According to Xinhua News Agency, the Islamic Republic News Agency reported on the 20th that the Islamic Revolutionary Guard Corps issued a statement saying that, despite extensive attention from Western media, the US Navy aircraft carrier Ford was deployed to the West Asia region but failed to provide support for US forces there and instead withdrew from the battlefield, reflecting the “desperate and humiliating” reality facing the US and Israel.

[SMM Lead Morning Meeting Summary: Coexistence of Energy Supply Pressure and Lead Ingot Inventory Buildup May Lead to Continued Price Consolidation] The escalation of geopolitical tensions in the Middle East, obstruction of major shipping routes, and expectations for rising transportation costs are anticipated to increase pressure on Europe's energy supply. After the domestic holiday, the lead market has experienced severe inventory buildup...

China Council for the Promotion of International Trade to Organize Delegation of Chinese Entrepreneurs to Visit U.S. February 28, Xinhua News Agency From the February routine press conference of the China Council for the Promotion of International Trade (CCPIT), it was announced that CCPIT will organize a delegation of Chinese entrepreneurs to visit the United States at an appropriate time. The visit aims to: Deepen province-state level economic cooperation between the two countries; Facilitate targeted collaboration between enterprises in investment, trade, technology, and other fields.

According to Xinhua News Agency, energy construction in south China remained active during the Chinese New Year. Major energy projects, including the Tibet-Guangdong DC project, the Huizhou Zhongdong Pumped Storage Power Station, and the Guilin Guanyang Pumped Storage Power Station under China Southern Power Grid, continued construction during the holiday. In Q1, China Southern Power Grid is expected to invest over 3 billion yuan to expand effective investment and strengthen development momentum through concrete actions.

Recently, the Administrative Approval Bureau of Ganzhou City issued a public notice on administrative approval applications, announcing that the environmental impact assessment (EIA) for the 15,000 mt/year lithium carbonate project (re-application) of Jiangxi Xiangnan New Energy Co., Ltd. has been approved. It is reported that the project is located in the Xinhua Industrial Zone of Dayu Industrial Park, Jiangxi Province, with a total investment of 2.1 billion yuan, including 25 million yuan for environmental protection, accounting for 1.19% of the total investment. The main investments in this project include 90 million yuan for equipment, 50 million yuan for working capital, and 70 million yuan for other purposes (including environmental protection investment). The main product is 15,000 mt/year of battery-grade lithium carbonate, with a by-product of 73,483.25 mt/year of sodium sulfate decahydrate.

Due to the pullback in coal prices, industry expectations for the profitability of the coal machinery sector have also decreased. A reporter from Cailian Press, acting as an investor, learned from multiple coal machinery producers that despite the intensified competition in the upstream coal machinery market caused by the decline in domestic coal prices, the coal machinery sector still maintains a relatively high market demand due to the high capacity utilisation rate of coal mines and the requirements for intelligent transformation of domestic coal mines. Meanwhile, the domestic coal machinery sector has intensified its efforts to expand into overseas markets in recent years, seeking new growth points. According to industry insiders, with the in-depth promotion of the "Belt and Road" Initiative, overseas demand for domestic coal machinery equipment is increasing, providing broad development space for Chinese coal machinery enterprises. Domestic coal machinery producers have successfully exported their products to regions such as Russia, Southeast Asia, Latin America, and Africa, achieving remarkable results in overseas market expansion. Coal Prices Pull Back, Domestic Coal Machinery Demand Stable with Prices Falling, Market Concentration Rising The coal market peaked at the beginning of last year, and coal prices have continued to fall this year. The Bohai-Rim Steam-Coal Price Index dropped from 731 yuan/mt at the beginning of the year to 669 yuan/mt, while the long-term agreement price of the Xinhua Coking Coal Price Index fell to around 1,000 yuan/mt, a decline of approximately 300 yuan/mt from the beginning of the year. The profitability of coal enterprises has pulled back, with China Shenhua Energy (601088.SH) reporting a net profit excluding non-recurring gains and losses of 11.705 billion yuan in Q1, a YoY decline of 28.89%, and Shanxi Coking Coal (000983.SZ) reporting a net profit excluding non-recurring gains and losses of 725 million yuan in Q1, a YoY decrease of 19.09%. Coal prices are a leading indicator of the prosperity of the coal machinery sector. A representative from