SMM Cobalt Morning Meeting Summary: This week, the spot price of refined cobalt maintained a fluctuating trend. On the supply side, due to the slightly lower economic efficiency of refined cobalt production, the operating rate of smelters remained low, resulting in a slight decline in the supply of refined cobalt. On the demand side, influenced by the policy-related news from the DRC, some smelters and traders reported an increased willingness of downstream producers to inquire about prices. However, currently, most buyers and sellers are still in the negotiation stage, and overall market transactions remain weak. It is expected that before the official implementation of the policy, the spot price of refined cobalt will likely continue to fluctuate.

[SMM Weekly Aluminum Price Review: Social Inventory Drawdown Exceeds Expectations, Aluminum Prices and Spot Premiums Supported at High Levels] Overall, on the macro side, the domestic favorable atmosphere remains unchanged, while uncertainties persist in overseas macro conditions. On the fundamental side, the unexpected drawdown in domestic aluminum ingot inventory has provided support for aluminum prices and spot premiums. Currently, some industries are expected to weaken during the off-season, but the overall decline is better than anticipated, with demand resilience remaining. Subsequent focus should be on changes in inventory and demand. Next week, the most-traded SHFE aluminum contract is expected to trade around 20,000-20,500 yuan/mt, while LME aluminum is expected to trade around $2,430-2,490/mt.

[Minutes of the Morning Meeting on May 28] Supply side, some nickel salt smelters maintained stable quotes, while others raised their quote coefficients due to increased demand and limited raw material inventory. Looking ahead, next week is a traditional procurement period. Considering factors such as the market demand recovery in June and the cost support for nickel salts, it is expected that nickel salt prices will rise next week.

[SMM Lead Morning Meeting Summary: Domestic and Overseas Lead Ingot Inventories Build Up Simultaneously, Center of Lead Price Movement Shifts Downward] From January to April, profits of industrial enterprises above designated size in China continued to rebound, with a year-on-year increase of 1.4%, 0.6 percentage points faster than that from January to March. Recently, domestic and overseas lead ingot inventories have gradually built up. In particular, new capacity of secondary lead enterprises in the domestic market has been put into operation, and supply has shown a steady upward trend. On the one hand, the increase in supply may raise the risk of inventory buildup for lead ingots...

