[SMM Tin Morning Brief: 400,000 Curse Hard to Break, Wait-and-See Sentiment Heavy in Tin Market Pre-Holiday]

SMM July 2 News: Fed Chairman Kevin Warsh stated on Wednesday that US inflation upside risks have clearly cooled over the past four weeks, easing market concerns about aggressive rate hikes; he also indicated that no further forward guidance would be released on subsequent interest rate policy, refusing to disclose whether the US Fed needs to consider a rate hike at its next meeting; the US dollar weakened, and precious metals rebounded. As of around 16:09 on July 2, COMEX gold dropped 0.11% to $4,077.9/ounce; SHFE gold main contract rose 1.53% to 890.66 yuan/g; COMEX silver dropped 1.1% to $59.845/ounce; SHFE silver main contract rose 1.91% to 14,650 yuan/kg; silver T+D rose 2.95% to 14,551 yuan/kg. In the precious metals stock market, as of the close on July 2, the precious metals sector rose 4.21%, with individual stocks: Zhaojin Gold and Chifeng Gold hit their daily limit up, while Shanjin International, Xiaocheng Technology, Zhongjin Gold, and Western Gold led the gains. News [Warsh: Inflation Eases Over Past Four Weeks, AI Is Reshaping Economy, Forward Guidance Loses Necessity] On July 1, at the ECB's annual central bank forum in Sintra, Portugal, Warsh again clearly stated that the US Fed would not provide forward guidance on the future interest rate path , hoping that policymakers can engage in thorough discussions based on the latest data at each meeting, rather than previewing the policy direction to the market in advance. He said that US inflation risks had eased over the past four weeks, and the supply expansion brought by AI could profoundly change how the economy operates, with the US at the center of this transformation, but whether AI ultimately leads to inflation or deflation should be judged by the central bank based on data. Warsh said the US Fed is “charting a new path” and will no longer hint at the direction of interest rates in advance as it did in the past. He said: “We will hold our next meeting in four weeks, and I hope we can have a real family-style debate then.” He reiterated that forward guidance is not the right policy in the current economic situation, and the US Fed will continue to base its decisions on the latest economic data in the future, rather than committing to a policy path in advance. This means that the US Fed will rely more on real-time economic data rather than sending policy signals to the market in advance. Spot Market Silver In the spot market: On July 2, the reference average factory price of SMM 1# silver in the morning was 14,558 yuan/kg, up 3.35% from the previous trading day. In the spot market, overall offers remained firm early in the month, but transaction follow-through was slightly weak, and consumption performance fell short of expectations. As silver prices rebounded slightly, downstream wait-and-see sentiment intensified. In Shanghai, morning offers were mainly at TD+5 to +15 yuan/kg. Some smelters quoted on the high side, but actual buying interest was weak, with most deals clustered around TD+10 yuan/kg. In other regions, low-priced cargoes had basically been cleared, while offers in Shenzhen were mostly around TD+5-10 yuan/kg. Today, the market quoted premiums for the SHFE most-traded contract 2608 at a discount of 30 to 20 yuan/kg. Overall, a slight cooling in rate-hike expectations provided some support for precious metals prices. At the start of the month, the spot direction remained unclear. Maintenance at copper plants last month caused a slight disruption on the supply side, and offers generally maintained a slight premium structure. Views From Various Parties Regarding the outlook for precious metals, some institutions’ views are as follows: On July 1, the World Gold Council released the “2026 Mid-Year Outlook for the Global Gold Market.” Looking ahead to H2, gold’s valuation framework indicated that gold will continue to serve as a barometer of the global macro economy, with three main possible scenarios. From current levels, gold prices were broadly in line with market consensus: the market expected the US Fed to raise rates at least once in 2026, most likely in October; the Bank of England, the Bank of Japan, and the European Central Bank were all set to tighten policy; and US Q2 inflation was expected to peak, near $3.9. If there were no major changes in the above environment, gold prices may trade around $4,100/oz within the year, with a fluctuation range of about ±5. If