SMM June 3 News: Metal Market: As of the midday close, domestic base metals were mostly down, with SHFE copper slightly up. SHFE aluminum, SHFE zinc, and SHFE lead all fell less than 1%, SHFE tin dropped 1.01%, and SHFE nickel rose 0.25%. In addition, alumina rose 2.33%, lithium carbonate increased 0.57%, silicon metal fell 1.12%, and polysilicon declined 0.81%. The ferrous metals series all fell, with iron ore down 0.92%, rebar down 0.88%, HRC down 0.55%, and stainless steel down 0.39%. In the coking coal and coke sector, coking coal fell 2.97%, and coke dropped 0.91%. In the overseas metal market, as of 11:46 a.m., LME metals were all down, with LME zinc and LME nickel both falling 0.91%, LME copper down 0.43%, LME aluminum down 0.87%, and LME lead down 0.76%. LME tin fell 0.32%. In the precious metals market, as of 11:46 a.m., COMEX gold fell 0.22%, and COMEX silver dropped 1.29%. Domestically, SHFE gold rose 1.62%, and SHFE silver increased 2.32%. As of the midday close, the most-traded contract for the European Containerized Freight Index fell 0.9%, closing at 2065.6 points. As of 11:46 a.m. on June 3, some midday futures market movements: 》June 3 SMM Metal Spot Prices Spot and Fundamentals Copper: Today, spot #1 copper cathode in Guangdong was quoted at a discount of 120 yuan/mt to a premium of 0 yuan/mt against the front-month contract, with an average discount of 60 yuan/mt, down 75 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 180 yuan/mt to a discount of 160 yuan/mt, with an average discount of 170 yuan/mt, down 100 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,180 yuan/mt, up 70 yuan/mt from the previous trading day, and the average price of SX-EW copper was 78,070 yuan/mt, up 45 yuan/mt from the previous trading day. Spot Market: Guangdong's inventory increased significantly after the Dragon Boat Festival holiday, mainly due to increased arrivals and decreased outflows from warehouses... 》Click for details Macro Front Domestic: [Stable Demand Growth: Total Social Logistics Volume in China Increased 5.6% YoY from January to April] The China Federation of Logistics and Purchasing (CFLP) released logistics operation data for the first four months of this year today (June 3). In April, China's logistics operations withstood external shocks and pressures, demonstrating strong resilience and development potential, maintaining an overall stable and improving development trend. From January to April, the total social logistics volume in China reached 115.3 trillion yuan, up 5.6% YoY. [China Federation of Industry and Commerce Automobile Dealers Chamber of Commerce Proposes: Resolutely Resist "Cut-throat Competition" Primarily in the Form of "Price Wars"] The China Federation of Industry and Commerce Automobile Dealers Chamber of Commerce announced that, under the influence of the current industry market situation, the automobile dealership sector has been severely affected and impacted, facing a series of issues such as increased operating pressures, reduced profitability, high vehicle inventory, and tight working capital, which have had a serious impact on the sustainable and healthy development of the industry. Particularly since the second quarter of this year, amid the impact of a new round of "price wars," the situation faced by automotive dealers has become increasingly severe. To maintain a good, healthy, and fair market competition order and promote the high-quality development of the automotive industry, including the automotive dealership sector, the National Federation of Industry and Commerce Automotive Dealers Chamber of Commerce proposes the following initiatives: 1. The entire industry should prioritize the overall goal of achieving high-quality development in China's automotive industry, strictly adhere to the principle of fair competition, and resolutely resist cut-throat competition behaviors primarily in the form of "price wars." 2. Focus on brand image. Prevent frequent adjustments to sales policies and product selling prices from increasing the difficulty of sales for dealers and affecting the brand's image among consumers. 3. Improve the living conditions of automotive dealers. Adhere to the principle of producing based on sales, reasonably set annual production targets for enterprises and sales targets for dealers, refrain from shifting inventory burdens onto dealers or forcing them to purchase vehicles, and effectively reduce dealers' inventory levels. Address the issue of inverted purchase-sale prices, promptly provide rebates to dealers, shorten their payment collection cycles, reasonably determine the number of test-drive vehicles, and alleviate dealers' liquidity pressures. 4. Optimize business policies. Reasonably set evaluation indicators for dealers, exercise caution in using fines, and avoid coercing dealers to meet corresponding targets through evaluations. 5. Improve the network exit mechanism. Do not coerce dealers to exit the network or close stores under the pretext of optimizing network channels. Provide appropriate compensation to dealers who genuinely need to exit the network or close stores. [PBOC's Open Market Operations Net Withdraw 375.5 Billion Yuan Today] The People's Bank of China (PBOC) conducted 454.5 billion yuan in 7-day reverse repo operations today. As 830 billion yuan in 7-day reverse repos matured today, the net withdrawal for the day amounted to 375.5 billion yuan. [Over 1.6 Trillion Yuan in Reverse Repos Mature in the Open Market This Week] Over 1.6 trillion yuan in reverse repos will mature in the open market this week. Specifically, the maturity scales for reverse repos from Tuesday to Friday are 830 billion yuan, 215.5 billion yuan, 266 billion yuan, and 291.1 billion yuan, respectively, all with a 7-day tenor. [SZSE: Adjusts Constituent Stocks of Shenzhen Component Index, ChiNext Index, Shenzhen 100 Index, and Other Indices] The Shenzhen Stock Exchange (SZSE) announced that, in accordance with index compilation rules, the Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. have decided to implement regular adjustments to the constituent stocks of indices such as the Shenzhen Component Index, ChiNext Index, and Shenzhen 100 Index on June 16, 2025. ► The central parity rate of the RMB against the US dollar in the interbank foreign exchange market on June 3 was 7.1869 RMB per US dollar. US dollar updates: As of 11:46, the US dollar index rose by 0.24%, trading at 98.93. Uncertainty in the global trade situation has risen, with the US dollar index still hovering below 99. In terms of data, the US ISM manufacturing PMI for May fell to 48.5, remaining below the 50 mark for the third consecutive month, limiting the room for the US dollar to rebound. Currently, the market expects that there is about a 70% probability that the US Fed will implement at least two 25-basis-point interest rate cuts within the year. Chicago Fed Chairman Austan Goolsbee also stated that once the uncertainty surrounding tariff policies is eliminated, the Fed will begin the process of cutting interest rates. Regarding other currencies: According to CCTV News, on June 2 local time, a spokesperson for the European Commission expressed deep regret over the US announcement to increase steel and aluminum tariffs from 25% to 50%, a decision that further exacerbates economic uncertainty on both sides of the Atlantic. EU Trade Commissioner Maroš Šefčovič will meet with US Trade Representative Katherine Tai in Paris, France, on June 4. Bank of Japan Governor Kazuo Ueda stated in parliament that uncertainty surrounding trade policies is extremely high. The Japanese economy is experiencing a mild recovery, despite some signs of weakness. If economic and price trends align with expectations, interest rates will continue to be raised. Ueda noted that US tariffs may impact the Japanese economy through various channels, but the first impact is likely to be felt by export enterprises. (Financial Associated Press) In terms of data: Today, data such as Switzerland's May CPI year-on-year rate, the eurozone's May harmonized CPI year-on-year rate - unadjusted preliminary value, the eurozone's April unemployment rate, the revised month-on-month rate of US April durable goods orders, the month-on-month rate of US April factory orders, and the US April JOLTs job openings will be released. Additionally, South Korea held its presidential election on June 3, with the stock market closed for the day. The Zhengzhou Commodity Exchange's call auction period for all futures and options contracts was from 8:55 to 9:00 on June 3, with night session trading resuming that evening. Austan Goolsbee, a 2025 FOMC voting member and Chicago Fed Chairman, participated in a Q&A session. Fed Chairman Jerome Powell delivered opening remarks at an event. South Korea initially scheduled its presidential election for June 3. The Reserve Bank of Australia released the minutes of its June monetary policy meeting. Bank of Japan Governor Kazuo Ueda delivered a speech. South Korea held its general election. In terms of crude oil: As of 11:46, crude oil futures were all down, with US crude oil up 0.7% and Brent crude oil up 0.59%. The market is concerned about supply issues, which are supporting oil prices. Iran will reject the US nuclear agreement proposal, which is crucial for easing sanctions on Iran, thereby limiting Iran's supply and providing support for oil prices. Meanwhile, Canadian production has been affected by wildfires. In addition, the ongoing conflict between Russia and Ukraine continues to exacerbate supply concerns and regional risk premiums. Wildfires in Alberta, Canada, have led to the temporary shutdown of some oil and natural gas production, which may reduce supply and exacerbate supply concerns. The wildfires have affected over 344,000 barrels per day of oil sands production, accounting for approximately 7% of Canada's total crude oil production. (Webstock Inc.) Spot Market Overview: ► Post-holiday inventory increased significantly, with suppliers actively reducing prices to sell off goods. [SMM South China Spot Copper] ► No significant restocking activities were observed downstream post-holiday, with mediocre trading performance in the market. [SMM North China Spot Copper] ► [SMM Analysis] Demand growth remains stable, with an increase in manganese dioxide production in May. ► [SMM Analysis] Downstream demand remains robust, with an increase in production schedules for LMO enterprises in May. The noon review of spot prices for other metals will be updated later. Please refresh to view.

