SMM August 5: Metals market: Overnight, base metals on the domestic market broadly rose. SHFE copper rose 0.68%. SHFE aluminum rose 0.08%. SHFE lead rose 1.79%, SHFE zinc rose 0.84%, and SHFE tin rose 0.63%. SHFE nickel fell 0.75%. Additionally, the most-traded alumina futures contract rose 0.19%, and the most-traded cast aluminum contract rose 0.09%. Overnight, ferrous metals showed mixed performance. Stainless steel fell 1.25%, iron ore was flat at 699.5 yuan/mt, rebar fell 0.07%, and hot-rolled coil edged up. Coking coal and coke: the most-traded coking coal contract rose 1.01%, and the most-traded coke contract rose 0.63%. Overnight, on the overseas market, LME base metals broadly rose. LME copper rose 1.41%. LME aluminum fell 0.29%. LME lead rose 1.23%. LME zinc rose 0.74%. LME tin rose 0.84%. LME nickel fell 0.35%. Overnight, precious metals : COMEX gold rose 1.07%, and COMEX silver rose 3.27%. Overnight, the most-traded SHFE gold contract rose 0.87%, and the most-traded SHFE silver contract rose 3.45%. CITIC Securities said in a research note that gold prices shot up and then fell rapidly this year, but they believe gold is still in a major bull market, citing accelerating expansion of the US fiscal deficit, difficult-to-heal geopolitical rifts under deglobalization, and continued support from global central bank gold purchases. They therefore view the current pullback as only a temporary correction within the bull market. The current drawdown has approached historical extremes, and the $4,000/oz area is likely the bottom zone of this round. Looking ahead, the situation in the Strait of Hormuz is expected to shift from a drag to a boost for gold prices, the Fed’s monetary policy may be more optimistic than market expectations, and the surge in US military spending is pushing up the deficit; gold prices are expected to return to an upward trajectory within the year. (Jin10 Data App) As of 7:11 on August 5, closing prices for overnight trading were: Macro front China: [MIIT: Strengthen the screening and testing/verification of risks and hidden dangers in "aggressive" innovative designs of road motor vehicle products, and strengthen the safety evaluation of combined driver assistance and autonomous driving functions] On August 4, the Equipment Industry Department I of the Ministry of Industry and Information Technology (MIIT) organized a discussion with road motor vehicle inspection and testing institutions to analyze the current product safety and inspection work situation and to arrange efforts to regulate the competitive order and improve the quality of inspection and testing in the road motor vehicle sector. The meeting called for inspection and testing institutions to thoroughly implement the decisions and plans of the Party Central Committee and the State Council, firmly resist irrational competition, and strictly control product testing. First, conduct in-depth self-checks to systematically identify problems in the inspection and testing of road motor vehicle products and earnestly carry out rectifications. Second, strengthen industry self-discipline, focus on main responsibilities, reinforce responsibility, enhance integrity and self-discipline, and jointly safeguard the credibility of the entire industry. Third, hold the bottom line of product safety by implementing quality control measures for sample vehicle management, personnel management, and process management, strengthen the screening and testing/verification of risks and hidden dangers in "aggressive" innovative designs, and enhance the safety evaluation of combined driver assistance and autonomous driving functions. Fourth, improve capabilities by actively participating in the formulation and revision of standards and regulations, accelerate the establishment of a testing and evaluation system for intelligent connected vehicles, strengthen the capacity for road motor vehicle inspection and testing, and provide objective, fair information and professional opinions to the industry. Going forward, the MIIT will work with relevant departments to in-depth carry out actions on production consistency and quality improvement for road motor vehicle products, intensify work inspections, urge and guide inspection and testing institutions to fulfill their role as "gatekeepers" of product safety, improve the quality of inspection and testing work, impose joint penalties on institutions with problems, and resolutely hold the bottom line of product safety. (From the Wallstreetcn App) [PBOC: Net injection of 50 billion yuan via open market government bond transactions in July] The PBOC released its liquidity injection data for various tools in July 2026. In terms of central bank lending, the standing lending facility (SLF) recorded a net withdrawal of 1 billion yuan; the medium-term lending facility (MLF) recorded a net injection of 100 billion yuan; and the pledged supplementary lending (PSL) recorded a net withdrawal of 116.1 billion yuan. In terms of open market operations, 7-day reverse repos recorded a net injection of 249.5 billion yuan, open market government bond transactions recorded a net injection of 50 billion yuan, and central treasury cash management recorded a net injection of 30 billion yuan. Dollar front: Overnight, the US dollar index fell 0.11% to 99.86. According to CME "Fed Watch," the probability that the Fed keeps interest rates unchanged in September was 41.6%, while the probability of a cumulative 25-basis-point rate hike was 58.4%. The probability that the Fed leaves rates unchanged through October was 30.5%, the probability of a cumulative 25-bp hike was 53.9%, and the probability of a cumulative 50-bp hike was 15.5%. US Treasury Secretary Bessent, in an interview with CNBC, said Fed Chairman Warsh wants to preserve flexibility to achieve the best outcome. When discussing the strategy of the Fed and Warsh, he called it a "detox" for the Fed. He said every meeting should be live (full of possibilities) and participants should exercise their own judgment. He believed the Fed will balance its growth and inflation objectives, and