SMM May 9 News: Metals market: Overnight domestic market base metals mostly fell. SHFE copper rose 0.53%. SHFE aluminum fell 0.16%, SHFE lead fell 0.15%. SHFE zinc fell 1.19%. SHFE tin fell 1.13%. SHFE nickel fell 0.67%. In addition, the most-traded alumina futures contract fell 1.37%, and foundry aluminum continuous contract fell 0.24%. Overnight ferrous metals mostly fell. Iron ore was flat at 816.5 yuan/mt, stainless steel fell 1.05%, rebar edged up slightly, and hot-rolled coil rose 0.14%. Coking coal and coke: coking coal fell 0.39%, coke fell 0.43%. Overnight overseas market metals: LME base metals showed mixed performance. LME copper rose 1.59%. LME aluminum rose 0.34%, LME lead was flat at $1,977.5/mt. LME zinc fell 0.17%. LME tin fell 1.26%. LME nickel fell 0.89%. Overnight precious metals : COMEX gold rose 0.27%, COMEX gold gained 1.71% on a weekly basis; COMEX silver rose 0.82%, COMEX silver gained 5.76% for the week. Overnight SHFE gold continuous contract fell 0.21%, with its weekly gain at 3.24%; SHFE silver continuous contract rose 0.09%, with SHFE silver gaining 11.4% on a weekly basis. As of 8:39 AM on May 9, overnight closing prices: Macro front China: [General Administration of Customs: China's goods trade imports and exports grew 14.9% in the first 4 months, with electromechanical product exports up 17.6%] According to customs statistics, in the first 4 months of 2026, China's total goods trade imports and exports reached 16.23 trillion yuan, up 14.9% YoY (the same hereinafter). Of this, exports were 9.33 trillion yuan, up 11.3%; imports were 6.9 trillion yuan, up 20%. In April, China's total goods trade imports and exports were 4.38 trillion yuan, up 14.2%. Of this, exports were 2.48 trillion yuan, up 9.8%; imports were 1.9 trillion yuan, up 20.6%. [Four departments: Explore direct-connection power supply from nuclear and hydrogen energy to computing facilities, continuously increase the share of green electricity in computing facilities] The Plan proposes enhancing the diversified power supply capacity for computing facilities. Based on actual conditions such as the scale of computing facility grid connections, power grid voltage levels, power grid new energy penetration rates, power quality requirements, and computing facility business types, standards for energy supply planning and construction of computing facilities are to be established and improved. It explores direct-connection power supply from nuclear energy, hydrogen energy, and other energy sources to computing facilities. Encouraging computing power facilities to be equipped with grid-forming ESS to enhance power supply stability and active support capability for the power system. [Three Departments Issued the "Implementation Opinions on Standardized Application and Innovative Development of Intelligent Agents"] The Cyberspace Administration of China, the National Development and Reform Commission (NDRC), and the Ministry of Industry and Information Technology jointly issued the "Implementation Opinions on Standardized Application and Innovative Development of Intelligent Agents." The Implementation Opinions clarified that the development of intelligent agents should adhere to the basic principles of safety and controllability, standardized and orderly development, innovation-driven approach, and application-led guidance, and proposed measures in four areas: First, consolidating the development foundation, improving the technology base, and building standards and protocols. Second, safeguarding the safety bottom line, clarifying product guidelines, preventing safety risks, improving governance systems, and strengthening industry self-discipline. Third, strengthening application-led guidance, proposing 19 typical application scenarios around scientific research, industrial development, consumption stimulation, people's well-being, and social governance. Fourth, building an innovation ecosystem, promoting industrial cooperation, and strengthening application promotion. [China's April Warehousing Index Remained in Expansion Territory, Warehousing Industry Continued Stable and Positive Trend] The China Federation of Logistics and Purchasing released the April China Warehousing Index today (9th). The index continued to stay in expansion territory, with the warehousing industry maintaining a stable and positive operating trend. The April China Warehousing Index was 51%, remaining in expansion territory for two consecutive months. In terms of sub-indices, the new orders index, facility utilization rate index, and ending inventory index remained in expansion, while the average inventory turnover index maintained a relatively high prosperity level, indicating steady growth in warehousing business demand, good cargo turnover efficiency, and smooth supply chain connectivity. By product category, the peak production and construction season drove a rebound in warehousing demand for bulk commodities such as chemicals, coal, and machinery equipment, while Labour Day holiday stockpiling boosted notable growth in warehousing demand for consumer goods such as food, home appliances, and agricultural by-products. In terms of market expectations, the April business activity expectations index was 55.1%, remaining at a relatively high level, reflecting that enterprises maintained optimistic expectations. Overall, the warehousing industry operated steadily in April, market vitality continued