SMM August 6 News: Germanium ingot in the spot market, driven by tight raw material supply, saw its price edge up slightly; leading tungsten enterprises slightly raised their long-term contract quotations. Meanwhile, the US Department of Commerce's Bureau of Industry and Security (BIS) on August 6, 2026, formally published in the Federal Register the interim final rule "Allocation Order and Additional Requirements for Recyclable Critical Minerals and Materials," under the Defense Production Act (DPA) and a presidential determination on July 30, 2026, imposing mandatory domestic sales controls on two types of critical recycled minerals: shredded tungsten scrap and lithium battery black mass. The rule will take effect on August 27, 2026, and remain valid until August 27, 2027, intensifying concerns about tight tungsten raw material supply outside China. As of now, activity in domestic spot tungsten transactions has shown some rebound, and the transaction center for spot tungsten ore orders has edged up slightly. Secondary market sentiment heating up boosted the minor metal sector, which collectively strengthened. As of the close on August 6, the minor metals sector rose by 2.08%. In terms of individual stocks: Yunnan Germanium surged over 8%, while China Tungsten High-Tech, Xianglu Tungsten, Xiamen Tungsten, Haotong Technology, and Orient Tantalum led the gains. Spot Market Germanium Order to View SMM Historical Metal Spot Prices Germanium is a strategic rare metal with a highly concentrated global supply structure. The ongoing implementation of domestic resource controls and frequent geopolitical disruptions outside China, combined with the normal enforcement of export control policies, have collectively reinforced supply tightening expectations. Currently, low-priced supply in the market is scarce, and downstream just-in-time procurement must accept high-priced materials, causing germanium ingot prices to edge up on August 6. Meanwhile, overall stable demand from end-use industries has provided support for the continuous rise in germanium prices this year. Tungsten Order to View SMM Historical Metal Spot Price Trends Currently, the tungsten ore market is operating steadily. A large tungsten enterprise slightly raised its long-term contract quotation, providing some support to market confidence. Meanwhile, the US Department of Commerce's Bureau of Industry and Security (BIS) on August 6, 2026, formally published in the Federal Register the interim final rule "Allocation Order and Additional Requirements for Recyclable Critical Minerals and Materials," under the Defense Production Act (DPA) and a presidential determination on July 30, 2026, imposing mandatory domestic sales controls on two types of critical recycled minerals: shredded tungsten scrap and lithium battery black mass. The rule will take effect on August 27, 2026, and remain valid until August 27, 2027, which has escalated market concerns about tight tungsten raw material supply outside China. As of now, activity in domestic spot tungsten transactions has shown some rebound, and the transaction center for spot tungsten ore orders has edged up slightly. On the domestic front, the market is reassessing the impact of the "Opinions of the National Mine Safety Administration on Standardizing Construction Teams for Metal and Non-Metallic Mine Mining (Stripping)" on the non-coal mining industry. The document requires that by May 1, 2027, for underground mines and by May 1, 2028, for open-pit mines, one of two options must be chosen: ① establish an in-house mining team; ② engage in compliant integrated contracting; fragmentary subcontracting and layered transfers are prohibited, and labor dispatch is strictly banned. Mines failing to complete rectification by the deadline will be ordered to suspend production for rectification. Domestic tungsten mines are primarily underground, with the vast majority of wolframite extracted through underground mining, and some scheelite extracted through both open-pit and underground methods. In tungsten-rich regions such as Jiangxi and Hunan, a large number of small and medium tungsten mines have long been highly dependent on external contracted mining teams. The implementation of the new regulation will impose tangible constraints on tungsten ore supply, production costs, and the operations of small and medium mines. Recently, the spot tungsten ore market has started to become more active, with traders actively entering the market, while downstream smelters continue to maintain a wait-and-see sentiment. Overall, market sentiment has eased amid frequent mining policies and intensive safety inspections in Yunnan, Jiangxi, and Henan. Supply-side disruptions have increased, and if demand shows mild entry, the tungsten market is expected to see a turnaround. Institutional