[SMM Analysis: Glimmer of Hope amid Weak Supply and Demand: Review of China's Aluminum Billets Market in H1 2026 and Outlook for H2] In H1 2026, China’s aluminum billets market, squeezed by wild swings in aluminum prices and a slow recovery in end-use demand, underwent a turbulent journey from deep pressure to staged repair...

As of this Friday, SiMn 6517 in north China was at 5,700-5,750 yuan/mt in cash, up WoW; SiMn 6517 in south China was at 5,750-5,800 yuan/mt in cash, up from last Friday; and SiMn 6014 in south China was at 5,450-5,500 yuan/mt in cash, flat WoW. Recently, SiMn futures weakened and moved sideways. The market saw a strong wait-and-see sentiment, with spot prices edging up, but futures could hardly drive spot prices significantly higher.

On July 7, Guizhou Huayan New Materials Co., Ltd. initiated the environmental impact assessment for its "Waste New Energy Lithium Battery Recycling Comprehensive Utilization Project." The project is located in the Geyi Economic Development Zone, Taijiang County, Guizhou Province, with a total investment of 80 million yuan. It plans to process 30,000 tons of waste lithium batteries annually, including 12,000 tons of ternary lithium batteries and 18,000 tons of lithium iron phosphate batteries. The project's construction entity, Guizhou Huayan New Materials Co., Ltd., was established in February 2024 with a registered capital of 51 million yuan.

News Release, July 9, 2026，China’s high-carbon ferrochrome prices saw distinct phased volatility in H1 2026. After surging to a high of RMB 8,650 per 50-base-tonne in Q1, prices gradually retreated to RMB 8,100 per 50-base-tonne in Q2, driven primarily by supply-demand mismatch.

1. Coal-to-Hydrogen Shandong anthracite transaction range [1930-1930], average hydrogen cost [1.76 yuan/m³] Shanxi anthracite transaction range [1180-1180], average hydrogen cost [1.26 yuan/m³] Hebei anthracite transaction range [1660-1660], average hydrogen cost [1.59 yuan/m³] Henan anthracite transaction range [1230-1230], average hydrogen cost [1.27 yuan/m³] 2. Natural Gas-to-Hydrogen Pearl River Delta natural gas transaction range [6600-6600], average hydrogen cost [3.03 yuan/m³] Zhejiang natural gas transaction range [6160-6440], average hydrogen cost [2.89 yuan/m³] Guangxi natural gas transaction range [6080-6570], average hydrogen cost [2.88 yuan/m³] East Guangdong natural gas transaction range [6600-6610], average hydrogen cost [3.01 yuan/m³] Henan natural gas transaction range [5500-5700], average hydrogen cost [2.64 yuan/m³] Hebei natural gas transaction range [5512-5940], average hydrogen cost [2.67 yuan/m³] Hubei natural gas transaction range [5840-5980], average hydrogen cost [2.75 yuan/m³] Guizhou natural gas transaction range [5690-5970], average hydrogen cost [2.70 yuan/m³] Sichuan natural gas transaction range [5645-6015], average hydrogen cost [2.73 yuan/m³] Shanxi natural gas transaction range [5220-5640], average hydrogen cost [2.52 yuan/m³] Shandong natural gas transaction range [5610-6340], average hydrogen cost [2.78 yuan/m³] Heilongjiang natural gas transaction range [5790-6180], average hydrogen cost [2.76 yuan/m³] Inner Mongolia natural gas transaction range [5420-5810], average hydrogen cost [2.56 yuan/m³] 3. Propane-to-Hydrogen South China propylene oxide transaction range [5210-5280], average hydrogen cost [3.07 yuan/m³] East China propylene oxide transaction range [5110-5320], average hydrogen cost [3.06 yuan/m³] Northeast China propylene oxide transaction range [4630-5010], average hydrogen cost [2.86 yuan/m³] Shandong propylene oxide transaction range [5352-5352], average hydrogen cost [3.14 yuan/m³] 4. Methanol-to-Hydrogen East China methanol transaction range [2380-2600], average hydrogen cost [2.26 yuan/m³] Central China methanol transaction range [2290-2630], average hydrogen cost [2.27 yuan/m³] North China methanol transaction range [2210-2330], average hydrogen cost [2.08 yuan/m³] South China methanol transaction range [2550-2750], average hydrogen cost [2.35 yuan/m³] Northwest China methanol transaction range [2080-2220], average hydrogen cost [1.98 yuan/m³] Southwest China methanol transaction range [2510-2730], average hydrogen cost [2.38 yuan/m³] Northeast China methanol transaction range [2480-2590], average hydrogen cost [2.28 yuan/m³]

