The construction and trial operation of the second phase of the Mirador Copper Mine project under Tongling Nonferrous Metals have been completed, and the signing of its Mining Contract is currently being advanced.

Recently, the signing ceremony for the high-performance battery aluminum foil project between Sichuan Yibin Sanjiang New Area and Anhui Jinyu Co., Ltd. was held. It is reported that Anhui Jinyu Materials Co., Ltd. specializes in the R&D and processing of aluminum series alloy materials. The company currently operates two entities—Tongling Jinyu Aluminum-Based New Materials Company and Anhui Jinyu Materials Co., Ltd.—with three factory sites spanning nearly 500 acres and employing approximately 1,200 staff. Its main products include air conditioner aluminum foil and new energy battery aluminum foil.

SMM News, February 3: According to an official announcement from Jinguan Copper, a subsidiary of Tongling Nonferrous Metals Group Co., Ltd., the company will begin public sales of 32 tons of crude selenium starting today. The base price has not been disclosed. The deadline for submitting quotation letters is before 11:30 a.m. on February 3, 2026.

SMM News, June 25 – According to an official announcement from Jinguan Copper, a subsidiary of Tongling Nonferrous Metals Group Co., Ltd., the company began publicly selling 32 metric tons of crude selenium yesterday, though the reserve price was not disclosed. The deadline for bid submissions is June 25, 2025. Market observers noted that the one-day bidding window suggests the seller has strong confidence in offloading this batch of crude selenium. Recently, many selenium producers have ramped up tenders for selling selenium products. Some manufacturers have increased shipments ahead of mid-year, putting downward pressure on selenium prices. The rise in crude selenium supply from producers has sustained market oversupply, keeping prices weak across selenium products—including selenium dioxide—with a clear downward trend. Some analysts also highlighted that the outcome of Tongling Nonferrous Metals Group’s tender will be crucial, as it may indicate the price resilience of crude selenium. SMM will continue to monitor developments.

On June 13, at the 2025 SMM (13th) Minor Metal Industry Conference - Rare and Scattered Metals Forum (Indium, Germanium, Gallium, Bismuth, Selenium, Tellurium), hosted by Shandong Humon Smelting Co., Ltd. and SMM Information & Technology Co., Ltd., Long Wensheng, General Manager of Changsha Aochang Nonferrous Metals Co., Ltd., elaborated on "The Current Application Status and Future Prospects of Minor Metal Selenium.

The market rebounded with fluctuations throughout the day, with the ChiNext Index leading the gains. The total trading volume on the Shanghai and Shenzhen stock exchanges reached RMB 1.19 trillion, an increase of RMB 175.5 billion compared to the previous trading day. On the futures market, hot topics rotated in and out of the spotlight, with more stocks rising than falling. Over 4,400 stocks across the market advanced, and more than 100 stocks hit their daily limits. In terms of sectors, stocks related to autonomous vehicles and intelligent driving concepts surged collectively, with over 20 stocks, including Tongda Electric, hitting their daily limits. Digital currency concept stocks also strengthened amid fluctuations, with multiple stocks such as GDYC hitting their daily limits. Innovative drug concept stocks became active again, with stocks like Shutai Pharmaceutical hitting their daily limits. On the downside, gold stocks underwent adjustments, with Lvsenton falling by the daily limit. By the close of trading, the Shanghai Composite Index rose by 0.7%, the Shenzhen Component Index rose by 1.24%, and the ChiNext Index rose by 1.37%. Sector Performance In the sector of autonomous vehicles and intelligent driving concepts, stocks surged across the board, with over 20 stocks, including Wanma Technology, Yunnan Neijiang Power, Deren Electronics, Qiming Information, Tongda Electric, Jinjiang Online, Desay SV, Fulongma, and Genvict Technologies, hitting their daily limits. On the news front, Tesla is rumored to be planning to launch its Robotaxi service in Austin, Texas, US, on June 12, marking a significant milestone in Musk's efforts to reshape the company's business. Additionally, recently, 9Z Intelligence, an L4-level urban distribution autonomous driving R&D and application enterprise, announced the completion of a US$100 million B3 round financing transaction. Xinshiqi, an L4-level autonomous commercial vehicle producer, also completed a RMB 1 billion C+ round financing. Institutions predict that 2025 will be the first year of explosive growth for unmanned logistics. Based on the number of express logistics outlets nationwide, the market potential for unmanned delivery vehicles is approximately RMB 468 billion. Driven by a series of recent news catalysts, the hype surrounding the autonomous vehicle concept has expanded from logistics vehicles at the beginning to sanitation vehicles yesterday, and further spread to the entire intelligent driving industry chain today. With the continuous expansion of the sector's capacity and sustained capital inflows, this theme may still have room for repeated activity in the future. However, in the short term, after the sector's overall surge today, short-term sentiment may reach a climax, and differentiation is expected to intensify tomorrow. Focus should be placed on leading core stocks. Digital currency stocks also strengthened, with stocks such as Lakala, Sifang Jinchuang, Xiongdi Technology, Digital China Information Service, Union Mobile Pay, Beijing Northern, GDYC, and China Finance Online hitting their daily limits. On the news front, the US Congress is advancing two key stablecoin legislations. Guohai Securities stated that stablecoin transactions offer higher efficiency compared to traditional European and American banks, particularly in cross-border payments. While traditional bank wire transfers may take several days to complete, stablecoin transfers often take only a few minutes. Moreover, stablecoins have lower transfer fees, which depend on network conditions (taking USDT as an example, typically only a few dollars), while some payment systems charge fees proportionally at higher rates. From a market perspective, compared to sectors like nuclear power, new consumption, and