【SMM Steel】TenarisSSP finalized a SAR 127m supply agreement with Saudi Aramco on Mar 29 for steel pipes for oil and gas ops over 12 months. The deal involves no related parties. The financial impact is expected in H1 2027.

【SMM Steel】Saudi Steel Pipe's subsidiary Global Pipe Co. won a major contract with Subsea 7. The $80 million deal is to supply line pipes for an offshore redevelopment project. The contract duration is 11 months. Details of the project were not disclosed, but Subsea 7 previously secured a long-term deal with Saudi Aramco in Sep 2025 for 106 km of pipelines and offshore facility work.

On January 29, 2026, Lyu Zexiang, Overseas Operations Director of China Energy Engineering Corporation (CEEC), held talks with Nabil R. Al-Khowaiter, Senior Vice President of Saudi Aramco, in Beijing. The two sides engaged in in-depth discussions and reached consensus on deepening exchanges in scientific and technological innovation, as well as expanding cooperation in the fields of new energy, seawater desalination, new-type energy storage, and integrated green hydrogen, ammonia, and methanol. This meeting not only represents a practical measure for China-Saudi Arabia energy cooperation but also aligns with the strategic deployment of the Political Bureau of the CPC Central Committee to "make forward-looking arrangements for future industries such as hydrogen energy." Lyu Zexiang welcomed Nabil R. Al-Khowaiter and his delegation, introducing CEEC's advantages across the entire industry chain in the energy and power sector and its performance in the Middle East market. He stated that the two sides share highly aligned concepts regarding green transformation cooperation. He expressed hope to establish a regular communication mechanism, strengthen technology and information sharing, and jointly expand cooperation in areas such as new energy, cogeneration, seawater desalination, and green hydrogen, ammonia, and methanol, thereby contributing to global energy transition. Nabil R. Al-Khowaiter appreciated CEEC's comprehensive strength and international performance, noting that Saudi Aramco is advancing the diversification of its energy structure and will focus on investing in new energy and other related projects in the future. He stated that CEEC is a trustworthy partner and looked forward to both sides leveraging their respective advantages, innovating cooperation models, deepening multi-field collaboration, and jointly promoting global green and low-carbon development. The Political Bureau of the CPC Central Committee had previously identified hydrogen energy and related fields as new economic growth points for the "15th Five-Year Plan" period, providing direction for international energy cooperation. The current focus on cooperation in areas such as green hydrogen, ammonia, and methanol not only represents a concrete practice in response to the national layout for future industries but will also inject momentum into deepening China-Saudi Arabia energy cooperation and advancing the global energy transition. Participants in the talks included Jamal A. Al-Azizi, Director of Procurement and Supply Chain Management at Saudi Aramco Asia Company; Xin Zongyi, Vice President of CEEC International Group; and relevant officials from both sides.

On Friday (June 13) local time, the International Energy Agency (IEA) stated that it was prepared to release emergency oil reserves if the crude oil market faced shortages following Israel's attack on Iran. This statement drew criticism from its "rival," the Organization of the Petroleum Exporting Countries (OPEC), which claimed that such remarks would only create panic sentiment in the market. The IEA primarily represents some oil-consuming countries, while OPEC represents major oil-producing countries. In recent years, the two have continued to have disagreements on issues such as global oil demand trends and the pace of energy transition. Fatih Birol, the Executive Director of the IEA, stated that the current market supply was sufficient, but the agency was ready to take action if necessary. He added that the IEA's oil security system had 1.2 billion barrels of strategic and emergency oil reserves. In response, Haitham Al Ghais, the Secretary General of OPEC, criticized the IEA for repeatedly emphasizing the need to release emergency oil reserves, an unnecessary move that created false alarms and sparked panic sentiment in the market. Al Ghais emphasized that there had been no changes in either crude oil supply or market dynamics, so "there was no need to take unnecessary measures." It is worth mentioning that after the outbreak of the Russia-Ukraine conflict in 2022, the US and its allies coordinated with the IEA to release emergency oil reserves, a move that was also strongly opposed by OPEC at the time. Reviewing the current incident, according to CCTV News, Israel launched a "pre-emptive strike" on nuclear facilities and military targets inside Iran in the early hours of Friday (June 13). Influenced by this news, international oil prices surged significantly, with the main Brent crude oil futures contract rising by 7% to $78.53 per barrel at one point, the highest level since January this year. Shortly before the news was released, the Islamic Republic News Agency of Iran reported that Iranian President Masoud Pezeshkian condemned Israel's attack on Iran that day and stated that Iran would take a legitimate and forceful response. These statements led market participants to worry that the situation might escalate further, potentially affecting energy infrastructure in Iran and its neighboring countries, and even leading to the blockade of the Strait of Hormuz. Earlier in the day, JPMorgan Chase wrote in a report that if a larger-scale conflict broke out in the Middle East, leading to the blockade of the Strait of Hormuz, the crude oil market could face severe supply disruptions. JPMorgan Chase believed that under extreme geopolitical circumstances, international oil prices could nearly double, rising to levels between $120 and $130. "Oil prices have surged significantly... and future movements will largely depend on whether Iran repeats the 2019 playbook of attacking tankers, pipelines, and critical energy infrastructure," Helima Croft, an analyst at RBC Capital Markets, wrote in a report. In September 2019, Yemen's Houthi rebels launched a drone attack on Saudi Aramco's oil processing facilities in Abqaiq, disrupting 5.7 million barrels per day of Saudi Arabia's capacity and causing severe market volatility. There are concerns that a similar "Abqaiq incident" could recur.

