[SMM Analysis] Indian Steel Prices Continued to Weaken, Southeast Asian Procurement Sentiment Remained Cautious From the price spread model, billet/slab: Chinese resources expanded their advantage in the Indonesian market, with the price spread hitting a new monthly low. The inversion between China HRC (FOB) and core ex-China markets deteriorated across the board this week, with multiple indicators hitting historical or periodic highs mid-week, except for the China-India spread which rebounded. Chinese resources are expected to continue offering low FOB prices to Southeast Asia and the Middle East next week, and the price spread matrix is unlikely to narrow significantly in the short term. Meanwhile, considering the approaching EU new regulations, June will be a window period for intense price collapse between Indian and Chinese resources in non-EU markets (such as the Middle East and ASEAN). By sub-market, Indian HRC export prices continued to weaken last week, with suppliers lowering offers to stimulate demand amid an overall sluggish regional market. Vietnam remained the primary export destination for Indian SAE1006 HRC, with August shipment offers gradually declining from $580/mt CFR to $565–570/mt CFR. The price decline was still driven by persistently weak demand, intensified competition among exporters, and widespread market expectations of further regional price declines. According to market rumors, a 30,000 mt cargo of Indian HRC was transacted at $565–570/mt CFR Vietnam last week, below the latest market offer of $572/mt CFR quoted on Friday. However, overall transaction activity remained limited, with Vietnamese buyers mostly adopting a wait-and-see strategy, focusing on the upcoming new monthly HRC price announcements from Formosa Ha Tinh Steel Corporation and Hoa Phat Group before deciding on new procurement plans. Market participants noted that cautious downstream demand and expectations of continued price declines continued to suppress buyer restocking willingness. Overall, the demand environment facing Indian exporters remained challenging. Southeast Asian market: Affected by weak downstream demand and market expectations of further price declines, overall steel trading sentiment remained cautious, with procurement activity continuing to be suppressed. In Vietnam, domestic HRC prices showed a weakening trend due to sluggish new orders and traders maintaining low inventory management. Downstream buyers also mostly adopted a wait-and-see approach, on one hand waiting for local steel mills to announce new monthly offers, and on the other hand closely monitoring China steel futures price fluctuations. Meanwhile, Indonesian suppliers remained among the most competitive sellers in the region, offering HRC to Vietnam at approximately $585/mt CFR, continuing to exert pressure on regional prices. On June 1, Hoa Phat announced its latest price adjustment, lowering HRC offers by $13/mt. Following this announcement, local market transaction prices are expected to continue declining. Overall, seasonal demand weakness, ample market supply, and cautious procurement behavior will collectively keep trading activity in the Southeast Asian market subdued. Turkish market: Affected by the Eid al-Adha holiday, sheets & plates trading in the Middle East and Turkey largely stalled this week, with long and flat product prices remaining stable. By product, as July shipping quota is about to be readjusted, EU buyers' purchasing remained weak, and Turkey's HRC exports to the EU had been quiet since before the holiday. However, as current orders were relatively sufficient, Turkish steel mills were not in a hurry to lower prices to close deals before the quota announcement, but instead focused more on domestic sales. In the long product market, due to regional conflicts and geopolitical tensions in the Middle East causing continued logistics disruptions, China's rebar exports to the Middle East declined. Turkish suppliers successfully captured this market gap, with rebar exports rebounding significantly in April, and exports to Yemen, Africa, and parts of Europe also achieved notable growth. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. The copyright, trademark rights, domain name rights, commercial data information property rights, and other related intellectual property rights of all content contained in this report (including but not limited to information, articles, data, charts, pictures, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, etc.) are owned or held by SMM or its related right holders. The above rights are strictly protected by relevant laws and regulations of the People's Republic of China, such as the Copyright Law of the People's Republic of China, the Trademark Law of the People's Republic of China, and the Anti-Unfair Competition Law of the People's Republic of China, as well as applicable international treaties. Without prior written authorization from SMM, no institution or individual may: 1. Use all or part of this report in any form (including but not limited to reprinting, modifying, selling, transferring, displaying, translating, compiling, disseminating); 2. Disclose the content of this report to any third party; 3. License or authorize any third party to use the content of this report; 4. For any unauthorized use, SMM will legally pursue the legal responsibilities of the infringer, demanding that they bear legal responsibilities including but not limited to contractual breach liability, returning unjust enrichment, and compensating for direct and indirect economic losses. Data Source Statement: (Except for publicly available information, other data in this report are derived from publicly available information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, data from the National Bureau of Statistics, customs import and export data, various data published by major associations and institutions, etc.), market exchanges, and comprehensive analysis and reasonable inferences made by the research team based on SMM's internal database models. This information is for reference only and does not constitute decision-making advice. SMM reserves the final interpretation right of the terms in this statement and the right to adjust and modify the content of the statement according to actual circumstances.

