SMM April 21 News: Metals Market: As of the daytime close, domestic market base metals mostly fell, with SHFE lead being the only one to rise, up 0.48%. SHFE aluminum led the decline with a drop of 1.23%, while the rest of the metals fell less than 1%. The alumina front-month contract rose 1.95%, and the casting aluminum alloy front-month contract fell 1.36%. In addition, the lithium carbonate front-month contract fell 2.84%, the polysilicon front-month contract rose 2.56%, and the silicon metal front-month contract fell 0.35%. The Europe containerized freight front-month contract rose 1.37% to 2,143.4. On the ferrous metals front, all rose except stainless steel. Stainless steel fell 1%, while hot-rolled coil and rebar both rose over 0.7%, with hot-rolled coil up 0.72% and rebar up 0.76%. For coking coal and coke, coking coal rose 1.53% and coke rose 2.42%. On the overseas market front, as of 15:03, overseas base metals all fell except LME lead. LME lead rose 0.28%, while the rest of the metals fell less than 1%. On the precious metals front, as of 15:03, COMEX gold fell 0.7% and COMEX silver fell 1.35%. In China, SHFE gold fell 1.08% and SHFE silver fell 2.75%. In addition, the platinum front-month contract fell 1.08% and the palladium front-month contract fell 1.01%. Market data as of 15:03 today Macro Front China: [Good Start! China's Raw Material Industry Value-Added Up 4.6% YoY in Q1] According to a press conference held by the State Council Information Office this morning, China's raw material industry achieved a good start in Q1. Data showed that in Q1, the value-added of the raw material industry was up 4.6% YoY. Among them: the value-added of the petrochemical and chemical industry was up 7.4% YoY, and the value-added of the non-ferrous metals industry was up 2.6% YoY. Zhang Yunming, Vice Minister of MIIT, stated that in Q1, the cement industry reduced and retired nearly 30 million mt of capacity through capacity replacement with reduction. Meanwhile, the revenue of the green building materials industry grew steadily, and the number of certified green building material products increased 5% compared to the end of 2025. Innovation achievements in the raw material sector also accelerated, with China's independently developed T1200-grade ultra-high-strength carbon fiber industrial-grade product making its global debut, expected to be deeply applied in strategic emerging industries such as aerospace, low-altitude economy, and humanoid robots. (CCTV News) [MIIT: Fully Activate the Innovation Engine, Accelerate Frontier Material Development and Key Material Breakthroughs] Zhang Yunming, Vice Minister of MIIT, stated at the State Council Information Office press conference that in Q1, they implemented the new round of work plans for stabilizing growth in ten key industries in detail, focused on promoting the optimization and upgrading of capacity structure, and the raw material industry achieved a good start, with more vigorous transformation steps and a stronger industrial foundation. Next, the Ministry of Industry and Information Technology is expected to thoroughly implement the deployment of the Outline of the 15th Five-Year Plan, adhere to a combination of “strengthening the fundamentals” and “fostering the new,” and enhance overall planning and policy supply. On the one hand, it will focus on solidifying the foundation for upgrading traditional industries, promoting optimization of existing capacity and a green, safe transition; on the other hand, it will fully energize the innovation engine, accelerate the layout of frontier materials and breakthroughs in key materials, and provide more solid and reliable material support for developing new quality productive forces and advancing new-type industrialization. (Jinshi Data) [MIIT: Q1 Industrial Robot Production up 33.2% YoY; Drones, AI Glasses, and More Becoming Increasingly Diverse] This morning, the State Council Information Office held a press conference to brief on industrial and information technology development in Q1 2026. In Q1, the application of new technologies such as artificial intelligence accelerated and expanded in the electronics and consumer goods industries; end-use products such as drones and AI glasses became increasingly diverse; and production of products such as industrial robots and integrated circuits rose 33.2% and 24.3% YoY, respectively. (CCTV News) [PBOC Reverse Repo Operations Recorded a Net Injection of 4 billion yuan on the Day] The PBOC conducted 5 billion yuan of 7-day reverse repo operations today. As 1 billion yuan of 7-day reverse repos matured today, it recorded a net injection of 4 billion yuan on the day. (Jinshi Data) US dollar: As of 15:03, the US dollar index was at 98.14, up 0.09%. Middle East tensions pushed up oil prices and supported the dollar; a plunge in US consumer confidence weighed on the real economy; and Japan’s manufacturing sector was under pressure. Meanwhile, Fed Chairman nominee Warsh was set to face a hearing, and how to balance interest rate cuts and inflation became the market focus. (Jinshi Data) The US Congress will hold the first confirmation hearing for Fed Chairman nominee Warsh on Tuesday