SMM, August 13: Metals market: As of the midday close, domestic base metals were mostly lower. SHFE copper fell 0.5%, SHFE aluminum fell 0.9%, SHFE lead rose 0.63%, SHFE zinc fell 0.27%, SHFE tin fell 0.86%, and SHFE nickel fell 0.16%. In addition, the most-traded cast aluminum futures contract fell 1.33%, the most-traded alumina contract fell 1.62%, the most-traded lithium carbonate contract was flat at 148,840 yuan/mt, the most-traded silicon metal contract fell 0.64%, and the most-traded polysilicon futures contract rose 0.75%. Ferrous metals all fell. Iron ore fell 0.14%, rebar fell 0.5%, hot-rolled coil fell 0.37%, and stainless steel fell 0.93%. Coking coal and coke: the most-traded coking coal contract fell 1.27%, and the most-traded coke contract fell 0.73%. Overseas base metals: as of 11:45, LME metals were nearly all lower. LME copper fell 0.2%, LME aluminum fell 0.89%, LME zinc fell 0.4%, LME tin fell 0.18%, LME nickel fell 0.59%, and LME lead rose 0.21%. Precious metals: as of 11:45, COMEX gold rose 0.02%, and COMEX silver fell 0.08%. Domestic precious metals: SHFE gold rose 0.34%, and the most-traded SHFE silver contract rose 0.28%. Additionally, as of the midday close, the most-traded platinum futures contract fell 0.52%, and the most-traded palladium futures contract fell 0.57%. As of the midday close, the most-traded European container shipping futures contract rose 1.75% to 1,630 points. As of 11:45 on August 13, midday quotes for selected futures: Spot and fundamentals Copper: Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a discount of 20 yuan/mt, down 40 yuan/mt from the previous trading day; standard-quality copper was quoted at a discount of 120 yuan/mt, down 40 yuan/mt from the previous trading day; and SX-EW copper was quoted at a discount of 200 yuan/mt, down 60 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 108,250 yuan/mt, down 160 yuan/mt from the previous trading day, and the average price of SX-EW copper was 108,100 yuan/mt, down 200 yuan/mt from the previous trading day. Spot market: Guangdong inventories fell for two consecutive days, with arrivals declining and warehouse withdrawals increasing slightly... Macro front China: [China Is Formulating a New Round of Action Plans for Continuous Air Quality Improvement] The State Council Information Office held a themed press conference today (13th) in the series "Opening and Starting the '15th Five-Year Plan'." At the press conference, it was noted that China has made gratifying progress in air pollution control, but there is still no room for complacency or letting up; patience and resolve must be maintained. Currently, a new round of action plans for the continuous improvement of air quality is being expedited, and the battle to keep skies blue will focus on being "higher, more precise, and more scientific." (CCTV News) [Cumulative Trading Volume of the National Carbon Emissions Trading Market Tops 900 Million mt] Huang Runqiu, Minister of Ecology and Environment, said at the "Launching the 15th Five-Year Plan" press conference series held by the State Council Information Office on August 13 that by the end of July, cumulative trading volume in the national carbon emissions trading market had exceeded 930 million mt, effectively promoting the green and low-carbon transition while driving low-cost carbon reduction across industries. (Xinhua News Agency) [Shanghai: Promote Issuance of "Computing Power Vouchers," "Model Vouchers," and "Corpus Vouchers" to Reduce the Cost of Using Digital Factors Such as Public Data, Computing Power, Models, and Corpora] Shanghai issued the "Shanghai Action Plan for Implementing the Several Measures on Further Promoting Private Investment Development." The plan states that Shanghai will provide computing power subsidies in accordance with laws and regulations, support private enterprises in renting intelligent computing resources for the R&D, training, and application of large models, and encourage universities, research institutions, and state-owned enterprises to use data storage and computing power resources built by various market entities, including private enterprises. It will publish and dynamically update the public data opening list, support private enterprises in the in-depth development and scenario-based use of specific public data, and promote the issuance of "computing power vouchers," "model vouchers," and "corpus vouchers" to reduce the cost of using digital factors such as public data, computing power, models, and corpora. It will cultivate benchmark and platform enterprises for urban digital transformation, and guide private enterprises to participate in the construction and scenario operation of digital transformation projects in areas such as transportation, logistics, and public services. It also encourages private enterprises to build demonstration projects of new-type infrastructure such as blockchain applications and large-scale robot applications. (Jin10 Data APP) [PBOC Reverse Repo Operations Post Net Withdrawal of CNY1 Billion on the Day] The PBOC did not conduct reverse repo operations today, as CNY1 billion in 7-day reverse repos matured, resulting in a net withdrawal of CNY1 billion on the day. On the Dollar Side: As of 11:45, the US dollar index was up 0.01% at 100. US core inflation in July was mild, which likely