[SMM Steel] John Cockerill India secured a $32 million contract to supply a continuous galvanizing line to JSW Steel Coated Products Limited at its Khopoli plant. The project includes full engineering, supply, and commissioning, with completion scheduled for May 2028. In the short term, the deal reflects ongoing investment in value-added coated steel capacity, supporting future supply of higher-end products.

Although March traditionally marks a demand recovery period and represents the final deadline for "export rush" orders ahead of policy changes, leading to a significant MoM increase compared to February, the magnitude of this recovery is expected to be more limited than pre-holiday forecasts suggested.

SMM June 16 News: According to an official announcement from Yunnan Copper Science & Technology Development Co., Ltd., the company recently offered approximately 30 mt (metal content) of selenium ingots for public sale. Metal grade: selenium ≥99% (subject to the factory test results of Yunnan Copper Science & Technology, which only guarantees the main element, selenium). Product packaging: Barreled and palletized, with 48 barrels per pallet, and each pallet weighing approximately 1.68 mt of selenium (subject to the actual packing list). The bidding sales announcement (Inquiry No.: 202506XSS020010) was released by the Marketing Center of Yunnan Copper Science & Technology Development Co., Ltd. on the Sunshine Procurement Platform of China Copper Corporation Limited before 11:00 on June 16, 2025. Deadline for quotation submission: Bidders must log in to the Sunshine Procurement Platform of China Copper Corporation Limited (https://cg.chncopper.com/epsw/portal/index) and click on "Sunshine Purchase and Sales" to complete the relevant quotation submission before 11:00 on June 19, 2025. Late quotations will not be accepted. The successful bidder is required to pay the full contract amount in full before June 25, 2025.

Today, the People's Bank of China (PBOC) announced that it will conduct 400 billion yuan of outright reverse repo operations on June 16, marking the second announcement of such operations by the PBOC this month. Earlier in June, the PBOC had announced the conduct of 1 trillion yuan of 3-month outright reverse repo operations. Considering that a total of 1.2 trillion yuan of outright reverse repos will mature throughout June, the PBOC's two announcements imply a net injection of funds for the entire month. Industry insiders told a Caixin reporter that June is a critical period for semi-annual liquidity assessments, coupled with factors such as the large-scale maturity of interbank negotiable certificates of deposit (NCDs), leading to a higher demand for liquidity from financial institutions throughout the month. The PBOC's provision of medium-term funding support reflects its care for the market. "Building on the approximately 1 trillion yuan of long-term liquidity released through RRR cuts by the PBOC in May, the increase in outright reverse repo operations in June, continuing to boost medium-term liquidity injections, will help maintain ample liquidity in the banking system and control fluctuations in the funding market amid the continuous large-scale issuance of government bonds and the 'peak' period of interbank NCD maturities in recent months," an industry source told Caixin. PBOC Announces Second Round of Operations This Month, Continuing to Boost Medium-Term Liquidity Injections To maintain ample liquidity in the banking system, the PBOC first announced on June 5 and then conducted 1 trillion yuan of outright reverse repo operations on June 6. Just a week later, the PBOC announced its second round of operations today. Today, the PBOC announced that it will conduct 400 billion yuan of outright reverse repo operations on June 16 through fixed-quantity, interest-rate tendering, and multiple-price bidding, with a tenor of 6 months (182 days). Data shows that 500 billion yuan of 3-month and 700 billion yuan of 6-month outright reverse repos will mature in June, respectively, implying a net injection of 200 billion yuan of outright reverse repos by the PBOC for the entire month as of June 16. "Building on the approximately 1 trillion yuan of long-term liquidity released through RRR cuts by the PBOC in May, the increase in outright reverse repo operations in June, continuing to boost medium-term liquidity injections, will, on the one hand, help maintain ample liquidity in the banking system and control fluctuations in the funding market amid the continuous large-scale issuance of government bonds and the 'peak' period of interbank NCD maturities in recent months," Wang Qing, chief macro analyst at Dongfang Jincheng, told a Caixin reporter. Why did the PBOC choose to announce twice in June to manage market expectations? It may be related to June being a traditional critical period for liquidity management, with the funding market facing a "major test" amid multiple pressures. Haitong Asset Management pointed out that the concentrated impact of the peak maturity of interbank NCDs, with a total maturity of over 4 trillion