On June 1, the SMM battery-grade nickel sulphate average price rose.

Data from the National Bureau of Statistics (NBS) showed that in May, the manufacturing PMI stood at 50.0%, down 0.3 percentage points MoM. The composite PMI output index was 50.5%, up 0.4 percentage points MoM, indicating that overall business production and operations in China remained in expansion. The non-manufacturing business activity index was 50.1%, up 0.7 percentage points MoM, with the non-manufacturing prosperity level rebounding. China's PMI Performance in May 2026 I. China's Manufacturing PMI Performance In May, the manufacturing PMI stood at 50.0%, down 0.3 percentage points MoM, sitting at the threshold level. By enterprise size, the PMI for large enterprises was 51.1%, up 0.9 percentage points MoM, above the threshold; the PMIs for medium and small enterprises were 48.6% and 48.5% respectively, down 1.9 and 1.6 percentage points MoM, both below the threshold. By sub-indices, among the five sub-indices constituting the manufacturing PMI, the production index was above the threshold, while the new orders index, raw material inventory index, employment index, and supplier delivery time index were all below the threshold. The production index was 51.2%, down 0.3 percentage points MoM, but still above the threshold, indicating that manufacturing production activity remained in expansion. The new orders index was 49.9%, down 0.7 percentage points MoM, indicating that the prosperity level of manufacturing market demand pulled back somewhat. The raw material inventory index was 48.6%, down 0.7 percentage points MoM, indicating a decline in the inventory of major raw materials in manufacturing. The employment index was 48.6%, down 0.2 percentage points MoM, indicating that the prosperity level of manufacturing employment pulled back somewhat. The supplier delivery time index was 49.2%, down 0.3 percentage points MoM, indicating that the delivery time of manufacturing raw material suppliers continued to lengthen MoM. II. China's Non-manufacturing PMI Performance In May, the non-manufacturing business activity index was 50.1%, up 0.7 percentage points MoM, with the non-manufacturing prosperity level rebounding. By sector, the construction business activity index was 48.8%, up 0.8 percentage points MoM; the services business activity index was 50.3%, up 0.7 percentage points MoM. Within the services sector, industries such as railway transportation, telecommunications, broadcasting, television and satellite transmission services, and insurance all had business activity indices in the relatively high prosperity range of above 55.0%; industries such as air transportation and real estate had business activity indices below the threshold. The new orders index was 45.0%, up 0.7 percentage points from the previous month, indicating that the non-manufacturing market demand improved. By sector, the construction new orders index was 43.5%, up 1.9 percentage points from the previous month; the services new orders index was 45.3%, up 0.5 percentage points from the previous month. The input price index was 52.2%, up 0.5 percentage points from the previous month, indicating that the overall input prices for non-manufacturing business operations continued to rise. By sector, the construction input price index was 53.7%, down 1.2 percentage points from the previous month; the services input price index was 52.0%, up 0.8 percentage points from the previous month. The selling price index was 48.8%, up 0.7 percentage points from the previous month, indicating that the decline in overall selling prices of non-manufacturing enterprises narrowed. By sector, the construction selling price index was 48.6%, down 0.4 percentage points from the previous month; the services selling price index was 48.9%, up 1 percentage point from the previous month. The employment index was 45.6%, up 0.1 percentage points from the previous month, indicating that employment conditions in non-manufacturing enterprises improved slightly. By sector, the construction employment index was 41.4%, up 1.8 percentage points from the previous month; the services employment index was 46.4%, down 0.1 percentage points from the previous month. The business activity expectations index was 54.8%, up 0.1 percentage points from the previous month, indicating that non-manufacturing enterprises' confidence in market development strengthened. By sector, the construction business activity expectations index was 51.5%, up 1 percentage point from the previous month; the services business activity expectations index was 55.4%, unchanged from the previous month. III. China Composite PMI Output Index In May, the composite PMI output index was 50.5%, up 0.4 percentage points from the previous month, indicating that China's overall enterprise production and business activities remained in expansion. Composite PMI Output Index Remained in Expansion in May — Interpretation of China's PMI for May 2026 by Huo Lihui, Chief Statistician of the Service Industry Survey Center, National Bureau of Statistics (NBS) On May 31, 2026, the Service Industry Survey Center of the NBS and the China Federation of Logistics and Purchasing released China's PMI. Huo Lihui, Chief Statistician of