eased pressure on the US Fed to raise interest rates. Data released by the US Bureau of Labor Statistics on Wednesday showed that, excluding volatile food and energy categories, core CPI rose 0.2% MoM in July. The YoY increase was 2.5%, matching the slowest pace since March 2021. Overall, July CPI rose 0.1% MoM and 3.4% YoY. This report indicated that the energy price shock from the Iran war continued to fade in July. As the US Fed discusses whether to raise rates at its September meeting, these figures may give the US Fed more room to weigh inflation pressures against the recent slowdown in hiring. Before the September meeting, policymakers will also see more reports on employment and inflation, while investors will closely watch a speech that Fed Chairman Warsh is expected to deliver at the annual Jackson Hole symposium later this month. US stock index futures rose, while US Treasury yields were basically flat. Investors lowered their bets on a September rate hike. According to CME "FedWatch": the probability that the US Fed will keep rates unchanged by September is 59.9%, and the probability of a cumulative 25bp rate hike is 40.1%. By October, the probability that the US Fed will keep rates unchanged is 45.3%, the probability of a cumulative 25bp rate hike is 44.9%, and the probability of a cumulative 50bp rate hike is 9.8%. (Jin10 Data App) A CITIC Securities research report said that US July CPI was fully in line with expectations, core inflation remained mild, and second-round inflation effects were modest, which helped further ease market concerns about inflation risks. We continue to believe that US inflation is not sticky, and we expect headline CPI YoY growth to generally continue its mild slowdown trend in Q3 and hit bottom in September, then rebound slightly in Q4 this year and decline rapidly in March next year. We still expect the US Fed to keep rates unchanged for the whole year, and there is further room for downward revision in rate hike expectations priced into derivatives markets. A CICC research report said that US July CPI rose 0.1% MoM on a seasonally adjusted basis and 3.4% YoY, while core CPI rose 0.2% MoM and 2.5% YoY, all in line with market expectations. Energy prices continued to pull back, but international oil prices have risen again since August, increasing uncertainty about future energy prices. On the core inflation front, goods were strong while services were weak; in particular, prices of information technology products such as computers and software continued to rise, reflecting that the supply-demand mismatch caused by AI capital spending expansion is gradually transmitting to the consumer side. We believe US inflation may have entered a new phase, with its drivers gradually shifting from supply shocks such as tariffs and oil prices to demand expansion from AI investment, and the duration of inflation may be correspondingly prolonged. For the US Fed, this data eased near-term pressure to raise rates, but compared with supply-driven inflation, demand-pull inflation requires more attention from policymakers. Other currencies: RBA Assistant Governor Kent said that Australian monetary policy is currently restrictive, the three consecutive rate hikes early this year are now weighing on the economy, and the stronger Australian dollar has further reinforced this effect. He said: "Evidence suggests that monetary policy in Australia is somewhat restrictive, and the tightening earlier this year is working. Borrowing costs have risen, mortgage repayments have increased, conditions in the established housing market have weakened, and the Australian dollar has also appreciated year-to-date." He said aggregate demand growth appears to be slowing, adding that this is what policymakers want to see and is necessary to bring inflation back to target. (Jin10 Data APP) Data Front: Today will bring the US 10-year Treasury auction high yield and bid-to-cover ratio for Aug 12, US initial jobless claims for the week ending Aug 8, US July PPI y/y and m/m, UK Q2 GDP y/y preliminary, UK June three-month GDP m/m, UK June manufacturing production m/m, UK June seasonally adjusted goods trade balance, UK June industrial production m/m, and Eurozone June industrial production m/m, among others. In addition, JD.com will hold its Q2 earnings call; 2026 FOMC voter and Cleveland Fed President Hammack will speak, and 2027 FOMC voter and Richmond Fed President Barkin will speak on the economic outlook. Crude Oil: As of 11:45, both benchmark oil prices fell, with WTI down 0.96% and Brent down 0.82%. Oil prices edged down as traders waited for signs of progress on the reopening of the Strait of Hormuz. On the Middle East front, there has been almost no sign of progress on the reopening of the Strait of Hormuz. US President Trump said the United States has "complete control" over the waterway. The International Energy Agency (IEA) said that as the US-Iran war continues, the global oil market faces a supply shortfall of 1.8 million barrels per day this quarter, more than double its earlier forecast; the 2026 oil supply gap could reach its largest level in five years. According to the American Automobile Association, gasoline and diesel prices in the US have never been this high at this time of year. (Jin10 Data APP) Spot Market at a Glance: ► ► ► ► ► ► ► ► ► ► ►

