SMM June 4 News: Metals market: As of the midday close, domestic market base metals fell across the board. SHFE copper, SHFE aluminum, SHFE lead, and SHFE zinc all dropped over 1%. SHFE tin fell 0.86%. SHFE nickel fell 2.55%. In addition, the most-traded casting aluminum futures fell 0.69%, and the most-traded alumina futures fell 2.02%. The most-traded lithium carbonate futures extended the decline from the previous three trading days, falling another 3.17%. The most-traded silicon metal futures fell 0.52%. The most-traded polysilicon futures fell 1.95%. Ferrous metals mostly fell. Iron ore dropped 1.47%, rebar fell 0.38%, hot-rolled coil fell 0.32%, and stainless steel fell 2.19%. Coking coal and coke: the most-traded coking coal contract rose 4.7%, and the most-traded coke contract rose 2.25%. Overseas market base metals: as of 11:45, LME metals generally fell. LME copper fell 0.09%, LME aluminum fell 0.12%, and LME lead fell 0.37%. LME zinc, LME tin, and LME nickel all fell within 0.3%. Precious metals: as of 11:45, COMEX gold rose 0.58%, and COMEX silver fell 0.05%. Domestic market precious metals: the most-traded SHFE gold futures fell 0.2%, and the most-traded SHFE silver futures fell 1.93%. In addition, as of the midday close, the most-traded platinum futures fell 1.81%, and the most-traded palladium futures fell 3.54%. As of the midday close, the most-traded Europe containerized freight index contract rose 0.44% to 3,758 points. As of 11:45 on June 4, midday futures quotes for selected contracts: Spot and fundamentals Aluminum: On June 4, SMM A00 aluminum (Foshan) was quoted at 24,130, down 190, at a discount of 190 to the current-month contract, narrowing by 60 (unit: yuan/mt). Futures stopped rising and turned lower today, while South China spot prices bucked the trend and stabilized with an upward bias... Macro front Domestic: [MIIT: From January to April, China's above-scale electronic information manufacturing value-added output was up 14% YoY] From January to April, the value-added output of above-scale electronic information manufacturing was up 14% YoY, 8.4 and 1.4 percentage points higher than the growth rates of overall industry and high-tech manufacturing over the same period, respectively. In April, the value-added output of above-scale electronic information manufacturing was up 15.6% YoY. Among major products, mobile phone production reached 452 million units, up 0.3% YoY, of which smartphone production was 390 million units, up 6.5% YoY; micro-computer equipment production was 95.426 million units, down 10% YoY; integrated circuit production was 176.97 billion units, up 24.7% YoY. (MIIT Weibo) [State Grid Corporation of China's Peak Power Load to Exceed 1.3 Billion kW This Summer, Up ~6% YoY] According to State Grid Corporation of China, this summer's maximum power load in its operating area was projected to exceed 1.3 billion kW, up approximately 6% YoY. To fully ensure safe power grid operation and reliable power supply, State Grid Corporation of China accelerated supply assurance capacity building, continued to improve market-based power trading, and promoted efficient utilization of clean energy. Currently, 168 key projects for peak summer power supply were under accelerated construction. (CCTV) The PBOC announced that, based on the demand of primary dealers in open market operations, the volume of the 7-day reverse repo operation on June 4 was zero. 101.3 billion yuan in reverse repos matured today. US dollar: As of 11:45, the US dollar index fell 0.04% to 99.5. According to the CME "FedWatch": the probability of the US Fed keeping rates unchanged through June was 98.4%, with a 1.6% probability of a cumulative 25 bps interest rate cut. The probability of the US Fed keeping rates unchanged through July was 90.2%, with an 8.4% probability of a cumulative 25 bps rate hike and a 1.4% probability of a cumulative 25 bps interest rate cut. US Fed's Logan stated that US Fed officials may need to raise interest rates later this year to bring inflation down to the 2% target. She noted that the US labour market was "broadly in balance," investment in artificial intelligence was booming, and financial conditions remained "accommodative." However, she added that the current inflation trajectory did not appear to be pulling back toward the US Fed's 2% target. "These conditions suggest that current monetary policy is not restraining the economy," "I am increasingly concerned that achieving a full restoration of price stability, while appropriately balancing both sides of the US Fed's dual mandate, may require raising interest rates later this year." The US Fed Beige Book noted that overall, prices rose at a moderate to strong pace, with most districts reporting inflation rates higher than in the previous report. Districts cited energy costs related to the Middle East conflict as a primary driver of inflationary pressures, with impacts extending to shipping, packaging, groceries, and fertilizers. Non-labour costs continued to rise faster than selling prices, raising broader concerns about margin compression. The ability to pass on higher costs varied across industries, particularly among consumer-facing companies. Some regions noted that enterprises across multiple areas had adopted strategies to cope with inflation, including supply chain optimization, product adjustments, reducing supply, and temporarily absorbing higher costs to maintain client demand. (Jin10 Data APP) Data: Data to be released today included US May Challenger enterprise layoffs, US initial jobless claims for the week ending May 30, US May Global Supply Chain Pressure Index, Eurozone April retail sales MoM, Switzerland May CPI MoM, and Switzerland May seasonally adjusted unemployment rate. In addition, at 2:00 the US Fed released the Beige Book on economic conditions, and 2026 FOMC voter and Dallas Fed President Logan delivered a speech. At 15:00, the Ministry of Commerce held the first regular press conference of June, and China's refined oil products entered a new round of price adjustment window. ECB President Lagarde delivered a speech, 2027 FOMC voter and Richmond Fed President Barkin participated in a fireside chat, and Bank of England Governor Bailey spoke at the Investment Association conference. Crude oil: As of 11:45, oil prices in both markets declined, with WTI down 0.94% and Brent down 1.03%. According to CCTV News, on local time June 3, US President Trump stated that negotiations with Iran were progressing very well and a new round of talks could be held this weekend. Once an agreement is signed, the Strait of Hormuz will immediately reopen. (Jin10 Data APP) Expectations of an end to Middle East conflicts put oil prices under pressure. Investinglive analyst Eamonn Sheridan stated that reports indicated Israel and Lebanon had reached a ceasefire framework agreement under US guidance, with both sides set to resume full talks during the week of June 22, contingent on Hezbollah's complete withdrawal from southern Lebanon. The geopolitical risk premium in the oil market will digest this headline and largely treat it as a priced-in factor. (Jin10 Data APP) The US-Iran conflict is pushing the global oil market toward a tipping point. US crude oil and petroleum product inventory has fallen to its lowest level in over two decades, while US crude oil exports hit a record high in May, rapidly depleting domestic reserves. Analysts warned that if the Strait of Hormuz remains closed, oil prices could surge significantly within weeks. According to data released by the US Energy Information Administration (EIA) on Wednesday, for the week ending May 29, total US crude oil and petroleum product inventory decreased by 10.6 million barrels from the previous week to 1.57 billion barrels, the lowest level since 2004 . Commercial crude oil inventory (excluding the Strategic Petroleum Reserve) fell by 8 million barrels in a single week to 433.7 million barrels, marking the sixth consecutive weekly decline, far exceeding analysts' prior expectations of 3.3 million barrels. (Wall Street Journal) Spot Market Overview: ► ► ► ► ► ► ► ► ► ►