he trusted that Warsh will help the Fed strike a balance between the two. On the economy and inflation, he noted that after stripping out sectors affected by energy prices, core inflation performance has been very steady, and underlying inflation data has been very mild, a trend he expects to continue. He also noted that core inflation is slowing. "Fed whisperer" Nick Timiraos wrote that US Treasury Secretary Bessent's policy reaction function has shifted to become less dovish. His comments this year suggested that the Fed should continue to hold rates steady. Earlier this year, Bessent cited models indicating the Fed's policy rate could be as little as more than 25 bp or as much as more than 100 bp above the neutral rate. Today (August 4), he made two points. First, he defended Warsh's decision last week not to articulate any policy reaction function: "I think every meeting should be open, and market participants should make their own judgments... I think Warsh wants to keep his options open to achieve the best results." Second, he did lay out what could be seen as a dovish reaction function, advocating that near-term shocks should be ignored: "What exactly will the rise in short-term interest rates bring? We will wait and see." He raised that question but then responded by pointing out that underlying inflation is "very mild... very steady." "Within core inflation, after stripping out the volatile components significantly influenced by energy, the rest has been very steady. I think that will continue." (Jin10 Data App) Macro front: Data to be released today include China's July RatingDog Services PMI, France's June industrial output m/m, the final France July Services PMI, the final Germany July Services PMI, the final Eurozone July Services PMI, the final UK July Services PMI, the Eurozone June PPI m/m, the US July ADP employment change, the final US July S&P Global Services PMI, and the US July ISM non-manufacturing PMI. Also on the radar: a speech by Kansas City Fed President Schmid, a 2028 FOMC voter, on the Fed, monetary policy, and the agricultural economic outlook. Crude oil front: Overnight, both crude oil futures extended their declines from the previous trading day, with WTI falling 6.47% and Brent dropping 6.08%. Wallstreetcn noted that on Tuesday, August 4 (US Eastern Time), Reuters, citing informed sources, reported that Iran has abandoned its earlier demand for full control over two-way shipping in the Strait of Hormuz and instead proposed that Iran manage all vessel navigation entering the Strait while retaining supervisory rights and the right to intervene when necessary over vessels departing the Strait. Xinhua News Agency, citing US media, reported that US Treasury Secretary Bessent said on Tuesday that an agreement on the Strait of Hormuz could be reached on August 4 or 5. Also according to Xinhua, US Secretary of State Rubio said on the same day that negotiations with Iran on reopening the Strait had "made progress" but a deal had not yet been finalized. The sharp drop in oil prices meant cooling inflation expectations for the market. Tony Miano of Wells Fargo Investment Institute noted: "The market is reacting to the prospect that a reopening of Hormuz could help normalize global oil supplies and ease recent energy price pressures, and lower oil prices could ease inflation concerns." However, he cautioned that inflation is unlikely to normalize overnight, and even after energy pressures ease, overall prices could remain sticky in the near term. (Wallstreetcn)

On August 4 China's steel export prices were broadly steady. Flat-product export prices held flat day on day, with HRC transactions at 479-483 USD/tonne; domestic futures had corrected too quickly of late and overseas enquiries increased, but actual bid levels remained low and concluded business was limited. Billet export FOB prices were steady, with Jiangyin port offers at 447-452 USD/tonne, as fierce competition kept export offers under pressure while overseas buyers showed little urgency and mostly stayed on the sidelines. Rebar export offers at Tianjin port were steady with transactions at 474-480 USD/tonne; enquiries improved slightly today but overall volumes did not pick up markedly, and some South China mills kept long-product export offers high with little business done.

Futures first rose and then fell today, closing at 2,983, down 0.2% from the previous trading day. On the spot side, most markets held offers steady in the morning; in the afternoon, as futures drifted lower, some markets edged down 10-20 yuan/mt, with overall trading sentiment weak. Fundamentals, supply side, both blast furnace and EAF steel mills mostly saw losses in per-mt steel margins. Recently, EAF mills have reduced working hours or halted production, and blast furnace mills have also cut output or conducted rolling line maintenance. According to SMM’s weekly maintenance survey, the impact from maintenance this period was 938,600 mt, up 174,200 mt WoW, and supply pressure on construction steel eased somewhat. Demand side, futures slightly recovered this morning, lifting market activity modestly and releasing downstream rigid procurement demand, though overall room for demand growth was limited. Overall, the market is in a macro vacuum period, construction steel fundamentals lack momentum, and short-term prices will likely continue to consolidate at lows.

[Turkey] The Turkish domestic rebar market exhibited significant regional divergence recently, as price gains in the Marmara region effectively offset declines in the South, keeping overall Turkish rebar offers steady at 575–580 USD/tonne EXW (excl. VAT). With some mainstream mills concentrating their efforts on preparing for upcoming export shipments, domestic spot supply has tightened. This has led to shortages in certain specifications, allowing mills to take advantage of the situation and firmly maintain their prices. On the export front, given that overseas buyers previously demonstrated low acceptance of higher price levels, export offers continued to hold stable at 575 USD/tonne FOB.

