SMM Nickel October 21 News: Macro and Market News: (1) Foreign Ministry Spokesperson Guo Jiakun presided over a regular press conference yesterday. A reporter asked that China and the US will hold a new round of China-US economic and trade consultations, and US President Trump stated that the US has listed rare earths, fentanyl, and soybeans as the three major issues raised by the US towards China. In response, Guo Jiakun said that China's position on handling China-US economic and trade issues is consistent and clear. Tariff wars and trade wars are not in the interest of either side, and both sides should resolve any issues through consultations on the basis of equality, respect, and mutual benefit. (2) The National Bureau of Statistics (NBS) released data today showing that, based on preliminary calculations, the gross domestic product (GDP) for the first three quarters was 101.5036 trillion yuan, calculated at constant prices, up 5.2% YoY. By industry, the value added of the primary industry was 5,806.1 billion yuan, up 3.8% YoY; the value added of the secondary industry was 36,402 billion yuan, up 4.9% YoY; and the value added of the tertiary industry was 59,295.5 billion yuan, up 5.4% YoY. By quarter, GDP grew 5.4% YoY in Q1, 5.2% in Q2, and 4.8% in Q3. On a quarterly basis, GDP grew 1.1% in Q3. Spot Market: On October 21, the price of SMM #1 refined nickel was 121,100-123,900 yuan/mt, with an average price of 122,500 yuan/mt, up 400 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 2,400-2,500 yuan/mt, with an average premium of 2,450 yuan/mt, flat from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -100-200 yuan/mt. Futures Market: The most-traded SHFE nickel contract (2511) fluctuated rangebound at high levels during the night session, closing slightly higher at the tail. On the 21st, the SHFE nickel early session opened at 121,270 yuan/mt (up 520 yuan), with the futures maintaining strong performance. Recent focus should be on US inflation data and US Fed policy signals, while progress in China-US trade talks will also impact the market. Against the backdrop of weak fundamentals and turbulent external conditions, nickel prices are expected to remain in the doldrums in the short term, with the reference range for the most-traded SHFE nickel contract at 120,000-124,000 yuan/mt.

Growing uncertainty surrounding the direction of tariffs and oil prices, as well as their impact on inflation, is heightening a risk ahead of tonight's US Fed decision: that Fed officials may not be able to cut interest rates twice this year as they had previously anticipated... The US Fed is set to announce its June interest rate decision at 2 a.m. Beijing time on Thursday, and it is easy to foresee that the "dot plot," which reflects Fed officials' expectations for interest rate policy changes this year, will clearly be the focus of many market participants at that time. In the previous dot plot released in March, the median expectation of Fed officials indicated two interest rate cuts before the end of this year. Meanwhile, federal funds rate futures traders currently believe there is only a 37.7% probability that the Fed will actually cut interest rates less than twice! And this clearly poses a significant risk to tonight's market: if the June dot plot reflects only one interest rate cut expected this year, will investors who are "full of anticipation" for two cuts be greatly disappointed? Matthew Ryan, head of market strategy at financial services firm Ebury, said in an email on Monday that the company believes two interest rate cuts this year will still be the baseline expectation for most Fed policymakers. Given the significant uncertainty surrounding current tariffs, they may not have enough confidence to substantially change their views. However, there is also a risk that a minority of officials believe the number of interest rate cuts this year will be fewer than previously expected, which could be enough to tilt the decision-making balance toward only one cut (25 basis points) in 2025." He added, "A hawkish dot plot, combined with Powell's remarks emphasizing no rush to cut interest rates, could provide some room for the US dollar to strengthen in the second half of this week." Over the past three months, Fed officials have consistently expected the inflation rate and core inflation rate for 2025 (based on their preferred inflation indicator, the PCE price index) to reach 2.7% and 2.8%, respectively, before gradually declining to the target level of 2% in 2027 and beyond. Since December last year, they have also "held steady" for three consecutive policy meetings, maintaining the federal funds rate target between 4.25% and 4.5%. Currently, traders generally expect Fed policymakers to implement the first interest rate cut of 2025 in September. In fact, the risk factors that have made