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.

2026 is the first year of the 15th Five-Year Plan. Against a backdrop of intensifying global macro volatility and deepening high-quality development in China, the zinc industry is undergoing profound changes: mine-side tightness and the release of smelting capacity create structural tension, domestic and overseas inventory divergence reflects the complex situation of supply-demand rebalancing, and technological innovation is becoming a key driving force to resolve contradictions and reshape the pattern. New energy, new-type infrastructure, and other key areas under the 15th Five-Year Plan are injecting new momentum into traditional zinc consumption, while green, low-carbon, and circular economy models are also accelerating the restructuring of the industrial logic driven by technological innovation. With the collective support of upstream and downstream enterprises in the zinc industry, industry associations, and related parties, the 2026 SMM Zinc Conference and the 8th Hot-Dip Galvanizing Industry Development and Technology Innovation Forum, the 14th Zinc Salt, Zinc Oxide and Zinc Secondary Resources Development Forum, and the Die-Cast Zinc Alloy Development Forum will be held on August 6-8 in Qingdao, Shandong. With the theme of “Harnessing Zinc Momentum, Building the Zinc Industry, Embarking on a New Journey,” the conference is driven by macro perspectives and fundamental analysis, closely follows the main theme of high-quality development under the 15th Five-Year Plan, focuses on the four dimensions of macro policies, supply-demand pattern, global trade, and technological innovation, drives cost reduction and efficiency gains through technological breakthroughs, responds to market fluctuations through collaborative innovation, and jointly draws a new blueprint for the high-quality and sustainable development of the zinc industry. Jiangsu Runtong Zinc Industry Co., Ltd. will make a grand appearance at this grand event, discussing industry development trends with peers and jointly propelling the zinc industry to new heights. Click to register immediately and witness and participate in this significant and far-reaching industry event, and together create a brilliant new chapter! Jiangsu Runtong Zinc Industry Co., Ltd. is a professional manufacturer of zinc oxide, with strong technical strength, complete production equipment, advanced production processes, and thorough detection methods that ensure superior quality. Main products include calcined zinc oxide, direct-process zinc oxide, active zinc oxide, indirect-process zinc oxide, etc. Procured products include low-grade zinc oxide, zinc ash (furnace ash, malleable iron ash, small parts ash, etc.), zinc slag, and zinc dross. The company's annual production is 20,000 mt for the indirect process, 15,000 mt for the direct process, and 30,000 mt for calcined products, all produced with advanced domestic processes. All product quality indicators meet or exceed national standards, with white color and good dispersibility, suitable for the rubber, magnetic, and ceramic glaze industries, and are widely praised by customers. The company strictly honors its reputation, adhering to the corporate philosophy of “Be honest in life, do your best in work, and make zinc with heart” and the business approach of “sincere cooperation, mutual benefit and win-win,” to make friends with peers worldwide. Contact Mr. Xu 136-4155-2068 No. 209 Zhongxing Road, Daduo Town, Xinghua City, Jiangsu Province Long press to scan and sign up now 2026 SMM Zinc Conference

Overall assessment: Driven by new capacity releases in Southeast Asia and expansion into emerging markets, China’s prebaked anode exports are expected to maintain a mild growth trajectory in H2 2026, with full-year cumulative export volume likely sustaining a double-digit YoY growth rate.