innovative drugs, the digital currency concept represents a relatively new hot topic, with more pronounced positional advantages among individual stocks. Additionally, it benefited from the spillover effect of ZhongAn Online's surge in Hong Kong. Consequently, it quickly gained capital favour during the collective rebound in short-term sentiment. However, it should be noted that this theme remains essentially driven by event-based sentiment speculation. After today's broad surge, its sustainability still requires further verification. The innovative drug concept remained active, with stocks like Medicilow, InventisBio, Staidson, Huasen Pharmaceutical, and Joinn Laboratories hitting the limit-up, while Changshan Pharma, Chengdu Pioneer, and Sansheng Pharmaceuticals rose over 10%. On the news front, the 2025 ASCO Annual Meeting is approaching, with 71 original research achievements from Chinese innovative drug companies selected for oral presentations. Companies like Dizal Pharma and Grand Pharma disclosed breakthrough clinical data. Analysts pointed out that the global exposure from ASCO backs the technical prowess of domestic pharmaceutical firms, while the implementation of international R&D outcomes further expands market potential. The record-high upfront payments for domestic innovative drugs going global validate overseas recognition of local innovation capabilities, significantly improving long-term profit expectations. Market-wise, the recent resonance between short-term active capital and long-term allocation funds has driven trend-based movements in related innovative drug stocks. Unless core targets show clear negative feedback, the sector may still have further upside, with potential catch-up opportunities within. On individual stocks Today, market profitability improved markedly, with over 100 stocks hitting limit-ups. While the number of limit-ups was notably higher in unmanned vehicle and digital currency concepts, the current market leaders remain tied to nuclear power (controlled fusion concept). For instance, Sunwire and Rongfa Nuclear both advanced, while Zhongchao Holdings surged for 12 limit-ups in 19 days, Prince New Materials recorded 7 in 14 days, and Hefei Metalforming achieved 3 in 4 days. Overall, some mid-to-low-tier stocks diverged, but as long as core leaders remain strong, the nuclear power sector may see repeated rebounds, offering intraday low-entry arbitrage opportunities. Additionally, high-position group stocks continued to diverge today. Yongan Pharma, Laixintongling, and Suzhou Longjie fell to limit-downs, while Zhengzhong Design, Jinlongyu, and Yushanxia A also posted significant declines. With the emergence of new themes, it is reasonable for some funds to switch between high and low positions. However, due to the improvement in short-term sentiment, the high-position clustering will not collapse all at once. It is expected that the market will continue to exhibit a pattern of reduced-capacity speculation, and the principle of retaining the strong and discarding the weak should be adhered to in response. Outlook Analysis Today's market saw a broad-based rebound, with all three major indices closing in the red. Over 4,400 stocks rose. Trading volume also increased, with a single-day surge exceeding 170 billion yuan, bringing the total trading volume of the two exchanges back to around 1.2 trillion yuan. From a technical perspective, the Shanghai Composite Index successfully held above the 30-day moving average while effectively standing above the 5-day moving average again, suggesting that the short-term repair rally may continue. However, from a medium-term structural perspective, the market is still mainly characterized by sideways movement. If trading volume fails to increase continuously in the future, it will still be difficult for the index to initiate a wave-like rally. Additionally, from the perspective of the futures market, recent hot topics such as the driverless car concept, innovative drugs, and nuclear power stocks have all maintained their strength, and newer themes like digital currency have also strengthened further during the trading session. However, given the current trading volume, it is not enough to support the simultaneous operation of so many hot topics. After today's broad-based rally, the market is likely to differentiate again. In this context, grasping the rotation rhythm among various themes will be the key focus for the market outlook. Market News Highlights 1. Domestic Airline Fuel Surcharge to Be Reduced Starting June 5, with Exemption for Flights Under 800 Kilometers Cailian Press reported on May 29 that an airline announced today that it would adjust the fuel surcharge collection standards for domestic passenger transportation starting from June 5, 2025 (including ticket issuance dates). Specifically, the fuel surcharge will be waived for flights under 800 kilometers (inclusive), while a 10-yuan fuel surcharge per passenger per flight segment will be collected for flights over 800 kilometers. The previous adjustment took effect from April 5, 2025 (ticket issuance dates), with adult passengers paying a 20-yuan fuel surcharge for flights over 800 kilometers and a 10-yuan fuel surcharge for flights under 800 kilometers (inclusive). (Yicai) 2. US Decides to Revoke Chinese Student Visas; Foreign Ministry: Discriminatory Practice Exposes So-Called "Free and Open" Lie Cailian Press reported on May 29 that Foreign Ministry spokesperson Mao Ning hosted a regular press conference on May 29. A reporter asked about the recent US decision to start revoking visas for Chinese students, including those "with ties to the Chinese government or studying in key fields." What is the Foreign Ministry's comment on this US decision? Mao Ning responded that the US side has unreasonably canceled visas for Chinese students under the pretext of ideology and national security, seriously infringing upon the legitimate rights and interests of Chinese students and interfering with normal people-to-people exchanges between the two countries. The Chinese side firmly opposes this and has lodged representations with the US side. "This politically discriminatory move by the US side has exposed the so-called lie of 'freedom and openness' that the US has always touted, and will only further damage the US's own international image and national credibility," Mao Ning emphasized.