the Fed reluctant to cut interest rates sooner have been present and continue to accumulate recently. US President Trump announced a 10% base tariff on most imported goods on April 2, and during the 90-day suspension period for reciprocal tariffs he set (which will expire in July), there is still a lack of a permanent solution to this trade war, exacerbating the uncertainty surrounding the inflation outlook. Additionally, the conflict between Israel and Iran that erupted late last week has continued into its fifth day, exacerbating oil price volatility and sparking concerns that supply disruptions could trigger a new wave of inflation. Greg Faranello, head of US rates trading and strategy at New York-based AmeriVet Securities, said market participants would react on Wednesday to "the dot plot and how it correlates with the US Fed's inflation forecast." Faranello noted that if the Fed's latest dot plot projects only one interest rate cut in 2025, this could be perceived as "more hawkish" and might lead to an increase in short-term interest rates, such as the 2-year US Treasury yield. This could present a buying opportunity for some investors. Faranello wrote that Treasury yields have been experiencing sideways movement for about two months, with participants in the interest rate market stating, "We don't know what's going to happen next." Faranello also mentioned that the Fed might not cut interest rates at all this year. Faranello believes that traders may not focus too much on the Fed's updated interest rate projections for 2026 and 2027 compared to the expectations for this year's rate path on the dot plot, given the significant uncertainties surrounding the inflation outlook. Moreover, they may react more cautiously to Fed Chairman Powell's press conference, as the Fed Chairman's term is set to end next year, and Trump will be seeking a successor. "The overall trajectory of interest rates will definitely be lower—that's for sure. The question is how quickly we get there," the strategist added.

On Tuesday, silver prices in London surged significantly, breaking through the $37 per ounce mark with a gain of over 2%. This also marked the fifth consecutive trading day in which silver prices diverged from gold prices. Historical data shows that over the past half-century, silver and gold prices have moved in the same direction on 78.9% of trading days. UBS analysts pointed out that despite the recent gold-to-silver and gold-to-platinum price ratios being favorable for silver and platinum prices to rise, it is difficult to determine whether market participants are truly engaging in catch-up trading. Currently, the gold-to-silver ratio has fallen to 91, slightly above the ten-week low of 90.5 reached last Tuesday, but well below the level above 100 seen in April when Trump announced the trade war. Theoretically, when the gold-to-silver price ratio is too high, the market will start to push up silver prices to narrow the price spread between the two metals. Gold's Logic Remains Unchanged One point that surprised investors was that amid the ongoing Middle East conflict, gold prices fell on Tuesday, retreating from $3,400 per ounce to around $3,390. Meanwhile, due to concerns that the Strait of Hormuz shipping lane could be blocked due to the conflict, Brent crude oil prices soared above $78 per barrel on Tuesday, reaching the highest level since late January and more than 30% above the four-year lows seen in April and May. The movement of gold prices is clearly opposite to that of most safe-haven assets. However, UBS believes that gold's current consolidation is setting the stage for the next round of gains, as bullish sentiment towards gold remains unchanged. Nicky Shiels, a strategist at MKS PAMP, a Swiss gold bar refining and financial group, added that gold is still expected to reach a high of $3,500, as the outbreak of conflict between Israel and Iran could be a catalyst for nuclear war or an even larger conflict. Industrial metals, particularly overbought ones like platinum, may face stress tests as traditional safe-haven assets will remain more popular. Carsten Menke, head of research at Julius Baer Group in Switzerland, also told the media that considering the potential consequences of the conflict and the typical timidity of short-term traders in the market, gold's reaction may seem surprising at first glance. However, he emphasized that a closer look reveals that this aligns with the historical pattern where geopolitical shocks do not sustainably push up gold prices. Notably, many analysts are waiting for the US response to the conflict between Iran and Israel. As US President Trump left the G7 summit early and expressed a reluctance to mediate the conflict, the market is concerned that the US may further support Israel. Amid these concerns, silver prices broke through on Tuesday.

