Grain-Oriented Silicon Steel Price Dynamics Shanghai B23R085 grade: 11,900-11,900 yuan/mt Wuhan 23RK085 grade: 11,300-11,300 yuan/mt This week, China's grain-oriented silicon steel market remained stable overall. Spot prices diverged across regions, but mainstream market quotes held steady. There were no public price adjustment moves in Shanghai or Wuhan, and overall market trading performance was mediocre. Supply side, mainstream steel mills kept their production pace stable. In August, the ex-works base price for GO silicon steel was raised by 50 yuan/mt. Combined with raw material costs, this formed bottom support, and steel mills had a strong willingness to hold prices firm, theoretically providing a floor for spot prices. However, the market was in the traditional demand off-season, and cost-side positives were blocked from transmitting upward, making it difficult to drive spot prices higher. Demand side, downstream transformer enterprises entered the traditional high-temperature off-season, and power grid tender projects were implemented at a relatively slow pace. End-user enterprises adopted conservative procurement strategies. Most only maintained small-scale rigid-demand restocking, and willingness to proactively stockpile in bulk was insufficient. The overall trading atmosphere was sluggish, and market participants remained cautious. Overall, supply and demand continued to contend. Costs and steel mill price adjustments effectively limited the room for deep market price declines, but there was no clear signal of short-term demand recovery. Next week, GO silicon steel is expected to continue its weak but stable consolidation pattern, with market trading still dominated by rigid-demand transactions. Going forward, continue to monitor power grid tender fulfillment progress, downstream operating conditions, and raw material cost fluctuations. Data Source Statement: (Apart from public information, other data in this report are all derived from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, National Bureau of Statistics data, customs import and export data, and various data published by major associations and institutions), market communication, and SMM's internal database model. They have been comprehensively analyzed and reasonably inferred by the research team, and are provided for reference only, not constituting decision-making advice. SMM has the final right to interpret the terms of this statement and reserves the right to adjust and modify the content of the statement based on actual circumstances.

Non-oriented Silicon Steel Price Dynamics Shanghai B50A800 grade: 4,350-4,350 yuan/mt Guangzhou B50A800 grade: 4,150-4,150 yuan/mt Wuhan 50WW800 grade: 4,160-4,160 yuan/mt Shanghai market: This week, cold-rolled non-oriented silicon steel spot prices in the Shanghai market were in the doldrums, and overall market transactions maintained off-season performance. Market feedback indicated that HRC futures consolidated this week, market confidence recovered somewhat, the current supply-demand imbalance was relatively pronounced, demand visibly weakened, and most downstream motor enterprises mainly purchased as needed, with low stockpiling willingness. Overall, cold-rolled non-oriented silicon steel prices in the Shanghai market are expected to remain in the doldrums next week, with expectations of following cost declines. Guangzhou market: This week, the cold-rolled non-oriented silicon steel market in Guangzhou was in the doldrums, and transactions were somewhat sluggish. Market feedback indicated that ferrous metals futures consolidated this week, and the spot market lacked direction. However, the industry is currently in its traditional consumption off-season, downstream end-users such as motor and appliance enterprises maintained low operating rates, purchasing sentiment was cautious and conservative, and typhoon and rainstorm weather affected sales, making the market even more sluggish. Overall, cold-rolled non-oriented silicon steel prices in the Guangzhou market are expected to remain in the doldrums next week. Wuhan market: This week, the cold-rolled non-oriented silicon steel market in Wuhan was in the doldrums, with prices generally declining by 30-50 yuan/mt and lackluster transactions. Market feedback indicated that futures consolidated, downstream enterprises showed strong wait-and-see sentiment, demand resilience was insufficient, and traders reported that actual transactions were average, and they held cautious expectations for the future market outlook and chose to control inventory levels. Overall, cold-rolled non-oriented silicon steel spot prices in the Wuhan market are expected to remain in the doldrums next week. Data Source Statement: (All other data in this report are derived from public 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 published by major associations and institutions), market communications, and the SMM internal database model, and are obtained through comprehensive analysis and reasonable inference by the research team; they are for reference only and do not constitute decision-making advice.) SMM has the final right to interpret the terms of this statement and reserves the right to adjust and amend the content of this statement according to actual circumstances.

July Price Review ： Domestic grain-oriented silicon steel prices rose first and then retreated in July. Supported by rigid demand from downstream transformer manufacturers as well as orders in the new energy and UHV sectors from early to mid-July, mainstream grades including B23R085 climbed to cyclical highs. Nevertheless, persistently high prices suppressed downstream purchasing willingness, market trading turned sluggish, and spot prices came under pressure and fell at month-end, ending the upward rally. In view of forward expectations, the market generally holds the view that this round of price surge has come to an end. Fundamental Analysis Domestic steel mills plan to maintain roughly the same output of grain-oriented silicon steel in August as in July, sustaining high production levels with no obvious tightening in supply delivery pace. In terms of product mix, production is still overwhelmingly dominated by high magnetic induction (HIB) grain-oriented silicon steel, while the output proportion of conventional CGO grain-oriented silicon steel remains low. Output of both varieties changes little compared with July. Steel mills have no intention of carrying out concentrated voluntary production cuts. The continuously ample supply keeps weighing on the spot market and creates obvious resistance to further price hikes. Newly added installed capacity of various power sources showed divergent performance in June, forming structural support for grain-oriented silicon steel demand. Newly installed thermal power capacity maintained relatively strong year-on-year growth. Thermal power supporting step-up transformers and auxiliary transformers for power plants continued to generate rigid demand for grain-oriented silicon steel. Newly installed hydropower capacity increased substantially, driving demand for main and auxiliary transformers of hydropower stations. Newly installed wind and solar power capacity was weaker than the same period of previous years, leading to limited incremental demand for box transformers and main transformers supporting new energy. Newly installed nuclear power capacity declined, resulting in periodic weakening of demand for special grain-oriented silicon steel for nuclear power applications. Overall, construction of traditional power sources gained momentum in June. Thermal and hydropower installed capacity contributed major incremental demand, supporting orders for large power transformers and further boosting demand for high-grade grain-oriented silicon steel. Insufficient incremental wind and solar power installations offset part of the demand growth. Therefore, demand presented a structural pattern: strong demand from traditional power sources and weak demand from the new energy sector. August Price Outlook Looking ahead to August 2026: On the supply side, domestic supply of grain-oriented silicon steel will edge down slightly. Major state-owned steel mills will basically continue high-load production, while some private enterprises will conduct minor maintenance, leaving overall supply broadly stable. Despite the price correction of grain-oriented silicon steel in July, most steel mills still enjoy decent profits. In addition, leading steel mills including Baowu lifted the August base price of grain-oriented silicon steel by RMB 50 per tonne, demonstrating obvious price-support sentiment and sound overall production enthusiasm. Deliveries of high-grade products remain steady; however, sufficient supply of conventional grades has brought inventory pressure to the market. On the demand side, China’s 15th Five-Year Plan UHV projects keep being launched. Transformer enterprises prioritize fulfilling supporting orders for UHV construction, and demand for high-grade grain-oriented silicon steel used in transformers for new energy grid interconnection stays resilient. Nevertheless, the impact of the high-temperature off-season will surface in August. Most downstream enterprises will only conduct inventory replenishment for rigid demand. The conversion of tender orders issued by State Grid and China Southern Power Grid is subject to time lags, and enterprises lack motivation for proactive stockpiling. Furthermore, India’s ongoing anti-dumping investigation against Chinese grain-oriented silicon steel has disrupted exports. Cargo diverted from overseas markets flows back and continuously hits the domestic market, putting prices under pressure. On the cost side, hot rolled coil prices are expected to fluctuate weakly in August with limited upward momentum, and the monthly average price will continue to decline month-on-month. In summary, SMM forecasts that grain-oriented silicon steel prices will fluctuate on a weak trend in August 2026. High-grade grades will be relatively resilient against price falls, while conventional grades will face more prominent downward pressure. Data source statement: (Data in this report other than public information are all sourced from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, National Bureau of Statistics data, customs import and export data, and various data published by major associations and institutions), market communication, and SMM's internal database models, and are produced by the research team through comprehensive analysis and reasonable inference; they are for reference only and do not constitute decision-making advice.) SMM reserves the final right of interpretation of the terms of this statement and the right to adjust and amend the content of the statement according to actual circumstances.

[SMM Copper Import and Export Market] On August 13, SMM Chinese bonded warehouse copper cathode inventories stood at 35,200 mt, up 4,100 mt WoW. According to SMM, the increase in bonded warehouse inventories was mainly due to: 1. the recent opening of the export window, which created export arbitrage opportunities for some copper cathode and led to a concentration of cargoes in the bonded warehouse; 2. the earlier successive arrivals of cancelled warrants from LME Asian warehouses, which further lifted inventory levels.

Data Source Statement: All data in this report, other than publicly available information, are derived from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, National Bureau of Statistics (NBS) data, customs import and export data, and various data published by major associations and institutions), market communication, and SMM’s internal database models. They are produced through comprehensive analysis and reasonable inference by the research team, are for reference only, and do not constitute decision-making advice. Shanghai Metals Market reserves the right of final interpretation of this statement and the right to adjust and amend its content based on actual circumstances.

H1 2026 sulfur imports fell by 771,000 mt YoY, a decline of nearly 30%. Combined imports from the four Middle Eastern countries (UAE, Qatar, Saudi Arabia, Kuwait) dropped by 1.52 million mt, a decrease of 62%. Canada emerged as a new major source, with imports rising from 172,000 mt to 328,000 mt (+90%), making it the second-largest origin. The average price in June surged to $885/mt, forming a pattern of “volume decline and price increase”.