U.S. House Passes Resolution to Restrict Trump’s Authority to Use Force Against Iran

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1. Trump said the maritime blockade of Iran could last until September.

2. Trump: Working on an agreement with Iran, which has agreed not to pursue nuclear weapons.

3. China Cotton Association: It is expected that most cotton-producing regions nationwide will experience above-average temperatures in June, with some areas potentially facing periodic heat stress and agricultural drought.

4. As of the morning of June 3, the number of coal mines in Shanxi that have resumed production reached 59, with a total capacity of 77.65 million tons.

5. China Iron and Steel Association: Social steel inventory is 9.39 million tons, down 150,000 tons环比, or 1.6%.

6. SPPOMA: Palm oil production in Malaysia from May 1-31 decreased by 10.07% month-over-month.

7. Silicon Industry Branch: Domestic polysilicon production in China is expected to increase to 90,000–91,000 metric tons in June.

8. The U.S. House of Representatives passed a resolution limiting Trump's power to use military force against Iran.

9. Iran outlines a four-phase plan for reaching an agreement with the United States.

1. According to Xinhua, U.S. President Trump stated in an interview program aired on the 3rd that the U.S. maritime blockade of Iran may last until Labor Day, September 7 this year.

2. U.S. President Trump stated in a podcast interview that he is working toward an agreement with Iran, which has agreed not to possess nuclear weapons. Iran’s Supreme Leader is negotiating with the United States and is granting approval for the negotiations.

3. According to Xinhua Finance, in early June, the PBOC gradually reduced its reverse repurchase operations. Yesterday, this further dropped to zero. Notably, on August 7, 2024, the PBOC also conducted zero 7-day reverse repurchase operations, under circumstances similar to today, primarily due to limited funding demand from financial institutions.

4. In May 2026, China's service industry PMI by RatingDog reached 54.4, up 1.8 percentage points from 52.6 in April, marking the 41st consecutive month of expansion and the fastest expansion rate in three months.

5. U.S. ADP employment increased by 122,000 in May, the largest gain since January last year. The number of new jobs added by U.S. businesses was the highest since January 2025, suggesting that the labor market may be accelerating despite rising energy costs due to the Iran conflict.

6. According to Iran’s Mehr News Agency on the 3rd, the draft concerning the management of the Strait of Hormuz has entered the review stage of Iran’s Supreme National Security Council and will be submitted to the full parliament for deliberation and voting once final opinions are formed.

7. Fed's Williams said that rising energy prices are pushing up costs and inflation; I expect inflation to peak over the coming months. Monetary policy is "just right" at its current level, with no need for rate hikes or cuts. Upside risks to inflation have increased, and I do not find forward guidance particularly helpful.

8. According to Iranian media Fars News, Iran has outlined a four-phase plan for reaching an agreement with the United States. The first phase focuses on a complete cessation of all military operations across all fronts, including those involving Iran, the United States, and the Resistance Axis. The second phase centers on implementing measures addressing four key issues: the Strait of Hormuz and related mechanisms, lifting blockades, removing oil restrictions and sanctions, and unfreezing part of Iran’s assets.

9. When asked how to define a ceasefire, U.S. President Trump said: “In that region (Iran), what is called a ceasefire means that the fighting becomes less intense. That’s true. The ceasefire there is very different from ceasefires in other regions.”

10. The Republican-controlled U.S. House of Representatives voted to halt U.S. military action against Iran, diverging from Trump on this unpopular foreign conflict that is increasingly burdening American citizens economically. However, the resolution does not compel Trump to fully end the conflict; it is largely symbolic, as the bill must still pass the Republican-controlled Senate and can be vetoed by Trump during the signing stage.