local time. Warsh will pledge to lawmakers to maintain strict independence on interest rate matters. According to opening remarks obtained in advance by Politico, Warsh said interest rate decisions must be strictly independent of political considerations, and monetary policy should not become a tool for short-term political objectives; he also stressed that the US Fed’s credibility comes from institutional constraints and policy discipline. Warsh said the central bank should listen to differing views, and politicians expressing opinions on interest rates is not a real threat; rather, it is the US Fed’s own discipline and rigorous approach that sustains its independent status. He emphasized that price stability is the US Fed’s shield and pledged to take full responsibility for it, “making no excuses and shirking no responsibility.”Regarding the continuous expansion of the US Fed's functional boundaries in the post-crisis era, Warsh also issued a warning, arguing that the Fed should not extend its reach into fiscal policy or social policy areas where it lacks statutory authority. The US Senate Banking Committee is scheduled to hold a confirmation hearing for Warsh at 10 PM Beijing time on April 21. In addition, on April 21, according to Zhuifeng Trading Desk, Citi laid out clear bullish reasons for interest rate cuts in its latest research report, arguing that crude oil supply disruptions were only temporary disturbances and that the path to interest rate cuts, though bumpy, was clearly directional; Deutsche Bank, however, poured cold water on such optimism, warning that US Fed policy was already at a neutral position and was expected to maintain current interest rates indefinitely. As the two major investment banks clashed in their views, the upcoming March retail sales data is set to become the key litmus test to break the deadlock. This data will not only reveal the true destructive impact of high oil prices on core consumption but will also directly determine the US Fed's near-term policy path. (Wall Street Insights) On the macro front: Data to be released today include the US March retail sales MoM, US February business inventory MoM, US March pending home sales index MoM, Germany's April ZEW Economic Sentiment Index, UK February three-month ILO unemployment rate, UK March unemployment rate, UK March jobless claims, Switzerland's March trade balance, and the Eurozone April ZEW Economic Sentiment Index. In addition, attention should also be paid to the US Senate Banking Committee's confirmation hearing on Kevin Warsh's nomination as Fed Chairman, and European Central Bank President Lagarde's keynote speech at the 75th anniversary annual reception of the Association of German Banks. Furthermore, China is about to open a new round of refined oil price adjustment window. On the crude oil front: As of 15:03, oil prices in both markets fell together, with WTI down 1.05% and Brent down 0.73%. The market held optimistic expectations that US-Iran negotiations would continue this week. According to information from maritime intelligence firm Tanker Trackers, a tanker belonging to the National Iranian Tanker Company returned to Iran via the relevant maritime blockade line after completing the offloading of approximately 2 million barrels of crude oil in Indonesia. The tanker is currently heading to Kharg Island, Iran's main oil export hub, and is expected to arrive on the 22nd local time. The tanker reportedly departed Iran in late March, heading for the Riau Islands in Indonesia. (CCTV News) According to foreign media reports, gasoline prices in Australia fell for the third consecutive week as government measures eased the upward pressure on gas station prices triggered by the Iran war. According to data from the Australian Institute of Petroleum, in the week ending last Sunday, the national average gasoline price dropped about 5% to A$2.129 per liter (approximately $1.5279), but remained about 18% higher than at the outbreak of the conflict in early March. Diesel prices fell about 3% to A$3.089 per liter. It was reported that Canberra attempted to ease the domestic fuel crisis by sending delegations to communicate with major trading partners, covering oil transportation costs, relaxing diesel standards, cutting fuel taxes, and tapping into reserves. In addition, the government was conducting a publicity campaign aimed at encouraging Australians to reduce driving. Despite being a major energy producer and exporter, Australia still relied on imports from outside China for most of its refined fuel, and its fuel reserves were among the lowest in developed countries, making the country highly vulnerable to disruptions in global energy supply. (Jin Shi Data APP) SMM Daily Review ► ► ► ► ► ► ► ► ► ► ► ►

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

At the 2025 SMM (2nd) Global Renewable Metal Industry Chain Forum - Secondary Copper and Aluminum Forum, hosted by SMM Information & Technology Co., Ltd., Zhang Xiaoyao, the project leader of SMM Recycling, shared insights on the topic of "Driving Business Opportunities and Reducing Operating Costs: SMM Serving the Global Secondary Copper and Aluminum Metals Market."