to be released, and Q2 got off to a good start. (CCTV) [Shanghai Shipping Exchange (SSE): Geopolitical Situation Tended to Stabilize, Freight Rates Rose on Most Routes] The Shanghai Shipping Exchange (SSE) stated in its weekly report that the ceasefire in the Middle East military conflict continued, with the geopolitical situation remaining relatively stable, though the future situation still faced significant uncertainty. This week, China's export container shipping market remained stable, with freight rates on most routes edging up, driving the composite index higher. On May 8, the Shanghai Export Containerized Freight Index (SCFI) stood at 1,954.21 points, up 2.2% from the previous period. US Dollar: The US dollar index fell 0.43% overnight, closing at 97.86. On a weekly basis, the US dollar index posted its second consecutive weekly decline, down 0.36% for the week. Data released by the US Bureau of Labor Statistics on Friday showed that non-farm payrolls increased by 115,000 in April, marking the first consecutive growth in nearly a year and the largest two-month gain since 2024, far exceeding the median forecast of 65,000 from economists surveyed by Bloomberg. March data was also revised up to 185,000. The unemployment rate remained unchanged at 4.3%, in line with expectations. (Wallstreetcn) "Fed whisperer" Nick Timiraos: An increasing number of sell-side institutions and Fed watchers are removing or postponing interest rate cut expectations from their outlooks, including several forecasters who adjusted their views after the April non-farm payrolls data release. Currently, half of them believe there will be no interest rate cuts this year (given the inertia of such forecasts, this camp is likely to continue to grow). Additionally, Chicago Fed President Goolsbee stated that all interest rate options are currently on the table, not just rate cuts. At the end of April, the US Fed kept interest rates unchanged, with three officials opposing language in the statement that hinted the next move could be a rate cut, arguing that the possibility of a rate hike should be preserved. Goolsbee's remarks reflected a shift among Fed policymakers — no longer considering near-term rate cuts, primarily due to the energy price shock triggered by the Iran war pushing up inflation. He reiterated that both rate cuts and rate hikes are on the table, and expressed anxiety about inflation, noting that price pressures exist beyond the energy shock. (Jin10 Data) As consumers worried about the impact of inflation on personal finances and purchasing conditions, US consumer confidence fell to a new all-time low in recent weeks. University of Michigan data showed that the preliminary May consumer sentiment index fell to 48.2 from 49.8 in April. Consumers expected prices to rise at an annual rate of 4.5% over the next year, a slight pullback MoM; longer-term inflation expectations for the next 5 to 10 years stood at 3.4%. As Americans' anxiety over overall living costs intensified, compounded by a sharp rise in gasoline prices, consumer confidence remained subdued. Data from the American Automobile Association (AAA) showed that the average US gasoline price this week surpassed $4.50 per gallon for the first time since July 2022, having risen more than 50% since the outbreak of the Iran war. Survey director Joanne Hsu stated: "About one-third of consumers voluntarily mentioned gasoline prices, and about 30% mentioned tariff concerns."Overall, consumers continued to feel the impact of cost pressure, with the primary driver being surging gasoline prices. "The May preliminary current conditions index fell to 47.8, hitting a record low; the expectations index rebounded for the first time since January. Consumers' assessment of their own current financial situation dropped to the lowest level since 2009, and the buying conditions indicator also fell to a five-month low. (Jin10 Data) On the macro front: Data to be released next week include: China April CPI YoY, China April PPI YoY, US April existing home sales annualized, Germany April CPI MoM final, Germany May ZEW Economic Sentiment Index, Eurozone May ZEW Economic Sentiment Index, US April NFIB Small Business Optimism Index, US weekly ADP employment change for the week ending April 25, US April CPI YoY (non-seasonally adjusted), US April seasonally adjusted CPI MoM, US April seasonally adjusted core CPI MoM, US April core CPI YoY (non-seasonally adjusted), Japan March trade balance, France Q1 ILO unemployment rate, France April CPI MoM final, Eurozone Q1 GDP YoY revised, Eurozone Q1 seasonally adjusted employment QoQ final, Eurozone March industrial output MoM, US April PPI YoY, US April PPI MoM, UK Q1 GDP YoY preliminary, UK March three-month GDP MoM, UK March manufacturing output MoM, Canada March wholesale sales MoM, US initial jobless claims for the week ending May 9, US April retail sales MoM, US April import price index MoM, US May NY Fed Manufacturing Index, US April industrial output MoM, and China April total electricity consumption YoY (TBD). In addition, key events to watch next week include: US Treasury Secretary Bessent visiting Japan to meet with the Japanese Prime Minister, central bank governor, and finance minister; the Bank of Japan releasing the summary of opinions from its April monetary policy meeting; FOMC permanent voting member and NY Fed President Williams participating in a panel discussion on