[SMM Analysis: Cost Support for Silicone Declines, but Operating Rates Expected to Remain High] According to SMM, the mainstream transaction prices of domestic DMC fell to around 10,700 yuan/mt this week. Monomer enterprises in east China quoted prices at 10,500 yuan/mt this week, a decrease of 800 yuan/mt WoW. The low market price approached the 10,000 yuan/mt threshold. However, under the current cost support, monomer enterprises' willingness to lower prices has slightly decreased.

As trade tensions eased, US consumer confidence improved for the first time in six months, and pessimism over soaring underlying inflation also significantly abated. Data released by the University of Michigan on Friday showed that the preliminary consumer confidence index for June stood at 60.5, up 16% MoM and higher than the expected 54. This marked the first increase in consumer confidence since December last year. Joanne Hsu, director of the University of Michigan's Surveys of Consumers, said that consumers appeared to have recovered to some extent from the shock of the extremely high tariffs announced in April and the policy fluctuations that followed in subsequent weeks. However, consumers still believe that the economy faces broad downside risks. Nevertheless, consumer confidence remains about 20% lower than it was in December last year, and Americans could become nervous again if trade conflicts flare up anew. In addition, all five index components rose, with particularly large increases in short- and long-term expectations for business conditions, consistent with the perception that tariff pressures have eased somewhat. Their views on business conditions, personal finances, purchasing conditions for big-ticket items, the labour market, and the stock market are all significantly lower than they were in December 2024, six months ago. Despite the notable improvement in the economy this month, consumers remain cautious and worried about the economic trajectory. So far, the Trump administration has made little progress in trade negotiations, and with reciprocal tariffs set to be re-imposed on July 8, Trump has less than a month to consult with over a hundred trading partners. Notably, Trump's tariff plans have also encountered obstacles at home. Previously, the US Court of International Trade suspended almost all tariffs targeting specific countries on the grounds that Trump had overstepped his authority. However, the US Court of Appeals for the Federal Circuit later granted the Trump administration's request to temporarily stay the trade court's ruling that prohibited the enforcement of multiple tariff executive orders issued by the US government. The trade war initiated by Trump has influenced Americans' attitudes toward the economy, raising questions about what it means for consumer spending, the lifeblood of the US economy. Consumer sentiment has notably weakened, but in recent years, it has not been a reliable indicator for predicting future consumer spending. Data released simultaneously showed that the US one-year inflation rate expectation fell to 5.1% this month from 6.6% last month, and long-term inflation expectations declined for the second consecutive month, dropping to 4.1% from 4.2% in May. Both indices are at their lowest levels in three months. Hsu pointed out that consumers' concerns about the potential impact of tariffs on future inflation eased in June. Despite this, inflation expectations remain higher than the levels in the second half (H2) of 2024, reflecting widespread belief that trade policies may still lead to higher inflation in the coming year. Data released by the US Department of Labor this week showed that consumer prices rose 0.1% in May from the previous month, a smaller increase than market expectations, and concerns that tariffs implemented by Trump would start to drive up prices did not materialize. However, economists generally still expect tariffs to push up prices in the coming months. Mild inflation data has led Trump and other White House officials to once again call on the US Fed to cut interest rates. Trump wrote on Truth Social, "Great inflation numbers! The Fed should cut interest rates by a full percentage point."

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.