SMM August 4 news: Metals market: As of the midday close, domestic base metals almost all rose. SHFE copper rose 0.91%, SHFE aluminum rose 1%. SHFE lead rose 0.23%. SHFE zinc fell 0.58%. SHFE tin rose 0.81%. SHFE nickel rose 1.55%. In addition, the most-traded cast aluminum futures rose 0.58%, the most-traded alumina futures rose 0.38%. The most-traded lithium carbonate futures rose 1.07%. The most-traded silicon metal futures rose 0.36%. The most-traded polysilicon futures rose 1.4%. Ferrous metals mostly rose. Iron ore was flat at 702.5 yuan/mt, rebar edged up, while hot-rolled coil edged down. Stainless steel rose 2.06%. Coking coal and coke: the most-traded coking coal contract rose 1.91%, and the most-traded coke contract rose 0.85%. Overseas base metals market, as of 11:41, LME metals all rose. LME copper rose 0.77%, LME aluminum rose 0.56%, LME lead rose 0.80%, LME zinc rose 0.61%. LME tin rose 0.77%. LME nickel rose 0.81%. Precious metals: as of 11:41, COMEX gold rose 0.54%, COMEX silver rose 1.87%. Domestic precious metals: SHFE gold rose 0.35%, the most-traded SHFE silver futures rose 1.64%. Additionally, as of the midday close, the most-traded platinum futures edged up, and the most-traded palladium futures fell 0.54%. As of the midday close, the most-traded European freight futures contract rose 3.19% to 1,843 points. As of 11:41, August 4, some futures midday market quotes: Spot and fundamentals Zinc: In Tianjin market, #0 zinc ingot were mainly traded at 24,760-24,950 yuan/mt, Zijin was traded at 24,880-25,010 yuan/mt, and #1 zinc ingot were mainly traded at around 24,760-24,870 yuan/mt. Zijin was quoted at a premium of around 0-30 yuan/mt against the 2609 contract, Huxin was quoted at 26,220 yuan/mt, #0 zinc ingot was quoted at a discount of around 30-120 yuan/mt against the 2609 contract, and Tianjin market was quoted at a discount of around 110 yuan/mt against Shanghai market. Macro front Domestic: [State Administration for Market Regulation: 20 places including Beijing, Shanghai, etc., designated as national trade secret protection innovation pilot sites] The General Office of the State Administration for Market Regulation issued a notice on promoting typical experiences and practices of national trade secret protection innovation pilot sites. Among them, Beijing Haidian District, Beijing Tongzhou District, Tianjin Binhai High-tech Zone, Shanghai Pudong New Area, Shanghai Fengxian District, Jiangsu Nanjing, Jiangsu Wuxi, Jiangsu Suzhou, Zhejiang Hangzhou, Zhejiang Ningbo, Zhejiang Wenzhou, Anhui Hefei, Fujian Xiamen Haicang District, Hubei Wuhan, Hunan Changsha, Guangdong Guangzhou, Guangdong Shenzhen, Guangdong Foshan, Chongqing Jiangjin District, Sichuan Chengdu Wuhou District were identified as the first batch of national trade secret protection innovation pilot sites. ()Market Regulation Administration [PBOC Net Withdraws 559 Billion Yuan from Open Market Today] PBOC conducted 46.5 billion yuan 7-day reverse repo operations, with an operation rate of 1.40%, unchanged from the previous session. Today, 605.5 billion yuan reverse repos matured. [Shenzhen New Home Sales Up Over 30% YoY in July] According to data from Shenzhen's real estate information platform, the city's new commercial housing sales totaled 3,773 units in July, down 35.2% MoM but up 19.3% YoY; among these, residential sales were 2,664 units, down 6.8% MoM but up 32.5% YoY. Looking at a longer period, new home sales from January to July totaled 35,104 units, a slight 0.7% YoY increase; of these, residential sales totaled 21,935 units, down 10.6% YoY, with the decline narrowing compared with H1. (JIN10 APP) On the US dollar: As of 11:41, the US dollar index rose 0.05% to 100.01. The July US manufacturing PMI data showed strong demand, surging output, and accelerated hiring, marking the fastest expansion in over four years, which to some extent offset the interest rate cut expectations driven by declining oil prices, leaving overall market rate hike expectations relatively unchanged. According to CME FedWatch, the market priced in a 64.5% probability of at least a 25-basis-point rate hike by the Fed in September. (Wall Street CN) (JIN10 APP) Data from the Institute for Supply Management (ISM) showed that the US ISM manufacturing PMI registered 55.6 in July, the highest level since May 2022. A reading above 50 indicates sector expansion, and the industry has remained above that threshold for seven consecutive months. The production index rose to 58.5, the highest since the end of 2021, while the employment gauge indicated that manufacturers added workers for the first time since September 2023. New orders — a signal of demand — also rebounded. Manufacturing momentum has been strong this year, with factories benefiting from solid consumer demand, robust business investment, and government spending on national defense. All but one manufacturing industry reported growth in July, including printing, apparel, and electrical equipment. The only sector reporting contraction was chemical products. Fed’s Williams said he remains optimistic that inflationary pressures will gradually ease, but if that does not happen, the Fed will not hesitate to raise interest rates to ensure price pressures return to target. In an interview with Reuters last Friday, Williams said that if energy prices and trade tariffs have peaked and the economy maintains solid momentum, "I think some of the main factors that have pushed up inflation over the past year and a half will no longer play such a large role, and the disinflationary forces we observed earlier should reemerge."He added: "I am watching very closely what happens to core inflation measures over the coming months, whether that is consistent with inflation trending down to 2% and continuing to move lower, so that we achieve that sustained 2% inflation goal over the longer run by 2028." He also stated: "My own forecast is that inflation will come down somewhat in H2 this year and pull back further next year." Williams reiterated that the current monetary policy stance is "well positioned" to bring inflation back to the target. However, he noted: "If we are not on a path to bring inflation down to 2%... then it would be entirely appropriate to take action to get us back on a path to 2% inflation." (Jin10 Data APP) In terms of data: Today, the US June trade balance, US June JOLTS job openings, US June factory orders MoM, and other figures will be released. Items to watch: SpaceX announces Q2 2026 results; FMS 2026 Flash Memory Summit takes place from August 4-6, with Samsung, SK, and other storage giants in attendance. In terms of crude oil: As of 11:41, both crude benchmarks were up, with WTI rising 0.73% and Brent gaining 1.16%. With the outlook for US-Iran negotiations uncertain and market concerns over supply disruptions persisting, oil prices rebounded after the previous session's plunge. Shipping tracking data shows that six empty Saudi-flagged supertankers changed course in the Gulf of Aden in recent days, heading toward southern Africa. One of them is destined for Gibraltar. On August 3, the six tankers were sailing in formation in the high seas off the coast of Somalia. (Jin10 Data APP) Spot market at a glance: ► ► ► ► ► ► ► ► ► ► ► ► ► ►

During the survey period (July 28 - August 3), the rebar capacity utilization rate in Central China declined, while both the operating rate and capacity utilization rate of wire rod fell.