7.22 SMM Alumina Morning Comment Futures: The most-traded alumina 2609 contract showed a retreat after rapid rise overnight, opening at 2,733 yuan/mt, briefly rising to 2,752 yuan/mt before consolidating and pulling back to a low of 2,722 yuan/mt, eventually closing at 2,729 yuan/mt, down 23 yuan/mt from the session high. The daily candlestick formed a small bearish candlestick with a long upper shadow, indicating heavy selling pressure above. Trading volume decreased by 6,948 lots from the previous trading day to 115,000 lots, with volume remaining low and market activity subdued. Open interest decreased by 383 lots to 307,000 lots, as capital continued to flow out slightly and both bulls and bears lacked the willingness to enter continuously. Technically, the closing price of 2,729 yuan/mt remained above the MA5 (2,721.6), MA10 (2,706.2), and MA20 (2,706.95), with the short-term moving averages in a bullish alignment and the short-term center edging higher. However, after peaking at 2,752 yuan/mt during the day, it was clearly blocked and pulled back, with this level forming double resistance with the MA40 (2,740.15), validating the downward pressure from the medium-term moving average. Overall, the futures currently show a consolidation pattern characterized by support from short-term moving averages, notable pressure from the medium-term moving average, and insufficient volume, leaving the near-term direction unclear. Attention should focus on whether the resistance around the MA40 (2,740.15) can be effectively broken, and whether volume can recover sufficiently. If volume remains low and prices cannot reclaim 2,750 yuan/mt, prices are expected to consolidate on a subdued note within the 2,720–2,750 yuan/mt range, with support at the MA5 (2,721.6) and the 2,700 round figure. Ore side: As of July 21, 2026, the SMM Imported Bauxite Index was at $70.36/mt, unchanged from the previous trading day; the SMM Guinea FOB average price was $39/mt, unchanged from the previous trading day; the SMM Guinea bauxite CIF average price was $70.5/mt, unchanged from the previous trading day; the SMM Australian low-temperature bauxite CIF average price was $64/mt, unchanged from the previous trading day; the SMM Australian high-temperature bauxite CIF average price was $58.5/mt, unchanged from the previous trading day; the Malaysian bauxite CIF average price was $52/mt, unchanged from the previous trading day; the Malaysian bauxite CIF (washed) average price was $62.5/mt, unchanged from the previous trading day; the Ghanaian bauxite CIF average price was $78/mt, unchanged from the previous trading day; the Turkish bauxite CFR price was $78.5/mt, unchanged from the previous trading day. Overall, on the domestic ore front, mining operations in Shanxi, Henan, and other areas are gradually resuming, while alumina refineries continue to push for lower prices, leaving domestic ore prices largely in the doldrums. Imported ore side, ocean freight rates stayed high, coupled with ongoing uncertainty over Guinea’s policies, providing some support to ore prices. However, raw material inventory at domestic alumina refineries remained high, purchasing interest was limited, and market price negotiations persisted. In the short term, imported ore prices are expected to continue to consolidate at highs. Going forward, close attention still needs to be paid to Guinea’s bauxite quota policy and changes in Australia-China ocean freight rates. Spot Prices: As of July 21, 2026, the SMM Alumina Index stood at 2,719.92 yuan/mt, down 4.16 yuan/mt; the SMM Shandong Alumina Index stood at 2,725.50 yuan/mt, down 4.21 yuan/mt; the SMM Henan Alumina Index stood at 2,752.16 yuan/mt, down 6.75 yuan/mt; the SMM Shanxi Alumina Index stood at 2,757.36 yuan/mt, down 8.04 yuan/mt; the SMM Guizhou Alumina Index stood at 2,731.28 yuan/mt, down 0.80 yuan/mt; and the SMM Guangxi Alumina Index stood at 2,632.27 yuan/mt, down 1.62 yuan/mt. Basis Daily: According to SMM data, on July 21, the SMM Alumina Index was at a discount of 7.08 yuan/mt against the most-traded contract’s latest traded price as of 11:30. Warrant Daily: On July 21, total registered alumina warrants stood at 222,300 mt, down 903 mt from the previous trading day. By region, Shandong registered warrants were 16,176 mt, down 1,800 mt; Henan registered warrants were 1,802 mt, unchanged; Guangxi registered warrants were 12,941 mt, unchanged; Gansu registered warrants were 13,472 mt, down 5,721 mt; and Xinjiang registered warrants were 176,900 mt, up 897 mt. Markets Outside China: As of July 21, 2026, the FOB Western Australia alumina price was $335/mt; the ocean freight rate was $32.35/mt; and the USD/CNY offered exchange rate was 6.78. Based on these, the equivalent selling price of overseas alumina at major Chinese ports was approximately 2,897.78 yuan/mt, a premium of 177.86 yuan/mt against the SMM Alumina Index that day. Summary: Currently, total alumina inventory in China edged up MoM, with overall changes limited. In terms of structure, raw material inventory at aluminum smelters declined somewhat, mainly because spot prices remain at relatively high levels, prompting downstream aluminum smelters to slow their procurement of high-priced raw materials and rely more on drawing down existing in-factory inventory. In-factory inventory at alumina refineries increased slightly, but production cuts due to maintenance at some enterprises in Shanxi and new capacity releases in south China largely offset each other, resulting in limited overall growth. At ports, affected by the arrival of new vessels, inventories have rebounded somewhat; regarding warrant inventory, affected by invoicing issues and the narrowing spread between futures and spot prices, the willingness to ship to delivery warehouse has weakened, and inventories have continued to decline; in-transit and station inventories have accumulated somewhat, mainly due to earlier warrants maturing and being released as spot, coupled with continued shipments from Guangxi, which has increased supply in the circulation link. It is expected that in the short term, the overall operating pattern of the alumina market will not change much. Although some enterprises using domestic ore and those with tight ore supply have maintenance plans, the impact on monthly production is limited, and inventory levels are likely to remain at current states. On the price side, as the regional spot mismatch problem gradually eases, the spot price center may pull back slightly, and the subsequent trend is likely to remain under pressure. [All other data beyond publicly available information are derived based on public information, market communication, and SMM's internal database model, processed by SMM. They are for reference only and do not constitute decision-making advice.]

