► Interpretation of China's Wire and Cable Market Status and Consumption Trends ► Analysis of Upstream and Downstream Fundamental Changes and Industry Development Trends for Aluminum ► Assessment of 2026 Copper Price and Market Trends ► How Copper and Aluminum Enterprises Use OTC Derivatives to Reduce Costs and Increase Profits ► Supply Chain Empowering Professional Upgrading of the Real Industry ► Recommendations on the Reverse Invoicing Tax Policy Situation and Digital Compliance Solutions for the Recycled Copper and Aluminum Industry ► On the Crest of the Computing Power Wave: New Opportunities for Cable Demand in the AI Era ► Smart IoT: Building a New Perspective on Intelligent Cable Manufacturing ► Application Status and Development Directions of Polymer Materials for Cables Under the New Situation ► Research on Key Technologies for Quality Control of Copper Rod Conductors Used in Cables

In H1 this year, new special bonds worth 2.07 trillion yuan were issued, with the issuance progress at about 47%. The funds were mainly used for key areas such as municipal and industrial park infrastructure, transport infrastructure, urban renewal, and social programs, effectively meeting the funding needs of major projects in key areas. Special bonds used as project capital exceeded 170 billion yuan, better leveraging the role of government investment to produce a multiplier effect.

According to the Ministry of Energy, President Hakainde Hichilema has commissioned the 100 MW Phase II expansion of the Chisamba Solar Power Plant in Central Province, bringing the facility's total installed capacity to 200 MW. The project represents another step in Zambia's efforts to diversify its electricity generation mix and strengthen energy security as demand from key economic sectors continues to increase. Speaking at the commissioning ceremony, President Hichilema said additional generation capacity would support households, businesses and industrial development, while highlighting the importance of reducing Zambia's dependence on hydropower. The country experienced significant electricity supply challenges during recent drought conditions, which affected hydropower generation and placed pressure on energy-intensive industries. ZESCO Managing Director Justine Loongo said the project created approximately 1,480 jobs during construction, with 95% of positions filled by local residents, highlighting the wider economic benefits of energy infrastructure investment. The expansion comes as Zambia aims to significantly increase copper production towards its long-term target of 3 million tonnes annually. Copper mining operations require large and stable electricity supplies for activities including ore processing, concentration and smelting. Recent power shortages demonstrated the vulnerability of relying heavily on hydropower, particularly during periods of low rainfall. By expanding solar generation capacity, Zambia is strengthening the resilience of its national power system and creating additional support for future mining investments, including new copper projects, mine expansions and processing facilities. A more diversified energy mix could help reduce operational risks for mining companies and improve the country's ability to attract further investment into the copper sector.

According to foreign media reports, global mining company BHP has forecast lower copper production for the 2027 financial year, mainly owing to declining ore grades at its flagship Escondida mine in Chile. The guidance comes despite the company delivering another strong operating year, underpinned by robust copper and iron ore production and continued progress on its long-term growth strategy. BHP produced approximately 1.95 million tonnes of copper during the financial year ended June 30, 2026, meeting its production guidance of 1.9 million to 2.0 million tonnes. The company also achieved record iron ore production of 265 million tonnes, reflecting stable operations across its major mining assets. Despite the expected decline in copper output next year, BHP remains optimistic about its long-term growth prospects. The company continues to advance several key development projects, including expansion pathways at Escondida, Spence and Copper South Australia. It is also progressing the Resolution copper project in the United States, expanding its investment in Faraday, and moving forward with the Vicuña copper project in Argentina after it received approval under the country's large investment incentive programme. Meanwhile, construction of the Jansen potash project in Canada remains on schedule, with first production expected next year. The lower production outlook from Escondida, the world's largest copper mine, could provide additional support to global copper prices if market demand remains strong. At the same time, BHP's continued investment in new copper projects reflects confidence in the long-term demand outlook driven by electrification, renewable energy infrastructure and electric vehicle manufacturing.