yuan in June, has widened the short-term funding gap for banks. Meanwhile, financial institutions also need to cope with the "regular challenge" of quarter-end liquidity assessments, coupled with a surge in funding demand driven by the accelerated issuance of government bonds, further highlighting the supply-demand imbalance in the funding market. Everbright Securities Finance stated that, considering the seasonal trend, short-term funding rates in June have generally shown a pattern of "pulling back at the beginning of the month and rising in the latter part" in recent years. Given that the end of June coincides with semi-annual financial reports and assessments, liquidity management will be arranged in advance, and the pressure is not expected to last until the last two days of the month. "The intensity and pace of loan issuance squeezing the excess reserve ratio, thereby affecting the willingness of national banks to lend funds; it is estimated that the net financing scale of government bonds in June will still be around 1 trillion yuan, which may cause temporary disruptions; in addition, there will be a concentration of NCD maturities in late June, along with a surge in credit, making the MLF issuance volume worth watching," pointed out Wang Yifeng, Chief Analyst of Everbright Securities' Financial Industry. Wang Qing noted that this move also signals the continuous strengthening of quantitative monetary policy tools, which helps to promote the broadening of credit and enhance countercyclical regulation. "The disclosure of outright reverse repo operations from the end of the month to an earlier release indicates an increase in the transparency of monetary policy operations, which can more effectively guide and stabilize market expectations." In June, the maturity of negotiable certificates of deposit (NCDs) is expected to transition smoothly with no significant changes in volume or price. Looking ahead to June, the large amount of maturing NCDs is one of the main disruptive factors, but the market expects a smooth transition in terms of liquidity. Data shows that the expected maturity of NCDs in June will reach 4.2 trillion yuan, setting a record for the highest single-month figure. Among these, the early and mid-month periods are the concentrated maturity points, with about 920 billion yuan and 1.95 trillion yuan of NCDs due to mature, respectively. Wang Yifeng believes that under the current circumstances, the primary factor disrupting the interest rate on NCDs in June is the large volume of maturities, with 4.2 trillion yuan due to mature in the month, an increase of 1.7 trillion yuan compared to May, reaching a peak for monthly maturities in recent years, increasing the pressure on banks to roll over. However, there are offsetting factors that may result in the renewal volume of NCDs in June being less than the maturing volume. Although NCDs face significant maturity pressure in June, constrained by multiple factors, the overall volume and price levels are not expected to change significantly from previous levels. CITIC Securities Fixed Income Department stated that, looking ahead to June, the disturbance to liquidity from fiscal factors is expected to weaken marginally. Considering the high credit issuance scale typically seen in June due to the bank's semi-annual assessment, coupled with the potential pressure on the liability side after the implementation of a new round of deposit rate cuts, it may be difficult for the liquidity to achieve a spontaneous balance. It is anticipated that the central bank will further inject medium and long-term liquidity through outright reverse repo operations and MLF, and the overall liquidity in June is expected to maintain a balanced supply and demand pattern, with the DR007 interest rate center fluctuating at lows slightly above the policy rate level. "In the future, the central bank will also comprehensively utilize medium- and short-term liquidity management tools such as pledged reverse repo operations, Medium-term Lending Facility (MLF), and outright reverse repo operations to maintain abundant liquidity in the banking system. This is also a crucial step in enhancing the accessibility of credit for enterprises and residents and reducing financing costs for the real economy at present," said Wang Qing.

Every year, among the global central banks' event calendars, the Jackson Hole Economic Symposium hosted by the US Fed and the Sintra Forum (ECB Forum on Central Banking) hosted by the European Central Bank (ECB) have consistently been the two most closely watched events. However, few may be aware that in Japan, a similar high-profile central banking event is now held annually... On Tuesday, the two-day annual central banking conference, hosted by the Bank of Japan (BOJ) and its affiliated think tank, commenced at the BOJ headquarters in Tokyo. Despite lacking hiking trails and scenic countryside views, this central banking event is still hailed by industry insiders as Japan's version of the "Jackson Hole Economic Symposium." Participants include renowned scholars from the US, Europe, and