Germany’s Federal Maritime and Hydrographic Agency (BSH) is amending its offshore wind area development plan to reduce power density below 10 MW per square kilometer and minimize turbine shadowing, aiming to improve overall project economic viability. The amendment specifically targets areas like N-10.1 and N-10.2, which received no bids in 2025, to increase their attractiveness for a new tender in 2027. The 2027 auction is slated to offer a total of 4 GW across four areas, aligning with Germany's statutory goal of reaching 70 GW of offshore wind capacity by 2045. Concurrently, the offshore wind association BWO has called for broader legislative reforms, urging the introduction of two-sided Contracts for Difference (CfDs) and a mechanism to voluntarily return and re-tender economically unviable projects from the 2023–2025 auctions.

Recently, the development and reform authority released the public notice on the filing of the annual 20,000-ton waste LIB processing project. According to the notice, the project is located in Hanchuan, Hubei. It consists of facilities for annual processing of 20,000 tons of waste LIBs. Upon completion, it will achieve an annual processing capacity of 20,000 tons of waste LIBs.

As the first year of the 15th Five-Year Plan, 2026 marks a critical phase for the global copper industry, characterized by supply-demand restructuring, technological innovation, and green transition. Constrained by multiple factors—including resources, costs, and geopolitics—copper supply growth is limited, while new energy, new-type power grids, and AI computing power are generating substantial copper demand. The supply-demand gap continues to widen, and copper's strategic value becomes ever more prominent. Guided by the "High-Quality Development Plan for the Copper Industry (2025–2027)," China's copper industry is accelerating its high-end, intelligent, and green transformation. Against this backdrop, , will be grandly held on 28-30 October at the Shangri-La Hotel, Nanchang, Jiangxi . SMM , in partnership with Shandong Humon Smelting Co., Ltd. , invites you to attend . The conference will focus on the high-quality development of the copper industry, gathering participants from industry, research, and finance to discuss technological innovation and resource coordination, promoting China's copper industry's shift from scale advantage to dual leadership in technology and value. Click the to register now; we look forward to meeting you at the conference. Shandong Humon Smelting Co., Ltd. ("Shandong Humon Smelting") was founded in 1988 and is dedicated to becoming a world-class precious metals smelting enterprise that ensures employee well-being, customer satisfaction, and environmental harmony. It was listed on the Shenzhen Stock Exchange on May 20, 2008 (stock code: 002237). In 2019, Jiangxi Copper Corporation became its controlling shareholder. Building on the momentum of reform and opening-up and leveraging its expertise in technological innovation, the company has steadfastly pursued market-oriented and international operations. After more than 30 years of persistent entrepreneurial efforts, it has remained China's largest gold smelter for 12 consecutive years. In 2025, it achieved operating revenue of 110 billion yuan and produced 100 mt of gold. As a pioneer and leader in pyrometallurgy, the company is rooted in fire-based processes and integrates the entire chain, developing a comprehensive "cyanide-free pyrometallurgical environmental technology system." This system has been recognized with two second prizes for National Science and Technology Progress and twelve first prizes at the provincial/ministerial level. Focusing on the transformation and upgrading of gold mining and smelting, the company has put forward the strategic vision of "Unlocking Infinite Value from Limited Resources, Leading Green Development in Gold Mining and Smelting." While producing gold and silver, it also achieves the comprehensive extraction of metals such as copper, lead, zinc, antimony, selenium, tellurium, and platinum, forming a diversified development pattern encompassing gold mining, metal smelting, international trade, and high-purity materials. Looking ahead, guided by the lines, principles, and policies of the Party and the state, the company will integrate global mineral resources to create wealth for China in this era, embarking on a new journey of high-quality, leapfrog development and striving unremittingly to become a world-class precious metals mining and smelting enterprise. Contact: Wang Lu 0535-4631040 Email: manage@hbyl.cn Address: No. 11 Jinzheng Street, Shuidao Town, Muping District, Yantai City Scan to Register SMM Conference Contact Li Chongshan 173 4975 4665 lichongshan@smm.cn

SMM, June 26: Metals market: As of the midday close, base metals on the domestic market almost all fell. SHFE copper edged down, SHFE aluminum fell 0.38%, SHFE lead rose 0.15%, SHFE zinc fell 1%, SHFE tin dropped 1.7%, and SHFE nickel declined 1.81%. In addition, the most-traded foundry aluminum futures fell 0.4%, the most-traded alumina contract dropped 1.41%, the most-traded lithium carbonate contract tumbled 5.26%, the most-traded silicon metal contract lost 0.89%, and the most-traded polysilicon futures fell 3.53%. Ferrous metals all fell. Iron ore dropped 0.67%, rebar lost 0.64%, hot-rolled coil slipped 0.51%, and stainless steel dipped 0.21%. Coking coal and coke: the most-traded coking coal contract fell 0.92%, and the most-traded coke contract fell 1.21%. Overseas base metals: as of 11:43, LME metals all fell. LME copper dropped 1.55%, LME aluminum fell 0.97%, LME lead lost 0.39%, LME zinc declined 1.38%, LME tin tumbled 1.99%, and LME nickel fell 1.36%. Precious metals: as of 11:43, COMEX gold fell 0.9% and COMEX silver plunged 3.4%. Domestic precious metals: SHFE gold edged down 0.11%; the most-traded SHFE silver contract extended losses from the previous five trading days, falling another 2.72%, and hit an intraday low of 13,513 yuan/kg, the weakest since December 2025. Additionally, as of the midday break, the most-traded platinum futures rose 0.31%, while the most-traded palladium futures fell 0.85%. As of the midday close, the most-traded container shipping (Europe route) futures added 0.7% to 3,686.5 points. Selected futures midday quotes as of 