By 2030, approximately 80,000 kilometers of facility renovations will be carried out, a new round of rural road improvement actions will be launched, and 500,000 kilometers of rural roads will be newly built or upgraded.

SMM, July 21: US Secretary of State Rubio stated in a media interview on the evening of the 19th that the Trump administration “remains open to a diplomatic solution.” Expectations of a negotiated settlement between the two sides in the market tug-of-war heated up, and international oil prices pulled back in tandem. Earlier inflation concerns driven by energy prices cooled, and the market’s bets on the US Fed holding high interest rates weakened marginally. Coupled with a sharp rebound in Asia-Pacific stock markets today, overall market risk appetite improved. The built-up sentiment for an oversold rebound in precious metals was released in a concentrated manner, and multiple positive factors resonated to drive a rebound in both precious metals futures and equity prices. Zhaojin Gold, Shandong Humon Smelting, Western Gold, and other precious metals enterprises reported positive H1 earnings forecasts, and the favour from some market funds also contributed to the synchronized strength in precious metals futures and stocks. As of around 13:35 on July 21, COMEX gold was up 1.07% at $4,058.7/oz; SHFE gold main contract rose 1.31% to 885.6 yuan/g; COMEX silver gained 2.13% to $58.285/oz; SHFE silver main contract advanced 3.65% to 14,186 yuan/kg; silver T+D increased 2.84% to 14,113 yuan/kg. Additionally, platinum main contract rose 1.63% to 399.3 yuan/g, and palladium main contract gained 2.87% to 302.4 yuan/g. Precious metals stocks surged. As of the close on July 21, the precious metals sector rose 7.34%. Among individual stocks: Xingye Silver&Tin, Chifeng Gold, and Shengda Resources hit the daily limit up; Xiaocheng Technology, Shanjin International, Hunan Silver, Zhongjin Gold, and Shandong Gold were among the top gainers. News [Russia’s gold holdings fell to 73.4 million ounces in June] The Russian central bank stated on its website that as of month-end June, the value of its reserves was $299 billion, compared with $325.9 billion at the end of May. [World Gold Council: Chinese market gold ETFs saw significant inflows in H1] According to the World Gold Council, gold prices weakened in June, erasing earlier gains, and H1 ended with a decline. Despite outflows in June, Chinese market gold ETFs still recorded significant inflows in H1, driving total assets under management slightly up to 243 billion yuan, with total holdings increasing by 29 mt to 277 mt. [Zhaojin Gold: expects H1 2026 net profit to increase 347.48%-436.98% YoY] Zhaojin Gold disclosed its earnings forecast on the evening of July 14. It expects H1 2026 net profit attributable to parent at 200 million to 240 million yuan, up 347.48%-436.98% YoY; and non-recurring net profit of 80 million to 116 million yuan, up 490.44%-756.14% YoY. [Shandong Humon Smelting: Estimated H1 2026 Net Profit Up 81.06%-122.36% YoY] Shandong Humon Smelting disclosed its earnings forecast on the evening of July 14, estimating H1 2026 net profit attributable to shareholders at 570 million – 700 million yuan, up 81.06%–122.36% YoY; adjusted net profit is estimated at 272 million – 402 million yuan, down 2.03%–33.73% YoY. [Western Gold: Estimated H1 2026 Net Profit Up 280.16%-333.39% YoY] Western Gold disclosed its earnings forecast on the evening of July 13, estimating H1 2026 net profit attributable to shareholders at 500 million – 570 million yuan, up 280.16%–333.39% YoY; adjusted net profit is estimated at 490 million – 580 million yuan, up 172.96%–223.09% YoY. [Zhongjin Gold: Estimated H1 2026 Net Profit of 4.1 Billion – 4.6 Billion Yuan, Up 52.15%-70.7% YoY] Zhongjin Gold disclosed its earnings forecast on the evening of July 13, estimating H1 2026 net profit attributable to shareholders at 4.1 billion – 4.6 billion yuan, up 52.15%–70.7% YoY; adjusted net profit is estimated at 4.05 billion – 4.55 billion yuan, up 36.96%–53.87% YoY. Spot Market Silver On July 21, the SMM 1# silver ex-factory reference average price in the morning was 13,825 yuan/kg, with the average up 0.7% from the previous trading day. In the spot market, premium/discount quotes that day extended the trend of previous days, with consumption remaining sluggish and transactions being mostly at parity to slight discounts. The spot-futures price spread on the futures market widened slightly, and some suppliers reduced shipments. Early morning quotes in the Shanghai area were mainly concentrated at TD parity to +5 yuan/kg, with some rigid demand orders supporting transactions and suppliers’ willingness to sell weakening. In the Shenzhen area, some national-standard cargoes were concentrated around TD -5 yuan/kg to parity, with low-priced cargoes existing but having limited disruption. That day, the market’s premium/discount against the SHFE2608 contract was at a discount of 20 – 30 yuan/kg; against the most-traded SHFE contract 2610, it was at a discount of 40 – 