Zhengzhou Coal Mining Machinery Group (601717.SH) stated, "Coal prices affect the production and operation of downstream customers, which in turn may influence their decisions on equipment procurement or maintenance." From the financial statements of coal machinery enterprises and the operating conditions of coal production enterprises, it can be seen that the demand for equipment from downstream coal enterprise customers remains relatively resilient, but product prices have pulled back, having a certain impact on the gross profit margins of coal machinery enterprises. A representative from Chuangli Group (603012.SH) stated, "The annual change in the number of mainframe sales is not particularly significant and basically tends to stabilize." In terms of prices, coal machinery products have indeed been impacted to a certain extent. To maintain market share, enterprises have more or less adopted price reduction strategies, as can be seen from the financial reports of relevant publicly listed firms. In Q1 this year, Tiandi Science & Technology (600582.SH) reported a gross profit margin on sales of 26.31%, a YoY decrease of 4.25 percentage points; Shandong Mining Machinery Group (002526.SZ) reported a gross profit margin on sales of 19.55%, a YoY decrease of 2.26 percentage points. The aforementioned representative from Chuangli Group explained that since last year, there has been a decline in revenue in the coal industry, which has also affected upstream coal machinery enterprises, mainly in terms of machine prices. Coal machinery equipment is a necessity for coal mines, but when the economic benefits of downstream coal mines decline, they may reduce procurement prices, thereby affecting gross profit margins. Additionally, another major reason why the current boom period for the coal machinery industry is longer than that for coal prices is the impact of policies. The intelligent transformation of coal mines has relatively extended the boom period for the domestic coal machinery industry. The "Guiding Opinions on Accelerating the Intelligent Development of Coal" issued by the National Energy Administration in 2020 required that large coal mines should basically achieve intelligence by 2025. The "Notice of the National Energy Administration on Further Accelerating the Intelligent Construction of Coal Mines to Promote High-Quality Development of the Coal Industry" issued in 2024 also set requirements for comprehensively promoting the intelligent development of coal mines under construction and the intelligent transformation of large coal mines and those with severe disasters. According to personnel from Zhengzhou Coal Mining Machinery Group Co., Ltd., currently, about 20-30% of coal mines nationwide have completed intelligent transformation, but the total capacity of mines that have achieved intelligence should have exceeded half. The remaining coal mines, which face greater difficulties in transformation or have poorer operating conditions, will also meet the minimum regulatory requirements for transformation. The intelligent transformation of domestic coal mines is required to be comprehensively promoted; it is just a matter of time. Furthermore, the increased technical requirements for intelligent coal mine equipment have also passively driven up the market concentration of top-tier enterprises. In the list of the top 50 Chinese coal machinery industry enterprises for 2024 released last month, the four major types of equipment produced by the top 50 coal machinery producers—shearers, roadheaders, scraper conveyors, and hydraulic supports—accounted for 91.55%, 87.4%, 76.78%, and 86.08% of the total statistics compiled by the association, respectively. Staff from Zhengzhou Coal Mining Machinery Group Co., Ltd. stated that in recent years, the market concentration of top-tier enterprises has been relatively high, and these enterprises have certain advantages in product quality and stability. Although the overall domestic market demand has stabilized and some demand has slightly declined, the company's market share and bid-winning rate have continued to increase. Export Value of Major Coal Machinery Equipment Doubles in Five Years, with Deeper Exchanges with Countries Along the "Belt and Road" The domestic coal machinery industry has achieved remarkable results in overseas market expansion over the past two years. Multiple coal machinery producers have stated that the international competitiveness of many Chinese coal machinery equipment has reached the world's leading level. The recognition and demand for Chinese coal machinery equipment in overseas markets have continued to grow, especially in countries along the "Belt and Road," where the products and services of Chinese coal machinery enterprises have been widely recognized. Le Bin, the executive director of Shanghai Huaxin Minfu Automatic Control Equipment Co., Ltd. (hereinafter referred to as Huaxin Minfu), who had just attended the 2025 Russia International Coal Mine Machinery Exhibition, told reporters from Cailian Press: "The company has intensified its efforts in overseas market expansion over the past two years, and the overseas sales of its products have continued to increase." The export value of major domestic coal machinery equipment has grown rapidly over the past five years. Customs data indicates that the export value of self-propelled coal (cutting) mining machines, rock drills, or tunnel boring machines (corresponding coal machinery categories: shearers, roadheaders) increased from 2.282 billion yuan in 2020 to 5.251 billion yuan in 2024, marking a 130% increase. The export value of belt-type continuous cargo conveyors or elevators (corresponding coal machinery category: scraper conveyors) rose from 3.873 billion yuan in 2020 to 8.904 billion yuan in 2024, showing an approximate 130% increase. The export value of hydraulic or pneumatic automatic regulating or controlling instruments and devices (corresponding coal machinery category: hydraulic supports) grew from 956 million yuan in 2020 to 1.432 billion yuan in 2024, approaching a 50% increase. These figures demonstrate the strong competitiveness and expanding market share of China's coal machinery equipment in overseas markets. Coal Machinery Export Data for the First Four Months of 2020-2025 (Data Source: Customs Statistical Data Query Platform) Behind the growth in export sales is the active "going global" step taken by domestic enterprises. An overseas exhibition organizer told a reporter from Cailian Press that in the past two years, there has been a significant change in the attitude of mining equipment enterprises towards participating in overseas exhibitions, with the number of enterprises participating in overseas exhibitions increasing year by year. Compared to the pre-pandemic period, the number of Chinese exhibitors at some overseas exhibitions has roughly doubled. This exhibition organizer has organized multiple groups of domestic coal mining machinery production enterprises to participate in coal mining machinery equipment exhibitions in countries such as Russia, South Africa, Australia, and Mexico this year. Le Bin, the executive director of Huaxin Minfu, shared his insights on the company's experience in developing the Russian market, stating that in recent years, there has been a rapid increase in demand for equipment in Russia. Previously, the country's coal machinery equipment was mainly sourced from European and American producers, but in recent years, due to changes in the international situation, most have now shifted to purchasing Chinese equipment. However, there are differences in equipment demand between the two countries. Russian coal enterprises do not have high requirements for intelligence, and their demand leans more towards traditional equipment. It will still take some time to promote certain new-type equipment. The company has been seeking partners in the country to continuously deepen its presence in the market. As domestic coal machinery enterprises rapidly expand in overseas markets, they are also gradually adapting to the differences between domestic and overseas markets. A representative from Zhengzhou Coal Mining Machinery Group stated that the company regards the international market as an important future growth source. However, overseas market demand is not particularly balanced, and most overseas mining is open-pit, resulting in relatively less demand for domestic underground mining equipment. Regarding how to expand overseas markets, Le Bin believes that overseas market promotion is a long-term endeavor that requires patience. It is not possible to open up a market by participating in just one or two exhibitions. Additionally, it is necessary to deeply integrate with the local market, such as by seeking local partners and adapting to the procurement habits of overseas end-user mining enterprises.

SMM News on June 11: Metal Market: As of the daytime close, domestic market base metals generally rose, with only SHFE lead declining, by 0.06%. SHFE aluminum and SHFE zinc both rose by over 1%, with SHFE aluminum up 1.25% and SHFE zinc up 1.23%. SHFE tin rose by 0.69%, while the fluctuations in the gains of other metals were relatively small. The main alumina contract closed flat at 2,895 yuan/mt, and the main aluminum casting contract rose by 0.91%. In addition, the main lithium carbonate contract rose by 1.68%, polysilicon rose by 0.72%, and silicon metal rose by 2.23%. The main European container shipping contract fell by 2.1%. In the ferrous metals series, prices rose collectively, with iron ore up 1%, rebar up 0.67%, and HRC up 0.78%. In the coking coal and coke sector, coking coal rose by 1.1%, and coke rose by 1.31%. In the overseas market, as of 15:06, only LME tin declined, by 0.08%, while other metals rose. LME aluminum and LME zinc both rose by over 1%, with LME aluminum up 1.26% and LME zinc up 1.19%. The fluctuations in the gains of other metals were relatively small. In precious metals, as of 15:06, COMEX gold rose by 0.44%, and COMEX silver rose by 0.14%. Domestically, SHFE