SMM, May 27: Metal Market: As of the midday close, domestic base metals generally fell, with SHFE lead and SHFE copper slightly declining. SHFE tin rose slightly, SHFE zinc increased by 0.47%, SHFE aluminum decreased by 0.6%, and SHFE nickel fell by 0.37%. In addition, alumina dropped by 2.51%. Lithium carbonate rose by 0.5%, silicon metal fell by 2.72%, and polysilicon increased by 0.41%. The ferrous metals series all fell, with iron ore declining by 2.18% and HRC falling by 1.46%. Stainless steel slightly decreased, and rebar fell by 1.36%. In terms of coking coal and coke: coking coal fell by 0.81%, and coke dropped by 2%. In the overseas metal market, the LME metal market mostly fell. LME copper declined by 0.22%, LME aluminum fell by 0.53%, LME lead dropped by 0.4%, LME zinc decreased by 0.3%, LME tin rose slightly, and LME nickel fell by 0.76%. In precious metals, as of 11:41 a.m., COMEX gold fell by 0.57%, and COMEX silver dropped by 0.22%. Domestically, SHFE gold fell by 0.1%, and SHFE silver rose by 0.12%. As of the midday close, the most-traded contract of the European container shipping futures fell by 5.15%, closing at 2016.8 points. As of 11:41 a.m. on May 27, the midday futures market movements for some products were as follows: 》SMM Metal Spot Prices on May 27 Spot and Fundamentals Copper: Today, the spot #1 copper cathode in Guangdong was quoted at a premium of 180-260 yuan/mt against the front-month contract, with an average premium of 220 yuan/mt, unchanged from the previous trading day. SX-EW copper was quoted at a premium of 120-140 yuan/mt, with an average premium of 130 yuan/mt, also unchanged from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,560 yuan/mt, down 25 yuan/mt from the previous trading day, and the average price of SX-EW copper was 78,470 yuan/mt, down 25 yuan/mt from the previous trading day. Spot market: Guangdong's inventory has declined for two consecutive days, hitting a recent low, mainly due to fewer arrivals... 》Click for details Macro Front Domestic Aspects: [National Bureau of Statistics (NBS): Profits of Industrial Enterprises Above Designated Size Increased by 1.4% from January to April, with New Momentum Industries Growing Faster ] According to NBS data, from January to April, industrial enterprises above designated size nationwide achieved a total profit of 2,117.02 billion yuan, up 1.4% YoY. Among industrial enterprises above designated size, state-controlled enterprises achieved a total profit of 702.28 billion yuan, down 4.4% YoY; joint-stock enterprises achieved a total profit of 1,559.64 billion yuan, up 1.1% YoY; foreign-invested enterprises and those invested by Hong Kong, Macao, and Taiwan achieved a total profit of 542.92 billion yuan, up 2.5% YoY; and private enterprises achieved a total profit of 570.68 billion yuan, up 4.3% YoY. Yu Weining, a statistician from the Department of Industry at the National Bureau of Statistics (NBS), interpreted the profit data of industrial enterprises from January to April 2025: Profits of industrial enterprises above designated size accelerated their recovery from January to April, with profits in new momentum industries growing rapidly. 》Click to view details [The People's Bank of China (PBOC) injected a net 91 billion yuan into the open market] The PBOC conducted 448 billion yuan in 7-day reverse repo operations today, with an operating interest rate of 1.40%, unchanged from the previous rate. As 357 billion yuan in 7-day reverse repos matured today, a net injection of 91 billion yuan was achieved. ► The central parity rate of the RMB against the US dollar in the inter-bank foreign exchange market on May 27 was 7.1876 yuan per US dollar. US dollar: As of 11:41, the US dollar index dropped by 0.07%, to 98.91. The market remains focused on the fluctuating US trade policies and concerns about the US fiscal outlook. The US dollar has been weakening recently, hovering near a one-month low. The market is also paying attention to the prospects of trade negotiations between the US and the EU. Other currencies: Kazuo Ueda, Governor of the Bank of Japan (BOJ), warned at a major conference on Tuesday (May 27) that the persistent rise in food prices could become a "hidden bomb" driving up Japan's underlying inflation. Currently, Japan's underlying inflation rate is approaching the BOJ's 2% target, while the unexpected surge in food inflation, particularly a 90% YoY spike in rice prices, is disrupting the traditional drivers of inflation. Ueda emphasized that while underlying inflation is typically driven by economic recovery and a tight labour market, "inflation on the dining table" is distorting this pattern, forcing the BOJ to reassess risks. (Huitong Finance) Macro: Today, data such as the preliminary monthly rate of US durable goods orders for April, the US Conference Board Consumer Confidence Index for May, the Eurozone Economic Sentiment Index for May, the Eurozone Industrial Sentiment Index for May, the final Eurozone Consumer Confidence Index for May, the German June Gfk Consumer Confidence Index, the UK May CBI Retail Sales Balance, and the Australia ANZ Consumer Confidence Index for the week ending May 25 will be released. Crude oil: As of 11:41, crude oil futures dropped slightly, with US crude oil down by 0.34% and Brent crude oil down by 0.25%. Oil prices came under pressure as the market weighed the possibility of OPEC deciding to further increase production at its meeting later this week. However, the decline in oil prices was limited, as US President Trump announced the extension of trade negotiations with the EU until July 9, alleviating immediate concerns that tariffs could curb fuel demand. The National Iranian Oil Company (NIOC) stated that the official selling price of Iran's light crude oil grade for Asian buyers was set at a premium of $1.80 per barrel over the average Oman/Dubai price for June. The official selling price for May was a premium of $1.65 per barrel. Market participants are still monitoring whether Iran's crude oil supply can return to the export market. (Webstock Inc.) Spot Market Overview: ► Inventory hits a recent low, causing spot premiums to jump initially and then pull back today. [SMM South China Spot Copper] ► Suppliers offer discounts to unload cargoes, leading to weaker spot premiums and discounts. [SMM North China Spot Copper] ► Shanghai Zinc: Traders are reluctant to sell, with premiums rising MoM. [SMM Midday Review] ► Ningbo Zinc: Imports continue to supplement the market, with premiums holding steady. [SMM Midday Review] ► [SMM Nickel Midday Review] Nickel prices continued to decline on May 27, while profits of industrial enterprises above designated size nationwide increased by 3.0% YoY in April. Other midday reviews of spot metals will be updated later. Please refresh to view~

