The global automotive industry is accelerating its low-carbon, intelligent transformation, while China's automotive industry is shifting from scale advantages to leadership in both technology and supply chains. In 2025, the NEV penetration rate in China exceeded 50%, driving upgrades in automotive materials such as aluminum, steel, and magnesium and triggering a surge in demand for lightweight new materials. Coupled with the implementation of the EU carbon tariff, low-carbon transformation across the industry chain is imminent. As the 15th Five-Year Plan begins and the dual-carbon drive deepens, the industry urgently needs a professional platform to resolve material technology challenges. Against this backdrop, will be held on September 10-11, 2026 in Shanghai , SMM , together with co-title sponsor - Guangdong Hongjin New Materials Group Co., Ltd. , cordially invites industry peers to attend and drive the in-depth evolution of the automotive supply chain toward green, lightweight, intelligent, and globalized development. Click to attend; we look forward to meeting you at the event. Focusing on Cast Aluminum Alloy for 30 Years , Guangdong Hongjin New Materials Group has been deeply engaged in the cast aluminum alloy field for 30 years, takes "Casting the Future" as its development vision, is anchored to the core mission of "becoming a high-quality partner for the global automotive supply chain," and is a leading aluminum-based new materials enterprise at a 10-billion-yuan scale, integrating R&D, large-scale production, and one-stop support services. 1. Industrial Layout and Capacity Strengths The group has established a complete industry chain in South China, Central China, and East China, with 10 modern production sites and 2 provincial-level new materials research institutes. As of 2025, the group's annual capacity for green and low-carbon aluminum alloys exceeded 1.5 million mt. Its proprietary direct molten aluminum supply service can cover clients within a 200-kilometer radius, providing all-inclusive turnkey support throughout the melting and casting process, significantly reducing energy consumption and production costs for downstream die-casting enterprises, and helping the industry chain cut carbon emissions and improve efficiency. 2. Robust R&D to Tackle Core Material Challenges in Integrated Die Casting The company has established a dual research institute R&D system, with Huajin New Materials Research Institute and Nantong Hongjin New Materials Research Institute, and works closely with Central South University, Shandong University, Jilin University, Nantong University, Chalco Materials Research Institute, and top-tier automakers to jointly build an industry-academia-research cooperation platform. It has independently developed a series of new aluminum alloy materials with high thermal conductivity, high electrical conductivity, high strength and toughness, and high wear resistance, and many products have been commercialized. The heat-treatment-free aluminum alloy material for large-scale integrated die casting of NEVs has been successfully developed and certified by OEMs, and is fully ready for mass production , directly addressing the core pain point of NEV body lightweighting. The company holds dozens of aluminum alloy material patents, offers a full range of general-purpose die-casting alloys under standard grades such as ADC12, A380, AC46000, A360, ADC10, AISi12, A356, B39H, ALSI10MNMG, and ALSI7CUMG, and has also launched dozens of proprietary patented high-end alloy grades, including HJ03, HJ05, HJ05A, HJ06, HJ08, HJAM-05, HJ-GD08, HCS09, HJ09A, HJ09B, HJ12, HJ13, HJ15, HJ16, and HS330, covering the needs of different lightweight parts. 3. Comprehensive Qualifications and Green Low-Carbon System The enterprise has successively obtained a full set of automotive industry system certifications, including ISO 9001, IATF 16949, ISO 14001, and ISO 50001, completed carbon footprint and greenhouse gas verification, and is advancing the development of ESG and ASI sustainable aluminum standards, aligning with global automakers' low-carbon procurement requirements and fully addressing EU carbon tariff trade barriers. 4. Global High-Quality Customer Matrix Hongjin New Materials' aluminum alloy products are widely used in NEVs, 5G communications, 3C electronics, low-altitude aerospace, general machinery, and other fields. The company has been a long-term, stable supplier to leading domestic and overseas companies, including BMW, Mercedes-Benz, Audi, Volkswagen, Tesla, BYD, NIO, XPeng, Xiaomi, Geely, CATL, and DJI, and is also a designated qualified material supplier for Google and Amazon, with a mature and complete global supply system. New Materials Applications Contact Information Procurement Center: South China Team - Procurement Lead - Yu Gefang 158 1930 2652 East China Team - Procurement Head - He Fulai 187 9615 9377 Central China Team - Procurement Head - Guo Hua 159 7153 3777 Hongbang Team - Procurement Head - Yang Zhenjiang 139 2263 2929 Sales Center: South China Team - Sales Head - He Chijia 138 2754 9148 East China Team - Sales Head - Wang Zhibin 151 9097 6668 Central China Team - Sales Head - Li Hongwei 136 1832 5655 Hongbang Team - Sales Head - Yang Zhenjiang 139 2263 2929 Website: SMM Conference Contact Lv Junlei 176 1601 9596 lvjunlei@smm.cn

The global automotive industry is accelerating its low-carbon and intelligent transformation, while China's automotive industry is shifting from scale advantages to dual leadership in technology and supply chains. In 2025, China's new energy vehicle penetration rate exceeded 50%, driving upgrades in vehicle materials such as aluminum, steel, and magnesium, and fueling a surge in demand for new lightweight materials. The impending implementation of the EU carbon tariff underscores the urgent need for low-carbon upgrades across the industry chain. Coinciding with the launch of the 15th Five-Year Plan and the deepening of dual carbon goals, the industry urgently requires professional platforms to solve material technology challenges. Against this backdrop, will be held September 10-11, 2026 in Shanghai, where SMM together with Delta Metal (Holdings) Limited cordially invites industry colleagues to participate, driving the automotive supply chain towards deeper evolution in green, lightweight, intelligent, and global directions. Click to attend. We look forward to meeting you at the conference. Delta Metal (Holdings) Limited was founded in 2006 and is headquartered in Hong Kong, China, known as the "Pearl of