SMM News, May 27: Metals market: As of the midday close, most domestic base metals rose, while SHFE copper edged down. SHFE aluminum rose 0.8%. SHFE lead rose 0.33%, SHFE zinc fell 0.72%. SHFE tin rose 0.63%. SHFE nickel rose 1.91%. In addition, the most-traded casting aluminum futures rose 0.52%, the most-traded alumina contract rose 0.96%. The most-traded lithium carbonate contract fell 1.09%. The most-traded silicon metal contract rose 0.47%. The most-traded polysilicon futures contract fell 2.17%. Ferrous metals mostly fell. Iron ore fell 0.19%, rebar fell 0.69%, hot-rolled coil fell 0.44%, and stainless steel rose 1.49%. Coking coal and coke: the most-traded coking coal contract fell 1.48%, and the most-traded coke contract fell 1.77%. Overseas base metals, as of 11:38, LME metals rose across the board. LME copper rose 0.6%. LME aluminum rose 0.39%. LME lead rose 0.05%. LME zinc rose 0.4%. LME tin rose 1.24%. LME nickel rose 0.32%. Precious metals, as of 11:38, COMEX gold rose 0.08%, COMEX silver rose 0.63%. Domestic precious metals: the most-traded SHFE gold contract fell 1.05%, the most-traded SHFE silver contract fell 0.73%. In addition, as of the midday close, the most-traded platinum futures contract fell 1.15%, and the most-traded palladium futures contract fell 0.98%. As of the midday close, the most-traded Europe containerized freight index contract rose 0.77%, closing at 2,949 points. As of 11:38 on May 27, midday futures quotes for selected contracts: Spot Cargo and Fundamentals Alumina: SMM statistics show that the scale of alumina projects under construction and under planning in Guinea has exceeded... Macro Front China: [NBS: From January to April, profits of China's above-scale industrial enterprises rose 18.2%; non-ferrous metals sector profits surged 117.8%] NBS data showed that from January to April, total profits of China's above-scale industrial enterprises reached 2.44 trillion yuan, up 18.2% YoY. From January to April, the mining sector posted profits of 361.84 billion yuan, up 26.0% YoY; the manufacturing sector posted profits of 1.80 trillion yuan, up 20.4%; and the electricity, heat, gas, and water production and supply sector posted profits of 272.01 billion yuan, down 1.9%. From January to April, profitability of major industries was as follows: non-ferrous metals smelting and rolling processing (up 1.2x YoY), computer, communications, and other electronic equipment manufacturing (up 1.1x), chemical raw materials and chemical products manufacturing (up 73.4%), coal mining and washing (up 21.0%), textile (up 11.2%), petroleum and natural gas extraction (up 8.1%), petroleum, coal, and other fuel processing (turned from loss to profit), general equipment manufacturing (down 0.6%), electricity and heat production and supply (down 2.5%), special equipment manufacturing (down 7.2%), electrical machinery and equipment manufacturing (down 11.4%), agricultural and sideline food processing (down 11.8%), automobile manufacturing (down 16.8%), non-metallic minerals products (down 50.7%), and ferrous metals smelting and rolling processing (down 51.5%). [PBOC Conducts 177.6 Billion Yuan in Open Market Reverse Repo Operations with Net Injection of 127.6 Billion Yuan in a Single Day] The PBOC conducted 177.6 billion yuan in 7-day reverse repo operations in the open market at an operation rate of 1.40%, unchanged from the previous day. 50 billion yuan in reverse repos matured today. US Dollar: As of 11:38, the US dollar index fell 0.05% to 99.1. According to Nikkei, Fed's Kashkari stated that the US Fed may implement a "series" of interest rate hikes in response to inflation concerns triggered by the Middle East situation. During the late-April FOMC meeting, the US Fed kept interest rates unchanged. Kashkari and two other officials dissented against the decision to include language in the Fed's statement hinting at future monetary easing. In a written interview, Kashkari said: "I think the next rate adjustment could be an interest rate cut, or it could be a rate hike." He used this to express his differing views. Kashkari said the outcome would depend on inflation trends, which depend on whether the Strait of Hormuz would reopen soon or remain effectively closed due to further damage to infrastructure in the region, the latter of which would exacerbate the global energy shortage. Kashkari said the concern was that long-term inflation expectations of enterprises and households "could become unanchored." He said the FOMC "may well need to respond forcefully," and rate hikes, or even a series of rate hikes, could be necessary measures. According to CME "FedWatch": the probability of the US Fed keeping rates unchanged through June was 99.2%, with a 0.8% probability of a cumulative 25-basis-point interest rate cut. The probability of the US Fed keeping rates unchanged through July was 88.6%, with an 11.3% probability of a cumulative 25-basis-point rate hike and a 0% probability of a cumulative 25-basis-point interest rate cut. (Jin10 Data) A CITIC Securities research report noted that the resilience of the global economy is being tested by the Middle East conflict, while a glimmer of hope for the resumption of navigation through the Strait of Hormuz has emerged. The US economy is likely to continue growing mildly but unevenly this year, the pace of the EU's weak recovery is being delayed, and Japan's private-sector demand is inevitably subject to disruptions from energy shortages. High oil prices are already pushing up global inflation, with headline inflation rates in Europe and the US likely to fluctuate at highs this year, while Japan's headline inflation rate may continue its mild performance. The US Fed may not cut interest rates at all this year, while potential rate hikes by the European and Japanese central banks are imminent, and the "unrestrained" fiscal stances of Japanese and European political circles could constitute a source of market risk this year. We maintain our view that US equities will outperform US Treasuries and the US dollar index will find support, while gold prices are expected to break out of their current range as tail risks to inflation dissipate. Other currencies: The Reserve Bank of New Zealand (RBNZ) kept rates unchanged for the third consecutive meeting, opting to continue observing the impact of the global energy shock on domestic consumption and medium-term inflation. The RBNZ's Monetary Policy Committee on Wednesday held the Official Cash Rate (OCR) at 2.25%, in line with market expectations. The RBNZ's latest projections show a rising likelihood of at least two 25bp rate hikes before year-end. In its post-meeting statement, the RBNZ said: "Taken together, the OCR will likely need to be raised sooner and by more than projected in the February Monetary Policy Statement." "The pace of hikes will depend on the relative impact of persistent wage and pricing behavior versus weakening economic activity on medium-term inflation pressures." Following the statement, NZD/USD rose. (Jin10 Data) Bank of Japan (BoJ) Governor Ueda Kazuo said vigilance is needed regarding the impact of surging oil prices on underlying inflation trends, but did not clearly signal how this factor would influence next month's policy meeting outcome. Ueda said on Wednesday: "Japan's experience shows that oil price shocks are never just oil price shocks; they actually test the entire inflation mechanism." Reviewing the impact of oil crises since the 1970s, he noted: "We are in fact experiencing the fifth oil price shock." "If a temporary shock alters wages, inflation expectations, and corporate pricing behavior, it may evolve into persistent inflation." Ueda did not directly signal the future policy path, but as his remarks reflected concerns over the impact of high oil prices, markets may further strengthen speculation about the prospect of a rate hike at the BoJ's June meeting. Overnight swap market pricing shows traders currently assign roughly a 75% probability to a 25bp rate hike by the BoJ next month. (Jin10 Data) Australia's April core inflation rate remained above the upper bound of the Reserve Bank of Australia's (RBA) target range, further reinforcing market expectations that the RBA will maintain its hawkish stance after consecutive rate hikes this year. Data on Wednesday showed the closely watched core inflation gauge—the annual trimmed mean inflation rate excluding volatile items—rose 3.4% YoY, in line with economists' expectations. The RBA targets keeping inflation near the midpoint of its 2%-3% target band. Interest rate swap markets currently price the probability of another rate hike in August at around 50%, down from 64% before the data release. Under the dual pressure of high borrowing costs and surging fuel prices driven by the Iran war, the Australian economy is beginning to show signs of weakness. The unemployment rate in April rose to a four-and-a-half-year high, while approximately one-third of enterprises reported declining revenue over the past four weeks, and half reported rising operating costs. The market widely expects that after raising rates at all three meetings earlier this year, the Reserve Bank of Australia will hold the cash rate unchanged at 4.35% in June. Sue-Ellen Luke, head of price statistics at the Australian Bureau of Statistics, said: "Automotive fuel prices currently