CSB stated on an interactive platform that its main business covers the R&D, production, and sales of self-lubricating bearings and high-performance polymers, with products spanning automobiles, construction machinery, clean energy, embodied AI, and other fields. As a Tier 2 or Tier 3 supplier to automotive OEMs, the company has already supplied products used in Tesla vehicles; in the field of embodied AI parts, the company has engaged in business and technical cooperation with multiple enterprises in China's embodied AI industry chain.

According to the National Bureau of Statistics (NBS), the manufacturing PMI stood at 49.2% in July, down 1.1 percentage points MoM, with the overall sentiment pulling back somewhat. The non-manufacturing business activity index for July was 49.0%, down 1.2 percentage points MoM, indicating a lower level of non-manufacturing activity compared to the previous month. The composite PMI output index for July was 49.3%, down 1.3 percentage points MoM, signalling that the overall pace of business activity among China's enterprises slowed down MoM. Huo Lihui, chief statistician at the NBS Service Industry Survey Centre, noted that the manufacturing PMI pulled back in July while high-tech manufacturing continued to expand. The manufacturing PMI fell to 49.2%, affected by factors including a relatively high base from the previous period of rapid growth in manufacturing and the traditional production off-season in some manufacturing sectors. The equipment manufacturing and high-tech manufacturing sectors continued to play a supportive and leading role, with their respective PMIs at 51.4% and 53.3%, significantly higher than the overall manufacturing figure and maintaining relatively rapid expansion, steering manufacturing development towards higher quality and innovation. The PMIs for the consumer goods industry and the high-energy-consuming industry were 47.8% and 47.0%, down 2.4 and 0.1 percentage points MoM, reflecting a pullback in sentiment. China PMI Performance in July 2026 I. China Manufacturing PMI Performance In July, the manufacturing PMI stood at 49.2%, down 1.1 percentage points MoM, with sentiment pulling back somewhat. By enterprise size, the PMIs for large, medium, and small enterprises were 49.5%, 49.7%, and 47.4%, respectively, down 1.2, 0.8, and 0.8 percentage points MoM, all below the threshold. Among the five sub-indices that make up the manufacturing PMI, the production index, new orders index, raw material inventory index, employment index, and supplier delivery time index were all below the threshold. The production index was 49.9%, down 1.5 percentage points MoM, indicating that manufacturing production activity experienced some slowdown. The new orders index was 48.5%, down 2.7 percentage points MoM, pointing to a pullback in manufacturing market demand. The raw material inventory index was 48.3%, down 0.1 percentage points MoM, suggesting that inventories of major raw materials in the manufacturing sector continued to decline. The employment index was 49.0%, up 0.5 percentage points MoM, indicating that the labour market sentiment in manufacturing enterprises rebounded somewhat. The supplier delivery time index was 49.5%, down 0.4 percentage points MoM, signalling that delivery times for raw material suppliers in manufacturing lengthened compared to the previous month. II. China Non-Manufacturing PMI Performance In July, the non-manufacturing business activity index was 49.0%, down 1.2 percentage points MoM, with non-manufacturing sentiment lower than in the previous month. By sector, the construction business activity index was 47.0%, down 2.0 percentage points MoM, and the services business activity index was 49.3%, down 1.1 percentage points MoM. Within the services sector, business activity indices for postal services, telecommunications, broadcasting and satellite transmission services, and culture, sports and entertainment were all in the relatively high sentiment territory above 55.0%. By contrast, business activity indices for capital market services and real estate were below the threshold. The new orders index was 44.4%, down 3.6 percentage points MoM, indicating a pullback in market demand sentiment for non-manufacturing. By sector, the new orders index for construction was 40.1%, down 6.2 percentage points MoM, and the new orders index for services was 45.2%, down 3.2 percentage points MoM. The input price index was 49.7%, unchanged from the previous month but still below the threshold, indicating that the overall level of input prices used by non-manufacturing enterprises for business activities continued to decline. By sector, the input price index for construction was 48.7%, down 1.7 percentage points MoM, and the input price index for services was 49.9%, up 0.3 percentage points MoM. The selling price index was 47.9%, down 0.5 percentage points MoM, suggesting that the overall decline in selling prices for non-manufacturing enterprises widened somewhat. By sector, the selling price index for construction