the Orient," with five manufacturing plants and four trading companies worldwide. Adhering to the philosophy of "Integrity, Harmony in Diversity, Unity of Knowledge and Action, and the Spirit of Craftsmanship," Delta Metal focuses on developing the green circular economy industry. With "Recycling for Symbiosis" as its mission, it aligns with global demands for sustainable development in the circular economy, advocating for and promoting the cyclic utilization of recycled metal resources to create a better future where humanity and nature coexist harmoniously through resource recycling. Currently, Delta Metal operates business models including domestic trade, import-export trade, and processing and manufacturing, gradually establishing and refining a domestic recycling system. Its domestic operations span multiple provinces, while overseas operations, primarily exporting to Japan and Southeast Asia, have expanded to Europe, the Americas, and other Asia-Pacific regions. In product applications, Delta Metal has forged long-term friendly partnerships with numerous large, well-known domestic and international automotive OEMs, automotive parts manufacturers, and producers of home appliances, furniture, and electronic products. Delta Metal possesses a full suite of production technologies and management experience accumulated over 70 years from Japan's Daiki Aluminium Industry Co., Ltd., and is dedicated to producing high-quality aluminum alloys. All its manufacturing plants operate with advanced, energy-saving, and environmentally friendly equipment, standardized production systems, and scientific management practices. Currently, the total annual capacity for secondary aluminum alloy across Delta Metal's enterprises exceeds 800,000 mt, encompassing over 1,000 product grades, with the capability for direct aluminum liquid supply, enabling it to offer clients higher-quality environmentally friendly products and technical services. Delta Metal boasts strong technical capabilities, having long collaborated with universities and research institutions on technical R&D. Its subsidiary, Zhaoqing Delta Aluminum Co., Ltd., has been recognized as a national high-tech enterprise and holds qualifications for provincial- and municipal-level engineering technology research centers. After over a decade of development, Delta Metal has become a holding company that integrates new technology R&D and manufacturing capabilities, exerting benchmark influence within the industry. The end is the origin! Delta Metal will focus on demonstrating its positive energy in green innovative development within the global supply chain's Industry 4.0 process, propelling the company to new levels of green, intelligent, low-carbon, and sustainable development. Delta Metal is dedicated to the R&D and production of high-grade secondary aluminum alloy (ingot/liquid), with over 1,000 existing secondary die-cast aluminum alloy product grades. While providing clients with high-quality products and reducing production costs, we also deliver excellent services to assist clients with process issues encountered during production. The GEST® aluminum alloy ingot enjoys strong brand awareness and reputation in both Chinese and overseas markets. Delta Metal (Holdings) Limited Address: No. 6, Huiyuan Fourth Road, Longfu Town, Sihui City, Guangdong Province, China Name: Lin Mingqiao Harry Lin Mobile: 18026123575 15007585205 Tel: +86-758-3810168 Email: linmingqiao@delta-alu.com Website: http://www.delta-alu.com SMM Conference Contact Ding Weiquan 180 2934 4837 dingweiquan@smm.cn

The global automotive industry is accelerating its low-carbon and intelligent transformation, with China's automotive industry shifting from scale advantage to dual leadership in technology and supply chain. In 2025, the penetration rate of new energy vehicles in China exceeded 50%, driving upgrades in automotive materials such as aluminum, steel, and magnesium, and triggering a surge in demand for lightweight new materials. Coupled with the implementation of the EU carbon tariff, the low-carbon transformation of the industry chain is imminent. Coinciding with the start of the 15th Five-Year Plan and the deepening of dual carbon goals, the industry urgently needs a professional platform to address material technology challenges. Against this backdrop, will be held on September 10-11, 2026 in Shanghai . SMM , in collaboration with Ningbo Dexin Technology Co., Ltd. , sincerely invites industry colleagues to participate, driving the automotive supply chain toward a deep evolution in green, lightweight, intelligent, and global directions. Click to to Attend. We look forward to meeting you at the conference. Ningbo Dexin Technology Co., Ltd. was founded in September 2016. It is a high-tech enterprise focusing on the R&D, production, and sales of magnesium-aluminum alloy materials, dedicated to providing lightweight, high-performance magnesium alloy products and solutions for sectors such as automotive, robotics, energy storage, aerospace, and electronic information. The company has factories in Ningbo, Huizhou, Chongqing, and other locations. It possesses advanced production lines for magnesium alloy semi-solid injection molding (15 units ranging from 350T to 3200T), CNC machining, surface treatment (passivation, painting, powder coating, micro-arc oxidation, electrophoretic coating, etc.), and assembly, along with a comprehensive IATF 16949 quality management system, ISO 45001 occupational health and safety management system, and ISO 14001 environmental management system, capable of meeting lightweighting needs across various fields. Contact Mr. Li 153 5608 7997 SMM Conference Contact Sun Lingchen 151 6685 2590 sunlingchen@smm.cn

