Teck Resources reported on July 23 that Red Dog processed 1.13 million tonnes of ore in the second quarter, at average grades of 12.3% zinc and 3.8% lead, producing 112,000 tonnes of zinc and 21,900 tonnes of lead. Zinc output declined 18% year on year from 136,600 tonnes, mainly because of lower mill feed grades. Teck expects mining at Qanaiyaq to be completed this year, while Aqqaluk is expected to supply the mill until around 2031, with zinc output set to decline as grades diminish. Although first-half zinc production reached 218,200 tonnes, Teck expects full-year output to remain within guidance as grades continue to decline and the zinc and lead recovery circuits undergo a planned maintenance shutdown in the fourth quarter. Zinc guidance for 2026, 2027 and 2028 stands at 375,000–415,000 tonnes, 330,000–370,000 tonnes and 230,000–270,000 tonnes, respectively. The Red Dog Mine Life Extension PFS is progressing, supported by a substantially completed 12-mile access road, an awarded underground exploration-decline contract and C$200 million–C$250 million of 2026 budgeted spending.

SMM July 23 News: Metal markets: As of the midday close, base metals on the domestic market generally rose. SHFE copper edged down, while SHFE aluminum rose 0.45%. SHFE lead rose 1.02%. SHFE zinc rose 1.47%. SHFE tin rose 0.27%. SHFE nickel rose 1.05%. In addition, the most-traded foundry aluminum futures contract rose 0.5%, while the most-traded alumina contract fell 0.66%. The most-traded lithium carbonate contract rose 4.24%. The most-traded silicon metal contract rose 0.67%. The most-traded polysilicon futures contract rose 0.51%. Ferrous metals all rose. Iron ore rose 1.15%, rebar rose 0.52%, and HRC rose 0.46%. Stainless steel rose 0.61%. Coking coal and coke: the most-traded coking coal contract rose 1.3%, and the most-traded coke contract rose 1.4%. Overseas base metals: As of 11:39 AM, LME metals all rose. LME copper rose 0.27%, LME aluminum rose 0.17%, LME lead rose 0.42%, LME zinc rose 0.75%, and LME tin edged up. LME nickel rose 0.58%. Precious metals: As of 11:39 AM, COMEX gold fell 0.46%, and COMEX silver fell 0.3%. Domestic precious metals: SHFE gold rose 0.86%; the most-traded SHFE silver contract rose 1.55%. In addition, as of midday close, the most-traded platinum futures contract fell 0.1%, and the most-traded palladium futures contract fell 0.38%. As of midday close, the most-traded containerized freight index (Europe route) contract rose 0.92% to 2,855 points. Selected futures midday prices as of 11:39 AM, July 23: Spot and Fundamentals Silver: Amid recurring geopolitical risks, silver prices are consolidating around steady levels. End-of-month willingness to sell from smelters is strong, spot transactions are near parity, and overall demand remains weak... Macro Front China: [The National Development and Reform Commission (NDRC) and the National Energy Administration issued the Renewable Energy Development 15th Five-Year Plan] The plan states that by 2030, total renewable energy consumption is expected to reach approximately 1.8 billion mt of standard coal equivalent. By 2030, total installed renewable energy power generation capacity is expected to reach approximately 3.5 billion kW, with annual power generation of approximately 6 trillion kWh; total installed wind and solar power capacity is expected to exceed 2.8 billion kW, accounting for over 50% of total capacity, with annual power generation exceeding 4 trillion kWh and accounting for 30% of total generation. By 2030, the scale of non-electricity renewable energy utilization is expected to grow 1.5 times compared to 2025, equivalent to approximately 150 million mt of standard coal. By 2030, the average firm output of wind and solar PV (including source-side energy storage) nationwide is expected to reach 8% (around 11% for wind and 6% for PV), with wind and solar PV (including source-side energy storage) accounting for over 20% of electricity during the evening peak of summer and winter demand, an increase of approximately 10 percentage points. During the 15th Five-Year Plan period, over 300 million kW of new reliable peak-shaving renewable energy capacity will be added. (from Wall Street News APP) [Beijing Expands Subsidized Products for the 2026 Consumer Goods Trade-in Program] The Beijing Municipal Commerce Bureau issued an announcement on expanding the list of subsidized products for the 2026 consumer goods trade-in program. After obtaining filing confirmation from the Ministry of Commerce, ten additional product categories will be included in