Previously, the US implemented reciprocal tariffs, sparking market concerns that a potential disruption in trade chains could drag down economic growth and push up inflation. Risk assets were broadly sold off, and copper prices were not spared from the downturn. Subsequently, trade conflicts began to ease, and copper prices embarked on a path of recovery. However, it can be observed that SHFE copper faced significant resistance at the gap left by the sharp drop in early April, while support below was also strong, with futures prices fluctuating rangebound around the 78,000 yuan level. Why has SHFE copper been caught in a dilemma recently? Is there a possibility for futures prices to break out of the rangebound situation in the future? Uncertainty remains over the tariff grace period Recently, negotiations between the US and various countries have been underway. In particular, after the 90-day reciprocal tariffs between China and the US were reduced to 10%, the market briefly traded on the logic of easing tariff tensions. However, the progress of some negotiations has been slow. Recently, Trump's attitude shifted, and he again proposed imposing tariffs on the EU. The market is also concerned about the possibility of renewed trade frictions after the tariff grace period. The positive impact of the short-term tariff easing has largely been priced in, making it difficult to provide further support for market sentiment. In addition, to divert attention from domestic contradictions such as the massive scale of debt, it is difficult for the US to restore tariffs on other countries to pre-2024 levels, and concerns about the economic growth outlook cannot be easily allayed. Judging from the recently released US economic data, the impact of tariff disruptions has so far been limited. US inflation in April was lower than expected, and the monthly rate of retail sales rose by 0.1%, exceeding expectations. The Markit manufacturing and services PMIs for May also exceeded expectations. However, the issue of the US's high debt burden still persists, with a significant amount of US debt maturing in June. Recently, Trump's tax cut bill narrowly passed the House of Representatives, and the market continues to worry about the US's mounting debt. The impact of tariff increases on the economy also remains to be tracked. Mining-side processing fees remain at extremely low levels, and the supply side appears somewhat fragile Since last year, tight ore supply has been a major factor plaguing the copper market. However, except for the news in March this year that Tongling Nonferrous Metals Group would carry out production cuts and maintenance, the production of domestic smelters has largely not been constrained by tight ore supply and extremely low processing fees. Therefore, against the backdrop of steady to increasing production in the smelting sector, the issue of tight ore supply alone is unlikely to provide a substantial boost to copper prices. However, it cannot be overlooked that the current spot processing fees for domestic copper concentrates have fallen below -$40/dmt, and the annual and quarterly processing fees negotiated between domestic smelters and overseas miners are increasingly lower. Recently, the market has focused its attention on the mid-year negotiations between global copper mining giant Antofagasta and Chinese and Japanese smelters. Previously, sources revealed that due to tight copper concentrate supply, smelters may request a "zero-dollar" processing fee, or even a negative value, for the second half of 2025. If the rumors are true, the output of by-products such as sulphuric acid may not be sufficient to offset the losses, undoubtedly exacerbating the production pressure on domestic small and medium-sized smelters. Meanwhile, there have been more disruptions in overseas mining operations. Last Tuesday, Ivanhoe Mines announced that mining operations at its Kakula underground mine within the Kamoa-Kakula copper mining area in the Democratic Republic of Congo (DRC) had been temporarily suspended, primarily due to the impact of an earthquake. Its Phase I and II beneficiation plants continue to operate at low capacity using surface ore stockpiles, while operations at the Kamoa mine and Phase III beneficiation plant remain unaffected. Kamoa-Kakula is a world-class, large-scale, ultra-high-grade copper mine. The Phase I mine, with a capacity of 6 million mt/year, was constructed at Kakula, while Phase II utilizes existing facilities at the Kansoko mine to increase capacity to 12 million mt/year. In the evening of May 23, Zijin Mining, another major investor in the mine, also issued an announcement, stating that the earthquake is expected to adversely affect the achievement of the Kamoa-Kakula copper mine's annual planned production, with the specific extent of the impact requiring further assessment based on the investigation results. Overall, due to the faster expansion of global smelters, the copper ore supply tightness is relatively severe and is unlikely to ease significantly in the short term. Against the backdrop of strong bargaining power of miners, the copper concentrate TCs negotiated by smelters