monetary policy; Chicago Fed President Goolsbee participating in a Q&A session hosted by a local chamber of commerce; 2028 FOMC voting member and Boston Fed President Collins speaking at the Boston Economic Club; 2026 FOMC voting member and Minneapolis Fed President Kashkari participating in a discussion hosted by a local chamber of commerce; the Bank of Canada releasing its monetary policy meeting minutes; 2026 FOMC voting member and Dallas Fed President Logan participating in a dialogue on the energy sector; 2026 FOMC voting member and Cleveland Fed President Hammack delivering opening remarks at an online discussion on central bank independence; US Fed Governor Barr delivering a speech; FOMC permanent voting member and NY Fed President Williams participating in a discussion; and the National Energy Administration releasing total electricity consumption data around the 15th of each month. Crude oil: Overnight, the two benchmark oil futures moved sideways, with WTI down 0.14% and Brent up 0.19%. On a weekly basis: WTI futures declined for the week, falling 7.12%; Brent also declined for the week, falling 7.32%. Middle East conflicts have resurfaced, and market concerns over the fragility of ceasefire agreements persist. A CMG reporter learned on the 8th that ship-tracking data showed that as of the morning of the 8th local time, no large vessels had transited the Strait of Hormuz in the past 24 hours. This reportedly marked the second consecutive day since the 7th that no large commercial vessels had passed through the strait. (CCTV) US energy services company Baker Hughes said in its closely watched report that US energy enterprises increased oil and natural gas rig counts for the third consecutive week, marking the first three-week streak of increases since early February. Data showed that for the week ending May 8, the total US oil and natural gas rig count, a leading indicator of future production, increased by 1 to 548, the highest since early April. (Webstock Inc.) According to foreign media reports, sources said that since shipping through the Strait of Hormuz was disrupted, enterprises including Aramco Trading and Abu Dhabi National Oil Company (Adnoc) of the UAE have continued to transport crude oil cargoes through the strait. Although current shipment volumes represent only a fraction of what they were before Iran closed this oil route nearly 10 weeks ago, the actions of both companies serve as a reminder to the market that some supply can still reach global markets. Sources said Adnoc was among the first companies to attempt moving crude oil, fuel, and natural gas cargoes out through the strait. The company supplied clients with Upper Zakum crude, a grade typically loaded at Zirku Island, but in this case delivered in Fujairah waters outside the Persian Gulf. According to Vortexa data, at the end of April, a very large crude carrier (VLCC) loaded with Abu Dhabi crude turned off its transponder and transited the Strait of Hormuz out of the Persian Gulf. Kpler data showed that as of Thursday, another VLCC, Fujairah Energy, remained anchored near Abu Dhabi waters, carrying a half-load of crude obtained from Zirku Island via ship-to-ship transfer. A chartering agreement showed that the vessel had been temporarily chartered by Adnoc and plans to load crude between May 15 and 17 for delivery to Asia. (Jin10 Data) Citi stated: The current base-case scenario projects an average Brent crude price of $110 in Q2 2026, followed by a decline to $95 in Q3 and $80 in Q4. Fitch expects Brent crude prices to remain at $100–$110 per barrel from May to July during the Strait of Hormuz blockade, before pulling back to $70 per barrel by September. In addition, JPMorgan analysts stated that US gasoline prices "could very well" rise to $5 per gallon as refineries prioritize jet fuel production at the expense of other products. The analyst team noted in a Friday report that in Asia, currently the region hardest hit by the energy crisis, the price shock triggered by the Iran war is transmitting significantly faster through refined product markets such as jet fuel and diesel than through the crude oil market. If refinery operations continue to be constrained by limited crude oil supply, fuel prices could become "the primary transmission channel for demand destruction." "In this scenario, crude oil prices could still stabilize around $100 per barrel even as refined product crack spreads widen significantly. At that point, the next phase of the shock would no longer resemble a traditional crude oil price surge, but rather a refining and end-user fuel supply crisis." The product most visibly impacted at present is jet fuel, which is prompting refineries to maximize jet fuel output as much as possible, and this typically means diesel production declines. The chain reaction has also spread to gasoline production. Analysts said: "This may explain why US gasoline prices have already risen to $4.55 per gallon, and also why the risk of gasoline prices reaching $5 can no longer be ignored." (Jin10 Data) Recommended Reading:

[Geopolitical and Supply-Demand Factors Intertwined, SHFE and LME Aluminum Maintain a Range-Bound Weak Pattern in the Short Term] With the macro situation fluctuating, domestic aluminum prices underperformed LME aluminum under high inventory pressure. Attention should still be paid to whether the turning point in China's inventory can arrive smoothly.