11:43, June 26: Spot and fundamentals Aluminum: The futures market stopped falling and edged up today. Spot aluminum in South China gradually weakened amid divergence. Low aluminum prices and strong destocking continued to support suppliers holding prices firm in selling... Macro front China: [National Energy Administration: During the 15th Five-Year Plan period, it will continue to open up energy projects and issue investment guidelines for private enterprises to participate in large and medium-sized hydropower projects] Wan Jinsong, deputy director and spokesperson of the National Energy Administration, stated at a State Council Information Office press conference that during the 15th Five-Year Plan period, the administration will persist in the approach of open construction and service-driven investment, increasing support for private enterprises to engage in building a new-type energy system. For major energy projects, it will expand the investment space for private enterprises. For major projects with certain returns, such as nuclear power, hydropower, and oil and gas storage and transportation facilities, the feasibility of private enterprise participation will be assessed on a case-by-case basis. During the 15th Five-Year Plan period, we will continue to open up energy projects, issue investment guidelines for private enterprises to participate in large and medium-sized hydropower projects and others, so that their investments have direction and returns are guaranteed. We will further improve the electricity market and pricing mechanism, and support private enterprises in investing in projects such as virtual power plants, charging facilities, and new-type energy storage. [Wang Hongzhi, Director of the National Energy Administration: China's installed power capacity is expected to reach 5.4 billion kW by 2030] Wang Hongzhi, member of the Party Leadership Group of the National Development and Reform Commission (NDRC) and Director of the National Energy Administration, stated at a press conference of the State Council Information Office that China's installed power capacity has now exceeded 4 billion kW and is expected to reach 5.4 billion kW by 2030. Among this, new energy will account for over 50% of installed capacity, becoming the mainstay of power capacity, while non-fossil fuel power generation will account for 50% of total electricity output, becoming the main source of electricity. Coal and oil consumption will have peaked. The PBOC conducted a 231.5 billion yuan 7-day reverse repo operation today at an interest rate of 1.4%, unchanged from the previous rate. No reverse repos matured today. The PBOC injected a net 329.7 billion yuan into the open market this week. (From Wallstreetcn APP) US dollar aspect: As of 11:43, the US dollar index rose 0.01% to 101.47. According to CME "FedWatch": the probability that the Fed will keep interest rates unchanged in July is 69%, while the probability of a cumulative 25-basis-point hike is 31%. For September, the probability of keeping rates unchanged is 36.6%, cumulative 25-bp hike is 48.8%, and cumulative 50-bp hike is 14.6%. Fed Williams stated that the current monetary policy stance is well positioned to bring inflation back to the Fed's 2% target while acknowledging that risks to achieving its dual mandate remain. Williams said, "Given that inflation is elevated, we must bring it back sustainably to the 2% longer-run goal. The current stance of monetary policy is fully capable of achieving that." Williams noted that inflation is "clearly elevated" and well above the Committee's 2% objective. He expects inflation data to pull back slightly over the next few quarters, although significant risks remain. Fed Goolsbee said on Thursday that while the latest US inflation report showed a glimmer of hope for improvement in services inflation, underlying inflation pressures remain too high and concerning. In an interview with CNBC, Goolsbee declined to offer specific views on whether the Fed should raise rates or keep them unchanged. He said he agreed with Fed Chairman Warsh's view that fueling speculation about future interest rate paths should be avoided. (Jin10 Data APP) US data sent mixed signals while oil prices fell below pre-conflict levels. The May PCE inflation YoY matched average expectations, accelerating from 3.8% to 4.1%. Lower energy costs are expected to cool future inflation. May durable goods orders fell 4.5%, versus average expectations for a 4% decline. Meanwhile, Q1 real GDP annualized quarterly rate was revised up from 1.6% to 2.1%, compared to expectations of 1.7%. Initial jobless claims for the week fell to 215,000, against average expectations of 223,000. (Jin10 Data APP) A CITIC Securities research report said the US dollar index has strengthened rapidly in recent days, driving gold prices below the $4,000/oz mark. Fading inflation concerns did not push the dollar lower. We believe political “re-dollarization” may partly explain the dollar’s recent strength, but a more important driver likely comes from expectations of tightening dollar liquidity. We expect the dollar index to find support this year but struggle to sustain a strong rally, and the next US inflation data could be a catalyst for the market to adjust trading strategies. On the data front: The final US June University of Michigan consumer sentiment index and final June one-year inflation expectations will be released today. Also to watch: FOMC permanent voter and New York Fed President Williams delivers a speech; 2027 FOMC voter and Chicago Fed President Goolsbee speaks; 2026 FOMC voter and Minneapolis Fed President Kashkari speaks. On the crude oil front: As of 11:43, both crude benchmarks fell, with WTI down 1.67% and Brent down 1.54%. As shipping through the Strait of Hormuz resumed, supply concerns eased somewhat. However, a cargo vessel was attacked near Oman on Thursday, and markets will closely monitor geopolitical developments. S&P Global Energy reported on the 25th that 78 vessels transited the Strait of Hormuz on the 24th, the highest single-day tally since the outbreak of the Iran war. The daily average number of vessels transiting the Strait this month has recovered to about 57% of pre-conflict levels. As of the 24th, a cumulative total of 551 vessels had transited the Strait this month, putting it on track