[SMM Morning Meeting Summary: LME Zinc Posted a Bullish Candlestick, Attention on Macro Changes] Overnight, LME zinc opened at $3,545/mt. At the beginning of the session, LME zinc moved sideways around the daily average line, edging down briefly below $3,542.5/mt before rebounding and strengthening in a volatile manner. Near the end of the session, it touched a high of $3,585/mt and ultimately closed up at $3,582.00/mt, gaining $38.5/mt or 1.09%. Trading volume increased to 125,000 lots, while open interest decreased by 212 lots to 230,000 lots.

SMM June 2 News: Metals market: Overnight, metals generally rose across both domestic and overseas markets, with SHFE lead being the only decliner, down about 0.09%. LME tin and SHFE tin both rose over 2%, with LME tin up 2.63% and SHFE tin up 2.46%. LME copper, LME aluminum, LME zinc, LME nickel, SHFE copper, and SHFE nickel all rose over 1% (LME copper +1.97%, LME aluminum +1.59%, LME zinc +1.09%, LME nickel +1.42%, SHFE copper +1.12%, SHFE nickel +1.26%). The remaining metals gained less than 1%, with the alumina front-month contract down 0.69% and the foundry aluminum front-month contract up 0.41%. Overnight, ferrous metals collectively rose, with stainless steel leading the gains at +1.52%, and iron ore up 0.51%. Hot-rolled coil and rebar saw minor fluctuations. In coking coal and coke, coking coal rose 2.19% and coke rose 0.84%. Precious metals: Overnight, COMEX gold fell 1.7% and COMEX silver dropped 0.96%. In China, SHFE gold fell 1.28% and SHFE silver declined 0.73%. As of 6:43 AM on June 2, overnight closing prices: Macro front China: [NDRC, National Energy Administration and other departments issued the Notice on Printing and Distributing the Guidelines for Accounting of Non-Fossil Energy Power Consumption (Trial)] On June 1, the NDRC, National Energy Administration and other departments issued the Notice on Printing and Distributing the Guidelines for Accounting of Non-Fossil Energy Power Consumption (Trial). It mentioned that the development and reform commissions, energy bureaus, ecological environment departments, statistics bureaus, and data management departments of all provinces, autonomous regions, municipalities directly under the central government, and the Xinjiang Production and Construction Corps, as well as State Grid Corporation of China, China Southern Power Grid Co., Ltd., Inner Mongolia Power (Group) Co., Ltd., relevant power generation enterprises, Beijing and Guangzhou Power Exchange Centers, China Renewable Energy Engineering Institute, and China Electricity Council: To implement the major decisions and plans of the CPC Central Committee and the State Council on carbon peaking and carbon neutrality, and to promote the improvement of the carbon emission statistical accounting system, we have formulated the Guidelines for Accounting of Non-Fossil Energy Power Consumption (Trial), which are hereby issued to you. Please carry out relevant work accordingly. These guidelines shall be implemented on a trial basis from the date of issuance and shall be used for accounting of non-fossil energy power consumption for 2026 and subsequent years. If there are any issues or suggestions during the trial period, please provide timely feedback to the NDRC and the National Energy Administration. Shanghai Mayor Gong Zheng chaired a standing meeting of the municipal government on June 1. The meeting approved in principle the Shanghai Plan for Accelerating New-Type Industrialisation and Building a Modern Industrial System under the 15th Five-Year Plan, and noted the need to develop and strengthen a number of emerging pillar industries and make forward-looking arrangements for future industries. The meeting emphasized the need to adhere to innovation-driven development and forge competitive advantages in industry, accelerate breakthroughs in new technologies, R&D and application of new products, and cultivation and opening of new scenarios, support the efficient transformation and industrialisation of scientific and technological achievements, and turn more "flowers of technology" into "fruits of industry." The CPC Chengdu Municipal Committee and the Chengdu Municipal People's Government issued the Opinions on Accelerating the Building of a National Advanced Manufacturing Base. The opinions proposed forward-looking deployment of future industries, accelerating the layout of new tracks including nuclear fusion energy, brain-computer interfaces, quantum technology, intelligent sensing, embodied AI, sixth-generation mobile communications, biomanufacturing, cell and gene therapy, flying cars, and frontier new materials. US dollar: As of the overnight close, the US dollar index rose 0.26% to 99.19. Data from the Institute for Supply Management (ISM) showed that, driven by growth in new orders and production, the US May ISM Manufacturing Index rose to 54, hitting a four-year high. US manufacturing has sent expansion signals for five consecutive months, indicating that manufacturing is regaining vitality amid a surge in artificial intelligence (AI) investment, more favourable tax policy, and reduced trade policy uncertainty. Persistent cost pressure may mean US consumers will face higher prices, as the US Fed's preferred inflation gauge rose 3.8% YoY in April. (Wallstreetcn) According to CME "FedWatch": The probability of the US Fed keeping rates unchanged through June was 98.4%, with a 1.6% probability of a cumulative 25-basis-point interest rate cut. The probability of the US Fed keeping rates unchanged through July was 90.2%, with an 8.4% probability of a cumulative 25-basis-point rate hike and a 1.4% probability of a cumulative 25-basis-point interest rate cut. (Jin10 Data APP) Ozan Tarman, Vice Chairman of Global Macro at Deutsche Bank, said the US Fed's next move will not be a rate hike. Tarman said the newly appointed Fed Chairman Kevin Warsh will try to "convince his colleagues to stay put." "Everyone is excitedly talking about how he might completely change his stance and even convince Trump that a significant rate hike is possible this year — that seems a bit excessive to me." "The best approach is to wait and see, and let the political dynamics in the US, the Strait of Hormuz, and even the UK play out on their own," Tarman said. Tarman noted that a European Central Bank rate hike in June appears to