the subsidy program. The relevant matters are hereby announced as follows: Subsidies will be provided to individual consumers in Beijing purchasing the following ten categories of products: smart door locks, smart cameras, smart robot vacuums (including smart floor scrubbers and smart vacuum cleaners), smart toilets (including smart toilet seat covers), digital cameras (including action cameras), smart earphones, whole-house smart hosts (including smart home servers and smart gateways), smart beds (including smart mattresses), smart electric wheelchairs, and embodied AI robots (including companion robots, robotic dogs, exoskeleton robots, and elderly care robots). For individual consumers purchasing the above smart home products (including elderly-friendly home products), the subsidy standard is 15% of the final selling price after all discounts, with each person eligible for one subsidized item per category, and the subsidy per item capped at 1,500 yuan. (from Wall Street News APP) [Guangdong: Industrial Robot Production Up 34.2% YoY in H1] According to the Guangdong Statistics Information Network, in H1, the value-added of industrial enterprises above designated size in the province increased by 5.8% YoY. By sector, the value-added of the mining sector was up 8.8% YoY, manufacturing up 5.4%, and power, heat, gas, and water supply up 8.9%. By industry, the value-added of the computer, communication, and other electronic equipment manufacturing industry was up 11.6% YoY, electrical machinery and equipment up 4.2%, and automobile manufacturing up 9.9%. By product, industrial robot production was up 34.2% YoY, and integrated circuits up 29.7%. (from Wall Street News APP) [PBOC Net Drains 422 Billion Yuan from Open Market Today] The PBOC conducted 204 billion yuan of 7-day reverse repo operations today at an interest rate of 1.4%, unchanged from the previous operation. A total of 626 billion yuan of reverse repos matured today. US Dollar: As of 11:39, the US dollar index fell 0.14 to 100.98. On July 22 local time, US President Trump mentioned in a speech in Georgia that a federal government "shutdown" would occur in September due to differences between Republicans and Democrats over spending priorities. On July 21 local time, the Republican-controlled U.S. House of Representatives passed a short-term spending bill that will fund federal government agencies through December 4, avoiding a government shutdown due to funding depletion before the November midterm elections. This temporary funding measure, also known as a "continuing resolution," will now be sent to the Senate for consideration. Republican leaders in the Senate are currently negotiating with Democrats and may propose their own short-term spending bill. If Congress fails to pass an appropriations bill in time, funding for most federal agencies and programs will expire at midnight on September 30, the end of the current fiscal year. (CCTV) As energy prices remain elevated, inflation expectations are heating up, and the market is focused on whether the upcoming Fed meeting next week will release clues about the future rate path. According to CME "FedWatch": the probability of the Fed keeping rates unchanged in July is 65.3%, while the probability of a cumulative 25-basis-point hike is 34.7%. The probability of rates remaining unchanged through September is 22%, a cumulative 25-bp hike is 54.9%, and a cumulative 50-bp hike is 23%. Other currencies: Mizuho Securities economist Yusuke Matsuo said Bank of Japan Governor Kazuo Ueda is expected to reiterate the stance of seeking further rate hikes at next week's press conference, but this is unlikely to reverse the yen's weakness. "The market has largely priced in the expectation that the BOJ will hike rates once every six months, so such comments alone are unlikely to push the yen significantly higher. Given that the market anticipates clarity on the timing and magnitude of the next rate hike, any stance interpreted as dovish could exacerbate the yen's weakness amid broad dollar strength." The market widely expects the BOJ to keep its policy rate unchanged at 1% at next week's meeting as it assesses the impact of the last rate hike. (Jin10 Data APP) Data: Today, data releases include China's June Swift renminbi share in global payments, Australia's June seasonally adjusted unemployment rate, the UK's July CBI industrial orders balance, the eurozone's ECB deposit facility rate as of July 23, the eurozone's ECB main refinancing rate as of July 23, Canada's May retail sales m/m, the US initial jobless claims