SMM, June 5: Metal Market: As of the daytime close, domestic market base metals generally declined, with only SHFE lead and SHFE tin rising together. SHFE lead increased by 0.36%, and SHFE tin rose by 1.47%. The rest of the metals fell, with the main alumina contract dropping by 2.9%. In addition, the main lithium carbonate contract fell by 0.43%, the main silicon metal contract declined by 0.56%, and the main polysilicon contract dropped by 0.27%. The main European container shipping contract fell by 0.11%. The ferrous metals series showed mixed performance. Stainless steel rose by 0.2%, iron ore fell by 0.14%, rebar increased by 0.14%, and HRC declined by 0.19%. In the coking coal and coke sector, coking coal rose by 1.68%, and coke increased by 0.56%. In the overseas market, as of 15:03, overseas market base metals generally declined, with only LME copper and LME nickel rising together. LME copper increased by 0.29%, and LME nickel rose by 0.1%. LME lead led the declines with a drop of 0.5%. The fluctuations in the declines of the remaining metals were relatively small. In precious metals, as of 15:03, COMEX gold fell by 0.26%, and COMEX silver rose by 0.03%. Domestically, SHFE gold increased by 0.23%, and SHFE silver fell by 0.01%. Market conditions as of 15:03 today 》Click to view SMM market dashboard Macro Front Domestic Aspects: [National Energy Administration: National power supply is generally expected to be secured during the peak summer period this year] Hao Ruifeng, Director of the Market Supervision Department of the National Energy Administration, stated at a State Council Information Office press conference that, based on the current situation, it is expected that the national power supply will be generally secured during the peak summer period this year, although there may be power supply tightness in some local areas during peak periods. Hao Ruifeng pointed out that the National Energy Administration will aim to ensure flexible regular supply, implement measures for localized short-term tightness, and achieve effective responses to extreme situations, pressing all parties to fulfill their responsibilities. Through measures such as strengthening energy and power monitoring and early warning, fully leveraging power supply potential during peak periods, accelerating the construction and commissioning of supportive power sources, optimizing cross-provincial power exchanges, and enhancing demand-side response, the National Energy Administration will strive to ensure the safe and stable supply of power during the peak summer period. [Song Hongkun, Deputy Director of the National Energy Administration: As of the end of April, installed capacity of wind, PV, and nuclear power historically exceeded that of thermal power] Song Hongkun, Deputy Director of the National Energy Administration, stated at a State Council Information Office press conference today that as of the end of April this year, China's installed capacity of renewable energy power generation reached 2.017 billion kW, up 58% YoY. The installed capacity of wind, PV, and nuclear power reached 1.53 billion kW, historically exceeding that of thermal power. [Ministry of Ecology and Environment: Coal consumption accounted for 53.2% of total energy consumption in 2024] The Ministry of Ecology and Environment officially released the "2024 Report on the State of China's Ecology and Environment."The proportion of coal consumption in total energy consumption was 53.2%, a decrease of 1.6 percentage points from 2023. The proportion of clean energy consumption, including natural gas, hydropower, nuclear power, wind power, and solar power, in total energy consumption was 28.6%, an increase of 2.2 percentage points from 2023. As of the end of 2024, the cumulative trading volume of quotas in the national carbon emissions trading market reached 630 million mt, with a cumulative turnover of 43.033 billion yuan. [Caixin China General Services PMI rose to 51.1 in May] The Caixin China General Services Business Activity Index (Services PMI) for May, released today, recorded 51.1, up 0.4 percentage points from April, indicating an acceleration in the expansion of services sector operations. ► The central parity rate of the RMB exchange rate in the inter-bank foreign exchange market on June 5 was 7.1865 RMB per US dollar. US dollar: As of 15:03, the US dollar index rose by 0.12% to 98.91. On June 4 local time, the latest Beige Book, a national economic conditions survey report released by the US Fed, showed that economic activity in the US had declined slightly since the last report. Businesses and consumers faced increased policy uncertainty and mounting price pressures, with the overall economic outlook remaining pessimistic. US ADP employment increased by 37,000 in May, against an expected increase of 110,000 and a prior increase of 62,000. Following the release of the US May ADP employment data, US President Trump stated that Powell must now cut interest rates. Data released by ISM showed that the US May ISM Services PMI Index was reported at 49.9, significantly below the expected 52, marking the first contraction in nearly a year. The new orders index fell sharply by 5.9 points, the