This week, the second-life application market operated steadily overall. Ternary product prices weakened slightly, while quotations for other categories remained basically stable. On July 30, the Ministry of Industry and Information Technology abolished the relevant second-life application policies and standards, and 100 second-life battery producers were removed from the compliance list. The industry entered a period of policy digestion, and the market's operating logic changed. Cost side, raw material price trends diverged: lithium carbonate edged up, cobalt sulphate continued to grind lower, and nickel sulphate was broadly stable. The raw material side had a limited impact on second-life costs. Supply side, as the policy took effect, inventory held by former second-life battery producers could no longer circulate under the "second-life" label, and the pace of flows to the recycling segment accelerated noticeably. Some enterprises offloaded goods at low prices to recover funds, putting some pressure on market prices. Demand side, core downstream applications such as e-bikes were explicitly prohibited by the policy, so second-life demand contracted directly. Wait-and-see sentiment was strong in sectors such as telecom backup power; downstream purchase willingness was generally low; and overall market transactions were relatively subdued. Looking ahead, the short-term market is expected to remain mainly stable. Under inventory diversion pressure, ternary products still have room to edge down slightly. The pace of detailed policy rollout and enforcement intensity will be key to the subsequent market trend.

[SMM Analysis]Currently, domestic magnesium prices in China remain range-bound at low levels with significantly narrowed fluctuations. Combined with industry professionals taking summer holidays and a quiet market news front, overall trading sentiment remains subdued. As the market enters the critical August window, magnesium prices are approaching a new turning point, where supply-demand dynamics, regional supply disparities, and cost support will jointly dictate the market's trajectory.

Shanghai spot copper quotes shifted rapidly from a premium to a discount this week. At the start of the week, typhoon weather disrupted cargo pick-up and transportation at some warehouses in east China, reducing cargo movement efficiency and offering brief support to spot premiums; however, as delivery approached, the backwardation between adjacent contract months widened sharply, suppliers’ contract rollover costs rose significantly, and their willingness to sell increased accordingly. Standard-quality copper quotes slid quickly from a premium at the start of the week to around a discount of 300 yuan/mt. Meanwhile, SHFE copper prices stayed high, end-use demand remained weak, and trading in lower-priced non-registered copper was relatively active, but this failed to drive a marked improvement in overall buying. On the inventory side, Shanghai social inventory came in at 79,300 mt, up 1,000 mt from this Monday; Jiangsu social inventory came in at 18,100 mt, unchanged from this Monday, and spot supply has not yet tightened notably. Looking ahead to next week, delivery and contract rollover will continue to dominate spot quotes. If the market continues to quote against the SHFE copper 2608 contract, the wide backwardation between adjacent contract months and suppliers’ selling pressure may keep spot quotes at a deep discount. As the pricing basis gradually shifts to the SHFE copper 2609 contract, spot quotes will show a marked recovery; however, this apparent rise in premiums mainly stems from the switch in contract price spreads and does not signal a genuine strengthening in spot supply and demand. From the demand side, high copper prices will continue to limit downstream purchasing volumes, and the market is expected to see persistent need-based buying; low-priced cargoes and cargoes from brands with higher recognition may be relatively favoured. Overall, Shanghai spot copper quotes are expected to shift to a premium against the SHFE copper 2609 contract next week, but the actual transaction price center will remain under pressure from weak end-use consumption, and price spreads between brands and divergence in transaction activity may continue to widen.