be a foregone conclusion, but whether Lagarde will raise rates in September will depend on the progress of Middle East peace negotiations. (Bloomberg) Torsten Slok, Chief Economist at Apollo Global Management Inc., said that AI infrastructure construction will push up inflation in the early stages, which will prevent new Fed Chairman Kevin Warsh from cutting interest rates as quickly as he had previously hinted. "We may have to wait a while longer, because in the early stages, the AI boom will certainly push up inflation," he said. From the perspective of semiconductor prices, energy prices, and labour costs, the risk of price pressure is "very clear." (Bloomberg TV) Macro: Today, the US April JOLTs job openings, Switzerland April trade balance, UK April central bank mortgage approvals, Eurozone May CPI annual rate preliminary reading, and Eurozone May CPI monthly rate preliminary reading will be released. In addition, 2026 FOMC voter and Minneapolis Fed President Kashkari will deliver a speech, 2026 FOMC voter and Cleveland Fed President Hammack will speak on monetary policy, and Bank of England Governor Bailey will attend a House of Lords hearing. Crude oil: As of the overnight close, oil prices on both markets rose, with WTI up 5.85% and Brent up 4.53%, driven by the breakdown of US-Iran negotiations and blockade risks. Earlier, Iranian media reported that Iran would suspend communication with the US through intermediaries and planned to completely block the Strait of Hormuz, sending crude oil prices sharply higher. This morning, US President Trump said he expected to reach an agreement with Iran "within the next week," extending the current ceasefire arrangement and reopening the Strait of Hormuz. Trump said the negotiations were progressing well and expressed optimism about reaching a deal. (CCTV) (Wallstreetcn APP) According to US sources, the Trump administration continued to release large volumes from the US Strategic Petroleum Reserve to ease the energy supply crisis triggered by the US-Iran conflict and the closure of the Strait of Hormuz. Data released by the US Department of Energy (DOE) showed that the Strategic Petroleum Reserve decreased by 8 million barrels of crude oil last week, following declines of 9.1 million barrels and a record 9.9 million barrels in the two preceding weeks. As of now, the Strategic Petroleum Reserve inventory has fallen to 357.1 million barrels, the lowest level since January 2024. (Wallstreetcn) Three sources said OPEC+ producers will most likely agree at their meeting on Sunday to further increase crude oil production quotas in July. However, the Iran war has so far caused some countries to fall short of their previous production increase targets. A further increase in production quotas would indicate that the organisation is gradually resuming normal operations, despite disruptions caused by the blockade of the Strait of Hormuz and the unexpected withdrawal of the UAE in May. According to sources, OPEC+ is expected to increase production by approximately 188,000 barrels per day in July, the same as the increase agreed for June, which had been reduced from 206,000 barrels per day after taking into account the UAE's withdrawal. (Jin10 Data APP)

Data from the National Bureau of Statistics (NBS) showed that in April, raw coal production of above-designated-size industrial enterprises (hereinafter referred to as above-designated-size industries) maintained a relatively high level, while the growth rates of crude oil and power production accelerated, and natural gas production grew steadily. I. Production of Raw Coal, Crude Oil, and Natural Gas, and Related Information Raw coal production maintained a relatively high level. In April, raw coal production of above-designated-size industries was 390 million mt, down 1.0% YoY, compared with flat YoY in March; daily average production was 12.85 million mt. From January to April, raw coal production of above-designated-size industries was 1.58 billion mt, down 0.1% YoY. Crude oil production growth accelerated. In April, crude oil production of above-designated-size industries was 17.94 million mt, up 1.2% YoY, with the growth rate 1.0 percentage point faster than in March; daily average production was 598,000 mt. From January to April, crude oil production of above-designated-size industries was 72.74 million mt, up 1.3% YoY. The decline in crude oil processing widened. In April, crude oil processed by above-designated-size industries was 54.65 million mt, down 5.8% YoY, with the decline 3.6 percentage points wider than in March; daily average processing volume was 1.822 million mt. From January to April, crude oil processed by above-designated-size industries was 238.95 million mt, down 0.5% YoY. Natural gas production grew steadily. In April, natural gas production of above-designated-size industries was 21.9 billion m³, up 1.9% YoY, with the growth rate 1.1 percentage points slower than in March; daily average production was 730 million m³. From January to April, natural gas production of above-designated-size industries was 90 billion m³, up 2.7% YoY. II. Power Production Power production growth of above-designated-size industries accelerated. In April, power generation of above-designated-size industries was 744 billion kWh, up 2.6% YoY, with the growth rate 1.2 percentage points faster than in March; daily average power generation was 24.8 billion kWh. From January to April, power generation of above-designated-size industries was 3,123.7 billion kWh, up 3.3% YoY. By category, in April, the growth rates of thermal power and solar power generation of above-designated-size industries slowed down, hydropower growth accelerated, and the declines in nuclear power and wind power narrowed. Specifically, thermal power of above-designated-size industries grew 3.1% YoY, with the growth rate 1.1 percentage points slower than in March; hydropower of above-designated-size industries grew 12.2%, with the growth rate 1.4 percentage points faster; nuclear power of above-designated-size industries fell 8.7%, with the decline 3.1 percentage points narrower; wind power of above-designated-size industries fell 5.0%, with the decline 12.3 percentage points narrower; solar power generation of above-designated-size industries grew 7.1%, with the growth rate 2.9 percentage points slower.