geopolitical or economic conditions deteriorate, or if interest-rate expectations shift, gold is expected to regain its upward momentum; however, only sufficiently strong signals of a global economic slowdown would be likely to drive a breakout to the upside. On the downside, a stronger US dollar, rate hikes exceeding expectations, and a rebound in market risk appetite were the main headwinds for gold prices; if gold prices remain below $4,000/oz, it may trigger further selling. However, based on historical performance, if gold prices fall by more than 10% from current levels, it may trigger “buy-the-dip” demand from long-term investors in multiple regions. State Street Investment Management said that, as the opportunity cost of holding gold and heightened volatility weighed on investor sentiment, bullish gold trades had been weak, and spot gold prices repeatedly tested the $4,000/oz support level. State Street believed that, although gold prices may be more volatile than in 2024-2025, the gold bull-cycle still has upside room, and the US Fed’s hawkish policy shift was expected not to change gold’s post-pandemic structural trend. State Street noted, “Since the US-Iran conflict, China’s retail gold imports have surged, and local premiums have risen in tandem, reflecting tightening fundamentals in China’s gold supply-demand balance.”State Street expects that over the next six to nine months gold prices could rise to the $4,750 to $5,500 per ounce range, with strong support in the $3,750 to $4,000 per ounce area. However, compared with the macro environment from January to February, the probability of gold prices reaching $5,500 to $6,250 per ounce is relatively small. (Zhitong Finance) State Street Investment Management strategists noted in a report that gold prices could reach $5,000 per ounce by early 2027, as the gold bull cycle remains persistent. They believe that as U.S. government debt rises, gold's role as a currency hedge is expected to be supported, while actual demand for gold remains strong. Global gold fund holdings (as a share of global mutual fund and exchange-traded fund assets) currently remain below State Street's target allocation of 3% to 10% for most portfolios. Moreover, they added that a hawkish pivot by the Fed should not alter gold’s structural post-pandemic trend. State Street expects base bullion prices to rise to $4,750 to $5,500 per ounce in the next six to nine months. (Jinshi Data APP) Analysts at Saxo Bank said, "The market has not yet attracted enough buying interest to establish that level as a support level." They also pointed out, "Even though energy prices have pulled back recently, investors still expect the Fed may further tighten monetary policy to combat an inflation rebound, and as a result, gold prices fell 14% in Q2, marking the worst quarterly performance since 2013." (Jinshi Data APP) CICC's latest research report pointed out that gold may have already overpriced rate hike expectations. Fed rate hikes are still not the base case, and the gold market may have overly priced in rate hike expectations, leaving room for a pullback this year. CICC's macro team believes that employment and consumption pressures, along with the expanding financing needs of the U.S. AI economy, may make it difficult for the Fed to materially turn hawkish, and monetary policy may be "hawkish in words but dovish in action." Based on the implied interest rate expectations model from gold prices, it is estimated that the current gold price around $4,000 per ounce has fully priced in three to four rate hikes, exceeding the rate hike expectations priced in by the interest rate futures market. Looking ahead, after the decline in oil prices is further reflected in U.S. short-term inflation data, the gold market's pricing of rate hike expectations may be corrected, and futures market short-term funds may have opportunities to cover short positions. (Jinshi Data APP) Li Xunlei, Deputy Director of the China Chief Economist Forum, pointed out that gold's long-term trend exhibits long bear markets and short bull markets. Since 1971, 30 years have been bear markets and 25 years have been bull markets, but each bull market has seen gains of over fivefold. A bull market typically lasts around 10 years. This gold bull run has now lasted nearly 10 years, with prices tripling during that time, so caution is warranted at this stage. (Jin10 Data App) Deutsche Bank analyst Michael Hsueh said the bank has cut its Q3 gold price forecast by over 20% to $4,300/oz and lowered