(Kitco News) - Central bank gold demand continues to play an important role in the marketplace as prices have managed to hold critical long-term support, and China remains a dominant player in the sector.

Members of the BRICS Plus trade bloc now hold over 6 000 t of gold, representing about 17.4% of total global central bank reserves, up from 11.2% in 2019, financial services group EBC Financial Group (EBC) reveals in a market note.

Societe Generale analysts Michael Haigh, Ben Hoff and Jeremy Sellem highlight how Tether’s expanding Gold holdings have become a major force in the Gold market.

According to the World Gold Council's "Central Bank Gold Reserves Survey 2025" (CBGR), over 90% of the surveyed central banks indicated that they will continue to increase their gold reserves over the next 12 months. This proportion marks the highest since the survey's inception in 2019, representing a 17 percentage point increase from the 2024 results. The survey collected responses from 73 central banks worldwide, the highest number of participating central banks in the survey's history. The survey also found that nearly 43% of central banks plan to increase their gold reserves in the coming year. Despite gold prices repeatedly reaching new highs and global central banks having net purchased gold for 15 consecutive years, they continue to favour gold.

A survey by the World Gold Council (WGC) indicates that central banks worldwide expect the proportion of gold in their reserves to continue increasing over the next five years, while the proportion of their US dollar reserves is expected to decline. The survey on central banks' gold reserves, conducted from February 25 to May 20 this year, received responses from 73 global central banks, marking the highest number of participating central banks since the survey's inception. Among them, 76% of central banks anticipate an increase in their gold holdings within five years, up from 69% last year. Additionally, a record number of respondents (95%) believe that central banks' gold reserves will increase over the next 12 months, up from 81% last year. The survey also reveals that the Bank of England remains the most popular location for gold reserves. Fifty-nine percent of the surveyed central banks consider potential trade conflicts and tariffs relevant to their reserve management plans. Notably, the proportion of respondents from emerging markets and developing economies (69%) is higher than that from advanced economies (40%), suggesting that this data may better underscore the views of emerging economy central banks on reserves. Risk Considerations The World Gold Council points out that central banks worldwide have increased their gold reserves by over 1,000 mt each year for the past three years, adding that this represents a significant increase compared to the average annual increase of 400 to 500 mt in the previous decade. The accelerated pace of central banks' gold purchases is linked to geopolitical and economic uncertainties. The survey also shows that 73% of respondents believe that the US dollar's share in global reserves will decline mildly or significantly over the next five years. During the same period, the share of other currencies such as the euro and the yuan, as well as gold, is expected to rise. This result also corroborates recent concerns among economists and analysts about the stability of the US dollar. Due to concerns about the Trump administration's trade policies and the US debt crisis, global investors are gradually reducing their dollar holdings to mitigate potential sovereign credit risks. Risk is also a key factor driving central banks worldwide to increase their gold holdings. The survey shows that the proportion of respondents actively managing their gold reserves has risen from 37% in 2024 to 44% in 2025. While return rates remain the primary reason for increasing gold holdings, risk management has surpassed tactical trading to become the second most chosen reason.

SMM, June 3: The flip-flopping of the US tariff policy has once again sparked market concerns over global trade uncertainties; the ongoing Russia-Ukraine conflict has fueled a surge in market risk aversion; coupled with a series of factors such as the US ISM manufacturing PMI for May falling to 48.5, marking the third consecutive month below the 50 mark {{only used when specifically referring to PMI}}, have all contributed to the recent strengthening of precious metals. During the Dragon Boat Festival holiday, COMEX precious metals surged by 2.82%, with COMEX silver rising by 5.61%. This also drove the domestic precious metals market to strengthen on the first trading day after the Dragon Boat Festival. As of around 13:15 on June 3, COMEX gold fell by 0.3%, trading at $3,387.1 per ounce; COMEX silver fell by 0.96%, trading at $34.36 per ounce; SHFE gold rose by 1.62%, trading at 784.74 yuan/g; SHFE silver rose by 2.32%, trading at 8,413 yuan/kg; and silver T+D rose by 2.79%, trading at 8,408 yuan/kg. The precious metals equity sector also saw a significant surge, at one point leading the gains across all industries. As of around 13:14 on June 3, the precious metals sector rose by 3.7%. Among individual stocks, Western Gold surged by the daily limit, while Xiaocheng Technology, Chifeng Gold, Sichuan Gold, and Hunan Gold were among the top gainers. News Updates Domestic Pure Gold Jewelry Prices Return to the 1,000 Yuan Mark (Image sourced from Chow Tai Fook's official website) Following the notable rise in COMEX gold during the Dragon Boat Festival holiday, domestic pure gold jewelry prices also returned to the 1,000 yuan mark. According