As the global automotive industry accelerates its low-carbon and intelligent transformation, China's automotive industry is shifting from scale advantages to dual leadership in technology and supply chain. In 2025, the penetration rate of NEVs in China exceeded 50%, driving upgrades in automotive materials such as aluminum, steel, and magnesium and sparking a surge in demand for lightweight new materials. With the implementation of the EU carbon tariff, the low-carbon transformation of the industry chain is urgently needed. Coinciding with the start of the 15th Five-Year Plan and the deepening of the dual carbon goals, the industry urgently requires a professional platform to tackle material technology challenges. Against this backdrop, will be held on September 10-11, 2026 in Shanghai . SMM , together with the conference co-organizer - , sincerely invites industry colleagues to attend and jointly advance the deep evolution of the automotive supply chain toward greenness, lightweight, intelligence, and globalization. Click to attend, and we look forward to meeting you at the conference. I. Basic Company Overview Jintuo Technology Co., Ltd. (stock abbreviation: Jintuo Shares; stock code: 603211) was founded in 2001 in Qingpu District, Shanghai, and listed on the main board of the Shanghai Stock Exchange in July 2022. Its group headquarters is located in Songjiang Xinbang Industrial Park. It is a benchmark listed manufacturing enterprise in China's aluminum alloy precision die-casting field. The company currently has over 1,800 employees and operates three major production sites (Songjiang, Shanghai; Xishan, Wuxi; SLP, Mexico), six production plants, and one headquarters. It possesses comprehensive integrated full-industry-chain production capacity covering self-developed molds, die-casting, precision CNC machining, surface treatment (anodizing, powder and liquid coating), and final assembly. The company is equipped with intelligent production lines, and its overall production scale and quality control level rank among the top in the industry. II. Main Products and Customer System The company's core business is the R&D, production, and sales of aluminum alloy precision die-cast parts, forming a product layout that focuses on automotive components while also developing robotic, smart home, and satellite communication components in synergy. Its automotive business is deeply engaged in vibration damping parts for traditional internal combustion engine vehicles, as well as the three electric systems (power battery, drive motor and electronic control system) for NEVs, thermal management, and lightweight structural components for intelligent driving. It has long-term partnerships with global leading Tier 1 automotive suppliers such as Vibracoustic, Hutchinson, Valeo, United Automotive Electronic Systems, Bosch, and Continental, supplying end-users such as Volkswagen, BMW, BYD, SAIC, Chery, NIO, Li Auto, XPeng, and other mainstream automakers in and outside China. The robotics segment provides leading structural component solutions and mass supplies structural parts for over ten top-tier robotics companies, including UR Robotics, Yuejiang Robot, Agibot, Yushu Robot, and Zhongqing Robot; the industrial segment supplies precision structural parts to Emerson Group, Schneider Group, BSH Home Appliances, and Daikin Air Conditioning, while also strategically deploying in 6G and satellite communication precision components, achieving balanced multi-sector development and effectively hedging against the risk of cyclical fluctuations in any single industry. III. R&D Strengths and Enterprise Honors Jintuo adheres to technology-driven development, has established two high-end R&D platforms—Shanghai Special Casting Engineering Technology Center and Academician Expert Workstation—equipped with a professional R&D team, deeply cultivates core processes such as high-vacuum die casting, ultra-thin aluminum semis forming, and heat-treatment-free alloys, and holds over 200 proprietary invention patents. The enterprise has been successively recognized as a National-level Specialized and Sophisticated "Little Giant" Enterprise, National Green Factory, Shanghai High-tech Enterprise, and Shanghai Manufacturing Single Champion. It has passed multiple authoritative certifications including the IATF16949 automotive quality management system and ISO14001 environmental management system, and has repeatedly won prestigious industry awards such as National Top 20 Die Casting Enterprises in Comprehensive Strength and Gold Awards for High-quality Castings. IV. Business Philosophy and Development Plan The company adheres to the business principle of "customer demand-oriented and driven by innovative manufacturing," continuously advancing factory intelligent transformation and green low-carbon production. Keeping pace with the waves of vehicle electrification and robot industrialisation, it continuously expands precision die-casting capacity, deepens industry-academia-research collaboration, and leverages the regional advantages of the Yangtze River Delta to consolidate its position as a global supplier of precision components, striving to become a high-quality supplier in the global lightweight precision die-casting field. Jintuo Technology Co., Ltd. Contact: Shen Liang 186 1651 9128 Website: www.jintuo.com.cn SMM Conference Contact Yu Jin 156 0163 9371 yujin@smm.cn

The global automotive industry is accelerating its transition to low-carbon and intelligent technologies, with China’s automotive industry moving from scale advantages to dual leadership in technology and supply chains. In 2025, the penetration rate of new energy vehicles in China exceeded 50%, driving the upgrading of automotive materials such as aluminum, steel, and magnesium, and causing a surge in demand for lightweight new materials. Combined with the implementation of the EU carbon tariff, the low-carbon transformation of the industry chain is imminent. As the 15th Five-Year Plan begins and the dual carbon goals deepen, the industry urgently needs a professional platform to address material and technical challenges. Against this backdrop, will be held on September 10-11, 2026 in Shanghai , SMM partnering with the exclusive title sponsor of drinking water - Anhui Xiongchuang Aluminum Alloy New Material Co., Ltd. , sincerely invites industry colleagues to participate, promoting the deep evolution of the automotive supply chain towards green, lightweight, intelligent, and globalized directions. Click to attend, and we look forward to meeting you at the conference. Anhui Xiongchuang Aluminum Alloy New Material Co., Ltd. was founded in October 2018, with a registered capital of 100 million yuan, located at No. 12 Yanghuai Road, Suixi County Economic Development Zone, Huaibei City, Anhui Province. It is a private enterprise integrating research, production, and sales of new-type aluminum alloy materials. The company covers a total site area of 63,603 m², approximately 95.5 mu. The planned total building area is 32,000 m², complemented by supporting public auxiliary projects. The total project investment is approximately 150 million yuan, of which construction investment is 95 million yuan. The overall designed capacity is 150,000 mt per year. The main products are various grades of high-quality cast aluminum alloy ingots, aluminum alloy liquid, and secondary