its Q4 forecast by 17% to $4,800/oz. "Potential investors who would normally provide support are notably absent," he said, pointing to weak demand for exchange-traded funds and reduced buying appetite in some countries. (Jin10 Data App) Macquarie said profit-taking weighed on silver prices last month, and price action is once again driven by macro factors amid rising expectations for US Fed interest rate hikes. Similar to gold, silver prices are expected to move sideways for the rest of the year, then gradually decline into 2027, with inflationary pressures and the likelihood of further US Fed rate hikes limiting upside room. The higher inflation and bond yields, the greater the downward pressure. Silver, in particular, has been more susceptible to a pullback after outperforming gold, driven by bullish sentiment fueled by supply tightens, low inventory, and strong demand. Historically, silver pullbacks tend to be rapid. Macquarie expects silver to trade at $70/oz in Q4 this year and pull back to $65/oz by the end of 2027. (Jin10 Data APP) Recommended reads:

Zhongke Fuhai Technology Co., Ltd., a domestic enterprise in the low-temperature equipment field, recently completed a Pre-IPO round of equity financing, with a financing amount of 1 billion yuan , and the investor is Guoke Capital under the Chinese Academy of Sciences. Public information shows that Zhongke Fuhai has completed multiple rounds of financing previously. The company completed its Series A financing in December 2020, led by CICC Capital; its Series B financing in May 2022, led by Sinopec Capital; and its Series C financing in August 2023, co-led by Chengtong Mixed-Reform Fund and CCB Equity, with a post-investment valuation reaching 7.8 billion yuan. In September of the same year, Zhongke Fuhai was listed among the 2023 China Hydrogen Energy Unicorn Enterprises. In terms of capital operations, Zhongke Fuhai completed its joint-stock transformation in October 2024. In April 2025, the company transferred 43,311,094 shares, accounting for 13.11% of the total share capital. The relevant transfer announcement shows that, given the uncertainty regarding the listing time on the STAR Market, the company was planning a Hong Kong stock market listing plan at that time. On October 13, 2025, Zhongke Fuhai handled tutoring and filing registration with the Beijing Securities Regulatory Bureau, with the tutoring institution being Zhongtai Securities; the legal service institution and accounting firm were Beijing Tongshang Law Firm and Baker Tilly China, respectively. After the completion of this Pre-IPO round of financing, the company's subsequent capital market process has drawn attention. According to information, Zhongke Fuhai was established in August 2016, headquartered in Beijing, and originated from the Technical Institute of Physics and Chemistry of the Chinese Academy of Sciences. It is a high-tech enterprise transformed from low-temperature engineering technology achievements. The company's business covers low-temperature system design, manufacturing, and operation, and it is an integrated service provider in the fields of energy equipment, gas engineering, and green gas. With the expanding applications of liquid hydrogen, green hydrogen, and low-temperature equipment, the company's role in the hydrogen energy industry chain is expected to be further strengthened.

SMM July 2 news: Metal markets: As of midday close, base metals on the domestic market mostly fell. SHFE copper and SHFE aluminum each fell within 0.2%. SHFE lead fell 0.72%. SHFE zinc fell 1.04%. SHFE tin rose 0.15%. SHFE nickel fell 0.41%. In addition, the most-traded cast aluminum futures fell 0.97%, while the most-traded alumina futures rose 0.21%. Lithium carbonate most-traded futures extended gains from the previous three trading days, rising another 1.26%. Silicon metal most-traded futures fell 0.18%. Polysilicon most-traded futures rose 0.36%. Ferrous metals mostly fell. Iron ore rose 0.54%. HRC and rebar fell within 0.5% each, and stainless steel fell 0.92%. Coking coal and coke: the most-traded coking coal contract rose 0.28%, and the most-traded coke contract fell 0.96%. In overseas base metal markets, as of 11:39 am, LME metals nearly all fell. LME copper fell 0.31%, LME aluminum fell 0.19%, LME lead was flat at $1,866.5/mt. LME zinc fell 0.2%, LME tin edged lower, and LME nickel fell 0.4%. In precious metals, as of 11:39 am, COMEX gold fell 0.16% and COMEX silver rose 0.03%. In domestic precious metals: SHFE gold rose 