SMM May 18 Update: Metals market: Last Friday's overnight session saw a broad sell-off across both domestic and overseas metals markets, with most declining over 1%. LME tin led the decline at 4.03%, LME copper fell 3.15%, LME aluminum and SHFE tin dropped over 2% (LME aluminum -2.36%, SHFE tin -2.84%). LME lead, LME zinc, LME nickel, SHFE copper, and SHFE nickel all fell over 1% (LME lead -1.39%, LME zinc -1.35%, LME nickel -1.9%, SHFE copper -1.29%, SHFE nickel -1.3%). SHFE lead and SHFE zinc fell less than 1% (SHFE lead -0.6%, SHFE zinc -0.44%). The alumina front-month contract fell 1.19%, and the foundry aluminum front-month contract fell 0.99%. Last Friday's overnight session saw broad declines in ferrous metals. Stainless steel fell 0.94%, and iron ore fell 0.8%. Hot-rolled coil and rebar dropped over 0.6% (hot-rolled coil -0.63%, rebar -0.62%). For coking coal and coke, coking coal fell 0.49% and coke fell 1.32%. Last Friday's overnight session for precious metals: COMEX gold fell 3.02% overnight, down 3.96% on the week; COMEX silver plunged 10.59%, down 5.65% on the week. In China, SHFE gold fell 1.13%, down 3.37% on the week; SHFE silver fell 6.79%, down 3.26% on the week. This was mainly driven by rising US Treasury yields and the strengthening of the US dollar with no resolution in sight, while the US-Iran conflict intensified inflation concerns, further reinforcing market expectations of interest rate hikes. As of 8:24 AM on May 16, last Friday's overnight closing prices: Macro Front Wang Yi briefed the media on the China-US summit and the consensus reached. Wang Yi stated that the two heads of state interacted for nearly 9 hours and agreed that building a "China-US Constructive Strategic Stability Relationship" was the most important political consensus. At the invitation of President Trump, President Xi Jinping will pay a state visit to the US this autumn. The economic and trade teams of both countries reached overall balanced and positive outcomes, including continuing to implement all consensus from previous negotiations, agreeing to establish a Trade Council and an Investment Council, addressing each other's concerns on agricultural product market access, and promoting the expansion of two-way trade under a reciprocal tariff reduction framework. China: The Ministry of Foreign Affairs provided consolidated responses on China-US economic and trade issues including semiconductors, rare earths, Boeing, and oil purchases. On May 15, Ministry of Foreign Affairs spokesperson Guo Jiakun hosted a regular press conference and provided consolidated responses on China-US economic and trade issues. Regarding rare earth supply, China is committed to maintaining the stability of global supply chains. Regarding purchases of US oil and Boeing aircraft, China expressed willingness to jointly safeguard energy security and supply chain stability, emphasizing the mutually beneficial nature of China-US economic and trade relations. Qiushi Journal published an important article by General Secretary Xi Jinping titled "Making the Real Economy Stronger, Better, and Bigger." The article pointed out that manufacturing is the foundation of the real economy, and high-quality development of manufacturing should be given a more prominent position, with unwavering commitment to building a manufacturing powerhouse. It called for implementing industrial foundation re-engineering projects and major technical equipment breakthrough projects, supporting the development of specialized, refined, distinctive, and innovative enterprises, and promoting high-end, intelligent, and green development of manufacturing. It also called for promoting the integrated cluster development of strategic emerging industries and building a batch of new growth engines in areas such as next-generation information technology, artificial intelligence, biotechnology, new energy, new materials, high-end equipment, and green environmental protection. US dollar: As of last Friday's overnight close, the US dollar index rose 0.41% to 99.28, up 1.45% on the week. Rising energy prices and prolonged shipping disruptions intensified inflationary pressures, pushing up market expectations that the US Fed would raise interest rates this year. US interest rate futures prices fell sharply on Friday, reflecting growing conviction among bond market investors that elevated inflation would force the US Fed to raise interest rates later this year or in early 2027. According to the CME FedWatch tool, the market priced in approximately a 60% probability of a 25-basis-point rate hike by the Federal Open Market Committee (FOMC) meeting next January, with a 50% probability of a rate hike in December. US April retail sales grew further, but part of the increase may have stemmed from rising inflation, as the Iran conflict pushed up energy and other commodity prices. Data released Thursday showed April retail sales rose 0.5%, in line with market expectations, while the March increase was revised down to 1.6%. The Iran conflict is driving up inflation; US Energy Information Administration data showed gasoline prices rose 12.3% in April. Despite surging oil prices, consumer spending had not yet noticeably shifted away from other areas due to larger tax refund amounts this year. IRS data showed that as of April 25, the average refund amount increased by $323 compared to the same period in 2025. However, this support is fading. Economists at PNC Financial Services Group stated that based on internal data analysis, "consumers are spending their tax refunds faster than last year, especially among lower-income households," adding that "the amount of refund money being used to pay off credit card and other debts is also declining." (Jin10 Data APP) The Fed Board of Governors said in a statement on Friday that it had appointed Jerome Powell as chair pro tempore until his successor Kevin Warsh is officially sworn in. The US Fed stated: "This interim step of appointing the current chair as chair pro tempore is consistent with the practice followed during previous chair transitions." In response, Fed Governors Bowman and Milan stated that they did not support the interim appointment. On May 15, Powell's term as Fed Chairman expired. (Wallstreetcn) Analysts at BofA Global Research: If strong global economic growth prevents the US Fed from cutting interest rates, emerging markets could perform well. However, under scenarios of asymmetric growth (favoring the US) or a global stagflation shock, emerging markets would be more vulnerable. On the currency front, even though the election trigger point is still months away, commodity outlook and monetary policy should continue to provide support for the Brazilian real. (Wallstreetcn) Data: This week, China will release data including April total retail sales of consumer goods YoY, April industrial value added of enterprises above designated size YoY, the one-year Loan Prime Rate as of May 20, and April Swift RMB share in global payments. The US will release data including initial jobless claims for the week ending May 16, weekly ADP employment change for the week ending May 2, April pending home sales index MoM, April annualized housing starts, April building permits, May Philadelphia Fed Manufacturing Index, continuing jobless claims for the week ending May 9, May S&P Global Manufacturing PMI preliminary, May S&P Global Services PMI preliminary, May University of Michigan Consumer Sentiment Index final, May NAHB Housing Market Index, May one-year inflation expectations final, and April Conference Board Leading Index MoM. The UK will release data including March three-month ILO unemployment rate, April unemployment rate, April claimant count, April CPI MoM, April Retail Price Index MoM, May Manufacturing PMI preliminary, May Services PMI preliminary, May CBI Industrial Orders balance, May GfK Consumer Confidence Index, April public sector net borrowing, and April seasonally adjusted retail sales MoM. Germany will release data including April PPI MoM, May Manufacturing PMI