largest decline since June 2024, to 46.4. The prices paid index jumped to 68.7, the highest since November 2022. Currently, the market is focusing on the non-farm payrolls report to be released this Friday, seeking clearer guidance. Macro: Today, data such as the year-on-year rate of the ANZ commodity price index for May globally, Australia's goods and services trade balance for April, Australia's monthly export rate for April, Australia's monthly import rate for April, China's Caixin Services PMI for May, Switzerland's unadjusted unemployment rate for May, Switzerland's seasonally adjusted unemployment rate for May, the leading indicator for turning points in the global industrial production cycle for May, the number of job cuts announced by US companies in May (Challenger report), the European Central Bank's (ECB) main refinancing rate for June in the Eurozone, the ECB's deposit facility rate for June in the Eurozone, the ECB's marginal lending facility rate for June in the Eurozone, the US trade balance for April, the number of initial jobless claims in the US for the week ending May 31, the number of continuing jobless claims in the US for the week ending May 31, Canada's trade balance for April, Canada's seasonally adjusted IVEY PMI for May, Canada's unadjusted IVEY PMI for May, and the global supply chain pressure index for May will be released. In addition, it is worth noting that the US Fed released the Beige Book on economic conditions; the European Central Bank (ECB) announced its interest rate decision; and ECB President Christine Lagarde held a press conference on monetary policy. Crude oil: As of 15:03, oil prices in the two markets showed mixed performance, with US crude oil down 0.06% and Brent crude oil up 0.05%. Earlier industry reports indicated an increase in US gasoline and diesel inventories last week. Additionally, Saudi Arabia lowered its official selling prices (OSPs) for Asian crude oil buyers in July, while uncertainties surrounding the global economy also weighed on oil prices. The US Energy Information Administration (EIA) released its inventory report on Wednesday, showing a decline in US crude oil inventories last week as refineries ramped up production with the start of the summer driving season, while fuel inventories rose due to weak demand. The EIA reported that US gasoline inventories increased by 5.2 million barrels to 228.3 million barrels in the week ending May 30, compared to market expectations of a 600,000-barrel increase. US commercial crude oil inventories fell by 4.3 million barrels to 436.06 million barrels in the same week, against market expectations of a 1 million-barrel decrease. Distillate inventories, including heating oil and diesel, rose by 4.2 million barrels to 107.6 million barrels in the week, compared to market expectations of a 1 million-barrel increase. Saudi Arabia, the world's largest oil exporter, lowered its prices for Asian crude oil buyers to a two-month low, which the market views as an attempt by Saudi Arabia to regain market share. Saudi Aramco reduced the OSP for its flagship Arab Light crude oil sold to Asia in July to a premium of $1.20 per barrel over the Oman/Dubai average. The OSP premium was $1.40 per barrel in June and $1.20 per barrel in May. A previously released survey indicated that the price cut for Arab Light crude oil in July would be in the range of 40-50¢. Analysts from ANZ Bank said in a report, "Although the price cut by Saudi Arabia was smaller than expected, it indicates that demand remains weak despite entering the peak demand period." (Wenhua Comprehensive) SMM Daily Review ► Aluminum prices fluctuate rangebound, aluminum scrap prices remain unchanged [Daily Review of Aluminum Scrap] ► June 5: SHFE aluminum holds up well, with no sign of inventory buildup yet; processing fees struggle to maintain [Daily Review of Spot Aluminum Billet] ► [SMM MHP Daily Review] June 5: Indonesian MHP prices decline ► [SMM Nickel Sulphate Daily Review] June 5: Nickel salt prices decline ► Rare earth miners withhold sales and refuse to budge on prices, leading to a slight price increase [SMM Rare Earth Daily Review] ► Tungsten market fluctuates at highs, with APT and tungsten powder prices rising again [SMM Tungsten Daily Review] ► Silver prices continue to consolidate, with sluggish market trading remaining unchanged [SMM Daily Review]

On June 3, in response to the financial pressure brought about by the decline in crude oil prices, Saudi Aramco, the Middle East's oil giant, announced the completion of a $5 billion bond issuance. The issuance consisted of three tranches, with coupon rates of 4.75% (5-year), 5.375% (10-year), and 6.375% (30-year), respectively. Ziad Al-Murshed, Saudi Aramco's Chief Financial Officer, stated that the bond issuance received "strong" market subscription, with global investors expressing confidence in the company's "financial resilience and robust balance sheet." On May 30, Saudi Aramco released a prospectus for the issuance of Islamic bonds (Sukuk), indicating its plan to soon re-enter the debt market for financing. Currently, the price of Brent crude oil stands at around $65 per barrel, a significant pullback from $82 in mid-January