Recently, it was reported that the two new all-tab production lines at Tianpeng Power's Malaysia facility have both achieved mass production. These production lines cover a range of all-tab products in 18650 and 21700 formats, with a daily production capacity of 500,000 units. This will further enhance Tianpeng's delivery capabilities for all-tab products in overseas markets. The commissioning of the new all-tab production lines in Malaysia will further optimize Tianpeng's global manufacturing layout for all-tab products, strengthening its product delivery capabilities for overseas markets, particularly in high-growth sectors such as AI data centers.

SMM August 7 News: Metal market: As of midday close, domestic market base metals nearly all rose. SHFE copper added 0.56%, SHFE aluminum rose 0.86%, SHFE lead gained 0.48%, SHFE zinc advanced 1.35%, SHFE tin fell 0.3%, and SHFE nickel edged up 0.44%. Additionally, the most-traded cast aluminum futures contract edged up 0.32, while the most-traded alumina contract slipped 0.33%. Lithium carbonate most-traded contract rose 1.23%. Silicon metal most-traded contract surged 2.21%. Polysilicon most-traded futures contract jumped 5.03%. Ferrous metals all rose. Iron ore futures gained 0.28%, rebar edged higher, and hot-rolled coil rose 0.43%. Stainless steel advanced 1.39%. For coking coal and coke: the most-traded coking coal contract rose 2.6%, and the most-traded coke contract jumped 3.22%. In the overseas market, as of 11:40 AM, LME base metals rallied across the board. LME copper gained 0.69%, LME aluminum edged up 0.31%, LME lead rose 0.4%, LME zinc advanced 0.44%, LME tin added 0.42%, and LME nickel surged 1.61%. In the precious metals space, as of 11:40 AM, COMEX gold rose 0.43% and COMEX silver gained 1.45%. For domestic precious metals: SHFE gold edged up 0.28%, and the SHFE silver most-traded contract added 0.11%. Additionally, as of midday close, the most-traded platinum futures contract fell 1.71%, and the most-traded palladium futures contract dropped 1.55%. As of midday close, the most-traded European container shipping futures contract rose 1.79% to 1,682 points. As of 11:40 AM on August 7, here are some futures midday quotes: Spot and fundamentals Copper: Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at 160 yuan/mt, up 70 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 60 yuan/mt, up 50 yuan/mt from the previous trading day; SX-EW copper was quoted at 0 yuan/mt, up 30 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 108,355 yuan/mt, up 455 yuan/mt from the previous trading day; the average price of SX-EW copper was 108,245 yuan/mt, up 425 yuan/mt from the previous trading day... Macro front Domestic side: [Over 30 trillion yuan! China's goods trade imports and exports continued to grow in the first seven months this year] The General Administration of Customs announced today that in the first seven months, China's goods trade imports and exports totaled 30.13 trillion yuan, up 17.3% YoY, extending a solid growth momentum. Exports were 17.44 trillion yuan, up 14%, while imports were 12.69 trillion yuan, up 22%. In July alone, imports and exports amounted to 4.66 trillion yuan, up 19.2% YoY. Of which, exports stood at 2.71 trillion yuan, up 17.8%, and imports stood at 1.95 trillion yuan, up 21.2%. [National Energy Administration: Boost Independent R&D of Key Power Equipment, Promote Key Technology Breakthroughs in Power Chips and UHV Components] The National Energy Administration issued the "Power Safety Production '15th Five-Year' Action Plan." Among them, it is mentioned to strengthen "AI+" safety governance, innovate high-precision fault prediction and health management methods for equipment, promote the integration of AI technology into intelligent safety tools and equipment, and research AI large model-based auxiliary decision-making technologies for power safety production. Boost independent R&D of key power equipment, strengthen the R&D of new-type protective materials, set up special plans for technical breakthroughs in core components of power equipment, and promote key technology breakthroughs in power chips, UHV components, etc. Promote the innovation of safety and quality control technologies in power construction projects, research and build intelligent supervision systems for power construction projects, and use AI, big data and other means to strengthen off-site supervision and quality supervision of key power projects. (National Energy Administration) [General Administration of Customs: Integrated Circuit Cumulative Exports, January-July, Up 99.5% YoY] Data released by