Asia, along with officials from the US Fed, ECB, Bank of Canada, and Reserve Bank of Australia, including the Fed's third-in-command, John C. Williams, President of the Federal Reserve Bank of New York. Industry insiders suggest that this year's global central banking symposium in Tokyo may focus on two troubling realities: sluggish economic growth and persistent inflation. Although most speeches are academic in nature and closed to the media, the theme of this year's conference is "New Challenges for Monetary Policy," and these "new challenges" are undoubtedly well-known to insiders: How should central banks respond to stubbornly high inflation, downside economic risks, market volatility, and US tariffs... These conflicting headwinds are largely caused by the policies of US President Donald Trump, and the uncertainty of the outlook is putting many central banks in a difficult position, regardless of whether they are planning to raise or cut interest rates. For example, the BOJ, as the "host," is still insisting on continuing to raise interest rates and steadily scaling back its bond-buying program, which stands in stark contrast to other peers globally that are cutting interest rates. However, recent global developments have raised questions about such tightening measures. What will be discussed at this year's conference? At last year's conference, participants summarized the gains and losses of responding to economic recessions by discussing lessons learned from using various unconventional monetary easing tools. The conference also explored whether Japan—the "outlier" that maintained ultra-low interest rates while other major central banks aggressively raised rates—could emerge from decades of deflation and low inflation with the help of nascent and sustained wage growth. This year, although central bankers' concerns may primarily focus on tariff-induced economic recessions, the conference's agenda indicates that policymakers remain highly sensitive to the risk of falling into a prolonged period of excessively high inflation. According to the meeting agenda seen by industry insiders, one of the parallel sessions will focus on "reserve requirements, interest rate control, and quantitative tightening." Another session will discuss a paper published by the International Monetary Fund (IMF) in December last year titled "Monetary Policy and Inflation Scare." The paper explains how significant supply shocks, such as those caused by the COVID-19 pandemic, can lead to persistent inflation and warns that central banks may face risks if they believe cost-push price pressures can be ignored. "Better to be 'slow' than to 'make a mistake.'" This warning holds implications for major central banks currently facing similar dilemmas—a situation exacerbated by global trade wars and Trump's erratic trade policies. The US Fed was initially expected to implement multiple interest rate cuts this year, but as the risk of inflation rising due to Trump's tariffs intensifies, the Fed has been forced into a wait-and-see mode. Meanwhile, according to industry insiders' interactions with European Central Bank (ECB) policymakers, although the ECB is expected to cut interest rates again in June, the rationale for pausing action is strengthening as inflation challenges emerge. "Tariffs may curb inflation in the short term but pose upside risks in the medium term," Isabel Schnabel, an ECB Executive Board member and a prominent hawk, explicitly called for a pause in interest rate cuts at a conference at Stanford University on May 9. Meanwhile, Japan, currently in a tightening cycle, is also facing the challenge of balancing domestic inflationary pressures with the downside risks to economic growth posed by US tariffs. Trump's tariffs have forced the Bank of Japan (BOJ) to sharply lower its economic growth forecast on May 1 and hint at a pause in its interest rate hiking cycle—currently, the short-term interest rate remains at a low of 0.5%. Despite this, BOJ Governor Kazuo Ueda has signaled readiness to resume interest rate hikes if underlying inflation continues to stabilize toward the 2% target. Japan's core consumer inflation rate hit a two-year high of 3.5% in April, with food prices surging 7%, indicating the pressure rising living costs are placing on Japanese households. Nobuyasu Atago, a former BOJ official and now chief economist at Rakuten Securities Economic Research Institute, stated that it is evident that the BOJ has failed to fulfill its mission of price stability. Inflation will remain one of the BOJ's concerns, and the BOJ may already be lagging in addressing domestic price pressures. As of press time, Kazuo Ueda, Governor of the Bank of Japan, had delivered a keynote speech at the opening event of the annual meeting, stating that the degree of monetary easing would be adjusted as needed. The US dollar fell sharply against the Japanese yen by over 30 pips in the short term. Subsequently, Agustin Carstens, General Manager of the Bank for International Settlements, was also scheduled to deliver a speech, which investors should continue to monitor.

