SMM Nickel News May 25: Macro and market news: (1) Waller was sworn in, emphasizing that the US Fed will be "reform-oriented"; US Fed Governor Waller: The current stance is to keep rates stable in the near term. If inflation expectations become unanchored, rate hikes will be needed. (2) The PBOC announced that to maintain ample liquidity in the banking system, on May 25, 2026, the People's Bank of China will conduct a 600 billion yuan MLF operation with a fixed quantity, rate tender, and multiple-price winning method, with a tenor of 1 year. Spot market: On May 25, SMM #1 refined nickel prices rose 500 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, while domestic mainstream brand electrodeposited nickel ranged from -400 to 500 yuan/mt. Futures market: The most-traded SHFE nickel 2606 contract moved sideways in a narrow range during the morning session, closing at 143,810 yuan/mt, up 0.23%. Global visible inventory of refined nickel remains at high levels, and weak consumption is unable to quickly digest the surplus inventory. Nickel prices lack upward momentum, and the most-traded SHFE nickel contract is expected to move sideways within the range of 140,000-150,000 yuan/mt.

1 Tender Conditions The bid inviter for this tender project, Ansteel Powder Materials Ultra-High Power Graphite Electrodes (AGGZZBHGZHD260525290631), is the Tender Management Office of the Procurement and Supply Center of Ansteel Group Engineering Technology Development Co., Ltd. The project funds are self-raised. The project has met the tender conditions, and open tendering is now conducted. 2 Project Overview and Tender Scope 2.1 Project Name: Ansteel Powder Materials Ultra-High Power Graphite Electrodes 2.2 Conversion to other procurement methods upon tender failure: No conversion 2.3 The tender content, scope, and scale of this project are detailed in the attachment "Material List Attachment.pdf". 3 Bidder Qualification Requirements 3.1 Joint venture bidding is not permitted in this tender. 3.2 This tender requires bidders to possess the following qualification requirements: (1) Production-type quality management system certification (2) Production-type business license 3.3 This tender requires bidders to meet the following registered capital requirements: Production-type registered capital: 5 million yuan and above 3.4 This tender requires bidders to possess the following performance requirements: Supply performance of similar products after January 1, 2022 (one contract and corresponding invoice) 3.5 This tender requires bidders to possess the following capability requirements, financial requirements, and other requirements: Financial requirements: See attachments for details (if applicable) Capability requirements: See attachments for details (if applicable) Other requirements: See attachments for details (if applicable) 3.6 This tender requires that for projects subject to mandatory tendering by law, bids from persons subject to enforcement for breach of trust shall be invalid. 4 Obtaining Tender Documents 4.1 All parties interested in bidding are requested to log in to the Ansteel Smart Tender and Bid Platform at http://bid.ansteel.cn to download the electronic tender documents from 13:00 on May 25, 2026 to 13:00 on June 15, 2026 (Beijing time, the same hereinafter). Click to view tender details:

On May 25, SMM #1 refined nickel prices rose 500 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, while domestic mainstream brand electrodeposited nickel ranged from -400-500 yuan/mt.

SMM Morning Meeting Minutes: Last Friday evening, LME copper opened at $13,624.5/mt. In the early session, it experienced wild swings and dipped to $13,575.5/mt. Subsequently, the center of copper prices shifted upward, reaching a high of $13,678/mt, before fluctuating downward to finally close at $13,635/mt, up 0.18%. Trading volume reached 16,200 lots, and open interest stood at 269,000 lots, a decrease of 3,435 lots from the previous trading day, indicating bears reducing positions. Last Friday evening, the most-traded SHFE copper 2607 contract opened at 104,870 yuan/mt. In the early session, the center of copper prices fluctuated downward, touching a low of 104,420 yuan/mt. Subsequently, it fluctuated upward, reaching 105,280 yuan/mt, before moving sideways to finally close at 105,090 yuan/mt, up 0.58%. Trading volume reached 33,600 lots, and open interest stood at 172,000 lots, an increase of 627 lots from the previous trading day, indicating bulls adding positions.

Preliminary data indicated that global copper mine production in Q1 2026 was basically flat, with copper concentrates production declining by 1.1%, offset by a 3.3% increase in solvent extraction-electrodeposition (SX-EW) production.Although global mine production benefited from additional output from capacity ramp-up at projects in several countries, significant declines in copper concentrates production in Chile, the DRC, and Indonesia offset global growth.In Indonesia, copper concentrates production at the Grasberg mine fell by 42%, as the severe mud inflow event that occurred in September last year continued to impact production at the mine.

