SMM February 11: According to official information, Nandan County South Nonferrous Metals Co., Ltd. exported antimony ingots, with quality specifications meeting the standard: National Standard 2#, implemented (GB/T1599-2014), fumigated pallets, steel or plastic steel strapping, approximately 200 mt. The quoted price is the tax-included ex-plant price (13% tax rate) at Nandan County South Nonferrous Metals Co., Ltd. Delivery location: Nandan County South Nonferrous Metals Co., Ltd. warehouse, the seller is responsible for loading and weighing, while the freight is borne by the buyer. The settlement method is payment before delivery, with a 10% deposit of the total cargo value to be prepaid within 2 working days after winning the bid, and the remaining balance to be paid in full within 2 working days after signing the contract. The deadline for this quotation is 16:00 on February 12, 22026, and it will be invalid after expiration. This official information temporarily has no reserve price.

The path for joint mergers and acquisitions (M&A) and restructuring in the highly anticipated polysilicon sector has begun to take shape. During this year's SNEC exhibition, Lan Tianshi, Co-CEO of GCL Technology (03800.HK), revealed in an exchange with media outlets such as Cailian Press that currently, leading enterprises in the industry are taking the lead in establishing a company operated by professional managers through a model of "direct capital contribution + debt". This company aims to achieve capacity exit and controlled output through acquisitions, and then repay liabilities through profits, thereby promoting the orderly exit of industry capacity. "In the future, participants may invest and repay debts with real money through equity or forms such as limited partnerships (LPs)," Lan Tianshi said.

A day after US CPI inflation for May came in below expectations across the board, the overall increase in the US Producer Price Index (PPI) for May, released on Thursday, remained mild, suggesting that tariffs have not yet imposed higher inflationary pressure on consumers and further boosting expectations for a US Fed interest rate cut in September. According to a report issued by the US Bureau of Labor Statistics, the US PPI year-over-year (YoY) rate for May was recorded at 2.6%, in line with market expectations of 2.6%; the US PPI month-over-month (MoM) rate for May was recorded at 0.1%, below the market expectation of 0.2%. Excluding the more volatile food and energy categories, the core PPI for May rose 3.0% YoY, the lowest level since August 2024 and below the expected 3.1%; it increased 0.1% MoM, below the expected 0.3%. The PPI measures inflation from the producer's perspective, reflecting the price conditions of goods purchased during the production process. Changes in the PPI can predict future price movements, making this indicator highly valued by the market. Data showed that wholesale energy prices remained largely unchanged, although gasoline prices rose 1.6% MoM. After a 0.9% decline in April, wholesale food prices rose 0.1% MoM in May. The highly watched price of eggs increased by 1.4%. Since taking office earlier this year, Trump has imposed a baseline tariff of 10% on all trading partners and varying tariffs on steel, aluminum, and automobiles. US importers will pay these taxes and, where possible, pass them on to consumers through price increases. Although the current impact of higher tariffs on the US public is not yet significant, economists point out that price pressures may intensify in the second half of the year as companies attempt to avoid further weakening of profit margins. Stephen Brown, an analyst at Capital Economics, noted that wholesale prices can provide an initial insight into the direction of consumer inflation, as some of its components are used to calculate the Fed's preferred inflation indicator, the PCE data. Carl Weinberg, chief economist at High Frequency Economics, wrote, "Today's data show that the Fed has no reason to discuss raising interest rates. In fact, if Trump's tariff policies had not been implemented, the Fed might even consider cutting interest rates to stimulate the economy." Meanwhile, another set of data released by the US Department of Labor showed that the number of initial jobless claims for the week ending June 7, seasonally adjusted, remained steady at 248,000, compared with market expectations of 240,000, the highest level since last October. The number of continuing jobless claims jumped to 1.951 million, the highest level since November 2021, indicating that it is becoming increasingly difficult for the unemployed to find new jobs. According to the CME Group's FedWatch Tool, the probability of an interest rate cut in September stood at 80%, up from 70% the previous day.