SMM May 8 News: Metals market: Overnight base metals showed mixed performance across domestic and overseas markets. LME zinc led the gains with a 1.1% rise, SHFE tin rose 0.76%, LME aluminum fell 1.34%, LME tin fell 1.25%, and the remaining metals posted % changes within 1%. The alumina most-traded contract fell 0.03%, while the foundry aluminum most-traded contract rose 0.02%. Overnight ferrous metals: stainless steel fell 0.97% to lead the declines, iron ore temporarily settled flat at 815 yuan/mt, and rebar rose 0.4%. Coking coal and coke showed mixed performance, with coking coal up 0.46% and coke down 0.11%. Overnight precious metals: COMEX gold rose 0.04% and COMEX silver rose 2.09%. In China, SHFE gold rose 0.12% and SHFE silver rose 2.49%. PBOC: China's gold reserves stood at 74.64 million ounces (approximately 2,321.56 mt) at the end of April, up 260,000 ounces (approximately 8.09 mt) MoM from 74.38 million ounces (approximately 2,313.48 mt) at the end of March, marking the 18th consecutive month of gold accumulation. (Jin10 Data APP) As of 6:43 AM on May 8, overnight closing prices: Macro Front China: [Domestic tourism during this year's Labour Day holiday reached 325 million trips, up 3.6% YoY] During the Labour Day holiday, domestic tourism reached 325 million trips nationwide, up 3.6% YoY; total domestic tourism spending was 185.492 billion yuan, up 2.9% YoY. (CCTV News) (Jin10 Data APP) [MOFCOM spokesperson answered reporters' questions on the EU's ban on funding projects using Chinese inverters] According to media reports, EU officials stated that the EU will ban funding for projects using inverters from China and other "high-risk countries." When asked for China's comment, the MOFCOM spokesperson said China has noted the relevant reports. Without any actual evidence, the EU for the first time designated China as a so-called "high-risk country" and used this as a pretext to ban funding for projects using Chinese inverters. This constitutes stigmatization of China and imposes unfair and discriminatory treatment on Chinese products. China rejects and firmly opposes this. China urges the EU to immediately stop stigmatizing China by labeling it a "high-risk country" and to revoke the unfair and discriminatory practices against Chinese products. China will closely monitor and carefully assess the impact of EU policies on the interests of Chinese enterprises and China-EU industrial and supply chains, and will take measures to safeguard the legitimate rights and interests of Chinese enterprises. (MOFCOM) (Jin10 Data APP) US dollar: As of the overnight close, the US dollar index rose 0.27% to 98.28. New York Fed President Williams said on Thursday that demand for US Treasuries remained strong despite the government's massive borrowing. Williams said the US Fed was watching the government's extremely high borrowing levels "very closely." He noted that while it may be surprising, demand for US Treasuries remained "enormous," and "the US is still seen as the strongest economy in the world" and an ideal safe haven for capital, "even with all the geopolitical issues and other factors, that hasn't changed." Williams also said the US economy had shown considerable resilience amid the energy shock triggered by the Middle East war. He said that given surging energy prices, "the biggest question" was how the situation would evolve, adding that regarding inflation that continued to stay high, the US Fed would "make sure" and commit to bringing inflation back down to the 2% target. (Jin10 Data APP) San Francisco Fed President Daly downplayed the divergence in the US Fed's statement, suggesting she would not dissent like some of her colleagues. She said the wording of the statement was less important than actions, and the real signal from the meeting was the unanimous agreement on the decision. Last month, three officials objected to language hinting at future interest rate cuts, arguing that the energy shock and uncertainty from the Iran war made a signal that "rates could go up or down" more appropriate. Daly, who does not have a vote this year, said the public understood the US Fed's price stability mandate. Daly said there were no signs yet that energy prices were pushing up medium- or long-term inflation expectations. "It's too early to tell. If the conflict ends and oil prices pull back without transmitting to the broader economy, the fundamental dynamics from before the conflict are expected to return." She was committed to achieving the 2% inflation target but should not overreact to the expected duration of the energy shock. She said policy was "slightly restrictive," and if the war were resolved, it would pose downward pressure on inflation; the labour market was stable and not generating inflationary