Macro News 1. On the afternoon of June 12, Premier Li Qiang met with European Central Bank President Christine Lagarde at the Great Hall of the People in Beijing. Li Qiang pointed out that China and Europe have strong economic complementarity, with China possessing a super-sized market advantage and continuously unleashing market potential. There is significant cooperation potential between China and Europe in many fields. China is willing to strengthen market connectivity and industrial synergy with Europe to add more momentum to their respective development. Lagarde stated that under the current international situation full of uncertainties, maintaining high-level exchanges and dialogue cooperation between Europe and China is crucial. Tariff wars and trade wars only lead to lose-lose outcomes, while adhering to multilateralism and strengthening open cooperation is the right choice. 2. On the afternoon of June 12, the Ministry of Commerce held a regular press conference. A reporter inquired about the first meeting of the China-US economic and trade consultation mechanism. Ministry of Commerce spokesperson He Yadong stated that from June 9 to 10 local time, the China-US economic and trade teams held the first meeting of the consultation mechanism in London, UK. The two sides reached a principled consensus on implementing the important consensus of the June 5 phone call between the two heads of state and the framework of measures to consolidate the outcomes of the Geneva economic and trade talks, making new progress in addressing each other's economic and trade concerns. Regarding the rare earth issue, as a responsible major country, China fully considers the reasonable needs and concerns of various countries in the private sector, reviews applications for export licenses of rare earth-related items in accordance with laws and regulations, has approved a certain number of compliant applications according to law, and will continue to strengthen the approval of compliant applications. 3. On June 11, People's Bank of China Governor Pan Gongsheng held the first annual meeting with European Central Bank President Christine Lagarde. The two sides exchanged in-depth views on topics including the economic and financial situations of China and Europe, reform of the international monetary system, global financial regulation, and key areas of cooperation between the two central banks. After the meeting, the two sides signed the Memorandum of Understanding on Cooperation between the People's Bank of China and the European Central Bank. 4. A passenger plane crashed at Ahmedabad Airport in Gujarat, India, on June 12. According to reports, all 242 people on board were killed. CCTV News learned that local police found one survivor in the Indian plane crash. 5. Foreign Ministry spokesperson Lin Jian presided over the regular press conference yesterday. A foreign media reporter asked about US President Trump's post on his social media platform, claiming that an agreement had been reached with China, such as China providing rare earth magnets. Lin Jian stated that China always honors its words with actions. Since a consensus has been reached, both sides should abide by it, and China hopes the US will work with China to implement the important consensus reached in the phone call between the two heads of state. Industry News 2. Recently, the People's Bank of China and the State Administration of Foreign Exchange jointly issued the "Several Measures on Financial Support for Fujian to Explore a New Path for Cross-Strait Integrated Development and Build a Demonstration Zone for Cross-Strait Integrated Development." TheThe "Several Measures" proposes 12 policy measures in four aspects: optimizing the financial ecosystem of the cross-strait shared "living circle", serving the construction of the first home for Taiwan compatriots and Taiwan-funded enterprises to land on the mainland, supporting the pilot program for high-level opening-up of cross-border trade in Fuzhou, Xiamen, and Quanzhou, supporting the facilitation of cross-border investment and financing under the capital account, comprehensively strengthening financial supervision, and effectively preventing and defusing financial risks. These measures are of great significance for continuously deepening the construction of a demonstration zone for cross-strait integrated development and promoting high-level financial opening-up. The People's Bank of China and the State Administration of Foreign Exchange will promote the detailed implementation of various policy measures outlined in the "Several Measures", further intensify financial support for the integrated development across the Taiwan Strait, and provide strong financial support for the construction of the demonstration zone for cross-strait integrated development. 