Commodity trader Trafigura has withdrawn from a proposed 2,000 MW electricity transmission project intended to supply surplus Angolan hydropower to copper and cobalt mining operations in the Democratic Republic of Congo (DRC) and Zambia, according to foreign media reports. The initiative originated in July 2024 when Trafigura signed a non-binding agreement with engineering firm ProMarks and the Angolan government to conduct feasibility studies for a high-voltage interconnector. According to foreign media reports, the line aimed to monetize Angola's northern hydropower capacity to help alleviate chronic electricity deficits affecting mining assets in the Central African Copperbelt. The withdrawal highlights the complex financing and risk dynamics associated with large-scale cross-border energy infrastructure in emerging markets, as reliable grid power remains a primary constraint for scaling up copper and cobalt production across Zambia and the DRC. According to foreign media reports, despite Trafigura's exit, other transmission ventures linking Angola to regional mining centers are progressing. These include Meridia Energy's planned Lauca–Kolwezi line (1,400 MW) and Soyo–Inga–Cabinda line (800 MW), targeted for commercial operation by 2030, as well as a separate $1.5 billion interconnector proposed by U.S.-based HYDRO-LINK aimed at Lualaba and Katanga provinces. While the delay of this specific 2,000 MW line creates a short-term hurdle for cross-border power sharing, broader efforts to connect Angola's surplus generation to the Southern African Power Pool (SAPP) and Copperbelt miners remain active under revised consortia, according to foreign media reports.

[SMM Analysis: Phosphate Ore Import and Export Half-Year Review, 2026 H1 China's Phosphate Ore Imports Surge to One Million Tons, Exports Triple] In H1 2026 (from January to June), China's phosphate ore imports reached 998,200 tons, up 29.66% YoY; exports stood at 133,900 tons, up 225.91% YoY; net imports were 864,300 tons.

Zimbabwe has added a new rail freight option for lithium exports after the National Railways of Zimbabwe (NRZ), together with private logistics partners, transported the first 1,000 tonnes of lithium concentrate from the Gwanda Lithium Mine toward Mozambique’s Port of Maputo. The route is 180 km on the Beitbridge Bulawayo Railway line from Gwanda to Beitbridge, around 300 km on the NRZ network to Chicualacuala, additionally a 522 km on Mozambique’s Limpopo corridor to Maputo. The total rail distance is close to 1,000 km. The development is significant because Zimbabwe’s lithium exports have historically relied on trucking, which has higher unit costs and is exposed to road congestion, border delays and equipment shortages. A functioning rail corridor will improve shipment reliability, reduce inland freight costs particularly for mines located along the southwest southeast transport corridor. However, immediate impact on national export capacity is likely to remain limited. NRZ freight volumes fell from around 12 million tonnes in the 1990s to 2 million tonnes in 2025, reflecting longstanding underinvestment and operational constraints. The first shipment should therefore be viewed as a logistics trial than proof of large-scale rail capacity. SMM View The new rail option is positive for Zimbabwe’s delivered cost competitiveness, as logistics remain one of the largest cost disadvantages for landlocked African lithium suppliers. If rail utilization expands, producers may achieve lower and more stable FOB and CIF China costs than under road only transport. The long-term importance will depend on train frequency, loading capacity, border clearance, port handling and whether lithium sulphate can use the same corridor as Zimbabwe shifts toward domestic beneficiation. Key watchpoints: Repeat shipment volumes, Rail freight rates, Maputo port capacity, Route reliability and adoption by major producers such as Bikita, Arcadia and Sabi Star. Nyirongo Joseph nyirongojoseph@smm.cn SMM Zambia Office

