[SMM Silicon-based PV Morning Meeting Summary: Module Price-holding Sentiment Increases Somewhat, Polysilicon Prices Remain Stable Temporarily] Last week, distributed module prices in China were mostly stable, and enterprises' willingness to hold prices firm increased somewhat, especially among some second-tier companies that had previously seen larger price declines. On the centralized side, projects have increased recently, but prices have started to decline. The lowest ex-factory price for some orders under delivery has fallen to 0.68 Yuan/W, and new order prices have also dipped below 0.7 Yuan/W. Currently, quotes for distributed high-efficiency Topcon modules are: 183 (0.734 Yuan/W), 210R (0.740 Yuan/W), and 210N (0.7425 Yuan/W); for centralized, Topcon 182/183 (0.721 Yuan/W) and 210N (0.741 Yuan/W).

According to SMM data, China's aluminum billet inventory in major consumption regions fell to 154,500 mt on June 11, down 8,000 mt from last Thursday and down 5,500 mt from Monday, with the destocking pace further slowing. From the perspective of warehouse withdrawals, aluminum billet withdrawals recorded 51,700 mt during June 1–8, down 4,100 mt WoW.

[SMM Analysis] Stainless Steel Off-Season Demand Combined with Macro Turbulence: Prices and Costs Pulled Back in Tandem, Narrowing Steel Mill Profits This week, stainless steel prices and production costs pulled back in tandem, slightly narrowing steel mill profit margins. Using 304 cold-rolled coil as the calculation benchmark, the profit margin based on current raw material costs was 2.23%, while the profit margin based on inventory raw material costs was 1.31%. On the nickel-based raw material cost side, high-grade NPI prices continued to pull back this week. Dragged down by the decline in SHFE nickel prices during the week, coupled with the heightened cost advantage of stainless steel scrap, expected production schedules at stainless steel mills dropped, reinforcing a strong desire to bargain down prices. High-priced transactions encountered resistance, keeping high-grade NPI prices in the doldrums. As of this Friday, mainstream 10%-12% grade high-grade NPI rose by 0.5 yuan per nickel unit, closing at 1,144 yuan per nickel unit. In the stainless steel scrap market, prices remained largely stable this week. The pullback in high-grade NPI prices caused the raw material side to weaken, making it difficult to drive prices upward. However, a rebound in stainless steel futures and limited declines in finished product spot prices provided a counterbalancing force that supported prices. The industry has now entered the off-season for consumption, with steel mill production schedules and profits both sliding. Combined with rising uncertainty in the macro environment, bearish risks are gradually accumulating, and prices are expected to face downward pressure going forward. As of this Friday, mainstream 304 off-cuts in the Shanghai region gained 100 yuan/mt, with the latest quotation at approximately 10,450 yuan/mt. On the chrome-based raw material cost side, high-carbon ferrochrome prices edged down this week. Chrome ore port inventories remained at historically high levels, and prices gradually pulled back, weakening the cost support for high-carbon ferrochrome. Additionally, ferrochrome producers still had profit margins at present, and production declines……

[Domestic Zinc Concentrate TCs Reach Negative Territory, TCs Continue to Decline]: On a weekly basis, the average SMM Zn50 domestic weekly TCs fell by 100 yuan/mt Zn WoW to -50 yuan/mt Zn, and the SMM imported zinc concentrate index dropped by $0.45/dmt WoW to -$71.20/dmt..

[SMM Chrome Daily: Prices Move Sideways, Transactions Remain Sluggish] June 12, 2026 – The ferrochrome and chrome ore markets fluctuate slightly...

【East China Refined Zinc Market】According to SMM, as the week drew to a close, intraday zinc futures rebounded from lows in the morning. Having built up ample raw material inventories via earlier bulk purchases, downstream enterprises submitted fewer inquiries and purchase orders on the day, leading to a month-on-month slowdown in overall market transactions.

This week (June 5–June 11), the SMM copper wire and cable enterprise operating rate recorded 71.03%, up 2.65 percentage points WoW and down 5.28 percentage points YoY. Falling copper prices this week effectively boosted end-user purchase willingness, and enterprises saw an increase in new orders, driving the operating rate to rebound. From the end-use demand perspective, orders in the power sector performed well, offshore wind power orders remained stable, and construction sector orders also showed marginal recovery. On the inventory side, some enterprises remained optimistic about the future copper price outlook and took the opportunity to restock during the price pullback, with raw material inventories rising 3.73% WoW; finished product inventories fell 2.95% WoW, mainly because the initial copper price decline spurred end-user cargo pick-up enthusiasm. Looking ahead to next week, as copper prices continued to decline toward the end of this week, end-user wait-and-see sentiment intensified, waiting for lower prices to enter the market, and order growth lacked sustainability. However, with new orders gradually entering the production schedule, overall operations will remain stable. SMM expects that next week (June 12–June 18) the copper wire and cable operating rate will continue to increase by 0.3 percentage points WoW to 71.33%, down 1.93 percentage points YoY.

[SMM Brass Billet Flash] Looking ahead to next week (6.12-6.18), most brass billet enterprises will continue production based on prior orders. Currently, the industry fundamentals—tight raw material supply, elevated costs, and sluggish end-use demand—have yet to show meaningful improvement. SMM expects the industry operating rate to pull back slightly by 0.32 percentage points WoW to 52.27% next week, with operating rates remaining under pressure in the near term.

During the week (6.05-6.11), the operating rate of the brass billet industry in China was 52.59%, up 0.74 percentage points WoW and up 0.58 percentage points YoY. Copper prices pulled back sharply this week, stimulating a moderate release of downstream rigid demand orders. Producers' enthusiasm for starting production increased, leading the industry operating rate to edge up. The decline in copper prices prompted enterprises to proactively stockpile at low prices. However, secondary brass supply remained tight and prices stayed high, constraining enterprises’ restocking room. As a result, raw material inventory only edged up to 3.57 days. On the demand side, the traditional off-season impact continued. Rigid demand from end-use industries such as home appliances, sanitary ware, and hardware was insufficient. Downstream cargo pick-up pace was slow, and overall market trading sentiment was mediocre. Currently, the industry's finished product inventory days remained high at 5.31 days, and destocking was under pressure. Most brass billet enterprises still needed to destock. Looking ahead to next week (6.12-6.18), most copper billet enterprises are expected to continue production based on previous orders. At present, with tight raw material supply, high costs, and weak end-use demand, the industry fundamentals have not improved significantly. SMM expects the industry operating rate next week to pull back slightly by 0.32 percentage points WoW to 52.27%, and up 1.0 percentage points YoY. The industry operating rate will remain under pressure in the short term.

SMM Morning Meeting Summary: Overnight, LME copper opened at $13,424/mt, swung wildly in early trading and touched a low of $13,398/mt, then the price center fluctuated upward, and near the close it rose to a high of $13,612.5/mt before finally closing at $13,575/mt, up 0.94%. Trading volume reached 21,100 lots, and open interest stood at 265,000 lots, a decrease of 2,125 lots from the previous trading day, indicating bears reduced positions. Overnight, the most-traded SHFE copper 2607 contract opened at 103,280 yuan/mt, dipped to 103,010 yuan/mt right at the open, then fluctuated upward and touched a high of 103,850 yuan/mt near the close, finally settling at 103,540 yuan/mt, up 0.13%. Trading volume reached 30,100 lots, and open interest amounted to 152,400 lots, a decrease of 8 lots from the previous trading day, indicating bears reduced positions.