preliminary, June GfK Consumer Confidence Index, Q1 final non-seasonally adjusted GDP YoY, and May IFO Business Climate Index. The eurozone will release data including March seasonally adjusted trade balance, April CPI YoY final, April CPI MoM final, May Manufacturing PMI preliminary, March seasonally adjusted current account, and May Consumer Confidence Index preliminary. Canada will release data including April CPI MoM and March retail sales MoM. Japan's April core CPI YoY, France's May Manufacturing PMI preliminary, and Australia's April seasonally adjusted unemployment rate will also be released. In addition, in China, the National Bureau of Statistics (NBS) will release the monthly report on residential property prices in 70 large and medium-sized cities, the State Council Information Office will hold a press conference on the national economic performance, and a new round of domestic refined oil price adjustment window will open. At 2:00 AM on May 21, the US Fed will release the minutes of its monetary policy meeting. The Reserve Bank of Australia will release the minutes of its May monetary policy meeting. ECB Chief Economist Lane and Fed Governor Waller will speak at an ECB research conference. 2026 FOMC voter and Philadelphia Fed President Paulsen will deliver a speech. Crude oil: As of last Friday's overnight close, the US-Iran standoff over Strait of Hormuz passage remained unresolved, and both benchmarks rose. WTI gained 4.44% and Brent gained 3.55%. On the week, WTI rose 10.73% and Brent rose 8.08%. As the Iran conflict cut off energy supplies from the Persian Gulf, US refiners are ramping up fuel production to fill supply gaps in gasoline, diesel, and jet fuel. Analysts said this rapid growth trend is expected to keep many refineries operating at effective maximum capacity for at least the remainder of 2026. Reduced spare crude oil supply in Europe and other regions, combined with the difficulty of restoring post-conflict infrastructure in the Middle East in the short term, is pushing up crude oil refining margins. Analysts said this rapid growth trend is expected to keep many refineries operating at effective maximum capacity for at least the remainder of 2026. Data from the US Energy Information Administration showed that the so-called "capacity utilization rate" has climbed for three consecutive weeks and is now approaching 92%. In recent weeks, gasoline production hit a nine-month high, while jet fuel production reached its highest level since the summer of 2024. (Jin10 Data APP) US Energy Secretary Wright said at an event in Sabine Pass, Texas on Friday that the US will replenish every barrel of crude oil released from the Strategic Petroleum Reserve (SPR). He said: "We are releasing oil now, and for every barrel released, we will put back at least 1.2 barrels into the reserve. Ultimately, we will make the reserve larger than when we started." (Jin10 Data APP) According to US media reports, the Trump administration plans to streamline the permitting process for oil projects within the National Petroleum Reserve-Alaska to boost crude oil production in the US Arctic region. The Interior Department's move aims to establish a new permitting framework for the construction and operation of oil production facilities and related infrastructure. Under the plan, eligible projects could receive analysis and authorization more quickly, potentially within just 30 days. This initiative could benefit companies holding leases in the reserve, such as ConocoPhillips, Santos, and Repsol, and accelerate government review of projects like ConocoPhillips' Willow project, which had drawn strong opposition from climate activists. During the Iran conflict, with approximately 20% of global supply trapped in the Persian Gulf, the Trump administration has stepped up calls for US oil companies to increase production. (Jin10 Data APP) US import and export prices surged in April, posting the largest increases in over four years, driven by oil market pressures related to the Iran conflict, further signaling rising inflation in the world's largest economy. Data released Thursday by the Bureau of Labor Statistics showed the import price index rose 1.9% MoM, the largest increase since March 2022, with petroleum costs surging 19%. Export prices rose 3.3% MoM, also the largest increase in over four years. (Wallstreetcn)

SMM May 14: Metals market: As of the midday close, base metals in the domestic market mostly fell. SHFE copper fell 1.07%. SHFE aluminum fell 0.3%. SHFE lead rose 0.27%, SHFE zinc rose 0.44%. SHFE tin fell 0.87%. SHFE nickel fell 1.06%. In addition, the most-traded foundry aluminum futures fell 0.3%, the most-traded alumina contract rose 0.29%. The most-traded lithium carbonate contract fell 2.01%. The most-traded silicon metal contract fell 0.29%. The most-traded polysilicon futures rose 0.49%. Ferrous metals mostly fell. Iron ore fell 0.43%, rebar fell 0.25%, hot-rolled coil edged down, and stainless steel fell 1.52%. Coking coal and coke: the most-traded coking coal contract rose 0.57%, and the most-traded coke contract rose 0.8%. Overseas market base metals, as of 11:41, LME metals nearly all declined. LME copper fell 1.08%. LME aluminum fell 0.9%, LME lead edged up 0.02%. LME zinc edged down. LME tin fell 2.76%. LME nickel fell 1.57%. Precious metals, as of 11:41, COMEX gold fell 0.33%, COMEX silver fell 2.2%. Domestic precious metals: the most-traded SHFE gold contract fell 0.04%, the most-traded SHFE silver contract rose 1.6%. In addition, as of the midday close, the most-traded platinum futures rose 0.28%, and the most-traded palladium futures fell 0.27%. As of the midday close, the most-traded Europe containerized freight index contract fell 4.32%, closing at 2,434 points. As of 11:41 on May 14, midday futures quotes for selected contracts: Spot and fundamentals Nickel: On May 14, SMM #1 refined nickel prices fell 1,200 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,350 yuan/mt, up 100 yuan/mt from the previous trading day... Macro front [Xi Jinping: The Essence of China-US Economic and Trade Relations Is Mutual Benefit and Win-Win] On the morning of May 14, President Xi Jinping held talks with US President Trump, who was on a state visit to China, at the Great Hall of the People in Beijing. Xi Jinping pointed out that facts have repeatedly proven that there are no winners in a trade war, the essence of China-US economic and trade relations is mutual benefit and win-win, and equal consultation is the only correct choice when facing differences and frictions. Yesterday, the economic and trade teams of both sides reached overall balanced and positive outcomes, which is good news for the people of both countries and for the world. Both sides should work together to maintain the current hard-won positive momentum. (CCTV News) [Xi Jinping: Making 2026 a Historic and Landmark Year for China-US Relations to Build on the Past and Open Up the Future] On the morning of May 14, President Xi Jinping held talks with US President Trump, who was on a state visit to China, at the Great Hall of the People in Beijing. Xi Jinping emphasized that the common interests between China and the US outweigh their differences, that the success of each country represents an opportunity for the other, and that stability in China-US relations benefits the world. Both sides should be partners rather than rivals, achieving mutual success and shared prosperity, and forging a path of proper engagement between major countries in the new era. He looked forward to exchanging views with President Trump on major issues concerning both countries and the world, jointly steering the great ship of China-US relations on the right course, and making 2026 a historic and landmark year for China-US relations to build on the past and open up the future. (Xinhua News Agency) China: [PBOC Reverse Repo Operations Resulted in a Net Withdrawal of 26.5 Billion Yuan for the Day] The PBOC conducted 500 million yuan of 7-day reverse repo operations today. As 27 billion yuan of 7-day