The General Administration of Customs announced on the 9th that in the first five months of this year, China's total import and export value of goods trade reached 17.94 trillion yuan, up 2.5% YoY, continuing the growth trend. In May, import and export volume reached 3.81 trillion yuan, up 2.7%. In the same month, China's exports amounted to 2.28 trillion yuan, up 6.3%. Among them, exports to ASEAN, the EU, Africa, and the five Central Asian countries increased by 16.9%, 13.7%, 35.3%, and 8.8%, respectively.

[Several Incremental Policies to Stabilize the Economy Are Expected to Be Introduced Successively in the Near Future] Several incremental policies to stabilize the economy are expected to be introduced successively in the near future, covering areas such as the "program of large-scale equipment upgrades and consumer goods trade-ins," the "implementation of major national strategies and the development of security capabilities in key areas," and stabilizing foreign trade. Experts have stated that the early introduction of incremental policies will help stabilize expectations and achieve early results. Since the beginning of this year, the "program of large-scale equipment upgrades and consumer goods trade-ins" has been expanded and intensified, becoming an important engine for expanding domestic demand. The latest data shows that subsidies for purchasing new digital products such as mobile phones have driven sales exceeding 140 billion yuan. Retail sales of home appliances have maintained double-digit growth for eight consecutive months, and investment in the purchase of equipment, tools, and instruments increased by 18.2% YoY in the first four months of this year.

★Macro★ 01 ★★★ LPR for loans over 5 years drops by 10 basis points; 1 million yuan mortgage over 30 years reduces by 20,000 yuan The latest Loan Prime Rate (LPR) was released today, with the five-year LPR lowered to 3.5% from 3.6%. For a commercial loan of 1 million yuan with a 30-year term and equal principal and interest repayments, the 10 basis point drop in LPR will reduce the monthly payment by 56 yuan, accumulating to a total reduction of 20,000 yuan over 30 years. 02 ★★ NDRC: Most policies to stabilize employment and economy will be implemented by the end of June The National Development and Reform Commission (NDRC) held a May press conference. At the conference, Li Chao, Deputy Director of the Policy Research Office of the NDRC and spokesperson for the Commission, stated that on the basis of accelerating the implementation of existing policies, the NDRC has collaborated with relevant departments to expedite the introduction of several measures to stabilize employment, stabilize the economy, and promote high-quality development. Currently, relevant departments are urgently implementing these measures, with most policy initiatives planned to be in place by the end of June. Meanwhile, the NDRC will continue to strengthen policy pre-research and reserves on a regular and open-ended basis, continuously improving the policy toolkit for stabilizing employment and the economy to ensure timely implementation when needed. 03 ★★ NDRC: Aims to issue the full list of "two major" construction projects for this year by the end of June The NDRC held a May press conference on May 20. Li Chao, Deputy Director of the Policy Research Office of the NDRC and spokesperson for the Commission, stated that the NDRC aims to issue the full list of "two major" construction projects for this year by the end of June, ensuring high standards in organization and implementation. 04 ★★ Zhao Chengfeng of NDRC: Central budgetary investment plan for 2025 urban renewal projects to be issued by the end of June Zhao Chengfeng, Head of the Fixed Asset Investment Department of the NDRC, stated at a press conference held by the State Council Information Office that the NDRC will continue to advance various urban renewal initiatives and increase central investment support. This year, a special central budgetary investment has been established specifically for urban renewal to support the construction of public infrastructure and public service facilities related to urban renewal. In addition to supporting projects such as the renovation of old urban residential communities and urban village renovation, the scope of support has been expanded to include projects for the transformation and upgrading of dilapidated urban housing, old neighborhoods, and old factory districts. Currently, the NDRC is organizing plan submissions and project evaluations, and plans to issue the central budgetary investment plan for 2025 urban renewal projects by the end of June this year. ★Industries and Downstream Sectors★ 01 Xi Jinping: To Advance Chinese-style Modernization, We Must Continue to Excel in Manufacturing On the afternoon of the 19th, General Secretary Xi Jinping visited Luoyang Bearing Group Co., Ltd. in Henan Province for a field trip. He toured the company's intelligent factory, learned about the performance and applications of various bearing products, inspected the intelligent production lines, and had a cordial conversation with the company's employees. Xi Jinping said that we have adhered to developing the real economy, transitioning from relying on imports for matches, soap, and iron in the past to becoming the world's largest manufacturing country with the most comprehensive industrial categories. This path has been the right one. We must continue to excel in manufacturing, persist in self-reliance and self-improvement, master key core technologies, promote the integration of industry, academia, and research, and cultivate a large number of high-quality talents. Only in this way can Chinese-style modernization be truly achieved. 