remain 23.5% higher than before the outbreak of the Middle East conflict. The impact of rising oil prices is also reflected in goods and services with higher transportation and logistics costs." (Jin10 Data) Data: Today will see the release of the RBNZ interest rate decision as of May 27, Switzerland's May ZEW Investor Confidence Index, US weekly ADP employment change for the week ending May 9, and the US May Richmond Fed Manufacturing Index, among other data. In addition, attention should be paid to: Bank of Japan Governor Ueda Kazuo delivering a speech at a monetary policy conference hosted by the BOJ; the RBNZ releasing its interest rate decision and monetary policy statement; RBNZ Governor Breman holding a monetary policy press conference. Crude oil: As of 11:38, both benchmarks declined, with WTI down 2.03% and Brent down 1.75%. Oil prices fell in Asian early trading as traders weighed the prospects of a US-Iran deal. Front-month Brent crude declined. Despite a resurgence in hostilities, hopes remain for an agreement to reopen the Strait of Hormuz. Tehran signaled that the attacks would not derail negotiations, while US Secretary of State Rubio said it would take a few days to finalise a potential deal. Uncertainty remains high. Kieran Tomkins of Capital Economics noted that while crude oil options data suggest investors expect prices to pull back over the next three months, their conviction is unusually low. He said options indicate investors see a swift resumption of supply through the strait as the most likely outcome, but their implied expectations suggest a 37% probability that oil prices will exceed $100 per barrel in three months. (Zhitong Finance) On the evening of May 26 local time, the Public Relations Department of the Islamic Revolutionary Guard Corps (IRGC) Navy announced that over the past 24 hours, 25 vessels including oil tankers, container ships, and other commercial vessels passed through the Strait of Hormuz with permission, under the coordination and security guarantee of the IRGC Navy. Meanwhile, the IRGC Navy stated that it is exercising "effective and authoritative" control over the Strait of Hormuz, and any act of aggression will be met with a severe response. (CCTV News) (Jin10 Data APP) Spot market overview: ► ► ► ► ► ► ► ► ► ► ► ► ►

SMM May 23: Metals market: Last Friday's overnight domestic market saw base metals mostly rise. SHFE copper rose 0.58%. SHFE aluminum fell 0.14%, SHFE lead rose 0.3%. SHFE zinc fell 0.16%. SHFE tin rose 1.09%. SHFE nickel rose 0.49%. In addition, the most-traded alumina futures contract fell 0.77%, and the most-traded foundry aluminum futures contract fell 0.06%. Last Friday's overnight ferrous metals mostly fell. Iron ore was flat at 792.5 yuan/mt, stainless steel rose 0.34%, rebar edged down 0.09%, and hot-rolled coil fell 0.15%. Coking coal and coke: coking coal continued to fall for the third consecutive trading day, down 1.45%, and coke fell 0.95%. Last Friday's overnight overseas metals market saw LME base metals rise across the board. LME copper rose 0.18%. LME aluminum rose 0.45%, LME lead rose 0.4%. LME zinc edged up 0.06%. LME tin rose 1.16%. LME nickel rose 0.67%. Last Friday's overnight precious metals : COMEX gold fell 0.7%, posting a second consecutive weekly decline with a 1.13% weekly drop; COMEX silver fell 1.06%, falling for two consecutive weeks with a 2.1% weekly drop. Last Friday's overnight SHFE gold most-traded contract fell 0.1%, posting a second consecutive weekly decline with a 2.13% weekly drop; SHFE silver most-traded contract rose 0.51%, but SHFE silver fell for two consecutive weeks with a 7.81% weekly drop. As of 8:31 am on May 23, last Friday's overnight closing prices: Macro front China: [PBOC: 600 billion yuan MLF operation to be conducted on May 25] PBOC: To maintain ample liquidity in the banking system, on May 25, 2026, the People's Bank of China will conduct a 600 billion yuan MLF operation with a fixed quantity, interest rate tender, and multiple-price winning method, with a maturity of 1 year. [CSRC: Crackdown on illegal cross-border securities business; investors' property safety unaffected by the rectification] Xinhua News Agency reported that recently, with the approval of the State Council, the CSRC and seven other departments jointly issued the "Implementation Plan for Comprehensive Rectification of Illegal Cross-border Securities, Futures, and Fund Business Activities." Regarding this rectification, all parties are highly concerned about how the legitimate rights and interests of existing investors will be protected. In this regard, the plan emphasized that investors' property safety will not be affected by the rectification. A CSRC official said the plan specified numerous measures to safeguard the legitimate rights and interests of existing investors. For example, a 2-year concentrated rectification period will be set to phase out relevant domestic services of overseas institutions. Overseas institutions are required to properly communicate with investors affected by rectification measures in China and arrange account disposal to ensure client property safety. [Hong Kong SFC: Enhanced measures to address forged documents and money laundering risks and raise account opening standards] The Hong Kong SFC issued a circular on May 22, setting out the monitoring measures that should be implemented when opening accounts and maintaining customer relationships. The circular was issued following the SFC's review of account opening practices at 12 securities brokerages. The review identified multiple significant deficiencies, including inadequate due diligence on account opening documents, acceptance of suspicious or forged documents during the account opening process, and weaknesses in managing cross-border agency relationships with ex-China intermediaries. (Wallstreetcn) US dollar: Last Friday, the overnight US dollar index rose 0.12% to 99.32. On a weekly basis, the US dollar index posted its second consecutive weekly gain, up 0.04% for the week. The 17th Fed Chairman Warsh was sworn in at the White House on Friday. Warsh stated: "The Fed's mission is to promote price stability and full employment." He said, "When these goals are pursued with wisdom and clarity, independence and resolve, inflation can be lower, economic growth can be stronger, real take-home wages can be higher, America can be more prosperous, and just as importantly, America's standing in the world can be more secure." He added: "To fulfill this mission, I will lead a reform-oriented Fed that learns from past successes and mistakes, breaking free from static frameworks and models while adhering to clear standards of integrity and performance." (Jin10 Data) Fed Governor Waller's hawkish remarks put US Treasury prices under pressure, with money markets fully pricing in a 25-basis-point interest rate hike in 2026. The most significant policy signal on Friday came from Fed Governor Waller. On Friday local time, Fed Governor Waller stated that as the energy shock from the Iran war pushes up prices, he supports making it clear that the Fed's next rate move is as likely to be a hike as an interest rate cut. Waller said his current stance is to remain patient and keep rates unchanged until the impact of the war becomes clearer, but he warned on Friday that he does not rule out the possibility of future rate hikes if inflation does not begin to slow down soon. Waller's remarks were released almost simultaneously with the swearing-in of new Fed Chairman Warsh. The interest rate environment Warsh currently faces is notably more hawkish than the Fed's internal dot plot expectations. (Wall Street CN) "Fed whisperer" Nick Timiraos noted that there were several key moments during Kevin Warsh's swearing-in ceremony at the White House: ① Trump asked Warsh to be "completely independent." Trump said, "(I hope he) doesn't look at me, doesn't look at anybody." ② Just two minutes later, Trump offered some "suggestions" indicating the economic direction he hoped to see: "Strong economic growth doesn't need to be cooled down," "Economic growth does not mean inflation," and "I want the economy to boom to unprecedented levels, because there is indeed some debt to deal with." ③ Trump hinted that the US Fed's decision-making body would "converge." He said other Fed policymakers "will make their own decisions, but they will listen to Kevin throughout," even those "whose positions are slightly different." ④ Warsh referenced Greenspan, not Bernanke. Warsh recalled the historical scene of Greenspan being sworn in at the White House in 1987, and pledged to "begin work with abundant energy and a sense of mission, just as Chairman Greenspan did." He made no mention of former Chairman Bernanke, with whom he had worked for five years during his previous tenure as a governor. (Jin10 Data) In addition, affected by the Iran war, the US consumer confidence index in May fell to a historic low, and long-term inflation expectations also deteriorated significantly. Data showed that the University of Michigan's final reading of the May consumer confidence index dropped to 44.8, with consumers expecting prices to rise at an annualized rate of 3.9% over the next five to ten years, up from 3.5% in April and hitting a seven-month high. They also expected prices to rise 4.8% over the next year. Gasoline prices