3. At the Annual Meeting of the Asia Traders Forum & Stock Trading Summit 2025, Tim LUI, Chairman of the Securities and Futures Commission of Hong Kong, stated that the SFC is studying plans to adjust the number of shares per trading lot, thereby enhancing the convenience of trading high-priced stocks and odd lots, and further improving market liquidity. 4. The General Office of the People's Government of the Guangxi Zhuang Autonomous Region recently issued the "Implementation Plan for Special Actions to Boost Consumption in Guangxi". It mentions expanding support for trade-in policies for automobiles, home appliances, home improvement, kitchen and bathroom products, and e-bikes, as well as subsidies for purchasing new 3C digital products. 5. In 2025, Urumqi plans to develop 82 cultural and tourism projects with a total investment of 44.815 billion yuan and an annual planned investment of 5.4116 billion yuan, representing increases of 76%, 181%, and 170% respectively compared to 2024. The focus will be on introducing a batch of high-end hotel cluster projects, creating a number of major construction projects, and building a comprehensive cultural and tourism space integrating cultural experiences, commercial consumption, and leisure and entertainment. 6. With the "Suzhou Super League" gaining widespread popularity, some netizens have called on Sichuan to host similar football events through the "Ask the Government Sichuan" platform. In response, the Sichuan Provincial Sports Bureau stated that the "Bashu Xiongqi Cup" Sichuan Super League will learn from the healthy development experience of the "Suzhou Super League", improve the event system, strengthen supervision, promote fair competition, mobilize social forces to participate, facilitate the development of mass football and campus football, and support nationwide fitness. Company News 1. New China Life Insurance announced its intention to subscribe for private equity fund shares with an investment not exceeding 15 billion yuan. 2. China Vanke Co., Ltd. announced that it sold a total of 72.96 million A-share treasury shares from June 10 to June 12, which will help supplement the company's working capital. 3. *ST Gongzhi announced that the Shenzhen Stock Exchange has decided to terminate the listing of the company's shares. 4. Yidian Technology stated on an interactive platform that POP MART is an important client of the company. 5. ST Jinyi announced that the other risk warnings for the company's shares have been revoked, and trading will resume from June 16. 6. Xiaofang Pharmaceutical announced a collaboration with Shanghai Dermatology Hospital to develop Compound Platycladi Tincture, a Class 1.1 traditional Chinese medicine for treating hair loss. 7. PowerChina secured a 10.77 billion yuan offshore wind power EPC turnkey project. 8. Qingmu Technology clarified that it currently only provides e-commerce agency operation services for Pop Mart's Tmall flagship store. 9. Taiji Co., Ltd. disclosed that its controlling shareholder and actual controller are planning matters related to changes in company control, leading to a trading suspension. 10. Hengbao Co., Ltd. announced that director and vice president Gao Qiang plans to sell no more than 197,500 shares. 11. Jingjin Equipment reported that its actual controller, chairman, and general manager has been placed under retention. 12. Feiliner completed verification work, with its shares resuming trading on June 13. Global Markets US and European stocks showed mixed performance, with both the S&P 500 and Dow Jones hitting at least three-month closing highs. US stocks opened lower but closed higher, with all three major indices posting slight gains. The S&P 500 rose 0.38%, the Dow gained 0.24%, and the Nasdaq advanced 0.24%. The S&P 500 reached its highest closing level since late February, while the Dow achieved its best close since early March. Oracle surged over 13% to a record high after exceeding Q4 earnings expectations. US fintech firm Chime jumped over 37% on its debut. Boeing fell nearly 5% following an Air India Boeing 787 crash. European indices closed mixed, with Germany's DAX30 down 0.48%. International crude oil futures settled slightly lower. WTI July crude dropped 0.16%, while Brent August crude declined 0.59%. COMEX gold futures rose 0.84% to $3,406.8/oz, and silver futures gained 0.41% to $36.41/oz. Investment Opportunities 1. Pop Mart Expanded Capacity Early This Year, But Demand Far Exceeds Supply Chain Response Media reports indicate that since Chinese New Year, Pop Mart has urgently recalled workers and expanded capacity to meet surging demand driven by rising IP popularity. An insider described this as a "sweet trouble" where market demand vastly outpaces supply chain responsiveness, noting "even overworked sewing machines can't keep up." The core appeal of IP collectibles