Investment firm Squarepoint hired traders to source and sell metals from all over the world, the latest sign of the firm’s major push into physical commodity trading https://t.co/zu37bcpKox ...

Group 1: Coal Market Insights - The coal market is currently experiencing a seasonal demand window, with daily consumption at 4.85 million tons as of June 5, showing a week-on-week increase of 7.5% [1] - The inventory available for use is at 24.4 days, down by 1.6 days week-on-week, indicating potential supply constraints [1] - The price of Qinhuangdao port thermal coal is at 609 RMB/ton, a slight decrease of 0.3% [1] - There is a concern about the possibility of a weak peak season due to increased rainfall in the Yangtze River basin, which could enhance hydropower output [1][12] Group 2: U.S.-China Trade Relations - The upcoming U.S.-China economic consultation mechanism meeting from June 8 to 13 is crucial for assessing future trade dynamics, particularly regarding the 10% baseline tariff and semiconductor export restrictions [2][8] - The sensitivity of the commodity market to these discussions is high, especially for shipping and crude oil sectors [2][8] - The potential for a thaw in U.S.-China relations could lead to a rebound in previously declining commodities such as energy and chemicals [8] Group 3: U.S. Economic Indicators - The U.S. non-farm payroll data for May showed an increase of 139,000 jobs, slightly above the expected 130,000, while the unemployment rate remained steady at 4.2% [9][10] - Wage growth is at 3.9% year-on-year, indicating sustained consumer strength, but the overall economic outlook remains cautious due to downward revisions of previous employment data [9][10] - The interplay between rising import prices and wage growth may limit the Federal Reserve's monetary policy flexibility, impacting both equity and commodity markets [10][11] Group 4: Agricultural Products - The agricultural sector is witnessing independent pricing dynamics, with pork prices exceeding 14 RMB/kg and Brazilian soybean prices rebounding [3][16] - The soybean market is currently in a critical growth season, with no immediate weather threats in the U.S. Midwest, suggesting limited upward pressure on prices [16] - The recent performance of soybean meal is driven by rising CNF prices from Brazil, supported by speculative buying from domestic oil mills [16] Group 5: Precious Metals - Silver is positioned for potential gains due to its dual industrial and monetary attributes, with supply constraints and demand from sectors like photovoltaics and electronics [3] - The gold-silver ratio may continue to improve, but fiscal risks remain unresolved, keeping gold as a primary safe haven [3]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - The short - term nickel and stainless steel markets may continue to fluctuate. The intraday Shanghai nickel has been oscillating at the bottom. There is still short - term support in the Philippine nickel ore market, while the domestic trade benchmark price in Indonesia has slightly declined, and the premium in June has remained stable. The nickel - iron price is still on a downward trend, and due to profit pressure, the procurement intensity of upstream and downstream of nickel - iron is weak with ongoing games. The demand for stainless steel is sluggish in the off - season, some traders are selling at a discount, and the inventory reduction is slow. The nickel salt in the new energy chain has declined due to the impact of nickel prices. Future focus should be on spot trading volume and fundamental drivers [1][4] Summaries by Related Contents Nickel Price Forecast and Management Strategies - **Price Forecast**: The price range forecast for Shanghai nickel is 117,000 - 126,000 yuan/ton, with a current volatility (20 - day rolling) of 15.17% and a historical percentile of 3.2% [3] - **Inventory Management Strategies**: When the product sales price drops and there is a risk of inventory value reduction, it is recommended to short Shanghai nickel futures according to the inventory level to lock in profits and hedge against the risk of spot price decline (using the Shanghai nickel main contract, selling with a 60% hedging ratio, strategy level 2); sell call options (using over - the - counter/on - exchange options, selling with a 50% hedging ratio, strategy level 2); buy forward Shanghai nickel contracts according to the production plan to lock in production costs in advance (using far - month Shanghai nickel contracts, buying according to the procurement plan, strategy level 3) [3] - **Procurement Management Strategies**: When the company has future production procurement needs and is worried about rising raw material prices, it is recommended to sell put options (using on - exchange/over - the - counter options, selling according to the procurement plan, strategy level 1); buy out - of - the - money call options (using on - exchange/over - the - counter options, buying according to the procurement plan, strategy level 3) [3] Market Conditions - **Nickel Market**: The latest value of the Shanghai nickel main - continuous contract is 122,710 yuan/ton (unchanged), the Shanghai nickel consecutive - one contract is 122,200 yuan/ton (up 630 yuan, 0.52%), the Shanghai nickel consecutive - two contract is 122,370 yuan/ton (up 590 yuan, 0.48%), the Shanghai nickel consecutive - three contract is 122,520 yuan/ton (up 530 yuan, 0.48%), and the LME nickel 3M is 15,490 US dollars/ton (up 45 US dollars, 0.43%). The trading volume is 115,890 lots (unchanged), the open interest is 76,246 lots (unchanged), the warehouse receipts are 21,192 tons (up 35 tons, 0.17%), and the basis of the main contract is - 1,690 yuan/ton (up 490 yuan, 40.8%) [6] - **Stainless Steel Market**: The latest value of the stainless - steel main - continuous contract is 12,640 yuan/ton (unchanged), the stainless - steel consecutive - one contract is 12,680 yuan/ton (down 10 yuan, - 0.08%), the stainless - steel consecutive - two contract is 12,710 yuan/ton (up 5 yuan, 0.04%), the stainless - steel consecutive - three contract is 12,670 yuan/ton (down 45 yuan, - 0.35%). The trading volume is 76,193 lots (unchanged), the open interest is 61,030 lots (unchanged), the warehouse receipts are 121,663 tons (down 1,282 tons, - 1.04%), and the basis of the main contract is 690 yuan/ton (up 10 yuan, 1.47%) [7] Inventory Conditions - The domestic social inventory of nickel is 39,375 tons (down 2,178 tons), the LME nickel inventory is 199,092 tons (down 1,014 tons), the stainless - steel social inventory is 983.3 tons (up 15.8 tons), and the nickel pig iron inventory is 31,462 tons (up 1,907.5 tons) [8] Market Influencing Factors - **Positive Factors**: The Philippine government plans to ban nickel ore exports in June 2025, some stainless - steel plants have announced production cuts, and there is still support from the cost of nickel ore [5] - **Negative Factors**: The inventory reduction of stainless steel is slow, stainless steel has entered the traditional off - season of demand, and the demand for precursors in the new energy chain is relatively weak [5]