1.28%; the most-traded SHFE silver contract rose 2.06%. In addition, as of midday close, the most-traded platinum futures rose 5.12%, and the most-traded palladium futures rose 2.82%. As of midday close, the most-traded European route container freight futures fell 2.12% to 2,561 points. As of 11:39 am on July 2, midday futures quotes for select contracts: Spot and Fundamentals Aluminum: In the morning session, the trading center of the SHFE aluminum 2606 contract was higher than that of the same period on the previous trading day. Warrant cargoes continued to flow out of the market, and circulating spot supply was generally ample. Downstream only saw sporadic restocking, and with bearish sentiment spreading in the futures market, end-user purchase willingness was overall weak. Mainstream transactions were at parity to a premium of 20 yuan/mt over the SHFE aluminum 2607 contract... Macro Front Domestic: [The mandatory national standard "Safety Requirements for Combined Driving Assistance System of Intelligent and Connected Vehicles" was officially released] On June 27, the mandatory national standard "Safety Requirements for Combined Driving Assistance System of Intelligent and Connected Vehicles" (GB 47955—2026), organized, formulated and centralized by the Ministry of Industry and Information Technology, was approved and released by the State Administration for Market Regulation and the National Standardization Administration, and is scheduled to be officially implemented on January 1, 2027. 《Safety Requirements for Intelligent Connected Vehicles—Combined Driver Assistance Systems, grounded in the needs of industry development and regulatory oversight in China, takes into account technical feasibility, product compatibility, and practical implementability, and establishes a safety indicator framework with clear requirements, comprehensive dimensions, and alignment with national conditions. First, it fully considers different product forms and technical routes, proposing applicable safety requirements for three types of combined driver assistance system products: basic single-lane, basic multi-lane, and navigation driver assistance. Second, based on China’s road traffic characteristics, it sets out baseline requirements to ensure the safe operation of combined driver assistance systems across dimensions such as functional requirements, data recording, and vehicle manufacturer safety assurance. Third, recognizing the core positioning of these systems as "assistance" in driving, it puts forward requirements for user usage and operation in areas such as human-machine interaction, usage instructions, and user training, providing a foundational guarantee for proper coordination between users and systems. Fourth, in line with the practical needs of China’s industry management, it builds a multi-tiered evaluation approach encompassing field tests, road tests, and document inspections to comprehensively assess system safety capabilities. The PBOC conducted ¥288.5 billion in 7-day reverse repos today, with an operation rate of 1.4%, unchanged from the previous level. Today, ¥370.5 billion in reverse repos matured. US Dollar: As of 11:39, the US dollar index fell 0.03% to 101.39. Fed Chairman Warsh said Wednesday that inflation expectations and inflation risks have both declined in recent weeks, while reiterating the Fed’s commitment to bringing inflation down to the 2% target. "In the first few weeks of this period, inflation expectations have pulled back, and inflation risks have also eased," Warsh said. "If households, the business community, or financial markets think the Fed is comfortable with inflation above 2%—well, they are likely to be disappointed: we will ensure price stability in the US." Fed Chairman Warsh sidestepped questions on whether the Fed might raise rates at its July meeting. "I hope that when we meet in four weeks, we can have a robust 'internal family debate,'" he said. "When we close the doors and sit down together, we will have a vigorous debate. But beyond that, I have no further information to share." Warsh made the remarks at the ECB’s annual policy conference in Sintra, Portugal; this was his first public appearance since his inaugural press conference at the Fed last month. Since then, investors have begun to anticipate more rate hikes from the Fed, but the market currently sees the likelihood of a first hike this month at less than 50%. According to CME "Fed Watch": The probability that the US Fed will keep rates unchanged in July is 71.7%, and