[SMM Survey: Central China Rolling Line Weekly Survey: Rebar and Wire Rod Production Decreased, Steel Mills Reduced Production] During the survey period (July 28 – August 3), the rebar capacity utilization rate in the Central China region declined, and both the operating rate and capacity utilization rate of wire rod fell.

SMM August 4 News: In the metals market: Overnight, base metals on the domestic market generally rose. SHFE copper gained 0.43%. SHFE aluminum added 0.61%. SHFE lead fell 1.17%, SHFE zinc dropped 0.82%, and SHFE tin rose 0.44%. SHFE nickel climbed 1.13%. Additionally, the most-traded alumina futures contract fell 0.08%, and the most-traded cast aluminum contract edged up 0.24%. Overnight, ferrous metals mostly declined. Stainless steel surged 3.09%, iron ore fell 0.71%, and rebar slipped 0.4%. Hot-rolled coil fell 0.56%. In coking coal and coke: the most-traded coking coal contract rose 0.55%, while the most-traded coke contract fell 0.46%. Overnight on the overseas metals market, LME base metals showed mixed performance. LME copper gained 0.33%. LME aluminum rose 1%. LME lead fell 0.72%. LME zinc dipped 0.16%. LME tin inched up 0.03%. LME nickel slipped 0.26%. Overnight in the precious metals segment : COMEX gold rose 0.09%, while COMEX silver gained 1.05%. Overnight, the most-traded SHFE gold contract fell 0.11%, while the most-traded SHFE silver contract added 0.34%. As of 7:17 a.m. on August 4, overnight closing prices: Macro Front Domestic side: [Li Qiang Signs State Council Decree to Promulgate Revised Regulations on the Protection of Layout-Designs of Integrated Circuits] Premier Li Qiang recently signed a State Council decree to promulgate the revised Regulations on the Protection of Layout-Designs of Integrated Circuits, effective October 15, 2026. The Regulations aim to protect exclusive rights to integrated circuit layout-designs, encourage technological innovation in integrated circuits, and promote scientific and technological development. The Regulations consist of six chapters and 54 articles, with the main revisions as follows. First, clarify the overall requirements. The protection of integrated circuit layout-designs shall implement the strategic deployment of the Party and the state on intellectual property rights, expand the scope of protection, and emphasize good faith. Second, improve the application and examination procedures. Regulate fraudulent applications, refine material requirements, improve rejection and revocation procedures, and add procedures for restoration of rights. Third, strengthen protection of exclusive rights. Clarify standards for defining the scope of rights and increase compensation for infringement. Fourth, promote the utilization of layout-designs. Strengthen public services, specify reward and remuneration measures, improve requirements for transfer, licensing, and pledge, and regulate the exercise of co-owners' rights. (Xinhua News Agency) [NDRC and National Energy Administration Issue the 15th Five-Year Plan for New-Type Power System Construction] The National Development and Reform Commission (NDRC) and the National Energy Administration issued the 15th Five-Year Plan for New-Type Power System Construction. It proposes that by 2030, the new-type power system will be initially established: a green and low-carbon power supply pattern will have basically taken shape, with non-fossil energy accounting for 50% of power generation; power supply capability will be continuously enhanced, complementarity and mutual support among power systems will be greatly improved, and security and resilience will be significantly strengthened, keeping power supply adequacy at a reasonable level to effectively meet the electricity needs of socioeconomic development and people's aspirations for a better life; a safe, reliable, green, low-carbon, strong, resilient, intelligent, and flexible new-type power grid will be initially built, giving full play to its role as a resource allocation platform and service functions, achieving high-level consumption of over 2.8 billion kW of new energy, and establishing a charging infrastructure network capable of supporting more than 110 million EVs. The institutional mechanisms for the new-type power system will be further improved, and a unified national power market system will be basically established. The plan proposes promoting wide-load high-efficiency retrofits for existing coal-fired power units, controlling the increase in coal consumption under low-load operating conditions to within 25%. It also calls for promoting full-load denitrification retrofits for coal-fired units based on local conditions. Implement a batch of cross-generation upgrade projects for 600,000-kW-level units. In areas with suitable conditions, build a number of zero-carbon and low-carbon fuel co-firing and carbon capture, utilization, and storage projects. Formulate policies for the integrated development of coal power and new energy, support the priority implementation of a batch of coal power-new energy integration projects in areas where conditions permit, carry out retrofits to enhance coal power's regulating capability, and promote the coupling and integration of coal power and new energy systems to achieve integrated regulation and delivery and reduce coal-fired power generation. [SHFE Issues Notice on Launching Spread Orders] To meet market needs and improve market operation efficiency, the Shanghai Futures Exchange will launch spread orders starting from August 24, 2026 (i.e., the night continuous trading session on August 21, 2026). Initially, spread orders will be applicable to copper, gold, rebar, and natural rubber futures. Subsequent plans to extend to other products and introduce cross-product spread combinations will be notified separately by the exchange. Spread orders are supported only for futures products, with a minimum order size of 1 lot and a maximum of 500 lots. [Shanghai International Energy Exchange Issues Notice on Launching Spread Orders] To meet market needs and improve market operation efficiency, the Shanghai International Energy Exchange will launch spread orders starting from August 24, 2026 (i.e., the night continuous trading session on August 21, 2026). Initially, spread orders will be applicable to crude oil futures. Subsequent plans to extend to other products and introduce cross-product spread combinations will be notified separately by INE. Spread orders are supported only for futures products, with a minimum order size of 1 lot and a