was 47.7%, down 2.1 percentage points MoM, and the selling price index for services was 47.9%, down 0.3 percentage points MoM. The employment index was 45.4%, down 0.4 percentage points MoM, indicating that labour market sentiment in non-manufacturing enterprises pulled back somewhat. By sector, the employment index for construction was 40.9%, down 1.4 percentage points MoM, and the employment index for services was 46.2%, down 0.2 percentage points MoM. The business activity expectations index was 55.4%, up 0.1 percentage points MoM, indicating that non-manufacturing enterprises' confidence in market development strengthened. By sector, the business activity expectations index for construction was 51.8%, up 0.7 percentage points MoM, and the business activity expectations index for services was 56.0%, unchanged from the previous month. III. China Composite PMI Output Index Performance In July, the composite PMI output index was 49.3%, down 1.3 percentage points MoM, indicating that the pace of business activity among China's enterprises slowed down MoM. III. China Composite PMI Output Index Performance In June, the composite PMI output index was 50.6%, up 0.1 percentage points MoM, indicating that the overall expansion of business activity among China's enterprises slightly accelerated. China's PMI Pulled Back in July — Interpretation of China’s PMI for July 2026 by Huo Lihui, Chief Statistician at the NBS Service Industry Survey Centre On 31 July 2026, the NBS Service Industry Survey Centre and the China Federation of Logistics and Purchasing released China's PMI. Huo Lihui, chief statistician at the NBS Service Industry Survey Centre, provided the following interpretation. In July, the manufacturing PMI, non-manufacturing business activity index, and composite PMI output index stood at 49.2%, 49.0%, and 49.3%, respectively, down 1.1, 1.2, and 1.3 percentage points MoM. Sentiment was somewhat lower than in the previous month. I. Manufacturing PMI Pulled Back, While High-Tech Manufacturing Continued to Expand In July, the manufacturing PMI fell to 49.2%, affected by factors such as a relatively high base from the earlier period of rapid manufacturing growth and the traditional production off-season in some manufacturing sectors. (1) The equipment manufacturing and high-tech manufacturing sectors continued to play a supportive and leading role. Their PMIs were 51.4% and 53.3%, respectively, significantly higher than the overall manufacturing figure, maintaining relatively rapid expansion and steering manufacturing development towards higher quality and innovation. The PMIs for the consumer goods industry and the high-energy-consuming industry were 47.8% and 47.0%, down 2.4 and 0.1 percentage points MoM, reflecting a pullback in sentiment. (2) Production and demand in some equipment manufacturing industries grew relatively fast. The manufacturing production index and new orders index were 49.9% and 48.5%, respectively, down 1.5 and 2.7 percentage points MoM, indicating that both manufacturing enterprise production and market demand pulled back. By industry, the production and new orders indices for general equipment and computer, communication and other electronic equipment were both above 53.0%, pointing to high market activity and relatively fast growth in production and demand. In contrast, the production and new orders indices for non-metallic mineral products, ferrous metal smelting and rolling processing, and automobiles were below the threshold, suggesting weak supply-demand sentiment. (3) The price indices declined further. The main raw material purchase price index and the EXW price index were 53.2% and 47.8%, respectively, and have fallen for four consecutive months, influenced by recent fluctuations in some commodity prices. Among these, both price indices for non-ferrous metal smelting and rolling processing were below 45.0%. Due to significant price level fluctuations, enterprises' purchase willingness weakened, and the procurement volume index fell to 49.4% this month. (4) Market expectations remained stable. The manufacturing production and business operation expectations index was 54.1%, reflecting continued overall optimism among enterprises regarding market development. By industry, the expectations indices for food, beverage, and refined tea, as well as railway, shipbuilding, aerospace and other equipment, rose above 60.0%, indicating that relevant enterprises' confidence in near-term industry development strengthened. II. Non-Manufacturing Business Activity Index Declined Somewhat, While the Culture and Tourism Sector Remained Relatively Active In July, the non-manufacturing business activity index was 49.0%, down 1.2 percentage points MoM, with non-manufacturing sentiment lower than in the previous month. (1) Sentiment in the culture and tourism sector rebounded. The services business activity index was 49.3%, down 1.1 percentage points MoM, indicating a pullback in services market activity. By industry, driven by summer consumption, residents' leisure, entertainment, and