gold rose by 0.56%, and SHFE silver fell by 0.28%. Market conditions as of 15:06 today 》Click to view SMM Market Dashboard Macro Front Domestic Aspect: [Announcement] The State Council Information Office will hold a press conference at 10:00 a.m. on Friday, June 13, 2025. Li Yongxia, Deputy Representative for International Trade Negotiations of the Ministry of Commerce, and Song Junji, Vice Governor of Shandong Province, will introduce the relevant situation of the 2025 Qingdao Summit for Leaders of Multinational Corporations and answer questions from reporters. [Average Annual Growth Rate of 14.2% Over 25 Years, China-Africa Trade Volume Exceeds 2 Trillion Yuan] On the occasion of the upcoming Fourth China-Africa Economic and Trade Expo in Changsha, Hunan Province, data released by the General Administration of Customs on June 11 showed that since the establishment of the Forum on China-Africa Cooperation in 2000, the total value of China's imports and exports with Africa has increased from less than 100 billion yuan that year to 2.1 trillion yuan in 2024, representing a cumulative growth of over 20 times and an average annual growth rate of 14.2%, fully demonstrating the strong vitality of China-Africa economic and trade cooperation. On the same day, the General Administration of Customs also released the 2024 China-Africa Trade Index, which rapidly climbed from a base value of 100 points in 2000 to a new high of 1,056.53 points in 2024. (Xinhua News Agency) The People's Bank of China conducted 164 billion yuan of 7-day reverse repo operations today, with an operating interest rate of 1.40%, unchanged from the previous rate. As 214.9 billion yuan of 7-day reverse repos matured today, a net withdrawal of 50.9 billion yuan was achieved. ► On June 11, the central parity rate of the RMB exchange rate in the interbank foreign exchange market was set at 7.1815 yuan per US dollar. US dollar: As of 15:06, the US dollar index rose by 0.12% to 99.17. Most economists believe that the US Federal Reserve will remain on hold for at least a few months, as the tariff policies of US President Trump may pose a lingering risk of reigniting inflation. The market will closely monitor the US inflation data to be released later on Wednesday. This report may reflect the economic impact of tariffs on price pressures and could potentially determine the trajectory of the US Fed's monetary policy for the remainder of the year. Macro: The World Bank's "Global Economic Prospects" report, released on Tuesday (June 10), clearly stated that global economic growth in 2025 will be only 2.3%, significantly lower than the pre-COVID-19 average and the lowest non-recessionary growth since the 2008 financial crisis. More concerningly, the average annual growth rate of global GDP is projected to be just 2.5% by 2027, marking the slowest pace since the 1960s. The report attributes this bleak outlook to rising trade barriers and "record-high uncertainty." Nearly 70% of economies worldwide are facing downward revisions to their growth forecasts, including the US, Europe, and several emerging market regions. Ayhan Kose, the World Bank's Deputy Chief Economist, vividly compared the situation in an interview, saying, "Uncertainty is like fog on the runway, hindering investment and dimming the economic outlook." This uncertainty not only weighs on global trade but also exerts significant pressure on consumption, investment, and financial market stability. (Huitong Finance) Today, data to be released include China's year-on-year growth rate of M2 money supply for May (time uncertain between June 11-17), China's year-to-date social financing scale for May (time uncertain between June 11-17), China's year-to-date new RMB loans for May (time uncertain between June 11-17), the US's year-on-year CPI growth rate for May (not seasonally adjusted), the US's year-on-year core CPI growth rate for May (not seasonally adjusted), the US's year-on-year energy CPI growth rate for May (not seasonally adjusted), the US's June IPSOS Primary Consumer Sentiment Index (PCSI), and Australia's ANZ consumer confidence index for the week ending June 8. Additionally, He Lifeng visited the UK from June 8 to 13 and held the first meeting of the China-US Economic and Trade Consultation Mechanism. Crude oil: As of 15:06, oil prices in both markets fell simultaneously, with US crude oil down by 0.11% and Brent crude oil down by 0.18%. According to CCTV News, on the 10th local time, Russian President Putin signed a decree extending countermeasures against the price cap imposed on Russian oil and oil products until December 31, 2025. Earlier, on December 27, 2022, Putin signed a presidential decree prohibiting the supply of Russian oil and oil products to foreign legal entities and individuals that directly or indirectly use a price cap mechanism in their contracts. This decree took effect on February 1, 2023, and its validity has been extended multiple times. As a major oil-producing country in the world, if Russia significantly reduces its oil exports