60 yuan/kg. Overall, precious metals lacked clear guidance from news, and recently both domestic and overseas futures markets have shown signs of bulls entering, so attention can be paid to changes in open interest. Spot premiums/discounts traded near parity, and the pattern of weak supply and demand persisted. Platinum On July 21, spot platinum was quoted at 395 – 398 yuan/g, with the average price at 396.5 yuan/g, unchanged from the previous trading day. Spot market, mainstream quotations for platinum were at parity to a premium of 1 yuan/g against the PT2608 contract. The premiums/discounts of mainstream quotations were basically flat from the previous trading day. Today, the price spread between the GFEX platinum October and August futures contracts widened slightly. In the morning, suppliers' quotes for spot platinum were mainly at premiums of 0.5 to 1 yuan/g against the most-traded GFEX contract. Later, as the futures market rose, some suppliers adjusted their quotes to around parity, where transactions were made. Downstream users made small purchases based on orders. Overall, the spot platinum market saw normal trading volumes today. In July, a Section 232 window for platinum and palladium will open. If the US imposes tariffs on platinum and palladium after the 180-day negotiation period ends, it will support prices in the short term. Voices from Various Sides Regarding the future trend of precious metals, some institutions' views are as follows: Jinyuan Futures research report stated: The recent escalating US-Iran tensions have pushed oil prices higher, lifting inflation expectations. Precious metals remained under pressure but their decline slowed. After the sharp pullback in gold and silver prices, bargain-hunting buying emerged. The correction in US tech stocks will also redirect some funds into precious metals. Although the correction trend in gold and silver is not yet over, the probability of a rebound is increasing. Hundun Futures research report noted: As geopolitical tensions continue to seesaw, the market is not yet convinced enough to expect an overall pullback in oil prices. Inflation expectations could rebound from lows, limiting the decline in US bond yields. Hence, the rebound in precious metals remains limited under these circumstances. The US Fed's relatively cautious remarks have also capped the rebound in precious metals. Fed Chairman Warsh said the balance sheet should be kept as small as possible so that it can expand in a crisis. The labour market looks quite good, but he is not optimistic about inflation and is dissatisfied with it; Fed's Williams stated that with inflation still elevated, it must be brought back sustainably to the 2% target, and the current monetary policy stance is very well positioned to achieve that; Logan said that a modest rate hike now would help better balance the outlook and risks, and moderate tightening now is better than having to tighten significantly later. The Fed's stance is clearly cautious, unwilling to let the market overprice a relaxation of vigilance. The market dares not further trade interest rate cut expectations, and precious metals weakened again. Liquidity and risk appetite remain weak under the influence of the equity market. As AI fundamentals are being reassessed, deleveraging in funding further amplifies volatility. The continued decline in the equity market has made liquidity relatively tight and restricted the drivers for precious metals. At this stage, the overall market is still dominated by sentiment-driven trading. Geopolitics, the AI narrative, and economic/inflation resilience mean the US dollar index and US bond yields will remain volatile. A trend reversal in precious metals still needs to be observed. Analysts at ANZ Research said in a report that physical gold demand and central bank purchases are supporting the gold market. These analysts added that while gold faces short-term headwinds from the US Fed’s tightening expectations and a strong US dollar, investment positions in gold look thin after months of exchange-traded fund outflows, suggesting that the scope for further declines may be limited. A high interest rate environment typically weighs on non-yielding assets such as gold. (Zhitong Finance) Goldman Sachs said that despite pressure from the US Fed’s tightening-leaning expectations, central bank buying is expected to provide a floor for gold. Demand remains robust, with central banks purchasing 81 mt in May and a three-month average of 67 mt per month, well above the pre-2022 average of 17 mt, according to the firm’s estimates. Goldman Sachs analysts stated, “We believe the trend of central banks increasing gold holdings will persist for years as they diversify reserves to hedge geopolitical and financial risks.” The bank expects average monthly purchases of 50 mt and 40 mt for this year and next year, respectively. (Jinshi Data APP) Soojin Kim, analyst at MUFG, said, “Recent price action suggests that the market is placing greater weight on the possibility of US interest rates staying