are becoming increasingly lower, with the possibility of approaching zero. In the early stage, smelters adjusted their operations through measures such as long-term contracts, supplementing with other raw materials, and offsetting profits with by-products such as sulphuric acid, maintaining overall stable production. Recently, during the concentrated maintenance period of the year, there are still few maintenance plans among domestic smelters, and there has been no significant production cut due to ore shortages. Going forward, attention should still be paid to the long-term contract levels of copper concentrate TCs negotiated between overseas miners and domestic smelters. Before the ore supply tightness can be transmitted to the smelting end, it will still be difficult to provide more upward momentum for copper prices. If smelters indeed undertake substantial production cuts, copper prices may experience a sharp increase. Social inventory of domestic copper cathode accumulates slightly, with expectations of weakening demand Recently, the performance of global copper visible inventories has been divergent. COMEX copper inventories have continued to rebound, rising from around 92,000 mt in early March to approximately 175,600 mt currently, reflecting the process of global copper flowing into the US amid expectations of a possible tariff hike on imported copper by the US. Correspondingly, LME copper inventories have been continuously pulling back, declining from around 260,000 mt in early March to approximately 164,700 mt currently, with a significant destocking amplitude. The current price spread between COMEX copper and LME copper remains at a relatively high level. Before the implementation of copper-related tariffs by the US, global copper will continue to flow into the US due to the existence of profits. Domestically, the traditional peak season of "Golden March, Silver April" has passed. Coupled with the rebound of copper prices from low levels, the downstream demand in the domestic copper market has weakened compared to the previous period, and the destocking of social inventories of copper cathode in China has halted. However, overall, the extent of inventory buildup has been very limited so far, and the inflow of domestic inventories has also been influenced by the outflow of exchange warrants and the inflow of inventories from bonded areas. From the downstream industry data released this month, the high-growth momentum of power grid investment continues, and the State Grid Corporation of China's annual record-high target is relatively certain. This aspect of demand will continue to support copper prices. According to data from the National Bureau of Statistics, automobile production continued to increase YoY, and industry prosperity persisted. However, in April, the production of refrigerators and air conditioners both pulled back, indicating a potential weakening in demand in this sector. Overall, during the moratorium period, global trade frictions have eased compared to the previous period, but uncertainties in negotiations still persist. Moreover, against the backdrop of deglobalization, market concerns about the economic outlook are difficult to completely dispel, and the suppression at the previous gap still exists. On the supply and demand side, concerns about tight ore supplies have lingered for a long time, and recent disruptions at the ore end have increased again, continuously consolidating the downward support for copper prices. Additionally, the siphon effect of the US has also made it difficult for copper inventories in other regions to accumulate significantly. However, the output of copper cathode remains stable, and there are expectations of a marginal weakening in demand. Therefore, a breakout from the current stalemate in SHFE copper prices may require more definitive changes to occur.

★Macro★ 01 ★★★ PBOC Conducts CNY500 Billion MLF Operation on May 23 with a One-Year Tenor The People's Bank of China (PBOC) announced that, to maintain ample liquidity in the banking system, it would conduct a CNY500 billion Medium-term Lending Facility (MLF) operation on May 23, 2025 (Friday), with a one-year tenor, through fixed-quantity, interest-rate tendering, and multiple-price bidding. 02 ★★★ US Initial Jobless Claims Fall to 227,000 Last Week The number of Americans filing new claims for unemployment benefits fell to 227,000 last week, the lowest level since the week ending April 19. Economists had forecast 230,000 claims, compared with 229,000 in the prior week. 03 ★★★ Global Crude Steel Production Down 0.3% YoY in April 2025: World Steel Association Global crude steel production fell 0.3% YoY to 155.7 million mt in April 2025, according to data from the World Steel Association. ★Industry and Downstream Sectors★ 01 SMM Inventories of Ten Ports According to an SMM survey, the total inventories at 10 ports tracked by SMM stood at 104.28 million mt on May 22, down 1.19 million mt WoW. Destocking was more pronounced for coarse fines and lump ore, while there was a slight inventory buildup for concentrate fines and pellets. 