[SMM Analysis]On May 27, 2025, REPT Battero Energy Co., Ltd. (hereinafter referred to as "REPT Battero") and Hyosung Heavy Industries (hereinafter referred to as "Hyosung") officially signed a Memorandum of Understanding (MoU) for strategic cooperation, marking the beginning of in-depth collaboration in the energy storage system (ESS) sector. This cooperation focuses on key areas such as ESS battery cell supply, system integration, and market promotion.

[Weekly Review of Secondary Aluminum Market] This week, aluminum prices first declined and then rebounded, with A00 prices fluctuating around the 20,300 yuan/mt level, while secondary aluminum alloy prices followed the decline but not the increase.

According to SMM, since mid-May, due to the end of the domestic PV installation rush, orders have decreased significantly, leading to a decline in the operating rate of silver nitrate. In May, silver nitrate production fell by 17% MoM. As June begins, with the expected orders in the PV sector remaining unoptimistic, there are no signs of silver nitrate enterprises resuming production in the short term.

According to the latest statistics from the General Administration of Customs, China's zinc oxide exports reached 1,244.15 mt in April 2025, showing a slight MoM decline of 2.82%, but a significant YoY increase of 13.45% compared to the same period last year. From a cumulative perspective, China's zinc oxide exports totaled 4,709.87 mt from January to April 2025, with the YoY growth rate expanding to 28.22%. On the import side, zinc oxide imports stood at 488.12 mt in April, down 1.46% MoM and 20.40% YoY. The cumulative imports from January to April reached 1,909.67 mt, a 12.96% YoY decrease. The contraction in import volume was mainly influenced by the loose supply landscape in the domestic zinc oxide market, with domestic capacity significantly enhancing its support for domestic demand.

Today, DCE iron ore futures rebounded slightly, with the most-traded contract I2509 closing at 707, up 1.29% for the day. Traders showed moderate enthusiasm for selling. As the weekend approached, steel mills increased their restocking activities.

According to SMM data, the average weekly HRC production in May was 3.274 million mt. This week, HRC production was 3.2338 million mt, down 11,400 mt WoW. Compared to the same period in previous years, current HRC production was 7.08% lower YoY. Based on the latest rolling sample of weekly HRC production released by SMM, current HRC production was 3.9835 million mt, down 3.72% YoY.

Today, the DCE Iron Ore futures market experienced repeated fluctuations, with the most-traded contract I2509 eventually closing at 698.5, unchanged from yesterday's closing price, and recording a daily decline of 0.14%. Traders are shipping normally; steel mills are inquiring cautiously and purchasing as needed.