pressure. (Jin10 Data APP) [US Fed's Kashkari: Next interest rate move uncertain due to Iran conflict] Minneapolis Fed President Neel Kashkari said the Middle East conflict had added uncertainty to the interest rate outlook. "Given the uncertainty surrounding the Iran war, I actually don't know what's going to happen," Kashkari said at an event in Marquette, Michigan. "If the Strait of Hormuz remains closed for an extended period, the next interest rate move could very well need to be upward." (Wallstreetcn) According to CME "FedWatch": the probability of the US Fed holding rates unchanged through June was 96.4%, with a 3.6% probability of a cumulative 25 bps interest rate cut. The probability of holding rates unchanged through July was 90.2%, with a 9.5% probability of a cumulative 25 bps cut and a 0.2% probability of a cumulative 50 bps cut. (Jin10 Data APP) Macro: Data to be released today include: US April unemployment rate, US April seasonally adjusted non-farm payrolls, US April average hourly earnings YoY, US April average hourly earnings MoM, US May preliminary one-year inflation expectations, US May preliminary University of Michigan consumer sentiment index, US March wholesale sales MoM, Germany March seasonally adjusted industrial output MoM, Germany March seasonally adjusted trade balance, Switzerland April consumer confidence index, UK April Halifax seasonally adjusted house price index MoM, and Canada April employment figures. In addition, a new round of domestic refined oil price adjustments will open. 2026 FOMC voter and Minneapolis Fed President Kashkari will participate in a fireside chat; 2026 FOMC voter and Cleveland Fed President Hammack will deliver a speech; FOMC permanent voter and New York Fed President Williams will deliver a speech; US Fed Governor Lisa Cook will deliver a speech; and Bank of England Governor Bailey will speak on global imbalances. Crude oil: As of the overnight close, oil prices on both markets rose, with WTI up 2.71% and Brent up 2.13%. Citi's global head of commodities research Max Layton said oil prices would continue to swing wildly until there was clarity on whether Iran and Trump could reach a deal. "It's hard to predict whether Iran will reach a deal, and in an environment where you simply don't know whether a deal will be reached, the market is inevitably news-driven and will experience wild swings." Crude oil fell for a third consecutive trading day on Thursday. Layton said the decline was partly driven by "the market's hope that the two sides could begin deal negotiations." However, physical crude oil market pressures in the Middle East persisted. Traders said that a key crude oil loading terminal in Oman, outside the Strait of Hormuz, experienced loading delays in April, disrupting shipping plans and potentially delaying deliveries to buyers. Layton said the global physical crude oil market had accumulated "quite substantial buffer inventory" of approximately 700 million to 800 million barrels over the past 12 months. "We are burning through this inventory rapidly," he said, but the impact would "manifest gradually over a longer period." He added that before actually lowering oil price forecasts, he needed to see whether Iran was ready to seriously reach a deal with the US. Last month, after the second round of US-Iran peace talks failed to take place, Citi raised its Brent crude benchmark price forecast by $15 to $110/barrel and pushed back its baseline expectation for the reopening of the Strait of Hormuz from mid-to-late April to the end of May. (Jin10 Data APP) International Energy Agency (IEA) Executive Director Fatih Birol said the agency was prepared to release more crude oil from its strategic reserves if war-induced supply disruptions persisted. He added that the agency had so far released 20% of its available oil reserves to ease rising prices. Releasing additional crude oil onto the international market would limit demand for US crude at all levels. Demand side, Marathon's refinery in Carson, California reported that it planned to conduct flaring activities from May 8 to May 12 due to maintenance work. (Wallstreetcn)

[SMM Aluminum Price Weekly Review: Macro Situation Fluctuates, Domestic Aluminum Prices Under Pressure at the Top Amid High Inventory]

[SMM Aluminum Price Weekly Review: Ex-China Supply Gap Supports Prices to Hold Up Well, China Focuses on Aluminum Ingot Social Inventory Turning Point]

[SMM Aluminum News Flash] On May 7, LME aluminum inventory was recorded at 358,200 mt, down 2,000 mt from the previous day, a decrease of 0.56%; over the past week, LME aluminum inventory decreased by a cumulative 8,825.00 mt, a decrease of 2.40%; over the past month, LME aluminum inventory decreased by a cumulative 51,700 mt, a decrease of 12.61%.