lies in instant emotional gratification. Labubu's distinctive features meet specific demands, amplified through social media. Current supply shortages and product scarcity further elevate circulation premiums, significantly boosting visibility. Zhongtai Securities released a research report stating that it is optimistic about the investment value of the IP industry and anticipates the growth and commercialization of major IPs. Three directions are worth noting: (1) Leading companies in the IP2C model for trendy toys that possess a high-quality IP matrix, strong operational capabilities, and channel strength; (2) Content producers with strong content creation capabilities; (3) IP operators in the IP2B2C model that possess high-quality IPs and B-end customer resources. 2. German nuclear fusion startup ProximaFusion secures record-breaking funding On Wednesday local time, German nuclear fusion startup ProximaFusion announced that it had raised €130 million (equivalent to $148 million) in a record-breaking funding round. Investors have high hopes that the company will be the first to build the world's first commercial nuclear fusion power plant. ProximaFusion's Series A funding round was co-led by CherryVentures and BaldertonCapital, marking the largest private nuclear fusion investment round in Europe to date. In recent years, market interest in nuclear fusion technology has continued to grow. Founder Securities' machinery equipment team is optimistic that the timeline for global nuclear fusion could be advanced. Currently, the European Commission (EC) has officially launched a four-week consultation period, which will help the EU establish a leading position in global nuclear fusion development and accelerate the commercialization of fusion energy. 3. Cumulative financing exceeds 1 billion yuan in the first half of the year; experts say commercial space is experiencing unprecedented development opportunities Media reports indicate that China's commercial space industry in 2025 is accelerating at an unprecedented pace towards industrialization. One of the most telling signs is the "real money" coming from the capital market. According to incomplete statistics by reporters, in the first five months of this year alone, the publicly disclosed and estimable financing amounts in China's commercial space sector have cumulatively exceeded 1 billion yuan. Recently, there have been continuous developments in the commercial space sector. LandSpace Technology Corporation's independently developed ZQ-2 Modification 2 remote sensing launch vehicle successfully started production and lifted off; Beijing CAS Space Technology Co., Ltd.'s KQ-1 remote sensing 7 launch vehicle was successfully launched; and the "Tada Hu Yang No. 1" satellite was successfully launched by the KQ-1 remote sensing 7 launch vehicle. Experts interviewed stated that after several years of cultivation, China's commercial space industry is flourishing, with enterprises in commercial satellites, commercial rockets, commercial monitoring and control, and other sectors emerging like bamboo shoots after a spring rain. The commercialization of the entire industry chain is being prioritized, and the industry chain ecosystem is continuously improving. With the synergy of policies, technology, and the market, commercial space is experiencing unprecedented development opportunities. 4. AI development brings significant changes to the industry, continuously expanding the space for the industry chain Institutions have pointed out that switching networks are the "blood vessels" of AIDC. Since entering the era of large models, as the scale of clusters has accelerated its expansion, the interconnection requirements between computing cards have rapidly increased. As the hardware core supporting the interconnection network, the industry chain space for switches has been continuously expanding. Guojin Securities believes that domestic large models are rapidly advancing from a scale of hundreds of billions of parameters to trillion and ten trillion parameters, and 800G switches will become an important driver for the rapid growth of the industry. Dell'Oro Group predicts that by 2025, the adoption rate of 800G switch ports is expected to exceed that of 400G data center switch ports, accounting for more than 25% of data center switch ports. The development of the AI industry has brought about significant changes to the switch industry. Along with the development of the domestic AI industry, domestic high-speed switches for training-side applications and domestic medium-speed switches for inference-side applications are on the verge of mass production. CPO, OCS, white-box switches, etc., are expected to become strategic highlands in the domestic switch industry, and enterprises with relevant layouts are worthy of close attention.