Voices Guojin Securities research report believes: Tantalum: Global tantalum resource supply is highly concentrated and frequently disrupted, while development of AI servers and advanced semiconductor manufacturing is expected to continue driving demand growth in tantalum capacitors, tantalum targets, and other areas. Against the backdrop of ongoing supply constraints and gradual demand release, the tantalum market is expected to shift from supply-driven to supply-demand resonance, pushing the tantalum price center further upward. Related equities: Oriental Tantalum, Guotai Group, Ximei Resources, Xinjinlu, Jiangwu Equipment. Minmetals Securities research report points out: Germanium accounts for 60% of applications in optical communications and satellite photovoltaics, making it an "AI computing power + space energy" metal. With its excellent refractive index control capability and radiation resistance, germanium has become a critical material for AI data center optical interconnects and low-earth orbit satellite photovoltaic systems. Looking at changes in demand structure, from 2020 to 2026, downstream germanium consumption grew from 160 mt to 240 mt, with optical communications' share rising to 40% and satellite photovoltaics' share to 20%, together accounting for 60% of total downstream demand. It is expected that 90% of demand growth contributions in 2027 will come from two high-boom sectors: AI hardware and satellite photovoltaics. Caitong Securities research report shows: With the explosive demand for AI computing power, the market size of indium phosphide, used as a chip substrate material, will continue to expand. Indium resources are scarce and subject to policy restrictions, and product prices have entered an upward channel. High-purity red phosphorus is a critically important semiconductor base material with high purification technology barriers. Against the backdrop of accelerated AI application deployment driving related infrastructure construction, the indium phosphide substrate industry chain is expected to see dual opportunities from demand growth and domestic substitution. Investors are advised to follow related enterprises with resource and technology advantages in indium phosphide, indium, and high-purity red phosphorus. Datong Securities research report shows that minor metals have embarked on an independent upward trend, with supply tightening and strategic attributes driving a valuation re-rating. The rare earth sector is front-running expectations of new regulations, with Myanmar ore imports disrupted and Pr-Nd oxide seeing tight spot supply and soaring prices. In tungsten and antimony, declining ore grades combined with environmental protection-driven production restrictions have widened supply gaps, while demand from photovoltaics and cemented carbides remains firm even in the off-season, with inventories at low levels. AI computing power and the communications industry are driving demand for gallium and germanium, and coupled with export control policies, overseas stockpiling has widened price spreads between Chinese and overseas markets. Scarce resources and financial attributes resonate, and the sector continues to attract capital favor.

SMM August 6 News: Metal market: Overnight, domestic base metals rose broadly. SHFE copper rose 0.56%. SHFE aluminum rose 0.29%. SHFE lead was flat at 15,640 yuan/mt. SHFE zinc rose 1.6%. SHFE tin rose 1.7%. SHFE nickel fell 0.17%. Additionally, the most-traded alumina futures rose 2.56%, and the most-traded casting aluminum contract rose 0.13%. Overnight, ferrous metals mostly rose. Stainless steel fell 0.72%. Iron ore rose 1.85%. Rebar rose 0.74%. Hot-rolled coil rose 0.53%. Coking coal and coke: The most-traded coking coal contract rose 0.94%, and the most-traded coke contract rose 0.56%. Overnight, in the overseas market, LME base metals rose broadly. LME copper rose 0.75%. LME aluminum rose 0.81%. LME lead was flat at $1,890/mt. LME zinc rose 2.31%. LME tin rose 2.1%. LME nickel edged down 0.06%. Overnight precious metals : COMEX gold rose 3.74%, and COMEX silver rose 3.34%. Overnight, SHFE gold most-traded rose 3.58%, and SHFE silver most-traded rose 3.72%. OANDA Senior Market Analyst Kelvin Wong said, "The link between gold and oil prices remains, as oil prices have a huge impact on inflationary pressures in the global economy. If we can see a clear roadmap for further de-escalation of the (Middle East) situation, gold prices could continue to rise." Traders now expect a 59% probability of a Fed rate hike at the September 15-16 policy meeting, down from 67% a day earlier. (Jin10 Data APP) Overnight closing quotes as of 7:11 on August 6: Macro front Domestic: [Foreign Ministry: Firmly Opposes US Abusing National Power to Unreasonably Suppress Chinese Enterprises] In response