Under the EU's new steel trade regime, importers must prove the 'country of melt and pour'—where steel or iron was first produced in liquid form and cast into its first solid state—to improve supply-chain traceability. Evidence such as a mill test certificate is required from 1 October 2026; melt-and-pour data will feed into country quota distribution from 1 October 2027; and by 30 June 2028 the Commission will assess whether to make melt-and-pour the basis for quota eligibility, possibly via a legislative proposal. The rule targets origin-washing, raising the cost of routing non-EU steel—including Chinese stainless—through third countries to dodge quotas and duties.

Platinum prices came under heavy pressure and slumped today, as US Treasury Secretary remarks pushed the US dollar index higher, and combined with several foreign investment banks raising their expectations for US Fed interest rate hikes in their latest reports, multiple bearish factors weighed on precious metals futures. During morning trading, the most-traded GFEX platinum contract PT2608 settled at 389.55 yuan/g, down 4.39%. The inverted spread between the best ask price for platinum 9995 on the Shanghai Gold Exchange and the GFEX PT2608 contract held near 7 yuan/g. Spot side, mainstream quotations for platinum were at a discount of 1 yuan/g to parity against the PT2608 contract. Premiums and discounts of mainstream quotations were basically flat compared with yesterday. Most traders' quotes leaned toward the higher end, while some suppliers offered small premiums against the most-traded contract but struggled to close deals. Upstream enterprises were less willing to sell due to low absolute prices, and downstream mainly conducted price negotiations for rigid demand purchases. Overall platinum transactions were normal today.

According to SMM surveys, although prices from Brazil and Argentina have pulled back slightly, overall price levels remain high. Going forward, the import market will continue to feature diversified sources and persistent differentiation in price spreads by country and product category.

[SMM Coking Coal and Coke Daily Commentary] On the news front, leading coke enterprises initiated the ninth round of coke price increases, raising wet quenched coke by 50 yuan/mt and dry quenched coke by 55 yuan/mt, effective from 0:00 on June 26. In terms of supply, most coke producers remain loss-making, which suppresses their production willingness, and coke supply tightens. On the demand side, steel prices fluctuate downward and steel mill profit margins narrow. However, blast furnace hot metal output at mills stays high, daily coke consumption remains relatively robust, and coke purchasing enthusiasm is moderate. Overall, the short-term coke market is expected to hold up well, with expectations for the ninth round of price increases to be implemented.

SMM June 24 – Metals market: As of the midday close, all domestic base metals fell, with SHFE copper down 0.95%, SHFE aluminum down 1.11%, SHFE lead down 0.12%, SHFE zinc down 1.7%, SHFE nickel down 1.94%, and SHFE tin down 4.64% to a session low of 388,220 yuan/mt. In addition, the most-traded casting aluminum contract fell 1.01%, the most-traded alumina contract rose 0.52%, the most-traded lithium carbonate contract rose 1.67%, the most-traded silicon metal contract edged down, and the most-traded polysilicon contract rose 0.28%. Ferrous metals showed mixed performance, with iron ore up 0.68%, rebar edging down, HRC edging up, and stainless steel down 1.27%. On the coking coal and coke front: the most-traded coking coal contract fell 0.64%, and the most-traded coke contract was at parity with 1,953.5 yuan/mt. On the overseas base metals front, as of 11:38, LME metals were nearly all lower. LME copper rose 0.24%, LME aluminum fell 0.67%, LME lead fell 0.44%, LME zinc and LME tin fell within 0.5%, and LME nickel edged down. On the precious metals front, as of 11:38, COMEX gold fell 1.86% and COMEX silver fell 1.34%. On the domestic precious metals front: the most-traded SHFE gold contract extended its losing streak from the previous four trading days, falling another 2.37% to a session low of 886.34 yuan/g; the most-traded SHFE silver contract extended its losing streak from the previous three trading days, falling another 5.08%. Additionally, as of the midday close, the most-traded platinum futures fell 0.6% and the most-traded palladium futures fell 1.41%. As of the midday close, the most-traded European container shipping futures contract rose 0.79% to 3,745 points. As of 11:38 on June 24, some futures midday market data: 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 80 yuan/mt, flat from the previous trading day; standard-quality copper was quoted at