SMM May 7: Metals market: As of the midday close, base metals in the domestic market showed mixed performance. SHFE copper rose 0.43%, SHFE aluminum fell 1.76%, SHFE lead fell 0.36%, SHFE zinc rose 0.41%, SHFE tin rose 3.16%, and SHFE nickel fell 3.33%. In addition, the most-traded casting aluminum futures fell 1.85%, the most-traded alumina contract rose 0.49%, the most-traded lithium carbonate contract rose 0.08%, the most-traded silicon metal contract rose 2.03%, and the most-traded polysilicon futures rose 4.79%. Ferrous metals showed mixed performance. Iron ore rose 0.55%, rebar rose 0.68%, hot-rolled coil rose 0.29%, and stainless steel fell 1.12%. Coking coal and coke: the most-traded coking coal contract fell 1.22%, and the most-traded coke contract fell 1.2%. Overseas base metals, as of 11:41, LME metals mostly fell. LME copper fell 0.22%, LME aluminum fell 1.16%, LME lead rose 0.23%, LME zinc fell 0.29%, LME tin fell 1.71%, and LME nickel fell 0.13%. Precious metals, as of 11:41, COMEX gold rose 0.39% and COMEX silver rose 1.35%. Domestic precious metals: the most-traded SHFE gold contract rose 1.11%, and the most-traded SHFE silver contract rose 3.43%. In addition, as of the midday close, the most-traded platinum futures rose 3.21%, and the most-traded palladium futures rose 1.71%. As of the midday close, the most-traded Europe containerized freight index contract fell 3.35%, closing at 2,355.5 points. As of 11:41 on May 7, midday futures quotes for selected contracts: Spot cargo and fundamentals Nickel: On May 7, SMM #1 refined nickel prices fell 5,050 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,150 yuan/mt, down 100 yuan/mt from the previous trading day... Macro front China: [PBOC reverse repo operations resulted in a net drain of 99.2 billion yuan for the day] The PBOC conducted 27 billion yuan of 7-day reverse repo operations today. As 126.2 billion yuan of 7-day reverse repos matured today, a net drain of 99.2 billion yuan was achieved for the day. [HKEX CEO: LME warehouses in Hong Kong nearing full capacity] HKEX CEO Bonnie Y. Chan said that the storage capacity of a series of LME-approved warehouses in Hong Kong was nearing saturation. The LME began approving metal warehouses in Hong Kong last year. Speaking at a seminar during LME Asia Week in Hong Kong, Chan said the LME currently had 15 warehouses in Hong Kong, compared with just 4 a year ago. She called this an important milestone in establishing physical market connectivity. LME and Hong Kong Exchanges will explore more collaborative projects, including futures and RMB-denominated products, to build a comprehensive commodities ecosystem in Asia. (Jin10 Data) US dollar: As of 11:41, the US dollar index fell 0.01% to 98.01. Chicago Fed President Goolsbee said on Wednesday that the war with Iran increasingly appeared to be an inflationary shock to the economy. Although the impact on employment and economic growth was not yet evident, concerns about supply chain disruptions and sustained price increases were intensifying. "This is not yet a 'stagflation' shock," meaning the kind that hits the job market while pushing up inflation and forces the US Fed to decide which of its policy objectives faces greater risk, Goolsbee said after attending the Milken Institute conference in Los Angeles. "This is just an inflation shock. And the longer this persists, the more uneasy I become." According to CME "FedWatch": the probability of the US Fed keeping rates unchanged through June was 93.5%, with a cumulative 25-basis-point interest rate cut probability of 6.5%. The probability of the US Fed keeping rates unchanged through July was 86.5%, with cumulative probabilities of a 25-basis-point cut at 13.0% and a 50-basis-point cut at 0.5%. (Jin10 Data) Other currencies: On the first day of resumed trading in the Japanese market, the yen broadly stabilized against other G10 currencies and Asian currencies. However, analysts noted that the yen's downside room against the US dollar is likely to be limited due to potential foreign exchange intervention by Japanese authorities. Analysts at Maybank stated in a foreign exchange research report that the unpredictability of Japanese authorities' actions would limit the upside room for USD/JPY in the short term. Given that three suspected interventions have already occurred after the currency pair breached the 157.00 level, the market is now increasingly wary of pushing the dollar above that level. (Jin10 Data) Data: China's April foreign exchange reserves (TBD), US April Challenger enterprise layoffs, US initial jobless claims for the week ending May 2, US March construction spending MoM, US April New York Fed 1-year inflation expectations, Eurozone March retail sales MoM, France March trade balance, and Switzerland April seasonally adjusted unemployment rate are scheduled for release today. In addition, 2027 FOMC voter and Chicago Fed President Goolsbee will participate in a panel discussion at a conference. Crude oil: As of 11:41, oil prices in both markets rose, with WTI up 0.86% and Brent up 0.87%. The market weighed the prospects of a Middle East peace agreement. A decline in US crude oil inventory last week supported oil prices. US EIA Cushing, Oklahoma crude oil inventory for the week ending May 1 was -648,000 barrels, compared to the previous value of -796,000 barrels. US EIA crude oil inventory for the week ending May 1 was -2.313 million barrels, versus expectations of -3.291 million barrels and a previous value of -6.234 million barrels. US EIA Strategic Petroleum Reserve inventory for the week ending May 1 was -5.224 million barrels, compared to the previous