According to data from the National Bureau of Statistics (NBS), the Producer Price Index (PPI) for industrial producers fell by 0.4% MoM in May, the same rate of decline as the previous month. On a YoY basis, it decreased by 3.3%, with the rate of decline expanding by 0.6 percentage points compared to the previous month. The main reasons for the MoM decline in PPI this month are as follows: Firstly, international imported factors influenced the price decline in related domestic industries. The downturn in international crude oil prices affected the price decline in domestic petroleum-related industries, with prices in the oil and natural gas extraction industry falling by 5.6%, prices in refined petroleum product manufacturing falling by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry falling by 1.2%. Collectively, these three industries contributed to approximately 0.23 percentage points of the MoM decline in PPI, accounting for over half of the total decline. Secondly, there was a phased downturn in the prices of certain domestic energy and raw materials. Coal demand was in the off-season, with sufficient coal reserves at power plants and ports. Additionally, the low cost and strong substitution effect of new energy power generation led to a 3.0% decline in prices in the coal mining and washing industry and a 1.1% decline in coal processing prices. Increased high-temperature and rainy weather in south China affected the construction of some real estate and infrastructure projects. Coupled with the adequate supply of building materials such as steel and cement, prices in the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry both fell by 1.0%. Collectively, these four industries contributed to approximately 0.18 percentage points of the MoM decline in PPI. In May 2025, the Producer Price Index for industrial producers fell by 3.3% YoY. In May 2025, the Producer Price Index for industrial producers nationwide fell by 3.3% YoY and 0.4% MoM, while the purchasing price index for industrial producers fell by 3.6% YoY and 0.6% MoM. On average from January to May, both the ex-factory prices and purchasing prices for industrial producers fell by 2.6% compared to the same period last year. I. Year-on-Year Changes in Producer Prices for Industrial Products In May, among the ex-factory prices for industrial producers, the price of means of production fell by 4.0%, contributing to a decline of approximately 2.98 percentage points in the overall level of ex-factory prices for industrial producers. Specifically, prices in the mining industry fell by 11.9%, prices in the raw material industry fell by 5.4%, and prices in the processing industry fell by 2.8%. The price of means of subsistence fell by 1.4%, contributing to a decline of approximately 0.36 percentage points in the overall level of ex-factory prices for industrial producers. Specifically, food prices fell by 1.4%, clothing prices remained flat, general daily necessities prices rose by 0.6%, and durable consumer goods prices fell by 3.3%. Among the purchasing prices for industrial producers, prices in the fuel and power category fell by 9.8%, prices in the ferrous metal materials category fell by 7.3%, prices in the chemical raw materials category fell by 5.4%, prices in the agricultural and sideline products category fell by 2.6%, prices in the textile raw materials category fell by 2.5%, and prices in the building materials and non-metals category fell by 1.1%. Prices in the non-ferrous metal materials and wire category rose by 4.6%. II. Month-on-Month Changes in Industrial Producer Prices In May, among the ex-factory prices of industrial producers, the prices of means of production decreased by 0.6%, contributing to a decline of approximately 0.44 percentage points in the overall ex-factory price level of industrial producers. Specifically, prices in the mining industry decreased by 2.5%, prices in the raw material industry decreased by 0.9%, and prices in the processing industry decreased by 0.3%. Prices of consumer goods remained flat. Among them, food prices decreased by 0.1%, clothing prices increased by 0.2%, and prices of general daily necessities and durable consumer goods both increased by 0.1%. Among the purchase prices of industrial producers, prices of fuels and power decreased by 2.1%, prices of chemical raw materials decreased by 1.2%, prices of ferrous metal materials decreased by 0.6%, prices of textile raw materials decreased by 0.4%, prices of building materials and non-metals decreased by 0.2%, and prices of non-ferrous metal materials and wires decreased by 0.1%; prices of agricultural and sideline products remained flat. CPI Slightly Declined in May 2025, While Core CPI Increased on a YoY Basis —Interpretation of CPI and PPI Data for May 2025 by Dong Lijuan, Chief Statistician of the Urban Department, National Bureau of Statistics (NBS) In May, the Consumer Price Index (CPI) decreased by 0.2% MoM and 0.1% YoY. Excluding food and energy prices, core CPI increased by 0.6% YoY, with the growth rate expanding by 0.1 percentage points from the previous month. The Producer Price Index (PPI) for industrial producers decreased by 0.4% MoM, with the decline remaining the same as the previous month, and decreased by 3.3% YoY, with the decline expanding by 0.6 percentage points from the previous month. China is boosting consumption with greater intensity and more precise measures, fostering the growth of new quality productive forces, improving the supply-demand relationship in some areas, and prices are showing positive changes. I. CPI Slightly Declined, While Core CPI Increased on a YoY Basis The shift from an increase to a decrease in CPI on a MoM basis was mainly influenced by the decline in energy prices. Energy prices decreased by 1.7% MoM, contributing to a decline of approximately 0.13 percentage points in CPI on a MoM basis, accounting for nearly 70% of the total decline in CPI. Among them, gasoline prices decreased by 3.8%, with the decline expanding by 1.8 percentage points from the previous month. Food prices decreased by 0.2%, with the decline being 1.1 percentage points less than the seasonal level, contributing to a decline of approximately 0.04 percentage points in CPI on a MoM basis. Among them, the market supply of seasonal vegetables increased, and fresh vegetable prices decreased by 5.9%; prices of eggs, pork, and poultry meat slightly decreased, with declines ranging from 0.3% to 1.0%; affected by factors such as heavy rainfall in some areas and the summer fishing moratorium, the supply of fresh fruits, freshwater fish, and marine