this year. The decline in oil prices has affected Saudi Aramco's profits, putting pressure on the company to maintain high dividends. In Q1 2025, Saudi Aramco's net profit was approximately $26 billion, a year-on-year (YoY) decrease of about 4.6%. Its performance dividend was $200 million, far lower than the over $10 billion in Q3 2024. As the major shareholder of Saudi Aramco, the Saudi government relies on related dividends to carry out the country's economic diversification projects. Limited dividend payouts will also constrain the government's fiscal spending capacity. In the Islamic bond prospectus released on May 30, Saudi Aramco disclosed that as of the end of Q1 this year, its asset-liability ratio had risen to 5.3% from 4.5% at the end of last year. During an earnings call in May, Al-Murshed mentioned that over the past three years, Saudi Aramco had significantly reduced its debt levels, but had started to "moderately increase leverage as planned since last year to optimize its capital structure." Amin Nasser, Saudi Aramco's CEO, stated during the same call that current oil demand in the international market is strong, with global crude oil inventories at a "five-year low." He also pointed out that OPEC's decision to increase production starting from May would drive Saudi Aramco's daily production to increase by 200,000 barrels. If oil prices remain at $60 per barrel, this increase is expected to generate approximately $1.9 billion in annual cash flow. Last week, Saudi Finance Minister Mohammed al-Jadaan stated in a media interview that due to reduced oil revenues, the Saudi government would re-evaluate the pace of fiscal spending. He mentioned, "The crisis provides us with an opportunity to assess and adjust," including whether projects are being advanced too quickly and whether related plans need to be postponed or rescheduled.

SMM May 13 Report: Metal Market: Overnight, metals in both domestic and overseas markets showed mixed performance. Domestically, SHFE tin led the gains with a 1.33% increase, while SHFE nickel fell by 1.26%. Overseas, LME aluminum led the gains with a 2.17% increase, LME tin rose by 1.69%, and LME nickel fell by 1.61%. The % change for other metals was within 1%. The main alumina futures contract rose by 0.6%. Most ferrous metals series prices rose, with iron ore, HRC, and rebar all increasing by over 1%. Iron ore rose by 1.77%, HRC by 1.1%, and rebar by 1.28%. In the coking coal and coke sector, coking coal fell by 0.68%, and coke fell by 0.03%. In the precious metals sector, COMEX gold fell by 3.06% overnight, and CIOMEX silver fell by 0.36%. Domestically, SHFE gold fell by 2.52%, and SHFE silver fell by 0.75%. Previously, China and the US reached a series of important consensus in the economic and trade fields, gradually heating up risk sentiment. Overnight closing prices as of 6:45 a.m. on May 13 》Click to view SMM Futures Data Dashboard Macro Front Domestic: The Ministry of Commerce website released a joint statement on the China-US Geneva Economic and Trade Talks. Both sides committed to taking the following measures before May 14, 2025: The US will (1) revise the ad valorem tariffs imposed on Chinese goods (including goods from the Hong Kong Special Administrative Region and the Macao Special Administrative Region) as specified in Executive Order 14257 of April 2, 2025. Among these, a 24% tariff will be suspended for the initial 90 days, while retaining the right to impose the remaining 10% tariff on these goods as stipulated in the executive order; (2) Cancel the tariffs imposed on these goods under Executive Order 14259 of April 8, 2025, and Executive Order 14266 of April 9, 2025. China will (1) correspondingly revise the ad valorem tariffs imposed on US goods as specified in Announcement No. 4, 2025, of the Customs Tariff Commission. Among these, a 24% tariff will be suspended for the initial 90 days, while retaining the right to impose the remaining 10% tariff on these goods, and cancel the tariffs imposed on these goods under Announcement No. 5 and No. 6, 2025, of the Customs Tariff Commission; (2) Take necessary measures to suspend or cancel non-tariff countermeasures against the US implemented since April 2, 2025. After taking the above measures, both sides will establish a mechanism to continue consultations on economic and trade relations. The spokesperson of the Ministry of Commerce made a statement on the joint statement on the China-US Geneva Economic and Trade Talks. The Ministry of Commerce stated that substantial progress was made in this round of high-level economic and trade talks between China and the US, significantly reducing bilateral tariff levels. The US canceled a total of 91% of the tariff hikes, and China correspondingly canceled 91% of the countermeasures tariffs. The US suspended the implementation of 24% of the "reciprocal tariffs," and China also correspondingly suspended the implementation of 24% of the countermeasures tariffs.This move aligns with the expectations of producers and consumers in both countries, as well as with the interests of both countries and the shared interests of the world. US dollar: The US dollar index surged overnight, rising by 1.38%, as