On the afternoon of June 12, Premier Li Qiang of the State Council met with Christine Lagarde, President of the European Central Bank, at the Great Hall of the People in Beijing. Li Qiang stated that currently, China-EU relations have become one of the most important bilateral relationships in the world. This year marks the 50th anniversary of the establishment of diplomatic relations between China and the EU. Last month, President Xi Jinping exchanged congratulatory messages with President Costa and President von der Leyen, providing strategic guidance for the two sides to further deepen their partnership. The essence of China-EU relations is mutual benefit and win-win cooperation, and strengthening cooperation between the two sides is an objective need and the general trend. China is willing to continue working together with the EU to consolidate political mutual trust, expand pragmatic cooperation, and jointly promote development and prosperity, benefiting both sides and the world. Li Qiang pointed out that the Chinese and European economies are highly complementary. China boasts the advantage of a super-large market and is continuously unleashing its market potential, indicating significant cooperation potential between China and the EU in many fields. China is willing to strengthen market connectivity and industrial synergy with the EU to add more impetus to their respective development. Against the backdrop of the current headwinds facing economic globalization, cooperation is the only way to achieve win-win results. As two major economies and forces, China and the EU should closely coordinate on multilateral issues, promote open cooperation, and make greater contributions to driving the global economic recovery and improving global governance. China is willing to strengthen cooperation with the ECB in areas such as the reform of the international monetary system. This year, China has implemented more proactive macro policies, intensified counter-cyclical adjustments, and adopted multiple measures to expand domestic demand and boost consumption, fully capable of offsetting the impact of external unfavourable factors. China will firmly expand its opening-up and share development opportunities with other countries. Lagarde stated that amid the current international situation full of uncertainties, it is crucial for Europe and China to maintain high-level exchanges, dialogue, and cooperation. The interests of Europe and China are intertwined, and they share common responsibilities in many aspects, such as safeguarding global financial stability and promoting the development of international trade. Tariff wars and trade wars will only lead to a lose-lose situation, and adhering to multilateralism and strengthening open cooperation are the correct choices. China's innovative development and corporate competitiveness in recent years have been impressive. The ECB is pleased to establish a meeting mechanism for central bank governors with China and hold its first meeting, committed to strengthening communication and coordination with Chinese financial institutions, expanding and deepening cooperation areas, jointly addressing global challenges, and injecting more stability and certainty into the world.

After Trump initiated a global trade war, the UK's merchandise exports to the US in April saw the largest monthly decline since records began in 1997. The latest data released by the UK's Office for National Statistics (ONS) showed that from March, exports of goods to the US, including precious metals, fell by £2 billion (approximately $2.7 billion) to £4.1 billion, the lowest level since February 2022. Meanwhile, imports of goods from the US dropped by £400 million to £4.7 billion. The UK's statistics office stated, "This may be related to the US imposing tariffs on all imported goods." This can be attributed to Trump's announcement on April 2, "Liberation Day," of a 10% base tariff on all UK goods, with higher tariffs of 25% on steel, aluminum, cars, and auto parts exported to the US. Although a framework agreement was reached between the UK and the US on May 8 to reduce car tariffs and eliminate aluminum and steel tariffs, the specific agreement has yet to be fully finalized. Liz McKeown, Director of Economic Statistics at the ONS, said, "After four consecutive months of growth, April saw the largest monthly decline in merchandise exports to the US on record, with most types of goods experiencing a decline following the recent implementation of tariffs." The ONS also noted that most major commodities exported from the UK to the US declined in April: exports of machinery and transport equipment fell by £800 million due to a decline in car shipments, and chemical exports decreased by £300 million. In addition, the UK's economic output also contracted significantly in April. ONS data showed that the UK's gross domestic product (GDP) contracted by 0.3% MoM in April, worse than the expected decline of 0.1%, and marking the largest monthly decline since October 2023. Among them, the services sector, which accounts for the largest share of the economy, contracted by 0.4%, while manufacturing declined by 0.9%.

[SMM Tungsten Daily Review: Favourable Macro Front and Fundamentals Support Maintain Short-Term Tungsten Market Holding Up Well] Today, the tungsten market is mainly characterized by a sideways trend at highs. The Sino-US consultation meeting is expected to ease the trade war, and the market's outlook for tungsten demand is improving. On the ore side: Today, the price of tungsten concentrate ore fluctuates at highs. The supply of ore has loosened somewhat, and market liquidity has improved. However, the mainstream transaction prices in the market remain high. Downstream inventory levels are low, and the willingness to restock has strengthened somewhat. However, due to the high prices, restocking is mainly driven by immediate needs. As of June 12, SMM black tungsten concentrate (65%) closed at 173,000-174,000 yuan/metric tonne, unchanged from the previous trading day.