to be the busiest month since the war began. The report noted that recent departures from the Strait included vessels that had been stranded for long periods due to the conflict as well as recent arrivals, signaling early signs of normalization in shipping activity. However, whether the rebound in transit volumes can be sustained remains to be seen, and related agreements still need further consolidation and implementation. ((Xinhua News Agency) US Secretary of Energy Wright expects Iran's daily crude oil exports to reach up to 2 million barrels. Additionally, market sources say that crude oil exports from the Persian Gulf have rebounded to 75% of pre-war levels; in the past three days through Wednesday, the region exported 13 million barrels of crude oil. (Jin10 Data App) An earlier Wallstreetcn article reported that the UAE formally withdrew from OPEC on May 1, and Iraq subsequently threatened to follow suit unless granted greater production freedom. Meanwhile, a series of geopolitical shocks—including the US takeover of Venezuelan oil assets and US-Israeli military actions against Iran—have significantly eroded OPEC's market control capability. Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ► ► ►

SMM June 26 News: Metals market: Overnight, base metals on the domestic market broadly rose. SHFE tin rose 0.91%, SHFE copper rose 0.9%, and SHFE nickel rose 0.17%. SHFE lead rose 0.25%. SHFE zinc fell 0.12%, and SHFE aluminum fell 0.17%. Additionally, the most-traded alumina futures fell 0.78%, and the most-traded cast aluminum continuous contract fell 0.44%. Overnight, most ferrous metals fell. Iron ore fell 1.08%, rebar fell 0.61%, HRC fell 0.48%, and stainless steel rose 1.4%. Coking coal and coke: the most-traded coking coal contract fell 0.48%, and the most-traded coke contract fell 1%. Overnight LME base metals posted near across-the-board gains. LME copper rose 2.22%. LME aluminum rose 2.26%. LME lead edged lower. LME zinc rose 0.88%. LME tin rose 1.31%. LME nickel rose 0.42%. Overnight precious metals: COMEX gold rose 0.82%, and COMEX silver fell 0.34%. Overnight, SHFE gold rose 1.17%, and SHFE silver rose 1.24%. As of 7:09 a.m. on June 26, overnight closing quotes: Macro Front China: [Two departments: initially establish a clean, low-carbon, safe and efficient new-type energy system by 2030] The National Development and Reform Commission (NDRC) and the National Energy Administration issued the "15th Five-Year Plan for Building a New-Type Energy System." The main objectives are: initially establish a clean, low-carbon, safe and efficient new-type energy system by 2030. Raise overall energy production capacity to 5.8 billion tonnes of standard coal equivalent, comprehensively enhance the complementary and mutual support capabilities and security resilience of the power system, and achieve diversified and controllable energy imports; coal and oil consumption will peak, the share of non-fossil energy consumption will reach 25%, wind and solar installed capacity will exceed 50%, becoming the mainstay of installed power capacity, and non-fossil energy power generation will account for 50% of the total, becoming the dominant source of electricity; accelerate building a resilient, green, low-carbon, integrated, smart and efficient new-type energy infrastructure system and initially complete a new-type power system; achieve overall independent controllability of key technological equipment across the energy industry chain, and rank among the world's leading countries in energy technology innovation; accelerate the improvement of market and pricing mechanisms suited to the new-type energy system, and basically establish a unified national electricity market system. US dollar: The overnight US dollar index fell 0.11% to 101.46. As US data sent mixed signals and oil prices fell below pre-war levels, the decline in energy costs is expected to cool future inflation, and the dollar declined. (Jinshi Data APP) Driven by the Middle East conflict which pushed up energy prices, US inflation edged higher in May, with the annual PCE rate breaking above 4% for the first time in three years, potentially bringing the Fed closer to raising interest rates this year. The Commerce Department reported on Thursday that the US PCE price index rose 4.1% YoY in May, the first reading above 4.0% since April 2023. The US-led war against Iran pushed up oil prices, which in turn drove gasoline prices higher. Although crude oil and gasoline prices have pulled back in recent weeks after a fragile ceasefire was reached, economists expect inflation to remain elevated for some time. And even before the latest conflict, consumers were already grappling with higher prices triggered by Trump's sweeping import tariffs. The Fed left its benchmark rate unchanged in the 3.50%-3.75% range last week, but updated quarterly projections showed policymakers are expected to raise rates this year amid heightened inflation concerns. Financial markets are betting on a rate increase as early as September, potentially followed by another hike. According to CME's FedWatch tool: the probability of the Fed keeping rates unchanged in July is 69%, while the probability of a cumulative 25bp hike is 31%. The probability of the Fed holding rates steady by September is 36.6%, a cumulative 25bp hike 48.8%, and a cumulative 50bp hike 14.6%. (Jinshi Data APP) The Commerce Department reported on Thursday that the final estimate for Q1 GDP showed an annualized growth rate of 2.1%, revised up by 0.5 percentage point from the second estimate and far above economists' expectations. This final reading markedly outperformed the earlier second estimate of 1.6% and was also above the initial 2.0% pace published by the department. Markets had expected the final figure to be basically flat compared to the second estimate. According to the Bureau of Economic Analysis (BEA), a sharp acceleration in business investment—likely fueled by an AI investment boom—was the key driver of the upward revision, with expanding exports and shrinking imports also providing a favorable backdrop. Yet the headline numbers also masked concerns over domestic demand. A key gauge of the economy's internal growth momentum—final sales to domestic private purchasers—was revised down by 0.7 percentage points from the second estimate to 1.7%; consumer