aluminum alloy rods, primarily applied in fields such as automotive and new energy. The main production equipment selects domestically advanced high-efficiency energy-saving automatic melting furnaces, achieving high efficiency, energy saving, reduced slagging, and improved aluminum liquid purity. The production equipment, technical level, and economic indicators have reached the advanced level of similar domestic production processes. The company is committed to the research and manufacturing of aluminum as an substitute for steel and copper, promoting the lightweighting of automotive, rail transit, and aerospace components to achieve energy conservation and emission reduction, and protect the global environment. For every mt of secondary aluminum recycled, we can reduce ore mining by 11 mt, cut carbon dioxide emissions by 0.8 mt, reduce sulfur dioxide emissions by 0.6 mt, lower solid scrap discharge by 20 mt, save 22 m³ of water, and conserve 14,000 kWh of electricity. Advancing with unstoppable momentum, breaking through through innovation! Xiongchuang Aluminum builds its backbone with integrity and creates brilliance with service! In the future, we will fully leverage our industrial advantages, integrate resources from all sides, focus on market development directions, and create greater value for our clients. Contact Information Mr. Liu 181 0561 3888 Mr. Yang 151 3040 8133 SMM Conference Contact Lv Junlei 176 1601 9596 lvjunlei@smm.cn

In H1 2026, China’s aluminum extrusion industry ran under three clear traits: feeble domestic demand recovery, overseas demand sliding first then bouncing back, and a sharp split between booming and sluggish product segments.

SMM, July 12: In the first half of 2026, China's aluminum extrusion industry presented an extreme pattern of structural divergence. Traditional construction extrusion demand remained persistently weak, dragging down the industry’s overall operating load, while industrial extrusion maintained high prosperity, underpinned by new energy, power, and heat dissipation sectors, serving as the core pillar of the industry. Meanwhile, linked volatility in aluminum prices intensified both in and outside China, with the price spread repeatedly narrowing. The export market experienced a "deep V-shaped recovery" trajectory, and the overall industry performance was characterized by "weak recovery in domestic demand, initial suppression followed by recovery in overseas demand, and a stark contrast between strong and weak structural segments." 1. Extrusion Operating Rates: Construction Extrusion Continued to Drag, Industrial Extrusion Resilience Supported the Industry After the 2026 Chinese New Year, the industry entered its traditional peak season for resuming work. In March, extrusion enterprises concentrated on production resumptions and downstream clients engaged in concentrated restocking, pushing the industry's composite operating rate to its H1 peak of 50.6%. Entering Q2, genuine downstream demand follow-through was insufficient, raw material prices fluctuated at high levels, and the industry was further impacted by the rainy season in south China and environmental protection inspections in some regions. As a result, the industry operating rate continued to pull back mildly, falling to 47.6% in June, with the overall operating level weaker than the average for the same period over the past three years. Construction extrusion was the core weak spot dragging down the industry’s overall operations. In H1, data on commercial housing transactions and new construction starts in China remained persistently weak; developers' financial positions showed no significant improvement, and payment returns from project sites were slow. Orders for housing construction-related doors, windows, and curtain wall extrusions continued to shrink. From January to May, domestic aluminum prices generally consolidated at highs, and downstream end-users exhibited strong resistance to high-priced raw materials. Traders and processing plants generally maintained low inventory levels, moving goods in and out quickly, with low willingness to initiate restocking. Although the industry actively expanded non-residential construction demand from industrial parks, standard factories, and government and enterprise public buildings, and home decoration for existing home renovations and home decoration retail recovered slightly, the incremental volume was limited, completely failing to offset the decline in bulk project orders. In H1, construction extrusion operations remained under pressure, making it the biggest drag on the industry. The structural prosperity of the industrial extrusion segment continued to rise, strongly underpinning the industry's operating rates. Demand for power transmission and transformation, energy storage structural components, industrial heat dissipation extrusions, and rail transit supporting profiles maintained steady growth. For PV extrusion, affected by the official cancellation of the export tax rebate policy for PV-related products on April 1, overseas clients concentrated on front-loading orders and enterprises rushed to meet production deadlines in Q1, driving the operating rates for PV frames and mounting extrusions to stage a temporary surge. After the policy took effect, the bonus from overseas rush orders faded, and PV extrusion production schedules returned to rationality, maintaining stable operation from April to June. NEV extrusions showed structural divergence: demand for lightweight extrusions for auto body and chassis remained robust, while demand for ordinary interior extrusions weakened. Overall, the resonance of prosperity across multiple industrial extrusion tracks effectively offset the weak demand for traditional construction materials, highlighting the structural resilience of the industry. 