02 [SMM Weekly HRC Balance] Production Declines Again, HRC Inventory Drawdown Accelerates This Week This week, maintenance at some steel mills in north and east China affected production. HRC production declined slightly. According to SMM's statistics this week, the social inventory of HRC at 86 warehouses (large sample) nationwide was 3.1196 million mt, down 176,600 mt WoW (-5.36% WoW, -22.31% YoY). The nationwide social inventory continued to decline this week, with the rate of decline expanding. By region, destocking was more pronounced in the east and north China markets than in the south and central China markets, as well as in north-east China. 03 SMM Summary of Construction Steel Inventories Nationwide On May 22, SMM's nationwide total rebar inventory was 5.6865 million mt, down 141,900 mt WoW (-2.43% WoW, -21.16% YoY). The nationwide total wire rod inventory was 1.1285 million mt, down 125,000 mt WoW (-9.97% WoW, -31.07% YoY). 04 China's Cumulative Installed Power Generation Capacity Nears 3.5 Billion kW in First Four Months Statistics released by the National Energy Administration show that as of the end of April, China's cumulative installed power generation capacity reached 3.49 billion kW, up 15.9% YoY. Among them, the installed power generation capacity of solar energy was 990 million kW, up 47.7% YoY; the installed capacity of wind power was 540 million kW, up 18.2% YoY. From January to April this year, the investment completed in power supply projects by major power generation enterprises nationwide was 193.3 billion yuan, up 1.6% YoY; the investment completed in power grid projects was 140.8 billion yuan, up 14.6% YoY. 05 The number of land plots proposed to be acquired using special bonds announced by various regions approached 3,000 The pace of announcing the use of special bonds for land acquisition has significantly accelerated across regions. According to incomplete statistics from China Index Academy, as of May 20, the number of idle land plots proposed to be acquired using special bonds announced nationwide approached 3,000, with a total area exceeding 133 million m² and a total amount exceeding 350 billion yuan. ★Other Hot Topics★ ⭕ UK's 30-year Treasury bond yield rose to its highest level since April 9, reaching 5.579%, up 6 basis points on the day. ⭕US Fed Governor Waller stated that if tariffs decrease, the US Fed is expected to cut interest rates in the second half of 2025. ⭕ [Han Zheng Attends and Delivers a Speech at the Opening Ceremony of the 2025 Global Trade and Investment Promotion Summit] Vice President Han Zheng attended and delivered a speech at the opening ceremony of the 2025 Global Trade and Investment Promotion Summit in Beijing. Han Zheng stated that President Xi Jinping has pointed out the need to actively promote the deep integration of the internet, big data, artificial intelligence, and the real economy, accelerate the development of new quality productive forces, and provide new momentum for high-quality development. Currently, a new round of technological revolution and industrial transformation is advancing, with the widespread application of new industries and technologies represented by the digital economy and artificial intelligence, which are changing the global trade and investment landscape and presenting significant development opportunities and broad prospects. As the era of digital intelligence accelerates, we must work together to actively promote global trade and investment transformation and foster common development. ⭕[Anhui Initiates Level IV Flood Control Emergency Response in Eight Cities] According to forecasts from Anhui province's meteorological department, from May 22 to 23, there will be heavy rain in Hefei, Lu'an, Wuhu, Xuancheng, Tongling, Chizhou, Anqing, Huangshan, and other cities, with torrential rain in some areas of Lu'an, Chizhou, Anqing, and Huangshan, accompanied by short-term heavy rainfall, thunderstorms, and gales. In accordance with the provisions of the "Anhui Provincial Flood Control and Drought Relief Emergency Plan," the provincial flood control headquarters decided to initiate a Level IV flood control emergency response in Hefei, Lu'an, Wuhu, Xuancheng, Tongling, Chizhou, Anqing, and Huangshan at 16:00 on May 22. ⭕[Jiangxi Initiates Flood Warning Response and Level IV Emergency Response for Major Meteorological Disasters] The Jiangxi Provincial Meteorological Service initiated a Level IV emergency response for major meteorological disasters in response to the heavy rainfall weather process. From the daytime of May 22 to 23, Jiangxi Province experienced a significant convective precipitation weather process from north to south. Heavy rainfall occurred in parts of the central and northern regions, with torrential rain in localized areas. Some regions were also accompanied by strong thunder and lightning, thunderstorm gales of level 8 to 10, and short-term heavy rainfall. The accumulated rainfall was 40 to 70 millimeters in northern and central-northern Jiangxi, exceeding 120 millimeters in localized areas; it was 10 to 30 millimeters in southern central Jiangxi and southern Jiangxi, with 40 millimeters in localized areas. At 10:00 on May 22, the Jiangxi Provincial Meteorological