★ Macro ★ 01 ★★ [June China Warehousing Index Returns to Expansion Territory] The China Federation of Logistics and Purchasing released the June China Warehousing Index. With the concentrated commencement of major infrastructure projects nationwide and the simultaneous recovery of supply and demand in manufacturing, warehousing business demand improved noticeably, and the index returned to expansion territory. The June China Warehousing Index stood at 50.2%, up 0.6 percentage points MoM. 02 ★★ [ PBOC Net Withdrawal of 59.5 Billion Yuan via Open Market Operations ] The People's Bank of China (PBOC): Today, it conducted a 10 billion yuan 7-day reverse repo operation, with a bid amount of 10 billion yuan, an awarded amount of 10 billion yuan, and an operation rate of 1.40%, unchanged from the previous level. As 69.5 billion yuan of 7-day reverse repos matured today, a net withdrawal of 59.5 billion yuan was recorded on the day. 03 ★★ [ PBOC Governor Pan Gongsheng: Supports HKMA in Raising RMB Business Funding Arrangement from 200 Billion Yuan to 500 Billion Yuan ] Pan Gongsheng, Governor of the People's Bank of China, stated on July 7 at the "Hong Kong Fixed Income and Currency Summit cum Bond Connect Forum" that Hong Kong is the world's largest offshore RMB business center. To further develop the RMB offshore market, liquidity supply is a fundamental arrangement. In recent years, the People's Bank of China has coordinated the role of RMB clearing banks and currency swap arrangements to provide stable RMB liquidity support for the Hong Kong offshore market. Previously, the People's Bank of China signed an 800 billion yuan standing swap arrangement with the HKMA, and also upgraded and established an RMB business funding arrangement totaling 200 billion yuan, providing a stable and relatively low-cost source of medium and long-term RMB funds for commercial banks in Hong Kong. Pan Gongsheng stated that on this basis, he supports the HKMA in increasing the size of the RMB business funding arrangement from the current 200 billion yuan to 500 billion yuan, and extending the usage period to no more than three years. 04 ★★ [ SAFE Releases Foreign Exchange Reserve Data for End-June 2026 ] Data from the State Administration of Foreign Exchange (SAFE) showed that as of the end of June 2026, China's foreign exchange reserves stood at $3,416.3 billion, down $26 billion from the end of May, a decline of 0.75%. In June 2026, influenced by macroeconomic data from major economies, the monetary policies and expectations of major central banks, and other factors, the US dollar index rose, while major global financial asset prices showed mixed performance. The combined effects of exchange rate translation and changes in asset prices led to a decline in foreign exchange reserves for the month. China's economy is generally stable and developing with innovation and quality, which is conducive to the basically stable scale of foreign exchange reserves. ★ Industry and Downstream ★ 01 ★★ [June Sales of Various Excavators Total 25,445 Units] According to data released by the China Construction Machinery Association on Tuesday, 25,445 units of various excavators were sold in June, up 35.3% YoY. Of which: domestic sales were 10,898 units (including 65 electric excavators), up 33.9% YoY; exports were 14,547 units (including 34 electric excavators), up 36.4% YoY. 02 ★★ [Global New Ship Order Tracking (June 29–July 5)] According to tracking by International Ship Network: from June 29 to July 5, 2026, global shipyards received a total of 68+4 new ship orders. Of which, Chinese shipyards received 57+4 new ship orders; Japanese shipyards received 3; South Korean shipyards received 4; and Philippine shipyards also received relevant new ship orders. 