[SMM Tin Morning Brief: The Most-Traded SHFE Tin Contract Continued to Rally During the Night Session, Further Suppressing Spot Market Transactions]

Second-life battery market prices remained stable this week. Cost side, lithium carbonate prices continued to pull back, cobalt sulphate weakened slightly, nickel sulphate saw a mild rise, and the overall raw material cost center shifted downward, theoretically exerting downward pressure on second-life battery cell prices, but price transmission takes time. Meanwhile, second-life and Grade A/B battery cell pricing always references new battery cell prices, and new ternary battery cells have recently seen widespread price increases, which directly underpinned the price floor of the second-life battery market, offsetting the pressure from declining raw materials. Supply side, enterprise shipments maintained a steady pace, supply circulation was normal, with no concentrated shipments or stockpiling, nor any surge in new supply sources, and the supply landscape remained stable with no supply-demand imbalance. Demand side, ternary second-life battery cells lacked upward demand support due to the continued narrowing of end-use demand from the EV sector. Energy storage demand remained relatively strong, but the Grade A/B market had already gone through a round of price increases earlier, with current prices already at a relatively high level. End-user acceptance of high prices was limited, and momentum for further price increases was insufficient. Overall, the second-life battery market remained in a state of declining raw materials and stable prices. Prices were unlikely to show significant fluctuations in the short term, and attention going forward should be paid to lithium carbonate trends and whether new ternary battery cell price increases can transmit to the second-life battery market.

[SMM Morning Meeting Minutes: Bulls Exit, Zinc Prices Retreat After Rapid Rise] Overnight, LME zinc recorded a long upper shadow bearish candlestick, with the upper Bollinger Bands forming resistance above. Overnight LME zinc retreated after a rapid rise. On the macro front, renewed tensions in the Middle East intensified inflation concerns, and bulls exiting the market dragged zinc prices lower.