high for longer rather than on gold’s traditional safe-haven demand. This leaves gold vulnerable to pressure unless geopolitical risks further translate into a broad deterioration in financial market sentiment.” (Jinshi Data APP) Asset manager Fidelity International said it plans to rebuild its gold position, which it reduced earlier this year, at an appropriate time in the future, believing that gold’s long-term momentum remains strong. Ian Samson, multi-asset portfolio manager at Fidelity International, recently said, “We plan to add back to gold, the question is just timing.” He said he reduced the gold allocation to a neutral level during the January-February period, when the multi-year bull run in gold abruptly ended. Samson expects the gold market to re-enter a bull market sometime in 2027. The logic of a return to a bull market would only be disrupted in a scenario where “governments re-embrace fiscal discipline and central banks truly commit to bringing inflation back down,” he added, “but I don’t think we are in that world right now.” Samson also said that continued gold purchases by central banks—a key driver of the previous bull market—will continue to support gold prices. Last Thursday, US Eastern Time, technical strategists at Bank of America warned that the pullback in gold so far this year may still have significant room to run, and its trajectory could resemble the devastating bear markets that followed the sharp rallies in gold in 1980 and 2011. They proposed a phased buying strategy, suggesting full allocation only when gold prices fall to the $3,450–$3,250 range. Bank of America analysts pointed out in a technical research report that gold prices have now accumulated a series of bearish signals, with the risk of a sustained drop increasing: a death cross pattern, elevated net long positions, a bearish topping candlestick, a TD Sequential exhaustion signal, and an RSI reading of 90 at the recent high—a level consistent with the gold price peaks in 1980 and 2011. UBP lowered its year-end gold price target to $4,800 per ounce and, while remaining long-term bullish on gold, is not adding to positions for now. Its current gold allocation is neutral at around 5%, down from an overweight position earlier this year. Paras Gupta, head of discretionary portfolio management for Asia at UBP, said in an interview that the previous overweight position "posed the greatest risk to our portfolios." UBP would like to see the Middle East ceasefire agreement hold and more clarity on inflation and interest rate trends before adding to its positions. Gupta said that for investors currently without gold holdings, a drop below $4,000 per ounce would be an extremely attractive entry point. (Zhitong Finance) Recommended reading:

Recently, the Energy Bureau of Shandong Province issued the Implementation Plan for Scenario Development in the New Energy Sector of Shandong Province, systematically deploying measures around new energy technology innovation, scenario cultivation, and industry development. The plan proposes to use scenario development as a lever to accelerate the transformation of new energy technology achievements and their industrialisation application, further cultivate new quality productive forces in the new energy sector, and support the province’s green, low-carbon, and high-quality development. The Implementation Plan clarifies the commitment to driving technology R&D, achievement transformation, and industry clustering through new energy scenario development, combining resource endowments and industrial foundations to create demonstrative, replicable, and scalable application scenarios. According to the plan, by 2027, the province will have cultivated more than 30 projects in the provincial scenario bank, established 2 to 3 provincial scenario innovation laboratories, and launched a batch of replicable and scalable demonstration scenarios. By 2030, a nationally leading new energy scenario innovation ecosystem will be basically established. Centering on key tasks, the plan follows a "4+2" overall layout to systematically advance 22 new energy scenario development tasks, covering multiple fields such as new energy production, transmission and distribution, consumption, industrial application, and urban governance. Among them, priority will be given to the comprehensive utilisation of onshore wind power, marine energy, nuclear energy, geothermal energy, and other resources to create high-efficiency clean energy development scenarios. At the same time, it will promote new-type power system applications such as direct green electricity connection, virtual power plants, and smart microgrids to enhance new energy consumption capacity. In the hydrogen energy sector, the plan proposes accelerating the deployment of integrated green hydrogen production, storage, and transportation, new energy coupled carbon capture and utilisation, hydrogen supply assurance and other application scenarios, promoting diversified new energy utilisation and synergistic industry development, and providing