to Chow Tai Fook's official website, the quoted price for Chow Tai Fook's pure gold jewelry on June 3 was 1,020 yuan/g, up 22 yuan from the previous day's 998 yuan/g. Additionally, Laomiao Gold's pure gold jewelry was quoted at 1,019 yuan/g on June 3, while Chow Sang Sang's pure gold jewelry was quoted at 1,024 yuan/g. World Gold Council: Gold Should Be Considered a High-Quality Liquid Asset, Just Like 30-Year US Treasuries Although gold is classified as a Tier 1 asset under Basel III, it has not yet been recognized as a High-Quality Liquid Asset (HQLA). HQLA is a key classification that the World Gold Council (WGC) seeks to change. Analysts from the WGC, in their latest report, have recommended that the Basel Committee on Banking Supervision (BCBS) re-examine the classification of gold and recognize it as an HQLA, citing significant market volatility so far this year. The WGC pointed out that over the past six months, gold has once again demonstrated many of the key characteristics that an asset must possess to qualify as an HQLA. US Treasuries, particularly 10-year and 30-year bonds, are among the most recognized top-tier HQLAs. However, the WGC noted that in recent months, gold has been moving in tandem with these stable assets. Analysts stated: "Using intraday minute-by-minute data, we found that gold's average daily volatility was 0.027%. This is higher than the 0.016% volatility of 10-year U.S. Treasury bonds (OTR) but aligns with the 0.028% volatility of 30-year U.S. Treasuries (OTR)." ( FX678) Silver Price Surges Above 8,400 Amid Strong Market Caution 》Click to View Spot Prices of Precious Metals Boosted by the strong performance of silver futures, spot silver prices showed significant gains on June 3. On June 3, the average morning ex-works reference price for SMM1# silver was 8,425 yuan/kg, up 245 yuan/kg (3%) from the previous trading day. According to SMM, the premium/discount quotes for spot standard silver ingot warrants in Shanghai were 3-5 yuan/kg, but downstream buyers remained cautious, with minimal transactions at high premiums. Market activity was sluggish, with some standard silver ingot suppliers offering discounts of 25 yuan/kg against the SHFE silver 2508 contract. Large suppliers quoted premiums of 5-8 yuan/kg for silver ingots against TD warrants. Although precious metal prices surged after the Dragon Boat Festival, downstream demand showed no significant improvement, and market sentiment remained cautious, with only limited spot transactions for essential needs. Market Views Huilin Wang, SMM silver analyst, discussed the topic "Silver Supply-Demand Evolution and Price Outlook" at the 2025 SMM (6th) Silver Industry Chain Innovation Conference , hosted by SMM Information & Technology Co., Ltd., co-organized by Ningbo Haoshun Precious Metals Co., Ltd. and Quanda New Materials (Ningbo) Co., Ltd., and sponsored by Fujian Zijin Precious Metals Materials Co., Ltd., Huizhou Yi'an Precious Metals Co., Ltd., Jiangsu Jiangshan Pharmaceutical Co., Ltd., Zhengzhou Jinquan Mining & Metallurgy Equipment Co., Ltd., Hunan Shengyin New Materials Co., Ltd., Zhejiang Weida Precious Metal Powder Materials Co., Ltd., Guangxi Zhongma Zhonglianjin Cross-Border E-Commerce Co., Ltd., Suzhou Xinghan New Materials Technology Co., Ltd., Yongxing Zhongsheng Environmental Protection Technology Co., Ltd., IKOI S.p.A, Hunan Zhengming Environmental Protection Co., Ltd., Kunshan Hongfutai Environmental Protection Technology Co., Ltd., and Shandong Humon Smelting Co., Ltd. She noted: The aging population and rising global economic and political uncertainties have increased safe-haven demand, driving a downward trend in real interest rates; the PV and new energy sectors are experiencing rapid growth, with domestic demand stabilizing and export demand expected to rise; lower real interest rates may boost medium- and long-term allocations to silver assets—these bullish factors could support silver prices to fluctuate upward in the medium to long term. Michele Schneider, Chief Market Strategist at MarketGauge, stated that gold and silver prices have been consolidating, leading her to maintain a neutral outlook on both. However, if silver prices firmly break through the $34 per ounce level, she will seek to buy, as it is only a matter of time before it rises to $40. (Caijing) Yide Futures stated: During the holiday, overseas gold and silver prices mainly rose, with the Comex gold-silver price ratio pulling back significantly. US Treasuries, VIX, and the US dollar fell, while US stocks and crude oil closed higher. On the news front, Lorie Logan, the 2026 voting member and President of the Federal Reserve Bank of Dallas, stated that due to a stable labour market, inflation slightly above target, and an uncertain outlook, the US Fed is closely monitoring a range of data to determine what response measures may be needed. Austan Goolsbee, the 2025 voting member and President of the Federal Reserve Bank of Chicago, stated that after the uncertainties brought about by tariff policies dissipate, the US Fed can continue to cut interest rates. The second round of negotiations between Russia and Ukraine ended hastily, with significant differences remaining between the two sides regarding the conditions for ending the war. On the economic data front, the US May ISM Manufacturing PMI pulled back to 48.5, below the expected 49.5, marking a contraction for three consecutive months. The US April Core PCE Price Index annual rate was 2.52%, the lowest since the start of the disinflation process, with the monthly rate rebounding slightly to 0.12%, the second lowest level of the year. The