03 ★★ [ Da-Qin Railway: June Cargo Transport Volume of Da-Qin Line at 36.89 Million mt ] Da-Qin Railway announced that in June 2026, the company's core operating asset, the Da-Qin Line, completed a cargo transport volume of 36.89 million mt, up 13.79% YoY; the daily average volume was 1.2297 million mt. The daily average number of heavy-haul trains operated on the Da-Qin Line was 86.9, of which the daily average number of 20,000-tonne trains was 61.1. In January-June 2026, the cumulative cargo transport volume on the Da-Qin Line reached 204 million mt, up 7.96% YoY. 04 ★★ [Xuanwei Laibin Guangming Coal and Power No.1 Mine Ordered to Suspend Production for Rectification] Recently, the Yunnan Bureau of the National Mine Safety Supervision Administration issued an official notice, stating that due to multiple major accident hazards at the No.1 Mine of Yunnan Xuanwei Laibin Guangming Coal and Power Co., Ltd., and the illegal organization of production with existing problems, the regulatory authorities ordered the mine to suspend production for rectification in accordance with the law. It is understood that from June 11 to 13, 2026, the Yunnan Bureau of the National Mine Safety Supervision Administration conducted an on-site inspection of the No.1 Mine of Yunnan Xuanwei Laibin Guangming Coal and Power Co., Ltd. and found that the mine was still organizing production despite major accident hazards such as "falsifying drawings, concealing mining faces, and continuing production; and failure to install safety monitoring and personnel position monitoring systems in the coal mine." 05 ★★ [One Residential Plot in Hangzhou Sold at 26.68% Premium] On July 7, a residential plot in the Xiaoshan Century City core unit, Hangzhou, was transferred, with a land area of 34,167.00 m², planned building area of 95,667.60 m², plot ratio of 2.8, starting price of 3.635 billion yuan, and starting floor price of 38,000 yuan/m². After 98 rounds of bidding, Poly Development finally won the plot for a total price of 4.605 billion yuan, with a transaction floor price of 48,139 yuan/sq m and a premium rate of 26.68%. ★ Other Hot Topics ★ ⭕ [HBIS Releases Full-Scene Solution for High-End Green Metal Decoration Materials] The opening of the exhibition hall and the release of the solution represent HBIS’s practical commitment to deepening its green and low-carbon transformation, implementing the national “2024-2025 Energy Conservation and Carbon Reduction Action Plan,” the “Implementation Plan for High-Quality Development of the Green Building Materials Industry,” and the deployment for high-quality development of the new materials industry in Hebei province. It is another landmark practical achievement for HBIS in the transformation and upgrading process from “steel to materials” and “manufacturing to service,” leveraging its advantages across the entire industry chain to precisely address core client needs, actively overcome industry development bottlenecks, and lead the industry’s high-end upgrade. ⭕[Guizhou Province Coal Mine Enterprise Safety Production Permit Application Status] According to relevant regulations, following the decision made at the Party Leadership Group meeting of the Guizhou Provincial Energy Administration on June 30, 2026, approval was granted for the extension/renewal or issuance of safety production permits for the following: Guizhou Bangda Energy Development Co., Ltd., Shuicheng District Shaomi Laodigou Coal Mine; Guizhou Pannan Coal Development Co., Ltd., Xiangshui Mine Jiuwuji Well Area; and Zunyi Bozhou District Sheng’an Coal Industry Co., Ltd., Zunyi County Panshui Town Xing’an Coal Mine. ⭕[Jilin Province Coal Mine Capacity Status for H1 2026] In accordance with the requirements of the “Notice of the General Office of the National Energy Administration on Improving the Coal Mine Capacity Registration and Announcement System for Carrying Out Construction Coal Mine Capacity Announcements” (Guonengfa Coal [2017] No. 17), the capacity status of legal construction coal mines with reported construction commencement information and complete mining licenses and business licenses, as well as legal production coal mines with complete mining licenses, safety production permits, and business licenses, as of June 30, 2026, is hereby announced. *This report is an original work and/or compilation created by SMM Information & Technology Co., Ltd. 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