》[Live] Analysis of Macroeconomics, Power, Infrastructure, Real Estate, and PV Markets; Outlook on Copper and Aluminum Prices; Insights into Cable Technology Trends SMM, May 23: Metal Market: As of the midday close, domestic base metals generally fell. SHFE tin dropped by 0.62%, SHFE zinc remained flat at 22,250 yuan/mt, SHFE aluminum fell by 0.12%, and SHFE nickel dropped by 0.66%. SHFE lead rose by 0.3%, and SHFE copper fell by 0.1%. In addition, alumina fell by 1.98%, lithium carbonate dropped by 1.65%, silicon metal declined by 0.7%, and polysilicon rose by 1.11%. Most ferrous metals series fell, with iron ore dropping by 0.69% and HRC falling by 0.47%. Stainless steel rose slightly, while rebar fell by 0.36%. In terms of coking coal and coke: coking coal fell by 2.81%, and coke dropped by 1.28%. In the overseas metal market, as of 11:43 a.m., LME metals rose across the board. LME copper rose by 0.31%, LME aluminum increased by 0.37%, LME zinc gained 0.54%, LME nickel rose by 0.33%, LME tin increased by 0.38%, and LME lead rose by 0.51%. In precious metals, as of 11:43 a.m., COMEX gold rose by 0.09%, and COMEX silver increased by 0.17%. Domestically, SHFE gold fell by 0.77%, and SHFE silver dropped by 0.52%. As of the midday close, the most-traded contract for the European container shipping index rose by 3.02%, closing at 2,231.2 points. As of 11:43 a.m. on May 23, the midday futures market movements for some contracts were as follows: 》SMM Metal Spot Prices on May 23 Spot and Fundamentals Copper: In terms of inventory, according to SMM's domestic aluminum ingot inventory data, domestic aluminum ingot inventory stood at 557,000 mt on May 23, a destocking of 28,000 mt from Monday. In the short term, the lower arrival of goods in east China is conducive to the rise in premiums and discounts. Follow-up attention should be paid to changes in demand... 》Click for details Macro Front Domestic Aspect: [Ministry of Commerce: Online Sales of Digital Products Grew by 8.4% from January to April; Sales of Smart Robots and Smart Home Systems Rose by 87.6% and 16%, Respectively] The head of the E-commerce Department of the Ministry of Commerce introduced the development of China's e-commerce from January to April 2025. Digital consumption growth accelerated. According to monitoring by the Ministry of Commerce's big data, online sales of digital products increased by 8.4%, with sales of smart robots and smart home systems rising by 87.6% and 16%, respectively. Products under the trade-in policy grew rapidly, with online sales of 15 categories of home appliances and digital products increasing by 11.5%, among which three expanded categories of digital products, including mobile phones, grew by 18.5%. Service consumption led the growth. Driven by factors such as policy support, supply optimization, and holiday economy, the growth of key monitored online service consumption reached 12.1%, with online entertainment and online tourism increasing by 31.9% and 25.4%, respectively. [The central bank injected a net 36 billion yuan into the open market] The central bank conducted 142.5 billion yuan of 7-day reverse repo operations today, with an operating interest rate of 1.40%, unchanged from the previous rate. As 106.5 billion yuan of 7-day reverse repos matured today, a net injection of 36 billion yuan was achieved. ► On May 23, the central parity rate of the RMB against the US dollar in the interbank foreign exchange market was 7.1919 yuan per US dollar. US dollar: As of 11:43, the US dollar index fell by 0.28% to 99.66. Concerns over the deterioration of the US fiscal outlook intensified, leading to a weakening of the US dollar. Tim Baker, an analyst at Deutsche Bank, believes that the market's reaction to rising US fiscal uncertainty may harm the US dollar more than US Treasuries. He stated that when bond prices fall and yields rise sufficiently, domestic investors will buy bonds. However, foreign investors deterred by the expanding US budget deficit will continue to sell the US dollar. Baker said, "As US domestic investors rotate out of the stock market, US Treasuries may eventually receive some support, but the withdrawal of foreign investors will still be negative for the US dollar." (Huitong Finance) Other currencies: Japan's core inflation surged to 3.5% YoY in April, the fastest pace in two years, sparking market expectations of a rate hike by the Bank of Japan. Meanwhile, the persistent expansion of the fiscal deficit has raised concerns among investors about the sustainability of government debt, leading to a surge in yields on 20-year and longer-dated Japanese government bonds to historic highs this week, challenging the market's ability to absorb long-term debt. (Huitong Finance) Macro: Today, data including the revised quarter-on-quarter seasonally adjusted GDP growth rate for Germany in Q1, the revised year-on-year non-seasonally adjusted GDP growth rate for Germany in Q1, the month-on-month seasonally adjusted retail sales growth rate for the UK in April, the month-on-month seasonally adjusted core retail sales growth rate for the UK in April, the revised month-on-month building permits growth rate for the US in April, the revised annualized total building permits for the US in April, the month-on-month retail sales growth rate