02 In April 2025, major excavator manufacturers sold 22,142 excavators, up 17.6% YoY According to statistics from the China Construction Machinery Industry Association, in April 2025, major excavator manufacturers sold 22,142 excavators, up 17.6% YoY. Of these, domestic sales reached 12,547 units, up 16.4% YoY, and exports amounted to 9,595 units, up 19.3% YoY. From January to April 2025, a total of 83,514 excavators were sold, up 21.4% YoY. Domestic sales reached 49,109 units, up 31.9% YoY, and exports amounted to 34,405 units, up 9.02% YoY. In April 2025, 25 electric excavators were sold (1 unit below 6 mt, 2 units in the 10-18.5 mt range, 18 units in the 18.5-28.5 mt range, 1 unit in the 28.5-40 mt range, and 3 units of 40 mt and above). 03 China's automobile production reached 2.604 million units in April According to data from the National Bureau of Statistics (NBS), by industry, in April, 36 out of 41 major industrial categories maintained year-on-year growth in added value. Among them, the automobile manufacturing industry grew by 9.2%. By product, in April, 341 out of 623 industrial products above designated size saw year-on-year growth in production. Among them, automobile production reached 2.604 million units, up 8.5% YoY, including 1.228 million NEVs, up 38.9% YoY. From January to April, automobile production reached 10.116 million units, up 11.1% YoY, including 4.395 million NEVs, up 43.7% YoY. 04 China's production figures for four major home appliances in April released According to data from the National Bureau of Statistics (NBS), in April 2025, China's air conditioner production reached 30.833 million units, up 1.6% YoY. The cumulative production from January to April reached 105.314 million units, up 7.2% YoY. In April, the national production of refrigerators reached 8.179 million units, down 10.7% YoY. The cumulative production from January to April was 32.204 million units, down 0.7% YoY. In April, the national production of washing machines reached 9.651 million units, up 2.6% YoY. The cumulative production from January to April was 39.188 million units, up 10.9% YoY. In April, the national production of color TVs reached 16.074 million units, down 9.8% YoY. The cumulative production from January to April was 59.666 million units, down 3.9% YoY. 05 [SMM Shenyang HRC Inventory] This week, the HRC inventory in Shenyang was 99,000 mt. This week, the HRC inventory in Shenyang was 99,000 mt, down 5,300 mt or 5.08% WoW, and down 70,000 mt or 41.42% YoY. 06 [SMM Zhangjiagang HRC Inventory] This week, the inventory in Zhangjiagang continued to decline steadily. This week, the HRC inventory in Zhangjiagang was 349,000 mt, down 22,000 mt or 5.93% WoW. It increased by 10.44% on a solar calendar YoY basis and by 12.58% on a lunar calendar YoY basis. 07 [SMM HRC Arrivals] Arrivals in mainstream markets decreased significantly. SMM Steel News on May 20: According to SMM statistics, the estimated total resource shipments in mainstream markets this week were 207,500 mt, a decrease of 37,000 mt compared to the shipment level last week. 08 [SMM Electric Furnace Operating Rate] Two electric furnace plants resumed production as scheduled, with the national operating rate rising to 38.46%. According to the SMM survey, as of May 20, the operating rate of 50 electric furnace steel mills mainly producing construction materials nationwide was 38.46%, up 1.3% from the previous period. The capacity utilisation rate was 39.72%, up 1.08% WoW. The daily average production of construction materials was 88,400 mt, an increase of 2,400 mt WoW. ★Other Hot Topics★ ⭕ [Six Major State-Owned Banks Collectively Lower Deposit Interest Rates Today, All One-Year Fixed Deposit Rates Reduced by 15 Basis Points] Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Postal Savings Bank of China, and Bank of Communications all announced today that they have lowered their deposit interest rates, with the reductions being consistent across the board. The specifics are as follows: ①Bank of China lowered its RMB deposit interest rates on May 20. The demand deposit interest rate was lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with terms of three months, six months, one year, and two years were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for fixed deposits with terms of three years and five years were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for time deposits with lump-sum deposit and withdrawal in installments, lump-sum deposit and lump-sum withdrawal in installments, and principal deposit with interest withdrawal were all lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%. ② On May 20, the Agricultural Bank of China reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%. ③ On May 20, the Industrial and Commercial Bank of China reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%. ④ On May 