[SMM Flash News] Zhejiang Seeks Public Opinions on Distributed PV: No Limit on Self-Consumption Ratio for General Industrial and Commercial Users On June 9, Zhejiang Province issued a notice on "Public Consultation on the Implementation Rules for the Development and Construction Management of Distributed PV Power Generation in Zhejiang Province (Draft for Consultation)." The notice states that distributed PV projects for general industrial and commercial users can choose either the full self-consumption mode or the self-consumption with surplus electricity fed into the grid mode. For those adopting the self-consumption with surplus electricity fed into the grid mode, there is no requirement for the proportion of annual self-consumed electricity to the total power generation. Large-scale distributed PV projects for industrial and commercial users can choose either the full self-consumption mode or the self-consumption with surplus electricity fed into the grid mode to participate in the spot market.

Recently, the Procurement Announcement for Outsourced Business Services in 2025 for the Integrated Demonstration Project of Wind Power Storage, Hydrogen Production, and Ammonia Production in Horqin Right Front Banner, China National Nuclear Corporation (CNNC) was released. According to the tender announcement, the scope of work includes comprehensive services, encompassing administrative support services, logistical support services (vehicle driving services, canteen logistical services, and office area cleaning services), among others. Service Period: 12 months from the effective date of the contract, or until the cumulative settlement amount reaches the total project cost, whichever comes first. The announcement is as follows: CNNC Huineng Co., Ltd. - Procurement Announcement for Inquiry-Based Procurement of Outsourced Business Services in 2025 for the Integrated Demonstration Project of Wind Power Storage, Hydrogen Production, and Ammonia Production in Horqin Right Front Banner, CNNC I. Project Overview Project Name: Outsourced Business Services in 2025 for the Integrated Demonstration Project of Wind Power Storage, Hydrogen Production, and Ammonia Production in Horqin Right Front Banner, CNNC Project Number: HNGS-FW-GKXJ-25-0971 Service Period: The service period shall be determined by the earlier of the following two conditions (1) and (2): (1) 12 months from the effective date of the contract (2) Until the cumulative settlement amount reaches the total project cost. Service Location: Inner Mongolia region (to be determined based on the actual business needs of the Employer). Scope of Work: Comprehensive services, including administrative support services, logistical support services (vehicle driving services, canteen logistical services, and office area cleaning services), among others. (For detailed scope of work, refer to the attached Technical Specifications.) Quality Requirements: In compliance with the requirements of the Technical Specifications. II. Supplier Qualification Requirements: 1. Bidders shall have at least three similar human resources service project achievements within the past three years (from 2022 to present) (contractual proof materials are required). 2. The project leader shall have three or more years of experience in similar human resources service projects, as evidenced by performance proof documents. In the event of any inconsistency between the supplier qualification requirements in this inquiry document and its attachments and those in this section, the requirements in this section shall prevail. III. Registration Method This project adopts an open approach to select suppliers. Potential suppliers interested in participating in this project are requested to log in to the CNNC Electronic Procurement Platform (https://www.cnncecp.com) and register before 11:30 a.m. on June 8, 2025. IV. Acquisition of Procurement Documents 1. Address for Acquiring Procurement Documents: This project will no longer provide paper procurement documents. Potential suppliers participating in this project shall download the procurement documents through the CNNC Electronic Procurement Platform after registration. 2. Potential suppliers interested in participating in this project must first register on the China National Nuclear Corporation (CNNC) Electronic Procurement Platform. After the registration account is approved, log in to the system on the homepage under "User Login" by entering the account and password. Then, click → System Function Menu → Project Management → I Want to Register. Locate the procurement document titled "2025 Outsourced Business Services for the CNNC Keyouqianqi Wind-Storage Hydrogen and Ammonia Integrated Demonstration Project," click "I Want to Register" to view the project information and register for participation. Upon successful registration, you can download the project's procurement document and related attachments. V. Submission of Response Documents/Quotation Documents 1. Deadline for Submission of Response Documents: Participants in this project are required to log in and upload the electronic version of their response documents on the CNNC Electronic Procurement Platform (https://www.cnncecp.com) before 11:30 AM (Beijing Time) on June 10, 2025. 