a premium of 20 yuan/mt, up 10 yuan/mt from the previous trading day; SX-EW copper was quoted at a discount of 60 yuan/mt, up 10 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 103,310 yuan/mt, down 975 yuan/mt from the previous trading day, and the average SX-EW copper price was 103,200 yuan/mt, down 970 yuan/mt. Spot market: Guangdong inventory rose for the fourth consecutive trading day, mainly due to increased arrivals... Macro Front Domestic Side: [Three Ministries Implement 2026 Insurance Compensation Policy for First (Set of) Major Technical Equipment] The MIIT General Office, the Ministry of Finance General Office, and the National Financial Regulatory Administration General Office issued a notice on implementing the 2026 insurance compensation policy for the first (set of) major technical equipment. The notice stated that complete equipment is generally supported based on the number of units (sets); core systems, key parts, key supporting components for major technical equipment, and basic components are generally supported based on the number of batches. For complete equipment such as high-end industrial machine tools, specialized electronic equipment, new-type agricultural machinery, and precision instruments and meters, which have relatively low per-unit value, support can be provided on a batch basis; for high-value core systems and key components like aircraft engines and marine engines, support can be provided on a per-unit basis. [Ultra-long special government bonds have helped upgrade over 360,000 elevators] On June 24, it was learned from the Ministry of Housing and Urban-Rural Development that since the state included the upgrading of old residential elevators into the scope of ultra-long special government bond funding support, various localities have actively relied on policy support to vigorously promote the upgrading of old residential elevators, facilitating residents' convenient travel. To date, a total of over 360,000 old residential elevators have been upgraded. (CCTV News) [PBOC reverse repo net injection of 242.2 billion yuan today] The PBOC today conducted 662.5 billion yuan of 7-day reverse repo operations at an operation rate of 1.4%, unchanged from the previous. Today, 420.3 billion yuan of reverse repo matures. US Dollar: As of 11:38, the US dollar index rose 0.1% to 101.47. On the data front: on June 24, S&P Global released data showing that the US June composite Purchasing Managers' Index (PMI) flash reading rose to 52.2, higher than the previous 51.5 and market expectations of 52.1, hitting a five-month high and indicating continued expansion in US business activity. By sector, manufacturing stood out. New orders grew at the fastest pace in over four years, driving a marked pickup in factory production. The US June manufacturing PMI flash reading rose to 55.7, the highest since May 2022, exceeding the expected 54.6 and the prior 55.1. Meanwhile, the service sector also maintained expansion, with the June services PMI flash reading climbing to 51.3, a four-month high, above the expected 51.1 and the prior 50.7. At the same time, easing cost pressure expectations due to the de-escalation of Middle East tensions also boosted business confidence. However, the survey also showed that issues such as supply chain delays, rising raw material costs, and slowing employment persist, and the foundation for economic recovery is not solid. (From Wall Street Insight APP) According to CNBC, as the search for the next president of the Federal Reserve Bank of Atlanta enters its seventh month, the hiring process is being closely watched. Observers hope to see how the new Fed chief Warsh will reshape the Federal Open Market Committee (FOMC), which is responsible for setting interest rate policy. As Warsh began to exert his personal influence within the Fed, the selection process shifted. During former Fed Chairman Powell’s tenure, the Fed had already been scouting candidates for the Atlanta Fed president job title, according to two people familiar with the hiring process. However, to allow Warsh to take the lead on the appointment, the selection process was temporarily suspended. Because the search is still ongoing, both sources requested anonymity. They noted that Michael Faulkender, who previously served as a senior Treasury official under President Trump, was subsequently added to the list of candidates for the Atlanta Fed presidency. It remains unclear whether Faulkender is still a candidate. (Jin10 Data App) According to CME “FedWatch”: the probability that the Fed holds rates steady in July is 62.6%, while the probability of a cumulative 25bps hike is 37.4%. The probability that the Fed holds rates steady through September is 29.8%, with a 50.6% chance of a