to reports that the US is drafting regulations to suppress Chinese enterprises, Foreign Ministry spokesperson Lin Jian stated on the 5th when answering a reporter's question that China firmly opposes the US abusing its national power to unreasonably suppress Chinese enterprises. A reporter asked: It is reported that the US is drafting regulations to ban the import of China-made new-type optical transceiver modules and is preparing to impose additional tariffs and set a price floor on polysilicon and related products. Given the US's previous sanctions and restrictions on Huawei, how does China assess the planned US actions? What specific measures will be taken to protect the rights and interests of Chinese enterprises? Lin Jian said, China firmly opposes the US overstretching the concept of national security and abusing its national power to unreasonably suppress Chinese enterprises. Protectionism cannot boost US competitiveness. The US's actions severely hinder normal economic and trade exchanges between China and the US and are not in the interests of any party, including US enterprises and consumers. China will continue to firmly safeguard the legitimate and lawful rights and interests of Chinese enterprises. (Xinhua News Agency) [Guangxi: Trade-in Policy Boosts Smart Home Appliance Consumption] With the implementation of national subsidies combined with local expansion policies coinciding with the summer consumption peak season, the Guangxi home appliance market welcomed a new round of consumption boom. During visits, it was found that the trade-in policy continued to gain momentum, smart home appliances accelerated their entry into millions of households, and consumption upgrading trends were evident. Since the beginning of this year, Guangxi's consumer goods trade-in program has subsidized 2.061 million units of digital and smart products, 95,000 vehicles, and 2.553 million units of home appliances, with total subsidy funds of 2.96 billion yuan, boosting commodity sales of 26.7 billion yuan. Among these, the proportion of county-level participants reached 45.2%, and the proportion of subsidy amount enjoyed in rural areas accounted for 37.1%, indicating rural consumption potential was being rapidly released. Hong Tao, director of the Institute of Business Economics at Beijing Technology and Business University, stated that the trade-in policy, on the basis of continued policy support, has upgraded to a "demand + experience" dual-drive. The national, local, and enterprise levels have established a triple subsidy linkage system, reducing household replacement costs and stimulating consumption vitality while helping the whole society save energy and reduce carbon, promoting the popularization of green and low-carbon lifestyles. (Xinhua News Agency) [CAAM Initiates Establishment of Autonomous Driving Industry Development Joint Committee] Hosted by CAAM, the 16th China Auto Forum was held in Jiading, Shanghai. During the forum, CAAM officially announced the initiation of the establishment of the "Autonomous Driving Industry Development Joint Committee" and held the launching ceremony. At the ceremony, CAAM stated that the Joint Committee will adhere to the principle of "taking safety as the bottom line, with innovation as the driving force, and using coordination to promote development," working with all industry parties to jointly promote the safe, orderly, and large-scale development of China's autonomous driving industry, contributing industrial strength to building an automotive powerhouse and cultivating new quality productive forces. The Joint Committee sincerely invites OEMs, autonomous driving solution providers, chip and sensor companies, software and communication firms, testing and certification agencies, universities, and research institutes, and other relevant industry chain entities to join in discussing development plans, building collaborative mechanisms, and sharing industrial achievements. (CAAM) [DCE: Coke Options to Be Listed for Trading from September 2, 2026 (Wednesday)] The DCE announced that coke options will be listed for trading starting September 2, 2026 (Wednesday). The position limit for coke options is 5,000 lots. Coke options and coke futures have separate position limits. The combined buy holdings of all call options and sell holdings of all put options, as well as the combined buy holdings of all put options and sell holdings of all call options, in an options contract of a certain month for non-futures company members and clients, must not exceed the position limit for the options product. Positions deemed as acting in concert shall be aggregated for calculation. [CPCA: Preliminary Estimates Show July National Passenger Car Market Retail Sales at 1.506 Million Units, Down 18% YoY] Preliminary data from the China