the Service Industry Survey Center of the NBS, provided an interpretation of the data. In May, the manufacturing PMI was 50.0%, down 0.3 percentage points from the previous month; the non-manufacturing business activity index and the composite PMI output index were 50.1% and 50.5% respectively, up 0.7 and 0.4 percentage points from the previous month. China's overall economic output remained in expansion. I. Manufacturing PMI at the Threshold In May, the manufacturing PMI stood at 50.0%, indicating that overall business production and operations remained stable. (i) Enterprise production maintained expansion. The production index was 51.2%, above the threshold, as manufacturing production activities continued to expand; the new orders index was 49.9%, suggesting that market demand somewhat slowed down. By sector, the production and new orders indices for industries such as pharmaceuticals, railway, shipbuilding, aerospace equipment, and computer, communications, and electronic equipment were all above 53.0%, with both production and demand sides of these industries remaining relatively active; the two indices for industries such as petroleum, coal, and other fuel processing, chemical fibers, rubber and plastic products, and non-metallic mineral products remained below the threshold, with both supply and demand sides still showing insufficiency. (ii) New momentum continued to develop favorably. The PMIs for high-tech manufacturing and equipment manufacturing were 52.9% and 52.1%, respectively, up 0.7 and 0.3 percentage points from the previous month, both remaining consistently above the threshold. In particular, the PMI for high-tech manufacturing had stayed in expansion territory for 16 consecutive months, with related industries maintaining strong growth and the leading role of new momentum continuing to emerge; the PMIs for consumer goods industries and high energy-consuming industries were 49.7% and 47.1%, respectively, down 1 and 0.8 percentage points from the previous month, with market activity somewhat weakening. (iii) Large enterprise PMI remained consistently above the threshold. The PMI for large enterprises was 51.1%, up 0.9 percentage points from the previous month, staying in expansion territory throughout the year, as large enterprises sustained a favorable production and operation trend; the PMIs for medium and small enterprises were 48.6% and 48.5%, respectively, with business conditions pulling back. (iv) Price indices fluctuated at high levels. The raw material purchase price index and the ex-factory price index were 60.5% and 51.9%, respectively, both pulling back 3.2 percentage points from the previous month but remaining at relatively high levels in recent periods. Both indices stayed in expansion territory for five consecutive months, as overall market price levels in manufacturing continued to rise. By sector, the two price indices for industries such as textiles, chemical fibers, rubber and plastic products, and ferrous metals smelting and rolling processing remained above 55.0% for three consecutive months, with overall purchase and sales price levels in related industries continuing to rise. II. Non-manufacturing Business Activity Index Rose above the Threshold In May, the non-manufacturing business activity index was 50.1%, up 0.7 percentage points from the previous month, as the non-manufacturing business conditions rebounded. (i) The services business activity index rose into expansion territory. The services business activity index was 50.3%, up 0.7 percentage points from the previous month, with market activity in the services sector somewhat improving. By industry, the business activity indices for industries such as railway transportation, telecommunications, radio, television and satellite transmission services, and insurance were all above the relatively high prosperity range of 55.0%, with rapid growth in total business volume; the business activity indices for industries such as air transportation and real estate were below the critical point, indicating relatively low prosperity levels in these industries. In terms of market expectations, the service sector business activity expectations index was 55.4%, remaining in the relatively high prosperity range, indicating that most service sector enterprises held generally optimistic expectations for near-term market development. (2) The construction sector business activity index rebounded. The construction sector business activity index was 48.8%, up 0.8 percentage points from the previous month, with improved prosperity levels. In terms of market expectations, the construction sector business activity expectations index was 51.5%, up 1 percentage point from the previous month, indicating that construction enterprises' confidence in future industry development recovered somewhat. 3. Composite PMI Output Index Continued to Expand In May, the composite PMI output index was 50.5%, up 0.4 percentage points from the previous month, indicating that China's enterprise production and business activities generally maintained expansion. The manufacturing production index and non-manufacturing business activity index, which constitute the composite PMI output index, were 51.2% and 50.1%, respectively.