Observatory issued a blue alert for heavy rainfall. ⭕[AmCham China President: US Companies Will Continue to Invest in China] The 2025 Global Trade and Investment Promotion Summit was held in Beijing. Michael Hart, President of the American Chamber of Commerce in China (AmCham China), stated that China, as the world's second-largest economy, still has significant room for economic growth in the next decade and will continue to focus on innovation. US companies will continue to invest in China and participate in its economic growth and innovation. Regarding tariff issues, Hart mentioned that the new US administration's tariff policies have attracted global attention. However, the tariff war is like a "test of facts," proving that China is an important commodity market for the US and a crucial supply source for US goods. Maintaining supply chain resilience will benefit both countries. ⭕ [TISCO Group and Pingmei Shenma Group Sign Strategic Cooperation Agreement] On May 19, TISCO Group and Pingmei Shenma Group held a signing ceremony for a strategic cooperation agreement. Wu Xiaodi, Secretary of the Party Committee and Chairman of TISCO Group, Gao Feng, Member of the Party Committee Standing Committee and Deputy General Manager of TISCO Group, Li Yanhe, General Manager of Pingmei Shenma Group, and Wang Anle, Deputy General Manager of Pingmei Shenma Group, along with relevant department and unit leaders from both sides, attended the ceremony. ⭕ [Ansteel Group Mining Company Controls 8.8 Billion Tons of Iron Ore Resources] Recently, Ansteel Steel stated in an investor relations activity that, facing the severe situation of a weak and fluctuating decline in the steel market, the company has worked hard to expand the market, continuously adjusted product mix to enhance efficiency, tapped into internal potential, significantly improved its sales profit margin, substantially reduced losses across all units in the steel segment, and significantly enhanced production line efficiency and market competitiveness. By implementing the concept of "accounting-based operations" and through measures such as strengthening benchmarking and potential tapping, as well as improving operational efficiency, the company reduced the cost per ton of steel across the entire process by 102 yuan compared to the previous year, reduced the cost of externally purchased energy per ton of steel by 10%, and reduced the cost of pig iron by 12% compared to the previous year. On the procurement side, the company deepened cost-effective and collaborative procurement, continuously reducing the consumption cost of materials per ton of steel. In the first quarter of 2025, the company's net profit attributable to shareholders was -554 million yuan, a year-on-year increase of 66.55%. ⭕ [Shuohuang Railway Marks 25th Anniversary of Operation with Cumulative Freight Volume Exceeding 5.21 Billion Tons] As of May 18, the Shuohuang Railway marked its 25th anniversary of operation, having completed 50,469,820,000 mt of coal transportation and 1,626,740,000 mt of non-coal transportation, with a cumulative cargo transportation volume exceeding 5.21 billion tons, achieving 9,131 consecutive days of safe production and operation. ⭕ [Angang Lianzhong Obtains "Pass" to Japan's High-end Market] Recently, Angang Lianzhong successfully passed the JIS certification, marking the company's acquisition of the "pass" to Japan's high-end market and laying a solid foundation for further enhancing the international competitiveness of its products. ⭕ [Chongqing Iron & Steel Achieves Successful Trial Run of Full-Length Rolling Process for Heavy Plate Production Line] Recently, Chongqing Iron & Steel successfully completed the first trial run of the full-length rolling process for its heavy plate production line, achieving a one-time successful trial run of 30mm-thick sheets & plates! This represents a significant breakthrough for Chongqing Iron & Steel in the field of medium-thickness plate production technology, injecting strong momentum into the company's efforts to explore the high-end product market and enhance its core competitiveness! ⭕[Successful Commissioning of the Upgrade Project for the Electric Control System of the No. 3 Flying Shear at Nanchang Fangda High-speed Wire Rod Mill] Recently, the upgrade project for the electric control system of the No. 3 flying shear at Nanchang Fangda High-speed Wire Rod Mill, designed, supplied, and commissioned by Jingcheng Digital Technology Co., Ltd., was officially commissioned. Through independent technological innovation, the project successfully resolved technical challenges that had plagued the production line for over a decade, helping the enterprise achieve new breakthroughs in cost reduction and efficiency enhancement. ⭕ [Shagang's HRC Reheating Furnace Upgrade Project Starts Production] On May 17, the No. 2 reheating furnace of the HRC reheating furnace upgrade project for Workshop 1 at Shagang, implemented by WISDRI Southern (Hubei) Heavy Industries Engineering Co., Ltd. (WISDRI Southern Refractory & Thermal Engineering Co., Ltd.) on an EPC basis, was successfully ignited, marking the beginning of the furnace drying stage.