spending also decelerated notably from Q4 2025 and from the previous estimate, underscoring pressure on household consumption. New York Fed President John Williams said the current monetary policy stance is effective in suppressing inflation, but numerous risks remain and rates are expected to stay unchanged in the near term. Williams said on Thursday that inflation is "undeniably high," and the current rate stance is "well positioned" to guide inflation back toward the 2% long-run target. He expects inflation to ease to 3.5% by the end of this year, then continue to decline along a "glide path" and reach the 2% target in 2028. (Wall Street CN) On the macro front: Today will see the release of the final University of Michigan consumer sentiment index for June and the final one-year inflation expectations for June, among others. Also to watch: FOMC permanent voter and New York Fed President Williams delivers a speech; 2027 FOMC voter and Chicago Fed President Goolsbee delivers a speech; 2026 FOMC voter and Minneapolis Fed President Kashkari delivers a speech. Crude oil: Overnight, both oil futures gained, with WTI rising 1.61% and Brent rising 1.65%. Oil prices, which had rapidly pulled back following the Iran ceasefire, came under renewed pressure from fresh developments in the Strait of Hormuz. As noted by Wall Street CN, reports said Iran proposed charging a transit fee for ships passing through the Strait of Hormuz, and US Secretary of State Rubio promptly responded that such a move would "set an unacceptable precedent." Notably, inventories in Cushing, Oklahoma, have fallen to about 19 million barrels, below the level considered the operational minimum. Nevertheless, prices remain far below pre-Iran-war levels, and near-dated futures contracts are still in bearish contango. (Wall Street CN) According to Xinhua News Agency, the United Nations maritime regulator, the International Maritime Organization (IMO), announced on Thursday that a ship was attacked in the Gulf of Oman the same day, and the organization decided to suspend evacuation operations for vessels stranded in the Strait of Hormuz to further verify whether related security measures remain effective. Market sources said: crude oil exports from the Persian Gulf rebounded to 75% of pre-war levels; over the three days ending Wednesday, the region exported 13 million barrels of crude. (Jinshi Data APP)

In June 2026, the hydrogen energy transportation equipment sector in the Xixian New Area saw new progress. A Skyworth-brand hydrogen fuel cell low-floor city bus, with its hydrogen core power system independently developed by resident enterprise Shengshi Yingchuang Hydrogen Energy Technology (Shaanxi) Co., Ltd. and equipped with its hydrogen fuel cell system, recently rolled off the production line. This model has been included in the 389th batch of the "Announcement of Road Motor Vehicle Manufacturers and Their Products" by the Ministry of Industry and Information Technology, laying a foundation for commercial operation. With the roll-off, Xixian New Area has added new support for the demonstration application of hydrogen fuel cell buses and the green transformation of urban transportation. It is understood that the hydrogen core power system of this city bus was entirely led and developed by Shengshi Yingchuang. The vehicle is equipped with the company's independently developed 90 kW hydrogen fuel cell system , and a Type IV high-end on-board hydrogen supply system jointly created with Beijing Tianhai. Compared with traditional battery electric buses, hydrogen fuel cell buses offer differentiated advantages in refueling efficiency, low-temperature adaptability, and long driving range operation, making them more suitable for the high-frequency, long-duration operational demands of bus routes. A relevant person in charge of Shengshi Yingchuang stated that the vehicle's power system features independent controllability, strong adaptability, and stable operation, which can improve vehicle operational efficiency while ensuring safety. The vehicle's combined driving range reaches 550 km , and with its fast hydrogen refueling capability, it can alleviate issues such as driving range decay and long refueling times that battery electric buses face in low winter temperatures, offering strong adaptability to the climatic conditions of north-west China and urban public transportation scenarios. Hydrogen energy is regarded as an important direction for green and low-carbon transition. The "Medium and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021–2035)" issued by the National Development and Reform Commission and the National Energy Administration proposes to orderly promote demonstration applications in the transportation sector, focus on promoting the application of medium and heavy-duty hydrogen fuel cell vehicles, and gradually form a complementary development pattern of fuel cell electric vehicles and lithium battery electric vehicles. In the Xixian New Area, the hydrogen energy industry chain is accelerating its agglomeration. At present, the new area has attracted over a hundred hydrogen energy upstream and downstream enterprises such as Xushun Times and Shengshi Yingchuang, covering fields including PV electrolysis hydrogen production, liquid and solid-state hydrogen storage, fuel cell manufacturing, hydrogen refueling station construction, and the R&D and production of hydrogen commercial vehicles. The number of related enterprises has accounted for more than one-third of the total number of hydrogen energy enterprises in Shaanxi Province and nearly 70% of similar enterprises in Xi'an, preliminarily forming an **integrated industry ecosystem of "R&D breakthroughs, equipment manufacturing, and demonstration applications."** Going forward, Xixian New Area will continue to expand the integrated application of hydrogen energy in transportation, energy, industry, and other fields, deepen industry-university-research collaborative innovation, improve industrial supporting facilities and enterprise service systems, and attract more high-growth enterprises for cluster development. As demonstration scenarios continue to expand, the hydrogen energy industry is expected to become a significant growth point for the new area's green and low-carbon transition and high-quality development.