value of -7.121 million barrels. According to federal data released Wednesday, US energy inventories continued to decline rapidly due to supply shocks caused by the Middle East war, highlighting the tightening supply problem as the energy crisis continued to spread. According to data from the US Energy Information Administration (EIA), refined product inventories, including diesel, plunged by 1.3 million barrels last week to the lowest level since April 2003. These inventories are currently 11% below the five-year seasonal average. Due to refinery shutdowns, diesel prices recently hit record highs in Wisconsin, Illinois, and Michigan. (CNN) According to a person familiar with the matter, the Trump administration is exploring the use of oil resources beneath US military bases and other Department of Defense sites to replenish the nation's dwindling emergency reserves. The source said no decision has been made on this potential move. This comes as the US government has pledged to explore innovative ways to replenish the Strategic Petroleum Reserve, which was further depleted during the Iran war. (Jin10 Data) According to a foreign media survey, OPEC's crude oil production fell to a 36-year low last month as the ongoing Iran war continued to obstruct Persian Gulf exports and forced more oil fields to shut down. The survey showed that OPEC's April crude oil production decreased by 420,000 barrels per day to 20.55 million barrels per day, the lowest level since 1990, mainly dragged down by further production declines in Kuwait and Iran. The survey showed that Kuwait saw the largest production drop last month, with daily output falling by 470,000 barrels to 800,000 barrels per day, less than one-third of pre-war levels. The country's exports have fallen to just 22,000 barrels per day. Iran followed, with production declining by 180,000 barrels per day to 3.05 million barrels per day, doubling the cumulative production cuts since the war began. OPEC also suffered another blow last week. The UAE announced its withdrawal from the organization, following years of friction with the group's leader Saudi Arabia over production limits. The April survey still included UAE data, as the UAE's withdrawal did not officially take effect until May 1. (Bloomberg) Spot market overview: ► ► ► ► ► ► ► ► ►

[Geopolitical Disruptions Combined with Elevated Inventory Highlight LME Outperforming SHFE in Aluminum Market] Overall, the core pattern of LME outperforming SHFE in the aluminum market is difficult to reverse in the short term. LME strength will support room for SHFE aluminum to catch up after the holiday, but high domestic inventory and weak demand will cap overall gains. Going forward, the focus will be on the pace of aluminum ingot destocking in China and the strength of rigid demand release from downstream resumption of work and production resumptions.

SMM May 7 News: Metals market: Overnight, base metals in both domestic and overseas markets showed mixed performance. SHFE tin continued its strong momentum from the previous day's session, ultimately closing up 5.01%. SHFE nickel fell 2.68%. LME tin led the gains with a remarkable 9.01% increase, LME copper rose 2.22%, and LME zinc gained 1.52%. LME aluminum fell 1.02%, LME nickel dropped 2.22%, and the remaining metals posted % changes within 1%. The alumina front-month contract rose 1.13%, while the foundry aluminum front-month contract fell 1.03%. Overnight ferrous metals: stainless steel fell 1.15%, hot-rolled coil rose 0.26%, and rebar gained 0.68%. Coking coal and coke: coking coal fell 0.92%, and coke dropped 0.64%. Overnight precious metals: COMEX gold rose 2.95%, and COMEX silver gained 5.77%. In China, SHFE gold rose 0.98%, and SHFE silver gained 2.8%. As of 6:45 AM on May 7, overnight closing prices: Macro Front China: [Ministry of Foreign Affairs: China and the US are maintaining communication regarding President Trump's visit to China] On May 6, Ministry of Foreign Affairs spokesperson Lin Jian hosted a regular press conference. A reporter asked about US President Trump's recent remarks concerning China. In response, Lin Jian stated that China and the US are maintaining communication regarding President Trump's visit to China. (CCTV News) (Jin10 Data APP) People's Bank of China: The weighted average interest rate on newly issued commercial personal housing loans nationwide in Q1 2026 was 3.06% . (Jin10 Data APP) US dollar: As of the overnight close, the US dollar index fell 0.49 to 98.02. Chicago Fed President Goolsbee said on Wednesday that the war with Iran increasingly resembles an inflationary shock to the economy. While the impact on employment and economic growth is not yet apparent, concerns about supply chain disruptions and sustained price increases are intensifying. "This is not yet a 'stagflationary' shock" — the kind that hits the job market while pushing up inflation, forcing the US Fed to decide which of its policy objectives faces greater risk — Goolsbee said after attending the Milken Institute conference in Los Angeles. "This is simply an inflationary shock. And the longer this persists, the more uneasy I become." (Jin10 Data APP) Chicago Fed President Goolsbee warned against instinctively cutting interest rates in response to faster productivity growth, as such a phenomenon can sometimes push up inflation. In prepared remarks released ahead of a panel discussion at the Milken Institute Global Conference on Wednesday local time, Goolsbee said the US Fed's response to faster productivity growth "depends in large part on whether the productivity growth happens unexpectedly or is expected to happen in the future." He