in the future due to Western price caps, it could lead to an increase in energy prices in some EU countries. For some European countries, such sanctions only harm both sides equally; while others believe that the current price cap is not low enough and does not meet their expectations. For example, countries like Greece, Cyprus, and Malta, which rely heavily on the shipping industry, hope to raise the price cap to around $70 per barrel to alleviate the pressure on local enterprises. However, this is completely opposite to the views of Poland and the Baltic states, where some officials have even proposed setting the cap at $20 per barrel. Ukrainian President Zelenskyy, on the other hand, has called for a price cap of no more than $30 per barrel. The EIA released its monthly Short-Term Energy Outlook report, significantly raising its forecast for the crude oil market surplus in 2025. Its data shows that global oil inventories increased in the first five months of this year and will continue to grow significantly during the forecast period. The EIA expects global oil inventories to increase by an average of 8,000 barrels per day in 2025, which is 4,000 barrels per day higher than last month's forecast. The reason for the upward revision in the supply surplus forecast is the decline in oil demand from OECD countries in 2025, as well as the increase in supply growth from OPEC countries and non-OPEC countries. Additionally, the EIA emphasized that while no major supply disruptions are expected, oil supply risks still exist. From the inventory perspective, API data released early in the morning showed that US crude oil inventories decreased by 370,000 barrels in the week ending June 6. Although crude oil inventories have declined, the 370,000-barrel drop is far below analysts' expectations of 2 million barrels. More concerning is the continuous increase in refined product inventories, with gasoline inventories rising by 3 million barrels and distillate inventories increasing by 3.7 million barrels in the same week. Analysts had previously forecast that distillate inventories would increase by about 800,000 barrels and gasoline inventories by 900,000 barrels last week. The continued significant inventory buildup of gasoline and diesel in the US, exceeding expectations, has exerted downward pressure on oil prices. (Wenhua Comprehensive) SMM Daily Review ► Rare Earth Prices Decline Slightly, Transactions Remain Stagnant [SMM Rare Earth Daily Review] ► As Delivery Approaches, Spot-Futures Price Spread Narrows, Spot Market Transactions Remain Sluggish [SMM Daily Review]

SMM June 11 News: Metal Market: As of the midday close, domestic market base metals were mostly up, with SHFE copper rising 0.11%, SHFE zinc up 0.89%, SHFE aluminum up 1.18%, SHFE lead down 0.03%, SHFE tin up 0.81%, and SHFE nickel slightly up. In addition, the main continuous futures contract for foundry aluminum rose 0.78%, and alumina rose 0.21%. Lithium carbonate rose 0.73%, silicon metal rose 1.62%, and polysilicon fell 0.13%. The ferrous metals series all rose, with iron ore up 1.07%, rebar up 0.71%, and HRC up 0.81%. Stainless steel rose 0.16%. For coking coal and coke: coking coal rose 1.29%, and coke rose 1.12%. In the overseas metal market, as of 11:43, LME metals were all up, with LME zinc rising 0.56%, LME copper rising 0.17%, LME aluminum rising 0.9%, LME lead rising 0.33%, LME tin not yet opened, and LME nickel rising 0.27%. In precious metals, as of 11:43, COMEX gold rose 0.57%, and COMEX silver rose 0.32%; domestically, SHFE gold rose 0.65%, and SHFE silver fell 0.15%. As of the midday close, the most-traded contract for the Europe Containerized Freight Index fell 1.03%, closing at 2023.4. As of 11:43 on June 11, midday futures market movements for some contracts: 》SMM Metal Spot Prices on June 11 Spot and Fundamentals Copper: Today, spot #1 copper cathode in Guangdong was quoted at a premium of 30 yuan/mt to a premium of 150 yuan/mt against the front-month contract, with an average premium of 90 yuan/mt, up 30 yuan/mt from the previous trading day; SX-EW copper was quoted at a discount of 40 yuan/mt to a discount of 20 yuan/mt, with an average discount of 30 yuan/mt, up 30 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 79,305 yuan/mt, up 145 yuan/mt from the previous trading day, and the average price of SX-EW copper was 79,185 yuan/mt, up 85 yuan/mt from the previous trading day. Spot Market: Guangdong's inventory continued to decline, now for five consecutive days. It is reported that nearby smelters have exports, reducing supply... 