maximum of 500 lots. (Shanghai International Energy Exchange) [CISA: In the Next Stage, Strictly Implement the Steel Export License Management System] In H1 2026, steel exports saw an overall decline in volume and stable prices, while steel billet exports surged significantly. Overseas, 12 original anti-dumping investigations were initiated against Chinese steel, and trade friction pressure remained unabated. In H2, external constraints tightened: the EU's new steel safeguard measures reduced quotas and introduced the "melted and poured" origin rule, and coupled with global geopolitical disruptions, the export environment became more complex. In the next stage, strictly implement the steel export license management system, adhere to the orientation of "promoting high-end products, stabilizing peripheral markets, and strict supervision," strengthen industry self-discipline, optimize the export structure, deepen cultivation of peripheral and emerging markets, actively respond to trade frictions, proactively adapt to international rules, and drive the transformation of exports toward high-end and green development to achieve steady and orderly progress. (CISA) US Dollar: Overnight, the US dollar index rose 0.19% to 99.97. In July, the US manufacturing sector grew at its fastest pace in more than four years, driven by sustained strong demand, surging production, and increased hiring. The ISM Manufacturing PMI came in at 55.6 in July, the highest since May 2022. A reading above 50 indicates expansion, and the sector has now been above that level for seven consecutive months. The Production Index climbed to 58.5, the highest since the end of 2021, while the employment gauge signaled that manufacturers added workers for the first time since September 2023. New order growth — a signal of demand — also rebounded. Manufacturing has been robust this year, with factories benefiting from solid consumer demand, firm business investment, and government spending on national defense. All but one manufacturing industry reported growth in July, including printing, apparel, and electrical equipment. The only industry reporting contraction was chemical products. According to CME FedWatch, the probability that the Fed will keep rates unchanged in September is 32.8%, while the probability of a cumulative 25bp rate hike is 67.2%. For the October meeting, the probability of holding rates steady is 23.3%, while the probability of a cumulative 25bp hike is 57.3% and a cumulative 50bp hike is 19.3%. Fed's Williams said he remains optimistic that inflation pressures will gradually ease, but if that does not happen, the Fed will not hesitate to raise rates to ensure price pressures return to target. In an interview with Reuters last Friday, Williams said that if energy prices and trade tariffs have peaked and the economy remains on a solid footing, "I think some of the main factors that had been pushing up inflation over the last year and a half or so will fade, and some of the disinflationary forces that we had observed earlier should reassert themselves." He added, "I'm watching very carefully the next few months' readings on core inflation to see if they are consistent with inflation moving toward 2% and continuing to trend lower, to give us confidence that we can achieve our 2% inflation goal durably by 2028." He also said, "My own forecast is that inflation will come down in the second half of this year and come down further next year." Williams reiterated that the current policy stance is "well positioned" to bring inflation back to target. But he noted, "If we are not on a path to bring inflation down to 2% ... then taking action to get us back to that 2% path would be entirely appropriate." (Jin10 Data APP) Other Currencies: Data from the Bank of Japan's accounts suggest that Japan likely spent about $34 billion on Friday to intervene in the foreign exchange market to support the yen, building on the coordinated action with the US on Thursday. Based on a comparison of BOJ account data released Monday with money broker forecasts, the estimated intervention was about 5.33 trillion yen (approximately $34 billion). Finance Minister Satsuki Katayama confirmed earlier Monday that Japan had stepped into the market on Friday. The continued yen-buying by Japanese authorities underscores their determination to counter bearish bets against the yen. The US Treasury joined the effort last week to shore up the yen, marking the closest coordination on exchange rate policy in 15 years. Analysis of the BOJ accounts does not reflect the scale of US intervention in the market, but US involvement may have reduced the amount of funds Japan needed to achieve the same exchange rate effect. (Jin10 Data APP) Macro: Today, data such as the US Trade Balance for June, US JOLTS Job Openings for June, and US Factory Orders MoM for June will be released. Attention should be paid to: SpaceX's Q2 2026 earnings release; the FMS 2026 Flash Memory Summit to be held August 4-6, with storage giants such as Samsung and SK hynix in attendance. Crude Oil: Overnight, both crude oil futures plunged, with WTI tumbling 5.44% and Brent falling 4.81%. Last Sunday, Trump said publicly that the US and Iran would start talks on Monday, adding that "after the Hormuz agreement comes the nuclear deal." Iran earlier Monday denied the claim of talks with the US. During afternoon US stock trading, Trump again said negotiations with Iran were still ongoing. He said the US is currently in dialogue with Iran at its request, a process supported by Saudi Arabia, the UAE, Qatar, and other countries, and stressed that this will be Iran's "last chance to sign a good deal." Signals are currently mixed, and the market has turned to a wait-and-see mode. Substantive risks in the Strait of Hormuz have yet to dissipate. The UK Maritime Trade Operations reported an explosion near a tanker off the coast of Oman on Sunday. This waterway, which in peacetime carries about one-fifth of global crude oil and LNG shipments, already saw an LNG carrier attacked late last week. On the futures curve, Brent is in a pronounced backwardation structure, reflecting still-tight physical market supply. (Wall Street Insights)

