The 2025 2nd SMM Southeast Asia Automotive Supply Chain Conference was successfully held, featuring the on-site launch of 10 new car models, Southeast Asia brand strategies from three automakers, and SMM's local steel prices in Thailand. The event facilitated efficient matchmaking between 12+ buyers and 60+ suppliers, and preliminarily established a communication platform for the entire industry chain of Southeast Asian automotive. Currently, the NEV industry in Southeast Asia is entering a critical development phase. Thailand, Indonesia, and Vietnam each have their own strategic layouts and breakthroughs, while the industry also faces challenges such as supply chain restructuring, competition over technology roadmaps, and localization compliance. Thanks to the support of all parties, SMM's local pricing systems in Thailand and Indonesia have been implemented and adopted by core enterprises, establishing a credible cost benchmark for the industry. The 2026 3rd Conference will focus on three core themes: exploring the NEV auto sales potential in Southeast Asia; connecting the last mile of the supply chain and integrating regional industry chain resources; and advancing SMM's Southeast Asia metal pricing from a price reference to a transaction benchmark, implementing electrification material procurement applications, and establishing an executable pricing system. We firmly believe that true progress comes from turning consensus into action. At this conference, BEST cordially invites you to gather again in Bangkok to transform strategic blueprints into market competitive advantages, to witness and participate in this extraordinary and far-reaching industry event, and to co-create a brilliant new chapter! Click the to register now. Booth No.: B04 BEST was established in 1997 and listed on the ChiNext Board of the Shenzhen Stock Exchange in 2017. As a national high-tech enterprise with 1,400 employees, it has been deeply engaged in the precision manufacturing field for nearly 30 years. Its three core businesses include: precision parts for traditional automobiles, high-end tooling and fixtures, and intelligent equipment; core components for NEVs, hydrogen fuel cells, energy storage, and liquid cooling for computing centers; and high-precision linear motion functional components for industrial machine tools and humanoid robots. Wuxi Best Precision Machinery Co., Ltd., established in 1997 and listed on the Shenzhen in 2017, is a national high-tech enterprise with 1,400 employees. It has been deeply involved in the precision manufacturing field for nearly 30 years. Its main businesses include three core areas: precision parts for traditional automobiles, high-end tooling and fixtures, and intelligent equipment; core components for new energy vehicles, hydrogen fuel cells, energy storage, and liquid cooling for computing centers; and high-precision linear motion functional components for industrial machine tools and humanoid robots. The company has three major production sites in Wuxi, Anhui, and Thailand, achieving large-scale R&D and mass production. It possesses a fully vertical industry chain encompassing mold making, casting, and machining, with annual revenue exceeding 1.5 billion yuan. Its clients include globally renowned enterprises such as Garrett, Cummins, and BMW. In 2024, it established BYH New Technology Co., Ltd. in the AMATA Industrial Park (Phase II) in Chonburi, Thailand, covering an area of 80,000 m², specializing in precision casting and machining. The company has three major production sites in Wuxi, Anhui, and Thailand, achieving large-scale R&D and mass production. It possesses a fully vertical industry chain encompassing mold making, casting, and machining, with annual revenue exceeding 1.5 billion yuan. Its clients include globally renowned enterprises such as Garrett, Cummins, and BMW. In 2024, it established BYH New Technology Co., Ltd. in the AMATA Industrial Park (Phase II) in Chonburi, Thailand, covering an area of 80,000 m², specializing in precision casting and machining. Main Products Leveraging its mature processes, comprehensive quality control, and intelligent workshops, the company provides customized products and intelligent manufacturing solutions. It sincerely invites clients from all sectors to discuss cooperation and achieve win-win development! Leveraging its mature processes, comprehensive quality control, and intelligent workshops, the company provides customized products and intelligent manufacturing solutions. It sincerely invites clients from all sectors to discuss cooperation and achieve win-win development! Contact Contact Contact Us Wu Chaojun wuchaojun@smm.cn

In January–April, total retail sales of consumer goods reached 16,494.1 billion yuan, up 1.9% YoY. Of this, retail sales of consumer goods excluding automobiles totaled 15,205.3 billion yuan, up 3.1%. In April, total retail sales of consumer goods reached 3,724.7 billion yuan, up 0.2% YoY. Of this, retail sales of consumer goods excluding automobiles totaled 3,421.8 billion yuan, up 1.8%.

According to NBS data, from January to April, the value added of industrial enterprises above designated size grew 5.6% YoY in real terms (all value-added growth rates are real growth rates after deducting price factors). In April, the value added of industrial enterprises above designated size grew 4.1% YoY. On a MoM basis, the value added of industrial enterprises above designated size in April increased 0.05% from the previous month. By three major sectors, in April, the value added of the mining industry grew 3.8% YoY, manufacturing grew 4.0%, and the production and supply of electricity, heat, gas, and water grew 5.3%. By economic type, in April, the value added of state-holding enterprises grew 3.0% YoY; joint-stock enterprises grew 4.2%, foreign-invested and Hong Kong, Macao, and Taiwan-invested enterprises grew 4.1%; and private enterprises grew 2.8%. By industry, in April, 29 out of 41 major industrial categories maintained YoY growth in value added. Among them, coal mining and washing grew 3.8%, oil and natural gas extraction grew 4.6%, agricultural and sideline food processing grew 3.5%, liquor, beverages, and refined tea manufacturing declined 1.4%, textiles grew 2.3%, chemical raw materials and chemical products manufacturing grew 5.3%, non-metallic minerals products manufacturing declined 6.5%, ferrous metals smelting and rolling processing grew 1.0%, non-ferrous metals smelting and rolling processing declined 1.0%, general equipment manufacturing grew 5.5%, special equipment manufacturing grew 6.2%, automobile manufacturing grew 9.2%, railway, shipbuilding, aerospace, and other transportation equipment manufacturing grew 8.2%, electrical machinery and equipment manufacturing grew 3.1%, computer, communication, and other electronic equipment manufacturing grew 15.6%, and electricity and heat production and supply grew 6.2%. By product, in April, 321 out of 626 products of industrial enterprises above designated size recorded YoY growth in production. Among them, steel products (122.63 million mt, down 1.7% YoY), cement (145.71 million mt, down 10.8%), ten kinds of non-ferrous metals (6.94 million mt, up 2.8%), ethylene (3.15 million mt, down 4.1%), automobiles (2.564 million units, down 2.6%), of which NEVs (1.296 million units, up 3.8%); power generation (744 billion kWh, up 2.6%); and crude oil processing volume (54.65 million mt, down 5.8%). In April, the sales ratio of products of industrial enterprises above designated size was 97.1%, down 0.2 percentage points YoY; the export delivery value of industrial enterprises above designated size reached 1,373.3 billion yuan, up 10.6% YoY in nominal terms.