for Canada in March, the month-on-month core retail sales growth rate for Canada in March, and the annualized total seasonally adjusted new home sales for the US in April will be released. In addition, it is worth noting that: John C. Williams, permanent voting member of the FOMC and President of the Federal Reserve Bank of New York, will deliver a keynote speech at a seminar on monetary policy implementation; James Bullard, 2025 FOMC voting member and President of the Federal Reserve Bank of St. Louis, and Esther George, President of the Federal Reserve Bank of Kansas City, will participate in a fireside chat in Northwest Arkansas hosted by the Federal Reserve Bank of St. Louis to discuss the economy and monetary policy. Crude oil: As of 11:43, crude oil futures all declined, with US crude oil falling by 0.62% and Brent crude oil falling by 0.57%. OPEC may further increase crude oil production, putting pressure on oil prices. It is reported that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, forming the OPEC+ alliance, are discussing whether to significantly increase production again at their meeting on June 1. Delegates attending the meeting said that a 411,000 barrel-per-day increase in July is one of the options under discussion, but no final agreement has been reached. The significant accumulation of US crude oil is also putting pressure on oil prices. According to data from The Tank Tiger, a storage broker, US crude oil storage demand has surged in recent weeks to levels comparable to those during the COVID-19 pandemic, as traders prepare for a significant increase in supply from OPEC and its allies in the coming months. On Friday, the market will focus on data from Baker Hughes on the number of US oil and natural gas drilling rigs, which is seen as an indicator of future supply trends. (Webstock Inc.) Spot Market Overview: ► SMM: Easing of Sino-US Tariffs, Fundamentals Supporting the Market, Copper and Aluminum Prices Expected to Fluctuate Upward [SMM Cable Conference] ► Inventory Hits Recent Low, Suppliers Actively Refuse to Budge on Prices [SMM South China Spot Copper] ► [SMM Nickel Midday Review] Nickel Prices Continue to Weaken on May 23, PBOC Conducts 500 Billion Yuan MLF Operation ► Silver Bottoms Out and Rebounds, Market Focuses on Inflation and Geopolitical Risk Aversion [SMM Weekly Silver Market Review] Midday reviews of other metal spot prices will be updated later. Please refresh to view~

》[Live] Research and Analysis on Macroeconomy, Electric Power, Infrastructure, Real Estate, and PV Markets; Outlook on Copper and Aluminum Prices; Insights into Cable Technology Trends SMM, May 23: Metal Market: Overnight, most of the domestic base metals market fell, with SHFE tin down 0.59%, SHFE copper down 0.12%, SHFE nickel down 0.48%, SHFE lead down 0.51%, SHFE aluminum down 0.17%, and SHFE zinc up 0.22%. In addition, the most-traded alumina futures fell 1.08%. Overnight, the ferrous metals series showed mixed performance, with iron ore slightly down, stainless steel slightly up 0.04%, rebar flat at 3,059 yuan/mt, and HRC slightly down. In terms of coking coal and coke: coking coal fell 1.2%, and coke rose 0.35%. Overnight, LME base metals nearly fell across the board, with LME copper down 0.15%, LME aluminum down 0.61%, LME lead down 0.51%, LME zinc up 0.43%, LME tin down 1.29%, and LME nickel down 0.72%. Overnight, precious metals: COMEX gold fell 0.56%, and COMEX silver fell 1.39%. Overnight, SHFE gold fell 0.71%, and SHFE silver fell 0.52%. As of 8:22 a.m. on May 23, overnight closing prices 》Click to view SMM Futures Data Dashboard Macro Front Domestic: [Latest Statements from the Ministry of Science and Technology, the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission Signal Important Developments] At 3 p.m. on the 22nd, the State Council Information Office held a press conference, where Qiu Yong, Vice Minister of the Ministry of Science and Technology, Zhu Hexin, Deputy Governor of the People's Bank of China and Director of the State Administration of Foreign Exchange, and other relevant officials introduced the situation regarding science and technology finance policies and answered questions from reporters. Zhu Hexin, Deputy Governor of the People's Bank of China, stated that the "Science and Technology Board" in the bond market will primarily support top-tier equity investment institutions with strong rankings and rich investment experience in issuing bonds. Qiu Yong, Vice Minister of the Ministry of Science and Technology, stated that the Ministry of Science and Technology will fully leverage its role as the leading department, further refine the task assignments for constructing the science and technology finance system, and promote the implementation of policy measures. Guo Wuping, spokesperson for the National Financial Regulatory Administration and Director of the Policy Research Department, stated that the initial pilot scale for the long-term investment reform pilot of insurance funds is 50 billion yuan, the second pilot is 112 billion yuan, and the third pilot of 60 billion yuan will be approved soon, bringing the total scale to 222 billion yuan. Yan Bojin, Chief Risk Officer of the China Securities Regulatory Commission and Director of the Issuance Supervision Department, stated that in response to the characteristics of technology enterprises, the CSRC has streamlined and optimized listing conditions, continuously enhancing the technological content of newly listed companies. The number of listed companies in strategic emerging industries on the Shanghai, Shenzhen, and Beijing Stock Exchanges has approached 2,000, with a market capitalization ratio of nearly 40%. 