travel activities increased, with the business activity indices for air transport, accommodation, and culture, sports and entertainment rebounding noticeably MoM, as relevant enterprises' business volumes grew relatively fast. The business activity indices for wholesale and monetary and financial services recorded relatively large declines, representing the main factors behind the fall in overall services sector sentiment this month. Meanwhile, the business activity indices for capital market services and real estate were below the threshold. The services business activity expectations index was 56.0%, unchanged from the previous month, pointing to relatively stable confidence among enterprises regarding near-term market development. (2) Construction sector sentiment headed downwards. Affected by unfavourable factors such as recent high temperatures, heavy rainfall, and flooding in some regions, construction progress slowed down somewhat, and the business activity index was 47.0%, down 2.0 percentage points MoM. The construction business activity expectations index was 51.8%, up 0.7 percentage points MoM, indicating that enterprises' confidence in near-term industry development strengthened somewhat. III. Composite PMI Output Index Below the Threshold In July, the composite PMI output index was 49.3%, down 1.3 percentage points MoM, with the pace of business activity among Chinese enterprises slowing down MoM. The manufacturing production index and the non-manufacturing business activity index, which together form the composite PMI output index, were 49.9% and 49.0%, respectively.

Ministry of Commerce: "Insufficient domestic demand in China causes overcapacity" does not reflect facts

Leader in Magnesium Alloy Sheet Metal Parts Castings, Lightweight Replacement for Sheet Metal Parts, Design Simulation, 7-Day Rapid Prototyping, Project Management

SMM, July 20: Metals market: As of the midday close, base metals on the domestic market showed mixed performance. SHFE tin rose 1.65%. SHFE copper edged up 0.29%, while SHFE aluminum fell 0.32%. SHFE lead edged up, while SHFE zinc fell 0.63%. SHFE nickel fell 0.13%. In addition, the most-traded cast aluminum futures contract fell 0.3%, while the most-traded alumina contract rose 1.23%. The most-traded lithium carbonate contract fell 1.69%. The most-traded silicon metal contract fell 0.72%. The most-traded polysilicon futures contract fell 1.26%. Ferrous metals mostly fell. Iron ore fell 0.33%, while rebar and hot-rolled coil (HRC) fell 0.45% and 0.54%, respectively. Stainless steel fell 0.27%. Coke and coking coal: the most-traded coking coal contract rose 0.2%, while the most-traded coke contract fell 0.99%. Overseas base metals market, as of 11:45, LME metals mostly rose. LME copper rose 0.2%, LME aluminum fell 0.16%, and LME lead fell 0.21%. LME zinc and LME tin both rose 0.31%. LME nickel rose 0.21%. Precious metals, as of 11:45, COMEX gold rose 0.2%, and COMEX silver rose 1.85%. Domestic precious metals market: SHFE gold rose 0.7%; the most-traded SHFE silver contract rose 2.47%. Additionally, as of the midday close, the most-traded platinum futures contract fell 0.33%, and the most-traded palladium futures contract fell 0.84%. As of the midday close, the most-traded containerized freight (European route) contract rose 6.4% to 2,809 points. As of 11:45 on July 20, midday market overview for some futures: Spot Prices and Fundamentals Copper: Today, spot #1 copper cathode in Guangdong against the front-month contract: high-quality copper was quoted at 170 yuan/mt, up 50 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 80 yuan/mt, up 30 yuan/mt from the previous trading day; and SX-EW copper was quoted at a premium of 20 yuan/mt, up 30 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 104,180 yuan/mt, up 350 yuan/mt from the previous trading day, and the average price of SX-EW copper was 104,075 yuan/mt, up 340 yuan/mt from the previous trading day. Spot market: Guangdong inventories saw a significant decline after the weekend, mainly driven by a sharp increase in warehouse withdrawals... Macro Front Domestic front: [MIIT: Continuously Implement the New Round of Work Plans for Stable Growth in Sectors Such as Machinery and Automobiles, While Expanding High-Quality Supply and Effective Demand Across the Board] The State Council Information Office held a press conference to present the industrial and information technology development situation in H1 2026. Wang Weiming, chief engineer of the Ministry of Industry and Information Technology, stated that in H1, the export delivery value of the equipment industry rose 18.2% YoY, contributing nearly 50% to the growth of industrial exports. Next, MIIT will make every effort to promote the transformation and upgrading of the equipment industry. [MIIT: From January to May, new shipbuilding orders accounted for 81.2% of the global total, firmly ranking first in global market share] At a press conference held by the State Council Information Office, Wang