The International Copper Study Group (ICSG) released preliminary data on global copper supply and demand for March 2026 in its monthly bulletin published in May 2026. Preliminary data indicated that global copper mine production in Q1 2026 was basically flat, with copper concentrates production declining by 1.1%, offset by a 3.3% increase in solvent extraction-electrodeposition (SX-EW) production. Although global mine production benefited from additional output driven by capacity ramp-up of projects in several countries, significant declines in copper concentrates production in Chile, the DRC, and Indonesia offset global growth. In Indonesia, copper concentrates production at the Grasberg mine fell by 42%, as the severe mud inflow incident that occurred in September last year continued to affect the mine's production. Chile's mine production declined by 5.8%, with increased production at the Collahuasi and Quebrada Blanca mines offset by production cuts at the Spence, El Teniente, Escondida, and Los Pelambres mines. The DRC's mine production is estimated to have grown by only 0.5%: SX-EW production increased by approximately 10%, but was partially offset by a 36% decline in copper concentrates production due to reduced output at the Kamoa mine (affected by the 2025 earthquake event). In Peru, copper mine production grew by 3.3%, primarily driven by increased production at the Antamina, Las Bambas, and Antapaccay mines, which more than offset production declines at Southern Peru Copper, Quellaveco, and Marcobre. Mongolia's copper concentrates production is estimated to have grown by approximately 36%, benefiting from the capacity ramp-up of the Oyu Tolgoi underground project. Preliminary data indicated that global copper cathode production grew by approximately 4.5% in Q1 2026, with primary copper (electrolysis and ore electrodeposition) production increasing by 3.8% and secondary copper (from scrap) production increasing by 7.6%. China and the DRC, which currently account for approximately 60% of global production, saw their combined production increase by an estimated 9% (China 8.8%, DRC 10%). Excluding these two countries, global copper cathode production declined by approximately 1.4%. Chile's copper cathode production fell by 11.7%, with copper cathode (from concentrates) production declining by 24% due to smelter operational constraints and maintenance, and electrodeposition copper production declining by 5.7%. Production in Asia (excluding China) is estimated to have declined by 4%, mainly due to production decreases in Japan, Indonesia, and the Philippines. India's production is estimated to have grown by 25%, benefiting from improved capacity utilization rates and the capacity ramp-up of the Adani smelter. Global secondary refined copper production (from scrap) increased by 7.6%, mainly driven by growth in China. Preliminary data indicated that global apparent refined copper usage grew by 0.8% in Q1 2026. Although global usage excluding China was estimated to have grown by 1.7%, China's apparent demand (excluding bonded warehouse/unreported inventory changes) was estimated to be basically flat, affected by a 40% decline in China's net imports of copper cathode. China currently accounts for approximately 58% of total global refined copper usage. The preliminary global refined copper supply-demand balance indicated an oversupply of 396,000 mt in Q1 2026. In compiling the global market balance, ICSG used China's apparent demand calculation method, which does not account for changes in unreported inventories. However, to facilitate global market analysis, an adjustment item has been added to the attached tables — "Global refined copper balance adjusted for Chinese bonded warehouse inventory changes" — which adjusts the global refined copper balance based on the average bonded warehouse inventory change estimates from two Chinese copper market consultancies. In Q1 2026, the global refined copper balance based on China's apparent usage (excluding bonded warehouse/unreported inventory changes) showed a preliminary oversupply of approximately 396,000 mt, compared with an oversupply of approximately 135,000 mt in the same period of 2025. The global refined copper balance adjusted for estimated changes in Chinese bonded warehouse inventories showed a market oversupply of approximately 386,000 mt. Copper Prices and Inventories: Based on the average estimates from two independent consultancies, Chinese bonded warehouse inventories were estimated to have decreased by approximately 10,000 mt from the end of 2025 levels during