reverse repos matured today, a net withdrawal of 26.5 billion yuan was achieved for the day. US Dollar: As of 11:41, the US dollar index fell 0.01% to 98.48. Driven by a sharp climb in energy prices amid Middle East conflicts, the US April Producer Price Index (PPI) significantly exceeded expectations, posting the largest increase in over three years, and market bets on a Fed rate hike warmed notably. Data released by the US Bureau of Labor Statistics showed: US April PPI came in at 6% YoY, the highest level since December 2022. Expectations were 4.8%, with the prior reading at 4%. US April PPI rose 1.4% MoM, the largest single-month increase since March 2022. Expectations were 0.5%, with the prior reading at 0.5%. US April core PPI came in at 5.2% YoY (expectations: 4.3%, prior: 3.8%). US April core PPI rose 1% MoM (expectations: 0.3%, prior: 0.1%). The money market has now priced in approximately 24 basis points of rate hikes ahead of the Fed's June 2027 policy meeting, up from 21 basis points at Tuesday's close. The market priced in roughly a 50% probability of one rate hike within 2026. (Wallstreetcn) According to the CME "FedWatch" tool, the market has now priced in a probability of over 30% for a rate hike by December. Following the unexpectedly strong US April PPI data, the market believes it is now even harder for the US Fed to justify any interest rate cuts this year. In April, the PPI rose 1.4%, well above economists’ consensus expectations of 0.5%, indicating inflationary pressures were stronger than expected and reinforcing the market’s trend toward repricing the interest-rate path. (Jin10 Data) On the data front: Today will see the release of the UK Q1 preliminary annual GDP growth rate, the UK March three-month GDP monthly rate, the UK March manufacturing production monthly rate, Canada March wholesale sales monthly rate, the US weekly initial jobless claims for the week ending May 9, the US April retail sales monthly rate, the US April import price index monthly rate, and other data. In addition, attention should be paid to: 2026 FOMC voting member and Minneapolis Fed President Kashkari participating in a discussion hosted by the local chamber of commerce; the Bank of Canada releasing the minutes of its monetary policy meeting; 2026 FOMC voting member and Dallas Fed President Logan taking part in a dialogue on the energy industry; 2028 FOMC voting member and Kansas City Fed President Schmid delivering remarks on “payments innovation and community banks”; and US President Trump paying a state visit to China. On crude oil: As of 11:41, oil prices in both markets edged up, with WTI up 0.42% and Brent up 0.4%. The market continued to focus on developments in the US-Iran situation. US Vice President Vance said on Wednesday local time: “On the negotiations with Iran, I think progress is being made. Right now we’re focused on the diplomatic track, and I spoke this morning with Special Envoy Witkoff and Kushner. The fundamental issue in the talks is whether we can make enough progress to meet the red lines set by Trump. That red line is very simple. He needs to be confident that we have put in place sufficient safeguards to ensure Iran never obtains a nuclear weapon.” Commenting on the previously released CPI data, Vance said: “Last month’s inflation data wasn’t ideal. The President, I, and the entire team care about the financial situation of the American people.” (Jin10 Data) OPEC’s monthly report showed that Saudi Arabia’s daily crude oil production in April fell to 6.316 million barrels, the lowest since 1990. Saudi Arabia also reported to OPEC that “actual market supply,” excluding the portion injected into storage, was slightly higher than production, reaching a daily average of 6.879 million barrels. (Wallstreetcn) Hunter Hunt, grandson of Texas oil tycoon H.L. Hunt, worried that damage to energy infrastructure in the Middle East could lead to a decline in oil production over the next few years. Hunt discussed many Iran-war-related issues, including production shutdowns, refinery damage, and the effective closure of the Strait of Hormuz, through which about one-fifth of the world’s crude oil had once been transported. “This is literally the nightmare that no one wants to see in their plans," Hunt said on Wednesday. Hunt rarely speaks publicly. He runs the 91-year-old Hunt Oil Company, which operates globally, including in Yemen and the Kurdistan region of Iraq. (Jin Shi Data) Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ►

Futures: Overnight, LME lead opened at $1,987/mt and fluctuated downward to a low of $1,972.5/mt during the Asian session. Driven by concerns over ore supply disruptions due to energy shortages in Peru, LME lead rallied firmly during the European session, touching a high of $1,998/mt near the close and ultimately settling at $1,997.5/mt, up 0.45%. Overnight, the most-traded SHFE lead 2606 contract opened at 16,595 yuan/mt, briefly touched a high of 16,605 yuan/mt at the start, then fluctuated downward to a low of 16,520 yuan/mt before moving sideways near the close, ultimately settling at 16,525 yuan/mt, down 0.33%, marking a fifth consecutive decline. On the macro front: A US appeals court stayed an unfavorable ruling on Trump's 10% global tariffs. India raised the basic customs duty on gold and silver imports from 5% to 10%. Indian banks proactively paid customs duties to resume gold and silver imports, completing customs clearance of 9 mt of gold and 34 mt of silver in May. Russia cut its 2026 crude oil production forecast by 14.2 million mt to 511 million mt, and its export forecast by 4.5 million mt to 237.2 million mt. The US overall CPI annual rate for April was 3.8%, exceeding the expected 3.7% and hitting the highest level since May 2023, with the energy index contributing over 40% of the overall increase. : As the SHFE lead price center shifted further downward, suppliers sold along with the market, with some lowering discounts for shipments. However, affected by the crackdown on "invoice-based tax arbitrage," some trading companies had their invoicing quotas reduced, restricting lead market trading. Primary lead from smelters in the form of cargoes self-picked up from production site was increasingly directed toward downstream enterprises. Additionally, as secondary lead losses widened, smelters showed strong hold back from selling sentiment, with notably fewer spot order quotations. Mainstream production areas quoted secondary refined lead at premiums of +0~+50 yuan/mt over SMM #1 lead on an ex-factory basis. Downstream enterprises maintained just-in-time procurement, with inquiry enthusiasm rising compared to the previous day. However, given the weak lead price trend, apart from some downstream enterprises that purchased as needed, most preferred to wait and see. Inventory: On May 12, LME lead inventory decreased by 375 mt to 265,550 mt. As of May 11, SMM five-region lead ingot social inventory increased by approximately 2,200 mt WoW. Lead price forecast for today: The SHFE lead 2605 contract will enter delivery this week. Suppliers continued to transfer lead ingots to delivery warehouses, and lead ingot social inventory maintained its upward trend, surpassing the 70,000 mt mark again for the first time in nearly two months. Recently, the lead-acid battery market remained in off-season mode, and primary lead supply was stable to rising. In particular, following the sharp rally in SHFE lead last week, downstream enterprises were reluctant to purchase at high prices, and the spread between futures and spot prices widened to above 200 yuan/mt. Suppliers' willingness to ship to delivery warehouse increased. Lead ingot social inventory is expected to continue rising before delivery is completed, with notable resistance for lead prices. Data Source Statement: All data other than publicly available information is SMM processed data based on publicly available information, market communication, and SMM's internal database model, for reference only and does not constitute decision-making advice.