trade tensions eased on May 12 (Monday), alleviating concerns about a global economic recession. Despite the US dollar's three-week strengthening streak amid rising optimism over a potential trade deal, it has still fallen by 2.2% since April 2. This week's focus will also be on the US Consumer Price Index (CPI) released on Tuesday and April's retail sales data released on Thursday, to gauge the impact of global trade conflicts on the economy and on expectations for further interest rate cuts by the US Federal Reserve (Fed/FED). Traders lowered their expectations for interest rate cuts by the Fed and the European Central Bank on Monday, as the economic outlook improved following the trade deal. The market now believes that the Fed is likely to cut interest rates by at least 25 basis points for the first time at its September meeting, compared to last week's view of a July cut. (Wenhua Comprehensive) Other currencies: The US dollar index, which measures the US dollar against a basket of currencies including the Japanese yen and the euro, surged by 1.5% to 101.91. The euro fell by 1.54% against the US dollar to $1.1074, poised for its largest one-day drop since November 6. Risk appetite drove US stocks sharply higher, with the S&P 500 index surging over 3%, weighing on safe-haven currencies. The US dollar rose 2.19% to 148.50 yen against the Japanese yen in late New York trading, after touching 148.64, its highest level since April 3. The US dollar rose 1.86% to 0.847 against the Swiss franc, touching an intraday high of 0.8475, its highest level since April 10. The British pound fell 1.07% to $1.3162 against the US dollar, poised for its largest one-day drop since April 7. Macro: Today, data including China's April M2 money supply year-on-year rate, China's April total social financing year-to-date, China's April new yuan loans year-to-date, the US April CPI year-on-year rate (not seasonally adjusted), the US April core CPI year-on-year rate (not seasonally adjusted), the US April energy CPI year-on-year rate (not seasonally adjusted), the Eurozone's May ZEW Economic Sentiment Index, Germany's May ZEW Economic Sentiment Index, Australia's ANZ Consumer Confidence Index for the week ending May 11, the UK's March unemployment rate (ILO standard), and the UK's March average weekly earnings including bonuses year-on-year rate will be released. In addition, the Bank of Japan will release the summary of opinions from its April monetary policy meeting, Bank of England Governor Bailey will deliver a speech, and US President Trump will visit Saudi Arabia, Qatar, and the UAE from May 11 to 14. Crude oil: Oil prices on both the New York and London markets rose overnight, with U.S. crude gaining 1.54% to close at a two-week high amid easing concerns over the trade outlook. Brent crude also rose 1.69%, hitting a two-week peak. In April, oil prices fell to their lowest level in four years as investors worried that trade disputes would curb economic growth and oil demand. Additionally, the Organization of the Petroleum Exporting Countries (OPEC) decided to increase oil production by a larger margin than previously expected. Saudi Aramco stated that it expects oil demand to remain resilient this year and could rise further if trade disputes end. In Iraq, OPEC's second-largest oil producer, crude oil exports are expected to fall to around 3.2 million barrels per day (bpd) in May and June, a significant drop from previous months. Analysts from Goldman Sachs said in a report that OPEC+ may pause further increases in oil production due to deteriorating global economic conditions. Goldman Sachs expects OPEC to make a "final" decision in July to raise daily production by 411,000 bpd, but actual economic data may prompt a reassessment and a pause in production increases. Previously, OPEC+ decided to increase daily crude oil production by 411,000 bpd in June, bringing the organization's total production target for April, May, and June to 960,000 bpd. This means that 44% of the 2.2 million bpd in production cuts will be reversed. (Wenhua Comprehensive)

I. Policy Review 1. Implementation of the Third Batch of Subsidy Policies for China's Fuel Cell Vehicle Demonstration City Clusters On May 3, the Ministry of Finance and four other ministries and commissions jointly issued the "Notice on the Application for the Third Batch of City Clusters for the Demonstration and Application of Fuel Cell Vehicles," explicitly including hydrogen-powered heavy trucks, ships, and aviation within the scope of subsidies. For the first time, the policy of "replacing subsidies with rewards" was proposed to favor the green hydrogen production sector. The subsidy standards were increased by 20% compared to the previous two batches, with individual city clusters eligible for up to 5 billion yuan in support. 2. EU Adopts Amendments to the Hydrogen Act On May 5, the EU Council approved amendments to the Hydrogen Act, requiring imported hydrogen to meet a carbon intensity standard of ≤3 kg CO₂/kg H₂, and establishing a 2 billion euro special fund to support domestic electrolyzer manufacturing. The Act also simplifies the approval process for green hydrogen projects, allowing transnational hydrogen pipeline projects to enjoy a "fast-track" process. 