20, the China Construction Bank reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%. ⑤ On May 20, the Postal Savings Bank of China reduced the RMB deposit interest rates for multiple terms, with the demand deposit rate lowered to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, three-year, and five-year terms were all lowered to 0.65%, 0.86%, 0.98%, 1.25%, and 1.30%, respectively. ⑥ The Bank of Communications reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%. ⭕ [Thailand: Removal of Incentives for the Steel Manufacturing Industry] Nari Tesdirasudi, Secretary General of the Thailand Board of Investment (BOI), stated to the media on the 19th that the BOI has introduced four new measures aimed at enhancing the competitiveness of small and medium-sized enterprises (SMEs) in Thailand, mitigating risks arising from US trade policies, and integrating Thai enterprises into the global supply chain. ⭕ [Commencement of the 3-Million-Ton Short-Process Project by Yonggang Steel in Kazakhstan] Recently, the groundbreaking ceremony for the 3-million-ton short-process integrated steel mill project of the Yonggang Steel Group in Kazakhstan, which was overall designed by Shougang Engineering, was held in the Zhebekjoly Special Economic Zone, Jambyl Province, Kazakhstan. ⭕ [Australia Initiates Second Sunset Review Anti-Dumping Investigation on Wire Rods from China] On May 19, the Australian Anti-Dumping Commission issued Notice No. 2025/040, announcing the initiation of a second sunset review anti-dumping investigation on wire rods imported from China, in response to an application submitted by InfraBuild (Newcastle) Pty Ltd, an Australian domestic enterprise. The dumping investigation period for this case spans from April 1, 2024, to March 31, 2025, while the injury investigation period commenced on April 1, 2020. ⭕[South Africa Issues Final Safeguard Measure Determination on Imported Flat-Rolled Products] On May 16, 2025, the WTO issued a notification stating that the South African International Trade Administration Commission (ITAC), acting on behalf of the Southern African Customs Union (SACU), which includes Namibia, South Africa, Lesotho, Swaziland, and Botswana, has issued a final determination in the safeguard measure case concerning certain flat-rolled products of iron, non-alloy steel, or other alloy steel. The decision is to impose safeguard duties on the products in question at rates of 13% in the first year, 11% in the second year, and 9% in the third year, for a duration of three years. The South African tariff codes for the products in question are 7208.10, 7208.25, 7208.26, 7208.27, 7208.36, 7208.37, 7208.38, 7208.39, 7208.4, 7208.51, 7208.52, 7208.53, 7208.54, 7208.9, 7211.14, 7225.3, 7225.4, 7225.99, and 7226.99. The safeguard measures in this case do not apply to grain-oriented electrical silicon steel.

SMM May 20 Report: Metal Market: As of the daytime close, among domestic market base metals, only SHFE tin saw an increase, rising by 0.29%. SHFE nickel led the declines with a drop of 0.83%, while the declines in other metals fluctuated slightly. The main alumina contract rose by 1.42%. In addition, the main lithium carbonate contract fell by 0.88%, the main polysilicon contract dropped by 0.99%, and the main silicon metal contract declined by 2.53%. The main European container shipping contract fell by 2.8%. In the ferrous metals series, only iron ore saw an increase, rising by 0.28%. Stainless steel fell by 1%, and rebar declined by 0.59%. In the coking coal and coke sector, coking coal fell by 1.47%, and coke dropped by 1.71%. In the overseas market, as of 15:07, only LME lead and LME tin rose together, with LME lead up by 0.43% and LME tin up by 0.12%. LME copper fell by 0.5%, and LME aluminum dropped by 0.53%. The declines in other metals fluctuated slightly. In the precious metals sector, as of 15:07, COMEX gold fell by 0.67%, and COMEX silver also declined by 0.67%. Domestically, SHFE gold rose by 0.48%, and SHFE silver fell by 0.21%. Market conditions as of 15:07 today 》Click to view SMM market dashboard Macro Front Domestic Aspect: [Addressing cut-throat competition, policies to stabilize the economy will be implemented before the end of June! A comprehensive guide to the NDRC press conference] The National Development and Reform Commission (NDRC) held its May press conference at 10 a.m. today. Li Chao, the NDRC spokesperson, stated that on top of accelerating the implementation of existing policies, the NDRC, in collaboration with relevant departments, has expedited the introduction of several measures to stabilize employment, stabilize the economy, and promote high-quality development. Relevant departments are currently working diligently to implement these measures, with most policy initiatives planned to be in place before the end of June. Meanwhile, the NDRC will continue to strengthen policy pre-research and reserves on a regular and open-ended basis, continuously improving the policy toolkit for stabilizing employment and the economy to ensure timely implementation when needed. Li Chao mentioned that the NDRC aims to finalize and issue the entire list of "implementation of major national strategies and the development of security capabilities in key areas" construction projects for this year by the end of June, and to implement them to a high standard. Li Chao stated that addressing cut-throat competition is a matter of great concern to all. Currently, China's economy is in a period of replacing old growth drivers with new ones, with new industries, business forms, and models continuously emerging. Traditional industries are accelerating their transformation and upgrading, during which some sectors have encountered structural issues, breaching the boundaries and bottom lines of market competition, distorting market mechanisms, and disrupting fair competition order, necessitating rectification. 