Zimbabwe has recently continued to advance its domestic lithium-processing policy while simultaneously improving the logistics infrastructure used for lithium concentrate exports. At first glance, the construction of new railway transport links appears inconsistent with the proposed restrictions on concentrate exports. In practice, however, the two policies correspond to different stages of industrial development. Railway investment is intended to support current mine operations, export earnings and logistics cost reductions, while export restrictions are designed to encourage the extension of the domestic value chain into intermediate products such as lithium sulphate. The principal objective is therefore not to halt lithium exports immediately, but to use export permits and policy deadlines to retain a greater share of processing investment and capital expenditure within Zimbabwe. From a policy perspective, the restrictions are better understood as an industrial investment requirement than as a conventional trade ban. Zimbabwe remains dependent on mineral exports for foreign-exchange earnings, tax revenue and employment. A complete suspension of concentrate exports before sufficient domestic processing capacity has been established would therefore conflict with the country’s near-term economic interests. A more probable policy path would be to link export quotas to the construction progress of processing facilities, local investment commitments and the operating status of individual projects. Under this framework, export access would effectively be exchanged for additional domestic investment. The main constraint on implementation is that Zimbabwe’s existing processing capacity is largely captive capacity built to serve individual mining projects. The country has not yet developed a market-based processing system capable of handling concentrate from multiple third-party suppliers. Concentrates from different mines vary in lithium grade, impurity content, particle size and metallurgical characteristics. Third-party processing therefore requires not only technical adaptation, but also commercial arrangements covering recovery rates, treatment charges, material losses and product-quality responsibilities. As a result, nominal processing capacity should not be treated as equivalent to effective capacity available to the broader industry. The existence of several lithium sulphate plants does not necessarily provide a viable conversion route for mines without their own processing facilities. This constraint is likely to reshape the competitive structure of Zimbabwe’s lithium industry. Project value will increasingly depend not only on resource size, grade and mining costs, but also on access to processing capacity, export permits, logistics infrastructure and end-market channels. Vertically integrated companies controlling mines, concentrators, conversion plants and customer relationships in China will be better positioned to comply with the policy and monetise their resources. Smaller mines without processing facilities may become increasingly dependent on toll treatment, offtake agreements, equity partnerships or asset sales. The export restrictions could therefore raise the domestic processing ratio while also accelerating the concentration of lithium resources in the hands of a limited number of integrated operators. For the Chinese lithium supply chain, the policy does not imply that Zimbabwean lithium resources will permanently disappear from the market. Rather, the form in which those resources enter China and the channels through which they are traded are likely to change. Part of the current concentrate supply may eventually be exported as lithium sulphate or other intermediate products. At the same time, supply may shift from a relatively fragmented network of miners and traders towards a smaller number of integrated producers. This would reduce the volume of African concentrate directly available to independent Chinese lithium refiners and increase the share of material moving through long-term offtake agreements or internal corporate supply chains. The principal market impact may therefore be reflected less in a substantial reduction in annual resource supply and more in changes to supply timing and spot-market liquidity. During the transition, export-quota adjustments, delays to processing projects and changes in product form could create volatility in mine inventories, export volumes and Chinese arrivals. When downstream inventories are low or freely tradable concentrate is limited, such disruptions can be amplified and translated into a higher short-term risk premium for both spodumene concentrate and lithium carbonate. The expansion of railway infrastructure is not inherently inconsistent with the domestic-processing policy. Railways can support current concentrate exports, but they can also transport lithium sulphate, processing equipment and chemical inputs in the future. The more important issue is that the pace of policy implementation may exceed the development of processing capacity, electricity supply, chemical inputs and commercial infrastructure. If the restrictions are implemented too rapidly, they may result in production cuts, inventory accumulation and project delays. A sufficiently long transition period would allow processing capacity to develop gradually while limiting disruption to existing exports and employment. Overall, Zimbabwe is more likely to adopt an approach based on formal restrictions, transitional quotas and investment-linked exemptions , rather than impose a complete and immediate halt to all concentrate exports. The long-term effect of the policy will not be to reduce the country’s underlying lithium resource base, but to redistribute processing margins and control across the value chain. The companies best positioned to benefit will not simply be those that own lithium resources, but those able to integrate mining, processing, logistics, export access and downstream customer relationships.

[Bigger Logistics Reset Underway — Afrexim Loan, China-Backed Mega Financing and Reopened Mozambique Rail Line Reinforce Zimbabwe's Chrome Export Corridor] 1. NRZ is finalizing a US$115 million loan from Afreximbank to rehabilitate rail infrastructure and refurbish locomotives, announced in early June. 2. Government is exploring mineral-backed financing with China — including talks with China Railway — for an estimated US$34 billion national transport-and-logistics modernization plan, modelled on the DRC's Sicomines resource-for-infrastructure deal; Finance Minister Mthuli Ncube confirmed the discussions at the World Economic Forum in Dalian last month. 3. The Mozambique–Zimbabwe rail line has reopened after a four-month closure, alongside ongoing NRZ recapitalization under a three-phase turnaround strategy — measures that directly cut chrome and ferrochrome export lead times to Asian, European and American stainless-steel mills. 4. The Chamber of Mines of Zimbabwe has singled out Zimasco and Afrochine (Tsingshan) to lead ferrochrome production growth, with both operators already running material volumes through the Maputo-bound rail network.

SMM, July 22 - According to customs data, China's aluminum extrusion exports (HS codes 76041010, 76041090, 76042100, 76042910, 76042990) in June 2026 were 92,000 mt, up 6% MoM and 29.7% YoY. Cumulative exports from January to June 2026 were 447,000 mt, up 9.0% YoY.