1. The front-month U.S. crude oil contract rose 2.6% to close at $96.20 per barrel; the front-month Brent crude oil contract increased 1.45% to $97.39 per barrel. The outbreak of renewed conflict between the U.S. and Iran, with mutual strikes and prolonged stagnation in peace negotiations, has cast doubt on the resumption of oil shipments through the Strait of Hormuz, intensifying geopolitical tensions and heightening market concerns over potential oil supply shortages. Meanwhile, U.S. crude oil inventories have declined for multiple consecutive weeks, with Cushing crude stockpiles nearing their lowest operational level, further supporting higher oil prices amid tightening supply conditions.

2. International precious metals futures generally closed lower; COMEX gold futures fell 1.27% to $4,462.70 per ounce, and COMEX silver futures dropped 3.41% to $72.98 per ounce. Signals from the Federal Reserve suggesting a possible further rate hike later this year, combined with ongoing geopolitical uncertainty due to unresolved negotiations over Iran’s nuclear program, weighed on market sentiment and drove precious metals lower.

3. All base metals in London fell: LME zinc dropped 1.04% to $3,603.5/ton, LME lead fell 1.17% to $2,020.5/ton, LME tin declined 1.26% to $57,230.0/ton, LME aluminum dropped 1.47% to $3,697.5/ton, LME copper fell 1.82% to $13,785.5/ton, and LME nickel slid 2.22% to $18,820.0/ton.

1. According to the latest survey by Mysteel on June 3: Since May 23, a total of 135 coal mines in Shanxi have ceased production, with a combined capacity of 153.7 million tons. As of the morning of June 3, 59 coal mines have resumed production, with a combined capacity of 77.65 million tons. A total of 77 coal mines remain shut down, with a combined capacity of 76.05 million tons.

2. On June 3, steel mills in Hebei market raised their coke procurement prices by CNY 50/55 per ton. Adjusted prices: First-grade wet-quenched coke (A≤12.5, S≤0.7, CSR≥65, MT≤7) at CNY 1,810 per ton; first-grade dry-quenched coke (A≤12.5, S≤0.7, CSR≥65, MT≤0) at CNY 2,195 per ton (top-charged coke). All prices are factory-delivered, accepted as payment, and inclusive of tax, effective from 0:00 on June 3.

3. According to data from the China Iron and Steel Association, at the end of May, the social inventory of five major steel products in 21 cities amounted to 9.39 million tons, a decrease of 150,000 tons (-1.6%) from the previous month, with the rate of decline narrowing; an increase of 2.18 million tons (+30.2%) since the beginning of the year; and an increase of 1.45 million tons (+18.3%) compared to the same period last year.

4. According to data from Zhonggang Network, for the week ending June 3, the national construction materials output was 4.7728 million tons, a decrease of 0.1981 million tons from the previous week; factory inventory stood at 4.9845 million tons, an increase of 0.0401 million tons from the previous week; apparent demand was 4.7640 million tons, a decrease of 0.4571 million tons from the previous week.

1. According to Longzhong Information, due to reduced import volumes, China’s methanol port inventory totaled 633,500 metric tons as of June 3, 2026, a decrease of 28,500 metric tons from the previous period. Inventory has now declined for six consecutive weeks and has fallen to near its lowest level in the past year.

2. UANI, a U.S.-based nonprofit advisory organization, stated that last month Iran struggled to break through the U.S. Navy’s blockade, leaving approximately 80 million barrels of oil and petrochemical products stranded in waters behind the blockade.

3. Latest data from the Fujairah Oil Industrial Zone in the UAE shows that as of the week ending June 1, total product inventories at the Fujairah port amounted to 5.212 million barrels, a decrease of 307,000 barrels from the previous week.

4. As the situation in the international Strait of Hormuz evolves and port inventories continue to decline, sulfur prices have risen. According to SMM, the current ex-factory auction price for sulfur in Shandong has exceeded 8,000 yuan/ton, with the recent trading center for the Yangtze River port market at 7,800 yuan/ton.