Weiming, Chief Engineer of the Ministry of Industry and Information Technology, said that in the ship and offshore engineering equipment sector, from January to May, China’s new shipbuilding orders accounted for 81.2% of the global total, firmly ranking first in global market share. [MIIT: To issue guidelines for building a systematic computing power standards framework, and promote standards such as market-based pricing for computing power] The State Council Information Office held a press conference to brief on industrial and information technology development in 2026 H1. Xie Cun, spokesperson for the Ministry of Industry and Information Technology and Director-General of the Information and Communications Development Department, said that next, MIIT will continue to follow a systematic work approach focused on points, chains, networks, surfaces, and systems, optimize the deployment of computing power infrastructure resources, build interconnected and interoperable computing power periods, and improve the efficiency of computing power resource utilization. In terms of strengthening efforts at the “point” level, it will optimize the supply-side deployment of computing power resources, coordinate factors such as industrial development and energy supply, promote the development of intelligent computing clusters and coordinated development between computing power and electricity, create a tiered computing power layout, and strengthen overall monitoring of computing power. In addition, it will issue guidelines for building a systematic computing power standards framework, and promote standards such as evaluation of computing power service capabilities and market-based pricing for computing power. [Unchanged for the 14th consecutive month! July LPR quotes released: 3.5% for 5-year and above, 3% for 1-year] China’s July Loan Prime Rate (LPR) was released on July 20, with both the 1-year and 5-year and above LPR left unchanged. An announcement authorized by the PBOC and released by the National Interbank Funding Center showed that the LPR on July 20, 2026 was: 3.0% for the 1-year LPR and 3.5% for the 5-year and above LPR. The above LPRs are valid until the next LPR release. The 7-day reverse repo rate, the main policy rate, has remained unchanged for 14 consecutive months since it was cut in May 2025; therefore, the pricing basis for this month’s LPR quotes did not change. The last LPR adjustment was in May 2025, when both the 1-year and 5-year and above LPR were lowered by 10 basis points. [PBOC net injected 174.5 billion yuan into the open market today] The PBOC conducted 398.5 billion yuan of 7-day reverse repo operations today at an operating rate of 1.4%, unchanged from the previous level. Reverse repos worth 224 billion yuan matured today. US dollar: As of 11:45, the US dollar index fell 0.04% to 100.71. Oil prices have risen by over 20% this month, reigniting inflation concerns. Fed Chairman Warsh has made it clear that curbing inflation is the top priority. The market is now focused on the upcoming July PMI data this week to judge whether the resilience of the US economy is sufficient to support the Fed's interest rate hikes in September or October. (Wall Street View) According to CME “FedWatch”: the probability of the Fed keeping rates unchanged in July is 85.6%, with a 14.4% probability of a cumulative 25bp hike. The probability of no change in September is 38.5%, with a 53.5% probability of a cumulative 25bp hike and a 7.9% probability of a cumulative 50bp hike. (Jinshi Data APP) Data: Today will see the release of Canada June CPI MoM, US June CB Leading Index MoM, China June year-to-date installed power generation capacity, China June year-to-date installed power generation capacity yearly rate, and more. Crude Oil: As of 11:45 am, oil prices on both exchanges extended gains from the previous trading day, with WTI up 2.24% and Brent up 2.41%. The US-Iran conflict escalated further over the weekend, pushing oil prices higher. According to CCTV News reports, on July 19 local time, US Energy Secretary Wright stated that military operations against Iran will continue until President Trump achieves his military objectives. According to CCTV News, Iranian sources said on the 19th that navigational traffic through the Strait of Hormuz has dropped to zero, and the strait will remain closed as long as the US continues its provocative actions. Furthermore, Morgan Stanley pointed out that Europe faces a diesel supply crunch as a series of significant supply challenges coincide, with refining margins in the region hitting record highs while inventories continue to decline. “The current situation is indeed very tight,” analysts including Martin Ratz said in a July 19 report. “Our supply-demand model shows that European diesel inventories will fall to multi-year lows by year-end.” The analysts stated, “The true bottleneck in the oil system at the moment lies in refining, not crude oil,” noting that some African oil cargoes remain unsold and forward prices in certain parts of the market are trending bearish. “At the center of all this is the diesel market, particularly in Europe.” (Jinshi Data APP) Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ► ►