According to relevant information reports, after 2024, Ukrainian drones launched a series of attacks on Russian domestic oil facilities, and 13 refineries in nine regions of Russia were attacked 15 times.

LME copper prices opened at a low of $8,840/mt on Monday, reaching a low of $8,835.5/mt, and dropped to $8,840/mt after hitting a high of $8,933/mt, and finally closed at $8,863/mt.

Overnight, the most-traded SHFE 2405 aluminum contract opened at 19,490 yuan/mt, with its lowest and highest at 19,485 yuan/mt and 19,625 yuan/mt before closing at 19,590 yuan/mt, up 135 yuan/mt or 0.69%.

LME copper prices opened at $8968/mt and closed at $8847/mt last Friday, down 1.30%, with the highest of $8971/mt and the lowest of $8833/mt.

At last Friday’s night session, the most-traded SHFE 2405 aluminum contract opened at 19,445 yuan/mt, with its lowest and highest at 19,400 yuan/mt and 19,595 yuan/mt before closing at 19,510 yuan/mt, up 110 yuan/mt or 0.57%.

Since the outbreak of the Russia-Ukraine conflict, Europe has imposed multiple rounds of sanctions on Russia, and the spillover effects of the sanctions have led to high inflation in Europe and continued pressure on the economy.

On Wednesday (August 9), local time, European natural gas prices rose by as much as 40%, the largest increase since March 2022, due to possible strikes at some Australian plants and increased risks of liquefied natural gas (LNG) supply shortages.

LME copper closed at $8,604/mt in overnight trading, a drop of 0.65%.

SHFE 2308 nickel contract opened at 171,470 yuan/mt overnight, and closed at 172,990 yuan/mt, up 2,060 yuan/mt.