Recently, the Zhengzhou Municipal Bureau of Industry and Information Technology, in conjunction with the Zhengzhou Municipal Bureau of Finance, officially issued a special notice to fully launch the application for demonstration and application reward funds for fuel cell vehicles in 2025. The implementation of this subsidy application aims to fully leverage the guiding and leveraging role of fiscal funds, continuously promote the implementation of regional fuel cell vehicle demonstration scenarios, and accelerate the standardized and high-quality development of Zhengzhou's hydrogen energy industry. It is understood that this fund application was advanced in strict alignment with the national, provincial, and municipal multi-level policy systems, primarily based on the relevant documents on fuel cell vehicle demonstration and application issued by five national ministries, the hydrogen energy demonstration reward implementation plan for the Zhengzhou city cluster, and municipal-level hydrogen energy industry support policies. Through special fiscal rewards, the initiative aims to continuously improve the fuel cell automotive industry ecosystem, expand the scale of demonstration and application, and consolidate the foundation for the construction of the Zhengzhou hydrogen energy demonstration city cluster. This application established clear access criteria, standardizing application requirements from two major dimensions: product qualification and platform registration. Specifically, the promoted car models of vehicle manufacturers and vehicle modification enterprises must obtain the official automotive product announcement from MIIT and possess compliant market-entry qualifications. All fuel cell vehicles and supporting hydrogen refueling station facilities participating in the application must complete registration with the National Hydrogen Energy and Fuel Cell Vehicle Demonstration Evaluation Platform, be incorporated into the unified regulatory evaluation system, and ensure project compliance and traceability. In terms of funding support directions, this round of reward funds focused on two core areas, precisely empowering the development of the upstream and downstream segments of the industry. On one hand, it supports the demonstration and application of fuel cell vehicle whole vehicles and the construction of supporting systems, encouraging the large-scale promotion and deployment of hydrogen energy vehicles. On the other hand, it provides subsidies for the promotion and application of vehicular hydrogen and related supporting segments, reducing end-user hydrogen costs, addressing pain points in hydrogen energy application deployment, and comprehensively facilitating the commercial popularization of hydrogen energy transportation. The application process has now officially commenced. All relevant enterprises across the city must strictly prepare application materials in accordance with official guidelines and submit three copies of paper materials along with corresponding electronic documents to the Zhengzhou Municipal Bureau of Industry and Information Technology and the Bureau of Finance before the deadline of May 22, 2026 . Late submissions will not be accepted. Project reviews will adhere to the principles of openness, fairness, and impartiality, adopting a dual verification model of expert review plus third-party special audit. Projects that pass the review will be publicly announced, after which MIIT will coordinate and formulate the fund allocation plan, and the Municipal Bureau of Finance will complete fund disbursement in accordance with procedures, ensuring the entire process is standardized, transparent, and well-documented. The authorities also specified strict application disciplines and regulatory requirements. Enterprises participating in the application must submit materials truthfully and apply in compliance with regulations. Enterprises found to have committed fraud or illegally obtained fiscal subsidy funds will have all subsidy funds recovered in accordance with regulations, and relevant parties will be held legally accountable, effectively safeguarding the standardized and efficient use of fiscal funds. Subsequent matters not covered herein shall be subject to the latest official notices and project review interpretations. The implementation of this special reward fund application is an important measure for Zhengzhou to continuously strengthen hydrogen energy industry support and improve demonstration and application supporting policies. Through fiscal incentive measures, it will continuously stimulate the vitality of market entities, expand fuel cell vehicle application scenarios, optimize the vehicular hydrogen energy supporting system, continuously consolidate Zhengzhou's core position in hydrogen energy demonstration and application at the provincial and national levels, and facilitate the large-scale, commercialized, and high-quality development of the regional hydrogen energy industry. Consultation channels: Automotive Industry Division, Zhengzhou Municipal Bureau of Industry and Information Technology, 0371-67186253; Enterprise Division, Zhengzhou Municipal Bureau of Finance, 0371-67175635 Detail file URL:

2025-05-25 To comprehensively promote the large-scale and high-quality development of the hydrogen energy industry and improve the local hydrogen energy industry supporting system and application ecosystem, the Ziyang Municipal Bureau of Economy and Information Technology publicly released a policy announcement, soliciting public opinions on the revision of the "Several Policy Measures of the Ziyang Municipal People's Government on Supporting the High-Quality Development of the Hydrogen Energy Industry (Draft for Comments)," and simultaneously released an official policy interpretation, safeguarding hydrogen energy industry development with dedicated support policies. The new policy under public consultation introduces multiple favorable measures around hydrogen refueling station construction and operation, continuously addressing shortcomings in hydrogen energy infrastructure. Ziyang will establish a dedicated fast-track approval channel for hydrogen refueling station projects, significantly shortening project approval timelines and improving implementation efficiency. For integrated hydrogen production and refueling stations located outside chemical industrial parks, the local government will provide a one-time construction reward of up to 2 million yuan. Meanwhile, restrictions on station construction scenarios will be relaxed, allowing the construction of enterprise self-use hydrogen refueling facilities in compliant areas such as industrial parks, logistics parks, open-air parking lots, and bus depots. For scenarios involving station construction through renovation of existing industrial land, the policy explicitly sets a 2-year exclusive transition period, during which enterprises may use existing industrial land to build integrated hydrogen production and refueling stations and conduct compliant hydrogen refueling services. After the transition period, the relevant construction land may complete the "industrial-to-commercial" land use adjustment in accordance with regulations. Regarding operational subsidies, Ziyang has set clear support standards: for compliant hydrogen refueling stations with hydrogen pricing no higher than 25 yuan/kg and daily average refueling capacity of 500 kg or above, operational subsidies will be granted at a maximum standard of 20 yuan per kilogram, with an annual subsidy cap of 5 million yuan per station, effectively reducing station operational pressure. To improve the entire industry chain layout of hydrogen energy and achieve industry chain strengthening and gap-filling, Ziyang has introduced dual reward policies for industrial investment and technological transformation. The city focuses on encouraging the implementation of projects across the entire hydrogen energy chain covering production, storage, transportation, refueling, and utilization, encompassing key upstream and downstream fields such as core equipment, key parts, and specialty materials. For key hydrogen energy industry projects that are successfully completed and put into production, a one-time investment reward of up to 10 million yuan may be granted. Meanwhile, the policy supports local traditional enterprises in transformation and upgrading, guiding enterprises to conduct hydrogen energy-oriented technological transformation benchmarked against industry-leading standards. Projects that complete technological transformation and are officially put into use may enjoy a one-time technological transformation subsidy of up to 1 million yuan per project, facilitating the transformation of traditional industries toward the hydrogen energy track. In the hydrogen energy scenario innovation application field, Ziyang continues to broaden promotion boundaries and enrich diversified implementation scenarios. The new policy focuses on supporting hydrogen fuel cell commercial vehicle demonstration projects, providing local funding support at 50% of the national prevailing demonstration application credit subsidy standard for market entities participating in demonstration operations. In addition, local enterprises operating hydrogen-powered rail locomotives, mining trucks, forklifts, two-wheeled hydrogen vehicles, hydrogen-powered aircraft, as well as those developing new-type application scenarios such as backup power supply, combined heat and power, and hydrogen energy storage power generation based on hydrogen energy, may all enjoy local supporting subsidies at 50% of the equivalent national subsidy standard, comprehensively activating the vitality of the hydrogen energy end-use applications market. Furthermore, the new policy focuses on large-scale hydrogen consumption and industry cost reduction and efficiency improvement, introducing targeted incentive policies. For fossil energy-to-hydrogen substitution technological transformation projects of high energy-consuming and high carbon-emitting industrial enterprises, a one-time reward of up to 1 million yuan may be claimed after meeting standards and being put into use. Meanwhile, a regular hydrogen use subsidy is established, providing subsidies at a standard of 2 yuan/kg based on the enterprise's actual annual hydrogen consumption, with a maximum annual subsidy of 1 million yuan per enterprise. To explore new models of hydrogen energy utilization, Ziyang will also support natural gas pipeline hydrogen blending demonstration projects, with a one-time construction subsidy of up to 1 million yuan for each compliant demonstration project, promoting large-scale, low-cost popularize application of hydrogen energy through multiple measures.

On May 25, the SMM battery-grade nickel sulphate average price remained stable.