Price Review for June: In June, the monthly average price of non-oriented silicon steel trended downward, probing the bottom. Supply-demand side, the market shifted from a slight balance to a mild undersupply, with fundamentals improving marginally. The oversupply that had been weighing on prices gradually eased, providing support for prices. Spot prices performed stronger than expected, edging down only slightly. As a transitional month between the off-season and peak season, June saw the supply-demand pattern improve. Fundamentals Analysis: The July production schedule for domestic non-oriented silicon steel is planned to decline further. Compared with the same period in previous years, the July 2026 schedule was lower than that of July 2025. In terms of grade structure, the proportion of NEV grades in the July schedule is expected to rebound to 15%, high grades at 19%, and low and mid-end grades pull back to 66%. Steel mills continue to adjust their product mix, leading to corresponding reductions in low-end conventional grades. Overall scheduled production volume continues to shrink, but supply-side pressure persists. Production levels for NEV and high-grade materials are maintained, while low and mid-end grades are significantly reduced, optimizing the supply structure to some extent and supporting price resilience. Downstream demand for non-oriented silicon steel in May showed structural divergence. Total silicon steel consumption in the home appliance sector edged down MoM, with air conditioners remaining the core demand driver. The automobile sector demand was strong, with silicon steel consumption climbing to a high for the period. Within this, passenger NEVs were the biggest support for non-oriented silicon steel demand in the auto sector. Overall, traditional home appliance demand weakened marginally, while NEV demand continued to strengthen, gradually shifting the demand center toward the auto track. This structurally benefited high-grade and NEV-grade non-oriented silicon steel. July Price Outlook: Looking ahead to July 2026, on the supply side, China's non-oriented silicon steel production schedule is planned to decline further, primarily in low and mid-end grades. On one hand, the off-season impact is becoming more pronounced: downstream demand is weak, purchasing enthusiasm has fallen, weighing on production willingness. On the other hand, leading producers such as Baowu and Shougang kept their July base prices unchanged, prioritizing price stability. However, market sentiment is bearish and prices are more likely to fall than rise. Most producers are operating at a loss and implementing voluntary production cuts. On the demand side, in the home appliance industry, producers slowed their production pace, with orders declining MoM. The "618" shopping festival did not significantly stimulate orders. Affected by low demand, high inventory, and high costs, some enterprises lowered their production schedules ahead of time. Additionally, new energy efficiency standards for certain home appliances were introduced, limiting production due to product iteration. In the automobile industry, automakers mostly maintained normal production pace, with some increasing output this month to meet mid-year targets. However, sales pressure remained due to moderate effects of the "618" promotions and policy support. Breaking it down, NEVs remained the main sales driver this month, while orders for internal combustion engine vehicles did not improve significantly. Exports were mainly directed to Russia, South America, and Southeast Asia. Total annual export volume for the industry is expected to reach 12 million units. Cost side, with steel mill profits continuing to shrink and local environmental protection-driven production restrictions becoming normalized, hot metal production is expected to decline further. However, as the impact of the off-season expands, the July average hot-rolled coil price is expected to decline further MoM from June, with the decrease narrowing. Overall, SMM expects that mid- and low-grade non-oriented silicon steel prices in July 2026 will drift lower as a whole, with room for price declines. Data Source Statement: (All data in this report, other than publicly available information, are based on publicly available information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, NBS data, customs import and export data, and various data released by major associations and institutions), market communication, and SMM's internal database models. The research team has conducted comprehensive analysis and made reasonable inferences, which are for reference only and do not constitute decision-making advice. SMM reserves the right of final interpretation of the terms of this statement and the right to adjust and modify the content of the statement in accordance with actual conditions.