for the week ending July 18, and the eurozone's July consumer confidence index flash estimate. Also watch for: the ECB announces its interest rate decision; ECB President Christine Lagarde holds a monetary policy press conference; Google and Tesla reported Q2 earnings after the US market close on July 22. Crude oil: As of 11:39, both benchmarks rose, with WTI up 1.88% and Brent up 1.57%. The US-Iran conflict continues to escalate, and global energy markets are repricing for a protracted supply shock. Both the US and Iran have clearly signaled a refusal to negotiate, reducing expectations for a near-term ceasefire to virtually zero. The rise in oil prices is no longer driven purely by supply-demand logic; a geopolitical risk premium is becoming a structural anchor in the pricing system. (Wall Street CN) Phillip Nova analyst Priyanka Sachdeva noted in a report that if tensions continue to escalate, Brent crude could test $100/bbl. She said that while the market is currently bearing mainly logistical risks rather than actual crude losses, this distinction could quickly narrow if attacks persist. Sachdeva pointed out that the greatest risk for energy markets would be prolonged traffic disruptions in both the Bab el-Mandeb Strait and the Strait of Hormuz. She added that the market's flexibility in rerouting cargoes would be very limited at that point, and shipping disruptions could rapidly evolve into broader inflation concerns. (Jin10 Data APP) Spot Market Overview: ► ► ► ► ► ► ► ► ► ►

SMM July 22 news: In the metals market: Overnight, base metals on the domestic market mostly rose. SHFE copper rose 1.69%, SHFE aluminum added 0.56%, SHFE lead fell 0.95%, SHFE zinc rose 0.55%, SHFE tin gained 1.02%. SHFE nickel climbed 0.77%. In addition, the most-traded alumina futures rose 0.22%, and the most-traded casting aluminum futures rose 0.5%. Overnight, ferrous metals mostly rose. Stainless steel added 0.2%, iron ore fell 0.13%, and rebar and hot-rolled coil both rose within 0.2%. As for coking coal and coke: the most-traded coking coal contract rose 1.84%, and the most-traded coke contract rose 0.52%. In the overnight overseas metals market, LME base metals nearly all rose. LME copper climbed 1.91%, LME aluminum added 0.81%, LME lead fell 0.48%, LME zinc rose 0.94%, LME tin jumped 1.53%, and LME nickel gained 1.12%. In overnight precious metals, : COMEX gold rose 1.65%, COMEX silver surged 3.5%. The most-traded SHFE gold contract rose 1.36%, and the most-traded SHFE silver contract climbed 3.01%. As of 7:07 on July 22, overnight closing prices: Macro front Domestic market: [State Administration for Market Regulation: During the 15th Five-Year Plan period, it will proactively lay out high-level testing platforms for strategic emerging industries such as integrated circuits, new energy, biomedicine, and humanoid robots] The State Administration for Market Regulation held a press conference on July 21 to introduce the achievements of China’s testing and inspection service industry during the 14th Five-Year Plan period. During the 15th Five-Year Plan period, it will implement a three-year action to promote industrial optimization and upgrading and quality improvement of national quality inspection centers through innovative pilot programs, proactively lay out high-level testing platforms for strategic emerging industries such as integrated circuits, new energy, biomedicine, and humanoid robots, and drive service model innovation through digital transformation. It will strengthen deep collaboration with industry chain leaders and research institutes, jointly overcome a number of key core technologies, promote the upgrading of testing and inspection from single services to “industry chain synergy,” and transform the role from a “post-event quality gatekeeper” to an “innovation enabler throughout the whole process.” It will coordinate the building of testing capabilities for green and low-carbon development, food safety, and high-risk industrial products, and reinforce the quality defense line for industrial development and public safety. (Jin10 Data App) [Southwest China Adds Large-Scale Hydrogen Source Base] News from CIMC Group: the integrated steel and coke clean energy project in Liupanshui, Guizhou Province, has been officially commissioned and achieved stable operation, becoming a key hydrogen supply node on the “Chongqing-Guizhou-Guangxi” hydrogen corridor. The project commissioned this time is currently the leading industrial tail-gas-to-hydrogen and resource-utilization demonstration project in south-west