SMM June 25: In the metals market: Base metals on the domestic market all fell overnight. SHFE tin dropped 2.64%, SHFE copper fell 2.3%, SHFE zinc lost 1.33%, SHFE aluminum declined 2.13%, and SHFE nickel slid 1.72%. SHFE lead edged down 0.95%. In addition, the most-traded alumina futures contract fell 0.84%, and the aluminum casting main contract lost 1.69%. Ferrous metals showed mixed performance overnight. Iron ore rose 0.47%, rebar and HRC edged lower, and stainless steel fell 0.85%. In coking coal and coke: the most-traded coking coal contract gained 0.4%, and the most-traded coke contract rose 1%. On the overseas market, LME base metals all fell overnight. LME copper dropped 2.59%. LME aluminum tumbled 4.43%, hitting a more than three-month low of $3,110/mt during the session. LME lead fell 1.59%. LME zinc lost 2.67%. LME tin declined 3.05%. LME nickel dropped 2.52%. In precious metals overnight: COMEX gold fell 3.21%, touching a session low of $3,975.7/oz; COMEX silver plunged 7.39%, hitting a session low of $55.75/oz. SHFE gold lost 2.45%, and SHFE silver tumbled 6.31%. As of 7:12 on June 25, overnight closing prices: Macro front China: [Ministry of Commerce: Announcement on Further Improving the Handling of Reports Regarding Violations of Export Controls on Strategic Mineral Dual-Use Items] Announcement No. 26 of 2026 of the Ministry of Commerce. To fully leverage social oversight and combat violations of export controls on strategic mineral dual-use items, all organizations and individuals have the right to report suspected violations of relevant laws and regulations in exporting strategic mineral dual-use items, including: exporting strategic mineral dual-use items without authorization; exporting such items beyond the scope, conditions, or validity period specified in the export license; exporting prohibited strategic mineral dual-use items; circumventing licensing requirements by modifying or disassembling items into components or parts to export strategic mineral-related dual-use items; and evading export control regulations on strategic mineral dual-use items by routing through a third country (region), among others. [Ministry of Commerce Releases "Measures for the Security Investigation of Industry Chain and Supply Chain"] To implement the "Provisions of the State Council on the Security of Industry Chain and Supply Chain" (State Council Order No. 834), conduct security investigations on industry chain and supply chain effectively, and safeguard the security of China's industry chain and supply chain, the Ministry of Commerce formulated the "Measures for the Security Investigation of Industry Chain and Supply Chain," which is hereby released and takes effect from the date of publication. [Ministry of Commerce and seven other departments: Strictly crack down on illegal recycling and dismantling of end-of-life motor vehicles, and regulate the business practices of end-of-life motor vehicle recycling enterprises] The Ministry of Commerce, National Development and Reform Commission (NDRC), Ministry of Industry and Information Technology, Ministry of Public Security, Ministry of Ecology and Environment, Ministry of Transport, State Administration for Market Regulation, and other departments formulated the "Special Rectification Action Plan for Illegal Recycling and Dismantling of End-of-Life Motor Vehicles." It is hereby issued. This special rectification action focuses on addressing prominent issues in the end-of-life motor vehicle recycling industry. All regions and relevant departments should adhere to a problem-oriented approach, improve the coordinated supervision mechanism, strictly crack down on illegal recycling and dismantling of end-of-life motor vehicles, and regulate the business practices of end-of-life motor vehicle recycling enterprises. Through this special rectification action, the standardized operation level of end-of-life motor vehicle recycling enterprises will be continuously enhanced, the proportion of end-of-life motor vehicle recycling volume to vehicle deregistration volume will be steadily expanded, illegal recycling and dismantling of end-of-life motor vehicles will be effectively curbed, the level of parts recycling and reuse from end-of-life motor vehicles will be continuously improved, and the high-quality development of the end-of-life motor vehicle recycling and dismantling industry will be promoted. Additionally, local authorities are guided to concurrently address the recycling standards for PV modules and wind turbine blades. [Central Bank: To conduct 500 billion yuan MLF operation on June 25] According to the central bank, on June 25, 2026, the People's Bank of China will conduct a 500 billion yuan MLF operation through a fixed-quantity, rate-based tender, and multiple-price winning bids, with a term of one year. [CAICT: Domestic mobile phone shipments reached 27.639 million units in May; 5G phone shipments up 23.8% YoY] Data from the China Academy of Information and Communications Technology (CAICT) shows that in May 2026, domestic