the probability of a cumulative 25-basis-point rate hike is 28.3%. The probability that the Fed will keep rates unchanged by September is 36.1%, the probability of a cumulative 25-basis-point hike is 49.8%, and the probability of a cumulative 50-basis-point hike is 14.1%. (Jin10 Data APP) On the data front: US manufacturing expanded for a sixth consecutive month in June, with the war-driven surge in input costs easing. Printing, electrical equipment, and textiles led the gains, while paper products, furniture, and wood products contracted. Market attention has now shifted to Thursday's US employment report. Julien Lafargue, chief market strategist at Barclays Private Bank and Wealth Management, noted that with Warsh prioritizing inflation, the June non-farm payrolls data is "unlikely to change rate expectations on its own." He added that hiring related to the FIFA World Cup is expected to distort the data. (Wall Street Insights) Data front: Today will see the release of the US June unemployment rate, US June seasonally adjusted non-farm payrolls, US initial jobless claims for the week ended June 27, US June average hourly earnings year-over-year, US June average hourly earnings month-over-month, US May factory orders month-over-month, Switzerland June CPI month-over-month, eurozone May unemployment rate, among other data. Additionally, watch for: the Ministry of Commerce's regular press conference for the first week of July, and 2027 FOMC voting member and San Francisco Fed President Daly’s participation in a conference on the Spanish economy. Due to the US Independence Day holiday (July 3), the US June non-farm payrolls data will be released earlier on July 2 (Thursday) at 20:30 Beijing time. US stock markets will be closed on July 3 (Friday). Trading in precious metals, energy, foreign exchange, US Treasury, and equity index futures contracts on CME will end early at 01:00 Beijing time on July 4. Trading in Brent crude oil futures contracts on ICE will end early at 01:30 Beijing time on July 4. Investors are advised to take note. (Jin10 Data APP) Crude oil: As of 11:39, oil prices in both markets extended their decline from the previous two trading sessions, with WTI down 1.4% and Brent down 1.24%. International crude oil prices pulled back due to progress in Middle East peace talks. (Wall Street Insights) As supply through the Strait of Hormuz rebounded, OCBC Group Research lowered its quarterly crude oil forecasts through the end of Q2 2027. Two OCBC strategists noted in a research report: "With the signing of a memorandum of understanding between the US and Iran, shipping and crude oil supply through the Strait of Hormuz have rebounded."They also said, "Market expectations that crude oil supply would return to normal quickly pushed oil prices back to pre-conflict levels, rekindling oversupply rhetoric." OCBC cut its Brent crude price forecast for Q3 2026 from $85 to $75 per barrel, Q4 2026 from $80 to $75, Q1 2027 from $75 to $73, and Q2 2027 from $75 to $71. (Jin10 Data APP) Increasing energy flows through the Strait of Hormuz prompted UBS to cut its 2026-2027 oil price forecast. UBS now expects Brent crude to average $84 per barrel this year, down $9 from its previous forecast. The bank also cut its 2027 oil price forecast from $85 to $75 per barrel. UBS said, "The decline in geopolitical risk and the rapid rebound in supply led to a larger price drop than we had expected." The bank expects oil prices to rebound slightly to $80 per barrel in H2 this year as floating storage in the Gulf region normalizes and demand recovers. UBS also believes risk premiums will be higher because the path to normalization may remain bumpy. UBS said, "The need to replenish inventories should continue to support prices through the end of 2027, but the required magnitude of stock rebuilding is smaller than the 1 billion barrels we previously expected." (Jin10 Data APP) Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ► ► ►