nominal interest rate rebound exceeded the break-even inflation rate, and the slight rebound in the real interest rate increased pressure on gold. The short-end spread between US and German yields began to widen, strengthening support for the US dollar. On the funding front, funds allocated to gold and silver were increased simultaneously. As of June 3, SPDR holdings were 933.07 mt (+2.86 mt), and iShares holdings were 14,351.82 mt (+48.07 mt). Speculative funds in gold and silver flowed out simultaneously, with the former reducing holdings for six consecutive days. According to CME data released on May 30, total open interest in New York gold futures was 408,800 lots (-13,818 lots); total open interest in New York silver futures was 147,800 lots (-1,481 lots). The overnight leading indicator, the HUI Gold Bugs Index, continued to hit new highs, suggesting that overseas gold has the potential to challenge the all-time high of 3,500. Technically, New York gold and silver are showing a breakout momentum, with the former standing above $3,400 and the latter approaching the year's high. SDIC Futures believes: Precious metals rose during the holiday. Trump's trade policies have fluctuated, with additional tariffs imposed on steel and aluminum again. In terms of data, the US May ISM Manufacturing PMI recorded 48.5, below expectations and the lowest since November 2024. Under the shadow of the trade war, market prospects remain uncertain. Follow-up attention should be paid to the US Court of International Trade's ban on Trump's tariffs and the progress of negotiations between various parties, as precious metals will test the resistance at the previous highs. Industrial Futures analysis suggests: Since the end of May, uncertainties regarding US tariff policies have risen significantly, with repeated signals emerging on reciprocal tariffs, Sino-US trade negotiations, steel and aluminum tariffs, and automobiles. During the holiday, the Russia-Ukraine conflict intensified again. Although Russia and Ukraine held talks in Turkey on Monday, no signals of easing were released. Short-term risk aversion sentiment has intensified, leading to a significant increase in overseas market gold prices. Overall, reviewing the trend of gold prices in May, fluctuations in market risk aversion sentiment had a significant impact on gold prices, which were prone to repeated fluctuations due to multiple factors, with gold prices fluctuating upward! The gold-silver ratio is relatively high, and silver prices generally follow gold price fluctuations. Goldman Sachs suggests that gold and oil can serve as tools to hedge against inflation in long-term investment portfolios, stating that amid concerns about the credibility of US institutions and the ability of crude oil to withstand supply shocks, gold is attractive as a safe haven. Analysts such as Daan Struyven recommend a higher-than-usual allocation to gold and a lower-than-usual allocation to oil (though still positive), stating that commodities are a "key" hedge against inflationary shocks, which tend to harm bond and equity portfolios. Citi has raised its 0-3 month target price for gold to $3,500 per ounce, expecting gold prices to consolidate between $3,100 and $3,500 per ounce. Recommended readings: 》SMM: Industrial demand and ETF investment demand, among others, may support medium and long-term fluctuations and upward trends in silver prices [SMM Silver Conference] 》Analysis of Silver and Gold Price Trends from a Trader's Perspective [SMM Silver Conference] 》Has the Gold Bull Market Just Begun? Analysts Say Historical Experience Suggests Prices Could Reach $4,500

Against the backdrop of advancing the "dual carbon" goals and rapid iterations in clean energy technologies, hydrogen power generation has garnered increasing market attention as a crucial new-type energy solution. On May 21, at the international event WGC2025, Kunhua Technology officially launched its self-developed third-generation hydrogen power generation system—Kunhong·EC-200, which sparked widespread industry interest with its robust performance metrics and highly integrated functionality. According to Bing Wu, Co-founder and Senior Vice President of Kunhua Technology, the Kunhong·EC-200 is positioned as a next-generation efficient, intelligent, and lightweight hydrogen power generation system. Its power output ranges from 0-200kW (expandable to higher capacities), with an AC net generation efficiency of no less than 50% and a combined heat and power efficiency exceeding 90%, placing it at the forefront of current similar products. Unlike traditional large-scale power generation equipment, the Kunhong·EC-200 adopts a novel architecture and modular design, occupying less than 5㎡ of space, significantly enhancing site adaptability and deployment flexibility. The product supports both off-grid standalone operation and grid connection, making it particularly suitable for emergency power supply and continuous energy assurance in complex or remote environments such as construction sites, deserts, and isolated islands, thereby providing a practical pathway for the "downward penetration" of hydrogen technology. The Kunhong·EC-200 fully integrates an intelligent control system, supporting black start and uninterrupted hydrogen replacement functions to ensure stable power supply even during refueling, improving system availability under extreme conditions. Additionally, the product features smart self-diagnosis and remote operation and maintenance capabilities, with a user-friendly interface that lowers the barrier to use while significantly enhancing operational safety and stability.