SMM, August 3 News: On August 3 early trading, the broader market was under pressure and consolidated, while high-end manufacturing segments moved independently. As of the close on August 3, the Motor II sector rose 2.67%, with individual stocks such as Jiangxi Special Electric Motor hitting the daily limit up, and Wolong Electric Group, Yifan Transmission, Bafang Electric, Keli Motor, MOONS', and Jiangsu Leili leading the gains. The strength in motor sector futures was supported by multiple drivers: first, Unitree Robotics is about to launch its subscription and Tesla raised its long-term capacity target for humanoid robots, heating up expectations for mass production of joint servo motors; second, the rare earth permanent magnet sector rose simultaneously, with upstream permanent magnetic material prices increasing, boosting profit expectations for high-performance motors; third, the replacement policy for IE4/IE5 high-efficiency motors continues to be implemented, opening up room for stock replacement of traditional industrial motors; combined with stockpiling expectations from downstream automakers and equipment manufacturers in mid-to-late August, some market funds favoured the motor sector, driving the collective rise. Market News [State Council Executive Meeting Decides to Approve Four Nuclear Power Projects Including Liaoning Zhuanghe Phase I] The State Council Executive Meeting decided to approve four nuclear power projects including Liaoning Zhuanghe Phase I. The meeting pointed out that nuclear power units should be built and operated to the highest global safety standards, with strengthened full-chain and all-domain safety oversight to ensure nuclear safety is absolutely risk-free. [China Approved 8 New Nuclear Power Units, with Total Project Investment Exceeding 170 Billion Yuan] In 2026, China opened the floodgates for new nuclear project approvals. According to CCTV News on July 31, the State Council Executive Meeting held that day decided to approve four nuclear power projects including Liaoning Zhuanghe Phase I. It is reported that the new projects approved at this meeting include Zhejiang Jinqimen Nuclear Power Plant Phase II (Units 3 & 4), Guangdong Taipingling Nuclear Power Plant Phase III (Units 5 & 6), Liaoning Zhuanghe Nuclear Power Plant Phase I (Units 1 & 2), and Shandong Laiyang Nuclear Power Plant Phase I (Units 1 & 2), totaling 8 new units. Nuclear power projects have historically been an important boost to expanding effective investment, and it is estimated that the total investment of these new projects will exceed 170 billion yuan. (Jin Shi Data) [State Administration for Market Regulation: '15th Five-Year Plan' to Foresightfully Deploy High-Level Detection Platforms for Strategic Emerging Industries such as Integrated Circuits, New Energy, Biomedicine, and Humanoid Robots] The State Administration for Market Regulation held a press conference on July 21 to introduce the development achievements of China's inspection and testing service industry during the '14th Five-Year Plan' period. During the '15th Five-Year Plan' period, the administration will implement the Innovation Pilot for Inspection Testing to Promote Industrial Optimization and Upgrading, and the Three-Year Action for National Quality Inspection Center Quality Improvement and Optimization, foresightfully deploying high-level detection platforms for strategic emerging industries such as integrated circuits, new energy, biomedicine, and humanoid robots, and using digital transformation to drive service model innovation. Strengthen deep collaboration with industry chain leaders and research institutes, jointly tackle a number of key core technologies, and promote the upgrading of inspection and testing from a single service to "industry chain synergy," shifting from being a "post-event quality gatekeeper" to a "full-process innovation enabler." Coordinate the capacity building for green and low-carbon, food safety, and high-risk industrial product testing, and build a solid quality defense line for industrial development and people's livelihood safety. [China's robot industry chain sees explosive orders; a robot company receives over 10,000 orders in a month] Currently, publicly listed firms are gradually releasing their semi-annual reports and earnings forecasts. In H1 this year, the robot sector reported widespread positive earnings. From core parts to complete machine integration, from motion control to AI computing hardware, the robot industry chain is shifting from "concept-driven catalysts" to a new phase of "order volume growth and profit realization." MIIT data shows that from January to May, the revenue of China's above-designated-size robot enterprises exceeded 90 billion yuan, up 26.9% YoY, with an average annual growth rate of over 20% over the past five years. A robot company just launched a new humanoid robot product at the end of last month and received over 10,000 orders in less than a month. Another company's head stated that their frameless motor is a core component for humanoid robot joint actuation, and in H1 this year, the company's orders on hand exceeded 1 million units, an increase of more than nine times compared to last year. (Jin10 Data) [General Administration of Customs: In H1, China's exports of lithium batteries, wind turbines, and other green energy-related products increased by 37.6% and 35.6% respectively] The State Council Information Office held a press conference today to introduce China's foreign trade performance since the beginning of this year. Currently, the global green and low-carbon transition is deepening, and the construction of new energy and rising consumer demand align well with China's green products. In H1, China's exports of lithium batteries, wind turbines, and other green energy-related products increased by 37.6% and 35.6% respectively; green mobility products such as EVs, electric railway locomotives, electric motorcycles, and bicycles grew by 68.7%, 45.1%, and 31.5% respectively. Tesla Optimus project lead Ashok Elluswamy announced on social media on July 30, 2026, that the long-term annual capacity target for Optimus had been revised to 10 million units. This figure is ten times the originally planned capacity of 1 million units, marking a comprehensive upgrade in Tesla's humanoid robot capacity planning. [Google DeepMind launches Gemini Robotics 2 robot AI model] Google DeepMind has launched the Gemini Robotics 2 model. According to the introduction, Gemini Robotics 2 enables robots to reason about every action, thereby unlocking a broad range of tasks. For example, it can enable a humanoid robot to walk, squat, stretch, and manipulate objects to clean a cluttered room. It can even collaborate with other robots to complete tasks faster. This deep intelligence can also run locally on devices while seamlessly