》Click for details [Five departments jointly voice their stance on the continuous promotion of urban renewal initiatives] ① Ministry of Housing and Urban-Rural Development: China is currently entering a crucial period for urban renewal; ② NDRC: The 2025 special central budget investment plan for urban renewal will be issued before the end of June; ③ Ministry of Finance: Encouraging policy banks to provide support for eligible urban renewal projects; ④ Ministry of Natural Resources: Actively supporting localities in formulating special urban renewal plans; ⑤ National Financial Regulatory Administration: Will study and introduce specialized loan management regulations for urban renewal projects. 》Click to view details 》First cut this year! China's 1-year and 5-year LPR both lowered by 10 basis points in May ► On May 20, the central parity rate of the RMB exchange rate in the inter-bank foreign exchange market was set at 7.1931 RMB per US dollar. US dollar updates: As of 15:07, the US dollar index fell by 0.17%, closing at 100.19. On May 19 (US Eastern Time), Raphael Bostic, President of the Federal Reserve Bank of Atlanta, expressed his expectations for future price increases in an interview, believing that inflation is moving in a concerning direction. Therefore, he favors only one interest rate cut this year. Federal Reserve Vice Chair Philip Jefferson also stated that, given the current level of uncertainty, it is appropriate to wait and observe how policies unfold. William Dudley, the third-ranking official at the Federal Reserve and President of the Federal Reserve Bank of New York, warned that tariff policies could drive up both inflation and unemployment, and that the outlook may not become clearer until after June or July. The market currently expects the Federal Reserve's first interest rate cut this year to begin in October. Macro updates: Today's data includes China's annual growth rate of total electricity consumption in April (monthly), Australia's cash rate in May, Canada's unadjusted annual CPI growth rate in April, Canada's central bank's core monthly CPI growth rate in April, and the preliminary consumer confidence index for the Eurozone in May. Additionally, notable events include the Reserve Bank of Australia's announcement of its interest rate decision, a press conference on monetary policy by RBA Governor Michele Bullock, and the G7 Finance Ministers and Central Bank Governors Meeting, which will run until May 22. Crude oil updates: As of 15:07, oil prices in both markets showed mixed performance, with US crude oil rising by 0.03% and Brent crude oil falling by 0.02%. Analysts stated that Saudi Arabia is expected to burn more crude oil for power generation this summer, as it increases crude oil production after OPEC+ relaxes supply controls and as fuel oil becomes more expensive. By burning more crude oil, Saudi Arabia may alleviate some concerns about global supply surpluses, following OPEC's agreement (which includes allies such as the Organization of the Petroleum Exporting Countries and Russia) to increase production by nearly 1 million barrels per day in April, May, and June. Despite analysts lowering their oil price forecasts for this year after OPEC+'s decision to accelerate production increases sparked concerns about increased supply, refiners' profits from producing high-sulfur fuel oil from Dubai crude oil reached a record high of $4.45 per barrel. OPEC data shows that Saudi Arabia's oil production quota for June is 9.367 million barrels per day, up from 9.034 million barrels per day in April. (Comprehensive report from Wenhua) SMM Daily Review ► The tug-of-war between sellers and buyers continues, with spot prices remaining stable for now [SMM EMM Daily Review] ► Silver prices are in the doldrums, with downstream consumption weakening and transactions being negotiated [SMM Daily Review]

The National Development and Reform Commission (NDRC) held a press conference at 10 a.m. today to discuss developments in May. NDRC: Most policies to stabilize employment and the economy will be implemented by the end of June At the conference, Li Chao, spokesperson for the NDRC, stated that on the basis of accelerating the implementation of existing policies, the NDRC, in collaboration with relevant departments, has expedited the introduction of a series of measures to stabilize employment, stabilize the economy, and promote high-quality development. Relevant departments are currently working diligently to implement these measures, with most policy initiatives scheduled to be in place by the end of June. Meanwhile, the NDRC will continue to strengthen policy pre-research and reserves on a regular and open-ended