SMM May 20 News: Metal Market: Overnight, most domestic base metals declined, with SHFE tin rising by 0.15%, SHFE copper by 0.54%, SHFE nickel falling by 0.31%, SHFE lead by 0.71%, SHFE aluminum by 0.62%, and SHFE zinc by 0.27%. In addition, the most-traded alumina futures rose by 1.23%. Overnight, the ferrous metals series all fell, with iron ore declining by 0.14%, stainless steel by 1.16%, rebar by 0.62%, and HRC by 0.37%. In terms of coking coal and coke: coking coal fell by 0.53%, and coke by 0.49%. Overnight, LME base metals generally declined, with LME copper rising by 0.73%, LME aluminum by 1.83%, LME lead by 1.78%, LME zinc by 0.71%, LME tin by 0.44%, and LME nickel by 0.95%. Overnight, precious metals: COMEX gold rose by 1.41%, and COMEX silver by 0.44%. Overnight, SHFE gold rose by 0.97%, and SHFE silver by 0.25%. Data released by the World Gold Council (WGC) showed that, for the week ending May 16, global physical gold ETFs saw outflows of $2.965 billion, with open interest at 3,525.6 mt, a decrease of 30 mt or 0.8%. Renowned investment bank Goldman Sachs remains optimistic that gold prices will reach $3,700 per ounce by the end of the year. Goldman Sachs data indicates that global central banks had strong demand for gold in March this year. Since the beginning of the year, global central banks' average monthly demand for gold has been 94 mt, far exceeding the previously estimated 80 mt. As of 8:13 on May 20, overnight closing prices 》Click to view SMM Futures Data Dashboard Macro Front Domestic: [MIIT: Maintain Steady Growth in Manufacturing, Stabilize and Expand Employment Capacity] Li Lecheng, Secretary of the Party Leadership Group, Minister, and Leader of the Employment Promotion Working Group of the Ministry of Industry and Information Technology (MIIT), presided over a meeting of the Employment Promotion Working Group. The meeting emphasized the need to strengthen coordination, ensure the meticulous implementation of various tasks, form a joint effort, and strive for tangible results. Maintain steady growth in manufacturing, stabilize and expand employment capacity. Implement a new round of work plans for stabilizing growth in key industries, and implement the policies of "implementation of major national strategies and the development of security capabilities in key areas" and "program of large-scale equipment upgrades and consumer goods trade-ins". Strengthen technological transformation of enterprises in key industries, and do a good job in job creation and vocational ability enhancement and transformation during digital transformation. Implement actions to cultivate emerging industries and create new momentum, fostering new growth points such as artificial intelligence and low-altitude industries. Cultivate and expand high-quality enterprises to enhance their employment absorption capacity. [SAFE: Foreign Investors' Willingness to Allocate RMB Assets Continues to Improve, Foreign Investment in Domestic Stocks Turned Net Buying in Late April] Li Bin, Deputy Director of the State Administration of Foreign Exchange (SAFE) and spokesperson, stated that in April, cross-border capital inflows from non-bank sectors, including enterprises and individuals, amounted to $17.3 billion. From the perspective of major channels, firstly, China's foreign trade has demonstrated certain resilience, with a net inflow of cross-border funds under goods trade amounting to $64.9 billion, maintaining a relatively high level. Secondly, foreign investors' willingness to allocate RMB assets has continued to improve. In April, foreign investors net increased their holdings of domestic bonds by $10.9 billion, reaching a relatively high level. In late April, foreign investment in domestic stocks turned to net purchases. Thirdly, the main outflow channels have remained stable and orderly. In April, the net outflow of funds from service trade was basically flat MoM. The seasonal repatriation of profits by foreign-invested enterprises increased but remained lower than the same period last year. Inbound and outbound foreign direct investment was basically stable, and cross-border funds from borrowing and lending among affiliated enterprises shifted from net outflow to basically balanced. [China Construction Bank and China Merchants Bank Cut Deposit Rates, with 1-Year Fixed Deposit Rate Falling Below 1%] China Construction Bank lowered its RMB deposit rates on May 20th. The demand deposit rate was reduced by 5 basis points to 0.05%. The rates for three-month, six-month, one-year, and two-year fixed deposits with lump-sum deposit and withdrawal were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The rates for three-year and five-year fixed deposits were lowered by 25 basis