SMM May 7: Metals market: As of the midday close, base metals in the domestic market showed mixed performance. SHFE copper rose 0.43%, SHFE aluminum fell 1.76%, SHFE lead fell 0.36%, SHFE zinc rose 0.41%, SHFE tin rose 3.16%, and SHFE nickel fell 3.33%. In addition, the most-traded casting aluminum futures fell 1.85%, the most-traded alumina contract rose 0.49%, the most-traded lithium carbonate contract rose 0.08%, the most-traded silicon metal contract rose 2.03%, and the most-traded polysilicon futures rose 4.79%. Ferrous metals showed mixed performance. Iron ore rose 0.55%, rebar rose 0.68%, hot-rolled coil rose 0.29%, and stainless steel fell 1.12%. Coking coal and coke: the most-traded coking coal contract fell 1.22%, and the most-traded coke contract fell 1.2%. Overseas base metals, as of 11:41, LME metals mostly fell. LME copper fell 0.22%, LME aluminum fell 1.16%, LME lead rose 0.23%, LME zinc fell 0.29%, LME tin fell 1.71%, and LME nickel fell 0.13%. Precious metals, as of 11:41, COMEX gold rose 0.39% and COMEX silver rose 1.35%. Domestic precious metals: the most-traded SHFE gold contract rose 1.11%, and the most-traded SHFE silver contract rose 3.43%. In addition, as of the midday close, the most-traded platinum futures rose 3.21%, and the most-traded palladium futures rose 1.71%. As of the midday close, the most-traded Europe containerized freight index contract fell 3.35%, closing at 2,355.5 points. As of 11:41 on May 7, midday futures quotes for selected contracts: Spot cargo and fundamentals Nickel: On May 7, SMM #1 refined nickel prices fell 5,050 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,150 yuan/mt, down 100 yuan/mt from the previous trading day... Macro front China: [PBOC reverse repo operations resulted in a net drain of 99.2 billion yuan for the day] The PBOC conducted 27 billion yuan of 7-day reverse repo operations today. As 126.2 billion yuan of 7-day reverse repos matured today, a net drain of 99.2 billion yuan was achieved for the day. [HKEX CEO: LME warehouses in Hong Kong nearing full capacity] HKEX CEO Bonnie Y. Chan said that the storage capacity of a series of LME-approved warehouses in Hong Kong was nearing saturation. The LME began approving metal warehouses in Hong Kong last year. Speaking at a seminar during LME Asia Week in Hong Kong, Chan said the LME currently had 15 warehouses in Hong Kong, compared with just 4 a year ago. She called this an important milestone in establishing physical market connectivity. LME and Hong Kong Exchanges will explore more collaborative projects, including futures and RMB-denominated products, to build a comprehensive commodities ecosystem in Asia. (Jin10 Data) US dollar: As of 11:41, the US dollar index fell 0.01% to 98.01. Chicago Fed President Goolsbee said on Wednesday that the war with Iran increasingly appeared to be an inflationary shock to the economy. Although the impact on employment and economic growth was not yet evident, concerns about supply chain disruptions and sustained price increases were intensifying. "This is not yet a 'stagflation' shock," meaning the kind that hits the job market while pushing up inflation and forces the US Fed to decide which of its policy objectives faces greater risk, Goolsbee said after attending the Milken Institute conference in Los Angeles. "This is just an inflation shock. And the longer this persists, the more uneasy I become." According to CME "FedWatch": the probability of the US Fed keeping rates unchanged through June was 93.5%, with a cumulative 25-basis-point interest rate cut probability of 6.5%. The probability of the US Fed keeping rates unchanged through July was 86.5%, with cumulative probabilities of a 25-basis-point cut at 13.0% and a 50-basis-point cut at 0.5%. (Jin10 Data) Other currencies: On the first day of resumed trading in the Japanese market, the yen broadly stabilized against other G10 currencies and Asian currencies. However, analysts noted that the yen's downside room against the US dollar is likely to be limited due to potential foreign exchange intervention by Japanese authorities. Analysts at Maybank stated in a foreign exchange research report that the unpredictability of Japanese authorities' actions would limit the upside room for USD/JPY in the short term. Given that three suspected interventions have already occurred after the currency pair breached the 157.00 level, the market is now increasingly wary of pushing the dollar above that level. (Jin10 Data) Data: China's April foreign exchange reserves (TBD), 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, Eurozone March retail sales MoM, France March trade balance, and Switzerland April seasonally adjusted unemployment rate are scheduled for release today. In addition, 2027 FOMC voter and Chicago Fed President Goolsbee will participate in a panel discussion at a conference. Crude oil: As of 11:41, oil prices in both markets rose, with WTI up 0.86% and Brent up 0.87%. The market weighed the prospects of a Middle East peace agreement. A decline in US crude oil inventory last week supported oil prices. US EIA Cushing, Oklahoma crude oil inventory for the week ending May 1 was -648,000 barrels, compared to the previous value of -796,000 barrels. US EIA crude oil inventory for the week ending May 1 was -2.313 million barrels, versus expectations of -3.291 million barrels and a previous value of -6.234 million barrels. US EIA Strategic Petroleum Reserve inventory for the week ending May 1 was -5.224 million barrels, compared to the previous value of -7.121 million barrels. According to federal data released Wednesday, US energy inventories continued to decline rapidly due to supply shocks caused by the Middle East war, highlighting the tightening supply problem as the energy crisis continued to spread. According to data from the US Energy Information Administration (EIA), refined product inventories, including diesel, plunged by 1.3 million barrels last week to the lowest level since April 2003. These inventories are currently 11% below the five-year seasonal average. Due to refinery shutdowns, diesel prices recently hit record highs in Wisconsin, Illinois, and Michigan. (CNN) According to a person familiar with the matter, the Trump administration is exploring the use of oil resources beneath US military bases and other Department of Defense sites to replenish the nation's dwindling emergency reserves. The source said no decision has been made on this potential move. This comes as the US government has pledged to explore innovative ways to replenish the Strategic Petroleum Reserve, which was further depleted during the Iran war. (Jin10 Data) According to a foreign media survey, OPEC's crude oil production fell to a 36-year low last month as the ongoing Iran war continued to obstruct Persian Gulf exports and forced more oil fields to shut down. The survey showed that OPEC's April crude oil production decreased by 420,000 barrels per day to 20.55 million barrels per day, the lowest level since 1990, mainly dragged down by further production declines in Kuwait and Iran. The survey showed that Kuwait saw the largest production drop last month, with daily output falling by 470,000 barrels to 800,000 barrels per day, less than one-third of pre-war levels. The country's exports have fallen to just 22,000 barrels per day. Iran followed, with production declining by 180,000 barrels per day to 3.05 million barrels per day, doubling the cumulative production cuts since the war began. OPEC also suffered another blow last week. The UAE announced its withdrawal from the organization, following years of friction with the group's leader Saudi Arabia over production limits. The April survey still included UAE data, as the UAE's withdrawal did not officially take effect until May 1. (Bloomberg) Spot market overview: ► ► ► ► ► ► ► ► ►