fish decreased, and prices increased by 3.3%, 3.1%, and 1.5%, respectively. Consumer demand continued to recover, coupled with the impact of holidays and cultural, sports, and entertainment activities held across the country. As a result, hotel accommodation and tourism prices rose by 4.6% and 0.8%, respectively, both exceeding seasonal levels. The increase in hotel accommodation prices reached a new high for the same period in the past decade. With the arrival of the summer season and the launch of new summer clothing collections, clothing prices rose by 0.6%. The CPI declined slightly YoY, with the decline remaining the same as the previous month. Among them, energy prices fell by 6.1% YoY, with the decline widening by 1.3 percentage points from the previous month, contributing to a decrease of approximately 0.47 percentage points in the CPI YoY, which was the main factor behind the CPI's YoY decline. Policies aimed at boosting consumption continued to show positive effects, with prices in some areas showing positive changes. Core CPI rose by 0.6% YoY, with the increase widening by 0.1 percentage point from the previous month. Among them, industrial consumer goods prices excluding energy rose by 0.6%, with the increase widening by 0.2 percentage point from the previous month. Prices of gold jewelry, home textiles, and cultural and recreational durable consumer goods rose by 40.1%, 1.9%, and 1.8%, respectively, with all increases widening. Prices of gasoline-powered passenger cars and new energy passenger cars fell by 4.2% and 2.8%, respectively, with the declines narrowing. Service prices rose by 0.5%, with the increase widening by 0.2 percentage point from the previous month. Among services, rental fees for transportation vehicles, airfares, and tourism prices all turned from decline to increase, rising by 3.6%, 1.2%, and 0.9%, respectively. II. PPI Remained Low, with Prices in Some Sectors Showing Marginal Improvement The main reasons for the MoM decline in PPI this month are as follows: First, international imported factors influenced the decline in domestic prices of related industries. The decline in international crude oil prices affected the decline in domestic prices of petroleum-related industries, with prices in the oil and natural gas extraction industry falling by 5.6%, prices in the refined petroleum product manufacturing industry falling by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry falling by 1.2%. These three industries collectively contributed to a decrease of approximately 0.23 percentage points in PPI MoM, accounting for more than half of the total decline. Second, domestic prices of some energy and raw materials declined on a temporary basis. Coal demand was in the off-season, with sufficient coal reserves at power plants and ports. Additionally, the low cost and strong substitution effect of new energy power generation led to a 3.0% decline in prices in the coal mining and washing industry and a 1.1% decline in coal processing prices. Increased high-temperature and rainy weather in south China affected the construction of some real estate and infrastructure projects. Coupled with sufficient supply in the production of building materials such as steel and cement, prices in the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry both fell by 1.0%. These four industries collectively contributed to a decrease of approximately 0.18 percentage points in PPI MoM. Coupled with factors such as a higher comparison base in the same period last year, the YoY decline in PPI widened by 0.6 percentage points from the previous month. However, from the perspective of marginal changes, China has intensified the implementation of macro policies, leading to improvements in the supply-demand relationship in some industries and a positive trend in prices in certain sectors. First, the continuous growth of new consumption momentum has driven a YoY rebound in prices of consumer goods. The continuous effectiveness of policies aimed at boosting consumption has led to the release of demand for some consumer goods, driving a rebound in prices in related industries. The MoM decline in consumer goods prices turned to flatness from a 0.2% decrease in the previous month. Among them, prices for clothing, general daily necessities, and durable consumer goods rose by 0.2%, 0.1%, and 0.1%, respectively, driving the YoY decline in consumer goods prices to narrow by 0.2 percentage points compared to the previous month. From an industry perspective, prices for arts and crafts and ceremonial goods manufacturing rose by 12.8% YoY, footwear manufacturing prices increased by 0.8%, and computer whole machine manufacturing prices rose by 0.2%. The YoY declines in prices for household washing machines, television manufacturing, and automobile whole vehicle manufacturing narrowed by 1.6, 1.4, and 0.6 percentage points, respectively, compared to the previous month. Second, the development of industries such as high-end equipment manufacturing has driven a YoY increase in prices in related sectors. The steady progress in the high-end, intelligent, and green transformation of industrial development, along with the expansion of demand for high-tech products, has led to a YoY increase in prices in related industries. Prices for integrated circuit packaging and testing series, as well as aircraft manufacturing, both rose by 3.6%. Prices for wearable smart device manufacturing increased by 3.0%, microwave communication equipment prices rose by 2.1%, server prices increased by 0.8%, and prices for semiconductor device manufacturing equipment rose by 0.7%. In addition, the supply-demand relationship in new energy industries such as PV and lithium batteries has improved, with narrower YoY declines in prices. Prices for PV equipment and components manufacturing, as well as lithium-ion battery manufacturing, fell by 12.1% and 5.0%, respectively, with declines narrowing by 0.4 and 0.3 percentage points, respectively, compared to the previous month. Recommended Reading: 》National Bureau of Statistics (NBS): CPI Down 0.1% YoY and 0.2% MoM in May