2. Method for Submitting Response Documents: Enter the quotation amount on the electronic procurement platform and upload the scanned copy of the signed and stamped quotation document. 3. The procurer will not accept submissions from participants who have not registered online or uploaded their response documents. VI. Announcement Media This announcement is published on the CNNC Electronic Procurement Platform (https://www.cnncecp.com). The procurer assumes no responsibility for the accuracy of announcements regarding this project published on other media. The final interpretation rights for this procurement activity belong to the Business Procurement Center. VII. Additional Notes 1. The group's electronic procurement platform uses the bidder's MAC address and hardware feature code as the basis for identification. If there is a match, the bidder's access to the platform will be disabled. If collusive bidding is confirmed or if reasonable explanations and valid evidence cannot be provided, we reserve the right to reject this procurement activity. In serious cases, the tenderer has the right to handle the supplier's misconduct by placing them on a gray or blacklist. 2. Different suppliers with the same person in charge of the unit or with direct holding or management relationships are not allowed to participate in the procurement activities under the same procurement item (section). VIII. Contact Information CNNC New Energy Business Procurement Center Tianjin Branch Business Contact: Gao Xin Phone: 15848499791 Email: gaoxin@cnnp.com.cn Address: W17-2, West Zone, Business Park, Konggang Economic Zone, Dongli District, Tianjin Xing'an League Huike Energy Co., Ltd. June 4, 2025

Today, the three major indices of Hong Kong stocks extended their gains. By the close, the Hang Seng Index rose 1.07% to close at 23,906.97 points; the Hang Seng Tech Index climbed 1.93% to close at 5,319.96 points; and the Hang Seng China Enterprises Index gained 1.26% to close at 8,684.73 points. Note: Performance of the Hang Seng Index Notably, the Hang Seng Index has risen for three consecutive days. The Hang Seng Tech Index has followed a similar trend over the same period. Today's Market In terms of market performance, individual stocks in the semiconductor and real estate sectors strengthened, while those in the pharmaceutical, tea beverage, and shipping sectors weakened. Semiconductor Stocks Lead the Market By the close, Hongguang Semiconductor (06908.HK), Hua Hong Semiconductor (01347.HK), and SMIC (00981.HK) rose 10.87%, 4.23%, and 4.19%, respectively. Note: Performance of semiconductor stocks In terms of news, the World Semiconductor Trade Statistics (WSTS) released a report stating that the global semiconductor market size will reach $700.9 billion in 2025, up 11.2% YoY. In terms of market segments, the growth in the semiconductor market this year will be led by increases in logic and memory: both markets are driven by sustained demand in areas such as AI, cloud infrastructure, and advanced consumer electronics, with double-digit YoY growth rates. Policies Continue to Stimulate Real Estate Stocks By the close, Midea Real Estate (03990.HK), China Resources Land (01109.HK), and China Overseas Land & Investment (00688.HK) rose 4.38%, 3.56%, and 1.69%, respectively. Note: Performance of real estate stocks China Index Academy stated in an article that the total bond financing of national real estate enterprises in May was 28.88 billion yuan, up 23.5% YoY. In terms of financing structure, corporate bond financing in the real estate sector was 11.17 billion yuan in May, up 5.8% YoY, accounting for 38.7%; ABS financing was 17.71 billion yuan, up 38.1% YoY, accounting for 61.3%. The average interest rate for bond financing was 2.35%, down 0.43 percentage points YoY and 0.41 percentage points MoM. China Galaxy Securities analyzed that the continuous optimization of the policy environment has driven the recovery of financing for real estate enterprises. The premium transactions of high-quality land plots in core cities indicate a restoration of market confidence, and there is significant room for valuation recovery for real estate enterprises with high-quality land reserves. Most Pharmaceutical Stocks Adjusted By the close, SinoMab BioScience (03681.HK), Harbour BioMed (02142.HK), and Giant Biogene Holding (02367.HK) fell 17.19%, 9.83%, and 8.70%, respectively. Note: Performance of pharmaceutical stocks In terms of news, this adjustment was mainly influenced by profit-taking. Taking SinoMab BioScience as an example, the stock has risen by more than 110% over the past four trading days. Soochow Securities has cautioned that after the rapid rise of the innovative drug sector, attention should be paid to the valuation match, and it is recommended to focus on enterprises with international BD capabilities and commercialization implementation. Tea beverage stocks retreat after hitting new highs By the close of trading, Gu Ming (01364.HK), Mixue Group (02097.HK), and Cha Baidao (02555.HK) fell by 7.97%, 7.72%, and 7.72%, respectively. Note: Performance of tea beverage stocks In terms of news, analysts from Everbright Securities International stated that the valuations