mobile phone shipments reached 27.639 million units, up 16.5% YoY. Among them, 5G phone shipments were 26.224 million units, up 23.8% YoY, accounting for 94.9% of total mobile phone shipments during the same period. As for the US dollar: The US dollar index extended gains from the previous two trading days, rising another 0.2% overnight to close at 101.57. The PCE price index release on Thursday will be the next key period. Forecasters anticipate that the May data will show acceleration on both MoM and YoY basis, providing new reference for the Fed’s policy direction. Goldman Sachs' chief economist Jan Hatzius reiterated that his baseline forecast remains no rate hike, citing that if a lasting peace is achieved in the Middle East, the inflation environment will be milder than the Fed currently expects. (Wall Street Journal) US Treasury Secretary Bessent praised Fed Chairman Warsh for eliminating forward guidance, and he also believed that no one should make dot plot forecasts. On the economic front, he expected real wage growth to return to its pre-April pace, and he anticipated economic growth to accelerate through the remainder of the year without driving up inflation. He stressed that US dollar dominance was crucial. He believed that after the situation in Ukraine ended, Russia would want to return to the dollar system, and the new Venezuela was moving back into that system. During the period when interest rates were being lowered, the dollar could remain strong, and the US would be happy to take the right measures to keep the dollar strong. On the issue of Iran, Bessent stated that the US Treasury would oversee the distribution of funds to Iran, which would initially be disbursed through Qatar, and a significant portion of those funds would be used to purchase US food and medicine supervised by the Treasury, and any funds received by Iran should belong to Iranians. (Gold Ten Data) According to CME "Fed Watch": The probability of the US Fed keeping interest rates unchanged in July was 65.8%, and the probability of cumulative rate hikes of 25 basis points was 34.2%. The probability of the US Fed keeping interest rates unchanged through September was 33.6%, the probability of cumulative rate hikes of 25 basis points was 49.7%, and the probability of cumulative rate hikes of 50 basis points was 16.7%. Macro front: Data to be released today include Australia's May seasonally adjusted unemployment rate, Germany's July GfK Consumer Confidence Index, US initial jobless claims for the week ending June 20, US May core PCE price index year-over-year, US May personal spending month-over-month, US Q1 real GDP annualized quarter-over-quarter final, US Q1 real personal consumption expenditures quarter-over-quarter final, US Q1 core PCE price index annualized quarter-over-quarter final, US May core PCE price index month-over-month, and US May durable goods orders month-over-month. Furthermore, attention should be paid to: Nvidia's annual general meeting of shareholders; the Bank of Canada's release of monetary policy meeting minutes; the US Fed's release of annual bank stress test results; Bank of Japan Governor Kazuo Ueda's attendance at a central bank lecture event held by the International Monetary Fund (IMF); Micron Technology's fiscal year 2026 Q3 earnings call; 300 billion yuan in 1-year medium-term lending facility (MLF) and 248 billion yuan in 7-day reverse repos maturing today. Crude oil side: Overnight, both oil futures dropped sharply, with WTI falling 4.56% to an intraday low of $69.93/bbl and Brent falling 4.45% to an intraday low of $73.32/bbl. Brent crude has largely erased all the geopolitical risk premium accumulated since the outbreak of the Iran war. News-wise, Trump stated in a social media post on the 24th that Iran had informed the US it would not impose any tolls, insurance premiums, or other charges on ships transiting the Strait of Hormuz, but he also threatened that negotiations would immediately cease if this information proved false. According to estimates by the International Energy Agency, the UAE's oil exports have recovered to nearly 85% of pre-war levels, reflecting a substantial increase in the volume of oil shipped through the Strait of Hormuz in recent weeks. The UAE alone sold about 60 million barrels of crude oil from the Persian Gulf in recent weeks. Data shows that vessel traffic in the Strait of Hormuz has hit a new high since the signing of the memorandum of understanding and continues to rise. (Wall Street See)

The Ministry of Commerce, National Development and Reform Commission, Ministry of Industry and Information Technology, and four other authorities have jointly formulated an action plan for a special campaign against the illegal recycling and dismantling of scrapped motor vehicles. The initiative aims to crack down on the illegal acquisition of end-of-life vehicles under the guise of "used car purchasing" and their subsequent resale to unauthorized dismantling sites. It will trace vehicle origins to sever illegal recycling supply chains.

HRC prices: Over the coming year, from 2026 to 2027, China has nearly 40 million mt of HRC capacity projects under planning and construction, with production expected to increase further in 2026. Demand side, China's macro policies are expected to remain accommodative, and the manufacturing sector is likely to continue introducing policies to stimulate consumption, with demand expectations staying resilient. However, affected by anti-dumping measures and export structure adjustments, the decline in HRC exports will weigh on the domestic high-supply pattern. Overall, HRC prices are expected to continue hovering at lows in 2026. But considering that overseas geopolitical conflicts are pushing up inflation expectations and transmitting to commodity prices, coupled with coal and coke prices hitting bottom in 2025 and entering a new recovery uptick cycle, against the backdrop of cost push, the average HRC price may rebound slightly compared to 2025. Looking ahead to the next five years, considering that the peak period of new production capacity has passed, with the accelerated promotion of industry mergers and reorganizations and the continuous optimization of the capacity structure, HRC supply growth is expected to gradually slow down and stabilize starting from 2027. SMM expects that around 2028, a policy package of supply-side production restrictions plus steel export scale tightening may re-emerge, and the improvement in the overcapacity contradiction may bring about a round of upside opportunities for HRC prices. However, unlike the intensity of the 2015 supply-side reforms that were coupled with real estate easing and shantytown renovation destocking policies, after the phased capacity removal ends, the overall downward trend in China's steel consumption will be hard to reverse, which will limit the upside room of this HRC price rally driven by supply-demand imbalance easing. Additionally, the supply-demand pattern of iron ore trending looser will also pull down costs, and HRC prices are expected to come under pressure again after a brief rise. Steel mill profits: Considering that China's surplus steel capacity is resolved through steel exports, this necessitates China's steel prices to stay relatively low to support price advantages and orders, which will also limit the upside room of China's steel prices, steel mill profits are expected to remain at low marginal levels in H2 2026. China Hot-Rolled Coil Annual Supply-Demand Balance （ The line chart represents China's HRC price, and the bar chart represents the HRC balance. ）

Asked "Dear Board Secretary, I would like to inquire whether your company, as found online, can stably mass-produce semiconductor-grade ultra-high-purity magnesium metal ingots and is the only publicly listed firm for such products. Also, what has been the sales proportion of such products in the company's total sales in recent years?" Baowu Magnesium Industry responded on the investor interaction platform on June 23: The company's businesses include magnesium material business, magnesium products business, aluminum products business, mineral products business, and building formwork business. Its main products include magnesium alloys, magnesium alloy deep-processed products, aluminum alloys, aluminum alloy deep-processed products, master alloys, and strontium metal. For the revenue breakdown by product, please refer to the 2025 annual report. The company has not publicly disclosed information regarding the specific products and sales proportions you mentioned. Please refer to the company's officially released periodic reports or announcements for such information. Regarding the question "1. What is the commissioning progress of the mine in the Qingyang project in Anhui, and what is the current ore output? 2. What advantages does the company's vertical retort magnesium smelting technology have? How does it compare with peers in Fugu?" Baowu Magnesium Industry responded on June 17 on the investor interaction platform: The company adopts vertical retort magnesium smelting technology, which features outstanding technical advantages: increased single-retort capacity, shortened production cycle, improved production efficiency, extended service life of reduction retorts, and a higher level of mechanized and automated operations. The Anhui Qingyang mine project has reached a capacity of 20 million mt per year . On June 3, during a survey, Baowu Magnesium Industry stated that the company already has a certain level of technology reserves in magnesium-based hydrogen storage, but the development of the hydrogen storage industry mainly relies on downstream application expansion, which takes time. Currently, downstream application expansion is slow: the hydrogen energy industry chain (production/storage/transportation/utilization) lacks overall maturity, and orders have yet to materialize at scale. On June 3, during a survey, Baowu Magnesium Industry stated that in terms of end-use breakdown, the largest use of magnesium is in magnesium alloys, accounting for about 49%; followed by addition to aluminum alloys, about 26%; steel desulfurization, about 12%; as a metal reducing agent, about 8%; and other fields, about 5%. On June 3, during a survey, Baowu Magnesium Industry stated that the company's magnesium ingot production costs have the following advantages: 1. The company has a complete industry chain advantage, especially in stable raw material supply. 2. The company continues to increase investment in original magnesium smelting technology, enhancing the cost competitiveness of its primary magnesium through large-scale vertical retort magnesium smelting technology and energy efficiency optimization. Baowu Magnesium Industry announced on May 26 that it recently received a notice from its controlling shareholder, Baosteel Metal Co., Ltd., that 263 million shares (26.53% of total shares) will be transferred at no cost to China Baowu Steel Group Corporation Limited. After the transfer, the controlling shareholder will change to China Baowu, while the actual controller remains the State-owned Assets Supervision and Administration Commission of the State Council, unchanged. The announcement shows Baosteel Metal is a wholly owned subsidiary of China Baowu. Before this transfer, China Baowu indirectly held 26.53% of Baowu Magnesium through Baosteel Metal, being the indirect controlling shareholder. After the transfer, China Baowu will directly hold 26.53% and become the controlling shareholder. Performance: Baowu Magnesium Industry disclosed its 2025 annual report on April 29, showing: In 2025, the company achieved revenue of 9,911,752,817.29 yuan, up 10.34% YoY, and net profit attributable to shareholders of the publicly listed firm was 18,548,946.85 yuan, down 111.62% YoY. The decline was mainly due to the continued downward trend of magnesium prices, which caused a significant YoY decline in the magnesium material business profit; meanwhile, the joint venture Anhui Baomei Light Alloy Co., Ltd. is in the ramp-up stage of a new project, with low production and high costs, plus low magnesium prices, which dragged down the company's investment income YoY. Regarding the main business activities during the reporting period, Baowu Magnesium Industry