points to 1.25% and 1.3%, respectively. The rates for three types of fixed deposits with staggered deposit and withdrawal (lump-sum deposit and staggered withdrawal, staggered deposit and lump-sum withdrawal, and lump-sum deposit with interest withdrawal) were all lowered by 15 basis points. The 7-day call deposit rate was lowered by 15 basis points to 0.3%. China Merchants Bank also lowered its RMB deposit rates. The demand deposit rate was reduced by 5 basis points to 0.05%. The rates for three-month, six-month, one-year, and two-year fixed deposits with lump-sum deposit and withdrawal were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The rates for three-year and five-year fixed deposits were lowered by 25 basis points to 1.25% and 1.3%, respectively. The rates for three types of fixed deposits with staggered deposit and withdrawal were all lowered by 15 basis points. The 7-day call deposit rate was lowered by 15 basis points to 0.3%. US Dollar: The overnight US dollar index fell by 0.59% to close at 100.36. Moody's downgraded the US sovereign credit rating from "Aaa" to "Aa1", citing the US government's outstanding debt of $36 trillion and the heavy interest burden. Pressured by the downgrade of the US government's credit rating late last Friday, the US dollar generally fell on Monday, with its exchange rates against safe-haven currencies such as the Japanese yen, Swiss franc, and euro hitting new lows in more than a week. Trade tensions also weighed on the US dollar. Other Currencies: The European Commission stated that due to the US trade war and uncertainties, economic growth in the eurozone will slow down this year and next. The eurozone's GDP growth rate is expected to be only 0.9% this year, lower than the 1.3% projected in November last year. The projected growth rate for 2026 is 1.4%, still below the previously expected 1.6%. The downgraded growth outlook is mainly due to weak global trade and rising uncertainties in trade policies. The report assumes that the US will maintain tariffs on EU goods, including a 25% tariff on steel, aluminum, and automobiles. The economic outlook faces downside risks, as further fragmentation in global trade could curb GDP growth and trigger inflationary pressures. If trade tensions between the EU and the US ease or if trade expansion between Europe and other countries accelerates, economic growth may rebound. The eurozone's unemployment rate is expected to continue declining this year and next, reaching 6.1% by 2026. Consumer inflation is projected to fall from 2.4% last year to 2.1% and 1.7% this year and next, respectively. (Huitong Finance) In April, the eurozone's CPI rose 2.2% YoY, in line with expectations; it rose 0.6% MoM, also in line with expectations. France (0.9%), Cyprus (1.4%), and Denmark (1.5%) had the lowest annual growth rates. Romania (4.9%), Estonia (4.4%), and Hungary (4.2%) had the highest annual growth rates. Compared to March 2025, annual inflation rates fell in 13 member states, remained stable in 3, and rose in 11. In April 2025, services contributed the most to the eurozone's annual inflation rate (+1.80 percentage points, pp), followed by food, alcohol, and tobacco (+0.57pp), non-energy industrial goods (+0.15pp), and energy (-0.35pp). (Caijing) Macro: Today, data including China's one-year Loan Prime Rate (LPR) for May, China's five-year LPR for May, China's annual rate of total electricity consumption for April, Australia's cash rate for May, Canada's unadjusted annual CPI rate for April, Canada's central bank's core monthly CPI rate for April, and the preliminary eurozone consumer confidence index for May will be released. Additionally, notable events include the Reserve Bank of Australia (RBA) announcing its interest rate decision, RBA Governor Michele Bullock holding a monetary policy press conference, and the G7 finance ministers and central bank governors meeting, which will run through May 22. Crude Oil: Both oil futures rose slightly, with US crude up 0.29% and Brent crude up 0.11%. This was due to market concerns about supply prospects offsetting the impact of Moody's downgrade of the US sovereign credit rating. A preliminary survey on Monday indicated that US crude oil and refined product inventories likely fell last week. Before the weekly inventory data was released, the average forecast of five surveyed institutions was that US crude oil inventories were expected to fall by about 1.4 million barrels in the week ending May 16. The weekly inventory report from the American Petroleum Institute (API) will be released at 4:30 on Wednesday, and the US Energy Information Administration (EIA) will publish its weekly crude oil inventory report at 22:30 on Wednesday. (Webstock Inc.)

