According to Bloomberg, the UK government defended its decision to hike out-of-quota steel import tariffs from 25% to 50% and slash import quotas by 60%, effective July 1. Trade Minister Chris Bryant argued the measures are crucial to shield the ailing domestic steel industry from "artificially low prices" driven by cheap imports, especially from China, and global tariff wars. Prime Minister Keir Starmer's administration insists these targeted protections are vital for maintaining a level playing field. Without such interventions, the UK risks losing thousands of jobs and becoming the only G7 nation without primary steel-making capabilities, following last year's state intervention to rescue British Steel.

The United Kingdom government officially launched a new national Steel Strategy on March 19, 2026, aimed at domesticating 50% of the nation's steel consumption, up from the current 30%. As part of this robust trade defense, the UK will reduce tariff-free import quotas by 60% effective July 1, 2026, while raising the maximum Most Favored Nation (MFN) tariff to 50% for imports exceeding these limits. This move is designed to shield the domestic industry—currently transitioning from traditional blast furnaces to electric arc furnaces (EAF)—from global overcapacity and extreme subsidies.

【SMM Steel】The Middle East conflict is disrupting shipping routes, causing longer delivery times and higher costs for EU steel imports. Buyers expect cargoes to reroute via the Cape of Good Hope, adding 2-4 weeks and raising freight costs. Uncertainty is limiting orders. The delays come as the EU plans tighter import quotas from July 2026. Higher energy and freight costs may push up steel prices.

Expert Gracelin Baskaran is urging western allies to form a coordinated “anchor market” to counter China’s dominance in critical minerals.

After falling to a low slightly above $3,100 last week, international gold prices staged another strong rebound this week amid escalating geopolitical tensions in the Middle East and the impact of Moody's downgrade of the US's Aaa sovereign credit rating, with overnight prices rebounding above the 3,300 integer mark once again. In response, Adam Gillard, an FICC analyst at Goldman Sachs, believes there is a clear logical support behind this trend: the buying power from China is returning once again. Specifically, gold buying initiated in the Chinese domestic market during the night session of the Shanghai Futures Exchange (SHFE) triggered a follow-up rally in the New York Mercantile Exchange (COMEX) market. The total open interest in COMEX increased by 3% (4% for silver), while the arbitrage spread between the two major markets, SHFE/CMX, widened significantly. Gillard particularly emphasized that despite gold prices having pulled back 8% from their highs, what impressed him was that the scale of gold holdings in China remained stable at a high level. This indicated that, unlike the typical behavior pattern of domestic momentum traders who tend to rush to buy amid continuous price rise and sell amid continuous price decline, the pullback in gold prices did not trigger a massive wave of selling. As shown in the chart below, the open interest in gold futures on the SHFE is now returning to high levels, having once again reached the highest level since Q4 2019. Meanwhile, the overall gold holdings in the Chinese market (ETF + Shanghai Gold Exchange + SHFE) also remain high. Note: Light blue represents gold prices, and dark blue represents overall gold holdings. Previously, Chinese customs data released on Tuesday showed that China's total gold imports last month reached 127.5 mt, hitting an 11-month high. Despite gold prices hitting record highs in April, touching $3,500 per ounce at one point, this import figure still surged 73% from March. Some institutions have suggested that the central bank's move to allocate new import quotas to some commercial banks in April may have been a key factor driving the surge in imports. In response, Goldman Sachs pointed out that China's gold imports (excluding central bank purchases) rebounded to a one-year high in April, likely related to arbitrage activities triggered by the pricing advantage of the Shanghai Gold Exchange over the London Bullion Market Association (LBMA). It is worth noting that despite gold prices remaining high overall, physical gold demand remains strong. This also explains, to some extent, why the premium level of gold prices on the Shanghai Gold Exchange has remained resilient—even as the precious metals market is currently facing a high-price environment. Note: Premium of gold prices on the Shanghai Gold Exchange. In fact, when gold prices surged last month, many market participants noticed the leading role of the Chinese market in the gold bull market. Goldman Sachs said at the time that the new highs and sharp corrections in gold prices over the past month "almost all occurred around the opening of the Chinese market" , and pointed out that the impact of capital flows through the Shanghai Gold Exchange and the Shanghai Futures Exchange on gold price trends was more significant than that of futures and options on the US New York Mercantile Exchange.