Passenger Car Association (CPCA) showed that from July 1 to 31, national passenger car market retail sales totaled 1.506 million units, down 18% YoY and down 6% MoM. Year-to-date cumulative retail sales reached 10.207 million units, down 20% YoY. National passenger car wholesale volumes by automakers from July 1 to 31 were 2.241 million units, up 1% YoY but down 5% MoM, with year-to-date cumulative wholesale volumes at 14.788 million units, down 5% YoY. (from Wall Street News APP) Dollar: Overnight, the US dollar index extended the decline of the previous trading day to fall 0.17% to 99.69. US private employment growth in July was significantly below expectations, indicating that labor market momentum had cooled somewhat, but wage growth remained resilient, and the overall employment situation remained stable. Data released by ADP Research Institute on Wednesday showed that private sector employment increased by 44,000 in July, below the 65,000 expected in a Bloomberg survey of economists and the lowest level this year, following a revised figure of 95,000 in June. The US government's non-farm payrolls report to be released on Friday is closely watched by the market. If the data is confirmed, the current employment trend would support the Fed's continued focus on still-high inflation. (Wall Street News) Driven by a rebound in new orders and business activity, the US services sector maintained a stable expansion trend in July. Data released on Wednesday showed that the July ISM Services Index rose 0.1 point to 54.1, with a reading above 50 indicating expansion. The new orders growth rate accelerated, and the gauge of business activity rose to a five-month high, indicating consumer demand remained resilient. However, rising service and material costs continued to pressure enterprises. As the temporary deal between the US and Iran broke down, driving crude oil and gasoline prices higher, the ISM Prices Paid Index surged to 70.3 in July. With persistently high costs squeezing corporate profits and affecting consumer spending, some companies may choose to delay hiring. The employment gauge of the institute indicated the most pronounced contraction in employment since March. (Jin10 Data APP) Fed Governor Cook reiterated her stance: if inflation does not slow, she is prepared to raise rates , and warned that policymakers may not have the luxury of waiting for inflation to return to the 2% target. Although Cook supported the Fed's decision to hold rates steady at the July policy meeting, she warned that the longer inflation remains above the Fed's target, the harder it will be to tame. In a speech at an event in Alaska, Cook said, "If I don't see signs that inflation is sustainably declining soon, I am ready to act. With inflation above target for five consecutive years, the risk that inflation becomes entrenched in price- and wage-setting behaviour is rising, which would lead to more persistent inflation that is harder to address." But Cook stated that the fading impact of tariffs, the possibility of lower oil prices, and the easing of pressures related to the AI boom could provide a buffer for inflation, thereby avoiding the need to tighten policy . She said her top priority remains bringing inflation back to the Fed's target. In an interview with CNBC on Wednesday, 2026 FOMC voting member and Minneapolis Fed President Kashkari stated that the Fed should now "start gradually raising" rates to lower inflation and avoid the need for more aggressive hikes in the future. Kashkari was one of three voting members who supported a 25-basis-point rate hike at last week's FOMC meeting. He said that with strong corporate earnings and resilient consumers and labor market, there is no evidence that monetary policy is clearly restrictive, making it time to start gradually raising rates. He stressed that this is not advocating for large rate hikes, but rather hoping for "small steps" to avoid the need for sharp policy tightening in the future if inflation becomes entrenched. He added that he is unsure what action the FOMC will take in September, and incoming data will play a key role. Meanwhile, Kashkari said that Fed Chairman Warsh did not pressure him, once telling him: "Do what you think is right for the economy." (Jin10 Data APP) According to CME's "FedWatch": The probability of the Fed holding rates unchanged in September is 45.6%, while the probability of a cumulative 25-basis-point rate hike is 54.4%. For October, the probability of no change is 33.5%, a cumulative 25 bps hike is 52.1%, and a cumulative 50 bps hike is 14.5%. Macro: Today, data to be released include Switzerland's July seasonally adjusted unemployment rate, Eurozone's June retail sales MoM, US July Challenger job cuts, US initial jobless claims for the week ending August 1, US July Global Supply Chain