Core Insights - SOS Limited reported significant growth in commodity trading revenue, which increased to $214.3 million in FY 2024, accounting for 92.6% of total revenue, up from 74.0% in FY 2023 [3][4][8] - The company experienced a decline in cryptocurrency mining revenue, dropping to $9.3 million from $18.9 million in FY 2023, primarily due to a temporary shutdown of its Texas mining facility for upgrades [4][8] - Operating expenses rose to $28.6 million in FY 2024, a 50.6% increase from $18.99 million in FY 2023, driven by higher general and administrative costs and selling expenses [10][12][13] Revenue Breakdown - Commodity trading revenue reached $214.3 million, representing 92.6% of total revenue in FY 2024, compared to $68.4 million (74.0%) in FY 2023 [3][4] - Cryptocurrency mining revenue fell to $9.3 million (4.0%) in FY 2024 from $18.9 million (20.4%) in FY 2023 [4][5] - Hosting service revenue increased to $6.5 million (2.8%) from $2.4 million (2.6%) in FY 2023 [3][5] Cost and Expenses - Costs of revenue surged from $78.2 million in FY 2023 to $224.4 million in FY 2024, an increase of $146.2 million [9] - Selling expenses increased significantly to $2.8 million in FY 2024, a 300% rise from $0.7 million in FY 2023 [11] - General and administrative expenses rose by 64% to $18.1 million, largely due to increased depreciation of mining rigs [12] Financial Performance - The company reported an operating loss of $21.6 million in FY 2024, compared to a loss of $4.8 million in FY 2023 [13] - Basic GAAP EPS was $(0.0299) for FY 2024, slightly worse than $(0.0269) in FY 2023 [13] - Cash and cash equivalents decreased to approximately $239.5 million as of December 31, 2024, down from $279.2 million in the previous year [15] Cash Flow Analysis - Net cash used in operating activities was $(63.6) million for FY 2024, a significant decline from $9.7 million generated in FY 2023 [19] - The net cash generated from financing activities increased to $24.6 million in FY 2024, up from $17.6 million in FY 2023 [20] - The company incurred a cash outflow of $69.3 million from changes in other receivables in FY 2024, compared to $25.2 million in FY 2023 [25]

Core Viewpoint - Blue Hat Interactive Entertainment Technology has undergone a significant strategic transformation, focusing on the gold industry, which has resulted in a substantial decrease in revenues but notable improvements in asset growth and operational efficiency [1][2]. Financial Performance - Total revenues decreased by 74.59% to $18.72 million in 2024 from $73.69 million in 2023 due to the strategic business transformation [1]. - Total assets grew by 53%, with current assets increasing by 78%, primarily driven by the acquisition of 1 ton of physical gold for approximately $66.49 million [1]. - The net loss was reduced by 56%, from $21.72 million in 2023 to $9.52 million in 2024, indicating improved operational quality [1]. - Gross margin increased from 1.6% in 2023 to 8.3% in 2024, reflecting a significant breakthrough in profit quality [2]. - Net cash outflow from operating activities decreased by 91%, from $9.77 million to $880,000, showcasing enhanced operational efficiency [2]. Strategic Focus - In 2025, the company aims to deepen its presence in the gold industry with three strategic priorities: managing and potentially expanding physical gold reserves, integrating supply chain resources, and developing a digital gold trading platform [3]. - The company seeks to create a transparent and efficient paradigm for gold trading through technology empowerment and business model innovation [3]. Company Background - Blue Hat was previously involved in communication services and AR interactive entertainment but is now transitioning to become a leading intelligent commodity trader, focusing on commodity trading [4].