SMM May 7 News: Metals market: Overnight, base metals in both domestic and overseas markets showed mixed performance. SHFE tin continued its strong momentum from the previous day's session, ultimately closing up 5.01%. SHFE nickel fell 2.68%. LME tin led the gains with a remarkable 9.01% increase, LME copper rose 2.22%, and LME zinc gained 1.52%. LME aluminum fell 1.02%, LME nickel dropped 2.22%, and the remaining metals posted % changes within 1%. The alumina front-month contract rose 1.13%, while the foundry aluminum front-month contract fell 1.03%. Overnight ferrous metals: stainless steel fell 1.15%, hot-rolled coil rose 0.26%, and rebar gained 0.68%. Coking coal and coke: coking coal fell 0.92%, and coke dropped 0.64%. Overnight precious metals: COMEX gold rose 2.95%, and COMEX silver gained 5.77%. In China, SHFE gold rose 0.98%, and SHFE silver gained 2.8%. As of 6:45 AM on May 7, overnight closing prices: Macro Front China: [Ministry of Foreign Affairs: China and the US are maintaining communication regarding President Trump's visit to China] On May 6, Ministry of Foreign Affairs spokesperson Lin Jian hosted a regular press conference. A reporter asked about US President Trump's recent remarks concerning China. In response, Lin Jian stated that China and the US are maintaining communication regarding President Trump's visit to China. (CCTV News) (Jin10 Data APP) People's Bank of China: The weighted average interest rate on newly issued commercial personal housing loans nationwide in Q1 2026 was 3.06% . (Jin10 Data APP) US dollar: As of the overnight close, the US dollar index fell 0.49 to 98.02. Chicago Fed President Goolsbee said on Wednesday that the war with Iran increasingly resembles an inflationary shock to the economy. While the impact on employment and economic growth is not yet apparent, concerns about supply chain disruptions and sustained price increases are intensifying. "This is not yet a 'stagflationary' shock" — the kind that hits the job market while pushing up inflation, forcing the US Fed to decide which of its policy objectives faces greater risk — Goolsbee said after attending the Milken Institute conference in Los Angeles. "This is simply an inflationary shock. And the longer this persists, the more uneasy I become." (Jin10 Data APP) Chicago Fed President Goolsbee warned against instinctively cutting interest rates in response to faster productivity growth, as such a phenomenon can sometimes push up inflation. In prepared remarks released ahead of a panel discussion at the Milken Institute Global Conference on Wednesday local time, Goolsbee said the US Fed's response to faster productivity growth "depends in large part on whether the productivity growth happens unexpectedly or is expected to happen in the future." He said in the first scenario, inflation could be suppressed, allowing for interest rate cuts. In the latter scenario, additional investment and spending driven by productivity growth could push up inflation, requiring higher interest rates. Additionally, he emphasized the need to be wary of consumption and investment driven by future growth expectations. "The more intense the hype, the greater the need for rate hikes to prevent overheating," he said. (Jin10 Data APP) St. Louis Fed President Musalem said there is significant uncertainty surrounding the US economic and monetary policy outlook, but he believes that relative to employment risks, inflation risks are currently rising. Musalem said on Wednesday: "Inflation is clearly above our 2% target. We face risks on both the employment and inflation fronts. Based on my assessment, risks are tilting more toward inflation rather than employment." Musalem said the US Fed's benchmark policy rate is currently at a neutral level that neither stimulates nor restrains the economy, or possibly slightly accommodative. He said: "There are very plausible scenarios that require us to hold the current policy rate unchanged for a period of time." However, he also noted that he sees scenarios that could require officials to cut interest rates further, or to raise rates. (Jin10 Data APP) According to CME "FedWatch": The probability of the US Fed holding rates unchanged through June is 93.5%, with a 6.5% probability of a cumulative 25 basis point cut. The probability of holding rates unchanged through July is 86.5%, with a 13.0% probability of a cumulative 25 basis point cut and a 0.5% probability of a cumulative 50 basis point cut. (Jin10 Data APP) On the macro front: Today, China's April foreign exchange reserves (TBD), US April Challenger job cuts, US initial jobless claims for the week ending May 2, US March construction spending MoM, US April New York Fed 1-year inflation expectations, Eurozone March retail sales MoM, France March trade balance, and Switzerland April seasonally adjusted unemployment rate will be released. In addition, 2027 FOMC voter and Chicago Fed President Goolsbee will participate in a panel discussion at a conference. Crude oil: As of the overnight close, oil prices in both markets fell together, with WTI down 5.93% and Brent down 7.2%. FXPro chief market analyst Alex Kuptsikevich said in a report that as the US is unwilling to further escalate tensions in the conflict with Iran, the oil market has now priced in a peace deal as the base case scenario. "Once shipping resumes quickly, tankers trapped in the Strait of Hormuz will release supply in a concentrated burst in the short term, pushing down Brent and WTI crude prices." However, he added that since global inventories have already been depleted and repairs to damaged infrastructure in Gulf states still require time, oil prices are unlikely to return to pre-war levels before the end of this year. "The decline in Brent and WTI prices will likely be very rapid but will not last long." (Jin10 Data APP) According to market observer The Kobeissi Letter, approximately 70 minutes before Axios reported that the US and Iran were close to reaching consensus on a "14-point" agreement to end the war, crude oil short positions worth approximately $920 million were established. At 3:40 AM ET today (3:40 PM Beijing time), with no major news, the market established nearly 10,000 crude oil short contracts. In notional value, this trade was approximately $920 million — an unusually large transaction for the 3:40 AM time slot. 70 minutes later at 4:50 AM ET (4:40 PM Beijing time), Axios reported that the US was "close to" reaching a "memorandum of understanding" to end the Iran war. By 7:00 AM ET (7:00 PM Beijing time), oil prices had fallen more than 12%, and the aforementioned crude oil short positions had unrealized gains of approximately $125 million. (Jin10 Data APP) According to a foreign media survey, as the Iran conflict continued to hinder Persian Gulf exports and forced more oil fields to shut down, OPEC's crude oil production fell to a 36-year low last month. The survey showed that OPEC's April crude oil production decreased by 420,000 barrels per day to 20.55 million barrels per day, the lowest level since 1990, mainly dragged down by further declines in Kuwait and Iran production. The survey showed Kuwait had the largest production decline last month, with daily output falling by 470,000 barrels to 800,000 barrels per day, less than one-third of pre-war levels. The country's exports had fallen to just 22,000 barrels per day. Iran followed, with production declining by 180,000 barrels per day to 3.05 million barrels per day, doubling the cumulative production cuts since the war began. OPEC also suffered another blow last week. The UAE announced its withdrawal from the organization, following years of friction with the group's leader Saudi Arabia over production limits. The April survey still included UAE data, as the UAE's withdrawal did not officially take effect until May 1. (Bloomberg) (Jin10 Data APP) US EIA Strategic Petroleum Reserve inventory for the week ending May 1 was at its lowest since the week of December 6, 2024, and domestic crude oil production was at its lowest since the week of January 30, 2026. (Jin10 Data APP)