► Inventory hits a new recent low, causing spot premiums to jump initially and then pull back today [SMM South China spot copper] ► Suppliers offer discounts to sell, leading to weaker premiums and discounts for spot copper [SMM North China spot copper] ► Premiums and discounts for spot copper in Guangdong market at different time intervals on May 27 (fourth interval: 10:45) [SMM Price] ► Premiums and discounts for spot copper in Shanghai market during the fourth interval on May 27 [SMM Price] ► Shanghai zinc: Traders are reluctant to sell, with premiums rising MoM [SMM Midday Review] ► Ningbo zinc: Imports continue to supplement the market, with premiums remaining stable [SMM Midday Review] ► [SMM Nickel Midday Review] Nickel prices continue to decline on May 27, while profits of industrial enterprises above designated size nationwide increased by 3.0% YoY in April 》Click to visit SMM's official website for daily quotes 》Subscribe to view historical price trends of SMM metal spot prices (Recommended for viewing on a computer)

SMM Nickel News on May 23: Macro News: (1) Yu Weining, a statistician from the Industrial Statistics Department of the National Bureau of Statistics (NBS), stated that the profit growth of industrial enterprises accelerated. From January to April, the profits of industrial enterprises above designated size increased by 1.4%, accelerating by 0.6 percentage points compared to the January-March period, continuing the trend of recovery and improvement. By industry, among the 41 major industrial sectors, 23 sectors saw year-on-year profit growth, accounting for nearly 60% of the total. In April, the profits of industrial enterprises above designated size nationwide increased by 3.0% year-on-year, accelerating by 0.4 percentage points compared to March. (2) On May 26, Moody's Investors Service released a report, deciding to maintain China's sovereign credit rating at "A1" and its negative outlook unchanged. Relevant officials from the Ministry of Finance stated that since the fourth quarter of last year, the Chinese government has implemented a package of macroeconomic regulatory policies, leading to a recovery and improvement in economic indicators, stable market expectations and confidence, and enhanced medium- and long-term debt sustainability. Moody's decision to maintain China's sovereign credit rating stable is a positive reflection of China's promising economic outlook. Spot Market: Today, the SMM #1 refined nickel price is 122,150-124,450 yuan/mt, with an average price of 123,300 yuan/mt, down 850 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel is 2,100-2,300 yuan/mt, with an average premium of 2,200 yuan/mt, unchanged from the previous trading day. The premiums and discounts quotation range for Russian nickel is 100-400 yuan/mt, with an average premium of 250 yuan/mt, unchanged from the previous trading day. Futures Market: The most-traded SHFE nickel contract (NI2507) fluctuated downward, with prices continuously declining in the morning session, hitting a low of 122,150 yuan/mt, before rebounding slightly. As of 11:30, the closing price was 122,550 yuan/mt, down 0.38%. In terms of inventory, as of May 23, LME nickel inventory decreased by 2,274 mt to 198,636 mt on a single-day basis, while SMM refined nickel social inventory across six locations decreased by 1,762 mt WoW to 42,389 mt, both showing destocking. In the short term, nickel prices are subject to a dual tug-of-war between cost support and supply-demand surplus, and are expected to remain in the doldrums within the 121,000-127,000 yuan/mt range. On the macro front, attention should still be paid to the impact of uncertainties surrounding Trump's tariff policies on the market. The marginal effect of the China-US tariff reduction agreement has weakened, and the US threat to impose a 50% tariff on the EU will trigger market risk-averse sentiment.

[Yu Weining, Statistician from the Industrial Department of the National Bureau of Statistics (NBS): "Profit Growth of Industrial Enterprises Accelerates"] From January to April, profits of industrial enterprises above designated size increased by 1.4% YoY, accelerating by 0.6 percentage points compared to the January-March period, continuing the trend of recovery and improvement. By sector, among the 41 major industrial sectors, 23 sectors saw year-on-year profit growth, with nearly 60% of sectors experiencing growth. In April, profits of industrial enterprises above designated size nationwide increased by 3.0% YoY, accelerating by 0.4 percentage points compared to March.

[National Bureau of Statistics (NBS): Total Profits of Industrial Enterprises Above Designated Size in China Reached 2.11702 Trillion Yuan from January to April, Up 1.4% YoY] According to data from the NBS, from January to April, total profits of industrial enterprises above designated size in China reached 2.11702 trillion yuan, up 1.4% YoY. From January to April, among industrial enterprises above designated size, state-controlled enterprises achieved total profits of 702.28 billion yuan, down 4.4% YoY; joint-stock enterprises achieved total profits of 1,559.64 billion yuan, up 1.1% YoY; foreign-invested enterprises and enterprises invested by investors from Hong Kong, Macao, and Taiwan achieved total profits of 542.92 billion yuan, up 2.5% YoY; and private enterprises achieved total profits of 570.68 billion yuan, up 4.3% YoY.

