for the PPG project has been largely completed, with the closing expected in the second quarter of 2026. Ganfeng Lithium and Lithium Argentina are in discussions with potential customers and strategic partners on financing solutions, while simultaneously advancing offtake and minority equity cooperation. The company is considering applying for a secondary listing on the Australian Securities Exchange (ASX) or the Hong Kong Stock Exchange (HKEX), to broaden its investor base in the Asia-Pacific region while maintaining its listing on the New York Stock Exchange. Source: Lithium Argentina official website, compiled by SMM

On March 9, Dongfeng Motor Group announced that its privatization and the listing of Voyah Auto on the HKEX by way of introduction were approved by a high margin at shareholder meetings. Following the transaction, Dongfeng Motor Group will delist and deregister, achieving 100% state-owned control by Dongfeng Motor Corporation. Concurrently, Voyah Auto will list via equity distribution, becoming an independent high-end new energy vehicle entity in the international capital market.

On May 29, the website of the Hong Kong Stock Exchange (HKEX) showed that Jiangsu Riyu PV New Materials Co., Ltd. had submitted an application for listing to the HKEX, with Guotai Junan International Securities as the sole sponsor.

The first meeting of the National Task Force on the Recycling of Power Batteries from New Energy Vehicles (NEVs) emphasized the need to improve the regulatory and standards system, accelerate the formulation of relevant laws and regulations, and develop and revise mandatory standards such as safety technical specifications for various types of lithium batteries, in order to regulate recycling practices through legal means and lead the high-quality development of the industry with standards.

On the evening of May 26, Zijin Mining announced a preliminary plan to spin off its subsidiary, Zijin Gold International Co., Ltd. (hereinafter referred to as Zijin Gold International), for listing on the Hong Kong Stock Exchange (HKEX). The assets proposed for the spin-off and listing are a major focus of market attention, comprising eight world-class large-scale gold mines located in South America, Central Asia, Africa, and Oceania. These mines are the Buriticá gold mine, Norton Gold Fields, Rosebel gold mine, Aurora gold mine, Jilau/Talo gold mine, Akim gold mine (transaction completed on April 16, 2025), Left Bank gold mine, and Porgera gold mine. The total resources amount to 1,799.79 mt, with total reserves of 696.83 mt, and a 2024 production of 46.22 mt. It should be noted that Zijin Mining's gold mine resources total 3,973 mt, with reserves of 1,487 mt, and a total gold production of 73 mt in 2024. Based on the data from the aforementioned eight gold mines, the corresponding proportions within the company are approximately 45%, 47%, and 63%, respectively. For the Buriticá gold mine in Colombia, which has long been subject to illegal mining, the company has made special arrangements. The company stated that due to ongoing international arbitration related to the mine, there is uncertainty regarding the injection of equity in the Buriticá gold mine into Zijin Gold International before the resolution of the arbitration. To ensure the smooth progress of this restructuring and spin-off, the company currently plans to indirectly restructure the gold mine through entrusted operations and yield swaps. Upon completion of these arrangements, Zijin Gold International is expected to include the Buriticá gold mine in its consolidated financial statements, thereby integrating the revenue from this gold mine asset into Zijin Gold International. The Buriticá gold mine is one of Zijin Mining's largest gold mines in terms of gold production and is the only project among the company's 16 major gold mines in 2024 with a gold production exceeding 10 mt. Financial data disclosed by Zijin Mining show that Zijin Gold International achieved revenues and net profits of 21.268 billion yuan and 4.458 billion yuan (unaudited) in 2024 (pro forma data), accounting for 7% and 14%, respectively, of the company's figures for the same period. This highlights the profitability of the assets proposed for the spin-off and listing. In the context and objectives of this spin-off, Zijin Mining mentioned that it would broaden access to high-quality international investors, reduce overseas operational risks, enhance the competitiveness and flexibility of Zijin Gold International in overseas capital market financing and M&A transactions, and, given the upward cycle of gold prices, facilitate the revaluation of the company's gold assets. According to the disclosed plan, Zijin Gold International will remain a controlled subsidiary within Zijin Mining's consolidated financial statements after listing. It is initially proposed to issue no more than 15% of the total share capital of Zijin Gold International after the issuance on the main board of the HKEX, and to grant the underwriters an over-allotment option of no more than 15% of the shares issued. The issuance targets include overseas institutional investors, enterprises, and natural persons. In terms of equity structure, Zijin Mining holds 24% and 76% of the equity in Zijin Gold International through two wholly-owned subsidiaries, Zijin Mining Northwest and Jinshan (Hong Kong), respectively. The company has not disclosed the issuance price, stating that it will consider the interests of existing shareholders of Zijin Gold International, the acceptability of potential investors, and the issuance risks, with the pricing process following internationally accepted pricing mechanisms. Established in 2007 and headquartered in Hong Kong, China, Zijin Gold International's main business is the exploration, mining, processing, and sale of gold. Its main products for sale are gold bullion, dore gold, and gold concentrate. Zijin Gold International focuses on the exploration and development of high-quality gold assets globally and integrates high-quality overseas mine resources through its leading exploration and reserve augmentation capabilities. It is worth mentioning that, as stated in the company's risk disclosure, as of the date of this announcement, the injection of the aforementioned eight gold mine assets into its subsidiary, Zijin Gold International, has not yet been fully completed. If the subsequent progress of injecting these eight gold mine assets does not meet expectations, it may have an adverse impact on this transaction.

On May 21 (Wednesday), Nicolas Aguzin, CEO of Hong Kong Exchanges and Clearing Limited (HKEX), stated that the London Metal Exchange (LME) had approved the establishment of three additional warehousing facilities in Hong Kong, bringing the total number of warehousing facilities in Hong Kong to seven. Since HKEX acquired LME in 2012, it has been a strategic goal to approve the establishment of warehouses in China for storing metals traded on LME. After more than a year of efforts, LME approved the establishment of warehousing facilities in Hong Kong for the first time this January. The first batch of four warehousing facilities will commence operations in July. (Webstock Inc.)

On May 21 (Wednesday), Bonnie Y Chan, Chief Executive Officer (CEO) of Hong Kong Exchanges and Clearing Limited (HKEX), stated that the London Metal Exchange (LME) had approved the establishment of three additional warehousing facilities in Hong Kong, bringing the total number of warehousing facilities in Hong Kong to seven. Since HKEX acquired LME in 2012, a strategic objective has been to approve the establishment of warehouses in China for storing metals traded on LME. After more than a year of efforts, LME approved the establishment of warehousing facilities in Hong Kong for the first time this January. The first batch of four warehousing facilities will commence operations in July. The London Metal Exchange previously announced that it had approved four LME-approved warehousing facilities located in Hong Kong. Prior to this, LME had approved Hong Kong as an LME delivery location on January 20, 2025. Recommended Reading: "LME Announces List of First Batch of Approved Warehousing Facilities in Hong Kong"

On May 2, Janbon High Tech Co., Ltd. submitted its listing application to the main board of the HKEX. According to the prospectus, Janbon High Tech specializes in the research, development, production, and sales of silver powder, primarily used in the manufacturing of photovoltaic silver paste. The company is reportedly ranked first among domestic producers and second in the global market, with a market share of 9.9%.