SMM, Jul 2: Metals Market: Overnight, base metals on overseas and China markets showed mixed performance. Only LME nickel, SHFE copper, and SHFE tin rose, with SHFE tin up 0.99%, LME nickel up 0.49%, and SHFE copper up 0.07%. SHFE aluminum closed flat at 22,485 yuan/mt. LME zinc led the decline, down 1.68%, while losses in other metals were within 1%. The most-traded alumina contract rose 0.11%, and the most-traded aluminum casting contract rose 0.4%. In the ferrous metals sector overnight, iron ore led gains, up 1.7%. Rebar rose 0.1%, while stainless steel fell 0.54% and hot-rolled coil edged down 0.09%. Coking coal and coke, coking coal closed flat at 1,265 yuan/mt, and coke fell 1.12%. In the precious metals sector overnight, COMEX gold rose 0.15% and COMEX silver fell 0.53%. On the domestic front, SHFE gold rose 1.23% and SHFE silver rose 1.44%. As of 6:43 a.m. on Jul 2, overnight closing quotes: Macro Front China: The Caixin China Manufacturing PMI, compiled by RatingDog, came in at 51.7 in June, staying in expansion territory for the seventh consecutive month. [Shenzhen Housing Market Trading Volume Hits Near 6-Year High in June] Data released today by the Shenzhen Centaline Research Center showed that combined new and second-hand residential home sales in Shenzhen reached 8,878 units in June, down 11.9% MoM but up 14.2% YoY. This was the highest transaction volume for the same period since 2021. Specifically, online registrations of new homes (pre-sale and move-in) totaled 3,785 units, down 16.7% MoM but up 15.6% YoY. Second-hand home transfers reached 5,093 units, down 8% MoM but up 13.1% YoY. (Jinshi Data APP) US Dollar: As of the overnight close, the US dollar index rose 0.24% to 101.41. Fortress Securities stated that investors are underestimating the likelihood of the Fed raising interest rates as early as this month, as Chairman Kevin Warsh appears ready to take a more preemptive approach to fighting inflation. The firm's head of macro strategy, Frank Flight, continues to view two rate hikes this year—in September and December—as his base case. Even so, he noted that the market is pricing in a roughly 30% probability of a July hike, a level he considers too low. (From Wallstreetcn APP) Fed Chairman Kevin Warsh set an ambitious timetable for the US central bank to "discover" and begin relying on real-time economic data, which he argues would be superior to what he described as "problematic government reports." "My aspiration is that in nine to 12 months, we will be leveraging new technologies to understand what is happening in the real economy in a synchronous, real-time manner, enabling us as central bank policymakers to make better decisions. We will no longer rely solely on data from government agencies that suffer from statistical biases and where surveys have lost their relevance," Warsh said at a monetary policy forum in Portugal. "My ideal data is 'what's happening now.' If we do our jobs well, a year from today we will say: we have uncovered data that helps us make better decisions." Fed Chairman Kevin Warsh stated at the ECB Forum on Central Banking (the final day of the Sintra annual conference) that inflation risks have receded over the past four weeks, while he reaffirmed his commitment to price stability. He declined to provide any forward guidance on future interest rate policy. He described the labour market as "holding steady," noting robust economic demand and strong supply-side performance. Deutsche Bank analysis pointed out that Fed officials' public remarks have declined notably since the Jun 17 FOMC meeting, confirming Warsh's earlier policy stance that "US central bank officials talk too much" and that there is a need to reduce forward guidance and push for "institutional change." (Wallstreetcn) Data: US private-sector job growth slowed in June but increased for the 12th consecutive month, showing the labour market cooldown has yet to evolve into a sharp slowdown. Data released Wednesday by ADP Research showed US private payrolls rose by 98,000 in June, below the 119,000 estimated by economists. The prior month's figure was an increase of 122,000. Although the gain missed expectations, the data still supports the judgment that the labour market has been stabilizing this year. Macro Front: Data releases today include the US June unemployment rate, US June seasonally adjusted non-farm payrolls, US initial jobless claims for the week ended Jun 27, US June average hourly earnings YoY, US June average hourly earnings MoM, US May factory orders MoM, Switzerland June CPI MoM, and the Eurozone May unemployment rate. Due to the US Independence Day holiday (Jul 3), US June non-farm payrolls data will be released earlier, at 8:30 p.m. Beijing time on Thursday, Jul 2. The US stock market will be closed on Friday, Jul 3. Trading in CME precious metals, energy, foreign exchange, US Treasury, and equity index futures contracts will end early at 1:00 a.m. Beijing time on Jul 4. Trading in ICE Brent crude oil futures contracts will end early at 1:30 a.m. Beijing time on Jul 4. Investors