Capacity side, according to incomplete statistics, China's alkaline electrolyzer market remained at 43.77 GW, and the PEM electrolyzer market remained at 2.7 GW. This week, no offline public delivery data was available. Project-related updates: Heilongjiang Jiayirongyuan Green Chemical Co., Ltd.: China Chemistry Tianchen Company signed an EPC general contracting contract with Heilongjiang Jiayirongyuan Green Chemical Co., Ltd., a subsidiary of Jiaze New Energy, for the 300,000 mt green hydrogen-methanol-aviation fuel chemical co-production project in Jidong County, Jixi City, Heilongjiang Province. The project has a total investment of approximately 3.557 billion yuan and is a key project under the national "dual carbon" strategy. Using agricultural and forestry waste as raw material and adopting biomass gasification and cellulose fermentation technologies, the project plans to produce 240,000 mt of green methanol and 80,000 mt of green ethanol annually, with flexible switching to 50,000 mt/year of sustainable aviation fuel (SAF). The project plans to commence production by the end of 2027, consuming over 1.5 million mt of agricultural and forestry waste annually. Shandong Expressway Service Development Group Co., Ltd.: The PEM electrolysis hydrogen production and energy storage section of the Phase II comprehensive utilization project at Gaomi Service Area Hydrogen Refueling Station released its bid-winning announcement, with Guofu Hydrogen Energy winning the bid at 21.2724 million yuan. The project is part of the Ministry of Science and Technology's "Hydrogen into Homes" demonstration program, undertaken by Shandong Expressway Service Development Group, and is located in the south area of Gaomi Service Area, aiming to build an integrated demonstration station for PV hydrogen production and hydrogen refueling. The project comprises three segments: alkaline hydrogen production, PEM hydrogen production and energy storage, and hydrogen refueling station. Currently, the alkaline hydrogen production section has been completed, and the hydrogen refueling station is under construction. The PEM hydrogen production capacity in this phase is 100 Nm³/h with a rated power of 200 kW, equipped with electrolysis skids, compressors, hydrogen storage cylinder groups, and control systems. The designed construction period is 120 days, and the project will improve the green electricity hydrogen production and energy storage facilities at the expressway service area, supporting the construction of zero-carbon hydrogen expressways. Mingtuo (Inner Mongolia) Comprehensive Resource Utilization Co., Ltd.: The e-SAF (electro-sustainable aviation fuel) project officially received filing approval. The project is located in Jiuyuan Industrial Park, Baotou City, on an industrial planning plot north of Mingtuo Chromium Industry's plant and west of Hengtai Road, with a total investment of 1.8 billion yuan. The plan is to build a 150,000 mt/year electro-sustainable aviation fuel production line, along with supporting facilities including gas pretreatment, synthesis, hydrorefining, fractionation, tank farms, pump stations, and related auxiliary facilities. The project plans to start construction in April 2027 and be completed and put into operation in April 2029. Xinjiang Shengxiong Energy Co., Ltd.: The EPC project for the 5,000 Nm³/h waste coal gas green hydrogen extraction and comprehensive utilization by Xinjiang Shengxiong Energy has fully completed construction tasks, with the full-process commissioning successfully completed in one run, and is now officially ready for production and operation. The project adopts advanced green hydrogen extraction technology, using industrial waste coal gas as raw material to achieve efficient resource conversion of tail gas and produce high-purity clean hydrogen energy. After commissioning, it can extend the coal chemical industry chain, improve the utilization rate of industrial by-product resources, reduce pollutant emissions, and provide a stable hydrogen source for the enterprise's methanol units, achieving synergistic improvement in economic, ecological, and social benefits. Wolong Innorde (Zhejiang) Hydrogen Energy Technology Co., Ltd.: The company successfully won the bid for the Binyang County, Guangxi green electricity hydrogen production pilot construction project (100 Nm³/h AEM hydrogen production equipment) and has officially signed the contract, marking an important breakthrough in the company's market expansion in the green electricity hydrogen production field and laying a solid foundation for further business development in the South China region. The project was initiated by Kunpeng Water, a Guangxi local state-owned enterprise, and is the first AEM technology green electricity hydrogen production project in Guangxi. It completed filing in March 2026 and aims to leverage green electricity resources to conduct hydrogen production pilot trials, supporting regional energy structure transformation and industrial decarbonization. Wuhan Institute of Rock and Soil Mechanics, Chinese Academy of Sciences: China's first million-cubic-meter-level salt cavern hydrogen storage demonstration project, led by the institute, was officially put into operation in Pingdingshan City, Henan Province. The project is China's first hydrogen storage facility built in bedded salt rock formations, which explored the multi-scale migration patterns of hydrogen in ultra-low permeability rock salt, overcame the core technology of precise site and layer selection for salt cavern hydrogen storage, and effectively verified the long-term sealing performance and engineering feasibility of hydrogen storage in bedded salt rock. Baimahu Laboratory Hydrogen Energy (Changxing) Co., Ltd.: The Baimahu Laboratory Changxing Hydrogen Energy Base liquid hydrogen test platform installation and commissioning project released a tender announcement. The project is located in Meishan Town, Changxing County, Huzhou City, with a total estimated investment of 310 million yuan and a land area of 68 mu. The project budget is 55.0906 million yuan, with construction and installation costs of approximately 51.1045 million yuan, and will build testing platforms for key equipment such as liquid hydrogen valves, storage tanks, and flow meters. The tender scope covers process, electrical, automation control, and equipment installation and commissioning. The planned construction period is 210 calendar days, and consortium bidding is allowed (no more than 2 members). Xindao Hydrogen Energy Technology (Baotou) Co., Ltd.: The Guyang County 200,000 mt/year hydrogen-based green fuel (green methanol) off-grid green electricity direct-connection project officially commenced construction. Located in Jinshan Economic Development Zone, Guyang County, Baotou City, the project is Xindao Energy's first demonstration project in the hydrogen-based green fuel field, with a total investment of 5.1 billion yuan, covering 600 mu. It will be built in three phases, with full completion and commissioning planned for 2028. The energy side is configured with 390 MW off-grid wind power and 100 MW off-grid PV, coupled with biomass waste heat power generation and flywheel energy storage, building an integrated "electricity-hydrogen-carbon-methanol" system to address the challenges of off-grid green electricity fluctuations and stable operation of chemical units, achieving efficient green methanol synthesis. Shenneng Northern (Etuoke Front Banner) Energy Development Co., Ltd.: The electrolysis hydrogen production station project for the Etuoke Front Banner wind and solar power hydrogen production integrated green ammonia synthesis project completed filing. The project is located in the Energy and Chemical Zone of Shanghaimiao Economic Development Zone, Etuoke Front Banner, Ordos City, with clearly defined boundaries and a total investment of 1.3265 billion yuan. The project plans to build a water electrolysis hydrogen production station with an annual output of approximately 20,000 mt of green hydrogen, using PEM proton exchange membrane electrolyzers as the primary equipment, supplemented by ALK alkaline electrolyzers and AEM anion exchange membrane electrolyzers. This approach integrates the advantages of multiple technology pathways to adapt to the fluctuation characteristics of new energy power. Supporting facilities including gas-liquid separation, hydrogen purification, hydrogen storage, water treatment, step-down substations, and fire safety and security systems will also be constructed. After completion, the station will operate in strict compliance with renewable energy hydrogen production industry safety standards. The project plans to commence construction in December 2026 and be completed in December 2028. Goldwind Green Energy Hydrogen Technology (Xing'an League) Co., Ltd.: The Xing'an League Goldwind Science&Technology Wind Power Hydrogen Production (Phase III) Project officially obtained filing approval. Located in the Xing'an League Economic Development Zone of Inner Mongolia, the project has a total investment of 2 billion yuan. The project mainly involves the construction of hydrogen production, compression, gas storage, air separation units, and related supporting facilities, with a hydrogen production capacity of 160,000 standard cubic meters per hour. Construction plans to commence in September 2026, with completion and commissioning in September 2028. Inner Mongolia Huadian Huayang Hydrogen Technology Co., Ltd. : The Inner Mongolia Huadian Damaoqi 1 million kW Wind and Solar Power Integrated Hydrogen Production Project released a tender announcement for technical services on a special study on short-circuit ratio improvement. Located in Damaoqi, Baotou City, Inner Mongolia, the first phase plans to build 1 million kW of new energy installed capacity, including 700 MW of wind power and 300 MW of PV, equipped with 70 units of 10 MW wind turbines and 710-740Wp half-cell double-glass N-type PV modules. The project will also construct a 