SMM August 13: Domestic Bauxite: Domestic Ore Supply Disruptions Linger, Mainstream Prices Remain Stable Affected by coking coal-related events in Shanxi, mining at domestic bauxite main producing areas such as Shanxi and Henan was somewhat disrupted in the short term, and ore supply showed phased changes. Meanwhile, alumina prices remained at relatively high levels, and alumina enterprises had moderate tolerance for rising raw material prices, mainly passively accepting current ore prices in the short term. As of today, in Shanxi, VAT-exclusive EXW transaction prices at crushing plants for bauxite with an Al/Si ratio of 5 and 60% alumina content were around 530-550 yuan/mt; in Henan, VAT-exclusive EXW transaction prices at crushing plants for bauxite with an Al/Si ratio of 5 and 60% alumina content were around 500-540 yuan/mt; in Guiyang, VAT-inclusive EXW prices for bauxite with an Al/Si ratio of 6 and 60% alumina content were 490-540 yuan/mt; in Guangxi, VAT-exclusive EXW transaction prices at crushing plants for bauxite with an Al/Si ratio of 6 and 53% alumina content were 320-335 yuan/mt. Imported Bauxite: August Contract Prices Raised Slightly, Imported Ore Price Divergence Between Upstream and Downstream Intensifies Data as of August 7 showed that total weekly port departures of bauxite at main ports in Guinea were 4.5611 million mt, up 690,800 mt from the previous week, with shipments higher. As US-Iran tensions heated up again, oil prices rebounded, and ocean freight rates from Guinea to China showed an upward trend, with market quotes rising to around $35/dmt; costs at various mines also increased to varying degrees. Coupled with policy uncertainty in Guinea and transport affected by severe weather, mines in Guinea tightened control over bauxite shipments. In Australia, as of August 7, total weekly port departures of bauxite at main Australian ports were 926,700 mt, down 126,000 mt from the previous week, with shipments basically flat. Going forward, attention should be paid to the shipment pace of Australian mines and changes in port departures. As of August 7, China's bauxite port arrivals were 5.2267 million mt, up 1.352 million mt from the previous week. Continuous attention should be paid to the impact of elevated and fluctuating oil prices and ocean freight rates on future port arrival pace and landed costs. Price-wise, Guinea's August bauxite long-term contract prices rose slightly compared with July, settling at $73-74/mt, but downstream price acceptance was relatively limited. Meanwhile, bauxite inventories at alumina refineries in China remained high. This week, alumina refinery bauxite inventories were relatively stable, with days of inventories at around 96 days, capping ore prices to some extent. For Guinean bauxite, with transportation costs from Guinea to China rebounding and shipment reductions caused by the traditional rainy season and severe weather adding to mine costs, offers from upstream sellers and traders remained firm and edged up slightly to a high price range around $73/mt; at Chinese alumina refineries, under the combined impact of persistently high inventory and shrinking margins, intended transaction prices held at $70-71/mt; upstream and downstream participants in the bauxite market diverged sharply on prices, transactions slowed, and the standoff carried over from last week. As of this Thursday, Guinean bauxite FOB quotes were $38-42/mt, with the average price unchanged from last Thursday; Guinean bauxite CIF prices were $70-74/mt, with the average price unchanged from last Thursday; the SMM imported bauxite index price stood at $71.72/mt, up $0.15/mt from last Thursday. Going forward, bauxite prices will still depend on cost conditions at individual mines, the traditional rainy season in Guinea, and the impact of the Guinean government's bauxite export quota policy on overall shipments. SMM will continue to closely monitor bauxite market trends and transaction activity. Overall , domestic ore prices held at current levels; meanwhile, inventory at Chinese alumina refineries remained high (about 96 days), and the bid-offer standoff between buyers and sellers continued; uncertainty over Guinea's quota policy, lower shipments, and the traditional rainy season also put some upward pressure on bauxite costs. In the short term, with shipments reduced by the dual impact of costs and policy, imported ore prices are expected to continue their high-level standoff pattern; afterward, close attention should be paid to the implementation of Guinea's quota policy and ocean freight rate trends.

[SMM Molybdenum Daily Review: Steel Tender Center Moves Up, Molybdenum Market Consolidates on a Strong Note]

[SMM Lithium Battery Electrolyte Market Weekly Review: Electrolyte Prices Remained Stable This Week (Aug 10-13, 2026)] From August 10 to August 13, 2026, electrolyte prices remained stable. Future electrolyte price trends still require continuous monitoring of raw material price fluctuations and their pass-through.