cumulative 25bps hike and a 19.6% chance of a cumulative 50bps hike. In other currencies: Data released on Wednesday showed that Australia’s CPI slowed in May, weighed down by lower fuel costs and reduced holiday travel demand. Still, core inflation came in above expectations, suggesting that further rate hikes cannot be ruled out. According to Australian Bureau of Statistics data, the CPI fell 0.7% MoM in May, while the YoY growth rate slowed to 4%, down from the previous reading of 4.2% and compared with market expectations of a 0.4% MoM decline and 4.3% YoY growth. However, core inflation, which strips out volatile items, rose 0.4% MoM in May—topping expectations of 0.3%—pushing the annual rate to 3.6%. The RBA has already hiked rates three times this year as it seeks to pull core inflation back into its 2%–3% target range. The Bank of Japan signaled in the minutes of last week’s board meeting that there is a need to further raise the benchmark interest rate. At that meeting, the BOJ lifted the policy rate to its highest level since 1995. According to the minutes released on Wednesday, one member stated: “Given that core CPI inflation is close to 2% and financial conditions remain accommodative, the Bank should continue raising the policy rate in response to the current economic, inflation and financial environment.” While the BOJ’s move last week marked its first rate hike since last December and signaled clearly that more increases are ahead, the minutes offered no explicit guidance on the timing of the next hike. Even so, they reinforced market expectations for another rate increase before the end of the year. The day after the meeting concluded, a survey of economists showed that about 90% of respondents expected another rate hike before December, with over one-third projecting October as the next adjustment window. Economists now expect the benchmark rate in this hiking cycle to reach 1.75%, up from the 1.5% forecast in the survey earlier this month. (Jin10 Data App) Data: Today will see the release of Australia's unadjusted May CPI y/y, Germany's June IFO business climate index, Switzerland's June ZEW investor sentiment index, the Q1 US current account, and US new home sales (annualized) for May, among other data. Also on watch: the Bank of Japan publishes a summary of opinions from the board members on the June monetary policy meeting; the 2026 Shanghai Mobile World Congress runs through June 26. Crude Oil: As of 11:38, oil prices on both exchanges fell, with WTI down 1.08% and Brent off 0.87%. Following a temporary peace agreement between the US and Iran, tanker traffic through the Strait of Hormuz resumed, keeping international crude prices under pressure. (Wall Street News) Iran's ambassador in Geneva stated that the Strait of Hormuz is fully open to commercial vessels, and a significant volume of oil has been transported through the waterway in recent days. (Jin10 Data App) On June 23 local time, US President Trump said the United States is "working toward a fair agreement with Iran" to end the conflict in the Strait of Hormuz. He noted that 19 million barrels of oil were transported through the strait just the previous day (June 22). Trump reiterated that "Iran cannot have nuclear weapons" and indicated that work on the matter is progressing well. (CCTV) Spot Market at a Glance: ► ► ► ► ► ► ► ► ► ► ► ► ►

SMM Jun 24: The morning session saw the SHFE aluminum 2606 contract trade with a center lower than the same period of the previous trading day. As aluminum prices declined, the release of stockpiling demand from earlier price drops, combined with pervasive bearish sentiment, kept overall buying interest weak today. Transaction prices continued to move lower, with mainstream trades at a discount of 30-50 yuan/mt against the SHFE aluminum July contract. The east China shipment sentiment index stood at 2.98 today, down 0.13 DoD; the purchase sentiment index was 2.83, down 0.24 DoD. The morning session today corrected sharply from yesterday, with central China traders raising their offers. Given the low prices, suppliers showed weak selling sentiment and a notable willingness to hold prices firm and hold back from selling. Downstream processing enterprises displayed clear fear of further declines, strong wait-and-see sentiment, and consequently weaker buying interest. Ultimately, actual transaction prices in the central China market centered around a discount of 60-90 yuan/mt against the SHFE aluminum July contract. The central China shipment sentiment index was 2.93 today, down 0.02 DoD; the purchase sentiment index was 2.20, down 0.01 DoD. On the inventory front, aluminum ingot stocks in major consuming regions fell by 1.65 WoW today, with all three regions showing destocking.