continued to hover near their highest levels since 2022, exacerbating Americans' concerns about rising living costs and the failure to reach a deal to end the war. The impact of inflation on household budgets, particularly for low-income consumers, poses risks to the future consumption outlook. Joanne Hsu, the survey director, stated: "Cost of living concerns remain the top issue on people's minds, with 57% of respondents spontaneously citing that high prices are eroding their personal finances, up from 50% last month." She stated: "The key point is that consumers appear worried that inflation will not only spread beyond fuel prices to other areas, but that this upward trend could persist well into the future." (Jin10 Data) Regarding other currencies: ECB President Lagarde stated that despite the deepening impact of the Iran conflict, long-term inflation expectations remained broadly in line with the 2% target. Although the energy crisis is pushing up inflation and dragging down the economy, long-term inflation expectations have remained well-anchored overall. The impact of this conflict on medium-term inflation and economic activity will depend on the intensity and duration of the energy price shock, as well as the scale of its indirect transmission effects. (Wall Street Journal) Bank of Japan Governor Ueda Kazuo said that Prime Minister Takaichi Sanae told him during their meeting on Friday that she hoped the BOJ would adopt appropriate policies, taking into account the government's price measures. Ueda Kazuo told reporters after the meeting with Takaichi Sanae at the Prime Minister's residence in Tokyo that it was a routine meeting between the two and that no specific details of monetary policy were discussed. (Wall Street Journal) On the macro front: Data to be released this week include the UK May CBI retail sales balance, US March FHFA house price index MoM, US March S&P/CS 20-city non-seasonally adjusted house price index YoY, US May Conference Board consumer confidence index, US May Dallas Fed business activity index, Australia April non-seasonally adjusted CPI YoY, New Zealand RBNZ interest rate decision through May 27, Switzerland May ZEW investor confidence index, US weekly ADP employment change for the week ending May 9, US May Richmond Fed manufacturing index, Eurozone May industrial confidence index, Eurozone May economic sentiment index, Canada Q1 current account, US initial jobless claims for the week ending May 23, US April core PCE price index YoY, US April personal spending MoM, US Q1 real GDP annualized QoQ revised, US April core PCE price index MoM, US April durable goods orders MoM, US April new home sales annualized, Japan April unemployment rate, France May CPI MoM preliminary, France Q1 GDP YoY final, Germany May seasonally adjusted unemployment change, Germany May seasonally adjusted unemployment rate, Germany May CPI MoM preliminary, Canada March GDP MoM, US May Chicago PMI, and China May official manufacturing PMI. In addition, other events to watch this week include: 500 billion yuan in 1-year medium-term lending facility (MLF) and 1 billion yuan in 7-day reverse repo maturing today; BOJ Governor Ueda Kazuo delivering a speech at a monetary policy conference hosted by the BOJ; the RBNZ releasing its interest rate decision and monetary policy statement; RBNZ Governor Breeman holding a monetary policy press conference; the ECB publishing the minutes of its April monetary policy meeting; permanent FOMC voter and New York Fed President Williams delivering a keynote speech at a conference co-organized by the Central Bank of Iceland; 2028 FOMC voter and St. Louis Fed President Musalem delivering a speech; Bank of England Governor Bailey delivering a speech; 2028 FOMC voter and Kansas City Fed President Schmid delivering a speech; and US Fed Governor Bowman delivering a speech. In addition, it is worth noting that due to the Memorial Day holiday, the US stock market will be closed for one day on May 25 (Monday). Trading of precious metals and WTI crude oil futures contracts under CME will end early at 02:30 Beijing time on May 26, and trading of US equity and Treasury futures contracts will end early at 01:00 Beijing time on May 26. Due to the Buddha's Birthday holiday, the Hong Kong stock market will be closed for one day on May 25 (Monday), with Southbound and Northbound trading suspended. The South Korean stock market will also be closed for one day on the same date. In addition, due to the Spring Bank Holiday, the UK stock market will be closed for one day on May 25 (Monday). Trading of Brent crude oil futures contracts under ICE will end early at 01:30 Beijing time on May 26. Investors are advised to take note. (Jin10 Data) The overseas market exchange closure schedule is as follows (all in Beijing time): Crude oil: Both oil futures rose during the overnight session last Friday, with WTI up 0.67% and Brent up 1.62%. On a weekly basis, WTI futures declined 3.98% for the week, and Brent futures declined 4.59% for the week. Since the ceasefire agreement was reached in April this year, US-Iran negotiations have remained deadlocked, with no comprehensive agreement to end the conflict in sight. Although a draft reportedly "close to being finalized" has been emerging, four core obstacles still stand in the way of lasting peace. According to Bloomberg, the Strait of Hormuz, nuclear issues, the Lebanon conflict, and sanctions currently constitute the four core points of divergence in the negotiations. For investors, this war has plunged global energy markets into severe turbulence, and any progress or breakdown in negotiations will have an impact on commodity prices. (Wallstreetcn) Iranian Foreign Ministry spokesperson Baghaei stated on May 22 that it was premature to say a US-Iran agreement was close to being reached, as significant differences remained between the two sides. According to Iranian media reports on May 22, Baghaei, commenting on the visit of senior Pakistani officials to Tehran, said it indicated that the current situation had entered a "turning point or decisive stage." He mentioned that Pakistan's Chief of Army Staff Munir had visited Tehran and that related communications were still ongoing. When asked whether this meant a change in the negotiation process, Baghaei said it could not be said that a US-Iran agreement was close to being reached, as there were serious and wide-ranging differences between the US and Iran, and "diplomacy is a time-consuming process." Baghaei added that one should not expect to see results within weeks or months through several rounds of back-and-forth consultations. He emphasized that diplomatic negotiations are inherently a long-term process, and both sides are utilizing various opportunities to convey their respective positions. (Xinhua) Baker Hughes data showed that US drilling companies increased the number of oil and natural gas rigs for the fifth consecutive week. The total US oil rig count for the week ending May 22 was 425, compared to the previous reading of 415. In addition, Kazakhstan's national oil and gas company reported that Q1 oil production fell 12% YoY to 5.6 million mt. (Jin10 Data) According to Bloomberg, affected by the Iran war, the national average gasoline price in the US has surpassed $4.5 per gallon, with California exceeding $6. Despite high prices, consumers have not significantly reduced fuel purchases. For most Americans, driving to work and picking up children are daily necessities. Gasoline spending is nearly impossible to cut, and consumers can only reduce discretionary spending to balance their budgets. Philadelphia resident Avarisse Crawford said she has cut entertainment expenses, replacing steak dinners and bar outings with free park activities. The ongoing Middle East tensions continue to push oil prices higher. The effective blockade of the Strait of Hormuz has hindered global crude oil transportation, and US gasoline inventory has fallen to its lowest level for the same period since 2014. Morgan Stanley expects it to hit a seasonal historic low by the end of August. Facing persistently climbing oil prices, the Trump administration has successively released strategic petroleum reserves, waived the Jones Act, and discussed implementing a federal gasoline tax holiday, but the effects remain unclear. As the Memorial Day weekend kicks off the summer travel season, upward demand pressure is expected to further strain already tight inventories. (Wallstreetcn) Recommended Reading:

SMM Morning Meeting Summary: Overnight, LME copper opened at $13,477/mt, dipped to a low of $13,436/mt in early trading, then the price center gradually shifted upward to reach $13,625/mt, and finally moved sideways at high levels to close at $13,590/mt, up 0.34%, with trading volume at 24,000 lots and open interest at 283,000 lots, an increase of 2,099 lots from the previous trading day, indicating bulls adding positions. Overnight, the most-traded SHFE copper 2606 contract opened at 104,480 yuan/mt, touched a high of 104,840 yuan/mt in early trading, then the price center shifted slightly lower to a low of 104,440 yuan/mt, and finally moved sideways to close at 104,590 yuan/mt, up 0.28%, with trading volume at 30,000 lots and open interest at 154,000 lots, a decrease of 3,110 lots from the previous trading day, indicating bears reducing positions.

