Irish developer Echelon has started building the DUB20 data center campus in Arklow, Co Wicklow, marking Ireland's first Green Energy Park ('GEP'). This aligns with the government's Large Energy Users Action Plan ('LEAP'), designed to co-locate energy-intensive industries with renewable generation. Slated for completion by 2028, DUB20 will feature solar 'PV' systems capable of generating over 6,000 MWh annually, co-located battery storage, and a joint 220 kV substation to integrate up to 800 MW of offshore wind. It will also include an onsite energy center capable of exporting power to the national grid. While hailed by the government as a sustainable model, some climate advocacy groups remain critical, urging a moratorium on new data center connections.

The US Department of Justice has withdrawn its defense of the executive order that paused tariffs on solar imports from Southeast Asia (Cambodia, Malaysia, Thailand, and Vietnam), leaving the solar industry exposed to an estimated $50 billion to $70 billion in retroactive duties. If the industry fails to overturn the lower court's ruling, which declared the administration lacked the authority to waive these penalties, developers could face crippling tariffs of up to 200% on the 88 GW of capacity imported during the moratorium, marking a decisive policy pivot toward protecting domestic manufacturing.

The Madagascan government recently announced the lifting of a 16-year moratorium on the issuance of new mining permits that has been in place since 2010. The ban was originally imposed to allow a review of the country’s mining governance and legal framework. Mining is a key pillar of Madagascar’s economy, with major export products including nickel, cobalt, graphite, and ilmenite. As of 2023, around 1,650 applications were still awaiting approval. However, due to major discrepancies between officially reported gold production figures and the scale of artisanal gold mining nationwide, as well as insufficient regulatory and monitoring capacity, the government has decided to maintain the moratorium on gold mining.

According to data from the National Bureau of Statistics (NBS), the Producer Price Index (PPI) for industrial producers fell by 0.4% MoM in May, the same rate of decline as the previous month. On a YoY basis, it decreased by 3.3%, with the rate of decline expanding by 0.6 percentage points compared to the previous month. The main reasons for the MoM decline in PPI this month are as follows: Firstly, international imported factors influenced the price decline in related domestic industries. The downturn in international crude oil prices affected the price decline in domestic petroleum-related industries, with prices in the oil and natural gas extraction industry falling by 5.6%, prices in refined petroleum product manufacturing falling by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry falling by 1.2%. Collectively, these three industries contributed to approximately 0.23 percentage points of the MoM decline in PPI, accounting for over half of the total decline. Secondly, there was a phased downturn in the prices of certain domestic energy and raw materials. Coal demand was in the off-season, with sufficient coal reserves at power plants and ports. Additionally, the low cost and strong substitution effect of new energy power generation led to a 3.0% decline in prices in the coal mining and washing industry and a 1.1% decline in coal processing prices. Increased high-temperature and rainy weather in south China affected the construction of some real estate and infrastructure projects. Coupled with the adequate supply of building materials such as steel and cement, prices in the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry both fell by 1.0%. Collectively, these four industries contributed to approximately 0.18 percentage points of the MoM decline in PPI. In May 2025, the Producer Price Index for industrial producers fell by 3.3% YoY. In May 2025, the Producer Price Index for industrial producers nationwide fell by 3.3% YoY and 0.4% MoM, while the purchasing price index for industrial producers fell by 3.6% YoY and 0.6% MoM. On average from January to May, both the ex-factory prices and purchasing prices for industrial producers fell by 2.6% compared to the same period last year. I. Year-on-Year Changes in Producer Prices for Industrial Products In May, among the ex-factory prices for industrial producers, the price of means of production fell by 4.0%, contributing to a decline of approximately 2.98 percentage points in the overall level of ex-factory prices for industrial producers. Specifically, prices in the mining industry fell by 11.9%, prices in the raw material industry fell by 5.4%, and prices in the processing industry fell by 2.8%. The price of means of subsistence fell by 1.4%, contributing to a decline of approximately 0.36 percentage points in the overall level of ex-factory prices for industrial producers. Specifically, food prices fell by 1.4%, clothing prices remained flat, general daily necessities prices rose by 0.6%, and durable consumer goods prices fell by 3.3%. Among the purchasing prices for industrial producers, prices in the fuel and power category fell by 9.8%, prices in the ferrous metal materials category fell by 7.3%, prices in the chemical raw materials category fell by 5.4%, prices in the agricultural and sideline products category fell by 2.6%, prices in the textile raw materials category fell by 2.5%, and prices in the building materials and non-metals category fell by 1.1%. Prices in the non-ferrous metal materials and wire category rose by 4.6%. II. Month-on-Month Changes in Industrial Producer Prices In May, among the ex-factory prices of industrial producers, the prices of means of production decreased by 0.6%, contributing to a decline of approximately 0.44 percentage points in the overall ex-factory price level of industrial producers. Specifically, prices in the mining industry decreased by 2.5%, prices in the raw material industry decreased by 0.9%, and prices in the processing industry decreased by 0.3%. Prices of consumer goods remained flat. Among them, food prices decreased by 0.1%, clothing prices increased by 0.2%, and prices of general daily necessities and durable consumer goods both increased by 0.1%. Among the purchase prices of industrial producers, prices of fuels and power decreased by 2.1%, prices of chemical raw materials decreased by 1.2%, prices of ferrous metal materials decreased by 0.6%, prices of textile raw materials decreased by 0.4%, prices of building materials and non-metals decreased by 0.2%, and prices of non-ferrous metal materials and wires decreased by 0.1%; prices of agricultural and sideline products remained flat. CPI Slightly Declined in May 2025, While Core CPI Increased on a YoY Basis —Interpretation of CPI and PPI Data for May 2025 by Dong Lijuan, Chief Statistician of the Urban Department, National Bureau of Statistics (NBS) In May, the Consumer Price Index (CPI) decreased by 0.2% MoM and 0.1% YoY. Excluding food and energy prices, core CPI increased by 0.6% YoY, with the growth rate expanding by 0.1 percentage points from the previous month. The Producer Price Index (PPI) for industrial producers decreased by 0.4% MoM, with the decline remaining the same as the previous month, and decreased by 3.3% YoY, with the decline expanding by 0.6 percentage points from the previous month. China is boosting consumption with greater intensity and more precise measures, fostering the growth of new quality productive forces, improving the supply-demand relationship in some areas, and prices are showing positive changes. I. CPI Slightly Declined, While Core CPI Increased on a YoY Basis The shift from an increase to a decrease in CPI on a MoM basis was mainly influenced by the decline in energy prices. Energy prices decreased by 1.7% MoM, contributing to a decline of approximately 0.13 percentage points in CPI on a MoM basis, accounting for nearly 70% of the total decline in CPI. Among them, gasoline prices decreased by 3.8%, with the decline expanding by 1.8 percentage points from the previous month. Food prices decreased by 0.2%, with the decline being 1.1 percentage points less than the seasonal level, contributing to a decline of approximately 0.04 percentage points in CPI on a MoM basis. Among them, the market supply of seasonal vegetables increased, and fresh vegetable prices decreased by 5.9%; prices of eggs, pork, and poultry meat slightly decreased, with declines ranging from 0.3% to 1.0%; affected by factors such as heavy rainfall in some areas and the summer fishing moratorium, the supply of fresh fruits, freshwater fish, and marine fish decreased, and prices increased by 3.3%, 3.1%, and 1.5%, respectively. Consumer demand continued to recover, coupled with the impact of holidays and cultural, sports, and entertainment activities held across the country. As a result, hotel accommodation and tourism prices rose by 4.6% and 0.8%, respectively, both exceeding seasonal levels. The increase in hotel accommodation prices reached a new high for the same period in the past decade. With the arrival of the summer season and the launch of new summer clothing collections, clothing prices rose by 0.6%. The CPI declined slightly YoY, with the decline remaining the same as the previous month. Among them, energy prices fell by 6.1% YoY, with the decline widening by 1.3 percentage points from the previous month, contributing to a decrease of approximately 0.47 percentage points in the CPI YoY, which was the main factor behind the CPI's YoY decline. Policies aimed at boosting consumption continued to show positive effects, with prices in some areas showing positive changes. Core CPI rose by 0.6% YoY, with the increase widening by 0.1 percentage point from the previous month. Among them, industrial consumer goods prices excluding energy rose by 0.6%, with the increase widening by 0.2 percentage point from the previous month. Prices of gold jewelry, home textiles, and cultural and recreational durable consumer goods rose by 40.1%, 1.9%, and 1.8%, respectively, with all increases widening. Prices of gasoline-powered passenger cars and new energy passenger cars fell by 4.2% and 2.8%, respectively, with the declines narrowing. Service prices rose by 0.5%, with the increase widening by 0.2 percentage point from the previous month. Among services, rental fees for transportation vehicles, airfares, and tourism prices all turned from decline to increase, rising by 3.6%, 1.2%, and 0.9%, respectively. II. PPI Remained Low, with Prices in Some Sectors Showing Marginal Improvement The main reasons for the MoM decline in PPI this month are as follows: First, international imported factors influenced the decline in domestic prices of related industries. The decline in international crude oil prices affected the decline in domestic prices of petroleum-related industries, with prices in the oil and natural gas extraction industry falling by 5.6%, prices in the refined petroleum product manufacturing industry falling by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry falling by 1.2%. These three industries collectively contributed to a decrease of approximately 0.23 percentage points in PPI MoM, accounting for more than half of the total decline. Second, domestic prices of some energy and raw materials declined on a temporary basis. Coal demand was in the off-season, with sufficient coal reserves at power plants and ports. Additionally, the low cost and strong substitution effect of new energy power generation led to a 3.0% decline in prices in the coal mining and washing industry and a 1.1% decline in coal processing prices. Increased high-temperature and rainy weather in south China affected the construction of some real estate and infrastructure projects. Coupled with sufficient supply in the production of building materials such as steel and cement, prices in the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry both fell by 1.0%. These four industries collectively contributed to a decrease of approximately 0.18 percentage points in PPI MoM. Coupled with factors such as a higher comparison base in the same period last year, the YoY decline in PPI widened by 0.6 percentage points from the previous month. However, from the perspective of marginal changes, China has intensified the implementation of macro policies, leading to improvements in the supply-demand relationship in some industries and a positive trend in prices in certain sectors. First, the continuous growth of new consumption momentum has driven a YoY rebound in prices of consumer goods. The continuous effectiveness of policies aimed at boosting consumption has led to the release of demand for some consumer goods, driving a rebound in prices in related industries. The MoM decline in consumer goods prices turned to flatness from a 0.2% decrease in the previous month. Among them, prices for clothing, general daily necessities, and durable consumer goods rose by 0.2%, 0.1%, and 0.1%, respectively, driving the YoY decline in consumer goods prices to narrow by 0.2 percentage points compared to the previous month. From an industry perspective, prices for arts and crafts and ceremonial goods manufacturing rose by 12.8% YoY, footwear manufacturing prices increased by 0.8%, and computer whole machine manufacturing prices rose by 0.2%. The YoY declines in prices for household washing machines, television manufacturing, and automobile whole vehicle manufacturing narrowed by 1.6, 1.4, and 0.6 percentage points, respectively, compared to the previous month. Second, the development of industries such as high-end equipment manufacturing has driven a YoY increase in prices in related sectors. The steady progress in the high-end, intelligent, and green transformation of industrial development, along with the expansion of demand for high-tech products, has led to a YoY increase in prices in related industries. Prices for integrated circuit packaging and testing series, as well as aircraft manufacturing, both rose by 3.6%. Prices for wearable smart device manufacturing increased by 3.0%, microwave communication equipment prices rose by 2.1%, server prices increased by 0.8%, and prices for semiconductor device manufacturing equipment rose by 0.7%. In addition, the supply-demand relationship in new energy industries such as PV and lithium batteries has improved, with narrower YoY declines in prices. Prices for PV equipment and components manufacturing, as well as lithium-ion battery manufacturing, fell by 12.1% and 5.0%, respectively, with declines narrowing by 0.4 and 0.3 percentage points, respectively, compared to the previous month. Recommended Reading: 》National Bureau of Statistics (NBS): CPI Down 0.1% YoY and 0.2% MoM in May

According to data from the National Bureau of Statistics (NBS), in May, the national consumer price index (CPI) decreased by 0.1% YoY. Specifically, prices in urban areas remained flat, while those in rural areas decreased by 0.4%. Food prices decreased by 0.4%, while non-food prices remained flat. Prices of consumer goods decreased by 0.5%, while service prices increased by 0.5%. On average from January to May, the national CPI decreased by 0.1% compared to the same period last year. In May, the national CPI decreased by 0.2% MoM. In May 2025, the national CPI decreased by 0.1% YoY. The NBS announced that in May, the national CPI decreased by 0.1% YoY. Specifically, prices in urban areas remained flat, while those in rural areas decreased by 0.4%. Food prices decreased by 0.4%, while non-food prices remained flat. Prices of consumer goods decreased by 0.5%, while service prices increased by 0.5%. On average from January to May, the national CPI decreased by 0.1% compared to the same period last year. In May, the national CPI decreased by 0.2% MoM. In May, the Producer Price Index (PPI) for industrial producers decreased by 0.4% MoM, the same rate of decrease as the previous month, and decreased by 3.3% YoY, with the rate of decrease expanding by 0.6 percentage points compared to the previous month. In May 2025, the national CPI decreased by 0.1% YoY. Specifically, prices in urban areas remained flat, while those in rural areas decreased by 0.4%. Food prices decreased by 0.4%, while non-food prices remained flat. Prices of consumer goods decreased by 0.5%, while service prices increased by 0.5%. On average from January to May, the national CPI decreased by 0.1% compared to the same period last year. In May, the national CPI decreased by 0.2% MoM. Specifically, prices in urban areas decreased by 0.2%, while those in rural areas also decreased by 0.2%. Food prices decreased by 0.2%, while non-food prices also decreased by 0.2%. Prices of consumer goods decreased by 0.3%, while service prices remained flat. I. Year-on-Year Changes in Prices of Various Goods and Services In May, prices of food, tobacco, and alcohol increased by 0.1% YoY, contributing to an increase of approximately 0.02 percentage points in the CPI. Among food items, prices of fresh fruits increased by 5.5%, contributing to an increase of approximately 0.12 percentage points in the CPI; prices of aquatic products increased by 2.5%, contributing to an increase of approximately 0.05 percentage points in the CPI; prices of meat increased by 0.7%, contributing to an increase of approximately 0.02 percentage points in the CPI, with pork prices increasing by 3.1%, contributing to an increase of approximately 0.04 percentage points in the CPI; prices of fresh vegetables decreased by 8.3%, contributing to a decrease of approximately 0.17 percentage points in the CPI; prices of eggs decreased by 3.5%, contributing to a decrease of approximately 0.02 percentage points in the CPI; prices of grains decreased by 1.4%, contributing to a decrease of approximately 0.02 percentage points in the CPI. Prices in the other seven categories saw six increases and one decrease YoY. Specifically, prices for other goods and services, clothing, and education, culture, and recreation rose by 7.3%, 1.5%, and 0.9%, respectively, while prices for healthcare, housing, and household goods and services increased by 0.3%, 0.1%, and 0.1%, respectively. In contrast, prices for transportation and communication fell by 4.3%. II. Month-on-Month Changes in Prices of Various Goods and Services In May, prices for food, tobacco, and liquor decreased by 0.2% MoM, contributing to a decrease of approximately 0.05 percentage points in the CPI. Among food items, prices for fresh vegetables decreased by 5.9%, contributing to a decrease of approximately 0.12 percentage points in the CPI; prices for eggs decreased by 0.9%, contributing to a decrease of approximately 0.01 percentage points in the CPI; prices for meat decreased by 0.2%, contributing to a decrease of approximately 0.01 percentage points in the CPI, with pork prices decreasing by 0.7%, contributing to a decrease of approximately 0.01 percentage points in the CPI. Conversely, prices for fresh fruit increased by 3.3%, contributing to an increase of approximately 0.07 percentage points in the CPI, and prices for aquatic products increased by 0.8%, contributing to an increase of approximately 0.02 percentage points in the CPI. Prices in the other seven categories saw four increases, one flat, and two decreases MoM. Specifically, prices for other goods and services and clothing increased by 0.7% and 0.6%, respectively, while prices for education, culture, and recreation and healthcare both increased by 0.1%. Housing prices remained flat. Prices for transportation and communication and household goods and services decreased by 1.2% and 0.8%, respectively. CPI Slightly Declined in May 2025, with YoY Growth in Core CPI Expanding —Interpretation of CPI and PPI Data for May 2025 by Dong Lijuan, Chief Statistician of the Urban Department, National Bureau of Statistics In May, the Consumer Price Index (CPI) decreased by 0.2% MoM and 0.1% YoY. Excluding food and energy prices, core CPI increased by 0.6% YoY, with the growth rate expanding by 0.1 percentage points from the previous month. The Producer Price Index for Industrial Products (PPI) decreased by 0.4% MoM, with the decline remaining the same as the previous month, and decreased by 3.3% YoY, with the decline expanding by 0.6 percentage points from the previous month. China is boosting consumption with greater intensity and more precise measures, fostering the growth of new quality productive forces, and improving the supply-demand relationship in some areas, leading to positive changes in prices. I. CPI Slightly Declined, with YoY Growth in Core CPI Expanding The shift from an increase to a decrease in CPI MoM was mainly influenced by the decline in energy prices. Energy prices decreased by 1.7% MoM, contributing to a decrease of approximately 0.13 percentage points in the CPI MoM, accounting for nearly 70% of the total decline in the CPI. Among them, gasoline prices decreased by 3.8%, with the decline expanding by 1.8 percentage points from the previous month. Food prices decreased by 0.2%, with the decline being 1.1 percentage points less than the seasonal level, contributing to a decrease of approximately 0.04 percentage points in the CPI MoM. Among these, the market supply of seasonal vegetables increased, leading to a 5.9% decline in fresh vegetable prices. Prices of eggs, pork, and poultry meat remained stable with slight decreases, ranging from 0.3% to 1.0%. Affected by factors such as heavy rainfall in some regions and the summer fishing moratorium, the supply of fresh fruits, freshwater fish, and marine fish decreased, with prices rising by 3.3%, 3.1%, and 1.5%, respectively. As consumer demand continued to recover, coupled with the impact of holidays and cultural and recreational activities held across the country, hotel accommodation and tourism prices rose by 4.6% and 0.8%, respectively, both exceeding seasonal levels. The increase in hotel accommodation prices reached a record high for the same period in the past decade. With the arrival of the summer season and the launch of new summer clothing collections, clothing prices rose by 0.6%. The CPI declined slightly YoY, with the same rate of decrease as the previous month. Among these, energy prices fell by 6.1% YoY, with the rate of decrease expanding by 1.3 percentage points from the previous month, contributing to a decrease of approximately 0.47 percentage points in the CPI YoY, which was the main factor behind the CPI's YoY decline. Policies aimed at boosting consumption continued to show positive effects, with prices in some sectors showing positive changes. Core CPI rose by 0.6% YoY, with the rate of increase expanding by 0.1 percentage point from the previous month. Among these, industrial consumer goods prices excluding energy rose by 0.6% YoY, with the rate of increase expanding by 0.2 percentage point from the previous month. Prices of gold jewelry, home textiles, and cultural and recreational durable consumer goods rose by 40.1%, 1.9%, and 1.8%, respectively, with all rates of increase expanding. Prices of gasoline-powered passenger cars and new energy passenger cars fell by 4.2% and 2.8%, respectively, with the rates of decrease narrowing. Service prices rose by 0.5%, with the rate of increase expanding by 0.2 percentage point from the previous month. Among services, rental fees for transportation vehicles, airfares, and tourism prices all turned from decline to increase, rising by 3.6%, 1.2%, and 0.9%, respectively. II. PPI Remained Low, with Marginal Improvements in Prices in Some Sectors The main reasons for the MoM decline in PPI this month are as follows: Firstly, international imported factors influenced the decline in domestic prices of related industries. The decline in international crude oil prices affected the decline in domestic prices of petroleum-related industries, with prices in the oil and natural gas extraction industry falling by 5.6%, prices in refined petroleum product manufacturing falling by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry falling by 1.2%. These three industries collectively contributed to a decrease of approximately 0.23 percentage points in PPI MoM, accounting for more than half of the total decline. Secondly, domestic prices of some energy and raw materials declined temporarily. Coal demand was in the off-season, with sufficient coal reserves at power plants and ports. Additionally, the low cost and strong substitution effect of new energy power generation led to a 3.0% decline in prices in the coal mining and washing industry and a 1.1% decline in coal processing prices. Increased high-temperature and rainy weather in south China affected the construction of some real estate and infrastructure projects. Coupled with sufficient production and supply of building materials such as steel and cement, prices in the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry both fell by 1.0%. These four industries collectively contributed to a decrease of approximately 0.18 percentage points in PPI MoM. Compounded by factors such as a higher base for comparison with the same period last year, the YoY decline in PPI expanded by 0.6 percentage points compared to the previous month. However, from the perspective of marginal changes, with the intensified implementation of macro policies in China, the supply-demand relationship in some industries has improved, and prices in certain areas have shown a positive trend. Firstly, the continuous growth of new consumption momentum has driven a YoY rebound in prices of consumer goods. The continuous effectiveness of policies aimed at boosting consumption has led to the release of demand for some consumer goods, driving up prices in related industries. The MoM decline in consumer goods prices turned to flatness from a 0.2% decrease in the previous month. Among them, prices for clothing, general daily necessities, and durable consumer goods rose by 0.2%, 0.1%, and 0.1%, respectively, driving the YoY decline in consumer goods prices to narrow by 0.2 percentage points compared to the previous month. From an industry perspective, prices for arts and crafts and ceremonial items manufacturing rose by 12.8% YoY, footwear manufacturing prices increased by 0.8%, computer whole machine manufacturing prices rose by 0.2%, and the YoY declines in prices for household washing machines, television manufacturing, and automobile whole vehicle manufacturing narrowed by 1.6, 1.4, and 0.6 percentage points, respectively, compared to the previous month. Secondly, the development of industries such as high-end equipment manufacturing has driven a YoY increase in prices in related industries. The steady advancement of high-end, intelligent, and green transformation in industrial development, along with the expansion of demand for high-tech products, has led to a YoY increase in prices in related industries. Prices for integrated circuit packaging and testing series, aircraft manufacturing all rose by 3.6%, wearable smart device manufacturing prices increased by 3.0%, microwave communication equipment prices rose by 2.1%, server prices increased by 0.8%, and prices for semiconductor device manufacturing equipment rose by 0.7%. In addition, the supply-demand relationship in new energy industries such as PV and lithium battery has improved, with narrowed YoY declines in prices. Prices for PV equipment and components manufacturing, and lithium-ion battery manufacturing fell by 12.1% and 5.0%, respectively, with declines narrowing by 0.4 and 0.3 percentage points, respectively, compared to the previous month.

According to data from the National Bureau of Statistics (NBS), in May, the national consumer price index (CPI) decreased by 0.1% YoY. Among them, prices in urban areas remained flat, while those in rural areas decreased by 0.4%; food prices decreased by 0.4%, and non-food prices remained flat; consumer goods prices decreased by 0.5%, while service prices increased by 0.5%. From January to May, the national CPI decreased by 0.1% compared to the same period last year. In May, the national CPI decreased by 0.2% MoM. NBS data also showed that in May, the Producer Price Index (PPI) for industrial producers decreased by 0.4% MoM, the same rate of decline as the previous month, and decreased by 3.3% YoY, with the rate of decline expanding by 0.6 percentage points compared to the previous month. The main reasons for the MoM decline in PPI this month are as follows: Firstly, international imported factors influenced the price decline in related domestic industries. The decline in international crude oil prices affected the price decline in domestic petroleum-related industries, with prices in the oil and natural gas extraction industry decreasing by 5.6%, prices in refined petroleum product manufacturing decreasing by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry decreasing by 1.2%. The combined impact of these three industries on the MoM decline in PPI was approximately 0.23 percentage points, accounting for more than half of the total decline. Secondly, there was a phased decline in the prices of some domestic energy and raw materials. Coal demand was in the off-season, with sufficient coal reserves in power plants and ports. Additionally, the low cost and strong substitution effect of new energy power generation led to a 3.0% decrease in prices in the coal mining and washing industry and a 1.1% decrease in coal processing prices. The increase in high-temperature and rainy weather in the south China region affected the construction of some real estate and infrastructure projects. Coupled with the sufficient supply of building materials such as steel and cement, prices in the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry both decreased by 1.0%. The combined impact of these four industries on the MoM decline in PPI was approximately 0.18 percentage points. CPI Slightly Declined in May 2025, While Core CPI YoY Growth Rate Expanded —Interpretation of CPI and PPI Data for May 2025 by Dong Lijuan, Chief Statistician of the Urban Department, National Bureau of Statistics In May, the CPI decreased by 0.2% MoM and 0.1% YoY. Excluding food and energy prices, core CPI increased by 0.6% YoY, with the growth rate expanding by 0.1 percentage points compared to the previous month. The PPI for industrial producers decreased by 0.4% MoM, the same rate of decline as the previous month, and decreased by 3.3% YoY, with the rate of decline expanding by 0.6 percentage points compared to the previous month. China is boosting consumption with greater intensity and more precise measures, fostering the growth of new quality productive forces. The supply-demand relationship in some areas has improved, and prices have shown positive changes. I. CPI Slightly Declined, While Core CPI YoY Growth Rate Expanded The shift from an increase to a decrease in the MoM CPI was mainly influenced by the decline in energy prices. Energy prices fell 1.7% MoM, contributing to a decrease of approximately 0.13 percentage point in the month-on-month decline of the CPI, accounting for nearly 70% of the total CPI decline. Among them, gasoline prices dropped 3.8%, with the decline widening by 1.8 percentage points from the previous month. Food prices decreased 0.2%, with the decline being 1.1 percentage points smaller than the seasonal level, contributing to a decrease of approximately 0.04 percentage point in the month-on-month decline of the CPI. Among them, the supply of seasonal vegetables increased, leading to a 5.9% drop in fresh vegetable prices. Prices of eggs, pork, and poultry meat declined slightly and steadily, with declines ranging from 0.3% to 1.0%. Affected by factors such as heavy rainfall in some regions and the summer fishing moratorium, the supply of fresh fruits, freshwater fish, and marine fish decreased, with prices rising by 3.3%, 3.1%, and 1.5%, respectively. As consumer demand continued to recover, coupled with the impact of holidays and cultural and recreational activities held across the country, hotel accommodation and tourism prices rose by 4.6% and 0.8%, respectively, both higher than the seasonal levels. Among them, the increase in hotel accommodation prices reached a record high for the same period in the past decade. With the arrival of the summer clothing season, clothing prices rose by 0.6%. The CPI declined slightly YoY, with the decline remaining the same as the previous month. Among them, energy prices fell 6.1% YoY, with the decline widening by 1.3 percentage points from the previous month, contributing to a decrease of approximately 0.47 percentage point in the year-on-year decline of the CPI, which was the main factor behind the year-on-year decline of the CPI. Policies aimed at boosting consumption continued to show effects, with prices in some areas showing positive changes. The core CPI rose 0.6% YoY, with the increase widening by 0.1 percentage point from the previous month. Among them, prices of industrial consumer goods excluding energy rose 0.6%, with the increase widening by 0.2 percentage point from the previous month. Prices of gold jewelry, home textiles, and cultural and recreational durable consumer goods rose by 40.1%, 1.9%, and 1.8%, respectively, with all increases widening. Prices of gasoline-powered passenger cars and new energy passenger cars fell by 4.2% and 2.8%, respectively, with both declines narrowing. Service prices rose 0.5%, with the increase widening by 0.2 percentage point from the previous month. Among services, rental fees for transportation vehicles, airfares, and tourism prices all turned from decline to increase, rising by 3.6%, 1.2%, and 0.9%, respectively. II. PPI Remains Low, with Price Improvements in Some Sectors The main reasons for the month-on-month decline in PPI this month are as follows: First, international imported factors have influenced the decline in prices of related domestic industries. The decline in international crude oil prices has affected the decline in prices of domestic petroleum-related industries, with prices in the oil and natural gas extraction industry falling by 5.6%, prices in the refined petroleum product manufacturing industry falling by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry falling by 1.2%. These three industries collectively contributed to a decrease of approximately 0.23 percentage point in the month-on-month decline of the PPI, accounting for more than 50% of the total decline. Second, the prices of some domestic energy and raw materials declined in phases. Coal demand was in the off-season, with sufficient coal reserves at power plants and ports. Coupled with the low cost and strong substitution effect of new energy power generation, the prices of coal mining and washing industry fell by 3.0%, and coal processing prices dropped by 1.1%. Increased high-temperature and rainy weather in south China affected the construction of some real estate and infrastructure projects. Additionally, the supply of building materials such as steel and cement was sufficient. As a result, the prices of ferrous metal smelting and rolling processing industry, and non-metallic mineral products industry both declined by 1.0%. The combined impact of these four industries on PPI was a MoM decline of approximately 0.18 percentage points. Coupled with factors such as a higher comparison base in the same period last year, the YoY decline in PPI expanded by 0.6 percentage points compared to the previous month. However, from the perspective of marginal changes, China's macro policies have been intensively implemented, the supply-demand relationship in some industries has improved, and prices in some areas have shown a positive trend. First, the continuous growth of new consumption momentum has driven the YoY rebound in prices of consumer goods. Policies aimed at boosting consumption have continued to take effect, and the release of demand for some consumer goods has driven price increases in related industries. The MoM decline in consumer goods prices turned to flatness from a 0.2% decline in the previous month. Among them, the prices of clothing, general daily necessities, and durable consumer goods rose by 0.2%, 0.1%, and 0.1%, respectively, driving the YoY decline in consumer goods prices to narrow by 0.2 percentage points compared to the previous month. From an industry perspective, the prices of arts and crafts and ceremonial products manufacturing increased by 12.8% YoY, the prices of footwear manufacturing rose by 0.8%, the prices of computer whole machine manufacturing increased by 0.2%, and the YoY declines in the prices of household washing machines, television manufacturing, and automobile whole vehicle manufacturing narrowed by 1.6, 1.4, and 0.6 percentage points, respectively, compared to the previous month. Second, the development of industries such as high-end equipment manufacturing has driven YoY price increases in related industries. The transformation of industries towards high-end, intelligent, and green development has steadily advanced, with an expanded demand for high-tech products, leading to YoY price increases in related industries. The prices of integrated circuit packaging and testing series, and aircraft manufacturing both rose by 3.6%, the prices of wearable smart device manufacturing increased by 3.0%, the prices of microwave communication equipment rose by 2.1%, the prices of servers increased by 0.8%, and the prices of semiconductor device manufacturing equipment increased by 0.7%. In addition, the supply-demand relationship in new energy industries such as PV and lithium battery has improved, with narrowed YoY price declines. The prices of PV equipment and components manufacturing, and lithium-ion battery manufacturing fell by 12.1% and 5.0%, respectively, with declines narrowing by 0.4 and 0.3 percentage points, respectively, compared to the previous month.

Previously, the US implemented reciprocal tariffs, sparking market concerns that a potential disruption in trade chains could drag down economic growth and push up inflation. Risk assets were broadly sold off, and copper prices were not spared from the downturn. Subsequently, trade conflicts began to ease, and copper prices embarked on a path of recovery. However, it can be observed that SHFE copper faced significant resistance at the gap left by the sharp drop in early April, while support below was also strong, with futures prices fluctuating rangebound around the 78,000 yuan level. Why has SHFE copper been caught in a dilemma recently? Is there a possibility for futures prices to break out of the rangebound situation in the future? Uncertainty remains over the tariff grace period Recently, negotiations between the US and various countries have been underway. In particular, after the 90-day reciprocal tariffs between China and the US were reduced to 10%, the market briefly traded on the logic of easing tariff tensions. However, the progress of some negotiations has been slow. Recently, Trump's attitude shifted, and he again proposed imposing tariffs on the EU. The market is also concerned about the possibility of renewed trade frictions after the tariff grace period. The positive impact of the short-term tariff easing has largely been priced in, making it difficult to provide further support for market sentiment. In addition, to divert attention from domestic contradictions such as the massive scale of debt, it is difficult for the US to restore tariffs on other countries to pre-2024 levels, and concerns about the economic growth outlook cannot be easily allayed. Judging from the recently released US economic data, the impact of tariff disruptions has so far been limited. US inflation in April was lower than expected, and the monthly rate of retail sales rose by 0.1%, exceeding expectations. The Markit manufacturing and services PMIs for May also exceeded expectations. However, the issue of the US's high debt burden still persists, with a significant amount of US debt maturing in June. Recently, Trump's tax cut bill narrowly passed the House of Representatives, and the market continues to worry about the US's mounting debt. The impact of tariff increases on the economy also remains to be tracked. Mining-side processing fees remain at extremely low levels, and the supply side appears somewhat fragile Since last year, tight ore supply has been a major factor plaguing the copper market. However, except for the news in March this year that Tongling Nonferrous Metals Group would carry out production cuts and maintenance, the production of domestic smelters has largely not been constrained by tight ore supply and extremely low processing fees. Therefore, against the backdrop of steady to increasing production in the smelting sector, the issue of tight ore supply alone is unlikely to provide a substantial boost to copper prices. However, it cannot be overlooked that the current spot processing fees for domestic copper concentrates have fallen below -$40/dmt, and the annual and quarterly processing fees negotiated between domestic smelters and overseas miners are increasingly lower. Recently, the market has focused its attention on the mid-year negotiations between global copper mining giant Antofagasta and Chinese and Japanese smelters. Previously, sources revealed that due to tight copper concentrate supply, smelters may request a "zero-dollar" processing fee, or even a negative value, for the second half of 2025. If the rumors are true, the output of by-products such as sulphuric acid may not be sufficient to offset the losses, undoubtedly exacerbating the production pressure on domestic small and medium-sized smelters. Meanwhile, there have been more disruptions in overseas mining operations. Last Tuesday, Ivanhoe Mines announced that mining operations at its Kakula underground mine within the Kamoa-Kakula copper mining area in the Democratic Republic of Congo (DRC) had been temporarily suspended, primarily due to the impact of an earthquake. Its Phase I and II beneficiation plants continue to operate at low capacity using surface ore stockpiles, while operations at the Kamoa mine and Phase III beneficiation plant remain unaffected. Kamoa-Kakula is a world-class, large-scale, ultra-high-grade copper mine. The Phase I mine, with a capacity of 6 million mt/year, was constructed at Kakula, while Phase II utilizes existing facilities at the Kansoko mine to increase capacity to 12 million mt/year. In the evening of May 23, Zijin Mining, another major investor in the mine, also issued an announcement, stating that the earthquake is expected to adversely affect the achievement of the Kamoa-Kakula copper mine's annual planned production, with the specific extent of the impact requiring further assessment based on the investigation results. Overall, due to the faster expansion of global smelters, the copper ore supply tightness is relatively severe and is unlikely to ease significantly in the short term. Against the backdrop of strong bargaining power of miners, the copper concentrate TCs negotiated by smelters are becoming increasingly lower, with the possibility of approaching zero. In the early stage, smelters adjusted their operations through measures such as long-term contracts, supplementing with other raw materials, and offsetting profits with by-products such as sulphuric acid, maintaining overall stable production. Recently, during the concentrated maintenance period of the year, there are still few maintenance plans among domestic smelters, and there has been no significant production cut due to ore shortages. Going forward, attention should still be paid to the long-term contract levels of copper concentrate TCs negotiated between overseas miners and domestic smelters. Before the ore supply tightness can be transmitted to the smelting end, it will still be difficult to provide more upward momentum for copper prices. If smelters indeed undertake substantial production cuts, copper prices may experience a sharp increase. Social inventory of domestic copper cathode accumulates slightly, with expectations of weakening demand Recently, the performance of global copper visible inventories has been divergent. COMEX copper inventories have continued to rebound, rising from around 92,000 mt in early March to approximately 175,600 mt currently, reflecting the process of global copper flowing into the US amid expectations of a possible tariff hike on imported copper by the US. Correspondingly, LME copper inventories have been continuously pulling back, declining from around 260,000 mt in early March to approximately 164,700 mt currently, with a significant destocking amplitude. The current price spread between COMEX copper and LME copper remains at a relatively high level. Before the implementation of copper-related tariffs by the US, global copper will continue to flow into the US due to the existence of profits. Domestically, the traditional peak season of "Golden March, Silver April" has passed. Coupled with the rebound of copper prices from low levels, the downstream demand in the domestic copper market has weakened compared to the previous period, and the destocking of social inventories of copper cathode in China has halted. However, overall, the extent of inventory buildup has been very limited so far, and the inflow of domestic inventories has also been influenced by the outflow of exchange warrants and the inflow of inventories from bonded areas. From the downstream industry data released this month, the high-growth momentum of power grid investment continues, and the State Grid Corporation of China's annual record-high target is relatively certain. This aspect of demand will continue to support copper prices. According to data from the National Bureau of Statistics, automobile production continued to increase YoY, and industry prosperity persisted. However, in April, the production of refrigerators and air conditioners both pulled back, indicating a potential weakening in demand in this sector. Overall, during the moratorium period, global trade frictions have eased compared to the previous period, but uncertainties in negotiations still persist. Moreover, against the backdrop of deglobalization, market concerns about the economic outlook are difficult to completely dispel, and the suppression at the previous gap still exists. On the supply and demand side, concerns about tight ore supplies have lingered for a long time, and recent disruptions at the ore end have increased again, continuously consolidating the downward support for copper prices. Additionally, the siphon effect of the US has also made it difficult for copper inventories in other regions to accumulate significantly. However, the output of copper cathode remains stable, and there are expectations of a marginal weakening in demand. Therefore, a breakout from the current stalemate in SHFE copper prices may require more definitive changes to occur.

[5.20 Morning Meeting Minutes] Affected by destocking at downstream material plants this month, the production schedule of some precursors has declined, leading to a weaker demand for nickel salt purchases. Supply side, some nickel salt smelters reduced their quotation coefficients this week due to weak demand for precursors. Looking ahead, it is expected that nickel salt prices will remain stable this week, given the weak supply and demand in the market as well as the cost support for nickel salt.

SMM Nickel News on May 19: Macro News: (1) According to data from the National Bureau of Statistics, in April, the total retail sales of consumer goods reached 3,717.4 billion yuan, up 5.1% YoY. Excluding automobiles, the retail sales of consumer goods amounted to 3,354.8 billion yuan, up 5.6% YoY. From January to April, the total retail sales of consumer goods reached 16,184.5 billion yuan, up 4.7% YoY. Excluding automobiles, the retail sales of consumer goods amounted to 14,700.5 billion yuan, up 5.2% YoY. (2) Recently, the US has successively reached trade agreements with the UK and China, significantly easing global trade tensions. However, uncertainties surrounding tariffs still linger. On Sunday local time, US Treasury Secretary Bessent warned that some of the US's trading partners may soon face another significant increase in tariff rates. In an interview with the media, Bessent stated that if countries do not engage in "good faith" negotiations and fail to reach trade agreements before the tariff moratorium expires in early July, tariff rates will soon revert to "Liberation Day" levels. Spot Market: Today, the SMM 1# refined nickel price ranges from 123,850 to 126,150 yuan/mt, with an average price of 125,000 yuan/mt, a decrease of 1,125 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan No.1 nickel is 2,000-2,200 yuan/mt, with an average premium of 2,100 yuan/mt, unchanged from the previous trading day. The premium and discount quotation range for Russian nickel is 100-300 yuan/mt, with an average premium of 200 yuan/mt, an increase of 50 yuan/mt from the previous trading day. Futures Market: The most-traded SHFE nickel contract (NI2506) maintained a fluctuating trend during the daytime session. As of 11:30, the closing price was 124,100 yuan/mt, down 1.27%. In terms of inventory, as of May 16, LME nickel inventory decreased by 3,924 mt to 195,222 mt on a single day, while domestic SHFE inventory decreased by 66 mt to 27,742 mt. Currently, nickel prices are mainly influenced by "intensified policy disruptions and deepening supply-demand imbalance," maintaining a fluctuating pattern in the short term, with a support level at 122,000 yuan/mt and a resistance level at 128,000 yuan/mt. In the medium and long term, the trend is expected to be weak.

According to data from the National Bureau of Statistics (NBS), in April 2025, China's consumer price index (CPI) decreased by 0.1% YoY. Specifically, prices in urban areas remained flat, while those in rural areas decreased by 0.3%. Food prices decreased by 0.2%, while non-food prices remained flat. Prices for consumer goods decreased by 0.3%, while service prices increased by 0.3%. On average from January to April, China's CPI decreased by 0.1% compared to the same period last year. NBS data also showed that in April 2025, China's producer price index (PPI) for industrial products decreased by 2.7% YoY and by 0.4% MoM. The purchase prices for industrial producers decreased by 2.7% YoY and by 0.6% MoM. On average from January to April, both the PPI for industrial products and the purchase prices for industrial producers decreased by 2.4% compared to the same period last year. Dong Lijuan, the chief statistician of the NBS's Urban Department, interpreted the CPI and PPI data for April 2025: In April, the CPI increased by 0.1% MoM, reversing the 0.4% decrease in the previous month, and decreased by 0.1% YoY, with the decline remaining the same as the previous month. The core CPI increased by 0.2% MoM, reversing the flat trend in the previous month, and increased by 0.5% YoY, with the increase remaining stable. The PPI decreased by 0.4% MoM, with the decline remaining the same as the previous month, and decreased by 2.7% YoY, with the decline expanding by 0.2 percentage points compared to the previous month. Although international imported factors have had a certain downward impact on prices in some industries, China's economic foundation is stable and resilient, various macro policies are working in synergy, high-quality development is advancing steadily, and prices in some areas are showing positive changes. In April 2025, China's PPI for industrial products decreased by 2.7% YoY In April 2025, China's PPI for industrial products decreased by 2.7% YoY and by 0.4% MoM. The purchase prices for industrial producers decreased by 2.7% YoY and by 0.6% MoM. On average from January to April, both the PPI for industrial products and the purchase prices for industrial producers decreased by 2.4% compared to the same period last year. I. Year-on-Year Changes in Producer Prices for Industrial Products In April, among the PPI for industrial products, prices for means of production decreased by 3.1%, contributing to a decrease of approximately 2.28 percentage points in the overall level of the PPI for industrial products. Specifically, prices for the mining industry decreased by 9.4%, prices for the raw material industry decreased by 3.6%, and prices for the processing industry decreased by 2.3%. Prices for means of subsistence decreased by 1.6%, contributing to a decrease of approximately 0.40 percentage points in the overall level of the PPI for industrial products. Specifically, food prices decreased by 1.4%, clothing prices decreased by 0.1%, prices for general daily necessities increased by 0.6%, and prices for durable consumer goods decreased by 3.7%. Among the purchase prices of industrial producers, prices for fuel and power fell by 7.7%, prices for ferrous metal materials fell by 6.7%, prices for chemical raw materials fell by 4.1%, prices for agricultural and sideline products fell by 2.9%, prices for textile raw materials fell by 2.3%, and prices for building materials and non-metals fell by 1.4%; prices for non-ferrous metal materials and wires rose by 8.5%. II. Month-over-Month (MoM) Changes in Industrial Producer Prices In April, among the ex-factory prices of industrial producers, prices for means of production fell by 0.5%, contributing to a decrease of approximately 0.37 percentage points in the overall level of ex-factory prices of industrial producers. Specifically, prices for the mining industry fell by 2.1%, prices for the raw material industry fell by 1.0%, and prices for the processing industry fell by 0.2%. Prices for means of subsistence fell by 0.2%, contributing to a decrease of approximately 0.05 percentage points in the overall level of ex-factory prices of industrial producers. Specifically, food prices fell by 0.1%, clothing prices rose by 0.3%, general daily necessities prices rose by 0.2%, and durable consumer goods prices fell by 0.7%. Among the purchase prices of industrial producers, prices for fuel and power fell by 2.3%, prices for chemical raw materials fell by 0.7%, prices for ferrous metal materials fell by 0.6%, prices for building materials and non-metals fell by 0.4%, and prices for agricultural and sideline products and textile raw materials both fell by 0.2%; prices for non-ferrous metal materials and wires rose by 0.7%. In April 2025, the MoM CPI shifted from decline to growth, with core CPI growth remaining stable —Interpretation of CPI and PPI Data for April 2025 by Dong Lijuan, Chief Statistician of the Urban Department, National Bureau of Statistics (NBS) In April, the Consumer Price Index (CPI) shifted from a 0.4% MoM decline in the previous month to a 0.1% MoM increase, with a 0.1% YoY decline, the same as the previous month. The core CPI shifted from flat to a 0.2% MoM increase, with a 0.5% YoY increase, maintaining stable growth. The Producer Price Index (PPI) for industrial producers fell by 0.4% MoM, the same as the previous month, and fell by 2.7% YoY, with the decline expanding by 0.2 percentage points from the previous month. Although international imported factors have had a certain downward impact on prices in some industries, China's economic foundation remains stable and resilient, with various macro policies working in synergy to advance high-quality development, leading to positive changes in prices in some areas. I. The MoM CPI shifted from decline to growth, with a slight YoY decline, and core CPI growth remained stable From a MoM perspective, the CPI shifted from decline to growth, with the increase exceeding the seasonal level by 0.2 percentage points, mainly driven by the rebound in food and travel service prices.Food prices rose 0.2% MoM, 1.4 percentage points higher than the seasonal level. Among them, beef prices increased by 3.9% due to factors such as reduced imports. As some regions entered the marine fishing moratorium period, the prices of marine fish rose by 2.6%. At the initial stage of new fruit availability, the seasonal supply of potatoes and fresh fruits decreased, leading to price increases of 4.7% and 2.2%, respectively. The prices of fresh vegetables and pork fell by 1.8% and 1.6%, respectively, with declines smaller than the seasonal level. Affected by the combined impact of recovering demand and holiday factors, travel service prices rebounded significantly. Prices of air tickets, vehicle rental fees, hotel accommodations, and tourism rose by 13.5%, 7.3%, 4.5%, and 3.1%, respectively, with increases all higher than the seasonal level, collectively contributing to a MoM rise in CPI of approximately 0.10 percentage points. Due to changes in international gold prices, the prices of domestic gold jewelry increased by 10.1%, contributing to a MoM rise in CPI of approximately 0.06 percentage points. On a YoY basis, CPI declined slightly, mainly influenced by the decline in international oil prices. Energy prices fell 4.8% YoY, with the decline expanding by 2.2 percentage points from the previous month. Among them, gasoline prices fell by 10.4%, contributing to a YoY decline in CPI of approximately 0.38 percentage points, which was the main factor driving the YoY decline in CPI. Food prices fell by 0.2%, with the decline narrowing by 1.2 percentage points from the previous month, contributing to a decline in CPI of approximately 0.03 percentage points. Core CPI, excluding food and energy prices, rose by 0.5%, with the increase remaining stable. Among them, service prices rose by 0.3%, with the increase remaining the same as the previous month. Within services, the prices of housekeeping services, elderly care services, and education services rose by 2.5%, 1.4%, and 1.2%, respectively, with overall stable increases. The prices of industrial consumer goods excluding energy rose by 0.4%, contributing to a YoY rise in CPI of approximately 0.10 percentage points. Among them, the prices of gold jewelry rose by 35.8%, with the increase slightly expanding from the previous month. The prices of clothing and communication tools rose by 1.5% and 1.0%, respectively, with increases remaining basically stable. The prices of gasoline-powered passenger cars and new energy passenger cars fell by 4.6% and 3.4%, respectively, with declines both narrowing. II. The MoM decline in PPI remained the same as the previous month, with prices in some industrial sectors continuing to show a stable and improving trend. PPI fell by 0.4% MoM, with the decline remaining the same as the previous month. The main reasons for the decline in PPI this month are as follows: First, international imported factors influenced the downward trend in domestic related industry prices. Changes in the international trade environment led to a rapid decline in the prices of some international bulk commodities, affecting the decline in domestic related industry prices. Among them, the decline in international crude oil prices influenced the MoM decline in domestic oil-related industry prices. The prices of the oil and natural gas extraction industry fell by 3.1%, the prices of refined petroleum product manufacturing fell by 2.5%, and the prices of the chemical raw materials and chemical products manufacturing industry fell by 0.6%. The decline in international prices of non-ferrous metals such as aluminum, zinc, and copper influenced the respective declines of 2.4%, 1.6%, and 0.8% in the prices of domestic aluminum smelting, zinc smelting, and copper smelting.Prices in some export-oriented industries declined on a MoM basis, with the automobile manufacturing industry seeing a 0.5% decrease. The computer, communication, and other electronic equipment manufacturing industry, furniture manufacturing industry, and fabricated metal product industry all experienced a 0.2% decline in prices. Collectively, these 10 industries contributed to an approximate 0.24 percentage point MoM decrease in the Producer Price Index (PPI). Second, domestic energy prices declined seasonally. With the complete conclusion of the northern heating season, coal demand entered the traditional off-season, leading to a 3.3% MoM decrease in both coal mining and washing industry prices and coal processing prices. The low cost and strong substitution effect of new energy power generation, coupled with increased wind power output, resulted in a 0.3% MoM decrease in prices for the electricity, heat production, and supply industry. Collectively, these three industries contributed to an approximate 0.10 percentage point MoM decrease in PPI. China has intensified and expanded its macro policies, such as promoting consumption, accelerating the growth of high-tech industries, increasing demand in some sectors, and showing positive changes in prices in certain fields. First, the supply-demand relationship in some industries has improved, with narrowing price declines. Steady progress in infrastructure construction projects across regions and good implementation of staggered production schedules by cement enterprises have led to a narrowing of the YoY decline in prices for the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry by 1.4 and 1.0 percentage points, respectively, compared to the previous month. Policies promoting consumption and equipment updates continue to show effects, with increased demand for some consumer goods and equipment manufacturing products driving price rebounds in related industries. The YoY decline in prices for household washing machines narrowed by 0.3 percentage points compared to the previous month, while the YoY decline in prices for the food manufacturing industry and passenger NEVs narrowed by 0.2 percentage points each. The YoY decline in prices for electrical machinery and equipment manufacturing narrowed by 0.7 percentage points, and the YoY decline in prices for agriculture, forestry, animal husbandry, and fishery machinery manufacturing, as well as metal processing machinery manufacturing, narrowed by 0.2 percentage points each. Second, the development of high-tech industries has driven price increases in related sectors. The continuous cultivation and growth of new quality productive forces, along with the deep integration of technological innovation and industrial innovation, have led to YoY price increases in related industries driven by the development of industries such as intelligent manufacturing and high-end equipment manufacturing. Prices for wearable smart device manufacturing increased by 3.0%, aircraft manufacturing prices rose by 1.3%, micro and special motor and component manufacturing prices increased by 1.2%, server prices rose by 1.0%, and ship and related equipment manufacturing prices increased by 0.8%. In addition, China has continued to promote trade diversification, with market expansion driving YoY price increases or narrowing price declines in some export-oriented industries. Prices for integrated circuit packaging and testing series increased by 2.7%, and prices for semiconductor device manufacturing equipment increased by 1.0%. The YoY decline in prices for tractor manufacturing, electronic device manufacturing, and the textile, clothing, and apparel industry narrowed by 1.2, 0.7, and 0.3 percentage points, respectively, compared to the previous month.