Asked "Dear Board Secretary, I would like to inquire whether your company, as found online, can stably mass-produce semiconductor-grade ultra-high-purity magnesium metal ingots and is the only publicly listed firm for such products. Also, what has been the sales proportion of such products in the company's total sales in recent years?" Baowu Magnesium Industry responded on the investor interaction platform on June 23: The company's businesses include magnesium material business, magnesium products business, aluminum products business, mineral products business, and building formwork business. Its main products include magnesium alloys, magnesium alloy deep-processed products, aluminum alloys, aluminum alloy deep-processed products, master alloys, and strontium metal. For the revenue breakdown by product, please refer to the 2025 annual report. The company has not publicly disclosed information regarding the specific products and sales proportions you mentioned. Please refer to the company's officially released periodic reports or announcements for such information. Regarding the question "1. What is the commissioning progress of the mine in the Qingyang project in Anhui, and what is the current ore output? 2. What advantages does the company's vertical retort magnesium smelting technology have? How does it compare with peers in Fugu?" Baowu Magnesium Industry responded on June 17 on the investor interaction platform: The company adopts vertical retort magnesium smelting technology, which features outstanding technical advantages: increased single-retort capacity, shortened production cycle, improved production efficiency, extended service life of reduction retorts, and a higher level of mechanized and automated operations. The Anhui Qingyang mine project has reached a capacity of 20 million mt per year . On June 3, during a survey, Baowu Magnesium Industry stated that the company already has a certain level of technology reserves in magnesium-based hydrogen storage, but the development of the hydrogen storage industry mainly relies on downstream application expansion, which takes time. Currently, downstream application expansion is slow: the hydrogen energy industry chain (production/storage/transportation/utilization) lacks overall maturity, and orders have yet to materialize at scale. On June 3, during a survey, Baowu Magnesium Industry stated that in terms of end-use breakdown, the largest use of magnesium is in magnesium alloys, accounting for about 49%; followed by addition to aluminum alloys, about 26%; steel desulfurization, about 12%; as a metal reducing agent, about 8%; and other fields, about 5%. On June 3, during a survey, Baowu Magnesium Industry stated that the company's magnesium ingot production costs have the following advantages: 1. The company has a complete industry chain advantage, especially in stable raw material supply. 2. The company continues to increase investment in original magnesium smelting technology, enhancing the cost competitiveness of its primary magnesium through large-scale vertical retort magnesium smelting technology and energy efficiency optimization. Baowu Magnesium Industry announced on May 26 that it recently received a notice from its controlling shareholder, Baosteel Metal Co., Ltd., that 263 million shares (26.53% of total shares) will be transferred at no cost to China Baowu Steel Group Corporation Limited. After the transfer, the controlling shareholder will change to China Baowu, while the actual controller remains the State-owned Assets Supervision and Administration Commission of the State Council, unchanged. The announcement shows Baosteel Metal is a wholly owned subsidiary of China Baowu. Before this transfer, China Baowu indirectly held 26.53% of Baowu Magnesium through Baosteel Metal, being the indirect controlling shareholder. After the transfer, China Baowu will directly hold 26.53% and become the controlling shareholder. Performance: Baowu Magnesium Industry disclosed its 2025 annual report on April 29, showing: In 2025, the company achieved revenue of 9,911,752,817.29 yuan, up 10.34% YoY, and net profit attributable to shareholders of the publicly listed firm was 18,548,946.85 yuan, down 111.62% YoY. The decline was mainly due to the continued downward trend of magnesium prices, which caused a significant YoY decline in the magnesium material business profit; meanwhile, the joint venture Anhui Baomei Light Alloy Co., Ltd. is in the ramp-up stage of a new project, with low production and high costs, plus low magnesium prices, which dragged down the company's investment income YoY. Regarding the main business activities during the reporting period, Baowu Magnesium Industry introduced in its 