[Indian Government: Has Provided Separate Import Quotas for ICE and EV Vehicles to the UK Under Trade Agreement] An Indian government official stated that India has provided separate import quotas for internal combustion engine (ICE) and electric vehicle (EV) vehicles to the UK under a trade agreement. Tariffs on ICE and EV vehicles will be reduced in phases. The free trade agreement with the UK is expected to be signed in three months. (Financial Link) [India-US Tariff Negotiations: India Proposes "Zero-for-Zero" Tariff Arrangement] Informed sources revealed that during trade negotiations with the US, India proposed a "zero-for-zero" tariff arrangement for specific goods, including steel, auto parts, and pharmaceuticals. However, the proposal is based on the principle of reciprocity and is limited to a certain quantity of imported goods. Washington has expressed concerns about India's quality control orders, viewing them as non-tariff trade barriers to its exports. The US's so-called "reciprocal tariff" of 26% on India has been shelved, but the baseline tariff of 10% remains in effect. Reports indicate that imports of industrial products exceeding a certain quantity threshold will be subject to regular tariff rates. (Financial Link) [EU: Plans to Impose Tariffs on US Goods Worth €95 Billion if Negotiations Fail] The European Commission has launched a public consultation on possible countermeasures in response to US tariffs. The European Commission stated that if negotiations fail, it plans to impose tariff measures on US goods worth €95 billion. The tariff proposal includes aircraft, automobiles, and bourbon whiskey, as well as meat, fish, and agricultural products. The EU is considering imposing export restrictions on the US for scrap metal and chemicals worth €4.4 billion. The EU will initiate a dispute settlement procedure against the US at the WTO regarding automobiles and reciprocal tariffs. The European Commission stated that it will continue to prioritize seeking mutually beneficial and balanced solutions with the US. [Chinese Research Team Develops New Monitoring Technology to Safeguard the "Health" of Lithium-Ion Batteries] A team led by Professor Tingrui Pan and Researcher Yu Chang from the Suzhou Institute for Advanced Study of the University of Science and Technology of China, in collaboration with a team led by Professor Peng Tan from the University of Science and Technology of China and a team led by Professor Yongbing Tang and Researcher Fan Zhang from the Shenzhen Institute of Advanced Technology of the Chinese Academy of Sciences, has developed a long-lasting and stable in-situ expansion force monitoring technology for lithium-ion batteries. Relevant research results were recently published in National Science Review. Lithium-ion batteries have become the core of electric vehicles and energy storage systems due to their high energy density and long cycle life. However, issues such as lithium dendrite growth and solid electrolyte interphase (SEI) film growth threaten the safety and service life of batteries. In response to this challenge, the research team has developed a new in-situ monitoring technology based on integrated iontronic sensing technology. This technology utilizes the battery's own electrolyte and materials to construct a sensing interface, enabling high-precision pressure monitoring without additional encapsulation.This structure is not only highly compatible with battery materials but also addresses the stability challenges of traditional flexible pressure sensors in corrosive environments. Experiments have shown that the integrated iontronic sensing technology can operate stably within a battery for over one month, capturing the irreversible deposition of lithium dendrites through changes in the asymmetry and peak values of the pressure curve. Researchers have introduced that this technology opens up new avenues for the design of smart batteries, with its low cost, high precision, and long lifespan making it particularly suitable for vehicle battery management systems. (CCTV News) [Geely and DP Technology Usher in an Era of "Targeted Drug-Level Precision Regulation" for Battery Safety, Becoming One of the First Automakers to Pass New National Standards for Battery Safety] Recently, DP Technology and Geely Auto announced the establishment of a joint "New Energy + AI" laboratory. Both parties have introduced the "AI + Molecular Simulation" technology system from the biomedical field into the R&D of power batteries for the first time, marking the official entry of global power battery technology into a new phase of "atomic-level precision R&D." It is also understood that Geely Auto obtained the GB 38031-2025 "Safety Requirements for Traction Batteries in Electric Vehicles" test report on May 8, becoming one of the first domestic enterprises to pass the new national standards for battery safety. The test report was issued by the authoritative third-party testing institution, CATARC Automotive Test Center. Relying on its unique Shendun Battery Safety System, Geely passed all new national standard safety verifications in one go, fully reflecting its consistent safety philosophy. (Cailian Press) [Minister of Commerce Wang Wentao: Sales from Trade-in Programs for Consumer Goods Exceeded 1.3 Trillion Yuan in 2024, and Will Be Expanded and Intensified in 2025] The magazine Qizhi recently published an article titled "Vigorously Boosting Consumption, Expanding Domestic Demand in All Aspects, and Promoting Sustained Economic Rebound" by Wang Wentao, Secretary of the Party Leadership Group and Minister of the Ministry of Commerce. The article points out that upgrading commodity consumption is crucial for stabilizing the overall consumption market. With its large scale and strong driving force, stabilizing the basic consumption market requires first and foremost focusing on commodity consumption, which serves as the "linchpin." Currently, the main challenge facing commodity consumption is insufficient effective demand. We will explore multiple approaches from the demand side to tap into the potential for upgrading commodity consumption. We will intensify and expand the scope of trade-in programs for consumer goods. In 2024, sales from trade-in programs for consumer goods exceeded 1.3 trillion yuan, effectively boosting consumption recovery. In 2025, we will build on this momentum and further expand and intensify these efforts. In terms of intensification, the support funds from ultra-long-term special national bonds will be increased to 300 billion yuan, doubling the amount from the previous year. In terms of expansion, for the first time, subsidies will be introduced for the purchase of new digital products such as mobile phones, and the categories of home appliances eligible for trade-in subsidies will be expanded from "8+N" to "12+N." Additionally, the scope of vehicles eligible for scrappage and renewal under the program will be appropriately broadened. We will also improve the subsidy application process to enable consumers to enjoy policy incentives more quickly and conveniently.Launch pilot work on reforming automobile circulation and consumption. Support local governments in actively exploring and taking the lead in eliminating restrictive measures on automobile consumption and developing the automotive aftermarket, accelerating the release of consumption potential across all links in the entire chain of automobile purchase and use. Promote the consumption of high-quality foreign trade products. Organize the "China Tour for High-Quality Foreign Trade Products" campaign to expand online and offline channels and facilitate greater entry of high-quality foreign trade products into the domestic market. Advance the consumption of trendy domestic products. Continuously promote the innovative development of time-honored brands, host a series of featured events under the "Time-Honored Brand Carnival" initiative, and create growth points for the consumption of trendy domestic products. (Cailian Press) Related Reading: In Q1, lithium carbonate prices fell by over 25% YoY, with miners experiencing mixed performance. When will lithium prices rise? [SMM Special Report] [SMM Analysis] In April 2025, SMM's total domestic lithium carbonate production fell by 7% MoM but increased by 40% YoY. Salt Lake Potash's net profit in Q1 increased by over 22% YoY. By 2030, it aims to achieve an annual lithium chemicals production capacity of 200,000 mt. On the first trading day after the holiday, the automotive parts sector saw a surge in "limit-up" stocks, with Jingjin Electric achieving three consecutive daily limit-ups. The market performed well during the holiday. [Hot Stocks] [SMM Analysis] The spot price of refined cobalt strengthened. [SMM Analysis] The spot price of cobalt intermediate products rose. [SMM Analysis] The economic viability of refined cobalt production declined, with April's refined cobalt production falling MoM. [SMM Analysis] In April, lithium hydroxide production remained relatively stable but slightly weak MoM, with expectations for May being basically flat. [SMM Analysis] In April, the production of ternary cathode precursors increased by 0.36% MoM. [SMM Analysis] In April, the production of ternary cathode materials increased by 7.38% MoM. [SMM Analysis] Between advancement and retreat: The pragmatic compromise of the US automotive tariff compensation policy and the challenges of global industry chain restructuring. [SMM Analysis] In April, the iron phosphate market remained stable, with enterprises facing pressure and struggling to raise prices. Lithium: Driving the Green Revolution. Analyzing how the industry chain is reshaping the future of energy. [SMM Popular Science] [SMM Analysis] Driven by the demand in the LCO market, the production of Co3O4 increased significantly MoM in April. [SMM Special Report] In Q1, the automobile industry achieved double-digit growth in both production and sales. Under the shadow of tariffs, what are the expectations for Q2? SMM: Global ESS market demand may reach around 470 GWh by 2030. How will various markets perform? [SMM Special Report] In March, import and export data for battery materials were released. Imports of spodumene and lithium carbonate showed one decrease and one increase MoM. How did they perform? [Weekly Observation] Spot quotes for refined cobalt continue to rise. High raw material costs have led some smelters to cut production. The price of this cobalt salt may remain firm.

