SMM reported on August 20, 2026: In the Guangdong region, spot premiums this week showed a bottoming-out trend. On Monday, which coincided with the delivery day, spot cargo traded at a large discount amid a wide price spread between futures contracts. After the contract rollover, premiums rebounded significantly, but end-use consumption remained weak, and some suppliers were eager to sell, actively lowering premiums, causing premiums to decline again. As of Thursday, high-quality copper was quoted at a premium of 180 yuan/mt, up 160 yuan/mt from last Thursday; standard-quality copper at 110 yuan/mt, up 230 yuan/mt; and SX-EW copper at 40 yuan/mt, up 240 yuan/mt. On Thursday, the price spread between Shanghai and Guangdong for standard-quality copper premiums was 150 yuan/mt higher in Shanghai, still not large enough to trigger cross-regional cargo transfers this week. According to SMM, as of Thursday, total inventory in Guangdong warehouses stood at 20,400 mt, up 5,000 mt from last Thursday; combined warrants totaled 9,400 mt, up 4,200 mt from last Thursday. Suppliers actively shipped to delivery warehouses before the contract rollover due to the wide price spread. Specifically: this week's warehouse arrivals were 18,700 mt/week, up 6,800 mt/week from last week, exceeding the annual average of 14,000 mt/week, mainly due to suppliers actively shipping to delivery warehouses before delivery. Warehouse withdrawals were 13,700 mt/week, down 1,700 mt/week from last week, slightly below the annual average of 14,200 mt/week. After the contract rollover and with copper prices still at high levels, downstream restocking enthusiasm was moderate. Looking ahead to next week, it is learned that supply from domestic smelters will decrease due to active shipping to delivery warehouses last week, while downstream consumption is expected to gradually recover. Therefore, inventory will decline next week, and spot premiums are expected to consolidate higher. (The above information is based on market collection and comprehensive assessment by the Shanghai Metals Market research team. The information provided herein is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make cautious decisions and not replace their own independent judgment with this. Any decisions made by clients are unrelated to Shanghai Metals Market.)

[Zhang Xue Visits Ampace Today, Says Zhang Xue Electric Motorcycle Could Enter Mass Production as Early as Next Year] ZXMOTO founder Zhang Xue visited Ampace for a field trip and exchange on August 20. Zhang Xue stated that the Zhang Xue electric motorcycle could enter mass production as early as next year. In May of this year, Ampace and ZXMOTO had already begun discussions on specific collaboration plans. Ampace is a lithium battery enterprise jointly established by CATL and ATL.

SMM, August 20 - PV aluminum extrusion: This week, operating rates at PV frame producers in the survey sample showed a modest uptick. The US finalized its new import adjustment rules for polysilicon and its derivatives in early August, with related tariffs set to take effect in December. Driven by expectations of front-loaded shipments during the policy buffer window, marginal growth emerged in export orders from China-based PV module producers destined for the US, indirectly boosting demand for upstream PV frame matching. However, at the current stage, PV frame producers reported sufficient orders on hand, with capacity already at a relatively high level. Coupled with low processing fees and squeezed profit margins in the industry, producers adopted a cautious attitude toward taking new external orders, limiting further upside room for operating rates. Additionally, some frame producers noted that the recent rebound in raw material prices such as polysilicon has increased cost pressure on module production, raising concerns that PV module producers may lower production schedules due to profit considerations, thereby dragging frame demand lower. Going forward, the focus should be on tracking monthly production schedule adjustments of downstream PV modules and the sustainability of ex-China export orders. Overall, in the near term, operating rates at China's PV frame producers are expected to consolidate on a strong note. Raw material prices: During the period (Aug 17, 2026 - Aug 20, 2026), the SMM A00 weekly average price stood at 23,810 yuan/mt, down 1.4% from the prior weekly average. Overall, macro sentiment fluctuated, frequently disrupting aluminum prices in China and overseas. On the fundamentals side, aluminum ingot inventory continued its destocking trend, providing bottom support for aluminum prices. However, the recovery of the domestic-outside China price ratio, coupled with the digestion of orders on hand, suggested export demand would gradually weaken. Domestic terminal demand performed modestly at best, leading to some market concerns about peak-season demand. In the near term, aluminum prices are expected to consolidate on a subdued note. The most-traded SHFE aluminum contract is projected to trade in a range of 23,200–24,000 yuan/mt next week, while LME aluminum is expected to range between 3,150–3,250 $/mt. Going forward, attention should be paid to the demand trend of China's aluminum semis exports.

According to Chinese customs data, China's lithium hydroxide imports in July 2026 reached 8,322.16 tonnes, up 89.1% month-over-month from 4,400.35 tonnes in June; exports totaled 6,419.51 tonnes, up 6.7% from 6,018 tonnes in June. For the month, China turned into a net importer of lithium hydroxide. On the import side, the primary source in July was Indonesia, with imports of 4,444.37 tonnes accounting for 53.4% of the total, mainly attributed to the concentrated arrival of previously accumulated shipments. Other sources included South Korea (1,361.97 tonnes), domestic bonded warehouse zones in China (1,130.11 tonnes), Australia (690.89 tonnes), Argentina (399.74 tonnes), and Germany (295 tonnes). Imports from Indonesia surged nearly fivefold month-over-month, making it the largest incremental source. On the export side, China's lithium hydroxide exports were mainly destined for South Korea and Japan. Shipments to South Korea reached 4,783.69 tonnes, accounting for 74.5% of total exports; exports to Japan totaled 1,304.00 tonnes, representing 20.3%; and shipments to the Netherlands stood at 227.01 tonnes. Other destinations included Thailand (38 tonnes), Brazil (20 tonnes), and Singapore (20 tonnes), all in smaller quantities. In summary, on the import front, the large influx of overseas lithium hydroxide has increased domestic market availability over the past two months, significantly capping the price upside for July–August. On the export front, modest recovery in overseas demand in recent months has kept exports above 6,000 tonnes per month, maintaining a relatively high level.

According to the latest customs data, China imported 425,600 tonnes of zinc concentrate (physical tonnes) in July 2026, up 17.29% month on month, or 62,700 tonnes, but down 15.12% year on year. Total zinc concentrate imports reached 3.1872 million tonnes in January-July, up 5% year on year.

[Imported Zinc Concentrates Rebounded 17% MoM in July! Can Imports Rise in August?] According to the latest customs data, in July 2026, imported zinc concentrates were 425,600 mt in physical content, up 17.29% MoM from June (62,700 mt in physical content), down 15.12% YoY. Cumulative zinc concentrate imports from January to July totaled 3.1872 million mt in physical content, up 5% YoY cumulatively...