》Click to view details [PBOC: Conducted RMB 500 billion MLF Operation on May 23 with a One-Year Tenor] The People's Bank of China (PBOC) announced that, to maintain ample liquidity in the banking system, it would conduct a Medium-term Lending Facility (MLF) operation of RMB 500 billion on May 23, 2025 (Friday), with a one-year tenor, through fixed-quantity, interest-rate tendering, and multiple-price bidding. US Dollar Aspect: The overnight US dollar index rose by 0.33% to close at 99.94. The US House of Representatives passed President Trump's massive tax and spending cut bill. Bond vigilantes continued to monitor the global bond market, with the US House narrowly passing President Trump's "big and beautiful" tax cut bill by a single vote. According to the nonpartisan Congressional Budget Office, this would increase federal government debt by approximately $3.8 trillion over the next decade. Currently, US government debt stands at $36.2 trillion. US corporate activity rebounded in May, but the US's across-the-board tariffs have made imported goods more expensive for businesses and consumers. The S&P Global US Composite PMI, which tracks the manufacturing and services sectors, rose to 52.1 in May from 50.6 in April. A reading above 50 indicates expansion in the private sector. The number of initial jobless claims in the US fell last week, and the labour market remained stable, providing some support to the US dollar. The US weekly report also showed that the number of unemployed Americans was close to the level at the end of 2021. In the week ending May 17, the number of Americans filing initial claims for state unemployment benefits fell by 2,000 to a seasonally adjusted 227,000. Economists surveyed had expected 230,000 claims. Other Currencies Aspect: The Eurozone Composite Purchasing Managers' Index (PMI) fell to 49.5 in May from 50.4 in April, suggesting that economic activity may be stalling again. Bert Colijn, an economist at ING, pointed out that the impact of trade conflicts on the economy is more reflected in uncertainty than in direct shocks. The data only showed a slight decline in new overseas orders, while manufacturing output even increased. The services sector was the main reason for this economic slowdown, having previously been the main driver of Eurozone economic growth. Colijn stated that the Eurozone's economic activity still faces downside risks in the short term, as trade conflicts may further escalate. (Huitong Finance) Data Aspect: Today, data such as the UK's May GfK Consumer Confidence Index, Japan's April National CPI Year-on-Year Rate, Japan's April National Core CPI Year-on-Year Rate, Germany's Q1 Seasonally Adjusted Quarterly GDP Growth Rate Revised Value, Germany's Q1 Unadjusted Quarterly GDP Year-on-Year Growth Rate Revised Value, the UK's April Seasonally Adjusted Monthly Retail Sales Growth Rate, the UK's April Seasonally Adjusted Monthly Core Retail Sales Growth Rate, the US's April Monthly Building Permits Growth Rate Revised Value, the US's April Annualized Total Building Permits Revised Value, Canada's March Monthly Retail Sales Growth Rate, Canada's March Monthly Core Retail Sales Growth Rate, and the US's April Annualized Total Seasonally Adjusted New Home Sales will be released. In addition, it is noteworthy that: FOMC permanent voting member and President of the Federal Reserve Bank of New York, John C. Williams, delivered a keynote speech at the Monetary Policy Implementation Seminar; FOMC voting members for 2025, President of the Federal Reserve Bank of St. Louis, Alberto G. Musalem, and President of the Federal Reserve Bank of Kansas City, Esther L. George, participated in a fireside chat event in Northwest Arkansas hosted by the Federal Reserve Bank of St. Louis to discuss the economy and monetary policy. Crude Oil: Both WTI and Brent crude oil futures rose slightly, with WTI down 1.23% and Brent down 1.36%. The market is paying attention to reports that OPEC is discussing increasing production in July, which has sparked concerns that global supply growth may outpace demand growth. It is reported that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, forming the OPEC+ alliance, are discussing whether to significantly increase production again at their meeting on June 1. Delegates attending the meeting said that increasing production by 411,000 barrels per day in July is one of the options under discussion, but no final agreement has been reached. Data released by the US Energy Information Administration (EIA) on Wednesday showed an unexpected increase in US crude oil and refined product inventories last week, causing oil prices to fall during the trading session. The EIA stated that US crude oil inventories increased by 1.3 million barrels to 443.2 million barrels in the week ending May 16. Analysts surveyed had previously expected inventories to decrease by 1.3 million barrels. (Webstock Inc.)