In April 2026, magnesium prices fell by a cumulative 800 yuan/mt within the month. As of April 30, mainstream quotations for 99.90% magnesium ingot in the Fugu and Shenmu areas remained at 16,600 yuan/mt. In April 2026, domestic magnesium ingot prices continued to decline overall. Supply side, the earlier recovery in magnesium prices drove profit restoration across the industry, and under profit incentives, major magnesium producers actively raised operating rates and increased magnesium ingot production, resulting in a notable increase in market supply and growing overall supply pressure. Demand side, downstream producers in China exhibited strong fear of high prices, mostly making just-in-time procurement, with the overall procurement pace slowing down significantly. Meanwhile, export trade was affected by stricter customs inspections, with order clearance and shipment disrupted, leading to a short-term pullback in exports. Insufficient support from both domestic and external demand dragged April magnesium prices into a sustained decline. Primary magnesium production rose 3.63% MoM in April. April domestic primary magnesium production increased notably, mainly because magnesium prices rose steadily from late March and market conditions continued to recover. Rising magnesium prices drove profit restoration at smelters, prompting previously idled or low-load enterprises to resume production under profit incentives, while operating enterprises simultaneously raised their operating loads. Industry operating rates continued to climb, with enterprises collectively ramping up and resuming production, pushing April primary magnesium production to grow steadily. By province, most primary magnesium smelters maintained stable production in April, while some increased output. Provinces with rising primary magnesium production in April were mainly Shaanxi and Xinjiang. Specifically, primary magnesium smelters in the main producing areas saw production increases, with Shaanxi's share of primary magnesium edging up slightly as two primary magnesium smelters resumed production and most operated at full capacity. In April, one primary magnesium smelter in Xinjiang gradually commissioned new capacity, and Xinjiang's share of primary magnesium production edged up. Looking ahead to May, current magnesium prices are approaching the cost lines of primary magnesium smelters in the main producing areas. Some producers plan to halt production for maintenance in May, and primary magnesium production is expected to edge down slightly in May. In April 2026, magnesium alloy production decreased 7.18% MoM. This round of decline in magnesium alloy production was caused by multiple factors on both the supply and demand sides: affected by the continued decline in magnesium ingot prices, the sentiment of rushing to buy amid continuous price rise and holding back amid price downturn spread among downstream players, with die-casting enterprises showing weak order willingness. This was compounded by the cancellation of some magnesium alloy orders by the two-wheeler industry, triggering a chain reaction that further pressured midstream processing orders. Meanwhile, after a fire incident at a die-casting plant, regional environmental protection supervision tightened, constraining production. Multiple factors dragged down magnesium alloy orders. Supply side, some alloy enterprises entered routine maintenance cycles, leading to phased production cuts, and production performance remained weak under multiple pressures. Magnesium alloy production is expected to continue its upward trend in May. Supply side, according to SMM, multiple magnesium alloy smelters raised their operating rates, and some magnesium alloy production lines at smelters that were under maintenance in April resumed production. A newly built magnesium alloy smelter was completed and put into operation, with magnesium alloy supply rising steadily. Demand side, die-casting equipment is being installed successively, and current magnesium alloy die-casting capacity is rising steadily. Moreover, stricter enforcement of the new national standard for two-wheelers may transmit policy-driven momentum upstream to drive a recovery in magnesium alloy orders. Overall, the magnesium alloy market is expected to see robust supply and demand in May, with magnesium alloy production growing steadily. In early to mid-May, operating rates of China's primary magnesium smelters stayed high, with operating rates in major producing areas rising above 80%. Spot supply of magnesium ingots in the market was ample, and overall inventory pressure on smelters was relatively high. After the Labour Day holiday, some magnesium plants urgently needed to collect payments to pay electricity bills, distribute employee wages, and maintain daily operations, proactively offering price concessions to stimulate transactions. However, supported by raw material and production costs, the room for price adjustments by magnesium plants was limited, and the magnesium ingot price range remained at 16,000-16,500 yuan/mt in early to mid-May. In mid to late May, after a prolonged gradual decline in magnesium prices in the earlier period, magnesium prices bottomed out driven by concentrated downstream restocking, but the overall rebound height was limited. Current market supply pressure is relatively high, and magnesium prices lack unilateral upward momentum. Meanwhile, from the perspective of costs and the supply-demand pattern, downside room for magnesium prices has also narrowed. On one hand, primary magnesium smelters are already approaching the break-even line and can hardly withstand significant deep price drops. On the other hand, current temperatures already meet the conditions for magnesium plants to halt production for maintenance. If prices continue to decline further, smelters may collectively halt production for maintenance to contract supply, ease market inventory pressure, and further support magnesium prices.

Samsung Electronics' South Korea union said on Friday that the tech giant had proposed resuming talks without any preconditions. This came days after government-mediated negotiations over wages and bonus packages broke down. The union said it was willing to hold talks after June 7, but maintained its plan to strike starting May 21; the strike could disrupt production operations at the world's largest memory chip maker. Samsung Electronics issued a statement confirming its proposal to hold unconditional talks, but did not immediately provide further comment. The Samsung union had said on Thursday that it would be willing to sit down for negotiations if the company could submit a detailed proposal addressing the union's demands before 01:00 GMT Friday (9 a.m. Beijing time).

SMM May 13 News: Metals market: As of the midday close, base metals in the domestic market generally rose. SHFE copper gained 1.63%. SHFE aluminum rose 0.3%. SHFE lead fell 0.15%. SHFE zinc gained 1.46%. SHFE tin rose 0.08%. SHFE nickel edged down. In addition, the most-traded casting aluminum futures rose 0.15%, the most-traded alumina futures fell 0.71%. The most-traded lithium carbonate futures fell 3.55%. The most-traded silicon metal futures fell 2.74%. The most-traded polysilicon futures fell 0.62%. Ferrous metals mostly fell. Iron ore was flat at 817.5 yuan/mt. Rebar fell 0.7%. Hot-rolled coil fell 0.57%. Stainless steel rose 0.16%. Coking coal and coke: the most-traded coking coal contract fell 2.51%, and the most-traded coke contract fell 1.28%. Overseas base metals, as of 11:41, LME metals rose across the board. LME copper gained 0.6%. LME aluminum rose 0.24%. LME zinc gained 0.4%. LME lead rose 0.3%. LME tin gained 1.29%. LME nickel rose 0.87%. Precious metals, as of 11:41, COMEX gold rose 0.48%, and COMEX silver gained 1.99%. Domestic precious metals: the most-traded SHFE gold contract fell 0.55%, and the most-traded SHFE silver contract rose 1.1%. In addition, as of the midday close, the most-traded platinum futures edged down, and the most-traded palladium futures fell 1.03%. As of the midday close, the most-traded Europe containerized freight index contract rose 3.17%, closing at 2,539.5 points. As of 11:41 on May 13, midday futures quotes for selected contracts: Spot and Fundamentals Copper: Looking ahead to tomorrow, copper prices continue to fluctuate at highs, downstream purchasing sentiment remains subdued, intraday buying and selling sentiment both pulled back, and spot discounts continued to widen. According to SMM, downstream orders continued to decline from the previous day... Macro Front [China-US Economic and Trade Consultations Begin in South Korea] At noon local time on May 13, the economic and trade teams of China and the US began China-US economic and trade consultations at Incheon International Airport in Seoul, South Korea. (Xinhua) Domestic: [PBOC Reverse Repo Operations Achieved Net Withdrawal of 25.5 Billion Yuan on the Day] The PBOC conducted 500 million yuan of 7-day reverse repo operations today. As 26 billion yuan of 7-day reverse repos matured today, a net withdrawal of 25.5 billion yuan was achieved on the day. US dollar: As of 11:41, the US dollar index rose 0.01%, at 98.31. The US CPI rose faster than expected in April, further intensifying concerns about the impact of inflation on the US economy. The Bureau of Labor Statistics reported on Tuesday that, after seasonal adjustment, the overall CPI rose 0.6% MoM and 3.8% YoY. The monthly increase was in line with expectations, but the YoY increase was 0.1 percentage point higher than market expectations. Core CPI, excluding food