In response to the auto tariff threats made by US President Trump, European Commission President von der Leyen stated that the EU was prepared for "all scenarios." Previously, Trump had threatened to raise tariffs on EU cars exported to the US from 15% to 25%.

[SMM Steel] UK Steel warned that Britain’s steel industry still relies heavily on imports, with domestic producers supplying only around 30% of local demand, far below levels seen in the EU and US. The association expressed concern that tighter EU quotas could hurt British exports, as around 80% of UK steel exports are shipped to the EU market. UK Steel also criticized growing preference for imported “green steel” produced via electric arc furnaces (EAF), warning that this trend could undermine investment in domestic steel decarbonization. The UK government plans to cut steel import quotas by 60% from July 1 and raise over-quota tariffs from 25% to 50%.

[SMM Steel] The American Iron and Steel Institute (AISI) urged the USTR to impose cumulative tariffs under the Section 301 investigation targeting economies linked to global steel overcapacity. AISI highlighted record Chinese steel exports of 131 million mt in 2025 and rising shipments from India, Indonesia, South Korea, Japan, and Mexico. The institute argued that subsidized exports and redirected trade flows are pressuring the US steel market. If approved, additional Section 301 tariffs could be added on top of existing Section 232 duties, potentially lifting total US steel tariffs on some countries to 60-75%.

The US Court of International Trade released a ruling on the 7th, stating that the legal basis for the 10% global import tariff policy was invalid.

[SMM Lead Morning Meeting Minutes: Geopolitical Tensions Resurface Outside China, Lead Prices to Give Back Some Gains] Tensions rise again in the Strait of Hormuz: Iran accused the U.S. of violating the ceasefire by launching airstrikes on Iranian coastal areas and oil tankers. Geopolitical events outside China resurfaced, the macro situation became tense, and non-ferrous metals largely pulled back. China's lead fundamentals underperformed...

On May 1, 2026, the U.S. announced it would hike tariffs on EU-made cars and trucks to 25% this week, citing the EU’s failure to uphold the August 2025 trade agreement. The move is widely seen as a retaliation against the EU's proposed 50% MFN tariffs on steel imports. Amidst this escalating friction, major European stainless steel producers are capitalizing on the protectionist wave, projecting a doubling of earnings by 2028. This outlook reflects a strategic bet on surging regional prices and structural supply shortages as EU trade defense measures and CBAM reshape the industrial landscape.

[Trump Raises Tariffs on EU Cars Exported to US to 25%] Recently, Trump announced on social media: "Since the EU has not complied with the trade agreement fully reached between both sides, starting next week, I will raise tariffs on EU passenger cars and trucks exported to the US, with the rate increasing to 25%." However, Trump noted that the tariffs would not apply to cars produced in factories on US soil.

Starting from the new all-time high of USD 5,602 on January 29, the gold price has now been in a correction phase for over three months, characterized so far by two sharp downward waves, two recovery waves, and most recently by another downward wave since mid-April.

SMM News, May 6: According to SMM data, the average all-in tax-included cost of the domestic primary aluminum industry in April 2026 rose by 1.5% month-on-month and fell by 0.6% year-on-year, mainly due to a mild increase in prices of raw and auxiliary materials during the period. In April, the supply gap of primary aluminum overseas pushed up LME aluminum prices. However, high domestic inventory put strong downward pressure on aluminum price upside. The monthly average price of SMM A00 spot aluminum (March 26 - April 25) edged up only 1.0% month-on-month. The profit margin of primary aluminum narrowed slightly by RMB 12 per ton to RMB 8,303 per ton, with the average profit surging 125.1% year-on-year. Calculated based on the monthly average price, 100% of the operational primary aluminum capacity in the domestic market remained profitable in April. Breakdown of Cost Components Alumina price dipped intra-month but monthly average climbed month-on-month SMM data showed that the monthly average SMM alumina index stood at RMB 2,736 per ton in the statistical period of March 26 to April 25, up 1.9% month-on-month. The overall operational alumina capacity stayed stable during the month, and prices bottomed out and rebounded. Driven by market rumors over the bauxite quota policy in Guinea, bullish market sentiment picked up moderately. Nevertheless, the relatively high price at the start of the month lifted the overall monthly average. Entering May, with newly commissioned capacity ramping up steadily, alumina output is expected to increase. Meanwhile, continuous inflows of imported alumina into the domestic market will further ease spot alumina supply. Given the pending clarification of Guinea’s bauxite policy, supply tightening may trigger a minor price rebound. Alumina raw material costs are expected to remain in a consolidating trend in April. Rising costs drive up prices of auxiliary materials Geopolitical conflicts in the Middle East pushed up international crude oil prices in April. Higher cost levels kept petroleum coke prices on an upward track, underpinning higher prebaked anode prices. Aluminum fluoride prices also moved higher in April amid rising raw material costs. Auxiliary material prices will maintain an upward trend in May, driving a further rise in the auxiliary material cost of primary aluminum and lifting the overall cost center slightly. Power prices stabilize, hydropower costs expected to drop entering wet season Power prices remained generally steady in April. As the market gradually transitions from the normal water period to the wet season starting in May, hydropower tariffs in some regions are projected to edge down, leading to a mild decline in the power cost of primary aluminum production. Overall, the weighted average all-in tax-included cost of the domestic primary aluminum industry edged higher in April 2026. The primary aluminum cost is expected to keep rising moderately month-on-month in May, with the average level projected at around RMB 16,200 - 16,600 per ton.

The Netherlands Authority for Consumers and Markets (ACM) has announced plans to introduce a grid fee for large-scale electricity producers, including solar power plants. The tariff is expected to take effect no earlier than January 2032, requiring producers to contribute to grid maintenance and expansion costs to promote more efficient network utilization. ACM stated that the fee will be phased in gradually and will be closely aligned with the tariff structure in Germany, the Dutch energy market’s largest trading partner.