the first three months of 2026. As of the end of April 2026, copper inventories at major metal exchanges (LME, COMEX, SHFE) totaled 1,148,760 mt, the highest level since January 2003. Inventories increased by 404,648 mt, or 55%, from the end of December 2025, with LME up 253,350 mt, Shanghai Futures Exchange up 46,683 mt, and COMEX up 104,615 mt. The LME spot copper average price in April was $12,891.38 per mt, up 3% from the March average price of $12,498.98 per mt. The 2026 copper price high and low were $14,097 per mt (May 13) and $11,826 per mt (March 19), respectively, with a year-to-date average price of $12,947.22 per mt, up 30% from the 2025 average price. Global Refined Copper Supply and Demand Trends Notes: 1/ Refers to apparent usage 2/ Refined copper balance = production - usage 3/ Seasonally adjusted balance data 4/ Global refined copper balance adjusted for estimated changes in Chinese bonded warehouse inventories (Wenhua Composite)

Nickel prices were generally in the doldrums this week. The most-traded SHFE nickel contract moved sideways within the 142,000-147,000 yuan/mt range, pulling back after attempting to test resistance at overhead moving averages. The main bearish factors came from continued inventory buildup, which suppressed bullish sentiment. Wait-and-see sentiment was prevalent in the market, with no clear unidirectional driver. LME nickel prices were similarly in the doldrums within the $18,300-19,000/mt range. Spot market side, the weekly average price of SMM #1 refined nickel was 143,510 yuan/mt, up 350 yuan/mt WoW. Jinchuan nickel premiums remained at 1,000-1,400 yuan/mt this week. Domestic mainstream electrodeposited nickel premiums stayed in the -500-500 yuan/mt range, with no significant change from last week. Spot market transactions returned to a sluggish state this week, mainly because end-users had actively stockpiled during the previous sharp decline in nickel prices. With futures moving sideways this week, downstream willingness to price against futures was low, with just-in-time procurement being the dominant mode. On the macro front, Fed Chairman transition was completed this week, with new Chairman Waller officially taking office. Market expectations for US Fed interest rate cuts were pushed back to H2 2027, with the possibility of rate hikes not ruled out. Meanwhile, the 10-year US Treasury yield remained in the elevated range of approximately 4.35%-4.45% this week, and the US dollar index stayed strong, continuing to weigh on non-ferrous commodity prices. Inventory side, Shanghai Bonded Zone inventory was approximately 1,700 mt this week, flat WoW. Domestic social inventory was approximately 113,000 mt, with an inventory buildup of approximately 1,100 mt WoW. Currently, bullish and bearish forces are balanced, with continued refined nickel inventory buildup being the core factor suppressing nickel prices. In the short term, absent new catalysts, nickel prices are expected to continue moving sideways with wild swings within the 140,000-150,000 yuan/mt range.

SMM Nickel News May 22: Macro and market news: (1) Chinese Premier Li Qiang chaired a State Council executive meeting on May 21 to study work related to advancing the building of a unified national market, reviewed and approved the "Modernization of Emergency System Construction 15th Five-Year Plan," and discussed the "Law of the People's Republic of China on the People's Bank of China (Revised Draft)." The meeting noted the need to further advance high-standard connectivity of market facilities, smooth economic circulation, and effectively reduce logistics costs across society. (2) US Secretary of State Rubio said on May 21 that the US is engaging with Cuba and hopes to reach an agreement through negotiations, but there has been no substantive progress so far, and the likelihood of reaching an agreement is low. Spot market: On May 22, SMM #1 refined nickel prices fell 700 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,250 yuan/mt, up 50 yuan/mt from the previous trading day, and domestic mainstream brand electrodeposited nickel ranged at -400-500 yuan/mt. Futures market: The most-traded SHFE nickel 2606 contract moved sideways in a narrow range during the morning session, closing at 143,530 yuan/mt, down 0.59%. The most-traded SHFE nickel contract is expected to move sideways within the range of 140,000-150,000 yuan/mt. The downside is supported by bottom cost support from sulfur prices fluctuating at highs; the upside is capped by the dual pressure of continued inventory buildup on both the LME and in China.