China. Leveraging surplus local coke oven coal gas resources from the steel industry, the project uses independently developed full-chain process technology to complete component separation, converting industrial tail gas that was originally used for combustion power generation into high-value clean energy. It can produce 24 million m³ per year of 99.999% fuel cell, battery-grade high-purity hydrogen and approximately 140,000 mt of liquefied natural gas, achieving efficient on-site resource conversion. (CCTV News) US dollar: Overnight, the US dollar index rose 0.24% to 101.21. Rising oil prices put pressure on the rates market, and the market’s assessment of the likelihood of US Fed rate hikes in July and September both increased today. Christopher Hodge, Natixis’ Chief US Economist, believed that energy price fluctuations should drive US Fed decision-making. (Wallstreetcn) According to CME “FedWatch”: the probability that the US Fed would keep rates unchanged in July was 74.9%, and the probability of cumulative rate hikes of 25 basis points was 25.1%. The probability that the US Fed would keep rates unchanged by September was 28.9%, the probability of cumulative rate hikes of 25 basis points was 55.7%, and the probability of cumulative rate hikes of 50 basis points was 15.4%. (Jinshi Data APP) In addition, according to a Reuters poll: 78 of 104 economists (78 of 102 in last month’s poll) expected the US Fed to keep the federal funds rate unchanged at 3.50%-3.75% throughout 2026. On the macro front: Today, data including the UK June CPI m/m and the UK June Retail Price Index m/m were due to be released. Crude oil: Overnight, both crude oil futures rose, with WTI up 2.5% and Brent up 2.71%. The US-Iran military conflict entered its 10th day, and the Houthi armed group announced a maritime blockade against Saudi Arabia, with traffic through the Bab el-Mandeb Strait in the Red Sea plunging 34% within two weeks. (Wallstreetcn) Data: US crude oil inventory increased last week. For the week ended July 17, API crude oil inventory was 2.603 million barrels (expectations: -500,000; previous: -564,000). For the week ended July 17, API gasoline inventory was -1.379 million barrels (expectations: -1.81 million; previous: -1.664 million). In addition, Iraq’s oil minister said that during the Iraqi prime minister’s visit to the US, the total value of agreements expected to be signed between Iraq’s Ministry of Oil and US enterprises would reach $200 billion. In a statement, Fatih Birol, Executive Director of the International Energy Agency (IEA), said that the recent escalation of hostile actions against energy infrastructure in and around the Strait of Hormuz had heightened concerns over global energy supply security and increased uncertainty about the market outlook. The threats facing the Bab el-Mandeb Strait, a key passage bypassing the Strait of Hormuz, have further intensified these concerns. However, he noted that the crude oil market is currently supported by several buffering factors. Gulf producers such as Saudi Arabia and the UAE are maintaining supply through alternative shipping routes, and some crude continues to be exported via the Strait of Hormuz. The IEA estimates that crude exports from the Gulf region, while below the end-June high, remain significantly above the levels from March to mid-June. Additionally, increased exports from producers including the US, Brazil, Venezuela, and Kazakhstan have partially offset supply losses from the Gulf. China’s nearly 50% reduction in crude oil imports has also helped stabilize the market. The IEA stated that since the announcement of the release of 400 million barrels from strategic petroleum reserves on March 11, member countries have released about 290 million barrels into the market, and the ongoing release of emergency inventories is providing support to the market. (Jinshi Data App) Due to the contract rollover, NYMEX crude oil August futures will see floor trading conclude at 2:30 a.m. on July 22, and electronic trading end at 5:00 a.m. Please pay attention to the exchange's expiration and rollover notices to manage risks. Additionally, some trading platforms' US oil contracts typically expire one day earlier than the official NYMEX expiration, so please take extra care. Recommended Reading:

[Smelters Focus on Domestic Ore Procurement; TCs Continue to Decline in Many Regions]: On a weekly basis, the average SMM Zn50 domestic weekly TC fell 150 yuan/mt Zn WoW to -750 yuan/mt Zn, and the SMM imported zinc concentrate index dropped $6.85/dmt WoW to -$90.15/dmt....