SMM May 9 News: Metal Market: As of the midday close, domestic base metals generally rose, with SHFE aluminum up 0.54%. SHFE copper, SHFE lead, and SHFE zinc all rose by less than 0.3%. SHFE nickel fell 0.21%, and SHFE tin dropped 0.26%. In addition, alumina rose 2.92%, lithium carbonate fell 0.88%, silicon metal rose 0.24%, and polysilicon surged 4.25%. The ferrous metals series all fell, with iron ore and stainless steel dropping slightly. Rebar fell 1.14%, and HRC declined 0.78%. In the coking coal and coke sector: coking coal fell 1.18%, and coke dropped 1.29%. In the overseas metal market, as of 11:45 a.m., LME base metals generally fell. LME tin dropped 0.57%, while LME zinc rose 0.65%. LME lead increased 0.8%, LME copper fell 0.31%, and LME aluminum declined slightly. LME nickel fell 0.19%. In the precious metals sector, as of 11:45 a.m., COMEX gold rose 0.24%, and COMEX silver fell 0.11%. Domestically, SHFE gold fell 2.02%, and SHFE silver dropped 0.34%. Data released by the World Gold Council (WGC) showed that in April, global gold ETFs saw inflows of $11 billion, marking the fifth consecutive month of net inflows. Supported by rising gold prices and sustained capital inflows, the assets under management (AUM) of global gold ETFs reached another month-end high of $379 billion. Meanwhile, gold holdings surged by 115 mt to 3,561 mt, the highest level since August 2022, but still 10% below the month-end peak of 3,915 mt reached in October 2020. As of the midday close, the most-traded contract for the European container shipping index rose 0.48% to 1,266 points. As of 11:45 a.m. on May 9, the midday futures market movements for some contracts were as follows: 》SMM Metal Spot Prices on May 9 Spot and Fundamentals Copper: Today, spot #1 copper cathode in Guangdong was quoted at a premium of 90 yuan/mt to a premium of 220 yuan/mt against the front-month contract, with an average premium of 155 yuan/mt, down 40 yuan/mt from the previous trading day. SX-EW copper was quoted at a premium of 30 yuan/mt to a premium of 50 yuan/mt, with an average premium of 40 yuan/mt, down 50 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,315 yuan/mt, up 10 yuan/mt from the previous trading day, while the average price of SX-EW copper remained unchanged at 78,200 yuan/mt from the previous trading day. Inventories in Guangdong have declined for three consecutive days, primarily due to reduced arrivals... 》Click for details Macro Front Domestic Aspect: [General Administration of Customs: China's Foreign Trade in Goods Grew 2.4% in the First Four Months, with Increased Exports of Integrated Circuits and Automobiles] According to customs statistics, in the first four months of 2025, China's total foreign trade in goods reached 14.14 trillion yuan, up 2.4% year-on-year (YoY, the same hereinafter).Among them, exports reached RMB 8.39 trillion, up 7.5%; imports amounted to RMB 5.75 trillion, down 4.2%. In April, the total value of China's foreign trade in goods was RMB 3.84 trillion, up 5.6%. Among them, exports were RMB 2.27 trillion, up 9.3%; imports were RMB 1.57 trillion, up 0.8%. In the first four months, China's exports of mechanical and electrical products reached RMB 5.04 trillion, up 9.5%, accounting for 60.1% of China's total export value. Among them, automatic data processing equipment and its parts were worth RMB 458.71 billion, up 5.6%; integrated circuits were worth RMB 405.15 billion, up 14.7%; and automobiles were worth RMB 264.98 billion, up 4%. According to CCTV News, Lv Daliang, Director of the Department of Statistics and Analysis at the General Administration of Customs, said: Since the beginning of this year, various regions and departments have worked together to effectively respond to external shocks, promoting a sustained rebound and improvement in China's economy, with foreign trade maintaining a steady growth trend. The growth rate of imports and exports in April accelerated by 4.3 percentage points compared to Q1, with export growth expanding and imports turning from decline to increase, demonstrating strong resilience. 》Click to view details 【China's E-commerce Logistics Index Continued to Rise in April, Showing Good Momentum】 The China Federation of Logistics and Purchasing (CFLP) announced today (May 9) China's E-commerce Logistics Index for April. Driven by various policies aimed at stabilizing growth, expanding domestic demand, and promoting consumption, China's E-commerce Logistics Index continued to rise in April, with all major sub-indices showing a MoM rebound, indicating a good growth momentum in online consumption. China's E-commerce Logistics Index for April was 111.1 points, up 1.1 points MoM. All major sub-indices increased compared to the previous month. The People's Bank of China (PBOC) conducted RMB 77 billion in 7-day reverse repo operations today, with an operating interest rate of 