adapting to entirely new robot bodies within just a few hours. Meanwhile, Google DeepMind also launched two other robotic AI models — Gemini Robotics ER 2 and On-Device 2. Gemini Robotics ER 2 is the most powerful embodied reasoning (ER) model, a vision-language model (VLM) that will enable robots to communicate with humans, understand the physical world, and plan multi-step tasks lasting several minutes. On-Device 2 is the most efficient vision-language-action model (VLA), optimized to run locally on robotic devices. The model can now quickly adapt to entirely new robot entities with just hours of data. [Dayang Motor: Plans to Repurchase Shares Worth 120 Million–160 Million Yuan] Dayang Motor announced that the company plans to repurchase shares worth 120 million to 160 million yuan for future employee stock ownership plans or equity incentive plans, with a repurchase price not exceeding 11.5 yuan per share. [Xiangtan Electric: Expected Significant YoY Growth in Revenue from Synchronous Condensers and Flywheel Energy Storage This Year] Xiangtan Electric stated on an interactive platform that the company has actively developed new products in recent years, advancing R&D in synchronous condensers, flywheel energy storage, marine power, aviation electrification, and high-speed motors , achieving notable results in market promotion of synchronous condensers and flywheel energy storage. Revenue from these products is expected to see significant YoY growth this year; marine power, aviation electrification, and high-speed motors have also made some progress in market promotion. [BYD Plans to Launch Humanoid Robot in August This Year] Recently, reports suggested that BYD's humanoid robot is about to be launched. On July 28, BYD responded that it plans to launch the humanoid robot at "Di Space" in August. (Jin10 Data) [Unitree Robotics' Wang Xingxing: The "ChatGPT Moment" for Embodied AI Could Arrive Within Two to Three Years] According to the World Internet Conference news, the 2026 World Internet Conference Digital Silk Road Development Forum, themed "Smart Convergence on the Silk Road, Digital Opening of a New Journey – Jointly Building a Community with a Shared Future in Cyberspace," held its opening ceremony in Xi'an, Shaanxi, on July 22. Wang Xingxing, founder and CEO of Unitree Robotics, attended the ceremony and delivered a speech. Over the past few years, humanoid robots have made rapid progress from walking to dancing, from kung fu combat to simple services. Wang Xingxing believes that the "ChatGPT moment" for embodied AI is expected to arrive within as soon as two to three years: by then, robots will be able to directly work and achieve many basic functions in most unfamiliar scenarios. Therefore, everyone should make various plans and arrangements in advance based on their actual situation, so as to seize new opportunities in the intelligent era. (Jinshi Data) [Unitree Robotics: Preliminary Inquiry Date Is August 5, Offline Subscription Date Is August 10] Unitree Robotics announced that the company is conducting its initial public offering and listing on the STAR Market. The offering will be conducted through a combination of strategic placement, offline issuance, and online issuance. The company plans to publicly issue 40,446,434 shares, accounting for 10% of the total share capital after the issuance, with the total share capital after issuance at 404,464,340 shares. The preliminary inquiry date is August 5, 2026, and the offline subscription date is August 10, 2026. The company has a special voting rights mechanism arrangement, under which the actual controller, Wang Xingxing, controls a total of 68.78% of the voting rights through a differentiated voting rights arrangement. [Unitree Robotics’ Chen Li: Core Technologies of Joint Motors Entirely Self-Developed, Upstream Only Relies on Copper Wire, Magnets and Other Raw Materials] From July 3 to 4, the 2026 Yabuli Forum Innovation Annual Conference was held in Shanghai. Chen Li, co-founder of Unitree Robotics, stated that the company has achieved independent R&D and production of core parts and has integrated the underlying technology architecture, possessing the capability to independently develop and produce a full range of products including quadruped robots, humanoid robots, robotic arms, pumps, dexterous hands, etc., covering diverse application scenarios. In response to the view that joint motors rely on external procurement, Chen Li said that the core technologies of Unitree’s joint motors are entirely independently developed, with the upstream only involving the supply of basic raw materials such as copper wire and magnets, achieving a completely independent and controllable supply chain. He stated that by independently developing the full set of core technologies, Unitree's products maintain industry-leading levels in cost-effectiveness, reliability, stability, and consistency. At the same time, the company continues to invest in the R&D of core technologies such as robot control, perception, navigation, and AI algorithms, and has cumulatively applied for multiple patents. (Jinshi Data) [Report: China’s Embodied AI Market Size Has an Average Annual Compound Growth Rate of 22% to 23%] The "China Embodied AI Industry Development Report (2026)" was released in Shanghai on July 2. The report states that China has become one of the fastest-growing embodied AI markets in the world. According to calculations by multiple research institutions, the market size of China’s embodied AI is expected to grow from approximately 213.3 billion yuan in 2018 to 1.09 trillion yuan in 2026, with an average annual compound growth rate of 22% to 23%. The report notes that China possesses the world’s only and most complete full-chain industrial support for embodied AI, spanning from core sensors, servo motors, and harmonic reducers to whole-machine assembly and algorithm adaptation, forming a highly clustered industrial ecosystem. The agglomeration effect of parts supply industries in the Yangtze River Delta and Pearl River Delta regions allows new prototype iteration speeds to significantly outpace those in Western countries, and China’s embodied AI sector enjoys particularly prominent cost advantages, with overall manufacturing costs 30% to 50% lower than outside China. [Musk Elon: Optimus robot production will progress extremely slowly in the early stages because all technologies are being developed from scratch] Tesla CEO Musk Elon posted a photo of himself at the Optimus humanoid robot