2. Aluminum Extrusion Exports: Deeply Under Pressure in Q1, Continuous Recovery in Q2, V-Shaped Reversal in H1 In H1 2026, China's aluminum extrusion exports followed a V-shaped trend overall, with a sharp decline in Q1 followed by consecutive recoveries in Q2. The driving logic shifted from price inversions and off-season effects overseas at the beginning of the year, towards the release of demand in emerging markets and the transfer of China's processing and manufacturing advantages. Q1: Domestic and Overseas Aluminum Price Inversions Combined with Overseas Off-Season Led to Sharply Weaker Exports Exports from January to February showed off-season resilience, mainly supported by deliveries for orders placed ahead of the Chinese New Year. In January, China exported 81,000 mt of aluminum extrusions, up slightly by 1.4% MoM but down slightly by 5.3% YoY. In February, disruptions from the Chinese New Year holiday saw exports fall to 64,000 mt, a 20.4% MoM decrease but a sharp 62% YoY increase, significantly outperforming the precipitous declines of past Chinese New Year periods. The core reason was that secondary aluminum extrusion enterprises in Guangdong and Fujian concentrated on delivering orders for Southeast Asia and the Middle East before the holiday, while some industrial extrusion enterprises adopted a model of "preliminary domestic processing and deep processing overseas" to speed up contract fulfillment, supporting export volumes at the start of the year. In March, industry exports hit their low point for the first half of the year, with monthly exports of only 48,000 mt, down 24.8% MoM and plunging 32.8% YoY. The core reason for this export slump was not a single geopolitical factor but the resonance of multiple negative factors: first, orders placed ahead of the Chinese New Year overdrew demand from February and March, after which overseas markets entered the traditional consumption off-season; second, LME aluminum saw wild swings in March, and domestic and overseas aluminum prices quickly inverted, compressing export profits for domestic extrusions and leading enterprises to proactively control volumes and take fewer orders; third, the European and US CBAM carbon tariff continued to suppress high-end extrusion exports, causing continuous market shrinkage there, coupled with a slowdown in logistics and customs clearance in some Middle Eastern regions. These multiple factors caused a substantial pullback in export volumes in March. Q2: Emerging Market Volume Surge, Exports See Double YoY and MoM Growth for Two Consecutive Months Starting in April, the price spread between China and overseas markets gradually recovered, the overseas off-season ended, and industry exports began a continuous recovery channel. Exports that month were 76,000 mt, surging 56.8% MoM and up 6.9% YoY, returning to the normal range for past years. Trade and logistics order in the Middle East recovered, stockpiling in Southeast Asia ahead of the rainy season began, and domestic enterprises accelerated their layout in emerging markets in Central Asia and Latin America. Leveraging overseas affiliated warehouses and cross-border stockpiling models to continuously take on rigid demand orders for overseas doors, windows, and curtain walls, export prosperity recovered rapidly. Exports in May continued their high-growth momentum, hitting the monthly peak for H1 at 87,000 mt, up 14.6% MoM and 20.1% YoY. The export structure continued to optimize; low-end construction extrusions saw steady incremental growth, while the export share of high-value-added industrial aluminum components, outdoor aluminum semis, and PV supporting extrusions continued to rise. Southeast Asia, Australia, South America, and Central Asia became the four core growth markets for domestic extrusion exports, effectively offsetting the shrinking demand in European and US markets. 3. H2 2026 Industry Outlook: Weakly Stable Domestic Demand, Marginal Export Weakness, Continued Structural Divergence Looking ahead to H2 2026, the structural divergence pattern in China's aluminum extrusion industry is expected to become further entrenched, with overall operations characterized by "consolidation on a subdued note, industrial support, and construction material drag." On the domestic demand side, the fundamentals of the real estate sector are hard-pressed to see a substantive repair in the short term. Commercial housing new starts and project payment returns are expected to remain weak, and construction extrusion demand will continue to operate in a low range without a trending recovery. Non-residential infrastructure and home decoration retail can only provide a slight offset, unable to reverse the overall weakness of construction extrusions. Industrial extrusion will remain the core pillar of the industry: in H2, steady climbing of domestic PV installations will drive the continued release of demand for PV frames and mounting extrusions; demand for new-type energy storage, data center heat dissipation, and power equipment extrusions will maintain steady incremental growth. NEV extrusions will show a divergence between strong and weak segments; demand for high-end lightweight structural components will be firm, but overall industry overcapacity and intensifying end-user competition will exert marginal contraction pressure on demand for ordinary automotive extrusions. Overall, industrial extrusion can defend the industry’s baseline but can hardly offset the downward pressure from construction extrusions. In H2, the industry's overall operating rate may be slightly lower than in H1. Pressure on the export front will gradually emerge, with the trend potentially turning from the high growth of Q2 to a mild slowdown. In H2, the bonus from overseas traditional peak seasons will gradually fade, while the domestic-overseas aluminum price spread narrows, export processing profits are compressed, and overseas local aluminum processing capacity continues to be released, alongside persistent trade barriers against Chinese aluminum semis in some countries. This will gradually weaken the price advantage of domestic extrusion exports. Although secondary aluminum extrusion exports may still hold cost advantages, homogenized competition in low-end products is fierce and profits remain compressed. The export growth rate for aluminum extrusions is expected to slow down gradually in H2, with overall volumes weaker than in Q2. In summary, throughout 2026, the aluminum extrusion industry is expected to continuously exhibit structural characteristics of weak construction, strong industrial, stable but weak domestic demand, and exports that are high in the first half and low in the second. Industry competition will further concentrate on high-end industrial extrusion, high-value-added deep processing, and overseas emerging markets, with low-end construction extrusion capacity continuously entering a phase of being cleared.

Against the backdrop of aluminum price premiums being given back and heightened expectations of decline, end-users' willingness to restock will remain suppressed. Industry profit margins are expected to stay low, and competition among enterprises will evolve deeply from "scale expansion" to "cost control and structural optimization."

