Analysis of China's Platinum and Palladium Import Market in H1 2026 In H1 2026, China's imports of platinum and palladium showed divergent trends. Imports of unwrought platinum and platinum powder continued steady growth, up about 17.8% YoY cumulatively in H1, while imports of unwrought palladium and palladium powder surged, up 116% YoY cumulatively in H1. Overall, imports of platinum group metals maintained resilience, driven by industrial demand from glass fiber and hydrogen energy, while the surge in palladium imports was closely tied to factors including a low base, arbitrage on the price spread between Chinese and overseas markets, and a policy window for Russian palladium trade. H2 trends will depend on global mine supply, changes in automotive and new energy demand, the ongoing impact of international geopolitics on Russian palladium trade, and arbitrage opportunities between Chinese and overseas markets. June Imports of Unwrought Platinum and Platinum Powder Up 2.5% MoM H1 Cumulative Imports Up 17.8% YoY In June 2026, China's imports of unwrought platinum and platinum powder were 10.67 mt, up 2.5% MoM and up 27.9% YoY; H1 cumulative imports were 48.18 mt, up 17.8% YoY. In terms of trade mode, imports of unwrought platinum were mainly via Ordinary Trade, accounting for over 90%. By source, South Africa remained the top supplier, followed by Russia, Zimbabwe, etc. As the world's largest platinum producer, South Africa's mine supply situation significantly impacts China's imports. Since 2026, power shortages in South Africa have eased somewhat and mine expansions have advanced, but aging mines and insufficient capital expenditure still constrain supply elasticity, keeping overall supply rigid. On the demand side, the main reasons supporting the growth in platinum imports were strong demand from the glass and glass fiber industry, where platinum demand surged 83% YoY to 12 mt, driving overall industrial demand up 9% YoY; and the continued expansion of platinum demand from the hydrogen energy and fuel cell industry, with PEM electrolyzers, fuel cell vehicles, etc. becoming core growth drivers. In H1 2026, platinum prices were under pressure and consolidating overall. Affected by the US Fed's hawkish stance, a stronger US dollar index, and concerns over global economic growth, the most-traded NYMEX platinum futures contract fluctuated in the $1,930–2,070/oz range in late May, while the most-traded GFEX platinum futures contract consolidated around 485 yuan/g. High and volatile prices led to strong wait-and-see sentiment among downstream consumers, sluggish spot trading, and a phased slowdown in the pace of imports. H2, as global platinum inventories continue to destock and electronics & hydrogen energy projects accelerate, China's platinum imports are expected to maintain mild growth, though caution is needed regarding the suppression of industrial demand by a macroeconomic downturn. June Imports of Unwrought Palladium and Palladium Powder Up 17.6% MoM H1 Cumulative Imports Double YoY In June 2026, China's imports of unwrought palladium and palladium powder were 4.75 mt, up 17.6% MoM and up 114% YoY; H1 cumulative imports were 26.97 mt, up 116% YoY. By trade mode, unwrought palladium imports were also dominated by Ordinary Trade. By import source, Russia and South Africa were the main suppliers. According to China Customs sub-item data for May 2026, China imported 1.93 mt of palladium from Russia and 1.89 mt from South Africa that month, with the two countries together accounting for over 85%. The sharp surge in palladium imports was mainly driven by: first, a low base in the year-ago period – monthly palladium imports in H1 2025 mostly ranged between 1 and 3 mt, creating a significant low base effect; second, in March–April 2026, with the US Commerce Department’s final anti-dumping determination on Russian unwrought palladium approaching, some traders rushed to import Russian palladium ahead of the final USITC ruling and tariff implementation, and China’s palladium imports in April hit a multi-year monthly record; third, substantial import arbitrage opportunities emerged in Q1, and arbitrage players locked in overseas supplies through import channels and sold on the futures market, leading to heavy warrant generation and boosting domestic spot palladium supply. Yet the palladium market is still under fundamental pressure. Globally, automotive catalysts account for as much as 83% of palladium consumption, while vehicle electrification continues to exert long-term pressure on gasoline-vehicle catalyst demand. Palladium’s core demand faces structural contraction risks, and mounting global growth concerns may push palladium into a structural surplus cycle. On the supply side in May 2026, Nornickel’s platinum and palladium production fell sharply in Q1 due to western sanctions, which provided some support to palladium’s price floor but was insufficient to reverse the weak demand landscape. Looking to H2, as the impact of the USITC final ruling is gradually digested and earlier concentrated cargo arrivals are absorbed by the market, palladium imports are expected to pull back from the high levels seen in Q2. For the full year, palladium imports will still maintain relatively high YoY growth, but are likely to pull back MoM in H2. H2 Outlook Overall, China’s platinum and palladium imports in H1 2026 showed a pattern of “stable platinum, strong palladium.” Platinum imports stayed resilient, supported by demand from glass fiber and hydrogen energy, and are expected to maintain mild growth in H2; palladium imports surged sharply on the back of the trade policy window and price spreads between Chinese and overseas markets, but growth is likely to slow marginally in H2 as the policy impact fades and structural demand-side pressures emerge. The following factors warrant close attention in H2: 1. Mine supply: the impact of South Africa’s electricity situation and mine capital expenditure on platinum supply, and the effect of changes in Nornickel’s output on palladium supply; 2. Trade policy: the impact of the anti-dumping case and sanctions on Russian palladium on the pace of China’s palladium imports; 3. End-use demand: the boost to real platinum and palladium demand from domestic vehicle production and sales, the implementation of hydrogen energy projects, and technology roadmap shifts in the glass and glass fiber industries; 4. Price spreads and the futures market: the influence of price spreads between Chinese and overseas markets and GFEX platinum and palladium futures delivery conditions on the import window.

Recently, the 500 kV transmission project of the Chifeng 1 GW Desert Wind-Solar-Storage Base, built with the participation of CEEC North China Electric Power Engineering Institute, was commissioned. Rooted in the new energy strategic layout of eastern Inner Mongolia, the Chifeng 1 GW Desert Wind-Solar-Storage Base project is a controlling, critical, and supporting backbone project for optimizing the regional power grid structure, breaking the bottleneck in green electricity consumption, and consolidating energy supply capacity. North China Institute is responsible for the EPC contract of the project’s 200 kV/500 kV collection station and the supporting 150 MW/300 MWh ESS. The commissioning of this project has opened a key corridor for delivering GW-level green electricity from Chifeng, enabling the transmission of approximately 2 billion kWh of clean electricity annually. It will effectively enhance the regional power grid’s dispatch capacity and resource complementarity.

Recently, Chint Green Energy, in collaboration with renowned Australian system integrator DS Energy, successfully completed the full construction and grid connection of a PV project at the Mercy Community Residential Aged Care facility. As another notable achievement of Chint Green Energy focusing on the distributed PV sector in the Australian market, this project not only significantly reduces the operational costs of aged care facilities through clean electricity, but also demonstrates, through tangible emission reductions, the infinite possibilities of deep integration between green energy and social well-being.

[SMM Aluminum Express] On July 18, the Chenfeng Carbon Green and Energy-Saving Integrated Project of Qiya Xinjiang Group achieved another critical construction breakthrough as its core baking workshop successfully completed equipment installation and officially entered the full-line interlocking commissioning phase. This milestone, following the trial production at the assembly workshop on June 15, means that the project’s entire production process has been fully integrated, bringing it one step closer to formal commissioning. The project is a core supporting initiative for Qiya Xinjiang Group to complete the “coal – electricity – aluminum – carbon” integrated industry chain. Located in the Zhundong Economic and Technological Development Zone in Changji, Xinjiang, it is planned to produce 200kt of prebaked anodes annually, aiming to supply high-quality prebaked anodes for the group’s internal aluminum production, thereby ensuring self-sufficiency and reducing dependence on external procurement and logistics costs.