and energy, rose 0.4% and 2.8% respectively, indicating that although inflation remained well above the US Fed's 2% target, pressure mainly came from non-core areas, especially energy. Energy prices rose 3.8%, once again becoming one of the main drivers of rising inflation; food prices also rose 0.5%. For the full year, energy prices rose 17.9% and food prices rose 3.2%. Gasoline price index was up 28.4% YoY. Although energy, especially gasoline, was the main news focus, inflationary pressures also came from multiple other areas. Housing costs rose 0.6%, tariff-sensitive apparel prices rose 0.6%, airfares rose 2.8% with a YoY increase of 20.7%. Tariffs also appeared to have affected other areas, with household furnishings and related expenditures rising 0.7%. (Jin10 Data) According to the CME "Fed Watch": the probability of the US Fed maintaining rates unchanged through June was 97.1%, with a 2.9% probability of a cumulative 25 basis point interest rate cut. The probability of the US Fed maintaining rates unchanged through July was 96%, with a 3.9% probability of a cumulative 25 basis point interest rate cut. (Jin10 Data) A CITIC Securities research report stated that US April inflation continued to run hot, the spillover effects of the Middle East conflict persisted, and compensatory increases in rent inflation pushed up core readings. High inflation continued to erode the real purchasing power of US households, with low-income households facing stronger cost shocks, and real hourly wages YoY turned negative for the first time in three years. We believe the risk of a second wave of US inflation is relatively small, but high oil prices will constrain the room for inflation to pull back within the year. Under the base case scenario, the US Fed is still expected to cut interest rate by 25bps within the year. US Treasuries are currently more suited for trading opportunities. After the strong earnings season nears its conclusion, US equities should be watched for short-term risks of profit-taking. The US dollar index may remain in the doldrums below 100 rather than on a sustained downtrend. Other currencies: According to a latest estimate by the OECD, the Bank of Japan's benchmark interest rate is expected to reach 2% by the end of 2027. The report noted that, assuming inflation remains around 2%, the current interest rate is still close to the lower bound of the neutral rate range for the economy. The report also recommended that the Bank of Japan should continue to gradually raise interest rates to prevent the economy from overheating. The Bank of Japan previously estimated that Japan's nominal neutral interest rate was between 1.1% and 2.5%, but noted that there was significant uncertainty regarding the specific level. (Jin10 Data) On the macro front: Data to be released today include France's Q1 ILO unemployment rate, France's April CPI MoM final reading, eurozone Q1 GDP YoY revised reading, eurozone Q1 seasonally adjusted employment QoQ final reading, eurozone March industrial output MoM, US April PPI YoY, and US April PPI MoM. In addition, attention should be paid to: Chicago Fed President Goolsbee participating in a Q&A session hosted by a local chamber of commerce; 2028 FOMC voter and Boston Fed President Collins delivering a speech at the Boston Economic Club; Vice Premier He Lifeng leading a delegation to South Korea from May 12–13 for trade consultations with the US side; and US President Trump's state visit to China. Crude oil: As of 11:41, oil prices in both markets fell, with WTI down 1.03% and Brent down 1.06%. Iran presented its "entry ticket" for nuclear talks with the US, including unfreezing assets and recognizing sovereignty over the Strait of Hormuz. Trump stated: "When negotiating with Iran, I don't consider the financial situation of the American people. I don't consider anyone." Meanwhile, the US Secretary of Defense said the Iran ceasefire agreement remained in effect. (Jin10 Data) American Petroleum Institute (API) data showed that US crude oil inventory fell for the fourth consecutive week last week, while gasoline inventory increased. US API crude oil inventory for the week ending May 8 was -2.188 million barrels, versus expectations of -1.654 million barrels and a prior reading of -8.141 million barrels. US API gasoline inventory for the week ending May 8 was 502,000 barrels, versus expectations of -2.549 million barrels and a prior reading of -6.107 million barrels. The EIA Short-Term Energy Outlook report indicated that if the Strait of Hormuz were closed through the end of June, crude oil prices would be $20/barrel higher than the current forecast, which assumes reopening by the end of May. (Jin10 Data) Spot Market Overview: ► ► ► ► ► ► ► ► ►

SMM April 21 News: Metals market: As of the midday close, domestic market base metals mostly fell. SHFE copper dropped 0.64%. SHFE aluminum fell 1.45%. SHFE lead rose 0.33%, SHFE zinc fell 0.76%. SHFE tin dropped 0.31%, SHFE nickel fell 0.69%. In addition, the most-traded casting aluminum futures fell 1.49%, the most-traded alumina futures rose 2.38%. The most-traded lithium carbonate futures fell 3.86%. The most-traded silicon metal futures fell 0.63%. The most-traded polysilicon futures rose 2.19%. Ferrous metals mostly rose. Iron ore gained 0.64%, rebar rose 0.76%, hot-rolled coil rose 0.87%, stainless steel fell 0.53%. Coking coal and coke: the most-traded coking coal contract rose 1.49%, the most-traded coke contract rose 1.96%. Overseas market base metals, as of 11:40, LME metals fell across the board. LME copper dropped 0.2%. LME aluminum fell 0.89%, LME lead fell 0.1%, LME zinc fell 0.78%. LME tin dropped 0.68%. LME nickel fell 0.6%. Precious metals, as of 11:40, COMEX gold fell 1.32%, COMEX silver dropped 0.21%. Domestic market precious metals: the most-traded SHFE gold futures fell 0.76%, the most-traded SHFE silver futures fell 2.7%. In addition, as of the midday close, the most-traded platinum futures fell 1.18%, the most-traded palladium futures fell 0.78%. As of the midday close, the most-traded Europe containerized freight index contract edged down 0.01%, closing at 2,114.1 points. As of 11:40 on April 21, midday futures quotes for selected contracts: Spot and Fundamentals Copper: Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a premium of 290 yuan/mt, up 30 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 200 yuan/mt, up 30 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 140 yuan/mt, up 30 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 102,420 yuan/mt, down 460 yuan/mt from the previous trading day; the average price of SX-EW copper was 102,315 yuan/mt, down 460 yuan/mt from the previous trading day. Spot market: Guangdong inventory finally ended its 24-day consecutive decline...... Macro Front China: [Good Start! China's Raw Material Industry Value-Added Output Up 4.6% YoY in Q1] According to a press conference held by the State Council Information Office this morning, China's raw material industry achieved a good start in Q1. Data showed that in Q1, the value-added output of the raw material industry was up 4.6% YoY. Specifically, the petrochemical and chemical industry's value added was up 7.4% YoY, and the non-ferrous metals industry's value added was up 2.6% YoY. Zhang Yunming, Vice Minister of MIIT, stated that in Q1, the cement industry reduced and retired nearly 30 million mt of capacity through volume replacement. Meanwhile, the green building materials industry saw steady revenue growth, with the number of certified green building material products increasing 5% compared to the end of 2025. Innovation achievements in the raw material sector also accelerated, as China's independently developed T1200-grade ultra-high-strength carbon fiber industrial-grade product was launched globally for the first time, and is expected to be extensively applied in strategic emerging industries such as aerospace, low-altitude economy, and humanoid robots. (CCTV News) [MIIT: Fully Activate Innovation Engines, Accelerate Frontier Material Deployment and Key Material Breakthroughs] Zhang Yunming, Vice Minister of MIIT, stated at the State Council Information Office press conference that in Q1, detailed implementation of the new round of work plans for stabilizing growth in ten key industries was carried out, with focused efforts to promote capacity structure optimization and upgrading. The raw materials industry achieved a good start, with more vigorous transformation and a stronger industrial foundation. Going forward, MIIT will thoroughly implement the deployments outlined in the 15th Five-Year Plan, adhere to the combination of "consolidating fundamentals" and "fostering new growth," and strengthen overall planning and policy supply. On one hand, efforts will focus on solidifying the foundation for traditional industry upgrading, promoting optimization of existing capacity and green and safe transformation; on the other hand, innovation engines will be fully activated to accelerate frontier material deployment and key material breakthroughs, providing more solid and reliable material support for developing new quality productive forces and advancing new-type industrialization. (Jin10 Data) [MIIT: Industrial Robot Production Up 33.2% YoY in Q1, Drones, AI Glasses and Other Products Increasingly Diversified] This morning, the State Council Information Office held a press conference to introduce the industrial and information technology development in Q1 2026. In Q1, new technologies such as artificial intelligence accelerated their application in the electronics and consumer goods