basis, continuously improving the policy toolkit for stabilizing employment and the economy to ensure timely implementation when needed. Systematic planning of 53 supporting measures across 7 areas to facilitate the effective implementation of the Private Economy Promotion Law Li Chao stated that the Private Economy Promotion Law officially came into effect today, marking a significant milestone in the construction of the socialist market economy and a landmark event in the development history of China's private economy. The NDRC will promote the implementation of the law in three aspects: first, comprehensively carrying out legal publicity activities; second, accelerating the effective implementation of supporting policies and measures; and third, collaborating with relevant departments and localities to effectively address the concerns and issues of private enterprises. In terms of formulating supporting policies, the NDRC, in collaboration with relevant departments, has systematically planned 53 policy initiatives across 7 areas. Relevant policy initiatives have been gradually introduced and implemented. For example, opinions on improving the social credit system, actions to clean up and rectify market access barriers, etc. Subsequently, the NDRC will also establish detailed ledgers to promote the introduction and implementation of relevant policy initiatives one by one. In addressing the concerns of private enterprises, it is necessary to make good use of relevant policies such as new local government special bonds, strengthen punishment for dishonesty, and accelerate the progress of clearing overdue payments to private enterprises. Strive to issue the complete list of "two major" construction projects for this year by the end of June Li Chao stated that the NDRC aims to issue the complete list of "two major" construction projects for this year by the end of June, ensuring high standards in organization and implementation. High-end manufacturing, digital economy, etc., will be fully reflected in the new edition of the Catalogue of Industries Encouraged for Foreign Investment Li Chao stated that the work of revising and expanding the Catalogue of Industries Encouraged for Foreign Investment has completed the public consultation phase and is currently being revised and improved based on feedback from all sectors of society. Areas of concern such as high-end manufacturing, the digital economy, etc., will be fully reflected in the new edition of the Catalogue of Industries Encouraged for Foreign Investment. Cut-throat competition distorts market mechanisms and disrupts fair competition order, necessitating rectification Li Chao stated that rectifying cut-throat competition is a matter of great concern to all. Currently, China's economy is in a period of replacing old growth drivers with new ones, with new industries, new business forms, and new models continuously emerging. Currently, traditional industries are accelerating their transformation and upgrading. During this process, some industries have encountered structural issues, breaching the boundaries and bottom lines of market competition, distorting market mechanisms, and disrupting the order of fair competition, which must be addressed. China will always welcome and remain a fertile ground for foreign-funded enterprises to invest and operate. We call on relevant countries to return to the right path of multilateralism and free trade as soon as possible. Li Chao stated that, influenced by measures such as the US's indiscriminate imposition of tariffs, the uncertainty of global cross-border investment has risen significantly, affecting the investment decisions of many multinational enterprises. I would like to emphasize that a stable, transparent, and predictable macro policy environment is an important prerequisite for enterprises to enhance their investment and operational efficiency. Over the past 40 years, China has unwaveringly advanced reform and opening up, remaining an ideal, safe, and promising investment destination for foreign-funded enterprises. Currently, some countries are pursuing unilateralist and protectionist measures, forcing enterprises to choose sides and make choices that are inconsistent with economic laws, causing great disruptions to the normal operations of multinational enterprises. China will always welcome and remain a fertile ground for foreign-funded enterprises to invest and operate. We also call on relevant countries to return to the right path of multilateralism and free trade as soon as possible, jointly injecting certainty into the development of the global economy. We will crack down hard on "black flight" activities, such as pilots flying without licenses, low-altitude aircraft not obtaining airworthiness certificates, and flight activities not being approved. Li Chao stated that the potential risks and hazards of low-altitude flights cannot be overlooked, and safety is the primary prerequisite for the development of the low-altitude economy. The National Development and Reform Commission (NDRC) will work with relevant departments to expand the application scenarios of the low-altitude economy in an orderly and classified manner, following the principles of "cargo first, then passengers; isolation first, then integration; suburbs first, then