SMM, July 23: To deepen exchanges within the lead and zinc industry, facilitate information channels, and accurately capture zinc industry development trends and market movements, on July 22, a team from SMM Information & Technology Co., Ltd. (SMM), including copper-lead-zinc senior analyst Geng Zhiyao and zinc senior analyst Li Hanyu, visited Yunnan Luoping Zinc & Electricity Co., Ltd. for an exchange meeting and were warmly received by relevant company leaders. During the meeting, relevant personnel from Luoping Zinc & Electricity introduced the company's operational status, industry chain layout, and medium and long-term strategic plans to the SMM team. The two sides engaged in in-depth discussions on topics including domestic zinc raw material supply, smelting cost changes, zinc product market trends, downstream demand trajectories, comprehensive recovery of associated rare and precious metals, and the development direction of green smelting. Leveraging SMM's industry database, SMM analysts shared supply-demand analyses for the zinc market, price dynamics, and potential industry opportunities, and exchanged views with the company on challenges in industrial development. Luoping Zinc & Electricity, drawing on its own strengths in hydropower integration, mine resources, and integrated smelting and deep processing, outlined its advancement approaches in resource expansion, technological R&D, and extension into new materials. This visit established a bridge for industry information sharing. In the future, both parties will maintain regular communication and exchanges, continuously collaborate to explore paths of industrial synergy, and jointly promote the steady and high-quality development of the zinc industry. About Yunnan Luoping Zinc & Electricity Co., Ltd. Yunnan Luoping Zinc & Electricity Co., Ltd. was established in 2000 and listed on the main board of the Shenzhen Stock Exchange in 2007 (stock code 002114). Its largest shareholder is Qujing Development and Investment Group, holding a 22.3960% stake, and the actual controller is the Qujing Municipal State-owned Assets Supervision and Administration Commission. Key Assets: It encompasses three core resource sectors: minerals, hydropower, and zinc smelting, housing production units such as the Fule Lead-Zinc Mine, Lazhuang Power Plant, zinc smelter, comprehensive utilization plant, and ultrafine zinc powder plant. The company boasts an integrated capacity of processing 100,000 mt of raw ore annually, producing 120,000 mt of electrolytic zinc, 140,000 mt of sulphuric acid, 12,000 mt of ultrafine zinc powder, and generating 250 million kWh of electricity per year, with an annual output value exceeding 2 billion yuan. This forms a complete industry chain of "power generation — mining — smelting — rare and precious metals recovery — new materials." Coupled with its self-contained hydropower energy loop, this creates a unique core competitive advantage, positioning the company as a leader in the non-ferrous metal smelting sector in Southwest China. Main Businesses: Hydropower generation, mining of non-ferrous metals such as lead and zinc, zinc smelting, and production and sale of extended products. The products include zinc sulfide concentrates, lead concentrates, zinc ingot, industrial sulphuric acid, cadmium, ultrafine zinc powder, germanium concentrates, silver concentrates, copper concentrates, zinc alloy, industrial and residential electricity, and edible rapeseed oil. The company has successively received honors such as “Contract-honoring and Credit-worthy Enterprise” at provincial and municipal levels, “Key Industrial Enterprise of Qujing City”, National Intellectual Property Advantage Enterprise, High-tech Enterprise, and National Laboratory Accreditation Certificate. Strategic Development: In terms of hydropower resource development, first, it invested in and participated in the construction of the Luoping County Laodukou Hydropower Station with an installed capacity of 37,500 kW, holding 37% equity; second, it invested in and participated in the construction of the Laojiāngdǐ Hydropower Station in Xingyi City, Guizhou Province, with an installed capacity of 100,000 kW, holding 33% equity. In terms of lead-zinc mine development, first, it invested in and participated in the development of the Jinsha Lead-zinc Mine in Yongshan County, holding 23.2% equity. Second, through a private placement of shares, it completed the overall acquisition of Puding County Xiangrong Mining, Derong Mining, and Hongtai Mining Co., Ltd. under Guizhou Fanhua Mining Group Co., Ltd., gaining control of the mine assets held by the three companies. In terms of business development, first, it acquired the sulphuric acid plant of the former Luoping County Zinc Electric Company. Second, it built a rapeseed oil production line with a capacity of 10,000 mt per year. Third, it established a wholly-owned subsidiary, Yunnan Luoping Zinc Electric New Materials Co., Ltd., to extend the industry chain through zinc alloy products. Technological Innovation: The company holds 78 patents. Among them, the comprehensive treatment and recovery of valuable metals from high-iron, low-germanium zinc oxide calcine and zinc sulfite is at an industry-leading level. SMM Contact: Geng Zhiyao Tel: 13818541149

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: ► ► ► ► ► ► ► ► ► ►