Concept tracking of Hong Kong stocks | US steel and aluminum tariffs doubled to 50% Steel and aluminum prices skyrocket Institutions: Focus on strategic metal investment opportunities (With concept stocks)

After US President Donald Trump announced that he would increase import tariffs on aluminum and steel to 50%, futures prices for aluminum and steel in the US quickly rose. On Monday, the price of aluminum contracts on the New York Mercantile Exchange rose by 54%, reaching their highest level since 2013. Starting from this Wednesday, aluminum import tariffs will be increased to 50%. It is worth noting that in the Midwest region of the US, the price of aluminum is 58 cents per pound higher than the London benchmark contract, equivalent to $1280 per ton. This means that American buyers may need to pay about 50% more than international competitors to obtain this metal. Trump hopes to protect domestic producers' profits and stimulate investment in new production capacity by raising tariffs. Following his announcement, the stock prices of US steel and aluminum producers skyrocketed in after-hours trading. However, construction companies have warned that the tariff increase will push up the cost of key building materials. It is reported that nearly half of aluminum products in the US rely on imports. In terms of steel, the US is also a net importer. Analysts told CNBC that US steel prices are already higher than in other regions, and tariff policies will only make prices higher. There have been reports that steel and aluminum are used in the manufacture of many products, such as cars, trucks, household appliances, machinery, airplanes, building materials, food and beverage cans. The canned food industry warns that tariffs may lead to price increases in grocery store products, with estimates that prices for cars and trucks may increase by at least $100, or even several thousand dollars. Although some industry experts have questioned whether tariffs will be implemented as planned, given Trump's previous reversals, they say uncertainty and rising metal prices will dampen industrial activity. Goldman Sachs analysts said, "Price increases may also further hit steel demand in the US manufacturing industry, and we expect steel demand in the US manufacturing industry to shrink this year." International critics have openly criticized US tariff policies. The escalation of trade tensions has already begun to show actual impacts. Data released by the German Mechanical Engineering Association shows that, affected by US tariff policies and policy uncertainties, new orders for the German machinery manufacturing industry in April fell significantly by 6% year-on-year. The association's chief economist Gernt said that the new threat of US tariffs has seriously affected global markets, leading to a continued decline in business investment sentiment. He called on Germany and Europe to accelerate the implementation of economic support measures to cope with external uncertainties. According to Futures Daily, Liu Huifeng, Chief Researcher of Black Metals at Donghai Futures, said that the increase in tariffs may further exacerbate expectations of weakening demand for steel, and there is a possibility of a further decline in the steel market after the Dragon Boat Festival holiday. However, in April and May, the steel market has shown a pattern of strong reality and weak expectations, with real demand still showing some resilience. Qiu Yuecheng, Director of Black Research at Everbright Futures, pointed out that in the short term, US tariffs may lead to an increase in overseas steel prices, putting pressure on China's steel market; in the medium term, the trend of steel prices still depends on supply and demand, and China's steel exports this year still have strong resilience. China Securities Co., Ltd. pointed out that since the beginning of the year, prices of strategic metals such as antimony, bismuth, tungsten, and molybdenum have taken turns to perform. In recent years, the central prices of a group of strategic minor metals have shown a significant upward trend, mainly due to the increasing scarcity of resources and the rigid supply, with the demand side benefiting from the development of new energy, new materials, manufacturing upgrades, and military industries. These key mineral resources have become a new "battlefield" for countries, and it is continuously expected that the value of domestic advantageous strategic minerals will return and stock valuations will be reassessed. It is recommended to pay attention to investment opportunities in strategic metals. Related concept stocks: Angang Steel (00347): The company announced its performance for the first quarter of 2025, with a net loss attributable to shareholders of approximately RMB 554 million, a decrease of 66.55% year-on-year; basic loss per share of RMB 0.059. The announcement stated that the narrowing of the net loss was mainly due to the decrease in the price decline at the sales end compared to the previous period, the expansion of the price decline at the procurement end, and the expansion of the purchase and sales scissor difference compared to the previous year; and the company's cost reduction measures have achieved certain results, and market expansion has been effective, resulting in an increase in unit profit of product sales. Maanshan Iron (00323): The company announced its performance for the first quarter of 2025, with a net loss attributable to shareholders of approximately RMB 144 million, a decrease of 53.67% year-on-year; basic loss per share of RMB 0.02. The announcement stated that the year-on-year reduction in loss was mainly due to the greater decrease in the price of raw materials in this period than the price of steel, and internal cost reduction measures. During the reporting period, the group insisted on all-element cost reduction and all-process quality improvement, responding to external uncertainties with certain efficiency in operational improvement. The group produced 4.57 million tons of pig iron, 5.15 million tons of crude steel, and 4.90 million tons of blooms, an increase of 1.68%, 4.99%, and 5.18% respectively year-on-year. Chongqing Iron (01053): The company released its first quarter report for 2025, with a net loss attributable to the mother of RMB 117 million, a decrease of 64.82% year-on-year; basic loss per share of RMB 0.01. The announcement stated that the significant year-on-year reduction in loss in the first quarter of 2025 was mainly due to the company's strengthening of operational management and lean operation, continuous improvement of process production efficiency, vigorous promotion of cost reduction, adjustments in procurement and sales strategies to deal with market downward pressure, and a turnaround to profit in March with a total profit of RMB 5.13 million. (Note: Stock market-related information has been included for reference purposes)