Futures: Overnight, LME lead opened at $2,011.5/mt, briefly touched a low of $2,010/mt during the Asian session before fluctuating upward; during the European session, it probed a high of $2,022/mt before pulling back slightly, ultimately closing at $2,015.5/mt, up 0.12%. Overnight, the most-traded SHFE lead 2607 contract opened at 16,740 yuan/mt, fluctuating around the intraday moving average, with a low of 16,710 yuan/mt and a high of 16,775 yuan/mt, ultimately closing at 16,745 yuan/mt, down 0.06%. On the macro front: Uzbekistan fully resumed gold exports in April. Malaysia reportedly imposed a 10% tariff on imports of certain gold bars. According to Yonhap News Agency, a South Korean court rejected an injunction request to suspend negotiations with Samsung's main union. Micron Technology's total market capitalization reached $1 trillion, setting a new all-time high again. Since the beginning of this year, Micron Technology has accumulated a gain of 210%. Data from the China Academy of Information and Communications Technology showed that in April 2026, mobile phone shipments in the Chinese market reached 25.733 million units, up 2.8% YoY, of which 5G phones accounted for 24.736 million units. : In the Jiangsu, Zhejiang, Shanghai market, warrant quotations were limited, and suppliers continued to offer cargoes self-picked up from primary lead smelter production sites. Meanwhile, as SHFE lead retreated after rapid rise, suppliers had mixed sentiments on shipments — some eased their stance on holding prices firm while others held firm on prices for shipments. Mainstream origin primary lead was quoted at premiums of 0-50 yuan/mt against the SMM #1 lead average price, with a few regions at premiums of 120-200 yuan/mt. Additionally, secondary lead smelters continued to operate at a loss, and their quotations remained relatively firm, with secondary refined lead quoted at premiums of 0-50 yuan/mt against SMM #1 lead on an ex-factory basis. Downstream enterprises had limited rigid demand, especially with lead prices fluctuating at highs, and downstream enterprises made few inquiries, with spot market transactions turning sluggish. Inventory: On May 26, LME lead inventory decreased by 775 mt to 285,700 mt; as of May 25, SMM lead ingot social inventory across five locations decreased by 3,200 mt compared with May 18. Lead Price Forecast for Today: Consumption side, the lead-acid battery market remained in off-season mode, with downstream enterprises' rigid demand still limited. Combined with lead prices rebounding, downstream enterprises became more cautious in procurement. Supply side, primary lead and secondary lead enterprises maintained stable to slightly rising production, with secondary lead losses beginning to recover and market circulating supply increasing, as spot lead trading gradually shifted to discounts (against SMM #1 lead). Meanwhile, tight supply of high-grade lead ingots in the Southeast Asian market has yet to ease, while Australian lead-zinc smelters are ramping up production. With bullish and bearish factors coexisting, lead prices are expected to continue fluctuating at highs. Data Source Statement: All data other than public information is SMM processed data based on public information, market communication, and SMM's internal database model, for reference only and does not constitute decision-making advice.

MIIT released the economic performance of the communications industry for the first four months of 2026. In the first four months, cumulative telecom business revenue reached 594.1 billion yuan, down 1.7% YoY. Total telecom business volume, calculated at constant prices of the previous year, grew 8% YoY. As of month-end April, the total number of mobile phone users of the three basic telecom enterprises and China Broadnet reached 1.838 billion, a net increase of 10.92 million from year-end. Among them, 5G mobile phone users reached 1.262 billion, a net increase of 57.58 million from year-end, accounting for 68.7% of total mobile phone users. As of month-end April, the total number of 5G base stations reached 5.009 million, a net increase of 171,000 from year-end, accounting for 38.7% of total mobile base stations, up 0.5 percentage points from Q1.

The rally that propelled gold and silver to record-breaking highs in 2025 could pick up again if a U.S.-Iran peace deal is reached, market watchers told CNBC as prices ticked higher on Thursday.