》Check SMM metal quotes, data, and market analysis 》Subscribe to view historical price trends of SMM metal spot cargo On May 14, 2025: As of April 30, 2025, all companies have disclosed their 2024 annual reports. According to SMM statistics, a total of 19 publicly listed firms operate copper smelters. These 19 publicly listed firms are: Tongling Nonferrous Metals Group (000630), Jiangxi Copper Corporation (600362), Jinchuan Group International Resources Co., Ltd. (02362.hk), Daye Nonferrous Metals Group (00661.hk), Yunnan Copper (000878), Zijin Mining (601899), Yuguang Gold and Lead Group (600531), Western Mining Co., Ltd. (601168), Yunnan Tin Co., Ltd. (000960), Shandong Humon Smelting (002237), Zhongjin Gold (600489), Baiyin Nonferrous Group Co., Ltd. (601212), Ningbo Jintian Copper (601609), Huludao Zinc Industry Co., Ltd. (000751), North Copper (000737), Zhejiang Chifoo Holding Group Co., Ltd. (002266), Guangdong Feinan Resources Co., Ltd. (301500), Beijing GEEN Environment Engineering Co., Ltd. (603588), and Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. (000060). 2024 Production and 2025 Production Plans for Copper Cathode at Each Smelter According to annual report disclosures and SMM's understanding, the total copper cathode production of the aforementioned 19 copper smelters in 2024 was 10.5558 million mt, with an increase of 642,000 mt, up 6.5% YoY. Data from the National Bureau of Statistics (NBS) shows that the national production in 2024 was 13.644 million mt, with these 19 enterprises accounting for 77.37% of China's total copper cathode production. This figure increased by 1.04% compared to the same period last year. We expect that with the release of new capacity, industry concentration will increase again in the future. Regarding the specific situations of each smelter: Only 4 out of the 19 smelters experienced production cuts. Among them, Yunnan Copper had the largest decline, with a significant drop in production due to the relocation of its headquarters smelter. The largest increase was seen at Jiangxi Copper, with an annual copper cathode production of 2.2919 million mt, up 194,600 mt or 9.3% YoY in 2024, continuing to lead the copper industry. This was followed by North Copper, with a production increase of 178,800 mt compared to 2023, reaching 31.32 mt. Then came Jinchuan Group, with a production of 1.3272 million mt, an increase of 158,100 mt compared to 2023. In addition, based on their 2025 production plans, the total production in 2025 is expected to be 11.4028 million mt, an increase of 847,000 mt or 8%. According to SMM statistics, the new production from domestic smelters from January to May 2025 has already reached 536,400 mt, and it is highly probable that the annual increase of 847,000 mt will be achieved. In 2025, two smelters are expected to increase their production by more than 200,000 mt. Among them, the largest increase is expected to be from Yunnan Copper, with an increase of 254,000 mt, mainly due to the resumption of production after the relocation of the smelter and the commissioning of new smelters. Next is Jinchuan Group, which is expected to increase its production by 252,800 mt, thanks to the commissioning of a new smelter. In addition, due to the tight supply of copper concentrates, six smelters are expected to implement production cuts in 2025, two more than last year. Overall, although copper concentrate TCs hit a record low this year, it has not hindered the expansion pace of copper smelters.

The market opened lower and closed higher throughout the day, with the ChiNext Index leading the gains. The total trading volume on the Shanghai and Shenzhen stock exchanges reached RMB 1.29 trillion, a decrease of RMB 174.9 billion from the previous trading day. On the futures market, hot topics rotated rapidly, with more stocks rising than falling. Over 3,800 stocks across the market advanced. In terms of sectors, military stocks continued to surge, with over 20 stocks, including AVIC Chengfei, hitting the daily limit. AI hardware stocks rebounded, with Walvax Biotech hitting the daily limit. The ST sector was active, with nearly 40 stocks, including ST Ruihe, hitting the daily limit. On the downside, PEEK material concept stocks adjusted, with Xinhan New Materials falling over 10%. By the close, the Shanghai Composite Index rose 0.28%, the Shenzhen Component Index rose 0.93%, and the ChiNext Index rose 1.65%. Sector Analysis In the sector, military stocks remained strong, with stocks such as AVIC Chengfei, Huawu Corporation, Haoneng Corporation, Lijun Corporation, Chengfei Integration, and Tongda Cable hitting the daily limit. Huatai Securities believes that the fundamentals of the military industry in 25Q1 may already be in a recovery trend. On one hand, starting from 2025, multiple countries have increased their defense budgets, leading to a significant increase in global military spending and a more active global arms trade market. On the other hand, 2025 marks the final year of the "14th Five-Year Plan," and previously pent-up demand is expected to be released rapidly. Since February 2025, the fundamentals of some enterprises have shown significant improvement, particularly in the aerospace and missile segments. Some upstream enterprises have seen notable improvements in their order volumes both year-over-year (YoY) and month-over-month (MoM), reflecting an increase in downstream demand on the balance sheet. Additionally, order data disclosed by some enterprises also indicate that the downstream sector is gradually entering a high-growth phase. Therefore, from a medium and long-term perspective, military stocks still hold allocation value. However, it should be noted that the military sector has surged with increased trading volume for two consecutive days amid event-driven catalysts, and short-term sentiment may be approaching a peak. Internal disagreements among individual stocks within the sector may intensify going forward, so it is advisable to focus on core front-runner stocks. AI hardware sectors, including CPO and high-speed copper cable connections, rebounded. New Flyoff and InnoLight Technology both rose over 10%, while Walvax Biotech and Cambridge Industries Group hit the daily limit. Other