At the CLNB 2025 (10th) New Energy Industry Chain Expo - Battery Materials Forum hosted by SMM Information & Technology Co., Ltd. (SMM), Chen Bolin, SMM cathode material analyst, shared insights on the topic "2025 China LFP Cathode Material Industry Trends and Supply-Demand Pattern Changes."

Around March 20, the import and export data of cobalt and lithium battery industry chain related products for January-February 2025 were released. The data showed that China's spodumene imports totaled 1.16 million mt in physical weight, equivalent to 95,000 mt LCE. In January-February 2025, China imported 32,450 mt of lithium carbonate, mostly from Chile. SMM integrated the import and export situation of battery materials as follows: Upstream Lithium Concentrate According to customs data, China's spodumene imports totaled 1.16 million mt in physical weight in January-February 2025, equivalent to 95,000 mt LCE. Specifically, lithium ore imports in January were 590,000 mt, with 341,500 mt (58%) from Australia, 101,000 mt (17%) from South Africa, and 54,000 mt (9%) from Zimbabwe. In February, lithium ore imports were 567,000 mt, with 232,000 mt (41%) from Australia, down 32% MoM; 150,000 mt (26%) from South Africa, up 49% MoM; and 97,000 mt (17%) from Zimbabwe, up 80% MoM. Data source: China Customs, SMM processed data based on public information. Note: Customs data may not fully accurately count the actual spodumene concentrate imports for the month, and some data are only reported in the general direction of import volume. [SMM Analysis] China's spodumene imports totaled 1.16 million mt in physical weight in January-February 2025, with spodumene concentrate accounting for about 76%. Returning to the current lithium ore market, on the spodumene side, SMM learned that at the beginning of this week, the spot and futures prices of lithium carbonate showed a significant downward trend due to macro policy impacts. Affected by this, overseas spodumene mines have a clear attitude to stand firm on quotes, with relatively small price reductions and even a tendency to hold prices. Domestic spot traders are mostly in a wait-and-see attitude, and market transactions are relatively sluggish. As of April 8, the spodumene concentrate (CIF China) index was $812/mt, down $32/mt from $844/mt on March 7, a drop of 3.79%. Click to view SMM new energy product spot quotes. On the lepidolite side, demanders' willingness to purchase higher-priced lithium ore has shifted downward, showing a wait-and-see attitude in the market, with overall transactions being mediocre. Lithium Carbonate According to customs data, China imported 32,450 mt of lithium carbonate in January-February 2025. Specifically, 20,197 mt (62%) were imported from Chile and 11,086 mt (34%) from Argentina. China exported 816 mt of lithium carbonate in January-February 2025. Returning to the current lithium carbonate price, SMM spot quotes showed that as of April 8, the average spot price of battery-grade lithium carbonate was 70,800-74,000 yuan/mt, with an average of 72,400 yuan/mt, down 2,650 yuan/mt from 75,050 yuan/mt on March 7, a drop of 3.53%. Click to view SMM new energy product spot quotes. Reviewing the lithium carbonate supply-demand pattern in March, after the traditional off-season in February, both supply and demand for lithium carbonate rebounded significantly in March. With the continuous ramp-up of some lithium carbonate production lines, domestic lithium carbonate production reached a historical high in March, up 23% MoM, approaching the 80,000 mt mark. The surplus pattern of lithium carbonate further intensified, dragging down the spot price of lithium carbonate. Returning to the present, SMM learned that today's macro sentiment dragged down the spot price of lithium carbonate significantly. Market transactions increased slightly but have not yet reached an active level. Downstream material plants are considering future price trends and currently maintain a wait-and-see attitude. Upstream lithium chemical plants still have a firm attitude on quotes, with few transactions. Considering the subsequent supply-demand situation, the significant surplus pattern is difficult to reverse, and the spot price of lithium carbonate is expected to continue to decline. Lithium Hydroxide [China's lithium hydroxide exports hit a new low in January-February 2025, totaling 7,545 mt, with imports totaling 2,380 mt] According to customs data, China exported 7,545 mt of lithium hydroxide in January-February 2025, with 5,064 mt (67%) exported to South Korea and 1,983 mt (26%) to Japan. Imports totaled 2,380 mt, with 1,305 mt (55%) from Australia and 259 mt (11%) from Argentina. Battery Materials LFP According to the latest customs data, China's LFP exports in January 2025 reached a record high of 1,221 mt, up 34% MoM and 916% YoY. In terms of price, the average export price of LFP in December 2024 was $6,088/mt, down $2/mt from December. In January 2025, Guangxi Zhuang Autonomous Region remained the top province for LFP exports - 876 mt, all exported to Vietnam; Jiangsu ranked second - 150 mt, and Anhui ranked third - 131 mt. In terms of export destinations, Vietnam remained the top country, with 876 mt (71.7%) of LFP exported to Vietnam; Taiwan, China ranked second, with 147 mt exported; the US ranked third, with 138.7 mt exported. Other destinations included South Korea and France. Click to view SMM new energy product spot quotes. [SMM Analysis] China's LFP exports surged in January! Ternary Precursor In February 2025, China's ternary precursor exports were 7,773 mt, down 17% MoM and 57% YoY. From March 2024 to February 2025, China's cumulative ternary precursor exports (including NCM, NCA, nickel oxides, and NC) were 162,854 mt, down 34% YoY. In February, overall ternary precursor exports decreased compared to January, with NCM, NCA, and nickel oxides and NC exports weakening to varying degrees. Nickel oxides and NC exports in February were 2,243 mt, down 18% MoM and 64% YoY. NCA exports in February were 0 mt. NCM exports in February were 5,530 mt, down 15% MoM and 52% YoY. [SMM Analysis] Analysis of ternary precursor exports in February. Artificial Graphite In February 2025, China's artificial graphite imports were 4,607 mt, up 440% MoM and 325% YoY. The average import price was 17,933 yuan/mt, down 74% MoM and 77% YoY. Exports were 21,389 mt, down 57% MoM and 50% YoY. The average export price was 16,469 yuan/mt, down 95% MoM and up 33% YoY. In February, imports surged nearly five times. SMM learned that this surge was mainly due to Chinese anode material plants establishing and starting production overseas. Exports were affected by the start of production at overseas plants of Chinese anode material plants and the Chinese New Year holiday. Click to view details. [SMM Analysis] China's artificial graphite imports increased in February. In January 2025, China's artificial graphite imports were 853 mt, up 2% MoM and down 37% YoY. The average import price was 69,510 yuan/mt, up 469% MoM and 2% YoY. On the import side, due to pre-holiday stockpiling by battery cell manufacturers, artificial graphite imports in January increased by 2%. Domestic artificial graphite has advantages in price and specifications, and domestic capacity is relatively sufficient, so battery cell manufacturers still mainly use domestic artificial graphite, leading to a 37% YoY decline in imports in January. On the export side, in January, as the Chinese New Year holiday approached, domestic artificial graphite production decreased. Click to view details. [SMM Analysis] Logistics disruptions led to a decline in artificial graphite exports in January. LiPF6 According to Chinese customs data, China's cumulative LiPF6 exports in January 2025 were 2,430 mt, up 13.5% MoM. In February, cumulative exports were 1,486 mt, down 38.8% MoM. In January, cumulative imports were 0.002 mt, and in February, cumulative imports were 8.134 mt. Overall, foreign lithium battery manufacturers increased raw material procurement in January, and overseas demand for lithium batteries grew slightly. In February, foreign lithium battery product demand was affected by the Chinese New Year holiday, leading to a decline in demand. [SMM Data] LiPF6 import and export data for January-February 2025. Cobalt Cobalt Hydrometallurgy Intermediate Products According to customs data, China's cobalt hydrometallurgy intermediate product imports in February 2025 were approximately 14,800 mt in metal content (converted at 35% grade), down 19.2% MoM and 4.9% YoY. The average import price was $12,629/mt (metal content), down 9% YoY. By country, the DRC remained the main import source, with imports of approximately 14,700 mt in metal content (converted at 35% grade) and an average import price of $12,640/mt (metal content). [SMM Analysis] China's cobalt hydrometallurgy intermediate product imports declined MoM in February. Unwrought Cobalt In February 2025, China's unwrought cobalt imports were approximately 475.1 mt in metal content, down 4.7% MoM and up 111.2% YoY. The average import price was $21,598/mt (metal content). Cumulative imports in January-February 2025 were 973.9 mt in metal content, up 163% YoY. Exports were approximately 452.3 mt in metal content, down 70% MoM and up 54.2% YoY. The average export price was $22,230/mt (metal content). Cumulative exports in January-February 2025 were 1,958.1 mt in metal content, up 19.1% YoY. [SMM Analysis] China's unwrought cobalt imports decreased 4.7% MoM in February 2025.

In February 2025, China's exports of ternary cathode precursor were 7,773 mt, down 16% MoM and 57% YoY. From March 2024 to February 2025, the cumulative exports of ternary cathode precursor (including NCM, NCA, nickel oxides, and NC) from China were 162,854 mt, with a cumulative YoY decline of 34%.