of some consumer stocks have already factored in growth expectations, and it is necessary to pay attention to the validation of same-store sales data in Q2. It is recommended to differentiate and treat targets with the ability to continuously expand stores. Other new consumer stocks also weaken simultaneously Laopu Gold (06181.HK), Maogeping (01318.HK), and Blukoo (00325.HK), which are also new consumer stocks listed in Hong Kong, also experienced adjustments, falling by 9.05%, 6.67%, and 3.64%, respectively. Taking Laopu Gold as an example, the market is concerned about the liquidity pressure brought by the lifting of the 69.05 million share lock-up at the end of June. In addition, the stock has accumulated a gain of 212% year-to-date. Individual stock movements Dongfeng Motor's H-shares plummet over 14%; controlling shareholder clarifies no restructuring plans for now Dongfeng Motor Group (00489.HK) fell by 14.45% to close at HK$3.61. According to an announcement in the morning, the controlling shareholder stated that it is currently not involved in any business restructuring. Xindong Games surges over 8% during trading; "Etheria" international server launches today Xindong Games (02400.HK) rose by 8.25% to close at HK$40. In terms of news, the strategy turn-based RPG mobile game "Etheria" developed by Xindong Games will officially launch its international server on June 5. Kaiyuan Securities believes that following the impressive performances of "Muffin Adventure" and "Xindong Town," which were launched in 2024, the launch of "Etheria" may further drive Xindong Games' earnings growth. Citi previously pointed out that the company may have more catalysts in H2, namely the launch of "Etheria" in mid-year and the overseas version of "Xindong Town" in H2. JL MAG Rare-Earth's H-shares surge over 12%; China's rare earth export controls trigger sharp jump in overseas rare earth prices JL MAG Rare-Earth (06680.HK) rose by 12.13% to close at HK$18.86. In terms of news, affected by China's rare earth export controls, overseas medium-heavy rare earth prices jumped by 15% in a single week. Guotai Junan Securities expects that the widening price spread between domestic and overseas markets will drive profit improvements for rare earth permanent magnet enterprises, with enterprises possessing overseas channel advantages benefiting significantly.

William Pulte, Director of the Federal Housing Finance Agency (FHFA), called out to Fed Chairman Powell on social media: "It's time to resume interest rate cuts!" "Really, enough is enough! Stop it already! Powell needs to lower interest rates. President Trump has crushed Biden's inflation, and there's no reason not to lower interest rates. If Chairman Powell does so, the real estate market will be in much better shape." He wrote. Pulte's latest remarks echo the "long-held wish" of US President Trump since taking office. Since assuming office, Trump has been continuously pressuring Powell to cut interest rates promptly, especially against the backdrop of indiscriminate use of "tariff sticks." However, can an interest rate cut really "cure all ills"? Many analysts' answer is no, and it is precisely because of Trump's economic policies that US home prices have been difficult to cool down. Some experts have pointed out that the US housing inventory remains limited, and this issue is unlikely to ease this year. Moreover, due to tariffs driving up US material prices and immigration policies leading to labor shortages, US builders lack the motivation to construct. Many companies and business groups have frequently warned that Trump's tariff policies will force them to raise prices. According to the US Fed's latest Beige Book, retailers generally expect to raise prices in the near future in response to tariffs. In early April, Trump stated, "This would be the best time for Fed Chairman Jerome Powell to cut interest rates. He's always 'late,' but he can now quickly change his image. Lower interest rates, Jerome, and stop playing politics." Since cutting interest rates by 100 basis points in the second half of last year, the US Fed has remained inactive, maintaining the target range for the federal funds rate at 4.25%-4.5%. As of the interest rate-setting meeting in May this year, it was the third consecutive meeting where the Fed kept interest rates unchanged. At the press conference after the May interest rate meeting, Powell stated that the Fed does not need to rush to adjust interest rates, and the current policy is moderately restrictive. Trump's calls for interest rate cuts will not affect the Fed's work. He also pointed out that the White House's intermittent trade wars have created an environment of economic uncertainty. Currently, high home prices are one of the most stubborn areas of US inflation. Daryl Fairweather, Chief Economist at Redfin, recently warned that Trump's policies on immigration, tariffs, etc., have kept US home prices high, which has increased the risk of rising US inflation and also led to greater resistance to interest rate cuts by the Fed. Economists generally expect that inflation in the US will rise—at least in the short term—which could lead the US Fed to maintain high interest rates for a longer period.