2025 annual report: The company is a leader in magnesium-based new materials under China Baowu, with advantages across the entire industry chain and mine resources, leading vertical retort magnesium smelting technology, and its magnesium alloy capacity and market share are among the global frontrunners. The company focuses on lightweight materials, with products covering automotive, consumer electronics, e-bikes, building formwork, etc. After more than 30 years of development, the company has become a high-tech enterprise integrating mining, non-ferrous metal smelting, and processing, aiming to be a global leader in the magnesium industry. Its businesses include magnesium material business, magnesium products business, aluminum products business, mineral products business, and building formwork business. Its main products include magnesium alloys, magnesium alloy deep-processed products, aluminum alloys, aluminum alloy deep-processed products, master alloys, and strontium metal. Outlook on future development: Baowu Magnesium Industry stated in the 2025 annual report: 2026 marks the start of the company's 15th Five-Year Plan, and the industry will see an important period of high-end and large-scale development. The board will guide management with the core positioning of "building a lightweight solutions provider and becoming the new materials main force of China Baowu," focusing on the main business, deepening cultivation, advancing full-industry-chain upgrading, technological innovation, market expansion, and green development, to achieve sustained improvement in operating performance and significant enhancement of core competitiveness. 1. Strengthen strategic guidance and solidify the foundation for new quality productive forces in the magnesium industry. Accelerate building a full industry chain from primary magnesium to alloys, deep processing, and terminal applications, concentrate on breakthroughs in green smelting and stable, low-cost production technologies, and speed up large-scale promotion of key products. 2. Coordinate the construction of key projects to synergistically improve overall operational efficiency. Speed up construction and comprehensive acceptance of the Huayuan Wujia mine in the Qingyang project, orderly advance main plant construction and production indicator optimization, and steadily push forward key projects in Gansu Baomei, Wutai Baomei, and Chaohu Baomei. 3. Deepen magnesium industry reform and innovation, promoting modern corporate governance. Steadily advance business transformation and renewal, promote asset integration, and further optimize governance, management control, and business management models. 4. Accelerate intelligent development layout and fully advance IT system construction. Complete full implementation of the Baowu standard financial system and rollout of cost systems in subsidiaries, create a full-process IT model project for magnesium business, further enhance operational control, cost calculation, compliant operations, and risk prevention and control capabilities. 5. Focus on attack on primary magnesium cost to continuously enhance market competitiveness. Reduce manufacturing costs of three core components: reduction retorts, center pipes, and cones; optimize steel grades to extend retort service life; reduce auxiliary energy consumption and material-to-magnesium ratio. 6. Implement cost-conscious management and systematically build a high-quality development business model. Deepen overall benchmarking to identify and address gaps, systematically attack the "four major costs" — primary magnesium, energy, logistics, and quality — and improve the operational control system. 7. Strengthen safety and environmental protection fortresses, systematically elevate green development. Continuously strengthen safety and environmental compliance rectification. Highlight risk management in key areas and enhance intrinsic safety. Accelerate green factory and low-carbon capability building. 8. Main risk factors and countermeasures (1) Risk of fluctuating main raw material prices The company's main business is magnesium and aluminum alloys and deep processing, with primary raw materials being magnesium and aluminum metals. Prices are affected by supply-demand dynamics, global and Chinese economic conditions, and closely tied to automotive lightweighting progress, 3C industry demand, etc. If magnesium and aluminum prices swing wildly in the future, it will affect cost control and profitability. The company is raising the self-sufficiency ratio of raw materials, adjusting product mix, and increasing the proportion of deep-processed products to mitigate the impact. (2) Risk of fluctuating market demand The company's