said in the first scenario, inflation could be suppressed, allowing for interest rate cuts. In the latter scenario, additional investment and spending driven by productivity growth could push up inflation, requiring higher interest rates. Additionally, he emphasized the need to be wary of consumption and investment driven by future growth expectations. "The more intense the hype, the greater the need for rate hikes to prevent overheating," he said. (Jin10 Data APP) St. Louis Fed President Musalem said there is significant uncertainty surrounding the US economic and monetary policy outlook, but he believes that relative to employment risks, inflation risks are currently rising. Musalem said on Wednesday: "Inflation is clearly above our 2% target. We face risks on both the employment and inflation fronts. Based on my assessment, risks are tilting more toward inflation rather than employment." Musalem said the US Fed's benchmark policy rate is currently at a neutral level that neither stimulates nor restrains the economy, or possibly slightly accommodative. He said: "There are very plausible scenarios that require us to hold the current policy rate unchanged for a period of time." However, he also noted that he sees scenarios that could require officials to cut interest rates further, or to raise rates. (Jin10 Data APP) According to CME "FedWatch": The probability of the US Fed holding rates unchanged through June is 93.5%, with a 6.5% probability of a cumulative 25 basis point cut. The probability of holding rates unchanged through July is 86.5%, with a 13.0% probability of a cumulative 25 basis point cut and a 0.5% probability of a cumulative 50 basis point cut. (Jin10 Data APP) On the macro front: Today, China's April foreign exchange reserves (TBD), US April Challenger job cuts, US initial jobless claims for the week ending May 2, US March construction spending MoM, US April New York Fed 1-year inflation expectations, Eurozone March retail sales MoM, France March trade balance, and Switzerland April seasonally adjusted unemployment rate will be released. In addition, 2027 FOMC voter and Chicago Fed President Goolsbee will participate in a panel discussion at a conference. Crude oil: As of the overnight close, oil prices in both markets fell together, with WTI down 5.93% and Brent down 7.2%. FXPro chief market analyst Alex Kuptsikevich said in a report that as the US is unwilling to further escalate tensions in the conflict with Iran, the oil market has now priced in a peace deal as the base case scenario. "Once shipping resumes quickly, tankers trapped in the Strait of Hormuz will release supply in a concentrated burst in the short term, pushing down Brent and WTI crude prices." However, he added that since global inventories have already been depleted and repairs to damaged infrastructure in Gulf states still require time, oil prices are unlikely to return to pre-war levels before the end of this year. "The decline in Brent and WTI prices will likely be very rapid but will not last long." (Jin10 Data APP) According to market observer The Kobeissi Letter, approximately 70 minutes before Axios reported that the US and Iran were close to reaching consensus on a "14-point" agreement to end the war, crude oil short positions worth approximately $920 million were established. At 3:40 AM ET today (3:40 PM Beijing time), with no major news, the market established nearly 10,000 crude oil short contracts. In notional value, this trade was approximately $920 million — an unusually large transaction for the 3:40 AM time slot. 70 minutes later at 4:50 AM ET (4:40 PM Beijing time), Axios reported that the US was "close to" reaching a "memorandum of understanding" to end the Iran war. By 7:00 AM ET (7:00 PM Beijing time), oil prices had fallen more than 12%, and the aforementioned crude oil short positions had unrealized gains of approximately $125 million. (Jin10 Data APP) According to a foreign media survey, as the Iran conflict continued to hinder Persian Gulf exports and forced more oil fields to shut down, OPEC's crude oil production fell to a 36-year low last month. The survey showed that OPEC's April crude oil production decreased by 420,000 barrels per day to 20.55 million barrels per day, the lowest level since 1990, mainly dragged down by further declines in Kuwait and Iran production. The survey showed Kuwait had the largest production decline last month, with daily output falling by 470,000 barrels to 800,000 barrels per day, less than one-third of pre-war levels. The country's exports had fallen to just 22,000 barrels per day. Iran followed, with production declining by 180,000 barrels per day to 3.05 million barrels per day, doubling the cumulative production cuts since the war began. OPEC also suffered another blow last week. The UAE announced its withdrawal from the organization, following years of friction with the group's leader Saudi Arabia over production limits. The April survey still included UAE data, as the UAE's withdrawal did not officially take effect until May 1. (Bloomberg) (Jin10 Data APP) US EIA Strategic Petroleum Reserve inventory for the week ending May 1 was at its lowest since the week of December 6, 2024, and domestic crude oil production was at its lowest since the week of January 30, 2026. (Jin10 Data APP)

[SMM Aluminum News Flash] On May 6, LME aluminum inventory was recorded at 360,200 mt, down 2,500 mt from the previous day, a decrease of 0.69%. Over the past week, LME aluminum inventory decreased by a cumulative 7,975.00 mt, a decline of 2.17%. Over the past month, LME aluminum inventory decreased by a cumulative 51,700 mt, a decline of 12.56%.