industries. End-use products such as drones and AI glasses became increasingly diversified, with industrial robot and integrated circuit production up 33.2% and 24.3% YoY, respectively. (CCTV News) [PBOC Achieved Net Injection of 4 Billion Yuan via Reverse Repo Operations Today] The PBOC conducted 5 billion yuan of 7-day reverse repo operations today. As 1 billion yuan of 7-day reverse repos matured today, a net injection of 4 billion yuan was achieved. (Jin10 Data) US dollar: As of 11:40, the US dollar index was up 0.11% at 98.16. The US Congress was set to hold the first confirmation hearing for Fed Chairman nominee Warsh on Tuesday local time. Warsh was to pledge to lawmakers his strict independence on interest rate matters. According to opening remarks obtained in advance by Politico, Warsh stated that interest rate decisions must be strictly independent of political considerations, and that monetary policy should not be used as a tool for short-term political objectives. He also emphasized that the US Fed's credibility stems from institutional constraints and policy discipline. Warsh said the central bank should listen to diverse opinions, and that politicians expressing views on interest rates does not pose a real threat. On the contrary, it is the US Fed's own discipline and rigor that sustains its independent status. He stressed that price stability is the US Fed's talisman and pledged to assume full responsibility for it, "making no excuses and passing no blame." Warsh also warned against the post-crisis expansion of the US Fed's functional boundaries, arguing that it should not extend its reach into fiscal or social policy areas where it lacks statutory authority. The US Senate Banking Committee was to hold a confirmation hearing for Warsh at 10 PM Beijing time on April 21. Fed Chairman nominee Kevin Warsh believes that upcoming productivity growth may give the US Fed room to lower interest rates, provided that higher productivity enables low-inflation economic growth. However, economist Ed Yardeni, who also expects the economy to benefit from technological advances this decade, disagrees that such an outcome would justify lowering interest rates. Yardeni wrote: "While we share Warsh's optimism on productivity, we have fundamentally different views on what this outcome means for monetary policy." Yardeni argues that faster growth will raise the natural rate of interest, or R*, the rate that neither stimulates nor restrains the economy. He wrote: "If the US Fed lowers the federal funds rate below R*, the risk is that it fuels financial speculation and instability." (Jin Shi Data) On other currencies: The exact timing of the Bank of Japan's next rate hike remains uncertain, with significant uncertainty. However, Goldman Sachs analyst Akira Otani said a rate hike in July remains possible. The economist wrote in a research note: "By then, all the data needed to assess the impact of high oil prices on the economy, wages, and prices will be available." The Bank of Japan is likely to keep rates unchanged this month but may lower its economic growth expectations and raise its FY2026 inflation forecast to reflect heightened tensions in the Middle East and rising oil prices. Otani added that the Bank of Japan may consider the uncertainty surrounding this outlook to be high. (Jinshi Data) Data: Today's scheduled releases include US March retail sales MoM, US February business inventories MoM, US March pending home sales index MoM, Germany April ZEW economic sentiment index, UK February three-month ILO unemployment rate, UK March unemployment rate, UK March claimant count, Switzerland March trade balance, and Eurozone April ZEW economic sentiment index. In addition, attention should be paid to the US Senate Banking Committee hearing on Kevin Warsh's nomination as Fed Chairman, and ECB President Lagarde's keynote speech at the 75th anniversary reception of the Association of German Banks. Furthermore, a new round of domestic refined oil price adjustment window will open in China. Crude oil: As of 11:40, oil prices in both markets fell, with WTI down 0.96% and Brent down 0.58%. Signs of resumed negotiations between Iran and the US boosted market sentiment, while international oil prices slid further on expectations of easing tensions. (Wallstreetcn) Wallstreetcn noted that Iran's Supreme Leader Mojtaba Khamenei approved the dispatch of a negotiating delegation to Islamabad on the night of April 20. According to Xinhua, citing the US Axios website, US Vice President Vance was expected to depart for the Pakistani capital on the morning of April 21 Eastern Time, with Trump envoy Steve Witkoff and presidential son-in-law Jared Kushner also heading to join the negotiations. (Wallstreetcn) The market is still waiting to see whether some form of consultation will take place in Islamabad. Investors generally expect that the likelihood of reaching some preliminary agreement is higher than that of a comprehensive deal. Currently, the market is mainly reacting to a sentiment shift from optimism to concern. However, it is widely believed that the most severe phase of the crisis and the accompanying energy supply disruptions may have passed. (Jinshi Data) Spot market overview: ► ► ► ► ► ► ► ► ► ►

SMM News on June 11: Metal Market: As of the daytime close, domestic market base metals showed mixed performance. SHFE tin led the gains with a 0.54% increase, while SHFE zinc and SHFE aluminum rose by 0.25%, and SHFE nickel fell by 0.25%. The declines in other metals fluctuated slightly. The main alumina contract fell by 0.24%, and the main casting aluminum contract rose by 0.13%. Most ferrous metals series prices rose, with only stainless steel declining by 0.6%. Iron ore rose by 1%, HRC rose by 0.68%, and coking coal and coke collectively rose by over 1%, with coking coal up by 1.68% and coke up by 1.01%. Overseas market base metals also showed mixed performance. LME copper fell by 0.24%, while LME aluminum and LME lead rose, but with relatively small fluctuations in gains. LME aluminum rose by 0.04%, and LME lead rose by 0.03%. In the overnight precious metals market, COMEX gold fell by 0.3%, and COMEX silver fell by 0.38%. Domestically, SHFE gold rose by 0.23%, and SHFE silver fell by 0.43%. As of 8:18 a.m. on June 11, the overnight closing market performance from last Friday 》Click to view SMM Futures Data Dashboard Macro Front Domestic Aspects: [The General Office of the CPC Central Committee and the General Office of the State Council issued the "Opinions on Further Promoting the Shenzhen Comprehensive Reform Pilot to Deepen Reform, Innovation, and Opening-up"] The Opinions propose to advance the integrated reform of the education, science and technology, and talent systems, strengthen industry-university-research collaboration and deep integration, and improve the support and guarantee mechanisms for overseas talent recruitment. The Opinions also propose to promote the high-quality development of the real economy through empowerment by finance, technology, data, etc., establish a new system for a higher-level open economy, and improve a scientific, refined, and rule-of-law governance model. US Dollar Aspects: The US dollar index rose by 0.03% overnight to close at 99.05, as the market awaited the outcome of trade negotiations between China and the US. This week, investors' focus will be on the US May Consumer Price Index (CPI) report to be released on Wednesday. Before the US Fed's policy meeting next week, investors are vigilant for any signs of intensifying inflation, and this report may provide clues on the impact of tariffs. It is expected that the US Fed will also keep interest rates unchanged next week. Traders anticipate nearly two interest rate cuts of 25 basis points each before the end of the year. Other Currency Aspects: The British pound declined against the US dollar due to weak UK employment data indicating a sluggish labour market. At the New York close, the US dollar rose by 0.2% against the Japanese yen to close at 144.92 yen. The US dollar has fallen by about 8.5% against the yen since the beginning of the year. During the market turmoil triggered by Trump's tariffs, the yen has generally benefited from net safe-haven capital flows. In the three months ending April, UK wages rose by 5.2%, slower than expected, pushing the British pound down 0.4% against the US dollar to $1.3496. The Bank of England will hold a meeting next week and is expected to keep interest rates unchanged. Money market traders anticipate around 48 basis points of interest rate cuts by the end of the year, up from 39 basis points before the data release. The euro was flat against the US dollar at $1.1420, while the Australian dollar, often seen as a proxy for risk sentiment, changed relatively little, trading at $0.6519. Data highlights: Today, China's M2 money supply annual rate for May (time uncertain between June 11-17), China's total social financing for the year to date as of May (time uncertain between June 11-17), China's new yuan loans for the year to date as of May (time uncertain between June 11-17), the US May CPI annual rate (unadjusted), the US May core CPI annual rate (unadjusted), the US May energy CPI annual rate (unadjusted), the US June IPSOS Primary Consumer Sentiment Index (PCSI), and Australia's ANZ consumer confidence index for the week ending June 8 will be released. In addition, He Lifeng visited the UK from June 8 to 13 and held the first meeting of the China-US economic and trade consultation mechanism. Crude oil update: As of the overnight close, oil prices in both markets fell, with US