[SMM Analysis: Anode Material Achieves Track Upgrade Riding the Tailwind of Battery Cell Technology] The material upgrade demand on the battery cell side is effectively driving structural growth in demand for sub-segments such as silicon carbon anode, hard carbon anode, and high-end modified graphite.

What Is "Borrowing Ships to Go Global"?— Definition and Estimation Logic of Indirect Steel Exports "Indirect steel trade" refers to steel that is not exported in the form of raw materials, but rather embedded as parts or structural materials in finished products such as machinery equipment, automobiles, and home appliances, achieving implicit exports through the cross-border trade of these goods. SMM Indirect Steel Export Model: Based on the volume of finished steel consumed per mt/unit/set of specific finished products, approximately 43 categories of steel-containing products covering a total of 497 tariff codes are classified in detail according to the Harmonized Commodity Description and Coding System (HS codes, up to 8 digits). SMM categorises indirect export data into six major industry segments: machinery, home appliances, motorcycles & bicycles, automobiles, containers, and steel products. The "Steel Torrent" Hidden in Manufacturing— Scale and Landscape of Indirect Steel Exports Steel Indirect Export Data, 2020-2026 Data source: SMM; General Administration of Customs From 2020 to 2021, China, benefiting from supply chain integrity and efforts to ensure supply and stabilise prices, maintained rapid growth in indirect exports even during the pandemic; In 2022, as the severity of the pandemic eased and major central banks such as the US Fed aggressively raised interest rates to curb high inflation, global manufacturing sentiment pulled back. Coupled with the very high base in 2021, when the "stay-at-home economy" and supply chain congestion drove a surge in global demand for Chinese-manufactured goods, 2022 represented a natural cooling as the dividend faded; In 2023, China's indirect steel exports reversed course, with the YoY growth rate turning from negative to positive, and maintained rapid growth for three consecutive years; By 2025, China's total indirect steel exports grew approximately 96% compared to 2020. In the first two months of 2026, cumulative indirect steel exports totalled 29.43 million mt, with a YoY growth rate of 48.07%. Analysis of China's Manufacturing Export Price & Volume Index ( MoM ) Curves Data source: General Administration of Customs Contrary to the increase in indirect exports, China's manufacturing export price index declined. In 2021, China's manufacturing export price and volume indices exhibited a rare phenomenon of "simultaneous price and volume increases," driven by the gradual recovery of the global economy — particularly the sustained production recovery in Europe and the US — which boosted China's exports of production-related products. The price increases were primarily cost-driven, as upstream raw material prices (non-ferrous metals, steel, etc.) surged sharply, compounded by global supply chain shortages and soaring ocean freight rates. Over the subsequent four years, prices and volumes exhibited clearly opposite trends. As of February 2026, China's manufacturing export price index stood at 97.4, down 8.2 from its historical same-period high, while China's manufacturing export volume index stood at 95.9, up 20.9 from its historical same-period high. This indicates that China's manufacturing exports remain in a relatively fragile stage of "volume discount." Who Is Driving This "Invisible Giant Ship"?— The "Twin Engines" Behind High GrowthHigh Growth in Indirect Steel Exports Driven by Recovery of Manufacturing Outside China China's Indirect Steel Exports by Product Category Data source: SMM; General Administration of Customs Global Major Regions Manufacturing PMI Index, 2021-2026 Data source: China Federation of Logistics & Purchasing According to the SMM indirect steel export model, from January to December 2025, total indirect steel exports reached 149.64 million mt, +19.10% YoY. The reasons behind this were inseparable from the strong boost of downstream manufacturing exports and the diversification of export markets. Specifically, machinery, steel products, and automobiles remained the main drivers of indirect steel exports, with machinery +21.38% YoY, steel products +19.30% YoY, and automobiles +28.66% YoY, contributing 48.05%, 28.91%, and 16.90% to total export growth, respectively. The growth in ex-China demand was also inseparable from the recovery of manufacturing outside China. Since 2023, PMI readings in major regions have been on a rebound trend from the bottom, but due to the overall slow pace of recovery, some regions remained below the 50 mark, resulting in strong dependence outside China on price-competitive finished steel products exported from China. Indirect Steel Exports Accelerating Shift Toward Emerging Markets On the other hand, to cope with increasing trade barriers in some developed markets, export markets accelerated their shift toward emerging markets along the Belt and Road Initiative (ASEAN, West Asia, Africa, etc.). For example, the share of indirect exports to regions such as ASEAN and the BRICS Ten increased notably. See the charts below for specific data. China's Indirect Steel Exports by Economic Zone (2020) Data source: SMM China's Indirect Steel Exports by Economic Zone (2025) Data source: SMM According to the SMM indirect export model, in 2025, China's total steel consumption for indirect steel exports to countries and regions along the Belt and Road Initiative reached 49.5966 million mt, accounting for 33% of China's total indirect steel exports, a share largely unchanged from 2020. The economic zones with more notable changes were mainly NAFTA, EU-27, ASEAN, and the BRICS Ten. Among them, NAFTA and EU-27 showed a declining trend, with shares dropping by 4% and 3%, respectively; ASEAN and the BRICS Ten showed an upward trend, with shares rising by 2% and 5%, respectively. The incremental volumes from these regions effectively offset the gap left by declining exports to Europe and the US. As of 2025, the share of China's indirect steel exports to the US dropped by 4% compared to 2020, the share to Japan fell by 2%, and the share to Germany fell by 2%, with some European countries even removed from the top 15 export destinations (the Netherlands). ASEAN countries saw increasingly robust demand for NEVs, PV, and smart devices. The signing of the China-ASEAN Free Trade Area 3.0 added chapters on the digital economy and green economy, removing institutional barriers for such product exports. BRICS countries had robust