As the lead industry continues to develop, the supply imbalance in the raw material sector is intensifying. In terms of lead concentrates, the tight supply situation is worsening. Additionally, due to the historically relatively high prices of gold and silver, smelters' demand for high-grade lead concentrates has increased. Meanwhile, the domestic processing fees for lead concentrates have continued to hit new lows. In terms of scrap, according to the SMM survey, in recent years, the generation of scrap batteries has not matched the processing capacity for scrap batteries. The capacity of secondary lead is in a state of oversupply. In 2024, the new capacity of secondary lead continued to increase, while the domestic supply of scrap was limited. Moreover, there was a loss of scrap in exports. Coupled with the traditional off-season in the lead-acid battery market in the first half of the year, with battery scrap volumes at a low point for the year, the supply imbalance has intensified. To enable industry peers to have a clearer and more intuitive understanding of the global market distribution of lead ingot raw material industries, SMM, in collaboration with Zhejiang Gang Lianjie Logistics Technology Co., Ltd., is proud to launch the "2025 Global Lead Ingot Raw Material Enterprise Resource Distribution Map". After annotation and typesetting, it will be printed and distributed to upstream and downstream customers in the industry. It aims to provide an authoritative, comprehensive, and professional overview of the lead ingot raw material industry, establish a communication bridge between enterprises across the industry chain, break down information barriers between upstream and downstream sectors, and jointly promote the healthy and green development and upgrading of the lead industry. Zhejiang Gang Lianjie Logistics Technology Co., Ltd., is an AAAA-level comprehensive service logistics enterprise affiliated with the Ningbo Zhoushan Port Group system. It is a joint venture established by Zhejiang Seaport Logistics Group and Box Technology (Shenzhen) Co., Ltd. It has obtained China Quality Management System Certification, with the number: 00124Q37205ROM/3302, and is a state-controlled enterprise. Relying on the brand advantages of Ningbo Zhoushan Port, the company adheres to the principle of taking Ningbo Zhoushan Port as the main body and closely revolves around the strategic business layout of Ningbo Zhoushan Port to provide customers with modern and comprehensive logistics services. The company has opened an Anhui branch in 2023, established a Malaysian subsidiary, and will open a German subsidiary in Wilhelmshaven, Germany, by the end of 2024. Currently, the Thai company has completed its registration and is in further planning. The company can provide logistics services centered on Malaysia and Thailand, radiating to various Southeast Asian countries, including but not limited to door-to-door cargo pick-up, warehouse (warehousing and in-warehouse operations), ocean freight booking, import and export customs clearance, etc. In terms of business performance, the company has ranked first in import agency volume at Ningbo Port for two consecutive years (2023 and 2024) and first in non-ferrous metal agency volume at Ningbo Port. It has also been honored with the "Top Ten Import Freight Forwarding Enterprises" award for two consecutive years in 2023 and 2024. Domestically: In terms of import business, the company provides full-chain import logistics services, covering international multimodal transport, port customs clearance, bonded customs declaration, transportation, warehousing, etc., covering almost all bulk raw materials: such as non-ferrous metals, plastic pellets, agricultural and sideline products, pulp, grain, recycled materials, hazardous goods, cold chain, bulk cargo, petroleum and petrochemical products, food, minerals, etc. Overseas: Zhejiang Gang Lianjie (Malaysia) Logistics Technology Co., Ltd. (a subsidiary), located in Selangor, Malaysia, 20 kilometers away from Port Klang West, 23 kilometers away from Port Klang North, and 34 kilometers away from the Port Klang Bonded Free Trade Zone. It is mainly engaged in international freight forwarding for imports and exports, with Malaysia as the center to radiate throughout Southeast Asia, and carries out related businesses. Contact Information Chen Dong (Imports) 13901649539 Zhu Yong, Overseas Project Leader and General Manager of the Malaysian Subsidiary 18501669898 Chen Lei (Imports) 13857876948 Shi Qihao (Imports) 13777188184 Contact Person for SMM Map Co-production Tian Cheng 19521491689 tiancheng@smm.cn

Recently, the Ministry of Industry and Information Technology announced the list of the first batch of 242 national-level key pilot-scale demonstration platforms for cultivation. Among them, the pilot-scale demonstration platform for high-end rare earth functional materials of China Rare Earth Group Innovation Technology Co., Ltd. (hereinafter referred to as "CREG Innovation") has been successfully selected for the list of key pilot-scale demonstration platforms for cultivation in the non-ferrous metals sector of the raw material industry. The pilot-scale demonstration platform for high-end rare earth functional materials of CREG Innovation is a comprehensive innovation carrier that integrates core functions such as design verification, sample trial production, and process optimization. Leveraging the resource endowments and industrial foundation of the China Rare Earth Group, the platform focuses on meeting the needs of the country's strategic emerging industries. It prioritizes the establishment of core pilot-scale production lines for high-performance rare earth permanent magnet devices, high-end micro and special motors, rare earth environmental protection catalytic materials, rare earth photo-functional ceramics and devices, rare earth aluminum-magnesium alloys, rare earth nano-powders, and more. It integrates the full-chain functions of "technology verification - process optimization - industrial application," collaborates with high-end scientific research carriers such as the National Innovation Center, academician workstations, and joint laboratories, and deeply aligns with the demands of the Guangdong-Hong Kong-Macao Greater Bay Area's new energy, electronic information, biomedical, and other 100-billion-yuan-level end-use application industrial clusters. It supports the development of strategic emerging industries and future industrial systems, accelerating the industrial application of rare earth materials in cutting-edge fields such as solid-state batteries, medical devices, intelligent robots, semiconductors, and optical information. CREG Innovation will take this selection as an opportunity to fully leverage the "bridging and linking" role of the pilot-scale demonstration platform, accelerate the advancement of technological breakthroughs and the industrialization process of high-end rare earth functional materials, and contribute core strength to serving national strategies and achieving high-level self-reliance and strength in science and technology.