According to analysts and Reuters calculations, in the nearly 50 days since the Iran war broke out, more than $50 billion worth of crude oil has failed to be produced globally , and the repercussions of this crisis will continue to manifest in the coming months and even years. According to Kpler data, since the crisis erupted at the end of February, more than 500 million barrels of crude oil and condensate have disappeared from the global market — the largest energy supply disruption in modern history. According to Reuters estimates, this is equivalent to nearly one month of US oil demand, or more than one month of oil consumption for all of Europe. Based on the US military's annual consumption of approximately 80 million barrels in fiscal year 2021, this would be enough to supply the US military for roughly six years. This fuel would be sufficient to sustain the global international shipping industry for approximately four months. Key facts: Gulf Arab states lost approximately 8 million barrels per day of crude oil production in March , nearly equivalent to the combined production of the world's two largest oil companies — ExxonMobil (XOM.N) and Chevron (CVX.N). According to Kpler data, jet fuel exports from Saudi Arabia, Qatar, the UAE, Kuwait, Bahrain, and Oman fell from approximately 19.6 million barrels in February to just 4.1 million barrels combined in March and April to date. According to Reuters estimates, the lost exports would be enough to support approximately 20,000 round-trip flights from New York's JFK Airport to London's Heathrow Airport. Johannes Rauball, senior crude oil analyst at Kpler, said that since the conflict broke out, crude oil prices have averaged around $100 per barrel, and the missing production represents approximately $50 billion in lost revenue . This is equivalent to 1% of Germany's annual gross domestic product, or roughly the entire GDP of relatively small countries such as Latvia or Estonia. Even if the Strait of Hormuz can be reopened, the recovery of production and shipping is expected to be very slow. According to Kpler data, global onshore crude oil inventory has declined by approximately 45 million barrels so far in April. Since late March, the scale of production shutdowns has reached approximately 12 million barrels per day. Rauball said that heavy oil fields in Kuwait and Iraq may take four to five months to return to normal production levels, which will lead to continued inventory drawdowns throughout the summer. Damage to refining capacity and Qatar's Ras Laffan liquefied natural gas complex means that a full recovery of regional energy infrastructure could take years.

Data from the NBS showed that in March, raw coal production by above-designated-scale industrial enterprises totaled 440 million mt, flat YoY, with daily average production of 14.21 million mt. In January–March, raw coal production by above-designated-scale industrial enterprises totaled 1.2 billion mt, up 0.1% YoY. In March, crude oil production by above-designated-scale industrial enterprises totaled 19.07 million mt, up 0.2% YoY, with daily average production of 615,000 mt. In January–March, crude oil production by above-designated-scale industrial enterprises totaled 54.8 million mt, up 1.3% YoY. In March, crude oil processing volume by above-designated-scale industrial enterprises totaled 61.67 million mt, down 2.2% YoY, with daily average processing of 1.989 million mt. In January–March, crude oil processed by above-designated-scale industrial enterprises totaled 184.31 million mt, up 1.1% YoY. Energy Production in March 2026 In March, raw coal production by above-designated-scale industrial enterprises (hereinafter referred to as above-designated-scale industries) remained stable, crude oil production maintained growth, natural gas production growth accelerated, and power generation grew steadily. I. Raw Coal, Crude Oil, and Natural Gas Production and Related Information Raw coal production remained stable. In March, raw coal production by above-designated-scale industries totaled 440 million mt, flat YoY, with daily average production of 14.21 million mt. In January–March, raw coal production by above-designated-scale industries totaled 1.2 billion mt, up 0.1% YoY. Crude oil production maintained growth. In March, crude oil production by above-designated-scale industries totaled 19.07 million mt, up 0.2% YoY, with daily average production of 615,000 mt. In January–March, crude oil production by above-designated-scale industries totaled 54.8 million mt, up 1.3% YoY. Crude oil processing shifted from growth to decline. In March, crude oil processing volume by above-designated-scale industries totaled 61.67 million mt, down 2.2% YoY, with daily average processing of 1.989 million mt. In January–March, crude oil processed by above-designated-scale industries totaled 184.31 million mt, up 1.1% YoY. Natural gas production growth accelerated. In March, natural gas production by above-designated-scale industries totaled 23.4 billion m³, up 3.0% YoY, with the growth rate accelerating by 0.1 percentage points from January–February; daily average production was 750 million m³. In January–March, natural gas production by above-designated-scale industries totaled 68.1 billion m³, up 3.0% YoY. II. Power Generation Power generation by above-designated-scale industries grew steadily. In March, power generation by above-designated-scale industries totaled 802.5 billion kWh, up 1.4% YoY, with the growth rate pulling back by 2.7 percentage points from January–February; daily average power generation was 25.89 billion kWh. In January–March, power generation by above-designated-scale industries totaled 2,378.2 billion kWh, up 3.4% YoY. By category, in March, thermal power, hydropower, and solar power generation by above-designated-scale industries saw accelerated growth, while nuclear power and wind power shifted from growth to decline. Among them, thermal power generation by above-scale industrial enterprises was up 4.2% YoY, with the YoY growth rate 0.9 percentage points faster than that of January–February; hydropower generation was up 10.8% YoY, with the growth rate 4 percentage points faster; nuclear power generation was down 11.8% YoY, compared with a 0.8% increase in January–February; wind power generation was down 17.3% YoY, compared with a 5.3% increase in January–February; solar power generation was up 10.0% YoY, with the growth rate 0.1 percentage points faster than that of January–February.