support for the green hydrogen industry chain construction and demonstration application. Additionally, Shandong will promote the deep integration of new energy with industries such as industrial transformation, green transportation, modern agriculture, and computing power to create scenarios for new energy empowering industrial development. It will simultaneously advance comprehensive demonstration projects such as new-type power system demonstration zones, new energy-rich areas, and new energy ports to form a new energy application system covering multiple fields and levels. To accelerate project implementation, the Implementation Plan proposes establishing a new energy scenario project reserve and dynamic management mechanism. Projects meeting the criteria will be given priority for inclusion in provincial key projects, and full life cycle service support for projects will be strengthened to promote the coordinated advancement of technology breakthroughs, achievement transformation, and project construction. Meanwhile, a scenario innovation evaluation mechanism will be established to dynamically adjust projects with slow construction progress or poor implementation effects, continuously improving the quality of scenario development. It is understood that during the plan drafting process, Shandong Province simultaneously organised the collection of landmark application scenario projects in the new energy sector. After evaluation based on policy compliance, pre-existing foundations, and demonstration and driving effects, the first batch of 67 provincial landmark application scenario projects in the new energy sector has been selected and released together with the Implementation Plan.

This week in Shandong, the ex-mine price for 64% grade alkaline iron ore concentrates on a dry basis, pre-tax, and acceptance basis was reported at 823, up 5. Miners mostly maintained normal production; a few saw a slight buildup in inventory, while most enjoyed smooth shipments with virtually no inventory. Local resources flowed increasingly to Hebei, and small mills and traders sold at prevailing market prices. The local supply of iron ore concentrates was relatively tight, providing some support to local prices. Recently, iron ore futures consolidated, and local concentrate prices may be affected. It is estimated that in the short term, local iron ore prices may consolidate on a subdued note. [SMM Steel]

[SMM Analysis: China's Phosphate Ore Imports Increased MoM in June; Egypt's Share Plunged as Substitute Supplies from Jordan, Morocco, etc. Surged] July 20, 2026, sourced from customs data. In June 2026, China's phosphate ore imports were 137,000 mt, edging up 4.5% MoM from 131,000 mt in May. Total import value was $12.567 million, up 2.8% MoM. The average import unit price was $91.5/mt, edging down 1.7% from $93.0/mt in May.

In the week ending July 17, China's sulphuric acid market broke the previous high-level stalemate, with prices broadly declining. The SMM China Copper Smelting Acid Index reported at 1,763 yuan/mt, down 21.5 yuan/mt WoW. The core drivers behind this round of price decline are as follows: First, previously shut-down units undergoing maintenance resumed production in a concentrated manner, releasing supply-side growth. Copper smelting units in Shandong, Henan and other regions that were under maintenance earlier have largely resumed operating at full capacity, and the supply of by-product acid rebounded notably. The previous "maintenance-driven price rally" logic that had supported the continuous price rise gradually played out and faded. As the supply tightness eased, downstream resistance to high-priced acid intensified, resulting in a general shift to pushing for lower prices and reducing procurement volumes. Smelters lacked the motivation to hold prices firm. Second, phosphate fertiliser demand entered a seasonal off-season window. After the peak spring plowing preparation season from January to May ends, the autumn fertilizer demand cycle from June to December has not yet fully started, leaving the market currently in a traditional demand gap period. Operating rates at downstream phosphate fertiliser enterprises pulled back, the sulphuric acid procurement pace slowed down markedly, and rigid demand support weakened. Third, the impact of low-priced cargoes flowing across regions triggered a chain of price cuts. After production resumptions and incremental output releases in major producing areas, inter-regional price spreads were gradually compressed. Low-priced cargoes radiated outward, dragging down neighboring markets and forming a regional knock-on price cut reaction, with the overall market transaction center moving down in tandem. Overall, this round of smelting acid price cuts represents a reasonable pullback under the dual impact of supply recovery and the demand off-season. Going forward, attention should be paid to the stability of copper smelter operations and the pace of autumn fertilizer procurement, which will determine the degree of support for acid prices.