Silver Mountain Resources has commenced commissioning activities at its Reliquias silver-zinc-lead polymetallic mine in Peru’s Huancavelica district. Rehabilitation of the concentrator plant is approximately 95% complete, and the company remains on track to achieve first production in the third quarter of 2026. The crushing circuit is now operational, while the grinding and flotation circuits have completed no-load testing. Low-grade ore is currently being used for industrial trials to fine-tune operating parameters ahead of commercial throughput. Silver Mountain has completed more than 3,000 metres of underground development and stockpiled approximately 12,000 tonnes of ore at surface, providing a feed buffer during the initial ramp-up. The tailings facility, water treatment plants and power infrastructure are also operational and permitted. Reliquias hosts silver-zinc-lead-gold-copper vein mineralization. Following the expected production restart in Q3, the company plans to release an updated mineral resource estimate and preliminary economic assessment in Q4 2026 to evaluate the mine’s longer-term production and expansion potential.

Shanghai Metals Market (SMM) is thrilled to announce that our flagship event 2026 SMM Germany Solar & Energy Storage Forum was successfully held at the Hotel Novotel Muenchen Messe, Munich, Germany on June 23! Focused on the front-line European PV+ESS market, the forum brought together high-ranking executives and veteran industry experts from the global new energy industry chain, serving as a professional platform for in-depth China-Europe PV+ESS industry collaboration and dialogue. Opening Remarks From PV Boom to Storage-Driven Power Markets in Europe Guest Speaker: Liao Yu, Power Operation Center General Manager, LONGi Green Energy Drawing on the real landscape of Europe's energy transition, Mr. Liao systematically addressed four major industry topics: Analyzing the market dynamics behind the surge in PV capacity and frequent negative electricity prices; Reviewing new energy storage policies in key countries such as Germany and the UK, including Germany's energy storage strategy, the UK's capacity market reform, and new grid connection queue regulations; Comparing subsidy incentives and self-consumption revenue models for commercial & industrial and residential ESS across different countries; Examining the current European regulatory framework and its profound implications for the global expansion of China's PV+ESS industry chain. He noted that the industry's logic has fundamentally shifted: PV is no longer just about module manufacturing, nor is it limited to PV + energy storage hardware sales. What we are discussing is not only about cost reduction and efficiency gains in hardware, but also about how to leverage energy storage to enhance generation asset returns, control operation and maintenance costs, and optimize enterprise-wide energy asset life cycle management. Keynote Speech: How China’s Export Tax Policy and Raw Material Volatility Affect PV and Battery Pricing? Guest Speaker: Ryan Tzy Tze Yang, PV Modules and End Use Market Analyst, SMM Ryan pointed out that, hit by the dual cost shock from the cancellation of export tax rebates and raw material price fluctuations, module export quotations rose to around $0.12/W in January. Higher costs are prompting overseas clients to prioritize high-end technology pathways, accelerating the industry’s product mix shift toward high-efficiency modules. Additionally, polysilicon and silver account for a significant share of cell manufacturing costs, and their price movements remain the core variables driving cell cost fluctuations. Global PV installations entered a period of adjustment in 2026 : constrained by grid integration bottlenecks across major regions and tightening policies in multiple countries, new PV installations worldwide are expected to temporarily decline to 435 GW in 2026. Amid this deep adjustment cycle driven by infrastructure and policy constraints, the structure of end-use applications is expected to show resilience, with utility-scale projects maintaining a stable share of approximately 56%. Panel Discussion: EU Solar Projects and China’s PV Supply Chain – Opportunities and Challenges Moderator: Cleo Zhou, Overseas Business Development Manager, SMM Panelists: Ksenia Dray, Global Solar Supply Chain Leader, Res Group Pierre-Louis Raust, Head of Design and EPC Procurement, Power Capital Renewable Energy Allen Xu, Deputy General Manager, Global Marketing, Gokin Solar Co., Ltd. Huang Gengwen, Executive Dean, Module Department, Crystalline Silicon Research Institute The guests noted that the lengthy construction cycle of Europe’s local PV industry chain, wild swings in energy and raw material costs, protracted project approval and grid connection