》Click for details Macro Front Domestic: [Announcement] The State Council Information Office will hold a press conference at 10 a.m. on June 13, 2025 (Friday). Li Yongxia, Deputy Representative for International Trade Negotiations of the Ministry of Commerce, and Song Junji, Vice Governor of Shandong Province, will introduce the 2025 Qingdao Summit for Leaders of Multinational Corporations and answer questions from reporters. [Average Annual Growth Rate of 14.2% Over 25 Years, Sino-African Trade Volume Exceeds 2 Trillion Yuan] On the occasion of the upcoming Fourth China-Africa Economic and Trade Expo in Changsha, Hunan Province, data released by the General Administration of Customs on June 11 showed that since the establishment of the Forum on China-Africa Cooperation in 2000, China's total import and export value with Africa has increased from less than 100 billion yuan that year to 2.1 trillion yuan in 2024, a cumulative increase of over 20 times, with an average annual growth rate of 14.2%, fully demonstrating the strong vitality of Sino-African economic and trade cooperation. On the same day, the General Administration of Customs also released the China-Africa Trade Index for 2024. This index rapidly climbed from its base value of 100 points in 2000, reaching a new high of 1,056.53 points in 2024. (Xinhua News Agency) The People's Bank of China conducted reverse repo operations worth 164 billion yuan for 7 days today, with an operating interest rate of 1.40%, unchanged from the previous rate. As reverse repo operations worth 214.9 billion yuan for 7 days matured today, a net withdrawal of 50.9 billion yuan was realized. ► The central parity rate of the RMB exchange rate in the interbank foreign exchange market on June 11 was 7.1815 yuan per US dollar. US dollar: As of 11:43, the US dollar index rose by 0.07% to 99.12. Most economists believe that the US Federal Reserve will remain on hold for at least a few months, as the tariff policies of US President Trump may pose a lingering risk of reigniting inflation. The market will closely monitor the US inflation data to be released later on Wednesday. This report may reflect the economic impact of tariffs on price pressures and could determine the trajectory of the Fed's monetary policy for the remainder of the year. Data: The World Bank's "Global Economic Prospects" report, released on Tuesday (June 10), clearly stated that global economic growth in 2025 will be only 2.3%, significantly lower than the pre-pandemic average and the lowest non-recessionary growth rate since the 2008 financial crisis. More concerningly, the average annual growth rate of global GDP is expected to be only 2.5% by 2027, marking the slowest pace since the 1960s. The report attributed this bleak outlook to rising trade barriers and "record-high uncertainty." Nearly 70% of economies worldwide are facing downward revisions to their growth forecasts, including the US, Europe, and several emerging market regions. Ayhan Kose, the World Bank's Deputy Chief Economist, vividly compared the situation in an interview: "Uncertainty is like fog on the runway, hindering investment and dimming the economic outlook." This uncertainty not only weighs on global trade but also exerts significant pressure on consumption, investment, and financial market stability. (Huitong Finance) Data to be released today include China's M2 money supply annual growth rate for May (time uncertain between June 11-17), China's total social financing for the year to date as of May (time uncertain between June 11-17), China's new RMB loans for the year to date as of May (time uncertain between June 11-17), the US's unadjusted annual CPI rate for May, the US's unadjusted annual core CPI rate for May, the US's unadjusted annual energy CPI rate for May, the US's June IPSOS Primary Consumer Sentiment Index (PCSI), and Australia's ANZ Consumer Confidence Index for the week ending June 8. In addition, He Lifeng visited the UK from June 8 to 13 and held the first meeting of the China-US Economic and Trade Consultation Mechanism. Crude oil: As of 11:43, crude oil futures fluctuated rangebound, with US crude oil down 0.06% and Brent crude oil down 0.13%. Weak global oil demand and increased production by OPEC have put pressure on the market, weighing on oil prices. On Wednesday evening, the market will focus on the weekly US oil inventory report released by the US Energy Information Administration (EIA). Analysts expect that US crude oil inventories are likely to decrease by 2 million barrels in the week ending June 6, while distillate and gasoline inventories may increase. Data released by the American Petroleum Institute (API) showed that US crude oil inventories fell last week, while gasoline and distillate inventories rose. The API report indicated that US crude oil inventories decreased by 370,000 barrels, gasoline inventories increased by 3 million barrels, and distillate inventories increased by 3.7 million barrels in the week ending June 6. (Webstock Inc.) Spot market overview: ► Inventories fell for five consecutive weeks; suppliers refused to budge on prices, but actual transactions were average. [SMM South China spot copper] ► Shanghai zinc: Futures market rebounded MoM, downstream purchases weakened. [SMM midday review] ► As delivery approaches, spot-futures price spread narrows, and transactions in the spot market are sluggish. [SMM daily review] Midday reviews of other metal spot markets will be updated later. Please refresh to view.

