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  [SMM MHP Daily Review] June 5: MHP prices in Indonesia decline

  As of now, the MHP coefficient (relative to the SMM battery-grade nickel sulphate index) ranges from 83.5% to 84%, and the FOB price of Indonesian MHP is $12,653/mt Ni.

• June 5: SHFE aluminum held up well, with inventory buildup yet to be seen and processing fee struggling to maintain [Daily Review of Spot Aluminum Billet]

  In terms of aluminum billet inventory, according to SMM statistics, as of June 5, the aluminum billet inventory in major domestic consumption areas reached 130,000 mt, up 2,300 mt from Tuesday this week and 1,700 mt from Thursday last week. Inventory has slightly rebounded and is expected to become an inflection point. After falling below the 130,000 mt threshold in the past two weeks, aluminum billet inventory has shown a notable slowdown in de-stocking. This is due to intensified wait-and-see sentiment among downstream players and a significant weakening in purchasing efforts. However, the inventory level remains low compared to the same period in the past three years. Regarding processing fees, the SHFE aluminum market is currently trading bearish factors such as the off-season in consumption and tariff increases this week. However, due to the rising proportion of liquid aluminum, inventory has yet to enter the inventory buildup phase. The market is characterized by a mix of bullish and bearish sentiments, with aluminum prices fluctuating considerably. Aluminum billet processing fees have also shown considerable fluctuations during the week. As of June 5, 2025, the aluminum billet market in Foshan reported processing fees of 280/330 yuan/mt; in Wuxi, processing fees were reported at 250/330 yuan/mt; and in Nanchang, processing fees were reported at 230/280 yuan/mt. (Unit: yuan/mt)

• Base metals show mixed performance, with SHFE tin up 1.49%, alumina down nearly 3%, and polysilicon down over 2% [SMM Midday Review]

• The regular maintenance season for lead smelting is approaching. How is the maintenance progress for precious metals?

  Every year from June to August marks the conventional maintenance season for primary lead smelters. Most enterprises will halt equipment operations by mid-June, with production expected to significantly decrease in late June. After the maintenance, anode slime raw material inventory will gradually decrease, and precious metal production will enter the maintenance phase by month-end June. Therefore, silver production at some manufacturers may slightly decline in June, but the decline in silver production at lead smelters will mainly occur in July.

• Downstream enters off-season, high premium pulls back [SMM Spot Aluminum Midday Review]

  [SMM Midday Spot Aluminum Review: Downstream Enters Off-Season, High Premiums Pull Back] On the inventory side, according to SMM's domestic aluminum ingot inventory data, domestic electrolytic aluminum ingot inventory stood at 504,000 mt on June 5, a destocking of 15,000 mt compared to Tuesday. In the short term, the lower arrival volume is conducive to maintaining premiums, but the downstream's acceptance of high premiums has decreased. Coupled with weakening demand during the off-season, holders are actively selling, and premiums and discounts are expected to pull back mainly.