Platinum prices were in the doldrums today. Macro data, US July core CPI was 2.5% YoY, versus 2.5% expected and 2.6% prior. In early trading, the most-traded GFEX platinum futures contract PT2610 closed at 432.1 yuan/g, down 0.52%. The best ask price for SGE platinum 9995 was at a discount of about 2 yuan/g against the GFEX PT2610 contract. In the spot market, mainstream platinum quotations were at a discount of about 3 yuan/g against the PT2610 contract. With some deeply discounted cargoes cleared, import price spreads narrowing, and the futures market weakening in early trading today, mainstream quotation discounts narrowed slightly from the previous trading day. Downstream buyers mainly purchased after price negotiations based on orders, with most transactions concluded near mainstream quotations. Overall, consumption in the spot platinum market recovered slightly today.

[SMM Tin Midday Review: US July CPI at 3.4% in Line with Market Expectations, Tin Price Center Pulled Back, Stimulating Some Rigid Demand]

SMM Nickel, Aug 13: Macro and Market News: (1) Data released by the US Department of Labor showed that the US July unadjusted CPI rose 3.4% YoY and core CPI rose 2.5% YoY, both in line with market expectations, dampening investor expectations for a rate hike by the US Fed in September. (2) The People's Bank of China released its Q2 2026 China Monetary Policy Implementation Report, saying it will continue to implement an appropriately accommodative monetary policy. The report proposed comprehensively using and adjusting monetary policy tools in a timely manner to keep liquidity ample and social financing conditions relatively loose. It also called for promptly planning and introducing pragmatic and effective incremental policies, stepping up countercyclical adjustment, expanding and enriching the central bank's macroprudential and financial stability functions, innovating financial instruments, and keeping financial markets operating smoothly. Spot Market: On Aug 13, the average price of SMM #1 refined nickel was 128,750 yuan/mt, down 450 yuan/mt from the previous trading day. In terms of spot premiums, the average premium for Jinchuan #1 refined nickel was 1,250 yuan/mt, down 50 yuan/mt from the previous trading day, while premiums for mainstream domestic brands of electrodeposited nickel ranged from -100 to 500 yuan/mt. Futures Market: The most-traded SHFE nickel contract (2609) continued to trend lower during the morning session, and as of the morning close it stood at 128,330 yuan/mt, down 0.16%. Nickel prices are currently in a highly uncertain state, with policy expectations swinging sharply and macro headwinds intertwined with geopolitical risks, and are expected to remain subject to wild swings in the short term, with the most-traded SHFE nickel contract trading in a range of 125,000-133,000 yuan/mt.

[SMM Daily Review: Cooling CPI, Slight Correction in Silver Prices, Spot Deals Probe Deeper into Discount Territory] SMM, August 13 – The US July CPI was in line with expectations, and the signal of an inflation slowdown strengthened; rate-hike bets were trimmed slightly, and silver futures prices pulled back. Spot market demand was weak, with transactions probing further into discount territory.