5. According to the EIA report, for the week ending May 29, U.S. commercial crude oil inventories, excluding strategic reserves, decreased by 7.974 million barrels to 434 million barrels, a decline of 1.81%—exceeding market expectations and marking the largest drop since the week of February 13, 2026, and the sixth consecutive weekly decline, bringing crude oil inventories to their lowest level since May 2025.

1. The Shanghai Futures Exchange has revised the "Shanghai Futures Exchange Regulations on the Management of Non-Ferrous Metal Delivery Commodities" (May 2025 revision). The main revisions include: first, changing "lead ingot (Pb99.994)" to "lead"; second, distinguishing between content related to lead ingots and recycled lead ingots in the annex, and adding requirements and documentation for key technical and economic indicators, surface (appearance) quality inspection, and internal quality inspection specific to recycled lead ingots.

2. Russia has released its first gold mining output data in years, with the figures far exceeding independent industry estimates. If accurate, this would make Russia the world’s largest gold producer. Alexander Kozlov, Russia’s Minister of Natural Resources, told TASS that the country’s ore output this year is expected to be between 480 and 500 tons. Last year’s output was approximately 480 tons.

3. According to the Silicon Industry Association, based on production schedules, the polysilicon market is expected to enter a phase of increasing supply and demand in June. On the supply side, five companies are projected to ramp up production, while one company is scheduled for maintenance; collectively, domestic polysilicon output in June is forecasted to rise to 9–9.1 thousand metric tons. On the demand side, downstream wafer production is also expected to increase, with polysilicon demand estimated at approximately 8.7 thousand metric tons.

4. According to the Philippine Statistics Authority, the Philippines exported 8.34 million wet metric tons of nickel ore in April 2026, a 52.32% increase month-over-month and a 53.81% increase year-over-year, marking the highest monthly nickel ore export volume since 2021.

1. Weather speculation cannot yet be disproven; rapeseed oil opens with increased open interest and surges sharply.

Zijin Tianfeng Futures stated that, whether in Canada, the European Union, or Australia, most parties tend to revise downward either yield or production when announcing new supply and demand data, particularly in 2023. Only by July or August might provincial governments in major producing regions such as Canada release yield figures ahead of the federal government, at which point it will become clearer whether rapeseed production has indeed decreased. Until then, weather-related speculation is difficult to disprove—for instance, in July 2023, when Canadian provinces announced higher-than-expected yields, rapeseed oil prices subsequently weakened. Currently, China imposes an additional 4.9% tariff on Canadian rapeseed, yet it cannot be denied that U.S. biodiesel policies benefit Canadian rapeseed oil. As a result, the floor for domestic rapeseed oil prices or the price spread between rapeseed and soybean oil has risen. This is because the market had previously maintained a consistently bearish stance on rapeseed oil. However, caution is warranted: after a price rally on the futures market, improved crushing margins and sustained vessel purchases may exert downward pressure on nearby contracts. Given that domestic consumption growth for rapeseed oil remains modest, the price spread between rapeseed and soybean oil is unlikely to rise significantly.

2. Warehouse pressure causes lithium carbonate to break below the 170,000 threshold

Everbright Futures noted that, in terms of warehouse receipts, recent inventory increased by 775 tons to 55,990 tons. Amid rising delivery pressure, the lithium carbonate futures price has continued to decline, with short-term volatility potentially expanding. Given that battery demand remains robust, the June balance sheet still shows a modest supply deficit, and total inventories are expected to continue declining gradually, supporting a fundamentally stable to strong outlook. However, the persistent rise in warehouse receipts is currently exerting downward pressure, and the market may focus on receipt levels in the short term. Additionally, monitor the shipping progress of Zimbabwean lithium concentrate and the status of production resumption at major mines in Jiangxi.

1. TBC on June 4: Mysteel weekly production and inventory of five major steel products;

2. June 4, 20:30 U.S. Initial Jobless Claims for the week;

3. The domestic refined oil pricing window will open for a new adjustment.