introduced in its 2025 annual report: The company is a leader in magnesium-based new materials under China Baowu, with advantages across the entire industry chain and mine resources, leading vertical retort magnesium smelting technology, and its magnesium alloy capacity and market share are among the global frontrunners. The company focuses on lightweight materials, with products covering automotive, consumer electronics, e-bikes, building formwork, etc. After more than 30 years of development, the company has become a high-tech enterprise integrating mining, non-ferrous metal smelting, and processing, aiming to be a global leader in the magnesium industry. Its businesses include magnesium material business, magnesium products business, aluminum products business, mineral products business, and building formwork business. Its main products include magnesium alloys, magnesium alloy deep-processed products, aluminum alloys, aluminum alloy deep-processed products, master alloys, and strontium metal. Outlook on future development: Baowu Magnesium Industry stated in the 2025 annual report: 2026 marks the start of the company's 15th Five-Year Plan, and the industry will see an important period of high-end and large-scale development. The board will guide management with the core positioning of "building a lightweight solutions provider and becoming the new materials main force of China Baowu," focusing on the main business, deepening cultivation, advancing full-industry-chain upgrading, technological innovation, market expansion, and green development, to achieve sustained improvement in operating performance and significant enhancement of core competitiveness. 1. Strengthen strategic guidance and solidify the foundation for new quality productive forces in the magnesium industry. Accelerate building a full industry chain from primary magnesium to alloys, deep processing, and terminal applications, concentrate on breakthroughs in green smelting and stable, low-cost production technologies, and speed up large-scale promotion of key products. 2. Coordinate the construction of key projects to synergistically improve overall operational efficiency. Speed up construction and comprehensive acceptance of the Huayuan Wujia mine in the Qingyang project, orderly advance main plant construction and production indicator optimization, and steadily push forward key projects in Gansu Baomei, Wutai Baomei, and Chaohu Baomei. 3. Deepen magnesium industry reform and innovation, promoting modern corporate governance. Steadily advance business transformation and renewal, promote asset integration, and further optimize governance, management control, and business management models. 4. Accelerate intelligent development layout and fully advance IT system construction. Complete full implementation of the Baowu standard financial system and rollout of cost systems in subsidiaries, create a full-process IT model project for magnesium business, further enhance operational control, cost calculation, compliant operations, and risk prevention and control capabilities. 5. Focus on attack on primary magnesium cost to continuously enhance market competitiveness. Reduce manufacturing costs of three core components: reduction retorts, center pipes, and cones; optimize steel grades to extend retort service life; reduce auxiliary energy consumption and material-to-magnesium ratio. 6. Implement cost-conscious management and systematically build a high-quality development business model. Deepen overall benchmarking to identify and address gaps, systematically attack the "four major costs" — primary magnesium, energy, logistics, and quality — and improve the operational control system. 7. Strengthen safety and environmental protection fortresses, systematically elevate green development. Continuously strengthen safety and environmental compliance rectification. Highlight risk management in key areas and enhance intrinsic safety. Accelerate green factory and low-carbon capability building. 8. Main risk factors and countermeasures (1) Risk of fluctuating main raw material prices The company's main business is magnesium and aluminum alloys and deep processing, with primary raw materials being magnesium and aluminum metals. Prices are affected by supply-demand dynamics, global and Chinese economic conditions, and closely tied to automotive lightweighting progress, 3C industry demand, etc. If magnesium and aluminum prices swing wildly in the future, it will affect cost control and profitability. The company is raising the self-sufficiency ratio of raw materials, adjusting product mix, and increasing the proportion of deep-processed products to mitigate the impact. (2) Risk of fluctuating market demand The company's magnesium and aluminum lightweight alloy products are mainly used in automotive and consumer electronics. Currently, seizing auto lightweighting opportunities, the company is expanding into downstream deep processing such as magnesium alloy automotive die castings, magnesium alloy building formwork, and aluminum extrusion products. The pace of automotive lightweighting and 3C electronics demand are influenced by macro-economy, industrial policies, and process technology innovation. If downstream demand falls short of expectations, it will affect operating performance. The company is expanding product applications in various fields, increasing penetration rates, to reduce the risk of demand fluctuations. In addition, the Q1 2026 report released by Baowu Magnesium Industry shows: In Q1 2026, revenue was 2.132 billion yuan, up 4.86% YoY; net profit attributable to shareholders of the publicly listed firm was 5.0891 million yuan, down 81.94% YoY. Regarding the increase in Q1 revenue, Baowu Magnesium Industry explained: Sales of main products and material prices rose YoY. For the decline in net profit, the company said it was due to a decrease in product gross margins and increased losses from joint ventures. Baowu Magnesium Industry mentioned that its magnesium alloy capacity and market share rank among global leaders. Looking back at the performance of SMM magnesium alloy AZ91D in Q1 this year: The average price on March 31, 2026 was 19,650 yuan/mt, compared with 17,950 yuan/mt on December 31, 2025, the average price rose by 1,700 yuan/mt in Q1, or 9.47%. The daily average price in Q1 2026 was 18,932.14 yuan/mt, up 1,320.74 yuan/mt, or 7.5% YoY, from 17,611.4 yuan/mt in Q1 2025. According to SMM price quotes: The EXW price of SMM magnesium alloy AZ91D on June 24 ranged from 18,250 to 18,350 yuan/mt, with an average of 18,300 yuan/mt, down 0.54% from the previous trading day. Currently, magnesium alloy prices are in the doldrums alongside magnesium ingot prices, with overall low trading sentiment. Fundamentals side: Supply side, magnesium alloy smelters have stable operating rates, ample spot supply in the market, and overall supply is loose; demand side, downstream die-casting plants show significant divergence in orders, with stable automotive orders, persistently sluggish two-wheeler orders, and alloy processing fees in the doldrums. Overall, the magnesium alloy market maintains a supply-strong-demand-weak pattern, with prices expected to remain in a weak consolidation phase in the short term.