stocks, such as TFC Communication, Linktel Technologies, Zhaolong Interconnection, and Tera Photonics, also led the gains. On the news front, a spokesperson for the US Department of Commerce stated on Wednesday that President Trump plans to lift restrictions imposed during the Biden administration on the export of advanced artificial intelligence (AI) chips. From a market perspective, the AI hardware sector, represented by CPO, includes some technology heavyweights with relatively high earnings certainty. The previous adjustments were more driven by sentiment expectations. Today, under the aforementioned event-driven catalysts, the traces of capital inflow and allocation are evident. Therefore, the subsequent trend is worth monitoring. If the rebound can continue, it will have a strong driving effect on both the index and short-term sentiment. The concept of magnetic levitation compressors is gradually gaining traction, with individual stocks such as Shandong Zhanggu, United Precision, Baida Seiko, Xinlei Co., Ltd., Hanbell Precise Machinery, Jintongling, and Moon Environment hitting the daily limit up. On the news front, recently, the President of Danfoss's magnetic levitation compressor business stated, "In the next three years, the demand for magnetic levitation compressors in China's data centers is expected to at least double." In 2024, Danfoss Turbocor's data center-related business in China tripled, and it is expected to grow by around 50% this year. As a relatively new topic concept in the current futures market, it is more likely to gain favour from short-term active funds. If it is further strengthened in the future, attention could also be paid to whether it extends and diffuses towards data centers and computing power directions. Individual Stocks At the individual stock level, although the number of stocks that fell sharply today was not large, most high-priced stocks fell into adjustment. The number of consecutive daily limit-up stocks in the market dropped to 4 today. Chongqing Three Gorges Paints Co., Ltd., which previously had 6 consecutive daily limit-ups, eventually fell by more than 4%, while Jingjin Electric, which previously had 4 consecutive 20CM daily limit-ups, fell by more than 10%. In addition, popular high-priced stocks such as QuanZhu Technology, Hongbo Co., Ltd., Hongbaoli, Zhongxin Fluorine Material, Xinhan Advanced Materials, and Hongbaoli also suffered heavy losses. It can be seen that in an environment with a lack of incremental funds, the market's willingness to chase high prices is low. On the other hand, nearly 100 stocks in the market still rose by more than 9% today, and the overall short-term heat was not low, but it was mainly centered around two lower-tier topics: military industry and compressors. Overall, compared to clustering in high-priced stocks, funds currently prefer to tap into potential in low-priced stocks. Therefore, it is still more appropriate to look for low-absorption opportunities amidst the rotation of hot topics in subsequent responses. Outlook Analysis Today's market opened low and closed high throughout the day, with all three major indices closing in the red, basically reversing the bearish candlesticks left yesterday. Most individual stocks rose, with fewer falling. However, it should be noted that trading volume contracted again today, and hot topics in the futures market remained relatively scattered, lacking an absolute core leading the gains. Therefore, for the future market outlook, if there is no continuous influx of incremental funds, it is still expected to maintain a structure of oscillating higher. CITIC Securities stated in a recent research report that with the end of the earnings reporting season and the release of favorable policies, there is still room for risk appetite to rebound in May. It is recommended to focus on two major directions: first, the AI technological revolution and China's self-reliance in technology (new quality productive forces, advanced manufacturing, national defense and military industry, etc.); second, high-quality domestic circulation consumer assets that benefit from policy support for expanding domestic demand, with expected fundamental improvements and cost-effective valuations. Market News Focus 1. CPCA: National passenger vehicle market retail sales reached 1.791 million units from April 1-30, up 17% YoY Caijing.com.cn, May 8 - According to data released by the China Passenger Car Association (CPCA), from April 1-30, retail sales in the national passenger vehicle market reached 1.791 million units, up 17% YoY and down 8% MoM. Cumulative retail sales since the beginning of the year reached 6.918 million units, up 9% YoY. From April 1-30, retail sales in the national new energy passenger vehicle market reached 922,000 units, up 37% YoY and down 7% MoM. The retail penetration rate of the new energy vehicle market was 52.3%. Cumulative retail sales since the beginning of the year reached 3.342 million units, up 37% YoY. 2. Ministry of Commerce: China is willing to strengthen cooperation with all countries to promote the healthy and sustainable development of cross-border e-commerce Cailian Press, May 8: Starting from May 2, the US officially canceled the tax exemption policy for small-value parcels from China, prompting some retailers in certain countries to adjust or even suspend their business operations in the US. In response, the spokesperson of the Ministry of Commerce stated that cross-border e-commerce directly meets the personalized needs of consumers in various countries, boasting unique advantages such as high efficiency, fast delivery, and cost savings. The recent cancellation of the tax exemption policy for small-value parcels from China by the US will harm the interests of enterprises and consumers in both countries, and we firmly oppose this move. I would like to emphasize that the cancellation of the tax exemption policy for small-value parcels from China by the US cannot change the momentum of the rapid development of cross-border e-commerce. We are willing to strengthen cooperation with all countries to jointly create a fair and predictable policy environment and promote the healthy and sustainable development of cross-border e-commerce.