urban areas," while strictly controlling risks and ensuring safety. We will steadily promote the development of low-altitude consumption, such as low-altitude tourism, aviation sports, and consumer drones. We will crack down hard on "black flight" activities, such as pilots flying without licenses, low-altitude aircraft not obtaining airworthiness certificates, and flight activities not being approved, guiding and promoting the rational layout and orderly expansion of the low-altitude industry. We will expedite the introduction of policies to strengthen the implementation of loan interest subsidies for equipment renewal. Li Chao stated that the NDRC will work with the Ministry of Finance to accelerate the allocation of funds for the trade-in of consumer goods, promptly complete the settlement of funds for the trade-in of consumer goods in 2024, and allocate subsequent funding quotas. At the same time, we will improve the efficiency of fund utilization, establish a mechanism for the direct and rapid allocation of ultra-long-term special treasury bond funds, expedite the introduction of policies to strengthen the implementation of loan interest subsidies for equipment renewal, and reduce the financing costs for various business entities to update their equipment. We will also urge relevant departments to further simplify the application process for subsidies, clarify the time limits for review and disbursement, implement the fund operation system, enhance the consumer experience, and alleviate the capital pressure on business entities. Conduct in-depth research on incremental and reserve policies in the "two new" areas, and launch them after timely approval in accordance with procedures. Li Chao stated that the National Development and Reform Commission (NDRC) will strengthen policy reserves for the "two new" initiatives (trade-in of consumer goods and large-scale equipment upgrades), promptly track and evaluate the progress of various tasks, conduct in-depth research on incremental and reserve policies in the "two new" areas, and launch them after timely approval in accordance with procedures. The scale of the AI terminal industry is expected to experience a "wave-like" growth. At a press conference, Li Chao said that in recent years, the NDRC, in collaboration with relevant departments, has jointly promoted the "AI+" initiative, continuously improving the policy system, increasing support, and fully advancing the empowerment of various industries through AI. A favorable atmosphere for jointly promoting "AI+" has initially taken shape across society. Firstly, the process of large-scale application in key industries has significantly accelerated. Secondly, the cost-reducing and efficiency-enhancing effects of "AI+" are gradually becoming apparent. Thirdly, characteristic demonstration applications are being explored in line with local conditions. We collaborate with industry departments to provide classified and industry-specific guidance, identifying the driving forces of "AI+" in line with local conditions. Fourthly, new AI terminal products and scenarios are emerging in competition. Lightweight deployment of domestic large models on smartphones has expanded their functions, and intelligent wearable products such as AI glasses continue to emerge. The scale of the AI terminal industry is expected to experience a "wave-like" growth.

SMM, May 19: Metal Market: As of the midday close, domestic base metals generally declined, with SHFE tin rising by 0.5%, SHFE zinc slightly falling, SHFE lead dropping by 0.5%, and both SHFE aluminum and SHFE nickel falling by 0.4%. SHFE copper rose by 0.19%. In addition, alumina continued its upward trend from the previous trading day, rising by 1.55%. Lithium carbonate fell by 1.3%, silicon metal fell by 2.03%, and polysilicon fell by 1.08%. The ferrous metals series mostly fell, with iron ore rising by 0.21% and stainless steel falling by 0.85%. Both rebar and HRC dropped slightly. In terms of coking coal and coke: coking coal fell by 0.76% and coke fell by 0.87%. In the overseas metal market, as of 11:52 a.m., LME metals generally declined. LME copper, LME aluminum, LME zinc, and LME nickel all fell within 0.5%, while LME tin rose by 0.16% and LME lead rose by 0.61%. In precious metals, as of 11:52 a.m., COMEX gold fell by 0.67% and COMEX silver fell by 0.56%. Domestically, SHFE gold rose by 0.52% and SHFE silver slightly increased. As of the midday close, the most-traded contract for the European container shipping index fell by 0.95%, closing at 2306.0 points. As of 11:52 a.m. on May 19, the midday futures market movements for some contracts were as follows: 》SMM Metal Spot Prices on May 19 Spot and Fundamentals Copper: Today, spot #1 copper cathode in Guangdong was quoted at a premium of 150 yuan/mt to 230 yuan/mt against the front-month contract, with an average premium of 190 yuan/mt, down 80 yuan/mt from the previous trading day. SX-EW copper was quoted at a premium of 90 yuan/mt to 110 yuan/mt, with an average premium of 100 yuan/mt, down 70 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,180 yuan/mt, up 200 yuan/mt from the previous trading day, and the average price of SX-EW copper was 78,090 yuan/mt, up 210 yuan/mt from the previous trading day. Spot Market: Guangdong's inventory ended its three-day consecutive rise and began to decline again, mainly due to increased outflows from warehouses... 