[SMM Analysis] Weak Downstream Consumption Increases Pressure on Ex-China Steel Trading Price spread model, the price inversion of Chinese steel relative to overseas markets (India, Japan, Turkey, Black Sea) deepened further in late May. In particular, Chinese resources were cheaper compared to Indonesia, and the price spread was "narrowing at an accelerating pace." For pure ex-China inter-regional price spreads, India's decline was more pronounced compared to other regions, as weak domestic demand drove aggressive low-price bidding. Segment-wise, steel procurement sentiment in Southeast Asia became more cautious last week, with coil prices weakening. In Vietnam, coated steel and steel pipe prices began to slow down after a prolonged rally, and buyers became increasingly cautious about restocking ahead of the rainy season. Meanwhile, due to weak demand and growing pressure from low-priced imports, Formosa Ha Tinh Steel, a subsidiary of Taiwan's China Steel Corporation, also cut its HRC quotations by $5-10/mt to $598-603/mt CIF Vietnam. Although some Vietnamese downstream steel mills continued to raise or maintain prices due to earlier increases in raw material costs and tight spot supply, some producers had begun to limit orders or delay quotations while waiting for a clearer market direction. Notably, Indonesian HRC quotations remained competitive with relatively active exports, with FOB prices at around $565/mt. According to SMM survey, recent transaction prices to Vietnam were around $585/mt CFR. Turkey market: As the Middle East was set to enter a long holiday mid-week, most market participants had already exited early. According to SMM survey, no clear large-volume transactions were seen in the Turkish steel scrap market last week. Meanwhile, as domestic rebar demand remained sluggish, steel mills pushed their target purchase prices for European HMS 1&2 (80:20) scrap below $400/mt CFR to pass on the pressure. The recent euro depreciation and slight correction in ocean freight rates opened up some discount room for European sellers to a certain extent, but judging from actual market transactions, sellers still found it difficult to accept such low prices. At the same time, US exporters continued to hold prices firm at $420/mt CFR. In addition, mainstream quotations for Turkish domestic HRC remained at $660-675/mt EXW. Due to exchange rate fluctuations and high production costs, steel mills were striving to hold prices firm, but downstream buyers remained cautious in purchasing, with expected psychological prices 15-20 $/mt lower. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. The copyright, trademark rights, domain name rights, commercial data information property rights, and other related intellectual property rights of all content contained in this report (including but not limited to information, articles, data, charts, pictures, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, etc.) are owned or held by SMM or its related right holders. The above rights are strictly protected by relevant laws and regulations of the People's Republic of China, such as the Copyright Law of the People's Republic of China, the Trademark Law of the People's Republic of China, and the Anti-Unfair Competition Law of the People's Republic of China, as well as applicable international treaties. Without prior written authorization from SMM, no institution or individual may: 1. Use all or part of this report in any form (including but not limited to reprinting, modifying, selling, transferring, displaying, translating, compiling, disseminating); 2. Disclose the content of this report to any third party; 3. License or authorize any third party to use the content of this report; 4. For any unauthorized use, SMM will legally pursue the legal responsibilities of the infringer, demanding that they bear legal responsibilities including but not limited to contractual breach liability, returning unjust enrichment, and compensating for direct and indirect economic losses. Data Source Statement: (Except for publicly available information, other data in this report are derived from publicly available information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, data from the National Bureau of Statistics, customs import and export data, various data published by major associations and institutions, etc.), market exchanges, and comprehensive analysis and reasonable inferences made by the research team based on SMM's internal database models. This information is for reference only and does not constitute decision-making advice. SMM reserves the final interpretation right of the terms in this statement and the right to adjust and modify the content of the statement according to actual circumstances.

The EU General Court ruled in March 2025 that the Commission had incorrectly classified the processing of Indonesian stainless steel slabs into hot-rolled sheets and coils in Turkey as an “assembly operation,” which is a key condition in anti-circumvention findings. With the case now before the EU’s top court, the legal interpretation of “assembly operation” under EU anti-circumvention rules could be clarified further.

On May 25, the SMM battery-grade nickel sulphate average price remained stable.

This week, ferrous metals continued to pull back, with coking coal and coke seeing the most notable correction. In the first half of the week, the Ministry of Industry and Information Technology issued a notice on the implementation measures for capacity replacement in the steel industry, proposing that the capacity replacement ratio for ironmaking and steelmaking should be no less than 1.5:1. The further tightening of capacity replacement requirements had a longer-term impact. Meanwhile, macro markets outside China experienced significant fluctuations, and market expectations for ex-China "interest rate hikes" strengthened. In the second half of the week, data on the five major steel products were released, showing production increased somewhat while inventory continued to decline. Spot market side, traders began to show some flexibility on prices, the spot-futures price spread for hot-rolled coil continued to narrow, some spot-futures arbitrage traders mainly cut losses with shipments, and end-users continued to restock on an as-needed basis...