3. US Department of Energy Launches the "Green Hydrogen Accelerator Initiative" On May 6, the US Department of Energy announced a total of 980 million US dollars in funding for 15 green hydrogen projects, with a focus on supporting R&D in wind and solar power-to-hydrogen production, storage, and transportation technologies in the Midwest region. Among them, Utah's "Solar-Green Hydrogen-Ammonia" integrated project received 120 million US dollars, aiming to achieve a green hydrogen cost of less than 2 US dollars/kg. 4. Japan Releases the "Ammonia Energy Strategy 2025" On May 8, Japan's Ministry of Economy, Trade and Industry released a document, clearly prioritizing ammonia as a hydrogen carrier for development. It plans to establish 10 large-scale ammonia receiving terminals by 2030 and promote the inclusion of ammonia-fueled ships in the carbon emissions accounting system of the International Maritime Organization (IMO). II. Corporate Developments 1. Toyota Unveils the World's First Liquid Hydrogen System for Commercial Vehicles On May 2, Toyota announced that its liquid hydrogen fuel cell truck had achieved a driving range of 1,000 kilometers, a 40% improvement over gaseous hydrogen storage. It plans to commence commercial testing in Japan and Australia in 2026. 2. Plug Power Expands US Green Hydrogen Plant On May 4 (US time), Plug Power announced an investment of 350 million US dollars to expand a 100MW electrolyzer production line in Texas, targeting an annual green hydrogen production capacity of 50,000 mt by 2026 to meet the demand for zero-carbon transportation hubs in California, New York State, and other regions. 3. Guohong Hydrogen Energy and Shenergy Group Sign Agreement for Wind and Solar Power-to-Hydrogen Integrated Project On May 6, Guohong Hydrogen Energy, in collaboration with Shenergy Group, launched a 500MW wind and solar power-coupled hydrogen production project in Ordos, Inner Mongolia, accompanied by the construction of a transportation network of 200 hydrogen-powered heavy trucks, with a total investment of approximately 6.5 billion yuan. 4. Cummins and Siemens Sign Cooperation Agreement on Electrolyzer Technology On May 7, the two companies announced a joint development of a 100MW-class alkaline electrolyzer, aiming to improve efficiency to over 75% and explore modular designs to reduce the cost of large-scale deployment. III. Technological Advancements 1. ITM Power Breaks Through PEM Electrolyzer Efficiency Bottleneck On May 3, UK-based ITM Power announced that its latest generation PEM electrolyzer achieved a current density of 3.5A/cm², with system efficiency exceeding 85%, while extending equipment lifespan to 100,000 hours and reducing costs by 18%. 2. Chinese Team Develops New Liquid Organic Hydrogen Carrier (LOHC) Material On May 5, the Dalian Institute of Chemical Physics, Chinese Academy of Sciences, unveiled a new hydrogen storage carrier material that achieves a hydrogen storage density of 82g/L at room temperature and pressure, with dehydrogenation temperature reduced by 40% compared to traditional materials, and has entered the pilot stage. 3. Toyota Fuel Cell Lifespan Exceeds 20,000 Hours Test data from Toyota Central R&D Labs shows that its hydrogen fuel cell, after accumulating 20,000 hours of operation under simulated commercial vehicle conditions, has a power decay rate of less than 3%, reaching international leading levels. 4. Green Hydrogen Production Cost Drops to $2.1/kg According to BNEF data, leveraging $4/W wind and solar power prices in the Middle East and cost reductions in electrolyzers, green hydrogen production costs have dropped to $2.1/kg, a 30% decrease from 2024. IV. Industrial Collaboration 1. China Energy Group and CATL Collaborate on "Hydrogen-Storage-Heat" Integration On May 2, the two parties signed an agreement to jointly build a wind-solar-hydrogen-storage integrated demonstration project, incorporating solid-state hydrogen storage, compressed air energy storage, and waste heat power generation technologies, aiming to achieve a multi-energy complementary supply system. 2. Sinopec and Saudi Aramco Joint Venture for Refining and Hydrogen Production Project Launched On May 7, Sinopec and Saudi Aramco announced a joint venture to build a green hydrogen project supporting the Saudi Yanbu refinery, utilizing local wind and solar resources to produce 200,000 mt of green hydrogen annually, with by-product green ammonia used as chemical raw material. 3. International Hydrogen Energy Council Releases "Global Green Hydrogen Trade Roadmap" The report predicts that global green hydrogen trade will reach 120 million mt by 2030, with 35% achieved through liquid hydrogen shipping, and calls for the establishment of a unified quality certification system and cross-border hydrogen pipeline standards. 4. Germany and Norway Establish Offshore Wind-to-Hydrogen Alliance On May 8, the two countries signed an agreement to build a 6GW offshore hydrogen production base utilizing North Sea wind resources and to transport green hydrogen to the European continent via subsea pipelines, with a total investment of approximately €12 billion.