【5.9 Lithium Battery News】 ►Indian Government: Has Provided Separate Import Quotas for ICE Vehicles and EVs to the UK Under Trade Agreements ►India-US Tariff Negotiations: India Proposes "Zero for Zero" ►EU: Plans to Impose Tariffs on US Goods Worth €95 Billion if Negotiations Fail ►China's Scientific Research Team Develops New Monitoring Technology to Safeguard the "Health" of Lithium-ion Batteries ►Minister of Commerce Wang Wentao: Sales of Consumer Goods Through Trade-in Policies Exceeded 1.3 Trillion Yuan in 2024; in 2025, We Will Build on This Momentum and Expand the Scope and Intensity

This week, the ferrous metals series fluctuated downward. In terms of news, at the beginning of the week, the State Council Information Office held a press conference to introduce the national economic operation for January-February 2025, during which it was reported that the new construction area of houses reached 66.14 million m², a decrease of 29.6%...

[SMM Morning Meeting Summary: Bulls Exit, LME Zinc Fluctuates Downward] Overnight, LME zinc recorded three consecutive bearish candlesticks, with the center of the daily candlestick shifting downward. The 20-day daily average provided support below. The US Fed's overnight interest rate meeting maintained the status quo as expected, while the US dollar index jumped initially and then pulled back. Coupled with the exit of bullish funds, LME zinc fluctuated downward.

The EU Plans to Reduce Steel Imports by 15% Starting April 1.