crude down 0.84% and Brent crude down 0.66%. US crude remained near a seven-week high as investors monitored progress in China-US economic and trade consultations. A survey found that OPEC's oil production increase in May was lower than planned, as Iraq further cut production to make up for earlier overproduction, while Saudi Arabia and the UAE also increased production by less than their quotas. According to CCTV News, on June 10 local time, the European Commission officially unveiled a draft of the 18th round of sanctions against Russia, primarily targeting Russia's energy revenues and banking sector, including restrictions on Russia's Nord Stream natural gas pipeline and adding more Russian banks to the sanctions list. The draft also proposes lowering the price cap on Russian crude oil from $60 per barrel to $45 per barrel. EU member states will begin discussing the draft this week. The US Energy Information Administration (EIA) stated in its monthly Short-Term Energy Outlook (STEO) that US crude oil production will decline next year as falling commodity prices force drillers to reduce rig counts faster than expected. The EIA said US crude oil production will fall from about 13.42 million barrels per day this year to about 13.37 million barrels per day in 2026. Previously, the EIA had expected US production to increase to 13.49 million barrels per day next year. Data released by the American Petroleum Institute (API) on Tuesday showed that US crude oil inventories fell last week, while gasoline and distillate inventories rose. The report showed that as of the week ending June 6, US crude oil inventories fell by 370,000 barrels, gasoline inventories increased by 3 million barrels, and distillate inventories increased by 3.7 million barrels. Analysts had previously forecast that US crude oil inventories would fall by 2 million barrels, distillate inventories would increase by approximately 800,000 barrels, and gasoline inventories would increase by 900,000 barrels last week. The US Energy Information Administration (EIA) will release official weekly US oil inventory data on Wednesday. (Wenhua Comprehensive)

On Monday local time, a survey released by the New York Fed showed that as the tariff war cooled down, US consumers' concerns about inflation eased in May. Specifically, the Survey of Consumer Expectations in May indicated that the one-year inflation expectation was 3.2%, a decrease of 0.4 percentage points from a month earlier; the three-year inflation expectation fell from 3.2% in April to 3%; and the five-year inflation expectation dropped from 2.7% to 2.6%. Although these figures remain above the US Fed's annual inflation target of 2%, the changes in these indicators are moving in a positive direction and reflect a shift in the fear sentiment that had previously arisen from Trump's wielding of the tariff stick. In early April, Trump announced a 10% baseline tariff on all US imports and a series of so-called reciprocal tariffs on dozens of trading partners. Faced with severe market volatility in financial markets, he then announced a postponement of the reciprocal tariff measures. US Fed officials closely monitor the trend of inflation expectations, as they believe that the public's expectations about inflation can have a strong impact on current levels. If people expect higher prices in the future, they may increase spending now and even demand higher wages. The Fed has repeatedly stated that the relative stability of long-term expectations is one reason they believe inflation will return to the target level. Compared with the survey results from the University of Michigan and the Conference Board, the New York Fed's survey results are less volatile. This survey brought some good news to the White House at a time when US government officials are trying to ease concerns about tariff-induced inflation. Kevin Hassett, director of the White House National Economic Council, said on Monday that, based on every inflation indicator, the decline exceeded the levels seen in more than four years. "Despite the increase in tariff revenue, inflation is declining, which contradicts what others have been saying but aligns closely with what we have been saying." However, economists generally expect that high tariffs will lead to higher prices for consumers while dampening employment and economic growth. The main question is whether these price increases will be one-time events or have lasting impacts. Nick Timiraos, known as the "Fed Whisperer," commented that the New York Fed's inflation expectations for May unexpectedly declined, although uncertainty about medium-term inflation expectations remains high. In addition, the survey also showed that consumers believe there is a lower likelihood of unemployment rising next year and that they will have more opportunities to find work if they themselves become unemployed. In May, consumers became more optimistic about their personal financial situations, including a slight improvement in access to credit and a decrease in the likelihood of debt delinquency. However, a report on Monday revealed that one pain point for consumers still persists: grocery store operations. Consumers expect food prices to rise by 0.4 percentage points to 5.5% next year, the highest level since October 2023. Meanwhile, the expected increase in home prices in May was 3%, down from 3.3% in April.

Macro News 1. On June 9, the State Council held its 14th thematic study session on "deepening the reform of the mechanism for the commercialization of scientific and technological achievements, and promoting the integrated development of scientific and technological innovation and industrial innovation." Premier Li Qiang of the State Council, while presiding over the study session, emphasized the need to thoroughly study and implement the important instructions of General Secretary Xi Jinping and the relevant decisions and deployments of the CPC Central Committee. Through coordinated efforts in multiple aspects, efforts should be made to break through the bottlenecks in the commercialization of scientific and technological achievements, effectively improve the efficiency of commercialization, and promote innovative development. 2. The first meeting of the China-US Economic and Trade Consultation Mechanism was held in London, UK, on the afternoon of June 9 (local time). CCTV News reporters learned that the first meeting of the China-US Economic and Trade Consultation Mechanism would continue on June 10 (local time). 3. The General Offices of the CPC Central Committee and the State Council issued the "Opinions on Further Ensuring and Improving People's Livelihoods, and Focusing on Addressing the Urgent, Difficult, Worrisome, and Anticipated Needs of the Masses." Among the proposals are to improve the mechanism for adjusting the minimum wage standard and reasonably raise the minimum wage standard; to improve the mechanism for adjusting the basic medical insurance drug list, formulate and introduce a list of innovative drugs for commercial health insurance, and better meet the multi-level drug security needs of the people; and to promote eligible agricultural migrant populations to enjoy the same rights as the registered permanent residents of the places they move to. 4. Lin Jian, spokesperson for the Ministry of Foreign Affairs, presided over a regular press conference yesterday. A reporter asked whether China would open more "green channels" for the approval of rare earth exports. Lin Jian stated that the Ministry of Commerce of China had already responded to China's export control measures on rare earths, and that information could be consulted. Industry News 1. The Beijing Municipal Bureau of Economy and Information Technology and four other departments issued the "Implementation Plan for the High-Quality Development of Beijing's Fashion Industry (2025-2027)," which proposes supporting the launch of trendy portable wearable devices and the development of new products such as artificial intelligence personal computers. It encourages the R&D and launch of high-end new car models with a stronger sense of technology and fashion, and the exploration of overseas markets. 2. It is reported that the financial regulatory authorities in a certain area of the Yangtze River Delta recently issued a notice, clearly stating that banking institutions within their jurisdiction must not absorb deposits by giving physical gifts to customers or cooperating with internet platforms to distribute membership benefits. In case of the above-mentioned situations, the local regulatory authorities require the immediate suspension of the sale of relevant products, the simultaneous removal of promotional and display materials, and the orderly withdrawal of existing businesses by the end of 2025. 3. Data from the China Passenger Car Association (CPCA) show that domestic retail sales of passenger NEVs reached 1.021 million units in May, up 28.2% YoY and 12.1% MoM. From January to May, domestic retail sales of passenger NEVs reached 4.351 million units, up 34.1% YoY. 4. The Suzhou Artificial Intelligence Industry Association plans to solicit innovative products and solutions that leverage AI technology to empower the Suzhou football team, aiming to enhance training standards and competitive performance, and support the team in achieving outstanding results in the 2025 Jiangsu Provincial Urban Football League. 5. According to "Guiyang Release", Guiyang has established a joint conference system for the development of the sports industry, forming a collective effort to promote its growth. In terms of financial support, special funds and industrial support policies have been established and utilized to provide assistance to sports products, services, projects, and enterprises that align with the support direction. 