magnesium and aluminum lightweight alloy products are mainly used in automotive and consumer electronics. Currently, seizing auto lightweighting opportunities, the company is expanding into downstream deep processing such as magnesium alloy automotive die castings, magnesium alloy building formwork, and aluminum extrusion products. The pace of automotive lightweighting and 3C electronics demand are influenced by macro-economy, industrial policies, and process technology innovation. If downstream demand falls short of expectations, it will affect operating performance. The company is expanding product applications in various fields, increasing penetration rates, to reduce the risk of demand fluctuations. In addition, the Q1 2026 report released by Baowu Magnesium Industry shows: In Q1 2026, revenue was 2.132 billion yuan, up 4.86% YoY; net profit attributable to shareholders of the publicly listed firm was 5.0891 million yuan, down 81.94% YoY. Regarding the increase in Q1 revenue, Baowu Magnesium Industry explained: Sales of main products and material prices rose YoY. For the decline in net profit, the company said it was due to a decrease in product gross margins and increased losses from joint ventures. Baowu Magnesium Industry mentioned that its magnesium alloy capacity and market share rank among global leaders. Looking back at the performance of SMM magnesium alloy AZ91D in Q1 this year: The average price on March 31, 2026 was 19,650 yuan/mt, compared with 17,950 yuan/mt on December 31, 2025, the average price rose by 1,700 yuan/mt in Q1, or 9.47%. The daily average price in Q1 2026 was 18,932.14 yuan/mt, up 1,320.74 yuan/mt, or 7.5% YoY, from 17,611.4 yuan/mt in Q1 2025. According to SMM price quotes: The EXW price of SMM magnesium alloy AZ91D on June 24 ranged from 18,250 to 18,350 yuan/mt, with an average of 18,300 yuan/mt, down 0.54% from the previous trading day. Currently, magnesium alloy prices are in the doldrums alongside magnesium ingot prices, with overall low trading sentiment. Fundamentals side: Supply side, magnesium alloy smelters have stable operating rates, ample spot supply in the market, and overall supply is loose; demand side, downstream die-casting plants show significant divergence in orders, with stable automotive orders, persistently sluggish two-wheeler orders, and alloy processing fees in the doldrums. Overall, the magnesium alloy market maintains a supply-strong-demand-weak pattern, with prices expected to remain in a weak consolidation phase in the short term.

June 23, 2026 The price of gold is currently feeling the full brunt of U.S. monetary policy. Bank of America, which was still among the market’s biggest optimists as recently as January and had forecast a rapid rise to $6,000 per ounce by spring, has had to adjust its short-term outlook. While the long-term fundamental arguments in favor of the precious metal remain intact, the Federal Reserve’s radically changed interest rate outlook is now forcing the analyst team to adopt a more defensive stance—at least in the short term. Interest Rate Hikes Instead of Cuts: The Fed’s Inflation Trap The key headwind for gold is the abrupt reversal in interest rate expectations. While investors were still firmly expecting interest rate cuts at the start of the year, the war in Iran has sparked a global energy crisis and massively fueled inflation concerns. The CME FedWatch Tool now puts the probability of another rate hike by September at over 70 percent. This restrictive environment weighs on the non-interest-bearing precious metal, as rising bond yields drive up the opportunity cost for gold investors. This shift from an environment of “inflationary rate cuts” to tight monetary policy cuts gold’s immediate upside potential in half, according to BofA. The problem: Even a swift peace agreement would hardly resolve the persistent inflation immediately, given established Trump tariffs, strained supply chains, and rising housing costs. Gold is thus caught in a short-term dilemma: While it benefits as a classic hedge against inflation, it is held back by the central bank’s necessarily restrictive stance. Megatrends remain intact: The structural fundamentals are growing Despite these headwinds, Bank of America is sticking to its overarching bullish scenario, as the U.S. macroeconomic environment provides the perfect breeding ground for higher prices. A ballooning budget deficit of around six percent of gross domestic product and a lack of fiscal consolidation are increasingly raising doubts about the sustainability of the U.S. debt burden—especially as foreign investors are already reducing their holdings of U.S. Treasury bonds. This is accompanied by global de-dollarization: According