are advised to take note. (Jinshi Data APP) In addition, the Ministry of Commerce will hold its first regular press conference for July. 2027 FOMC voter and San Francisco Fed President Daly will attend a conference on the Spanish economy. Crude Oil: Overnight, oil prices fell across both benchmarks, with WTI crude down 2.03% and Brent crude down 2.41%. The immediate driver of the heavy sell-off was a rapid easing of geopolitical tensions in the Middle East. A White House spokesperson explicitly stated there is a strong chance of reaching a deal between the US and Iran, with delegations from both sides having held indirect talks in Doha on Jul 1 on topics including unfreezing assets and ensuring maritime security in the strait. Both Goldman Sachs and Morgan Stanley concluded that the global oil market is about to return to severe oversupply. Even accounting for the massive global demand to replenish strategic petroleum reserves, the daily average net surplus in the crude oil market next year will still approach 2 million barrels, exerting long-term pressure on oil prices. (Wallstreetcn) Official data showed US crude oil inventories fell from 415 million barrels at the end of February to 331 million barrels as of Jun 19, hitting their lowest level since 1983. Although these depleted reserves urgently need to be rebuilt, this is not enough to reverse the surplus pattern. Samantha Dart, Goldman Sachs' co-head of global commodities research, estimated global demand to replenish strategic petroleum reserves is slightly above 1 million barrels per day. While this will tighten the market to some extent, it can only partially offset the anticipated surplus, with the market ultimately still facing a net surplus of nearly 2 million barrels per day. Regarding market concerns over future shipping costs in the Strait of Hormuz, Goldman Sachs believes the material impact on global energy prices would be limited. (Wallstreetcn)

SMM, July 1: On July 1, the spot price of titanium dioxide in China fell for a second consecutive day, with the spot market and the secondary market showing a clear divergence. After an earlier correction, the titanium dioxide concept sector rallied for two straight days. As of the market close that day, the titanium dioxide concept index rose 4.85%, with individual stocks performing strongly: Jinputai Titanium hit the daily limit up, while Guocheng Mining, Anning Co., Zhenhua Chemical, and Vanadium Titanium Co. all gained over 6%. The spot market weakness reflects subdued downstream procurement sentiment in China, but capital in the stock market is trading on the logic of forward-looking improvement repair: expectations of tightening supply in July due to production cuts and maintenance, the realization of overseas price hikes, low downstream inventory restocking expectations together provided support, while some market capital inflows helped lift the entire sector. Spot Market Spot market side, high-priced sulphuric acid raw materials provided rigid support for titanium dioxide prices, but downstream end-use demand continued to weaken, with thin trading sentiment in the market, and spot titanium dioxide offers fell for the second consecutive day. According to SMM data, on July 1, SMM quoted rutile titanium dioxide spot prices at 14,500–16,500 yuan/mt, with the average price reported at 15,500 yuan/mt, down 1.59% from the previous trading day. Compared with the average price of 13,500 yuan/mt on December 31, 2025, rutile titanium dioxide has risen by 2,000 yuan/mt this year, an increase of 14.81%. Fundamental dimensions show a divergent picture between supply and demand: Supply side: June titanium dioxide production edged down MoM. Export side: According to customs data, China exported 152,800 mt of titanium dioxide in May 2026, down 21.05% MoM, with cumulative growth up 12.55% YoY. Looking ahead, summer concentrated maintenance coupled with high production cost pressure are likely to lead to significant production cuts across the industry, tightening overall market supply. Demand side currently remains focused on destocking, and the wait-and-see sentiment downstream is unlikely to dissipate quickly amid a gradual spot price decline; however, raw material inventories in the coatings and plastics industries are low, with restocking expectations later on. On balance, the titanium dioxide market in July is highly likely to operate in a pattern of both weak supply and demand, with short-term prices expected to mainly move sideways. Recommended Reading: