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.

June Price Review: In June, the monthly average price of GO silicon steel continued its previous rebound trend, with the price center continuing to rise. Despite relatively high supply pressure, the earlier trend of price bottom repair persisted, and the monthly average spot price steadily rose, reflecting that the market held good expectations for a market recovery. However, the oversupply pattern capped the upside room, and the price uptrend was relatively mild without any sharp surge. Fundamental Analysis: In July, GO silicon steel production is expected to stay high. In terms of production by variety, HIB and CGO output will remain stable, with high-grade HIB still accounting for the vast majority of production, while CGO output will hold steady within a narrow range, and the product mix will not undergo significant adjustments. Compared with historical production schedules, the July 2026 production schedule will continue the high-level range, with overall supply releases stable, and total GO silicon steel supply will remain relatively ample. Sustained high output has also become one of the core factors capping the upside room for GO silicon steel prices this round and keeping the supply-demand balance loose. In May, GO silicon steel consumption driven by new grid installations was at a relatively low level for the year. In terms of structure, thermal power and solar power remained the main consumption sources, with wind and hydropower demand providing supplementation, and nuclear power’s share staying low. Compared with the consumption structure of non-oriented silicon steel, thermal power and solar together accounted for 60%, making the demand structure characteristics on the power supply side clear. In May, the pace of new terminal installations slowed down, transformer enterprise order growth was limited, and direct demand for GO silicon steel was released slowly, coupled with sustained high production at steel mills earlier, supply-side pressure was hard to digest, which weighed on silicon steel prices, making it difficult to rely on grid installations for strong demand boost in the short term. July Price Outlook: Looking ahead to July 2026, on the supply side, China's GO silicon steel supply is expected to be basically stable. Mainstream steel mills’ production lines will operate stably with no concentrated maintenance plans, and the overall production load will remain stable. Meanwhile, mainstream steel mills such as Baowu will raise the base price of grain-oriented products by 300 yuan/mt in their July pricing policies. Coupled with production profits maintaining a reasonable range, overall production enthusiasm will be good, and high-grade resources will be steadily released. Demand side, favorable market support continues, with overall demand performing robustly. China’s “15th Five-Year Plan” UHV projects continue to start construction in a concentrated manner, with the construction pace steadily advancing. Demand for transformers supporting new energy grid connections is robust. At the same time, energy efficiency upgrades for home appliances and NEVs are gradually being implemented, keeping demand for high-efficiency motor retrofits high. Moreover, overseas power grid upgrade projects are advancing, and procurement demand for high-grade GO silicon steel remains stable. However, India’s launch of anti-dumping against China’s GO silicon steel may cause some resources to flow back into the domestic market, weighing on price increases. Cost side, with expectations of further shrinking steel mill profits and normalizing production restrictions driven by local environmental protection, hot metal output is expected to continue to decline. However, the off-season impact on the market is expanding, and the average HRC price in July is expected to decline further MoM from June, with the decline narrowing. Overall, SMM expects that GO silicon steel prices will present a consolidation pattern in July 2026.

Recently, the State Grid Corporation of China (SGCC) held the second open tender for pre-service of UHV projects in 2026, including the Qinghai-Hainan Clean Energy Base Power Transmission to Guangdong Project (SGCC section) and the flexible DC converter station for the transmission end of the project. Among them, the feasibility study and design and investigation of the converter station include the relevant projects of the flexible DC converter station at the sending end, with a total maximum price of 112 million yuan.

On May 14-15, 2026, SMM WCCE 2026 (4th) Wire & Cable Industry Development Conference and Industrial Exhibition will grandly open at Suzhou International Conference Hotel, focusing on precise matchmaking across the cable industry chain. The exhibition centers on full-chain resource integration and efficient supply-demand matching, building a quality bridge for business negotiation and technical exchange among industry partners. Inner Mongolia Yihao Aluminum Co., Ltd. As a modern manufacturing enterprise integrating R&D, production, sales, and services, the company has been dedicated to aluminum-based materials in the fields of power transmission and new energy equipment. Inner Mongolia Yihao Aluminum Co., Ltd. was established in March 2025, located in Baotou Aluminum Industry Park, Baotou City, Inner Mongolia Autonomous Region , with 6 continuous casting and rolling production lines, equipped with wire drawing, annealing, stranding and other processing equipment and auxiliary production facilities. Main Products include high-precision aluminum alloy connecting rods, high-end electrical round aluminum rods, aluminum monofilaments, enamelled wire, high-conductivity stranded wire, overhead cables, high-end automotive parts, etc. Yihao Aluminum covers an area of 50,000 m², has 300 employees, and possesses an annual capacity of 150kt of electrical round aluminum rods. Inner Mongolia Yihao Aluminum Co., Ltd. is a core material supplier focused on the fields of power transmission and new energy equipment. Deeply engaged in the R&D, production, and sales of electrical round aluminum rods, it provides cost-effective aluminum-based material solutions for wire and cable, overhead conductor, and high-end electrical equipment manufacturing. Core Business and Capacity Scale Main Products: Centered on electrical round aluminum rods, covering ordinary industrial pure aluminum rods (conductivity ≥61% IACS), high-conductivity aluminum rods (conductivity ≥63% IACS), and special aluminum alloy rods (tensile strength ≥180MPa), with customizable products in specifications ranging from Φ9.5 to Φ15. Capacity Strength: Equipped with 6 modern continuous casting and rolling production lines, with an annual capacity of 150kt, of which high-conductivity aluminum rods and special aluminum alloy rods account for over 40%, meeting the rapid delivery needs of large-scale orders. Product Advantages and Technical Features Performance Advantages: Raw materials use industrial pure aluminum with purity ≥99.8%. Products feature stable resistivity and smooth, defect-free surfaces, passing rigorous mechanical and electrical conductivity detection, suitable for high-end scenarios such as ultra-high voltage power transmission and high-speed railway catenary systems. Quality Control: A full-process quality inspection system has been established from raw material intake to finished product warehouse withdrawals, in compliance with GB/T 3954-2022 national standard, equipped with detection equipment, with a product qualification rate consistently above 99.85% . Market and Application Fields Key Clients: Serving over 20 large cable enterprises in China, with products widely applied in State Grid Corporation of China distribution network renovation, China Southern Power Grid UHV projects, as well as PV power stations, NEV charging piles, metro power supply systems, and other fields. Market Coverage: The Chinese market covers core areas of power demand including east China, south China, and north China. Product Showcase Upholding the development philosophy of "Technology as Foundation, Green Empowerment" , Yihao Aluminum will continue to invest in R&D of high-conductivity rare earth aluminum alloy rods and low-carbon secondary aluminum technologies, striving to build a benchmark enterprise in electrical aluminum materials with integrated "R&D-Production-Service" capabilities , contributing to the upgrade of global power infrastructure and the achievement of the "Dual Carbon" goals. Committed to becoming a leading provider of electrical round aluminum rod solutions in China. May 14-15, 2026, Jiangsu · Suzhou International Conference Hotel , friends from all sectors are welcome to attend the conference in person and visit the booth of Soochow Futures Co., Ltd. (E06) to experience up close the technical strength and product appeal of this established futures company, explore new cooperation opportunities, and open a new chapter for the industry together. SMM WCCE 2026 (4th) Wire & Cable Industry Development Conference and Industrial Exhibition May 14-15 Jiangsu · Suzhou International Conference Hotel Participating Enterprises: Qifan Cable, Kunyi Cable, Senyuan Cable, Sanwu Cable, Huili Cable, Wanma Co., Ltd., Xinhai High Conductivity, Chenfeng Yongliang, Xinhuang Group, Soochow Futures, Guojia Conductor, Hongxing Meike, Dongfeng Cable, Qijia Industrial, Beijing Shougang Ferroalloy, Xinhongye, Yingtan Chaolong, Meichuangli, Jiuli Electric, Xinzi Nengke, Xindongang Electrical, Hangtian Electrical, Guochu Logistics, Jielüda, Jinhuijia, Xindian Aluminum Alloy, Gangwei Ultrasonic, Jinrui Qianyuan... Click to View ☛ ｜

[SMM Weekly Survey of the Aluminum Downstream Sector: Downstream Aluminum Operating Rate Continued to Rebound to 61.9%, with High Prices Suppressing the Peak "Golden March" Season] This week, the weekly operating rate of leading downstream aluminum processing enterprises in China rose 2.4 percentage points MoM to 61.9%, overall extending the post-holiday recovery trend, with all segments rebounding MoM, and the industry as a whole entering a normal production pace.

This week, the ± 800 kV UHV project of Mengdian to Su (Sui Ning section) began its preliminary work. At the same time, the environmental impact assessment pre-publicity of Hexi-Zhejiang ± 800 kV UHV DC auxiliary thermal power 750 kV transmission project was announced. The project includes the expansion of the 750 kV substation in Weibao North, the 750kV transmission from Jinchang Power Plant in Gansu Province, and the 750 KV transmission from Hongshagang (Weibao) Power Plant in Gansuo Province. The total length of the newly built transmission lines is about 149.6 km, and the construction period is from June 2026 to April 2027.