to recent surveys, 74 percent of central banks expect the dollar’s share of global reserves to decline over the next five years. This promises sustained strong purchasing power from the central banking sector. Once the looming interest rate hikes are fully priced in or off the table, investment demand is also likely to surge significantly. Currently, gold investments account for only 5.5 percent of global equity and bond markets. Analysts at Bank of America see enormous potential for growth here, particularly as institutional investors are shifting from the traditional 60:40 portfolio toward a 60:20:20 structure, in which alternative hedges such as gold are given significantly greater weight. For forward-thinking commodity investors, the report thus paints a clear picture: The short-term correction driven by interest rate policy merely masks massive, structural upside potential. Source： https://goldinvest.de/en/is-the-gold-correction-an-opportunity-bofa-sticks-to-its-usd6-000-target-despite-headwinds-from

[SMM Brass Billet Flash] The core contradiction of "high costs, weak demand, and pessimistic expectations" in the brass billet market has not fundamentally reversed. On the one hand, international copper prices hover at highs, continuously raising production and import costs for brass billets, squeezing profits of domestic processing enterprises, and making import purchase willingness increasingly cautious. On the other hand, the recovery pace of traditional end-use consumption sectors such as real estate, home appliances, and hardware remains slow, downstream finished product orders are mediocre, overall spot trades are sluggish, and there is insufficient momentum for large-scale restocking.

According to the latest customs data, China's imports of copper-zinc alloy (brass) bars and rods in May 2026 reached 2,766.41 mt in physical content, up 8.19% YoY and surging 13.02% MoM. In January-May 2026, cumulative imports were 11,400 mt in physical content, a cumulative decline of 1.23% YoY (HS codes 74072111, 74072119, 74072190). From April to May, downstream users in China maintained a normal restocking pace, and with steady export order deliveries, monthly imports recovered on a MoM basis for consecutive months. However, overall end-use consumption showed no significant pickup, leaving cumulative imports still weak YoY. By source, South Korea remained China's largest supplier of brass billet, with imports from South Korea reaching 1,117.9 mt in May, up 13.85% MoM and 16.79% YoY, accounting for 40.41% of the total. Japan ranked second, with May imports at 439.88 mt, up 19.05% MoM but down 0.82% YoY, representing a 15.9% share. In May, imports from these two key source countries both rose MoM, as overseas producers' shipments and the domestic procurement pace picked up simultaneously. Japan and South Korea together supplied over 50% of the total, and the import source structure remained stable. On the import value side, growth remained divergent, and cost pressures continued to stand out. Import value in May was $26.7529 million, up 18.33% MoM and 38.04% YoY. In January-May 2026, cumulative import value reached $105.7079 million, a 23.42% YoY increase. A comparison shows that while imports in January-May fell 1.23% YoY in volume, import value surged 23.42% YoY, a sharp divergence. The key reason is that international copper raw material prices have been fluctuating at highs, pushing up the ex-factory cost of overseas brass billet, which then passed through to import prices and drove up unit transaction prices. Even though total import volumes were weak, overall import value maintained high growth. The core contradiction of "high costs, weak demand, and pessimistic expectations" in the brass billet market has not fundamentally reversed. On one hand, international copper prices have been fluctuating at highs, continuously raising production and import costs for brass billet, squeezing profits at domestic processing enterprises, and making import purchase willingness more cautious. On the other hand, end-use consumption in traditional sectors such as real estate, home appliances, and hardware has recovered slowly, downstream finished product orders have been mediocre, spot trades in the market have remained sluggish overall, and there has been insufficient drive for large-scale restocking. Based on import performance in May and downstream fundamentals, SMM expects that the brass billet import market will continue to operate at low levels for the rest of Q2 this year. Without a concentrated recovery in end-use demand, imports are unlikely to see a sustained significant rebound, and the game between high import prices and weak end-use demand will persist.