According to data from the National Bureau of Statistics (NBS), in April 2025, China's consumer price index (CPI) decreased by 0.1% YoY. Specifically, prices in urban areas remained flat, while those in rural areas decreased by 0.3%. Food prices decreased by 0.2%, while non-food prices remained flat. Prices for consumer goods decreased by 0.3%, while service prices increased by 0.3%. On average from January to April, China's CPI decreased by 0.1% compared to the same period last year. NBS data also showed that in April 2025, China's producer price index (PPI) for industrial products decreased by 2.7% YoY and by 0.4% MoM. The purchase prices for industrial producers decreased by 2.7% YoY and by 0.6% MoM. On average from January to April, both the PPI for industrial products and the purchase prices for industrial producers decreased by 2.4% compared to the same period last year. Dong Lijuan, the chief statistician of the NBS's Urban Department, interpreted the CPI and PPI data for April 2025: In April, the CPI increased by 0.1% MoM, reversing the 0.4% decrease in the previous month, and decreased by 0.1% YoY, with the decline remaining the same as the previous month. The core CPI increased by 0.2% MoM, reversing the flat trend in the previous month, and increased by 0.5% YoY, with the increase remaining stable. The PPI decreased by 0.4% MoM, with the decline remaining the same as the previous month, and decreased by 2.7% YoY, with the decline expanding by 0.2 percentage points compared to the previous month. Although international imported factors have had a certain downward impact on prices in some industries, China's economic foundation is stable and resilient, various macro policies are working in synergy, high-quality development is advancing steadily, and prices in some areas are showing positive changes. In April 2025, China's PPI for industrial products decreased by 2.7% YoY In April 2025, China's PPI for industrial products decreased by 2.7% YoY and by 0.4% MoM. The purchase prices for industrial producers decreased by 2.7% YoY and by 0.6% MoM. On average from January to April, both the PPI for industrial products and the purchase prices for industrial producers decreased by 2.4% compared to the same period last year. I. Year-on-Year Changes in Producer Prices for Industrial Products In April, among the PPI for industrial products, prices for means of production decreased by 3.1%, contributing to a decrease of approximately 2.28 percentage points in the overall level of the PPI for industrial products. Specifically, prices for the mining industry decreased by 9.4%, prices for the raw material industry decreased by 3.6%, and prices for the processing industry decreased by 2.3%. Prices for means of subsistence decreased by 1.6%, contributing to a decrease of approximately 0.40 percentage points in the overall level of the PPI for industrial products. Specifically, food prices decreased by 1.4%, clothing prices decreased by 0.1%, prices for general daily necessities increased by 0.6%, and prices for durable consumer goods decreased by 3.7%. Among the purchase prices of industrial producers, prices for fuel and power fell by 7.7%, prices for ferrous metal materials fell by 6.7%, prices for chemical raw materials fell by 4.1%, prices for agricultural and sideline products fell by 2.9%, prices for textile raw materials fell by 2.3%, and prices for building materials and non-metals fell by 1.4%; prices for non-ferrous metal materials and wires rose by 8.5%. II. Month-over-Month (MoM) Changes in Industrial Producer Prices In April, among the ex-factory prices of industrial producers, prices for means of production fell by 0.5%, contributing to a decrease of approximately 0.37 percentage points in the overall level of ex-factory prices of industrial producers. Specifically, prices for the mining industry fell by 2.1%, prices for the raw material industry fell by 1.0%, and prices for the processing industry fell by 0.2%. Prices for means of subsistence fell by 0.2%, contributing to a decrease of approximately 0.05 percentage points in the overall level of ex-factory prices of industrial producers. Specifically, food prices fell by 0.1%, clothing prices rose by 0.3%, general daily necessities prices rose by 0.2%, and durable consumer goods prices fell by 0.7%. Among the purchase prices of industrial producers, prices for fuel and power fell by 2.3%, prices for chemical raw materials fell by 0.7%, prices for ferrous metal materials fell by 0.6%, prices for building materials and non-metals fell by 0.4%, and prices for agricultural and sideline products and textile raw materials both fell by 0.2%; prices for non-ferrous metal materials and wires rose by 0.7%. In April 2025, the MoM CPI shifted from decline to growth, with core CPI growth remaining stable —Interpretation of CPI and PPI Data for April 2025 by Dong Lijuan, Chief Statistician of the Urban Department, National Bureau of Statistics (NBS) In April, the Consumer Price Index (CPI) shifted from a 0.4% MoM decline in the previous month to a 0.1% MoM increase, with a 0.1% YoY decline, the same as the previous month. The core CPI shifted from flat to a 0.2% MoM increase, with a 0.5% YoY increase, maintaining stable growth. The Producer Price Index (PPI) for industrial producers fell by 0.4% MoM, the same as the previous month, and fell by 2.7% YoY, with the decline expanding by 0.2 percentage points from the previous month. Although international imported factors have had a certain downward impact on prices in some industries, China's economic foundation remains stable and resilient, with various macro policies working in synergy to advance high-quality development, leading to positive changes in prices in some areas. I. The MoM CPI shifted from decline to growth, with a slight YoY decline, and core CPI growth remained stable From a MoM perspective, the CPI shifted from decline to growth, with