》Click for details Macro Front Domestic: [Addressing cut-throat competition, policies to stabilize the economy to be implemented before the end of June! A comprehensive guide to the NDRC's press conference] The National Development and Reform Commission (NDRC) held its May press conference at 10 a.m. today. Li Chao, the NDRC's spokesperson, stated that on top of accelerating the implementation of existing policies, the NDRC, in collaboration with relevant departments, has expedited the introduction of several measures to stabilize employment, stabilize the economy, and promote high-quality development. Relevant departments are currently working diligently to implement these measures, with most policy initiatives planned to be in place before the end of June. Meanwhile, the NDRC will continue to strengthen policy pre-research and reserves on a regular and open-ended basis, continuously improving the policy toolbox for stabilizing employment and the economy to ensure timely implementation when needed. Li Chao stated that the National Development and Reform Commission (NDRC) aims to finalize and issue the list of all "implementation of major national strategies and the development of security capabilities in key areas" construction projects for this year by the end of June, ensuring high standards in organization and implementation. Li Chao noted that addressing cut-throat competition is a matter of great concern to all. Currently, China's economy is in a period of replacing old growth drivers with new ones, with new industries, business formats, and models continuously emerging. Traditional industries are accelerating their transformation and upgrading. During this process, some industries have encountered structural issues, breaching the boundaries and bottom lines of market competition, distorting market mechanisms, and disrupting the order of fair competition, necessitating immediate rectification. [Ministry of Housing and Urban-Rural Development: Will Accelerate the Promotion of New-Type Urban Infrastructure Construction] Qin Haixiang, Deputy Minister of the Ministry of Housing and Urban-Rural Development, stated at a press conference that the Ministry will accelerate the promotion of new-type urban infrastructure construction in the next step. By utilizing information and digital technologies, it will enhance the intelligent level of infrastructure, expedite the improvement of long-term management systems for infrastructure construction, operation, and maintenance, explore new models for investment and financing in urban construction and operation, and continuously enhance the level of urban infrastructure construction, management, and services. [Liao Yuanyuan from the National Financial Regulatory Administration: Will Study and Introduce Specialized Loan Management Measures for Urban Renewal Projects] Caijing reported on May 20 that Liao Yuanyuan, Director of the Statistics and Risk Monitoring Department of the National Financial Regulatory Administration, stated at a press conference held by the State Council Information Office that the Administration will guide financial institutions to deeply understand the inherent logic of urban renewal initiatives, accurately grasp new characteristics and requirements, and actively provide a diverse range of tailored financial products and services for urban renewal initiatives in accordance with the principles of legal compliance, risk controllability, and commercial sustainability, to meet the financial needs of different entities, projects, stages, and links. Liao Yuanyuan indicated that the Administration will guide financial institutions to closely study and formulate supporting institutional processes, business systems, and performance evaluation systems in line with the specific requirements of urban renewal initiatives. It will fully leverage the unique advantages of different types of financial institutions, allocate financial resources effectively, and ensure seamless integration with fiscal funds and social capital. The Administration will study and introduce specialized loan management measures for urban renewal projects, clarifying loan conditions and standards to meet the financial needs of urban renewal initiatives and enhance the timeliness and effectiveness of financial services. First Drop This Year! China's 1-Year and 5-Year LPR Both Cut by 10 Basis Points in May [PBOC Injects Net 177 Billion Yuan into Open Market] The People's Bank of China (PBOC) conducted 357 billion yuan in 7-day reverse repo operations today, with an operating interest rate of 1.40%, unchanged from the previous rate. With 180 billion yuan of 7-day reverse repo operations maturing today, a net injection of 177 billion yuan was achieved. ► On May 19, the central parity rate of the RMB exchange rate in the inter-bank foreign exchange market was set at 7.1916 yuan per US dollar. US dollar: As of 11:52, the US dollar index fell by 0.01% to 100.35. Several US Fed officials delivered speeches, expressing caution about the impact of the US government's credit rating downgrade and market instability. Currently, they are still grappling with a highly uncertain economic environment. Heavyweight