1.40%, unchanged from the previous rate. As there were no 7-day reverse repos maturing today, a net injection of RMB 77 billion was achieved. ► The central parity rate of the RMB against the US dollar in the inter-bank foreign exchange market on May 9 was RMB 7.2095 per US dollar. US dollar: As of 11:45, the US dollar index was up 0.02%, at 100.65. The market is paying attention to speeches by several US Fed officials later in the day to gain further insights into the economic and policy paths of the US Fed. Previously, the US Fed kept interest rates unchanged on Wednesday and warned of rising risks of inflation and unemployment. Data: Today, data such as Switzerland's Q2 Consumer Confidence Index (seasonally adjusted), China's M2 money supply YoY for April, China's Total Social Financing (YTD) for April, China's New RMB Loans (YTD) for April, Canada's Change in Employment for April, and Canada's Unemployment Rate for April will be released. Also worth noting: Vice Premier of the State Council He Lifeng visited Switzerland from May 9 to 12, holding talks with Swiss leaders and relevant parties. During his visit, as the Chinese head of the China-US economic and trade negotiations, Vice Premier He Lifeng will hold talks with the US head, US Treasury Secretary Bessent. In addition, speeches by Bank of England Governor Bailey, FOMC permanent voter and New York Fed President Williams (delivering a keynote speech), Fed Governor Kugler, 2025 FOMC voter and Chicago Fed President Goolsbee, Fed Governor Barr, and FOMC permanent voter and New York Fed President Williams and Fed Governor Waller are also worth following. Crude Oil: As of 11:45, crude oil futures rose, with US oil up 0.4% and Brent oil up 0.4%. The UK announced a breakthrough trade agreement with the US, easing market concerns over trade tensions. Additionally, the US tightening sanctions on Iran may limit supply and push up oil prices. OPEC's plan to increase production may continue to put pressure on oil prices. A survey released on Thursday showed that OPEC's oil production slightly declined in April, as production drops in Libya, Venezuela, and Iraq outweighed planned increases. (Webstock Inc.) Spot Market Overview: ► The price spread between futures contracts continues to widen, downstream restocking sentiment remains low, and spot premiums have significantly declined. [SMM South China Spot Copper] ► Some suppliers are dumping goods at low prices, causing a sharp drop in spot premiums and discounts. [SMM North China Spot Copper] ► [SMM Analysis] With weakening fundamentals, iron ore is expected to remain in the doldrums next week. Updates on other metal spot noon reviews will be available later. Please refresh to view.

SMM May 7 News: Metal Market: Overnight, domestic market base metals generally declined, with SHFE tin rising by 0.73%, SHFE copper by 0.84%, SHFE nickel falling by 0.21%, SHFE lead by 0.09%, SHFE aluminum by 0.55%, and SHFE zinc by 0.27%. In addition, alumina rose by 0.85%. Overnight, the ferrous metals series mostly rose, with iron ore up by 1.13%, stainless steel by 0.55%, rebar by 0.52%, HRC by 0.84%. In terms of coking coal and coke: coking coal fell by 0.11%, and coke by 0.13%. Overnight, LME base metals generally declined, with LME copper falling by 0.15%, LME zinc by 0.27%, LME tin rising by 0.02%, LME lead by 0.29%, and LME aluminum by 0.02%. LME nickel fell by 0.04%. Overnight, precious metals: COMEX gold surged by 3.6%, and COMEX silver by 2.96%. Overnight, SHFE gold rose by 1.6%, and SHFE silver by 0.45%. Data released by the World Gold Council (WGC) showed that global central banks net purchased 17 mt of gold in March. Demand remained strong, with global central banks purchasing 35 mt of gold and selling 18 mt in March, of which Uzbekistan net sold 11 mt. As of 8:09 on May 7, overnight closing prices 》Click to view SMM Futures Data Dashboard Macro Front Domestic: [Announcement: The People's Bank of China, the China Securities Regulatory Commission, and other departments will make statements at 9 a.m. on the 7th to introduce the "package of financial policies to support market stability and expectations"] According to a May 6 announcement from the State Council Information Office, the office will hold a press conference at 9 a.m. on May 7, where officials from the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission will introduce the "package of financial policies to support market stability and expectations" and answer questions from reporters. [Announcement: The Ministry of Commerce will hold its first regular press conference in May on May 8] The Ministry of Commerce is scheduled to hold a press conference at 3 p.m. on May 8, 2025 (Thursday), where a spokesperson will introduce the latest key work in the commerce sector and answer questions from reporters. [Announcement: Public Consultation on the Establishment Plan