I. Policy Review: Accelerated Implementation of Global Green Hydrogen Strategies 1. China's "Action Plan for High-Quality Development of the Hydrogen Energy Industry (2025-2030)" Officially Released It sets a clear target of 5 million mt of annual green hydrogen production by 2030, requiring the cost of hydrogen production from renewable energy to be reduced to below $1.5/kg; It offers fixed asset investment subsidies of up to 30% for liquid hydrogen storage and transportation projects, as well as solid-state hydrogen storage projects; It includes hydrogen energy in the "new infrastructure" category for the first time, supporting the co-construction of hydrogen refueling stations with gas stations and charging stations. Regional Responses: Inner Mongolia and Xinjiang have launched demonstration projects for "wind-solar-hydrogen-storage integration," with individual projects eligible for up to 5 billion yuan in special bond support. 2. EU Adopts Revised "Hydrogen Act" It requires member states to establish 40 GW of electrolyzer capacity and 10 GW of green hydrogen import capacity by 2030; It implements a "carbon label" system for imported hydrogen, imposing a carbon tariff of €60/mt on grey hydrogen and offering a tax credit of €200/mt for green hydrogen. 3. US Launches Second Phase of Tendering for the "Clean Hydrogen Accelerator Program" With a total budget of 1.2 billion US dollars, it focuses on supporting the large-scale production of alkaline electrolyzers (with a target cost of $400/kW) and the R&D of seawater direct electrolysis technology; Six states, including California and Texas, have jointly applied for the "Hydrogen Shipping Corridor" project, planning to deploy 20 hydrogen-powered cargo ships by 2030. II. Corporate Developments: Top-Tier Enterprises Compete for Scale and Commercialization 1. SinoHytec Releases the World's First 400 kW Fuel Cell Stack for Heavy-Duty Trucks Technical Highlights: Power density of 5.2 kW/L, durability of 50,000 hours, suitable for 49-tonne tractors, paired with EVE's 150 kWh solid-state battery hybrid system. Orders: Signed an order with SF Express for 300 hydrogen-powered heavy-duty trucks, planned for operation on the Beijing-Xiong'an cold chain logistics route by 2026. 2. Plug Power and Saudi Aramco Establish a Joint Venture to Build the World's Largest Green Hydrogen Plant Scale: An investment of 8 billion US dollars, planning for 15 GW of electrolyzer capacity, an annual production of 1.2 million mt of green hydrogen, and an annual export capacity of 2 million mt of liquid ammonia; Technology: Utilizing Siemens Gigastack alkaline electrolyzers and Giner ELX proton exchange membranes, with a target lifespan of 100,000 hours. 3. Guohong Hydrogen Energy Announces Mass Production of Monocrystalline Graphite Plate Stacks Breakthrough: Single stack power of 250 kW, lifespan of 30,000 hours, cost reduction of 40% compared to imported metal plate stacks; Collaboration: Established the "Hydrogen Energy Construction Machinery Ecosystem Alliance" with Sany Heavy Industry and Zoomlion Heavy Industry, planning to promote 5,000 hydrogen-powered excavators by the end of 2025. III. Technological Advancements: Breakthroughs in Long-Life and Low-Cost Technologies 1. Industrial Application of Non-Precious Metal Catalysts Achieved Achievements: The Fe-N-C catalyst developed by the Dalian Institute of Chemical Physics, CAS (with a platinum usage of only 0.1 mg/cm²) has been validated in SinoHytec's stack, achieving a power density of 4.5 kW/L and a cost reduction to $8/g (compared to $50/g for the original Pt/C catalyst). 2. Solid-State Hydrogen Storage Technology Enters Commercial Stage for the First Time Project: Shanghai Hydrogen Proton Tech, in collaboration with China Energy Investment Corporation, has commissioned a 5-tonne solid-state hydrogen refueling station in Ordos, with a hydrogen storage density of 50 kg/m³ and a cycle life of 10,000 times. 3. Electrolyzer Efficiency Sets a New World Record • Technology: Siemens Energy of Germany has released a 100 MW alkaline electrolyzer with a current density of 0.8 A/cm² and an efficiency of 82% (LHV), an 8% improvement over the industry average. IV. Industrial Synergy: Accelerated Cross-Sector Integration 1. Hydrogen-Electricity-Heat Multi-Energy Complementary Park Established in Xiong'an Model: China Huaneng Group has constructed a 100 MW fuel cell combined heat and power system, coupled with PV power generation and ground-source heat pumps, achieving a comprehensive energy efficiency of 92% and reducing carbon emissions by 80,000 mt/year. 2. Hydrogen Aviation Takes a Critical Step Forward Progress: COMAC, in collaboration with Air Liquide Haopu, has completed the maiden flight of a hydrogen hybrid regional aircraft (ARJ21-H2), with hydrogen fuel cells contributing 30% of the flight energy, and plans to obtain certification by 2030. 3. Large-Scale Implementation of Green Hydrogen Steelmaking in the Steel Industry Case Study: Baowu Group's Zhanjiang Base has launched a 2 million mt/year hydrogen-based direct reduced iron (DRI) project, paired with a 1.2 GW wind-solar hydrogen production system, achieving annual carbon emission reductions of 1.8 million mt of CO₂.