6. The Hebei Provincial Development and Reform Commission recently issued the "Notice on Several Refined Measures to Promote the Development of the Private Economy in the Energy Sector", proposing support for private enterprises to participate in the construction and operation of charging infrastructure. It aims to expand diversified investment and financing models, attracting various types of social capital to participate in charging facility construction through investment attraction and policy support. Corporate News 1. Sugon announced that Hygon Information would absorb and merge Sugon through share exchange, and its stock trading would resume. Hygon Information also announced on the same day that its stock trading would resume. 2. Changshan Pharmaceutical announced that the marketing authorization application for its Ebenatide Injection for type 2 diabetes had been accepted, with uncertainties regarding approval and timing. 3. Vohringer announced abnormal fluctuations in its stock trading and would suspend trading for verification. 4. CECPORT announced that the National Integrated Circuit Fund had recently reduced its stake in the company by 1%. 5. Chow Tai Fook announced its intention to issue H shares and list on the Hong Kong Stock Exchange. 6. In response to media reports that "the company is planning a share transfer", relevant personnel from Hosun Silicon Industry responded to a reporter from China Securities Journal on the afternoon of the 9th, stating that they had never been in contact or negotiations with TBEA or its affiliates regarding share transfer matters. 7. Ruifeng Advanced Materials announced that its senior executive, Zhao Ziyang, was under investigation by the China Securities Regulatory Commission for suspected insider trading. 8. SFI said on its interactive platform that its FINNOSafe compliant Web3 platform could support the development of businesses related to stablecoin issuers and market participants. 9. Dexin Technology announced that the sales revenue from molds and products produced by its subsidiary for solid-state battery production accounted for less than 1% of its operating revenue. 10. Yangnong Chemical stated on its interactive platform that Tetrachlorantraniliprole could replace "Chlorantraniliprole" and had good market prospects. 11. EVE announced its intention to issue H shares and list on the Stock Exchange of Hong Kong Limited. 12. Xinzhu Stock announced plans to acquire a 60% stake in Sichuan Shudao Clean Energy Group Co., Ltd., with trading resuming. 13. Maxinlin announced that its controlling subsidiary signed a computing power service contract worth 1.184 billion yuan. 14. Huasheng Stock announced plans to acquire a 100% stake in Yixin Technology, with trading suspended. 15. *ST Longyu announced that the Shanghai Stock Exchange required the company to fulfill its repurchase obligations during the delisting period. 16. Hailian Jinhui stated on the interactive platform that the company currently has no direct business revenue related to digital currency or stablecoins. Global Markets 1. The three major U.S. stock indices closed mixed, with the Nasdaq up 0.31%, the S&P 500 up 0.09%, and the Dow flat. Both the Nasdaq and S&P 500 hit new closing highs since late February. Most large-cap tech stocks rose, with Tesla up over 4%, Intel up over 2%, Google and Amazon up over 1%, and Microsoft rising slightly. Apple and Netflix fell over 1%, while Meta dropped slightly. Most popular Chinese stocks closed higher, with the Nasdaq Golden Dragon China Index up over 2%. European major indices collectively closed lower, with Germany's DAX30 down 0.62%. 2. International crude oil futures settled about 1% higher. WTI crude July futures rose 1.1%, while Brent crude August futures gained 0.86%. 3. COMEX gold futures rose 0.04% to $3,347.8/oz, while COMEX silver futures gained 2.07% to $36.915/oz. Investment Opportunities 1. Cross-Sea Flight Takes Only 5 Minutes: Hong Kong's First Drone Delivery Route Officially Launched Media reported that under Hong Kong's low-altitude economy regulatory sandbox framework, Meituan's drone first regular route officially commenced operations. The route features a "cross-sea + park" scenario, flying from Hong Kong Science Park to Ma On Shan Promenade in about 5 minutes, nearly 7 times more efficient than traditional delivery methods. Merchants like McDonald's and Pizza Hut in Hong Kong have already joined the service. Zhongtai Securities noted that China's consumer drone market size grew from 15.5 billion yuan in 2016 to 38.81 billion yuan in 2021, with a CAGR of 20.2%, and is projected to reach 62.49 billion yuan by 2026. As prices decline and the industry chain improves, the barrier for consumer purchases has significantly lowered. 2. Industry Leaders Launch Scenario-Specific Products, with ByteDance, Huawei, and Tencent Entering the Market Media reported that Baidu Intelligent Cloud recently launched a family of selected industry scenario-specific smart agents covering energy, transportation, healthcare, and environmental sectors. In addition to Baidu, companies such as ByteDance, Huawei, Tencent, and Kunlun Tech have also been actively deploying AI Agents. A research report by Guoyuan Securities pointed out that major internet companies are competing in the Agent sector to secure new interaction entry points in the AI internet era. AI Agents inherit the core genes of the APP era, possessing a certain degree of versatility and subscription systems. Agents have advantages in service-oriented delivery, network effects, and developer ecosystems, and can directly invoke APPs to complete designated tasks. Universal Agents are widely permeating various aspects of users' work and lives, and are expected to surpass the original APP ecosystem. 3. The industry has a vast market size and is becoming an important driving force for economic development. According to media reports, the marine economy has shown a positive development trend this year, with the gross marine product in Q1 reaching RMB 2.5 trillion, up 5.7% YoY. The development of the marine industry has remained stable and positive, with the acceleration of new quality productive forces. The surging blue new momentum is becoming an important driving force for China's economic development. The marine economy has a vast market size and broad development space. In 2023, global marine trade reached US$2.2 trillion, accounting for about 7% of the total global trade, with service trade reaching US$1.3 trillion and merchandise trade reaching US$900 billion. The Organisation for Economic Co-operation and Development (OECD) predicts that by 2030, the economic value of the ocean will exceed US$3 trillion, equivalent to the size of the world's fifth-largest economy. Domestically, according to data released by the Ministry of Natural Resources, in 2024, China's total marine economy exceeded RMB 10 trillion for the first time. Northeast Securities pointed out that the 2025 government work report mentioned "launching large-scale application demonstration initiatives for new technologies, new products, and new scenarios to promote the safe and healthy development of emerging industries such as commercial aerospace, low-altitude economy, and deep-sea technology." This is the first time that deep-sea technology has been included in the government work report. Deep-sea technology enhances detection capabilities in deep-sea areas, and the development of deep-sea technology holds both economic and strategic significance. With the support of top-level planning, emerging fields such as deep-sea technology are expected to accelerate their development. 4. An important direction in the new round of technological competition for NEVs, with significant acceleration in the R&D progress of such products. It is reported that as the technological breakthroughs in the NEV industry enter the "deep water zone," the evolution of the technological path of power batteries, as a core component, has attracted significant market attention. Among them, solid-state batteries have become an important direction in the new round of technological competition for NEVs. In terms of relevant standards, the "Judgment Method for All-Solid-State Batteries" has been released. In the market, R&D progress in the field of solid-state batteries has significantly accelerated. Driven by multiple factors, several publicly listed firms have clarified the timetable for the mass production of solid-state batteries, accelerating the industrialisation process of solid-state batteries. Zhongtai Securities pointed out that in April 2025, the Ministry of Industry and Information Technology (MIIT) introduced new national standards for power batteries, imposing stricter requirements on battery thermal runaway and thermal propagation. It also issued documents urging the acceleration of top-level construction in the solid-state battery industry, indicating a proactive and encouraging stance in national policies. Meanwhile, from the perspective of the capital expenditure cycle, capital expenditures for new-type battery technologies, primarily semi-solid-state, have significantly increased. The solid-state battery industry is expected to drive the lithium battery industry to complete a new round of industrial technology upgrades and iterations under the influence of the triple factors of "market demand + policy encouragement + industrial upgrading."