The Political Bureau of the Communist Party of China Central Committee held a meeting on April 25 to analyze and study the current economic situation and economic work, emphasizing the need to "steadfastly manage our own affairs well and unwaveringly expand high-standard opening-up to the outside world" and to "respond to the uncertainties of a rapidly changing external environment with the certainty of high-quality development," making a series of important arrangements. In the first quarter of this year, China's economy delivered a remarkable opening performance: the GDP growth rate of 5.4% "exceeded expectations," with all key indicators operating smoothly, indicating that the upward and positive trend of China's economy continues. Inbound foreign tourists increased by 40.2% YoY. "China Tourism, China Shopping" continues to heat up in Q1. In recent years, China has systematically expanded its autonomous and unilateral opening-up. With the continuous release of benefits from a series of visa-free policies, "China Tourism" has continued to heat up. According to the latest data, in the first quarter of this year, inbound foreign tourists reached 9.215 million person-times, up 40.2% YoY. Data shows that in 2024, China received 26.94 million foreign visitors, a year-on-year increase of 96%; inbound tourists' total spending reached US$94.2 billion, up 77.8%. Policies such as tax refunds for departing tourists have continued to strengthen, significantly boosting inbound consumption. Zhang Jiaqiao, CCTV reporter: A 40.2% YoY increase—this is the growth in inbound foreign tourists in the first quarter of this year. Currently, China has implemented a unilateral visa-free policy for 38 countries, and a transit visa-free policy for 54 countries, extending the stay period to 240 hours, and has introduced a series of policies to facilitate inbound travel. Tax refunds for departing tourists help reduce shopping costs for overseas visitors and are an important entry point for attracting and expanding inbound consumption. Data shows that in 2024, the sales of goods eligible for tax refunds and the amount of tax refunds increased by 1.2 times and 1.3 times YoY, respectively. In response to issues such as the limited number of tax refund stores and the lack of shopping options for tax refunds, at today's press conference of the State Council Information Office, relevant department heads introduced the latest measures to optimize the tax refund policy for departing tourists and expand inbound consumption. The recently issued "Notice on Further Optimizing the Tax Refund Policy for Departing Tourists to Expand Inbound Consumption" optimizes the layout of tax refund stores, encouraging regions to establish additional tax refund stores in large business districts, pedestrian streets, tourist attractions, and resort areas where overseas tourists gather. It supports eligible regions in creating a number of characteristic tax refund districts to enhance the accessibility of tax refund stores. In addition, the minimum spending threshold for tax refunds has been lowered from 500 yuan to 200 yuan, the tax refund process has been optimized, the tax refund management system has been improved, and waiting times for tourists have been shortened, with the "immediate purchase, immediate refund" service measure being rolled out nationwide. Furthermore, the supply of high-quality products with Chinese characteristics will be increased, including time-honored brand products, intangible cultural heritage products, famous local specialties, "smart, healthy, and fashionable" consumer goods, and trendy domestic products. In particular, creative products with cultural connotations, "intangible cultural heritage" goods, characteristic handicrafts, as well as smart products and trendy domestic products that carry the latest development achievements, are widely welcomed by overseas tourists for their uniqueness, quality, and cost-effectiveness. Profits of industrial enterprises above designated size nationwide in Q1 increased by 0.8% YoY. Data released by the National Bureau of Statistics (NBS) show that in the first quarter, industrial enterprises above designated size nationwide achieved a total profit of 1.50936 trillion yuan, up 0.8% YoY, reversing the downward trend in cumulative profits since the third quarter of last year. In the first quarter, among the 41 major industrial sectors, 24 sectors saw an increase in profits YoY, accounting for nearly 60% of the total. In particular, the manufacturing sector showed significant improvement, with profits increasing by 7.6% in the first quarter, 2.8 percentage points faster than in January-February, becoming an important support for profit growth. Sectors such as railway, shipbuilding, aerospace, instrumentation, and special equipment manufacturing saw rapid profit growth. In addition, in the first quarter, profits in high-tech manufacturing also improved significantly, turning from a 5.8% YoY decline in January-February to a 3.5% increase, with the growth rate reaching 14.3% in March. Specifically, industries such as aerospace vehicle and equipment manufacturing, smart consumer device manufacturing, and medical instrument, equipment, and machinery manufacturing all achieved rapid profit growth. On the other hand, driven by policies such as the trade-in of consumer goods, industries such as wearable smart device manufacturing, electric bicycle manufacturing, and household kitchen appliance manufacturing saw profits increase by 78.8%, 65.8%, and 21.7% YoY, respectively. Related industries in the supply chain, such as electronic circuit manufacturing and manufacturing of special parts for household electrical appliances, also achieved double-digit rapid profit growth.