During the 618 shopping festival, the "national subsidy" for home appliances in many regions has shifted from a unified subsidy to a voucher-based subsidy. A reporter from Cailian Press visited home appliance stores in Jiangsu, Guangdong, and other regions and learned that the relevant "national subsidy" discounts have entered a "scramble" mode. During interviews, industry practitioners often responded with terms like "limited quantity" and "quota allocation." Meanwhile, in Chongqing, Hubei, and other regions, the "national subsidy" for consumer goods, including home appliances and renovation products for kitchens and bathrooms, under the trade-in program, has been suspended or adjusted. As an important measure to expand domestic demand and boost consumption, the trade-in subsidy policy has effectively driven sustained consumption rebound and improvement. Data from the Ministry of Commerce shows that since the beginning of this year, the sales volume of consumer goods under the trade-in program has exceeded RMB 1 trillion. The "braking" of the "national subsidy" may be related to the depletion of subsidy funds. Announcements from multiple regions mention: "The subsidy amount applied for in this batch has reached the limit" and "The subsidy funds for this round have been fully utilized." However, market analysts believe this is a temporary situation, and a new round of subsidies may be restarted. Jiangsu's "national subsidy" requires "queuing for quota," with digital products being "hard to come by" Cailian Press reporters have noticed that on major online shopping platforms, the national subsidy in Jiangsu is currently temporarily unavailable for collection and use. A local consumer told the reporter that they had their eye on an Apple smartwatch and wanted to see if there would be a better deal during the 618 shopping festival. "But then I found out the subsidy was suspended, so I canceled my purchase plan. After all, it's not a necessity, so I just considered it money saved." Offline, Cailian Press reporters visited multiple large electronics and appliance malls and brand stores in Nanjing, Jiangsu, and learned that the widespread national subsidies for home appliances and 3C digital products have been suspended since June 1. However, this is not a complete halt but rather a "quota-based" management approach. When asked whether and when there would be a new round of widespread national subsidies, the interviewed merchants all expressed that they were unaware or had not received any notifications. Cailian Press reporters learned that if consumers wish to use the national subsidy, the specific process is as follows: First, register and queue at the merchant where they intend to make a purchase, then wait for the merchant to "scramble" for the allocated subsidy quota on the relevant platform, and finally, the merchant will notify the consumer to proceed with payment for the order. The waiting time for this process is uncertain and depends on factors such as the merchant's success in securing the quota and the number of people in the queue. At a Gree counter in a JD.com electronics mall, a salesperson told the reporter that if consumers want to use the national subsidy, they may need to wait in line for 2-3 months. "Consumers don't need to scramble for this national subsidy; we'll do it for them. However, the quota allocated to each store is limited, and we can't guarantee when we'll be able to secure the quota." At a Hisense TV counter, a salesperson also mentioned that waiting in line for the national subsidy might take several months. "I'm not sure if you can wait that long. If you have a current need, it's better to just buy it directly," they said. However, since it's currently the 618 shopping festival period, even without using the national subsidy, most stores are offering relatively favorable selling prices. One of the main promoted products at the aforementioned Gree counter is a 1.5-horsepower, first-tier energy efficiency split-type air conditioner, priced at over 6,000 yuan. According to the salesperson, it has relatively comprehensive functions and a higher price among similar products in the store. Currently, after discounts (without using the national subsidy), the actual selling price is less than 4,000 yuan. However, not all products have such significant discounts. A similar product priced at over 4,000 yuan nearby has a selling price after discounts that is close to the aforementioned higher-priced product. It's worth noting that salespeople at different stores have varying views on the "quota" and estimates of waiting times. At a Midea counter in a Suning.com store, a salesperson told reporters that after queuing, it might only take a few days to use the national subsidy. "We just secured a quota of 100,000 yuan this morning. I predict that if you register and queue now, you'll receive a notification soon. It's still very cost-effective to enjoy the national subsidy on top of the discounted price," they said. On the other hand, reporters learned on-site that currently, the subsidy quota management for 3C digital products like mobile phones in the Jiangsu region is much stricter than for home appliances. At this stage, consumers can hardly use the national subsidy to purchase digital products. At various digital brand stores, reporters found that unlike the previous sales strategy of directly informing consumers about the post-subsidy prices, salespeople are no longer proactively mentioning the national subsidy. If asked whether the national subsidy can be used, most salespeople will directly state that it has been suspended and then introduce the current in-store promotional activities. However, at a Xiaomi Home store, a salesperson told reporters that there is actually still a national subsidy for digital products, but the quota is extremely limited. "I think it can be considered negligible. We don't expect to secure it at all. You can just treat it as non-existent. The quota for appliances is larger than that for digital products. If you're buying appliances, it might be worth waiting in line," they said. After Jiangsu suspended the widespread national subsidy, merchants of 3C digital products like mobile phones have also been actively launching promotional activities, hoping to maintain consumers' purchasing enthusiasm in this way. At the aforementioned Xiaomi Home store, except for products that have just been released, almost all other mobile phones are available with discounts. At an Apple counter in a JD.com appliance store, a salesperson told reporters that previously, the national subsidy policy for mobile phones only covered products priced below 6,000 yuan, so most mobile phone products in the Apple store were ineligible. The recent 618 selling prices have hit the lowest levels in store history. For instance, the iPhone 16 Pro and iPhone 16 Pro Max models offer a 2,000-yuan discount across all storage variants compared to their launch prices. Multiple Regions Temporarily Halt National Subsidies, Potential Reboot in H2 Jiangsu's subsidy suspension is not an isolated case, with Chongqing, Hubei, and Guangdong also experiencing temporary unavailability of national subsidies. Caixin reporters found that Guangdong's consumer goods trade-in public service platform posted a notice on June 5, 2025, suspending discount vouchers for the "Guangzhou Home Improvement & Kitchenware Campaign" until further notice. On JD.com, Chongqing's home appliance subsidy page displayed "activity under upgrade" with unavailable vouchers during the transition, while Hubei's smart home subsidies were similarly paused. The Chongqing Commerce Commission confirmed that Phase 1 subsidy funds were fully utilized by June 3, with Phase 2 policies still under formulation. Can physical stores honor subsidies? Stores in Guangzhou told Caixin that vouchers could be used if successfully claimed. "Quantities are now limited. WeChat mini-program vouchers sell out quickly each morning, though UnionPay may have residual stock," said one retailer. Initial ample funding is nearing depletion, creating a first-come-first-served scenario. Midea Smart Home staff noted no customer complaints about voucher availability under normal circumstances. This year's expanded "program of large-scale equipment upgrades and consumer goods trade-ins" allocated 300 billion yuan from ultra-long special bonds for trade-in initiatives. Subsidies are accelerating market impact. Ministry of Commerce data shows that by May 31, 2025, the trade-in program generated 1.1 trillion yuan in sales across five categories, distributing 175 million direct consumer subsidies. Breakdown: 49.863 million consumers purchased 77.618 million home appliances; 53.529 million bought 56.629 million digital devices; and 57.626 million home improvement orders were completed. AVC noted that 2025's recovering consumer market and frequent promotions drove rapid subsidy utilization, with H1 expenditure projected at 70% of total funds. Judging from the responses of relevant departments in regions where the policy has been suspended, the "national subsidy" may not come to an end. The Chongqing Municipal Commission of Commerce stated that the second phase of the trade-in subsidy policy is expected to be introduced in early June. A relevant official from the Jiangsu Provincial Department of Commerce responded to the media, stating that currently, some platforms are undergoing rectifications or system upgrades. After adjustments, consumers will be able to receive and use the subsidies normally, and each platform and merchant will implement quota management. Xiao Yunxuan, an analyst from the Major Home Appliances Department of AVC Revo, stated that the early national subsidy policies primarily focused on inclusive subsidies, aiming to rapidly activate the market through a "flood-like" approach. However, as the rate of fund depletion far exceeded expectations, the policy model urgently needed transformation. The "quota allocation" model pioneered by Jiangsu is becoming an important reference for national policy adjustments. This model precisely controls the pace of fund depletion through daily and monthly fund limits, combined with a phased subsidy distribution mechanism. This shift alleviates the pressure on local governments for audit and write-off, reduces the risk of fund misuse, and forces enterprises to abandon the competitive strategy of blindly pursuing subsidy amounts. Instead, they are shifting towards rational competition that focuses more on market demand and product value, promoting the industry's transformation towards high-quality development. It is worth noting that Ding Lin, Deputy Director-General of the General Office of the National Development and Reform Commission (NDRC), mentioned at the "China Economic Roundtable" recently launched by Xinhua News Agency that the allocation of funds for accelerating the trade-in of consumer goods should be expedited, and the process for applying for subsidies should be simplified. The second half of the "national subsidy" may be just around the corner.

【50,000-ton Battery Recycling Project Launched in Jiangxi】 On May 26, the Ganzhou Administrative Examination Bureau in Jiangxi Province published the EIA acceptance notice for a "Power Battery Disassembly and Crushing Project (Phase I)" by a local company. Located in Dayu County’s Xinhua Industrial Park, the project’s total investment is ¥500 million (Phase I: ¥80 million). Phase I will process 25,000 tons of spent ternary lithium batteries annually, with Phase II adding equal capacity. Using spent ternary batteries as feedstock, the process includes testing, discharging, shredding, pyrolysis, crushing, and screening to recover mixed electrode powder, copper, and aluminum.