the increase exceeding the seasonal level by 0.2 percentage points, mainly driven by the rebound in food and travel service prices.Food prices rose 0.2% MoM, 1.4 percentage points higher than the seasonal level. Among them, beef prices increased by 3.9% due to factors such as reduced imports. As some regions entered the marine fishing moratorium period, the prices of marine fish rose by 2.6%. At the initial stage of new fruit availability, the seasonal supply of potatoes and fresh fruits decreased, leading to price increases of 4.7% and 2.2%, respectively. The prices of fresh vegetables and pork fell by 1.8% and 1.6%, respectively, with declines smaller than the seasonal level. Affected by the combined impact of recovering demand and holiday factors, travel service prices rebounded significantly. Prices of air tickets, vehicle rental fees, hotel accommodations, and tourism rose by 13.5%, 7.3%, 4.5%, and 3.1%, respectively, with increases all higher than the seasonal level, collectively contributing to a MoM rise in CPI of approximately 0.10 percentage points. Due to changes in international gold prices, the prices of domestic gold jewelry increased by 10.1%, contributing to a MoM rise in CPI of approximately 0.06 percentage points. On a YoY basis, CPI declined slightly, mainly influenced by the decline in international oil prices. Energy prices fell 4.8% YoY, with the decline expanding by 2.2 percentage points from the previous month. Among them, gasoline prices fell by 10.4%, contributing to a YoY decline in CPI of approximately 0.38 percentage points, which was the main factor driving the YoY decline in CPI. Food prices fell by 0.2%, with the decline narrowing by 1.2 percentage points from the previous month, contributing to a decline in CPI of approximately 0.03 percentage points. Core CPI, excluding food and energy prices, rose by 0.5%, with the increase remaining stable. Among them, service prices rose by 0.3%, with the increase remaining the same as the previous month. Within services, the prices of housekeeping services, elderly care services, and education services rose by 2.5%, 1.4%, and 1.2%, respectively, with overall stable increases. The prices of industrial consumer goods excluding energy rose by 0.4%, contributing to a YoY rise in CPI of approximately 0.10 percentage points. Among them, the prices of gold jewelry rose by 35.8%, with the increase slightly expanding from the previous month. The prices of clothing and communication tools rose by 1.5% and 1.0%, respectively, with increases remaining basically stable. The prices of gasoline-powered passenger cars and new energy passenger cars fell by 4.6% and 3.4%, respectively, with declines both narrowing. II. The MoM decline in PPI remained the same as the previous month, with prices in some industrial sectors continuing to show a stable and improving trend. PPI fell by 0.4% MoM, with the decline remaining the same as the previous month. The main reasons for the decline in PPI this month are as follows: First, international imported factors influenced the downward trend in domestic related industry prices. Changes in the international trade environment led to a rapid decline in the prices of some international bulk commodities, affecting the decline in domestic related industry prices. Among them, the decline in international crude oil prices influenced the MoM decline in domestic oil-related industry prices. The prices of the oil and natural gas extraction industry fell by 3.1%, the prices of refined petroleum product manufacturing fell by 2.5%, and the prices of the chemical raw materials and chemical products manufacturing industry fell by 0.6%. The decline in international prices of non-ferrous metals such as aluminum, zinc, and copper influenced the respective declines of 2.4%, 1.6%, and 0.8% in the prices of domestic aluminum smelting, zinc smelting, and copper smelting.Prices in some export-oriented industries declined on a MoM basis, with the automobile manufacturing industry seeing a 0.5% decrease. The computer, communication, and other electronic equipment manufacturing industry, furniture manufacturing industry, and fabricated metal product industry all experienced a 0.2% decline in prices. Collectively, these 10 industries contributed to an approximate 0.24 percentage point MoM decrease in the Producer Price Index (PPI). Second, domestic energy prices declined seasonally. With the complete conclusion of the northern heating season, coal demand entered the traditional off-season, leading to a 3.3% MoM decrease in both coal mining and washing industry prices and coal processing prices. The low cost and strong substitution effect of new energy power generation, coupled with increased wind power output, resulted in a 0.3% MoM decrease in prices for the electricity, heat production, and supply industry. Collectively, these three industries contributed to an approximate 0.10 percentage point MoM decrease in PPI. China has intensified and expanded its macro policies, such as promoting consumption, accelerating the growth of high-tech industries, increasing demand in some sectors, and showing positive changes in prices in certain fields. First, the supply-demand relationship in some industries has improved, with narrowing price declines. Steady progress in infrastructure construction projects across regions and good implementation of staggered production schedules by cement enterprises have led to a narrowing of the YoY decline in prices for the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry by 1.4 and 1.0 percentage points, respectively, compared to the previous month. Policies promoting consumption and equipment updates continue to show effects, with increased demand for some consumer goods and equipment manufacturing products driving price rebounds in related industries. The YoY decline in prices for household washing machines narrowed by 0.3 percentage points