I. Policy Review 1. China Releases Implementation Rules for the Medium and Long-Term Development Plan for the Hydrogen Energy Industry (2025-2035) This week, the National Development and Reform Commission (NDRC) and the National Energy Administration jointly released the detailed rules of the plan, setting the phased target for the hydrogen energy industry by 2025: the ownership of fuel cell vehicles will exceed 100,000 units, more than 500 hydrogen refueling stations will be built, and a subsidy of 0.3 yuan per kilogram will be provided for green hydrogen production projects. The policy emphasizes "replacing subsidies with rewards," focusing on supporting integrated wind and solar power hydrogen production projects in north-west China. 2. EU Passes Amendment to the Hydrogen Infrastructure Act The EU has included hydrogen energy in the core of the "Green Deal," requiring member states to build at least 40 cross-border hydrogen pipelines by 2030 and setting carbon tariff exemption clauses for imported green hydrogen. Six countries, including Germany and France, jointly launched the "Hydrogen Corridor Initiative," planning to invest 20 billion euros to build an offshore wind power hydrogen production base in the North Sea. 3. Japan Launches "Ammonia-Hydrogen Co-firing Power Generation" Demonstration Policy The Ministry of Economy, Trade and Industry of Japan announced that it will conduct a pilot project of ammonia-hydrogen mixed fuel power generation in the Tokyo Olympic venue area by 2025, aiming to reduce carbon emissions by 40%, and plans to revise the "Basic Energy Law" to clarify the strategic position of hydrogen energy. II. Corporate Developments 1. Sinopec and Saudi Aramco Sign Green Hydrogen Cooperation Agreement The two parties plan to invest 3.5 billion US dollars to build a 2GW electrolytic water hydrogen production project in the Jazan Economic City in Saudi Arabia, using local low-cost solar energy to produce green hydrogen, with the goal of operation by 2027. The hydrogen will be transported to China via the Middle East-Indian Ocean-Malacca Strait. 2. SPIC Releases "Hydrogen Teng 3.0" Fuel Cell Stack The new-generation product has a power density of 4.8kW/L, and the low-temperature cold start temperature is reduced to -30℃. The 200 hydrogen-powered heavy trucks will be delivered to the Ordos coal transportation line in Q2, with a driving range increased to 800 kilometers. 3. Plug Power Acquires Siemens' Hydrogen Business The US hydrogen leader Plug Power acquired Siemens' proton exchange membrane (PEM) electrolyzer division for 1.8 billion US dollars, integrating the technical resources of both parties to accelerate the layout of the decarbonization market for heavy industry in Europe and the US. III. Technological Progress 1. Breakthrough in Solid-State Hydrogen Storage Materials A team from the University of Science and Technology of China has developed a new rare-earth-based solid-state hydrogen storage alloy, achieving a hydrogen storage density of 7.2wt% at normal pressure (1MPa), with a cycle life exceeding 10,000 times. It has passed pilot verification and is planned to be used in distributed hydrogen supply scenarios. 2. Alkaline Electrolyzer Life Exceeds 80,000 Hours The 10MW alkaline electrolyzer jointly developed by Siemens and ThyssenKrupp achieved continuous operation for 80,000 hours (about 9 years) in a laboratory environment, with an annual decay rate of less than 0.5%, significantly reducing the cost of green hydrogen to 2.5 US dollars/kg. 3. Commercialization of Methanol Reforming Hydrogen Fuel Cells Japan's Toray has launched a methanol-water reforming hydrogen module, which is 60% smaller in volume than pure hydrogen systems, suitable for commercial vehicles and ships. It has completed the demonstration operation of 10 methanol-fueled forklifts at Kagoshima Port. IV. Industry Collaboration 1. Yangtze River Delta Hydrogen Alliance Establishes Industry Chain Mutual Assistance Fund 20 companies, including Shanghai Jie Hydrogen and Jiangsu Qingneng, jointly initiated a 5 billion yuan fund, focusing on supporting the localization of "bottleneck" materials such as fuel cell catalysts and bipolar plates. The first phase of investment focuses on the upgrade of the membrane electrode production line in Foshan, Guangdong. 2. Expansion of Germany's Hydrogen Train Network Deutsche Bahn Group, in collaboration with Hyzon Motors, launched the second phase of the hydrogen train tender, planning to purchase 15 Coradia iLint trains for the Bavarian-Austrian border line, and build 3 hydrogen refueling stations to achieve cross-border railway decarbonization. 3. Middle East-East Asia LNG-to-Hydrogen Trade Pilot Launched Japan's Mitsui and the UAE's ADNOC reached an agreement to conduct a methane steam reforming hydrogen production test on the first LNG cargo at the Hassyan Clean Coal Power Station in Dubai, exploring a hybrid business model for traditional energy giants transitioning to hydrogen energy.