demand in infrastructure and agriculture, directly boosting China's exports of related equipment. On the other hand, many ASEAN countries imported core parts and intermediate products from China, assembled them locally, and then re-exported globally, forming an industry chain division-of-labor network of "R&D in China, production in neighboring countries, markets worldwide." China's Indirect Steel Exports by Continent (2020) Data source: SMM China's Indirect Steel Exports by Continent (2025) Data source: SMM By continent, Asia remained the primary destination for China's indirect steel exports. As of 2025, China's indirect steel exports to Asia totaled 60.8719 million mt, accounting for 41% of China's total indirect steel exports. The share of North America declined, while the shares of Africa and South America rose accordingly. Top 10 Destination Markets for China's Indirect Steel Exports Data source: SMM Based on the historical changes in the top 10 destinations for China's indirect steel exports, the compound growth rate of the original major destination markets — European and American countries — has been narrowing, while destination markets led by Southeast Asia and the Middle East have been climbing rapidly at a compound growth rate exceeding 20%. The US share of China's indirect steel exports has also been declining from 15% in 2020 to 10% in 2025. Meanwhile, the shares of major Southeast Asian countries and the UAE rose from 8% and 1.2% to 10.3% and 2.3%, respectively. The "Cost" of Growth— When "Steel Going Global" Meets the "Pain of Backlash"First, Strong Exports Led to Excessive External Dependence Trends in China's Indirect Steel Exports & Crude Steel Production Data source: SMM; General Administration of Customs; According to data from the National Bureau of Statistics, cumulative crude steel production in 2025 totaled 960.81 million mt, while indirect exports reached 149.64 million mt, accounting for as high as 15.57%, up 8.42% from the 2020 ratio. If direct steel exports were also factored in, the ratio would be as high as 29%, meaning that nearly one-third of China's crude steel supply relied on ex-China consumption for absorption. The deep adjustment in China's real estate sector caused domestic steel consumption to decline for the fifth consecutive year, and the difficulty in reducing crude steel production and the slow pace of transformation made exports an inevitable "flood discharge channel." Looking at the external dependence of some major industries, the external dependence of containers exceeded 100% in 2025, mainly because export data reflected not only current-period production but also the drawdown of prior inventory. In 2024, due to the "Red Sea crisis," the industry entered a "frantic stockpiling" mode, and in 2025, as the impact of the crisis waned, it switched to a "rational destocking" mode. Refrigerators ranked second in external dependence. The structural adjustment of global refrigerator capacity featuring "rising in the East and declining in the West" provided a historic opportunity for China's refrigerator exports. Following closely were motorcycles and bicycles, for which the shrinking Chinese market left no choice but to seek the "blue ocean of demand" in Latin American countries. Data source: SMM Second, Strong Exports Led to Escalating Trade Disputes Anti-dumping Cases Against Chinese Steel Products Since 2020 Data source: SMM; China Trade Remedies Information However, this model of "insufficient domestic demand supplemented by exports" was encountering increasingly severe external challenges. Since 2020, industries related to China's indirect steel exports faced 143 overseas anti-dumping investigations (tallied based on the timing of their latest developments). As steel products were involved in the most cases, they are presented in a pie chart, which shows that Mexico, the US, and Australia initiated the most anti-dumping actions against Chinese steel products, together accounting for over 50%. Anti-dumping Cases Against Chinese Home Appliances,Automobiles, Machinery, etc. Since 2020 Data source: SMM; China Trade Remedies Information In the home appliance industry, Turkey and Argentina, through continuous "sunset reviews," extended anti-dumping duties on Chinese air conditioners for nearly twenty years, forming DAS solar and stable trade barrier. In the washing machine industry, the sector was facing a three-dimensional siege of complete units plus parts, anti-dumping plus carbon tariffs, and traditional markets plus emerging markets. Water heaters were involved in a relatively large number of cases, but among them, Uruguay's anti-dumping measures expired in 2025, while Ukraine was still in the investigation phase. Refrigerators and microwave ovens encountered fewer anti-dumping investigations. In the automobile industry, overseas anti-dumping investigations against China-related automotive products showed a trend of a continuously increasing number of cases, with products involved expanding from parts to complete vehicles, and emerging markets becoming new battlegrounds. There were only 4 anti-dumping cases against complete vehicles, among which Tunisia and the Philippines had no updated developments for the time being, while the EU and US anti-dumping measures against Chinese automobiles remained in their enforcement period. Compared with the automobile and home appliance industries, although the motorcycle and bicycle industry faced a relatively small number of direct anti-dumping cases, two notable characteristics emerged: first, extremely long duration — some cases had been extended for over 30 years through sunset reviews; second, sharp recent increases in duty rates — Mexico's anti-dumping duty on Chinese children's bicycles surged from $13.12/unit to $57.19/unit (preliminary ruling), an increase of over three times. The machinery industry faced anti-dumping actions involving the widest range of countries, and the trend was escalating from traditional anti-dumping to Section 337 investigations — the US was increasingly launching investigations against Chinese machinery products on the grounds of intellectual property infringement, a trade restriction measure more severe and costlier to defend against than anti-dumping. Since 2024, the US launched Section 337 investigations into Chinese construction machinery, industrial machinery, and sports equipment, among others. Beyond anti-dumping measures targeting specific industries, China's manufacturing sector also faced a category of comprehensive trade barriers, as detailed in the table below. Data source: SMM What Lies Ahead?