compared to the previous month, while the YoY decline in prices for the food manufacturing industry and passenger NEVs narrowed by 0.2 percentage points each. The YoY decline in prices for electrical machinery and equipment manufacturing narrowed by 0.7 percentage points, and the YoY decline in prices for agriculture, forestry, animal husbandry, and fishery machinery manufacturing, as well as metal processing machinery manufacturing, narrowed by 0.2 percentage points each. Second, the development of high-tech industries has driven price increases in related sectors. The continuous cultivation and growth of new quality productive forces, along with the deep integration of technological innovation and industrial innovation, have led to YoY price increases in related industries driven by the development of industries such as intelligent manufacturing and high-end equipment manufacturing. Prices for wearable smart device manufacturing increased by 3.0%, aircraft manufacturing prices rose by 1.3%, micro and special motor and component manufacturing prices increased by 1.2%, server prices rose by 1.0%, and ship and related equipment manufacturing prices increased by 0.8%. In addition, China has continued to promote trade diversification, with market expansion driving YoY price increases or narrowing price declines in some export-oriented industries. Prices for integrated circuit packaging and testing series increased by 2.7%, and prices for semiconductor device manufacturing equipment increased by 1.0%. The YoY decline in prices for tractor manufacturing, electronic device manufacturing, and the textile, clothing, and apparel industry narrowed by 1.2, 0.7, and 0.3 percentage points, respectively, compared to the previous month.

Weekly Observation: Cobalt Products Show Mixed Performance, Refined Cobalt Smelters Stand Firm on Quotes, How Is Downstream Sentiment? This week, cobalt products showed mixed performance, the export ban on cobalt products continued to affect the market, refined cobalt smelters stood firm on quotes, and traders' enthusiasm for transactions increased compared to before. Meanwhile, some cobalt salt smelters' quotes also began to stabilize, but the current high prices still limited downstream transactions to some extent... SMM compiled the price changes of cobalt products this week as follows:.......

[Strong "Cobalt Control"! World's Largest Supplier Hints at Extending Export Ban] ① DRC government spokesperson Muyaya indicated that the country might extend the export ban introduced last month; ② Last month, the DRC announced a four-month suspension of cobalt exports. Since then, cobalt prices have risen by more than 50%; ③ The DRC is one of the richest countries in cobalt resources, accounting for over 78% of global cobalt supply. (Cailian Press)

While the lead industry continues to develop, the supply imbalance of raw materials is also intensifying. In terms of lead concentrates, the tight supply situation has worsened. Due to gold and silver prices being at a relatively high level, smelters' demand for high-grade lead concentrates has increased, while domestic lead concentrate TCs have continuously hit new lows. Regarding scrap, according to the SMM survey, in recent years, the generation of scrap batteries and their processing capacity have not matched, leading to an oversupply of secondary lead capacity. In 2024, with new secondary lead capacity continuing to be released, domestic scrap supply is limited, and there is also a loss of scrap through exports. Additionally, during H1, the lead-acid battery market is in its traditional off-season, with battery scrap volumes at their lowest point of the year, further exacerbating the supply imbalance. To help industry professionals gain a clearer and more intuitive understanding of the global distribution of lead ingot raw material enterprises, Shanghai Metals Market (SMM) has partnered with Xiangtan Lufeng Machinery Co., Ltd. to launch the "2025 Global Lead Ingot Raw Material Enterprises Resource Distribution Map." After annotation and layout, it will be printed and distributed to upstream and downstream customers. The aim is to provide the industry with an authoritative, comprehensive, and professional overview of the lead ingot raw material industry, establishing a communication bridge between various companies in the industry chain, breaking down information barriers, and jointly promoting the healthy and green development of the lead industry. Xiangtan Lufeng Machinery Co., Ltd. is located in Xiangtan, the hometown of great leaders. Founded in 2010, the company now has a team of excellent technicians and skilled workers, along with a range of supporting equipment such as lathes, milling machines, boring machines, drilling machines, automatic feeding, and welding. The company mainly engages in the development, manufacturing, installation, and commissioning of mining, smelting, and construction machinery, as well as the upgrading and transformation of old equipment. Currently, the main products include complete sets of equipment and supporting equipment for smelting, such as automatic production lines for lead, zinc, and aluminum casting, anode casting units, cathode plate making units, crushers, slag casting machines, lead liquid stirring machines, spent anode washing units, lead pumps, and lead pots. The company always adheres to the principles of "integrity, positivity, responsibility, and cooperation," strictly controlling processes and upholding the management philosophy of "customer first," providing high-quality products and thoughtful after-sales service. We welcome both new and long-established customers to call for inquiries or visit us for a field trip. Contact Information Company Website: http://www.xtlfjx.com/ http://www.xtlfjx.cn/ Phone: 13637325838 (Chaoqun Wan) Fax: 073158267061 Email: wan@xtlfjx.com SMM Map Joint Production Contact Qi Lv 18361710903 lvqi@smm.cn