officials, including US Fed Vice Chair Jefferson and New York Fed President Williams, hinted that due to the unclear economic outlook in the US, interest rate policymakers may not be ready to cut interest rates before September. Williams, the "third-in-command" at the US Fed, stated on Monday, "We won't figure out what's happening in June or July. This will be a process of collecting data, gaining a clearer understanding of the situation, and observing how events unfold." Atlanta Fed President Bostic also expressed similar views on Monday, hinting at a reluctance to adjust interest rates for some time. Bostic reiterated that, given the uncertainties triggered by tariffs, he believes the central bank will cut interest rates once this year. On the 16th, international credit rating agency Moody's announced that it had downgraded the US sovereign credit rating by one notch from Aaa to Aa1. Moody's pointed out that this downgrade reflects the continuous rise in the US government's debt-to-interest payment ratio over the past decade, which is now significantly higher than that of other sovereign nations of the same rating. Several US Fed officials are scheduled to deliver speeches later today, potentially offering further insights into the economic and central bank policy paths. The market currently expects the US Fed's first interest rate cut this year to begin in October. Other currencies: The reset of the EU-UK trade agreement on Monday reshapes a crucial aspect of European economic, strategic, and defense relations, which should bring economic benefits to both sides. Lars Klingbeil, Germany's new finance minister, is seeking to cut expenses before a surge in large-scale spending, which includes the establishment of a 500 billion euro infrastructure fund and the exemption of defense spending from debt rules. (Huitong Finance) Macro: Today's data includes China's April year-on-year growth rate of total electricity consumption, Australia's May cash rate, Canada's April unadjusted year-on-year CPI growth rate, Canada's April central bank core CPI month-on-month growth rate, and the preliminary value of the Eurozone's May consumer confidence index. In addition, it is worth noting that the Reserve Bank of Australia (RBA) will announce its interest rate decision; RBA Governor Bullock will hold a monetary policy press conference; and the G7 finance ministers and central bank governors' meeting will be held until May 22. Crude Oil Update: As of 11:52, crude oil futures rose slightly, with US oil up 0.06% and Brent oil up 0.02%. The prospect of more oil supply entering the global market has weakened, causing oil prices to fluctuate rangebound. Moody's downgraded the US sovereign rating, dampening the economic outlook of the world's largest energy consumer, the US, and hindering further increases in oil prices. Alex Hodes, an analyst at StoneX, stated that if the US and Iran reach an agreement, it could pave the way for the US to ease sanctions and allow Iran to increase its oil exports by 300,000 to 400,000 barrels per day. In the short term, tariffs, US-Iran negotiations, economic uncertainties, and the Russia-Ukraine war could all impact oil prices. (Webstock Inc.) Spot Market Overview: ► Warrants flow out, and end-users' willingness to restock is moderate. Suppliers have to lower prices to sell. [SMM South China Spot Copper] ► [SMM Analysis] Tin ore imports remained low in April, and supply pressure persists in the domestic smelting sector. ► [SMM Nickel Midday Review] Nickel prices dropped slightly on May 20. Atlanta Fed President Bostic reiterated his preference for only one interest rate cut this year. Midday reviews of other metal spot prices will be updated later. Please refresh to view.

On the morning of April 28, at the NEA's Q1 press conference, Xu Jilin, Deputy Director of the Department of Energy Conservation, Science, Technology and Equipment at the NEA, disclosed the work plan for the development of the hydrogen energy industry.

[SMM Weekly Aluminum Price Review: Macro Sentiment Improves, Coupled with Pre-Holiday Destocking, but Imbalance Between Bulls and Bears Still Exists]

[SMM Morning Zinc Meeting Summary: US Dollar Weakens, LME Zinc Rises Slightly]: Overnight, LME zinc opened at $2,649/mt. Early in the session, LME zinc quickly dropped to $2,625.5/mt. Subsequently, as bulls increased their positions, LME zinc fluctuated upward, reaching a high of $2,657.5/mt during the night session. However, the upward momentum was insufficient, and LME zinc fluctuated downward throughout the session, eventually oscillating near the daily average line towards the close. It closed up at $2,654/mt, gaining $8.5/mt, or 0.32%. Trading volume decreased to 7,562 lots, while open interest increased by 2,089 lots to 207,000 lots.

[SMM Lead Morning Meeting Summary: Lead Ingot Supply Experiences Phased Reduction, Lead Price Trend May Maintain Fluctuating Trend] Recently, the imbalance in scrap battery supply has been prominent. Last week, due to issues such as insufficient scrap materials and losses, the data on production reductions and suspensions by secondary lead enterprises increased, resulting in a phased reduction in lead ingot supply. The inventory at social warehouses surrounding lead consumption hubs continued to decline.