production line at the Fremont factory in California, US, on social media, sparking discussions about Optimus’ mass production progress. Some users noted that Tesla has recently reduced public demonstrations of Optimus, possibly because mass production progress has already exceeded market expectations. In response, Musk replied: “No, Optimus production is going to be extremely slow at the beginning because everything is brand new. It’s not like building cars.” [Bernstein: Japanese automakers’ interest in humanoid robots rekindled] Analysts at Bernstein said in a report that interest from Japanese automakers in humanoid robots appears to be reemerging. They pointed out that Mitsubishi Motors has said it signed a memorandum of understanding with a Japanese startup to jointly develop and mass-produce humanoid robots. The analysts noted that Japanese automakers have a long history of involvement in robotics. By 2050, global humanoid robot shipments could reach 49 million units, and the market would expand to approximately $729 billion. Given the overlap in core technologies (including actuators, sensors, batteries, control units, and AI software), this makes humanoid robots an attractive sector where automakers and suppliers have already accumulated expertise through vehicle deployment. Motor Spot Price To learn more about tax-inclusive weekly prices for various models such as three-phase asynchronous motors, variable frequency motors, DC brushed motors, flat motors, gear motors, linear motors, coreless motors, and motor cores, please click to view(). Voices from All Sides A research report from Huaxin Securities pointed out: Domestically, Yushu’s inquiry and subscription dates have been confirmed; outside China, the Optimus mass production process is accelerating toward implementation, Tesla has clarified capacity targets and issued parts procurement guidance, and the first mass production line is about to come online. We are bullish on the humanoid robot sector ushering in a definitive market trend. It is recommended to prioritize positioning in certain targets within the Tesla chain, which benefit from capacity ramp-up and are expected to drive order growth; at the same time, pay attention to quality enterprises with core parts R&D capabilities and adapted to the mass production needs of humanoid robots, and seize the beta opportunities in the sector. CITIC Securities pointed out that Tesla combines leading AI large model technology with large-scale manufacturing capabilities, and the company is in the top tier of the global embodied AI industry chain. It firmly believes in the mass production and application prospects of Tesla's robots. Tesla's Optimus is about to enter the production phase, and the Cybercab is undergoing testing as planned. It is recommended to focus on core players in the industry chain. A research report from China Securities stated that in July, different rare earth varieties exhibited significant differences in performance. Pr-Nd oxide rose first and then declined, terbium oxide jumped and then pulled back, and dysprosium oxide remained generally stable. Supply side, tight raw material supply issues at scrap plants led to a notable decline in production. According to SMM, Pr-Nd oxide production was down 11% MoM in July, and there may be marginal improvement in August, but overall production remains suppressed. Downstream, the high-temperature holiday season led to reduced operations at motor factories, with demand pulling back. August remains in the off-season, but the September-October peak season is a traditional peak consumption period. Market expectations for the start of demand recovery remain strong. In mid-to-late August, downstream stockpiling is expected to restart, breaking the supply-demand weakness and driving prices to stabilize and move upward. Wanlian Securities pointed out that the humanoid robot industry is currently at the dawn of transitioning from technological breakthroughs to large-scale commercialization. Supply side, Tesla, Unitree Robotics, Agibot, and UBTECH are steadily advancing the mass production pace. Demand side, an aging population and climbing labor costs serve as long-term drivers. Simultaneously, with policy and capital forces jointly boosting, AI large models continuously infuse soul into robots. Humanoid robots are expected to form an emerging industry, gradually moving from B-end to C-end, with vast future market space. Yingda Fund recently released the Q2 2026 report of its fund. The Q2 report of the Yingda Flexible Allocation Fund managed by fund manager Liu Yubin shows that, looking ahead, the fund remains optimistic about opportunities in the humanoid robot industry chain, particularly the Tesla Optimus supply chain. It holds positions centered on core Tier 1 suppliers and key parts top-tier players, strengthening a performance and order-driven approach, and focusing on the mass production progress of global leaders and the pace of commercialization of the domestic supply chain. Liu Yubin judges that data is the core foundation for the iteration of general embodied AI. Subsequently, he will increase allocation to quality targets that combine self-developed data acquisition hardware barriers and build complete end-to-end data closed loops, while continuously improving the portfolio framework. (Jinshi Data APP) Want to know more about the fundamentals, technicals, and policy aspects of the motor industry? Please participate in

[Flat Products] Today HRC and other flat-product export prices edged down 1-3 USD/tonne day on day, with HRC transaction prices at 479-483 USD/tonne.Futures fell sharply, market enquiry sentiment weakened, and traders reported few actual deals. [Billet] Today billet export FOB prices fell 1-3 USD/tonne, with Jiangyin port offers at 445–450 USD/tonne. According to feedback, the off-season for domestictraditional construction steel demand is pronounced and billet exports have become the main focus; competition in the export trade is fierce and export offers keepweakening, while amid the falling market overseas buyers mostly stay on the sidelines and deals are mediocre. [Rebar] Today rebar export offers at Tianjin port slipped 1-2 USD/tonne, with overall transaction prices at 474-480 USD/tonne. According to exporters, futuresextended their decline today and market confidence was weak; overseas buyers largely stayed on the sidelines with only a few enquiries, and trading was subdued.Some mills concluded deals at concessions, but mostly for small-lot orders.