100MW/200MWh LFP battery ESS power station, two 220 kV step-up substations, and collector lines. Multiple alkaline electrolyzer hydrogen production systems are planned, with an annual green hydrogen production capacity of 47,000 mt, supported by 25 units of 2,000 m³ hydrogen gas spherical tanks with a hydrogen storage capacity of 650,000 standard cubic meters, along with a new 220 kV hydrogen production main step-down substation. The tendered services are required to be completed within 45 days from the date of contract signing. Jiangsu Lanze Energy Technology Co., Ltd.: The Dafeng District Bureau of Natural Resources and Planning released a pre-approval public notice for the Lanze Dafeng Port 300,000 mt/year green methanol project. The project is located in the Petrochemical Industrial Park of Dafeng Port Economic Development Zone, Dafeng District, Yancheng City. This public notice mainly involves minor adjustments and optimizations to the dimensions, areas, names, and heights of certain buildings and structures. Beijing Hydrogenergy Technology Co., Ltd. : The company won the bid for the PEM pure water electrolysis hydrogen production equipment procurement project of the Electric Power Research Institute of State Grid Jiangxi Electric Power Co., Ltd., responsible for equipment production, supply, transportation, and subsequent supporting services. The PEM hydrogen production unit awarded in this bid will be used to verify the response characteristics of PEM hydrogen production systems under green electricity fluctuation conditions, accumulating measured operational data for flexible load regulation of the power grid. As one of the earliest PEM hydrogen production research-type units deployed in the Jiangxi power grid system, this project will also provide important technology selection references for the subsequent construction of regional hydrogen energy storage demonstration stations. Datang Jingtai Wind Power Co., Ltd.: Datang released a tender announcement for technical services on the preparation of a feasibility study report for a wind-solar coupled off-grid hydrogen production demonstration project, located in Baiyin District, Baiyin City, Gansu Province. The project plans to build a new 21 MW wind-solar coupled hydrogen production power station, including 14 MW of wind power and 7 MW of PV, with a supporting 5MW/5MWh grid-forming ESS, along with a 12 MW hydrogen production station. The station will selectively deploy ALK, AEM, PEM, and SOEC multi-type electrolyzer equipment, with green hydrogen output required to meet the national standard for ultra-pure hydrogen. The project will also include supporting construction of hydrogen buffer tanks, compression and filling systems, as well as auxiliary facilities such as desalinated water stations, air compressor stations, and control buildings. Longyuan Power Longyuan (Zhangye) New Energy Development Co., Ltd.: The company initiated open procurement for 500 standard cubic meter PEM electrolyzer hydrogen production equipment and ancillary equipment for the Zhangye Carbon Neutrality Industrial Base Wind-Solar-Hydrogen-Storage Integration Project. Located in the Circular Economy Demonstration Park of Zhangye Economic and Technological Development Zone, Gansu Province, this is also the first green electricity hydrogen production project deployed by China Energy Investment Corporation in Gansu Province. Policy Review 1. The General Office of the Ministry of Industry and Information Technology and other departments jointly issued the Guidelines for Green Design of Industrial Products (2026 Edition). The Guidelines mention: developing green design solutions. Focusing on industries including automobiles, construction machinery, machine tools, bearings, wind power equipment, hydrogen energy equipment, PV, lithium batteries, household appliances, packaging, cleaning products, textiles, biomanufacturing, methanol, and tires, and targeting key directions of green design, the aim is to develop green design solutions that are technologically advanced, economically feasible, and supply-demand compatible, forming a batch of replicable and scalable exemplary green design solutions. The initiative will cultivate green design solution providers with high professional standards and strong service capabilities, building a virtuous ecosystem of "demand-driven—solution development—industrial application." 2. The General Office of the CPC Central Committee and the General Office of the State Council issued the Opinions on Achieving Higher-Level and Higher-Quality Energy Conservation and Carbon Reduction. The document aims to use transportation energy conservation and carbon reduction and green energy transition as two key drivers, coordinating low-carbon development with energy security, and accelerating the construction of a clean, low-carbon, safe, and efficient modern energy and transportation system. Enterprise Updates Guohua Investment Mengxi Branch: China's first heavy-haul railway hydrogen refueling station, the Batuta Hydrogen Refueling Station, achieved a cumulative hydrogen refueling volume exceeding 10,000 kg, marking a milestone in the scaled application of hydrogen energy in China's heavy-haul railway sector. Located at the Hailesuhao South Station in Ejin Horo Banner, Ordos City, Inner Mongolia, the station is a key hydrogen energy industry demonstration project of Guohua Investment, with a daily hydrogen refueling capacity of 500 kg. It primarily provides hydrogen refueling services for large power hydrogen-powered shunting locomotives and hydrogen fuel cell plus lithium battery zero-emission catenary maintenance vehicles, accumulating valuable demonstration experience for the green and low-carbon transformation of heavy-haul railways. Tianjin Zhonghe Energy Management Co., Ltd.: The world's first 5 MW anion exchange membrane (AEM) water electrolysis hydrogen production system completed installation and commenced commissioning, marking the official entry of megawatt-scale AEM technology into the industrial application stage. Beijing Mingyang Hydrogen Technology Co., Ltd. : The company received written authorization from the American Society of Mechanical Engineers (ASME), successfully obtaining the manufacturing license and quality certification under the ASME Boiler and Pressure Vessel Code. Guangzhou Yunfu Hydrogen Technology Co., Ltd.: The company officially opened in Baiyun District, Guangzhou. Yang Qiang, Chairman of Yuntao Hydrogen, Ding Leizhe, Executive Vice President of Guofu Hydrogen, along with representatives from the government and partners attended the ceremony. Yunfu Hydrogen was jointly established by Guangdong Yuntao Hydrogen and Jiangsu Guofu Hydrogen, focusing on R&D, integrated manufacturing, and services for core hydrogen energy equipment, with the goal of building a leading hydrogen energy equipment industrialisation hub in South China. The project has a total investment of 500 million yuan, with a Phase I workshop of approximately 1,300 m², primarily engaged in vehicle-mounted high-pressure hydrogen supply systems and core equipment integration for hydrogen refueling stations. Shaanxi Hydrogen Energy Industry Development Co., Ltd.: The company held a discussion and exchange meeting with the Shenmu Municipal Government and officially signed an investment cooperation framework agreement. At the meeting, Liu Wei, Deputy Secretary of the Party Committee and General Manager of Shaanxi Hydrogen Energy, and Han Xiujin jointly signed the agreement. Both parties conducted in-depth exchanges on hydrogen energy industry development planning and key project cooperation, reaching a cooperation consensus. Heads of relevant departments of the Shenmu Municipal Government, as well as heads of relevant departments and subordinate units of Shaanxi Hydrogen Energy, attended the meeting. Tianjin Rongcheng Xinneng Technology Group Co., Ltd.: The company's 5 MW anion exchange membrane (AEM) water electrolysis hydrogen production system completed equipment installation and officially entered the commissioning stage. Zhejiang Sunshine Green Hydrogen Technology Co., Ltd.: The company's self-developed A11 and B11-series core electrolyzer equipment successfully completed long-cycle operation verification. The series uniformly adopted a current density of 1.5 A/cm², completing dual-line endurance tests under both atmospheric pressure and 1.6 MPa high-pressure conditions, with uninterrupted stable operation exceeding 8,000 hours in both cases. Patent Applications 1. Shanghai Institute of Ceramics, Chinese Academy of Sciences (China) published patent CN2025110028, developing a ceramic-based anion exchange membrane with a laboratory-tested lifespan of 80,000 hours. 2. Johnson Matthey (UK) filed patent WO2025109876, disclosing an Fe-Ni-Mo ternary non-precious metal catalyst formulation with activity approaching that of platinum-based materials. Technology Footprint/Technical Specifications 1. Two group standards on water electrolysis hydrogen production were officially released and implemented, namely the Safety Technical Specification for Water Electrolysis Hydrogen Production and the Calculation Method for Economic Operation Indicators of Water Electrolysis Hydrogen Production. 2. Petronor and H2SITE collaborated to advance membrane technology for hydrogen production, improving high-purity hydrogen and low-carbon efficiency in refining. 3. Dalian University of Technology designed an electron pump catalyst with an asymmetric photo-responsive structure, maintaining the asymmetry of electron distribution. 4. A research team from the School of Electrical Engineering and the State Key Laboratory of Electrical Insulation and Power Equipment at Xi'an Jiaotong University successfully developed a Ru/Ti₃C₂Oₓ@NF bifunctional electrocatalyst for seawater electrolysis. 5. The team led by Professor Yu Ying at Central China Normal University developed a three-dimensional hierarchical nanostructured catalytic electrode as a core component for seawater hydrogen production.

SMM May 6: Metals market: As of the midday close, domestic market base metals all rose. SHFE copper gained 1.65%. SHFE aluminum gained 1.17%. SHFE lead gained 1.74%, SHFE zinc gained 2.24%. SHFE tin gained 6.6%. SHFE nickel gained 3.86%. In addition, casting aluminum most-traded futures gained 1.07%, alumina most-traded fell 0.56%. Lithium carbonate most-traded gained 6.59%. Silicon metal most-traded gained 1.77%. Polysilicon most-traded futures gained 1%. Ferrous metals all rose, with iron ore up 2.52%, rebar up 1.44%, hot-rolled coil up 2.02%, and stainless steel up 1.81%. Coking coal and coke: the most-traded coking coal contract gained 2.29%, and the most-traded coke contract gained 2.04%. Overseas market base metals, as of 11:42, LME metals rose across the board. LME copper gained 1.37%. LME aluminum gained 0.36%, LME lead gained 0.41%, LME zinc gained 1.65%. LME tin gained 4.43%. LME nickel gained 1.66%. Precious metals, as of 11:42, COMEX gold gained 1.85%, COMEX silver gained 3.18%. Domestic market precious metals: SHFE gold most-traded gained 1.84%, SHFE silver most-traded gained 5.15%. Analysts said gold futures prices rose as Middle East tensions eased. Vivek Dhar of the Commonwealth Bank of Australia noted in a research report that Trump announced a temporary suspension of the plan to provide safe passage through the Strait of Hormuz for vessels, which eased tensions. Since gold hit an intraday high of $5,422 per ounce on March 2, gold futures have largely moved inversely with the degree of Middle East tensions. Dhar added that upside drivers for gold prices could come from several factors: hopes for a Middle East ceasefire, market pricing of interest rate cuts due to high energy prices dragging on global growth, and concerns over US Fed independence. (Jin10 Data) In addition, as of the midday close, platinum most-traded futures gained 4.14%, and palladium most-traded futures gained 4.42%. As of the midday close, the most-traded contract of Europe containerized freight index gained 2.75%, closing at 2,339.3 points. As of 11:42 on May 6, midday futures quotes for selected contracts: Spot Cargo and Fundamentals Zinc: Today, #0 zinc mainstream transaction prices were concentrated at 23,845-24,215 yuan/mt. Shuangyan had no transactions for now. #1 zinc mainstream transaction prices were at 23,775-24,145 yuan/mt. In the morning session, the market quoted premiums of 70-100 yuan/mt against SMM average prices, with no quotes against futures for now... Macro Front China: [China's April RatingDog services PMI rose to 52.6, accelerating expansion, with new orders achieving growth for the 40th consecutive month] China's services sector activity further accelerated expansion in April, with the composite PMI climbing to the second-highest level in nearly two years, indicating that domestic economic recovery momentum was still building. On May 6, the latest data showed that the RatingDog China General Services business activity index rose to 52.6 in April, up from 52.1 in March, signaling an acceleration within a continuous growth sequence, with the current expansion cycle having started in January 2023 . Meanwhile, the composite output index covering both manufacturing and services rose from 51.5 in March to 53.1, the second-fastest pace since May 2024, indicating a broad-based strengthening of China's overall business activity. [11.279 million cross-border trips made during Labour Day holiday, up 3.5% compared to the same period last year] According to the National Immigration Administration, border inspection agencies nationwide facilitated 11.279 million cross-border trips during this year's Labour Day holiday, with a daily average of 2.256 million trips, up 3.5% compared to last year's Labour Day holiday. The single-day peak occurred on May 2, reaching 2.529 million trips. Among them, foreign nationals made 1.255 million entry and exit trips, up 12.5% compared to the same period last year; of the inbound foreign nationals, 436,000 trips were made under visa-free policies, up 14.7% compared to the same period last year. A total of 531,000 cross-border transport vehicles (aircraft, vessels, trains, and automobiles) were inspected, up 16.6% compared to the same period last year. (CCTV News) [MIIT: Q1 revenue of large-scale electronic information manufacturers up 14.8% YoY] MIIT released the operating performance of the electronic information manufacturing industry for Q1 2026. In Q1 2026, China's electronic information manufacturing industry saw rapid production growth, continued export rebound, significant improvement in profitability, and accelerated investment growth, with the industry maintaining a sound overall development momentum. In Q1, large-scale electronic information manufacturers achieved revenue of 4.31 trillion yuan, up 14.8% YoY; operating costs were 3.69 trillion yuan, up 11.7% YoY; total profits reached 217 billion yuan, up 1.25 times YoY. In March, large-scale electronic information manufacturers achieved revenue of 1.68 trillion yuan, up 15.7% YoY. [PBOC net drained 393.1 billion yuan through reverse repo operations] PBOC conducted 26 billion yuan of 7-day reverse repo operations today. As 419.1 billion yuan of 7-day reverse repos matured today, a net drainage of 393.1 billion yuan was achieved. US dollar: As of 11:42, the US dollar index fell 0.21% to 98.28. According to US financial website investinglive, USD/JPY dropped over 100 points in the short term, down more than 1% intraday, pulling back below the 157.00 level. The timing seems right — today is a Japanese market holiday, and the two previous intervention attempts also occurred in the window between the Asian session and the European session open. That said, the two previous interventions happened at a point closer to when USD/JPY had just broken through 157. This time, USD/JPY rallied all the way to near 158 before the suspected intervention occurred. Despite multiple attempts by Japan's Ministry of Finance, the effectiveness of intervention actions since last week has been diminishing, especially as fundamental factors continue to work overwhelmingly against the yen. The question then becomes how much money the Japanese authorities are willing to throw at this problem to make the intervention truly effective. Given the current broader economic backdrop, this is indeed a very thorny dilemma. The greatest hope Japanese officials are pinning on right now is that the US-Iran conflict can subside, thereby easing the pressure on the Japanese economy. Otherwise, they will continue swimming against a massive tide, trying to convince traders not to keep selling the yen. (Jin Shi Data) US President Trump posted that, based on requests from Pakistan and other countries, and given our tremendous military victories in actions against Iran, as well as significant progress made on a comprehensive final agreement with Iranian representatives, both sides have agreed that while blockade measures will remain in effect, "Operation Freedom" (the movement of ships through the Strait of Hormuz) will be paused for a period of time to see whether the agreement can be finalized and signed. (Xinhua News Agency) Bond traders are ramping up bets that the US Fed's next policy move could be a rate hike rather than an interest rate cut. Swap contracts tied to central bank rate decisions now show that the market expects a greater than 50% probability of the US Fed raising rates before April next year, ahead of any interest rate cut. An increasing number of traders are also adding positions to hedge against the rising probability of a rate hike before year-end. This shift in market sentiment comes as policymakers appear increasingly divided on the interest rate outlook. Lawrence Gillum, chief fixed income strategist at LPL Financial, believes that the possibility of interest rate cuts this year still exists, but it will gradually diminish as the Iran conflict drags on. He stated: "Without a doubt, the road ahead for Waller will be full of challenges." According to the CME "FedWatch": the probability of the US Fed holding rates unchanged through June is 96.0%, with a cumulative probability of a 25-basis-point cut at 4.0%. The probability of the US Fed holding rates unchanged through July is 88.8%, with a cumulative probability of a 25-basis-point cut at 10.9%, and a cumulative probability of a 50-basis-point cut at 0.3%. Bill Northey, Senior Investment Director at US Bank Asset Management Group, stated: "At this point, it appears that the Iran situation has not materially escalated, and the market is breathing a sigh of relief." Although hostilities in the Middle East appeared to ease on Tuesday, the conflict continued to affect future US economic indicators and the US Fed's interest rate decisions. He added that, for example, if the Strait of Hormuz could be safely and fully reopened, it would dampen expectations of rising inflation and push 10-year US Treasury yields lower. "Our base expectation is that this volatility is likely to persist," Northey said. (Jin10 Data) Data: Data to be released today include France's March industrial production MoM, France's April services PMI final, Germany's April services PMI final, Eurozone April services PMI final, UK April services PMI final, Eurozone March PPI MoM, US April ADP employment, and US April Global Supply Chain Pressure Index. Also noteworthy: 2028 FOMC voter and St. Louis Fed President Musalem is scheduled to speak on the economic outlook and monetary policy. Crude oil: As of 11:42, oil prices in both markets declined, with WTI down 1.39% and Brent down 1.4%. ING's commodities strategy team said in a report that the oil market faced renewed downward pressure as the US-Iran ceasefire agreement appeared to hold. Trump stated that "significant progress" had been made toward a "full and final deal" with Iran. The team noted that reaching an agreement to normalize oil shipments through the Strait of Hormuz was crucial. (Jin10 Data) After the Iran conflict triggered fuel supply panic in Australia, Australia plans to include a A$10 billion ($7.2 billion) fuel security and resilience plan in next week's budget proposal. Australian Prime Minister Albanese stated that the plan would help build fuel and fertilizer reserves, including supporting the expansion of total diesel and aviation fuel reserves to a level sufficient for 50 days of supply. He also said the government itself would hold approximately 1 billion liters of fuel reserves. The Prime Minister and the Energy Minister discussed the plan after a national security meeting in Sydney. Australia's Energy Minister stated that Australia had responded to the crisis and currently held more domestic fuel reserves than at the start of the Iran conflict. He said: "This marks a significant shift in how our nation responds. We have been studying how to be better prepared for future shocks." (Jin10 Data) Spot market overview: ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ►

During the 2026 Labour Day holiday (May 1–5), the Chinese SHFE market was closed, and LME copper exhibited a fluctuating trend of initial decline followed by recovery......

During the May Day holiday in 2026, LME zinc traded in a general sideways range, finding solid support at the 40-day moving average. In terms of specific performance, LME zinc showed an N-shaped trend of rising first, then falling and rebounding again.

Editor's Note: During the Labour Day holiday when the Chinese market was closed, global macro developments, commodity markets, and ex-China policy dynamics continued to evolve, with multiple external factors potentially impacting post-holiday market performance. To help market participants accurately grasp market trends and conduct rational market analysis, SMM has systematically compiled key macro developments and major industry news during the holiday, along with a summary of this week's critical data and event periods, for industry reference. Internationally, geopolitical developments, energy landscape, ex-China monetary policy, and trade policy all saw significant changes. Geopolitical tensions resurfaced, intermittently disrupting global energy markets and briefly driving international oil prices into a rapid short-term rise. Major global central bank policies continued to diverge. The US Fed released its latest policy signal — New York Fed President Williams publicly stated on Monday that if inflation continues to pull back toward the 2% policy target, the US Fed will cut interest rates at an appropriate time. Meanwhile, the Reserve Bank of Australia announced its third consecutive rate hike on Tuesday, raising the cash rate from 4.1% to 4.35%, officially reversing its previous accommodative monetary policy cycle, further widening the divergence in global liquidity landscape. On the energy export front, according to Bloomberg on May 4, US crude oil exports continued to climb over the past nine weeks, with cumulative exports exceeding 250 million barrels, surpassing Saudi Arabia to reclaim the position of the world's largest crude oil exporter. Global trade and foreign exchange markets also saw notable shifts. In trade, according to CCTV News, on May 1 local time, US President Trump stated that due to the EU's failure to fulfill a previously agreed trade deal, the US would impose additional tariffs on automobiles and trucks imported from the EU next week, raising the rate to 25% — subsequent changes in the global trade landscape warrant continued attention. In the foreign exchange market, Japan intervened in the currency market three times between April 30 and May 4. A relevant official from Japan's Ministry of Finance simultaneously interpreted related IMF rules, explicitly classifying the three-day intervention operations as a single operation, with a clear intent to stabilize the yen exchange rate. On industrial policy, Indonesia introduced resource export control measures, planning to levy export taxes and windfall taxes on coal and nickel products, which may impact global energy and non-ferrous metal supply chains, pricing systems, and related commodity markets. This week, major economic data in and outside China will be released in quick succession. Highly watched data including China's foreign exchange reserves, gold reserves data, China's import and export data (TBD), and US April non-farm payrolls data will be published sequentially. Meanwhile, SMM will comprehensively review price movements across metal categories during the holiday, and combining the latest variables in and outside China, is expected to publish post-holiday market trend outlooks to provide professional reference for industry trading, production, and strategic planning. Stay tuned. ※Holiday Macro News ►Domestic [Baiyun Airport Port Sees Record-High Canton Fair Foreign Arrivals Exceeding 540,000] On the last day of the Labour Day holiday, coinciding with the closing of the 139th Canton Fair, reporters learned from the Baiyun Border Inspection Station that since the opening of this Canton Fair, as of 0:00 on May 5, Baiyun Airport port handled over 1.14 million inbound and outbound passengers, up 14.5% YoY. Foreign business travelers became the core driver of port passenger flow growth, with inbound and outbound foreigners exceeding 540,000, up 20.8% YoY, setting a new historical record for port passenger flow during the same Canton Fair period. (CCTV News) [National Railways Carried Over 100 Million Passengers Cumulatively During Labour Day Holiday] According to China State Railway Group Co., Ltd., national railways carried 20.383 million passengers on May 4. Since the launch of Labour Day holiday transport on April 29, national railways have cumulatively carried 117 million passengers, with transport operations safe, stable, and orderly. On May 5, return passenger flows continue to rise, with national railways expected to carry 23 million passengers and 2,225 additional passenger trains planned. (CCTV News) [China Bulk Commodity Price Index at 132.1 Points in April, Up 20.2% YoY] The China Federation of Logistics and Purchasing released the April China Bulk Commodity Price Index on May 5. The index stood at 132.1 points in April, up 1.7% MoM and up 20.2% YoY. Among the 50 bulk commodities under key monitoring by the federation, 38 saw MoM price increases in April. Among them, paraxylene, methanol, and polypropylene led the gains, up 22.4%, 14.5%, and 11.8% MoM respectively. ►Overseas [US Illegal Tariff Refunds Delayed by One Day, Earliest Distribution Starting May 12] US Customs and Border Protection (CBP) stated that the first batch of electronic refunds for tariffs ruled illegal by the US Supreme Court is expected to begin distribution no earlier than May 12. The US Court of International Trade had previously expected refunds to start on May 11, but this has been delayed by one day for undisclosed reasons. (CCTV News) [Senior Iranian Commander: Iran Is Controlling the Strait of Hormuz, US Cannot Reverse the Current Situation] Senior commander of Iran's Islamic Revolutionary Guard Corps Yadollah Javani confirmed in an interview on May 4 that Iran is controlling the Strait of Hormuz, that any passing vessel must obtain Iranian permission to ensure safe passage, and that hostile forces' ships attempting forced transit will be dealt with resolutely. Yadollah Javani dismissed US President Trump's claim of "clearing" the strait's shipping lanes for humanitarian reasons as a lie, stating that Iran would prevail if the confrontation escalated. He said the US could never restore the situation to before February 28, nor reverse the current state of affairs. (CCTV News) [Trump refuses to confirm whether US-Iran ceasefire agreement remains in effect] On May 4, US President Trump refused to clarify whether the ceasefire agreement between the US and Iran remained in effect during an interview. When asked whether the ceasefire had ended and whether military strikes could resume, Trump said: "I can't tell you that. If I answered, you'd say this guy isn't smart enough to be president." Earlier that day, Trump warned in an interview that if Iran attempted to attack US ships in the Strait of Hormuz or the Persian Gulf, they "will be totally destroyed." However, he subsequently stated that from a military standpoint, the conflict with Iran was "essentially over." (CCTV) [Qatar condemns attack on UAE oil tanker in Strait of Hormuz] Qatar's Ministry of Foreign Affairs issued a statement on the 4th, strongly condemning a drone attack on an oil tanker operated by Abu Dhabi National Oil Company of the UAE while passing through the Strait of Hormuz, calling it a serious violation of international law and the principle of freedom of navigation. The statement said Qatar firmly opposes using the Strait of Hormuz as a pressure tool, called for the unconditional reopening of the strait, and emphasized that freedom of navigation through this vital waterway is an established principle that cannot be compromised. The statement noted that the continued closure of the strait would jeopardize the vital interests of countries in the region. Qatar's Ministry of Foreign Affairs reaffirmed its support for all measures taken by the UAE to protect its assets. (Xinhua) [US Fed "No. 3" speaks: Interest rate cuts will eventually come if inflation pulls back, but timing has been forced to delay] New York Fed President Williams publicly stated on Monday that as long as inflation pulls back toward the US Fed's 2% target as expected, the US Fed will eventually need to cut interest rates . However, due to inflation running higher than expectations this year, the timing of interest rate cuts has been forced to delay, though the overall policy direction has not fundamentally changed. Williams told reporters after delivering a speech in New York on Monday: "As inflation moves lower, we will eventually need to cut interest rates at some point to match fundamentals. Inflation has been higher than previously expected this year, and in my view, this only delays the timing of rate cuts and does not change the overall policy logic." Last week, the US Fed decided to keep the benchmark interest rate unchanged, but internal policy disagreements became prominent, with three officials opposing the easing bias implied in the meeting statement, preferring more neutral language to release signals that rates could move either up or down going forward. Regarding the controversial wording, Williams was clear in his stance: he fully endorsed the current statement's language, believing that based on day-to-day economic data, there was no sufficient reason to support a rate hike in the short term. [IMF Chief Warns: Prolonged Middle East Conflict Could Trigger More Severe Inflation and Growth Shocks] The head of the International Monetary Fund (IMF) warned that inflation has begun to intensify, and if the Middle East war continues into 2027 with oil prices rising to around $125 per barrel, the global economy could face a "worse scenario." IMF Managing Director Georgieva stated that the continuation of the war means the organization's previous assumption of only a mild slowdown in global economic growth and only a slight edge up in prices no longer holds. Therefore, the "adverse scenario" set by the IMF has effectively begun to materialize. Speaking at a conference hosted by the Milken Institute, Georgieva noted that long-term inflation expectations remain anchored for now and financial conditions have not yet tightened, but this could change if the war persists. [RBA Raises Rates by 25 Basis Points as Expected — Entering Wait-and-See Mode After "Triple Hike"?] The Reserve Bank of Australia (RBA) announced its third consecutive rate hike on Tuesday, raising the cash rate from 4.1% to 4.35%, completely reversing last year's monetary easing cycle. The move underscored the central bank's determination to suppress stubborn inflation, making it an outlier among major global central banks — decisively embarking on a new tightening cycle while the US-Iran conflict fueled uncertainty and many central banks chose to stand pat. The RBA's nine-member policy committee approved the rate hike with a vote of 8 in favor and 1 against . RBA Governor Michele Bullock will hold a press conference at 1:30 PM Beijing time to explain the policy decision. The committee emphasized in its statement: "After three rate hikes, monetary policy now has sufficient room to respond to changing conditions , and the committee will focus on its dual mandate of price stability and full employment, taking all necessary measures to achieve its objectives." [Japan Intervened to Boost Yen on "3 Consecutive Days" During Holiday, Claims It "Counts as 1" Under IMF Rule of "Maximum 3 Interventions Within 6 Months"] Japan intervened in the foreign exchange market on three consecutive days during Golden Week, but Japanese officials promptly cited IMF rules stating that the three actions "count as one" — a statement reflecting the government's careful calculation of intervention frequency. A Ministry of Finance official told reporters on May 5 that under relevant IMF regulations, foreign exchange market interventions over three consecutive business days are considered a "single action."The official made the above remarks while accompanying Finance Minister Satsuki Katayama at an international conference held in Samarkand, Uzbekistan. By this calculation, the three interventions on April 30, May 2 (Friday), and May 4 (Monday) were counted as one combined action. The official added that even when Japan was on public holiday, interventions could still be counted as long as global markets were open; May 4 was therefore recognized as the last of three consecutive business days starting from April 30. This round of intervention began on April 30, triggered when USD/JPY broke above 160.72. According to Bloomberg's analysis, authorities deployed approximately $34.5 billion that day to support the yen, and the exchange rate rebounded to around 155. However, the effectiveness of the subsequent two interventions diminished notably—the yen briefly strengthened after each intervention before pulling back again. The two subsequent interventions reportedly cost a combined approximately $20 billion. In total, the three interventions in this round are estimated to have exceeded $54 billion in scale. ※Industry News and Corporate Developments [Indonesia Plans to Impose Export and Windfall Taxes on Coal and Nickel to Ease Subsidy Pressure] Indonesia plans to impose export taxes and windfall taxes on coal and nickel as one of the measures to offset the growing subsidy costs in the national budget. Indonesia's Finance Minister Purbaya Yudhi Sadewa stated that the proposed measures are still under discussion with the Ministry of Energy and Mineral Resources. "Discussions with the Energy Ministry are ongoing, but what is clear is that the related revenue will be sufficient to help bridge the subsidy gap." Purbaya noted that coal and nickel exports had not previously been subject to export taxes, creating regulatory loopholes that could foster under-invoicing and smuggling, while also limiting customs authorities' ability to inspect goods before shipment. The implementation of export taxes is expected to grant the Directorate General of Customs and Excise (DJBC) greater authority to conduct inspections before goods are exported, thereby helping to close tax loopholes and prevent fiscal leakage. (Wallstreetcn) [250 Million Barrels of Crude Oil Shipped Outside China, US Inventory Falls for Four Consecutive Weeks—How Long Can the World's "Last Supplier" Hold Out?] Over the past nine weeks, a large number of tankers sailed intensively toward the US, loading up along the coast of Alaska and the Gulf of Mexico before heading to destinations such as Japan, Thailand, and even Australia. During this period, the US cumulatively exported over 250 million barrels of crude oil outside China, once again surpassing Saudi Arabia to become the world's largest crude oil exporter. Against the backdrop of the Strait of Hormuz nearing shutdown and Middle Eastern supply disruptions, the US has effectively assumed the role of a critical global energy source. However, this rapid surge in export volume also exposed potential risks. US domestic inventory has been declining notably, with total crude oil and refined product reserves falling for four consecutive weeks and dropping below historical averages, while the production side also faced pressure to maintain output. (Jin Shi Data) [Trump: US Is Taking "Hundreds of Millions of Barrels of Oil" from Venezuela] On May 4, US President Trump spoke at a small business summit on the topic of energy cooperation with Venezuela. Trump stated that the US currently has a "good relationship" with Venezuela and said related actions were "going well." He noted that major energy enterprises had begun entering Venezuela to develop resources. On energy cooperation, Trump said the US was obtaining "hundreds of millions of barrels of oil" from Venezuela and shipping them to US regions including Houston for refining, describing the bilateral relationship as "almost like a partnership." He also emphasized that US oil and natural gas production had reached record highs. (Wallstreetcn) [Trump: Will Impose 25% Tariff on EU Cars and Trucks Exported to the US Next Week] According to CCTV News, on May 1 local time, US President Trump stated that because the EU had not fulfilled the trade agreement already reached between the two sides, the US would impose additional tariffs on cars and trucks imported from the EU next week, raising the rate to 25%. Trump said that if relevant enterprises set up factories and produced in the US, they could be exempt from tariffs. [Hainan LNG Phase II Project Achieved Major Milestone, Expected to Be Fully Completed by 2027] According to PipeChina, a major oil and gas infrastructure project in China — the Hainan LNG Phase II Project — completed the 821-mt dome air-raising operation for Tank No. 3, marking a major milestone for the project. The Hainan LNG receiving terminal Phase I project has construction completed and commissioned 2 LNG storage tanks of 160,000 m³ each, while the Phase II project is constructing 3 new prestressed concrete full-containment LNG storage tanks of 220,000 m³ each. Currently, the overall progress of the Phase II project is approaching 50%, and it is expected to be fully completed by 2027. Once completed, it will add 400 million m³ of gas storage capacity, doubling the peak shaving capacity, and significantly enhancing emergency peak shaving and secure supply capabilities for the entire Hainan Island and the South China coastal region. (CCTV News) [Dongyang Guangming: Subsidiary Signs Computing Power Service Procurement Framework Contract with Estimated Total Value of 16 Billion to 19 Billion Yuan] Dongyang Guangming announced that its subsidiary Dongguan Dongyang Guang Cloud Computing Technology Co., Ltd. signed a Computing Power Service Procurement Framework Contract with a certain Enterprise A, with an estimated total contract value ranging from 16 billion yuan to 19 billion yuan (tax inclusive). The contract term is 60 months after order acceptance, with service fees paid monthly. This cooperation aims to deepen the company's presence in AI computing power and high performance server supporting services, but faces multiple uncertainties including policy and regulatory risks, performance capability, and funding, with uncertain impact on the company's future performance. ※Weekly Macro Preview May 6 Data to be released include China's April RatingDog Services PMI, France's March industrial output MoM, France's April Services PMI final, Germany's April Services PMI final, Eurozone April Services PMI final, UK April Services PMI final, Eurozone March PPI MoM, US April ADP employment, and US April Global Supply Chain Pressure Index. Also notable: 2028 FOMC voter and St. Louis Fed President Musalem will speak on the economic outlook and monetary policy. May 7 Data to be released include France's March trade balance, Switzerland's April seasonally adjusted unemployment rate, Eurozone March retail sales MoM, US April Challenger enterprise layoffs, US initial jobless claims for the week ending May 2, US March construction spending MoM, US April New York Fed 1-year inflation expectations, and China's April foreign exchange reserves. Also notable: 2027 FOMC voter and Chicago Fed President Goolsbee will participate in a panel discussion at a conference. May 8 Data to be released include Germany's March seasonally adjusted industrial output MoM, Germany's March seasonally adjusted trade balance, UK April Halifax seasonally adjusted house price index MoM, Switzerland's April consumer confidence index, Canada's April employment, US April unemployment rate, US April seasonally adjusted nonfarm payrolls, US April average hourly earnings YoY, US April average hourly earnings MoM, US May 1-year inflation expectations preliminary, US May University of Michigan consumer sentiment index preliminary, and US March wholesale sales MoM. Also notable: 2026 FOMC voter and Cleveland Fed President Hammack will speak; FOMC permanent voter and New York Fed President Williams will speak; China's refined oil products will enter a new price adjustment window. May 9 Data to be released include China's April trade balance in US dollar terms (TBD) and China's April trade balance (TBD). Also notable: Chicago Fed President Goolsbee and San Francisco Fed President Daly will participate in a panel discussion at the Hoover Institution's 2026 Monetary Policy Conference.

SMM News, April 28: Metals market: As of the midday close, domestic market base metals fell nearly across the board. SHFE copper fell 0.6%, SHFE aluminum fell 1.24%, SHFE lead fell 0.18%, SHFE zinc fell 2.46%, SHFE tin fell 1.88%, and SHFE nickel rose 0.58%. In addition, the most-traded casting aluminum futures fell 1.17%, and the most-traded alumina futures fell 0.69%. The most-traded lithium carbonate futures fell 1.98%. The most-traded silicon metal futures fell 0.41%. The most-traded polysilicon futures continued the downtrend from the previous three trading days, falling 4.11%. Ferrous metals mostly fell. Iron ore fell 1.62%, rebar fell 0.88%, hot-rolled coil fell 0.97%, and stainless steel rose 1.66%. Coking coal and coke: the most-traded coking coal contract fell 1.3%, and the most-traded coke contract fell 2.52%. Overseas market base metals, as of 11:39, LME metals showed mixed performance. LME copper edged up 0.02%. LME aluminum fell 0.25%, LME lead fell 0.31%, and LME zinc fell 0.84%. LME tin rose 0.32%. LME nickel rose 0.65%. Precious metals, as of 11:39, COMEX gold fell 0.1% and COMEX silver fell 0.45%. Domestic market precious metals: the most-traded SHFE gold contract fell 0.89%, and the most-traded SHFE silver contract fell 1.65%. In addition, as of the midday close, the most-traded platinum futures fell 1.27%, and the most-traded palladium futures fell 1.95%. As of the midday close, the most-traded Europe containerized freight index contract rose 0.47% to 2,208.1 points. As of 11:39 on April 28, midday futures quotes for selected contracts: Spot and fundamentals Copper: Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a premium of 320 yuan/mt, up 40 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 230 yuan/mt, up 30 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 170 yuan/mt, up 30 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 102,320 yuan/mt, down 765 yuan/mt from the previous trading day; the average price of SX-EW copper was 102,215 yuan/mt, down 770 yuan/mt from the previous trading day. Spot market: Today, Guangdong inventory increased again, mainly due to increased arrivals and decreased warehouse withdrawals... Macro front China: [SASAC: Continue to push efforts in key areas such as NEVs and artificial intelligence, driving emerging industries to develop with greater momentum] A signed article by the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council published in Study and Research stated that during the 15th Five-Year Plan period, efforts must focus on opening up a "second curve" of growth, adopting tailored and coordinated policies for different enterprises, promoting smooth and strong succession of old and new growth drivers, accelerating the development of a batch of emerging pillar industries that lead future competition, and better supporting the construction of a modern industrial system with advanced manufacturing as its backbone. The article proposed coordinating the transformation of traditional industries with the development of emerging industries. On one hand, adhering to the direction of intelligentization, green development, and integration, deepening and expanding the "AI+" initiative, stepping up efforts in technological upgrading and equipment renewal, vigorously promoting energy conservation and carbon reduction in key industries, and further accelerating the transformation of traditional industries. On the other hand, following the approach of "leading a batch, catching up with a batch, and cultivating a batch," based on enterprise resource endowments and industrial foundations, adhering to differentiated layouts, further consolidating advantages in new energy, aerospace and other industries, continuing to push forward in key areas such as NEVs, artificial intelligence, and new materials, and proactively cultivating frontier tracks such as quantum information, nuclear fusion, and low-altitude economy, driving emerging industries to build stronger momentum. (Jin10 Data) [Guangdong: Increasing Support for Trade-in of Bulk Durable Consumer Goods Such as Automobiles and Home Appliances] The Outline of the 15th Five-Year Plan for National Economic and Social Development of Guangdong Province was officially released. It mentioned the bulk consumption upgrade initiative. Promoting the "fiscal subsidies + enterprise discounts + financial empowerment" model, increasing support for trade-in of bulk durable consumer goods such as automobiles and home appliances, and continuing to implement consumption-boosting policies such as "Guangdong Premium Shopping." Implementing automobile replacement and retirement and renewal policies, encouraging eligible cities to issue subsidies for new car purchases. Expanding after-market consumption such as automobile modification and leasing. Accelerating the construction of recycling systems for automobiles, electronic products, home appliances and furniture. Actively, prudently, and orderly advancing urban village renovation under new models, expanding the supply of affordable housing, and better meeting housing consumption demand. The PBOC conducted 43.5 billion yuan in 7-day reverse repo operations in the open market, with an operation rate of 1.40%. 5 billion yuan in reverse repo operations matured today. US dollar: As of 11:39, the US dollar index rose 0.02% to 98.5. The Congressional Budget Office (CBO) stated that recent US tariff policy adjustments could increase the federal budget deficit by $1.1 trillion over ten years, though the exact figure remained uncertain. CBO Director Swagel stated that the Supreme Court's ruling invalidating Trump's use of emergency economic powers to impose tariffs on his own would increase the fiscal deficit by $2 trillion over ten years, while other trade measures Trump had taken to offset this loss totaled $800 billion to $900 billion (in revenue). Swagel stated: "Because the Supreme Court eliminated some tariffs and the government reimposed some, the fiscal deficit over ten years would be approximately $1.1 trillion higher."The government has significant power to impose new tariffs and adjust them, so it is difficult to determine the exact deficit amount before the entire process is concluded." Bridgewater Associates founder Ray Dalio said on April 27 local time that with persistent inflationary pressures coupled with an economic slowdown, policymakers must remain cautious. Dalio said on Monday, "We are undoubtedly in a period of stagflation," warning that the US economy had fallen into a stagflationary environment. He noted that if Kevin Warsh, who is about to take over as Fed Chairman, chose to cut interest rates, it would be a policy mistake. According to CME "FedWatch": the probability of the US Fed keeping rates unchanged in April was 100%. The probability of a cumulative 25-basis-point interest rate cut by June was 4.5%, while the probability of keeping rates unchanged was 95.5%. (Jin10 Data) On the data front: Data to be released today include the US weekly ADP employment change for the week ending April 11, the US February FHFA House Price Index MoM, the US February S&P/CS 20-City non-seasonally adjusted Home Price Index YoY, the US April Conference Board Consumer Confidence Index, the US April Richmond Fed Manufacturing Index, and the Bank of Japan target rate as of April 28. Also worth watching: Bank of Japan Governor Ueda Kazuo will hold a monetary policy press conference; the Bank of Japan will release its interest rate decision and economic outlook report. On other currencies: [BOJ Kept Rates Unchanged as Expected, Three Members Advocated for a Rate Hike] The Bank of Japan kept interest rates unchanged on Tuesday, but three of the nine-member policy board proposed a rate hike, signaling concerns over inflationary pressures triggered by Middle East conflicts. The 6-to-3 vote also marked the largest split since Ueda Kazuo became governor. At the conclusion of its two-day meeting, the BOJ decided to keep the short-term policy rate unchanged at 0.75%, in line with broad market expectations. Board members Takada Hajime, Tamura Naoki, and Nakagawa Junko dissented, advocating for raising the rate to 1.0%. Nakagawa Junko argued that despite ongoing uncertainty over the Middle East situation, price risks were tilted to the upside under accommodative financial conditions given economic developments. Tamura Naoki argued that given price risks were significantly tilted to the upside, the BOJ should set the policy rate as close to the neutral rate as possible. Takada Hajime argued that Japan's price stability target had essentially been achieved, and price risks had clearly tilted to the upside due to second-round effects of price increases triggered by developments outside China. BOJ Governor Ueda Kazuo is expected to brief the media on the decision later. (Jin10 Data APP) Hirofumi Suzuki, chief FX strategist at Sumitomo Mitsui Banking Corporation, said that three votes in favor of a rate hike was somewhat surprising, and that policy board member Nakagawa Junko also switched to supporting a rate hike. In Japan, the impact of the Middle East shock has begun to show in consumer confidence, which is concerning in itself, and this impact is expected to further transmit to the price side. Meanwhile, the yen remains under depreciation pressure in financial markets. Overall, the Bank of Japan will have no choice but to maintain its rate-hike inclination. If easing of Middle East tensions can be confirmed, the bank is expected to raise rates further around June-July. (Jin10 Data) Crude oil: As of 11:39, oil prices in both markets rose, with WTI up 1.02% and Brent up 0.8%. The US-Iran deadlock remained unresolved, and market sentiment was generally cautious. According to the Wall Street Journal, as the US Navy enforced a blockade and negotiations remained deadlocked, Iran was scrambling to find new oil storage methods to avoid devastating production shutdowns. As oil piled up domestically, Iran was reactivating abandoned sites known as "junk storage," using makeshift containers, and attempting to continue exports by rail. These unconventional measures aimed to delay an infrastructure crisis and undermine US leverage in the Strait of Hormuz standoff. Huatai Securities noted in a research report that, considering hindered transportation through the Strait of Hormuz and limited alternative routes, combined with potentially months-long production resumptions at shut-in Middle East oil fields and a round of strategic restocking of crude oil, refined products, and other energy and chemical products globally after the strait reopens, the medium-term oil price center is expected to stay high, maintaining the 2026 Brent crude oil average price forecast at $90/barrel. (Jin10 Data) Spot market overview: ► ► ► ► ► ► ► ► ► ►

On April 26, Hao Mei New Material announced that in order to improve its global layout, the company plans to invest in establishing a subsidiary in Morocco and building a new aluminum profile production base with its Hong Kong subsidiary Hao Mei Aluminum Products as the investment entity. The total investment of this project is not more than 510 million yuan, and the source of funds is self-owned and self-raised funds, mainly used for land purchase, factory construction and operating working capital. After the completion of the project, it is expected to form a production capacity of about 44,000 tons of aluminum profiles per year, covering the light weight of automobiles, building and industrial aluminum profiles. The matter has been deliberated and approved by the Sixth Meeting of the Fi