[US Lithium Mine Development Boom: From One Mine to Over 100 Planned Projects by 2030] The US lithium industry is standing at the threshold of a historic transformation, about to leap from its current status of having only one producing lithium mine to becoming a significant participant in the global critical battery metals market. Currently, only one lithium mine is operating across the entire US, but this landscape is about to change rapidly. By 2030, at least six new projects are expected to come into production successively, with another 13 projects close behind. This round of expansion is primarily concentrated in the geologically favorable arid regions of the Southwest, but this is merely the beginning of a potential mining boom. According to the latest industry data, enterprises have identified over 100 potential lithium ore extraction areas nationwide. Behind this aggressive expansion is the continued climb in lithium ore demand from EV batteries and renewable energy ESSs—both of which are indispensable key elements of the energy transition. The rapid expansion of lithium mining scale has raised important questions from the outside world about environmental impacts, water resource consumption, and how to strike a balance between domestic mineral security and ecological protection. In this race for self-sufficient supply of "white gold," community residents and environmental protection advocates are closely watching how this industrial transformation will advance and take shape in some of America's most fragile desert ecosystems. Source: https://www.envirolink.org [Lithium Ore Reserves in Eastern US States May Replace Over a Century of Import Demand] U.S. Geological Survey (USGS) scientists announced this discovery, estimating its scale sufficient to replace over three hundred years of lithium import demand. The US currently relies on imports for nearly half of its lithium consumption, a dependency that has long been a concern for energy security analysts. Lithium occupies a central position in the modern economy, serving as a critical material for lithium-ion batteries used in smartphones, laptops, EVs, and aerospace alloys. Against the backdrop of accelerating global demand and intensifying geopolitical pressures, domestic reserves of this scale carry significant strategic importance. This discovery came at a sensitive period in the global mineral landscape. Australia currently supplies nearly half of global lithium production, while China not only has considerable production but also dominates global refining and consumption. Thirty years ago, the US was the world's largest lithium producer, but that position was long since relinquished. Whether this discovery can help the US return to that position remains to be seen, but the scale of data cited is sufficient to warrant serious attention. The scale of this discovery is most vivid in numbers. According to USGS estimates, the reserves are sufficient to support the construction of 1.6 million grid-scale batteries, and officials stated they could power 130 million EVs or support 180 billion laptops running cumulatively for a thousand years. USGS also estimates that the reserves could support the production of 500 billion mobile phones, equivalent to approximately 60 devices for every person currently on Earth. Perhaps the most striking figure in the USGS assessment is this: measured against last year's consumption levels, the reserves are sufficient to replace 328 years of US lithium import demand. This is not a forecast of future demand, but merely a baseline comparison between existing underground reserves and historical US import demand. Source: https://indiandefencereview.com [European Metals' Cinovec Lithium Mine Project EIA Passes Czech Ministry of Environment Review] European Metals Holdings Limited (ASX/AIM: EMH) announced that its flagship Cinovec lithium mine project in the Czech Republic has achieved a significant milestone in environmental permitting. The Czech Ministry of Environment has completed its review and officially released the Environmental Impact Assessment (EIA) report, with a public hearing scheduled to be held in the coming weeks. Meanwhile, a cross-border EIA process involving German authorities has been formally initiated to address the transnational impacts of the project along the Czech-German border. For investors tracking the development progress of the Cinovec project, these developments are not routine updates — the company has explicitly identified the EIA release as a critical path period for obtaining final approval and advancing the project to implementation. "We are pleased with the progress the project team has made on environmental permitting for the Cinovec project. The release of the EIA report by the Czech Ministry of Environment is a critical path period for obtaining final EIA approval and advancing the Cinovec project." — Executive Chairman Keith Coughlan Source: [Latin America's Lithium Supply Gap: Structural Barriers Constraining Capacity Release] The global energy transition is built on a series of assumptions, and one of the most consequential is that the world's largest lithium reserves, concentrated in a narrow strip of South America, will be able to reliably convert into the battery-grade lithium materials increasingly and urgently needed for EVs, power grid ESSs, and consumer electronics. However, this assumption is being put to a severe test. Latin America's lithium supply gap is not a matter of salt flats being depleted or aquifers running dry, but rather a widening chasm between underground reserves and market-accessible capacity. Reserves are abundant, yet production-ready capacity falls far short. More critically, this gap continues to widen at a pivotal moment when global demand is accelerating its climb. To understand the root causes, one must look beyond the surface figures and examine in depth the structural mechanisms behind the entire chain from lithium geological deposits to battery cathode material. Source:

[SMM News] According to data released by CAICT, in March 2026, mobile phone shipments in the Chinese market totaled 21.15 million units, down 7.1% YoY.

This week, the second-life battery cell market maintained overall price stability. Cost side, lithium carbonate prices fluctuated upward this week, nickel sulphate prices climbed steadily, while cobalt sulphate prices continued their weak downward trend. Overall, raw material futures showed divergent trends, but the strengthening of lithium and nickel categories would push up battery cell recycling and processing production costs. However, there was a certain time lag in the top-down transmission of raw material price changes to the battery cell market, forming strong bottom support for the market. Supply side, at the current stage, the overall supply volume of second-life and Grade A/B battery for well-known mobile phone cell markets remained stable, battery cell enterprises maintained orderly shipments pace, market circulating sources showed no significant incremental changes, and the supply side overall maintained a loose and balanced pattern without causing notable disruption to prices. Demand side, as the Labour Day holiday approached, some downstream enterprises initiated pre-holiday restocking and stockpiling activities, driving a slight recovery in rigid market demand. However, driven by the transmission of earlier high costs, second-life battery market prices had already risen last week, and the current overall price level was already in a relatively high level range. End-user terminals showed weak willingness to accept high-priced sources and remained cautious about purchasing at high prices. The demand side could hardly continue to drive prices to rise, with most participants purchasing as needed. Under the counterbalance of multiple factors, second-life battery market prices this week basically maintained a sideways and steady trend.