processes, local manufacturing policies that inflate supply chain layout costs, differences in technology roadmap choices and compliance standards between European and Asian industrial systems, the lack of end-user control over upstream resource prices, coupled with capacity diversion by emerging markets, are the main obstacles hindering China-EU cooperation in advancing EU PV projects. In terms of opportunities, the China-EU PV industry is highly complementary, with China offering mature capacity, complete system solutions, cost hedging tools, localized production line support, and mass production cost reduction capabilities, while Europe provides cutting-edge innovative technologies; this division of labor can jointly achieve Europe’s PV goals. Meanwhile, new technologies, customized solutions, and hedging instruments can mitigate Europe’s challenges with costs and project implementation timelines. Keynote Speech: How Technology Choices Shape BESS Economics Guest Speaker: Michael Strobel, Business Director Europe, Great Power Three Core Dimensions of BESS Economics Safety Value: Safeguard asset security and ensure business continuity and stable operation; Investment Return: Enhance life cycle return rates and reduce the levelized cost of energy storage; O&M Management: Ensure reliable equipment operation and cut full-cycle O&M expenses. High Safety Is the Core Principle of BESS Battery Cell : Use of high-quality LFP battery cells; advanced aerogel insulation technology to block thermal propagation; certified to GB, UL, IEC, UN, MSDS, and RoHS standards. Battery Pack: Battery Pack: Aerogel insulation layers block thermal propagation between battery cells. Fuse protection circuits reduce short-circuit risks; Battery Cluster: multi-level (fuses/contactors/disconnect switches) protection; Comprehensive Protection: overcharge/overdischarge/short-circuit protection. Panel Discussion: BESS Project Development in Europe: Grid, Permits, and Reality on the Ground Moderator: Liao Yu, Power Operation Center General Manager, LONGi Green Energy Panelists: Jan Fousek, CEO, Czech Energy Storage Association Gery Bonduelle, Chief of Business Development, Verkor Antonio Montoto, Head of Storage, Greenvolt Power Joanne Xu, Overseas Business Development Manager, SMM The guests noted that, at the grid level, energy storage demand across European countries far exceeds the existing grid capacity. While the responsibilities of TSOs and DSOs are clearly defined, grid operators lack sufficient resources and face approval delays, and foreign investment access is restricted with local content requirements. Policies vary widely across countries; Germany adopts a first-come, first-served mechanism for grid connection quotas, leading to clear regional market differentiation. Moreover, the permitting and implementation stage is fraught with obstacles. Large-scale centralized grid connections bring equipment compatibility and logistics challenges, such as the transportation of large-capacity storage containers. Geopolitical shifts, policy changes, and ongoing fluctuations in raw material and electricity prices constantly erode project returns. The core Central European market is fragmented across multiple countries. As a 10- to 20-year long-term investment, simply chasing low-cost equipment is not advisable. At the same time, future additional electricity loads will further strain the existing grid capacity. In response to these pain points, the speakers also proposed practical solutions: on the one hand, establish an industry association to interface with power grid operators in a unified manner, conduct pre-review of project documentation in advance, and streamline the review process; on the other hand, coordinate multiple parties including EPC contractors, the power grid, equipment suppliers, and financial institutions. For development outside China, rely on local partners to leverage the complementary strengths of the China–Europe industrial ecosystem. Enterprises can also effectively reduce risks by completing end-to-end preparations in advance, establishing a pre-operations and maintenance system, and implementing compliance support in phases. In the long run, grid connection approvals, delays in power grid capacity expansion, and price fluctuations remain the industry’s core challenges. However, the energy storage track offers ample investment opportunities; supported by integrated system solutions, new technology iterations, and industry collaboration, deployment challenges can be gradually alleviated. Meanwhile, the speakers also expect the market to see more high-quality standalone energy storage projects with sustainable and stable operations. That's the end of our 2026 SMM Germany Solar & Energy Storage Forum. Thank you for the support of all industry peers. See you next year!