Pressure Index, and US June wholesale sales MoM. Focus on: Fed Governor Lisa Cook's speech on the economic outlook; 2027 FOMC voting member and San Francisco Fed President Daly's speech. Crude oil: Overnight, oil futures showed mixed performance, with WTI falling 0.91% and Brent edging up 0.08%. Iran and Oman are expected to reach an agreement to reopen the Strait of Hormuz, calming oil prices. Wall Street News mentioned that Iran systematically disclosed more details about negotiations with Oman on new transit arrangements for the Strait of Hormuz for the first time and publicly explained the latest contacts between the US and Iran regarding the strait's reopening. On Wednesday, the 5th local time, Iranian Deputy Foreign Minister Gharibabadi said that Iran and Oman are working on a new arrangement for the Strait of Hormuz that differs from the past 60 years. According to the new route design, commercial vessels, whether entering or exiting the strait, would need to pass through Iranian territorial waters in some sections. According to CCTV News, he stressed that arrangements related to the strait should be decided solely by Iran and Oman, and Iran would never accept the involvement of any external forces. (Wall Street News) The US exported a record volume of distillate fuel overseas last week while domestic inventories fell again, indicating that the global scramble for diesel is increasingly drawing down US supplies. According to data released by the US Energy Information Administration (EIA) on Wednesday, distillate fuel exports rose to 1.9 million barrels per day last week, the highest level on record, surpassing the previous peak set in May. Distillate fuels mainly include diesel, heating oil, and other products. At the onset of the US-Iran war, the global diesel market was thrown into disarray. Global fuel supply was disrupted as crude and product tankers could not pass through the Strait of Hormuz. Since then, months of Ukrainian attacks on Russian refining facilities further exacerbated supply pressures. This has made the US one of the few countries globally with sufficient diesel production capacity to churn out large volumes of fuel and export it overseas. US diesel exports have exceeded 1.5 million barrels per day for five consecutive weeks. Even with refiners running at full throttle to produce diesel, US fuel stockpiles are still falling. As of last week, distillate fuel inventories, on a seasonally adjusted basis, had dropped to the lowest level for the same period since 1996. (Jin10 Data APP)

In the same computing power leasing market, a clear dividing line in contract duration is emerging: the Huawei Ascend 910B/910C series is generally leased starting from one year in mainland China. NVIDIA H100/H200 leasing resources typically requires a minimum three-year lock-in contract, with concessions for a five-year contract still limited. Under export controls, computing power has shifted from a "commodity" to a "scarce resource“, contract duration is precisely the price of that scarcity.

SK Hynix announced on the 4th that it has jointly released the first standard specification for the next-generation memory technology High Bandwidth Flash (HBF) with SanDisk. It is reported that this standard specification is the first outcome achieved over approximately six months, following SK Hynix's initiation of HBF standardization collaboration with SanDisk in August last year and the establishment of an alliance in February this year. The specification defines two capacity configurations, utilizing 8-layer and 16-layer NAND chip stacking respectively, supporting a maximum capacity of 512GB. It also sets bandwidth standards across three tiers (Grade 1 to 3), with data transfer capabilities ranging approximately from 0.4TB/s to 3TB/s.

On August 4, GigaDevice and Elektrobit, a global enterprise in embedded connected software products and solutions for vehicles, completed in-depth technical adaptation. The two parties verified the adaptation between GigaDevice's GD32A7 series automotive-grade MCU and EB tresos series Classic AUTOSAR solutions, jointly created a standardized integrated in-vehicle development solution, improved the supporting software ecosystem for China-made automotive-grade chips, and helped accelerate the development of China's automotive electronics industry.

According to the Qichacha App, recently, Guangdong Huaxinzhiyuan Technology Co., Ltd. underwent industrial and commercial registration changes, adding Beijing Xiaomi Intelligent Manufacturing Equity Investment Fund Partnership (Limited Partnership), OPPO Guangdong Mobile Communications Co., Ltd., and others as shareholders. Public information shows that Huaxinzhiyuan focuses on the R&D and sales of battery management chips, committed to the full localisation of such chips.