[CPI in Line with Expectations Eases Macro Anxiety; Sustained Destocking Provides Price Support] Based on a comprehensive assessment, on the macro front, US July CPI and core CPI YoY growth rates slowed to 3.4% and 2.5%, respectively, both in line with market expectations. The mild inflation pullback eased market concerns about further aggressive rate hikes by the US Fed; short-term upward momentum in US Treasury yields weakened, and macro liquidity pressure eased somewhat, providing support for aluminum prices at this stage. The fundamental supply gap persisted, and aluminum ingot inventories continued destocking. On the supply side outside China, UAE's EGA disclosed the progress of production resumption at the AlTaweelah aluminum smelter. Currently, 18% of the plant's 1,262 pots have been restarted, and the pace of production resumption has been faster than earlier market expectations. The supply-tightness premium priced in earlier now faces retracement pressure. In the near term, aluminum prices are expected to consolidate on a strong note, but upside room will be somewhat capped by production resumption expectations.

SMM Morning Meeting Minutes: Overnight, LME copper opened at $14,230/mt, drifted higher early in the session to touch a high of $14,262/mt, then the copper price center shifted straight down, dipping to $14,096.5/mt near the end of the session, and finally closed at $14,109.5/mt, down 0.31%. Trading volume reached 16,900 lots, while open interest reached 263,000 lots, up 1,892 lots from the previous trading day, reflecting an increase in short positions. Overnight, the most-traded SHFE copper 2609 contract opened at 108,610 yuan/mt, immediately touched a high of 109,730 yuan/mt early in the session, then the copper price center drifted lower, dipping to 107,730 yuan/mt near the end of the session, and finally closed at 107,780 yuan/mt, down 0.36%. Trading volume reached 34,000 lots, while open interest reached 212,000 lots, down 2,364 lots from the previous trading day, reflecting a decrease in long positions.

SMM, August 13: Overnight, LME copper opened at $14,230/mt. In early trading, it drifted higher to touch a high of $14,262/mt, then fell in a straight line, dipping to $14,096.5/mt near the end of trading before eventually closing at $14,109.5/mt, down 0.31%. Trading volume reached 16,900 lots, while open interest reached 263,000 lots, up 1,892 lots from the previous trading day, as bears added to positions. Overnight, the most-traded SHFE copper 2609 contract opened at 108,610 yuan/mt and immediately touched a high of 109,730 yuan/mt. It then drifted lower, dipping to 107,730 yuan/mt near the end of trading and eventually closing at 107,780 yuan/mt, down 0.36%. Trading volume reached 34,000 lots, while open interest reached 212,000 lots, down 2,364 lots from the previous trading day, as bulls reduced positions. On the macro front, US July CPI data was mild, and market expectations for the probability of a September rate hike fell to around 40%. In the Middle East, Iran said the ceasefire did not need to be extended, Pakistan said the memorandum of understanding deadline could be extended, Kuwait foiled an attack plot, and Trump claimed that the US fully controls the Strait of Hormuz. With Middle East uncertainty persisting and inflation data in line with expectations, overnight copper prices shot up and then pulled back. Fundamentals side, supply-side shipments increased near delivery, and available supply became marginally looser. However, high-quality copper remained tight, while non-registered copper supply was ample, creating overall structural divergence. Demand side, high copper prices and the off-season constrained demand, leaving it persistently weak with little improvement. Overall, copper prices are expected to move sideways with a firmer bias today.

[SMM Lead Morning Meeting Minutes: Macro Tailwinds Boost Lead Prices; Watch for Risks of a Retreat After Rapid Rise Amid Tug-of-War between Sellers and Buyers] The macro front saw mixed signals. A weaker US dollar lifted base metals broadly, and lead prices may continue to consolidate at highs. Fundamentals side, supply-side expectations for production cuts remain...

[SMM Zinc Morning Comment: Inventory Pressure Remains Significant; SHFE Zinc Price Center Shifts Lower] Overnight, the most-traded SHFE zinc 2609 contract opened at 25,935 yuan/mt, its intraday high. Then bulls reduced positions, and SHFE zinc fell all the way, dipping to 25,695 yuan/mt near the close, before finally closing down at 25,720 yuan/mt, down 110 yuan/mt, or 0.43%. Trading volume fell to 53,350 lots, and open interest declined by 2,944 lots to 111,000 lots.