Shandong Humon has initiated a public tender for the sale of high-purity tellurium head and tail materials starting today.

》Click to view SMM aluminum industry chain database 》Order to view SMM metal spot historical prices 5.9 SMM Aluminum Morning Meeting Summary Futures: Yesterday, the most-traded SHFE aluminum 2506 contract opened at 19,560 yuan/mt, with a high of 19,615 yuan/mt, a low of 19,530 yuan/mt, and closed at 19,570 yuan/mt, up 0.46%. Trading volume was 48,000 lots, and open interest was 191,000 lots. LME aluminum opened at $2,408/mt yesterday, with a high of $2,414/mt, a low of $2,408/mt, and closed at $2,410/mt, down $2/mt, or 0.08%. Macro: (1) The UK and the US reached an agreement on the terms of a tariff trade deal, with the UK government agreeing to make concessions on imports of US food and agricultural products in exchange for the US reducing tariffs on UK car exports. The US will lower tariffs on UK-made cars to 10% and reduce tariffs on steel and aluminum to zero. (Bullish★) (2) The Ministry of Commerce once again responded to the high-level economic and trade talks between China and the US, stating that if the US wants to resolve issues through negotiations, it must be prepared to correct its wrong practices and cancel unilateral tariff hikes, and take action. China will not sacrifice its principles to seek any agreement. (Neutral★) Fundamentals: (1) According to SMM statistics, on May 8, domestic mainstream consumption areas' aluminum ingot inventory was 620,000 mt, down 16,000 mt from Tuesday, and up 6,000 mt from before the holiday (April 30). (Bullish★) (2) On May 8, SMM statistics showed that Shanghai Bonded Zone's aluminum inventory was 96,600 mt, Guangdong Bonded Zone's inventory was 19,700 mt, totaling 116,300 mt, up 6,800 mt WoW. (Bearish★) (3) According to SMM statistics, China's aluminum plate/sheet and strip production in April 2025 was 1.186 million mt, with an operating rate of 67.23%, down 2.31 percentage points MoM; aluminum foil production was 450,200 mt, with an operating rate of 70.52%, down 6.05 percentage points MoM. (Bearish★) Primary aluminum market: Yesterday, SHFE aluminum opened in the morning, continuing the low level of around 19,400 yuan/mt from the night session, with downstream buying the dip being active, and social inventory destocking stimulating a rebound in the futures market. The closing price in the first trading session returned to 19,630 yuan/mt. In the spot market, price declines stimulated downstream buying sentiment, with discounts narrowing in east China and Gongyi markets. Specifically, trading sentiment in east China was good yesterday, with early inquiries reaching the average price in the east China market, and suppliers' sentiment to stand firm on quotes strengthened, with transactions concentrated at SMM +10 yuan/mt, and some brands at SMM +20 yuan/mt. Yesterday, SMM A00 aluminum was quoted at 19,620 yuan/mt, up 10 yuan/mt from the previous trading day, at a discount of 10 yuan/mt to the 05 contract, narrowing by 10 yuan/mt from the previous trading day. In the central China market, supply was tight, with some hedging positions standing firm on premiums, and the futures market declined, with transactions in the central China market concentrated at SMM central China +20, +30. SMM central China A00 recorded 19,600 yuan/mt against the SHFE 2505 contract, up 40 yuan/mt from the previous trading day, with the Henan-Shanghai price difference at -20 yuan/mt, narrowing by 30 yuan/mt from the previous trading day, at a discount of 30 yuan/mt to the 2505 contract. Secondary aluminum raw materials: Yesterday, spot primary aluminum rose by 10 yuan/mt from the previous trading day, with SMM A00 spot closing at 19,620 yuan/mt. The overall price of aluminum scrap remained unchanged, and the operating rate of the secondary aluminum industry declined after the Labour Day holiday, with downstream processing enterprises' orders being weak, and purchases mainly for rigid demand. Yesterday, baled UBC was quoted at 14,800-15,400 yuan/mt (excluding tax), and shredded aluminum tense scrap was quoted at 15,650-17,150 yuan/mt (excluding