for the MIIT E-bike Standardization Working Group] In response to industrial development and industry management needs, relevant entities have proposed an establishment plan for the e-bike standardization working group under the Ministry of Industry and Information Technology (MIIT). To further gather opinions from all sectors of society, the establishment plan is now open for public consultation until June 5, 2025. US Dollar: Overnight, the US dollar index fell by 0.56% to 99.24.Hopes for a US trade deal are fading, and the US dollar is in trouble. Data released by the US Department of Commerce on Tuesday showed that the US trade deficit reached a record high of $140.5 billion in March, as companies increased imports of goods ahead of tariff announcements, dragging the US gross domestic product (GDP) into negative growth for the first time in three years in Q1. Uncertainty over US tariffs has led to a deterioration in US consumer confidence data, with many companies withdrawing their financial forecasts. Speeches by Fed officials, including Fed Chairman Powell, suggest that the Fed will remain patient until the impact of tariffs is reflected in economic data before deciding whether and how to adjust monetary policy. The Fed began a two-day meeting on Tuesday, and the market widely expects the Fed to keep interest rates unchanged on Wednesday. In other currency news: The president of the Swiss National Bank stated that the main concerns of businesses are geopolitical uncertainty, weakening European demand, and the appreciation of the Swiss franc over the past two weeks. Switzerland is facing a triple hit from tariffs. Our responsibility is to stabilize prices in Switzerland, and we must use interest rates and exchange rates to ensure this. Swiss National Bank President Martin Schlegel said that the appreciation of the Swiss franc has been significant, and policymakers are ready to intervene in the foreign exchange market if necessary to maintain price stability. (Caijing) The euro rose against the US dollar, mainly driven by the overall weakness of the US dollar. Since April, the euro has appreciated more than 5% against the US dollar, as investors question the dominance of the US dollar in the global financial system and turn to favour the euro as an alternative currency. The euro is also supported by expectations of increased German defense spending. The European Central Bank cut its deposit rate by 25 basis points to 2.25%, the lowest level since early 2023, and removed the term "restrictive" from its policy language, while warning that the economic outlook has deteriorated due to trade tensions. The market expects the European Central Bank to make three more 25-basis-point interest rate cuts before the end of the year. (Huitong Finance) On the macro front: Today, data such as Australia's April AIG Performance of Manufacturing Index, New Zealand's Q1 unemployment rate, New Zealand's Q1 labor force participation rate, China's April foreign exchange reserves, Russia's April SPGI Services PMI, France's March trade balance, the eurozone's March retail sales month-on-month rate, the eurozone's March retail sales year-on-year rate, and Canada's April leading indicators month-on-month rate will be released. In crude oil news: Both WTI and Brent crude oil futures rose sharply overnight, with WTI up 3.27% and Brent up 3.01%. This is due to signs of increased European demand, a decline in US production, and tensions in the Middle East.Additionally, buyers emerged in the market on the second day after oil prices fell to a four-year low, factors that supported oil prices. Data released by the American Petroleum Institute (API) showed that for the week ending May 2, US crude oil inventories fell by 4.494 million barrels, gasoline inventories decreased by 1.974 million barrels, and distillate fuel oil inventories increased by 2.242 million barrels. Analysts surveyed earlier had expected, on average, a decline of 800,000 barrels in US crude oil inventories, a decrease of about 1.5 million barrels in gasoline inventories, and a reduction of about 1.3 million barrels in distillate fuel oil inventories for the previous week. The EIA will release official oil inventory data at 22:30 Beijing time on Wednesday. The US Energy Information Administration (EIA) stated in its monthly Short-Term Energy Outlook (STEO) that US oil production in 2025 is expected to be 13.42 million barrels per day, down from the previous forecast of 13.51 million barrels per day. Production in 2026 is projected to be 13.49 million barrels per day, compared to the prior estimate of 13.56 million barrels per day. The EIA maintained its global oil production forecast for 2025 at 104.1 million barrels per day and expects production to reach 105.4 million barrels per day in 2026, up from the previous estimate of 105.3 million barrels per day (Webstock Inc.).