China’s hydrogen market is showing clear divergence: alkaline electrolyzers are booming with frequent deliveries, PEM electrolyzers stay quiet, and AEM technology is quietly advancing. This “ice and fire” trend reveals competition over technical maturity and market selection. Meanwhile, breakthroughs in storage, transportation and refueling are reshaping the industry, marking a more rational and practical stage for China’s hydrogen sector. I. Alkaline Electrolyzers: Booming on Cost and Scale Alkaline electrolyzers dominate the market with surging deliveries and large-scale deployment. CRRC Zhuzhou Institute shipped 12 sets of 1200 Nm³/h alkaline electrolyzers for CHN Energy’s “Liquid Sunshine” project; CFHI delivered a 3,000 Nm³/h system; and PetroChina’s 2,000 Nm³/h unit successfully commissioned with hydrogen purity reaching 99.9995%.Sunshine Hydrogen won a 30,000 Nm³/h contract for a green methanol project, while EVE Hydrogen and Haozhen Hydrogen also completed deliveries. Driven by mature technology, low cost and a complete supply chain, alkaline electrolyzers have become the top choice for large-scale, cost-sensitive green hydrogen projects. II. PEM Electrolyzers: Silent Strategic Reserve PEM electrolyzers are largely absent from recent headlines mainly due to high costs from precious metal catalysts and proton exchange membranes. Its strength—fast response to wind and solar fluctuation—is not yet a must-have for most large projects, which prefer grid-supported alkaline systems.Yet PEM development has not stopped. Domestic firms are pushing for localization of core materials, waiting for cost declines and scenario maturity to unleash its advantages. III. AEM Electrolyzers: Laying Ground for Next-Gen Tech AEM combines the low cost of alkaline and high efficiency of PEM, seen as a promising next-generation route. It is still in pre-industrial phase, with focus on improving membrane durability and membrane electrode manufacturing. Enterprises are making steady breakthroughs in materials and processes for long-term competition. IV. Storage & Transportation: Key Breakthroughs for Scaling Large-scale gaseous hydrogen storage is moving forward: SPIC’s Da’an project plans six 1,850 m³ spherical tanks, greatly improving storage capacity.Liquid hydrogen sees a milestone: China’s first 5-ton/day hydrogen liquefaction plant started operation with 100% domestic equipment and 40% lower energy consumption, cutting costs for long-distance transport.Guofu Hydrogen built a hydrogen-natural gas blending platform supporting 0%–30% blending. SAMR launched safety standards for hydrogen refueling stations, filling gaps in liquid hydrogen refueling rules.Improved storage, transportation and standards expand the economic radius of green hydrogen and lay a foundation for large-scale application. Conclusion The divergence of hydrogen production routes reflects market choice based on technical maturity: alkaline leads for near-term economy, PEM reserves strength for flexible scenarios, and AEM targets next-generation innovation. The three routes are complementary rather than substitutive.Breakthroughs in storage and transportation are game-changers. With falling liquid hydrogen costs, better infrastructure and completed standards, the industry will enter a more diversified and dynamic era.

SMM News, May 21: Metals market: As of the midday close, most base metals on the domestic market rose. SHFE copper gained 1.33%, SHFE aluminum rose 0.33%, SHFE lead climbed 1.55%, SHFE zinc advanced 1.47%, and SHFE tin surged 3.21%. SHFE nickel fell 0.57%. In addition, the most-traded casting aluminum futures rose 0.39%, the most-traded alumina contract gained 0.37%, the most-traded lithium carbonate contract rose 1.18%, the most-traded silicon metal contract climbed 0.35%, and the most-traded polysilicon futures rose 0.37%. Ferrous metals mostly rose. Iron ore fell 0.5%, rebar edged up, hot-rolled coil gained 0.23%, and stainless steel rose 0.41%. Coking coal and coke: the most-traded coking coal contract rose 0.33%, and the most-traded coke contract was flat at 1,774.5 yuan/mt. Overseas base metals: as of 11:32, LME metals generally fell. LME copper dropped 0.15%, LME aluminum was flat at 3,629 yuan/mt, LME lead rose 0.71%, LME zinc fell 0.1%, LME tin declined 0.53%, and LME nickel dropped 0.92%. Precious metals: as of 11:32, COMEX gold rose 0.12% and COMEX silver fell 0.26%. Domestic precious metals: the most-traded SHFE gold contract gained 0.89% and the most-traded SHFE silver contract rose 1.85%. In addition, as of the midday close, the most-traded platinum futures rose 0.74% and the most-traded palladium futures gained 0.47%. As of the midday close, the most-traded Europe containerized freight index contract rose 7.66% to 2,957.5 points. As of 11:32 on May 21, midday futures quotes for selected contracts: Spot cargo and fundamentals Nickel: On May 21, SMM #1 refined nickel prices rose 1,550 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,200 yuan/mt, down 250 yuan/mt from the previous trading day. Domestic mainstream brand electrodeposited nickel premiums ranged from -600 to 500 yuan/mt. Macro front China: [NDRC: To improve policy measures on fair competition, investment and financing, promotion of sci-tech innovation, and