— The Path from "Indirect" to "Value"The Growth Trend of Indirect Steel Exports Remains Unchanged Total Indirect Steel Exports Data source: SMM; General Administration of Customs Overall, SMM forecasts that indirect steel exports will grow by approximately 17% in 2026. Going forward, indirect steel exports will maintain a solid growth trend, but the growth rate will gradually slow down. In the long term, the iron element export model relying on manufacturing remains reliable, primarily driven by the mutual reinforcement between China's manufacturing scale and supply capabilities and the industrialization and urbanization demand in emerging markets. Per Capita Steel Consumption by Major Countries and Regions Data source: World Steel Association Per capita steel consumption in Southeast Asia, India, the Middle East, South America, and Africa remains relatively low. According to worldsteel, per capita steel consumption in 2024 for these five regions was 220, 215, 260, 120, and 40 kg, respectively, with South America and Africa significantly below the global average. It can be said that the export competitiveness of China's manufacturing sector has met the requirements of emerging markets for scale and efficiency during urbanization/industrialization, lowering the development threshold to a certain extent. The relatively broad demand space ex-China has also matched the release of China's manufacturing capacity. Specific industries: Machinery sector, with the global economy undergoing a mild recovery, global end-user growth in the construction machinery industry will drive export demand. Currently, overseas gross margins for construction machinery are generally 5–10% higher than in China, and there is still significant room for expansion in market share and product categories. Therefore, machinery exports are expected to further increase in 2026. Automobile sector, as the marginal effects of "trade-in" and "retirement subsidy" policies diminish, coupled with the halving of purchase tax reduction and exemption policies, growth in the Chinese market will slow down, and "going global" will become an inevitable path for automakers. Currently, NEV penetration rates in Europe, Southeast Asia, Latin America, and other markets remain low, and acceptance of Chinese brands continues to rise. Exports are still expected to increase in 2026, but as China's market share grows, trade barrier risks should be watched closely. Home appliance sector, home appliance exports in 2026 are expected to achieve mild growth on the basis of 2025, with emerging markets becoming the primary growth engine. Container sector, with the "super replacement cycle" ending and concentrated delivery of container ships causing capacity surplus, there is still a possibility of negative YoY growth. In the long term, China's manufacturing sector has demonstrated strong competitiveness in the global market, and total exports of related industries are expected to maintain rapid growth over the next five years. Breaking Through: An Imperative Path Forward As China's indirect steel exports have surged rapidly, the country is currently facing multiple challenges: intensifying external barriers, rising internal costs, low-end lock-in within the value chain, and the restructuring of global division of labor. To break through, the core lies in shifting from price competition to value competition, and from scale expansion to quality- and innovation-driven growth. 1 Strategic Upgrade: From "Products Going Global" to "Manufacturing Taking Root" Deploy a "China+N" capacity layout, circumventing tariff barriers through a "China + Southeast Asia/Mexico/Middle East" capacity configuration; build "micro-factories" by establishing highly automated assembly plants in Europe and other regions to achieve localized production and delivery. 2 Market Expansion: Diversified Layout and Deep Cultivation of the "Global South" Develop emerging markets by redirecting export growth drivers toward the "Global south" markets in Asia, Africa, and Latin America, reducing dependence on any single market; deepen channel penetration by leveraging cross-border e-commerce, overseas warehouses, and other new business models to build omni-channel sales networks covering major markets. 3 Value Reshaping: Technology-Driven and Brand Elevation Define standards through technological iteration—in fields such as robotic lawn mowers and new energy, establish generational advantages through RTK vision, AI algorithms, and other technologies, shifting from "selling products" to "setting standards"; build local brands by moving beyond the pure toll processing model, and through sponsoring communities, embracing ESG standards, and hiring localized teams, create brands with emotional resonance. 4 Policy and Systemic Support: Optimizing the Ecosystem and Ensuring Compliance Strengthen financial support by establishing manufacturing overseas development funds, improving overseas investment insurance systems, and utilizing cross-border financial service solutions to manage exchange rate risks; build comprehensive overseas service systems by leveraging national-level overseas comprehensive service platforms to provide one-stop services for hundreds of thousands of foreign trade entities, while strengthening legal and compliance guidance; regulate overseas competition by leveraging the role of industry associations, implementing coordinated "united front" coopetition strategies, prohibiting low-price dumping, and fundamentally resolving the problem of "exporting involution." 5 Mechanism and Pathway Reshaping: Governing Vicious Competition and Safeguarding Value Exports The ongoing anti-involution campaign in China has formed a synergistic relationship with indirect steel exports, driving a shift from "scale competition" to "value upgrading." By governing disorderly competition within China and guiding steel to be exported in higher value-added forms (such as automobiles and machinery), industrial upgrading can be achieved, transforming steel exports from the form of "raw materials" to exports of "parts" or "finished products" embedded in global supply chains. Data Source Disclaimer: Data other than publicly available information is derived by SMM based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute decision-making advice. Note: This article is an original article of this official account. For any needs regarding reprinting, whitelisting, or cooperation, please contact us. Without permission, the above content shall not be reprinted, modified, used, sold, transferred, displayed, translated, compiled, disseminated, or disclosed to any third party in any other form, nor shall any third party be licensed to use it. 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