tax). By region, prices in Hunan, Jiangxi, Foshan, and Hubei remained unchanged, while prices in other regions such as Shanghai, Jiangsu, and Henan followed A00 with slight adjustments, with price adjustments ranging from 10-30 yuan/mt. By product, shredded aluminum tense scrap, wheel hub removed from vehicle, bare bright aluminum wire, and shredded wrought aluminum alloy scrap prices remained unchanged from yesterday. In the short term, the aluminum scrap market is likely to hover at highs, but if primary aluminum experiences strong fluctuations due to macro factors (such as US Fed policy, geopolitical conflicts), or if domestic secondary aluminum enterprises collectively cut production, aluminum scrap prices may face periodic pressure. Secondary aluminum alloy: Yesterday, SMM A00 aluminum price was adjusted up by 10 yuan/mt to 19,620 yuan/mt from the previous trading day, while domestic SMM ADC12 price remained stable in the range of 20,200-20,400 yuan/mt. In the import market, overseas ADC12 was quoted at $2,410-2,440/mt, with the immediate loss of imported ADC12 still around 600 yuan/mt. Yesterday, aluminum prices stabilized after falling, and most secondary aluminum plants resumed stable pricing. Entering May, the downstream of secondary aluminum is transitioning to the off-season, and market transactions are weak. However, due to slightly tight raw material circulation, cost support for prices has strengthened. In the short term, ADC12 prices will remain in the doldrums. Summary: From a macro perspective, during the period, China agreed to engage with the US, but there is no clear result yet, and US Fed's Powell stated that there is no rush to cut interest rates, with overseas macro sentiment being bearish; domestically, three departments issued a package of financial policies to stabilize the market and expectations, and the central bank announced ten policy measures, with the domestic macro bullish sentiment unchanged, and the subsequent impact of policy benefits still needs to be observed. From a fundamental perspective, the sharp pullback in aluminum prices after the holiday stimulated downstream buying sentiment, and domestic aluminum ingot social inventory shifted from buildup to destocking after the holiday, with the inventory buildup inflection point yet to come, providing support for aluminum prices. However, it is worth noting that entering mid-to-late May, the transition between peak and off-seasons, coupled with the end of the PV installation rush and the decline in export orders, the market has a strong expectation of weakening demand, reducing the upward momentum of aluminum prices, and bearish funds entered the market. Overall, domestically, the transmission of macro bullish policies still takes time, while the tariff war has no result yet, and bearish impacts remain; fundamentally, domestic aluminum ingot destocking provides support for aluminum prices, but the subsequent expectation of weakening demand and the weakening cost of aluminum both provide support for bears, with bears entering the market, futures market declining, and under the interweaving of bulls and bears, domestic aluminum prices are expected to fluctuate considerably in the short term. 【The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make decisions cautiously and not use this to replace independent judgment. Any decisions made by clients are not related to SMM.】

【SMM Morning Meeting Summary: Resonance of Favourable Domestic Macro Front Leaves No Reason for Bearish Sentiment on Copper Prices in the Short Term】On May 6, spot #1 copper cathode was quoted at a premium of 250-320 yuan/mt against the SHFE copper 2505 contract for the current month, with an average premium of 285 yuan/mt, up 55 yuan/mt MoM. According to SMM data, copper inventories in the Shanghai area stood at only 89,600 mt yesterday, a decrease of 7,700 mt from the last trading day before the holiday. Amid the ongoing destocking trend, spot premiums for SHFE copper are expected to remain firm. However, attention should be paid to the impact of price spread changes between futures contracts as the contract rollover approaches...