business regulation] Li Hui, Director of the Private Economy Development Bureau of the National Development and Reform Commission (NDRC), stated at a press conference held by the State Council Information Office that the NDRC will better leverage its coordination function in promoting private economy development, organize and carry out specific measures outlined in the action plan for safeguarding the private economy through the rule of law, and strengthen the implementation of the Private Economy Promotion Law. The NDRC will improve supporting systems and refine policy measures on fair competition, investment and financing, promotion of sci-tech innovation, and business regulation. It will continue to work with relevant departments to publish typical cases to illustrate the law through cases, conduct assessments of policy implementation effectiveness, promote direct and swift access to enterprise-friendly policies, and guide enterprises in enhancing their governance capabilities. [China's Enterprise Credit Index Reached 162.41 in April This Year, Maintaining a Positive Trend] According to the State Administration for Market Regulation, China's Enterprise Credit Index stood at 162.41 in April this year, up 0.15 points from March, with enterprise credit levels maintaining a positive trend. In April, the top 5 industries by credit index ranking were finance, electricity/heat/gas and water production and supply, education, manufacturing, and water conservancy/environment and public facilities management. Compared with the previous month, the indices for information transmission/software and information technology services, finance, and health and social work showed relatively notable increases, achieving positive growth for three consecutive months, with credit development trends continuing to improve. (CCTV News) [Qiushi Commentary Article: How to Thoroughly Address "Involution-Style" Competition in Manufacturing] The article pointed out that thoroughly addressing "involution-style" competition requires institutional innovation to drive competition toward quality upgrading. Only when government behavior is regulated and market mechanisms are streamlined can enterprises shift from low-price disorderly competition to value-based competition. A unified national market should be built to break down market segmentation, policies hindering fair competition should be resolutely eliminated, outdated capacity should be phased out in an orderly manner in accordance with laws and regulations to prevent "bad money driving out good," and competitive enterprises should be allocated resources commensurate with their competitiveness. Performance assessment reform should be used to correct government behavior, shifting assessment focus toward "quality" indicators such as development quality, technological innovation, and industrial coordination, aligning local government incentives with high-quality development, and curbing the impulse for homogeneous investment attraction at the source. Evaluation mechanism reform should be used to rectify competitive behavior, reversing the "price-only" tendency, establishing comprehensive evaluation mechanisms centered on technology, quality, and service, making premium quality at premium prices a market consensus, and guiding resources toward enterprises with strong innovation capabilities and high product value-added. The PBOC conducted 100 billion yuan of 7-day reverse repo operations in the open market at an interest rate of 1.40%, unchanged from the previous day. Today, 500 million yuan of reverse repos matured. US Dollar: As of 11:32, the US dollar index rose 0.05% to 99.19. The US Fed meeting minutes showed that participants anticipated elevated energy prices would continue to exert upward pressure on headline inflation in the near term. Participants generally expected that the impact of tariffs on core goods inflation would gradually diminish over the course of this year. However, some participants noted that tariff rates could rise further above current levels, resulting in greater upward pressure on inflation. Several participants emphasized that, after inflation had remained above 2% for several consecutive years, elevated inflation could have a greater influence on wage- and price-setting decisions. Almost all participants noted that the conflict in the Middle East could persist for an extended period, or even if the conflict ended, oil and other commodity prices could remain elevated for longer than expectations. In such a scenario, participants anticipated that factors such as supply chain disruptions, elevated energy prices, or the pass-through of higher input costs to other prices would continue to push inflation higher. The vast majority of participants noted that the time required for inflation to return to the Committee's 2% target could be longer than they had previously expected, and that risks had increased. The US Fed meeting minutes showed that regarding the monetary policy outlook, participants generally believed that persistently elevated inflation and uncertainty about the duration and economic impact of the Middle East conflict could necessitate maintaining the current policy stance for longer than expectations. Some participants emphasized that it might be appropriate to lower the target range for the federal funds rate once clear signs emerged that the pullback trend in inflation had steadily resumed, or signs of greater softness in the labour market appeared. However, most participants noted that if inflation remained persistently above 2%, some tightening measures might be necessary. To address this scenario, many participants indicated that they would prefer to remove language from the post-meeting statement that implied the Committee's future rate decisions might lean toward easing. Participants noted that monetary policy was not predetermined and that future policy decisions would be made on a meeting-by-meeting basis. According to the CME "FedWatch" tool: the probability of the US Fed maintaining rates unchanged through June was 97.3%, with a cumulative probability of a 25-basis-point interest rate cut at 2.7%. The probability of the US Fed maintaining rates unchanged through July was 87.2%, with a cumulative probability of a 25-basis-point interest rate cut at 2.4%, and a cumulative probability of a 25-basis-point rate hike at 10.4%. (Jin Shi Data) On the data front: Data to be released today include US initial jobless claims for the week ending May 16, US April annualized housing starts, US April building permits, US May Philadelphia Fed Manufacturing Index, US May S&P Global Manufacturing PMI preliminary reading, US May S&P Global Services PMI preliminary reading, Eurozone May Manufacturing PMI preliminary reading, Eurozone March seasonally adjusted current account, Eurozone May Consumer Confidence Index preliminary reading, France May Manufacturing PMI preliminary reading, Germany May Manufacturing PMI preliminary reading, UK May Manufacturing PMI preliminary reading, UK May Services PMI preliminary reading, UK May CBI Industrial Orders balance, and Australia April seasonally adjusted unemployment rate. In addition, attention should also be paid to the following: Bank of England Governor Bailey delivered a speech, and China's refined oil products were set to enter a new round of price adjustment window. Crude oil: As of 11:32, oil prices in both markets rose, with WTI up 0.94% and Brent up 0.83%. Supply concerns driven by market worries over the uncertain prospects of a US-Iran peace deal continued to support oil prices. In addition, declining US crude oil inventory also lent support to oil prices. EIA report: Commercial crude oil inventory, excluding the Strategic Petroleum Reserve, fell by 7.863 million barrels to 445 million barrels, a decline of 1.74%. The weekly EIA crude oil inventory drawdown for the week ending May 15 was the largest since the week of February 13, 2026. A research report from CITIC Securities noted that global oil inventory was declining sharply, intensifying the risk of energy shortages. The US-Israel-Iran conflict disrupted passage through the Strait of Hormuz, causing global oil inventory to plummet at a record pace and heightening the risk of summer energy shortages. The market temporarily cushioned the pressure by relying on previously surplus inventory, exemptions from Russian oil sanctions, and strategic petroleum reserve releases by multiple countries, while high oil prices also triggered a contraction in global oil demand. International oil prices are currently fluctuating at elevated levels, US refined product prices have hit multi-year highs, oil supplies in multiple energy-importing regions in Asia are on the verge of shortages, dragging down regional economic growth. Oil prices may still have significant upside room, and accelerating the development of renewable energy has become a long-term measure for countries to guard against energy risks. Sultan Al Jaber, CEO of the Abu Dhabi National Oil Company (ADNOC) of the UAE, said on the 20th that the UAE was building an east-west oil pipeline bypassing the Strait of Hormuz. The project was nearly 50% complete and is expected to be completed and operational by 2027. According to the UAE's Gulf News, Al Jaber said at an online event hosted by the US think tank Atlantic Council that a large volume of global energy transportation still relied on a few critical maritime chokepoints, and the UAE hoped to reduce its dependence on the Strait of Hormuz and enhance the security of energy exports through this project. (Xinhua) Goldman Sachs stated that as the Middle East war continued and supply remained constrained, global crude oil and refined product inventory was being depleted at a record pace this month. Goldman Sachs analysts noted in a report dated May 20 that since the beginning of May, visible inventory had been declining at a record rate of 8.7 million barrels per day, nearly double the average pace since the outbreak of the conflict. They stated, "The physical market continues to tighten, and oil exports through the Strait of Hormuz are estimated to remain at only 5% of normal levels." Goldman Sachs analysts noted that two-thirds of the inventory decline in May was driven by a reduction in so-called "oil on water," with exports falling more than imports. The import slump is now "spreading from Asia to Europe," they noted, with European jet fuel imports 60% below the 2025 average. (Jin10 Data) Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ► ►