the General Administration of Customs showed that China's integrated circuit export value reached $38.74 billion in July, and the cumulative export value from January to July reached $216 billion, up 99.5% YoY. (Jin10 Data) [PBOC Open Market Operations Net Drain: Today (133 Billion Yuan), This Week (1,225.5 Billion Yuan)] The PBOC conducted 1 billion yuan of 7-day reverse repo operations today. With 134 billion yuan of 7-day reverse repos maturing, this resulted in a net drain of 133 billion yuan on the day. This week, the PBOC carried out 176.5 billion yuan of 7-day reverse repo operations, 300 billion yuan of overnight reverse repo operations, and 500 billion yuan of outright reverse repo operations. With 116.5 billion yuan of 7-day reverse repos and 900 billion yuan of overnight reverse repos maturing, the weekly net drain amounted to 1,225.5 billion yuan. (Jin10 Data) As of 11:40, the US dollar index edged up 0.02% to 99.96. The market focused on the US non-farm payrolls data for clues on the interest rate outlook. According to the CME FedWatch Tool, the probability of the Fed keeping rates unchanged in September was 45%, while the chance of a cumulative 25bp rate hike stood at 55%. For October, the probability of rates staying unchanged was 31%, with a 51.9% chance of a cumulative 25bp hike and a 17.1% chance of a cumulative 50bp hike. (Jin10 Data APP) US Fed’s Musalem: Currently, inflation is far above the Fed’s 2% target. Monetary policy must effectively curb underlying inflation, rather than tolerating current high inflation in hope of future productivity gains. US Q2 labour productivity grew faster than expected, mainly as enterprises sought to ease pressure from rising costs. Data released on Thursday showed that nonfarm productivity grew at an annualized rate of 1.4% in Q2, up from an upwardly revised 0.8% increase in Q1, a result that also exceeded general market forecasts. Unit labour costs, however, rose 1.3%, below expectations. Fed officials, investors, and economists have been looking for signs of whether hundreds of billions of dollars in AI investments are boosting labour productivity. However, given the large quarterly fluctuations in official data, it will still take time to observe a clear trend. Labour costs are one of the largest expense items for many enterprises, and efficiency improvements can allow wages to rise without pushing up inflation. In the long term, higher productivity helps improve living standards, but some economists worry that if AI-driven productivity gains persist, some enterprises may delay hiring or even cut staff. The Q2 productivity growth was supported by the strongest output growth since Q3 2025, alongside a relatively mild increase in hours worked. (Jin10 Data APP) Data: Today will see the release of France's Q2 ILO unemployment rate, Germany’s June seasonally adjusted industrial output m/m, Germany’s June seasonally adjusted trade balance, the UK’s July Halifax seasonally adjusted house price index m/m, France’s June trade balance, Switzerland’s July consumer confidence index, Canada’s July employment change, the US July unemployment rate, the US July seasonally adjusted nonfarm payrolls, the US July average hourly earnings y/y, the US July average hourly earnings m/m, the US July New York Fed 1-year inflation expectations, China’s July trade balance in USD terms, China’s July foreign exchange reserves, and China’s July trade balance. Attention: 2028 FOMC voter, St. Louis Fed President Musalem will speak on the US economy and monetary policy; 2027 FOMC voter, Richmond Fed President Barkin will speak. Crude oil: As of 11:40, oil prices in both markets rose, with WTI up 1.01% and Brent up 1.06%. Market concerns over navigation prospects in the Strait of Hormuz supported oil prices. According to preliminary US government data, US crude oil imports from Saudi Arabia fell to zero in July this year, the first time since 1985 that no Saudi crude was imported in an entire month. Data released by the US Department of Energy (DOE) on Wednesday local time showed that Saudi crude oil shipments to the US completely ceased in July. This drop is particularly striking given that US refineries were purchasing an average of over 800,000 barrels per day of Saudi crude earlier this year. As the closure of the Strait of Hormuz and other war-related supply disruptions pushed up crude prices linked to global benchmarks, US refineries have been seeking alternative supplies for Saudi crude. Saudi crude deliveries to the US have historically fallen to zero in individual weeks, but July marked the first time in over 40 years that deliveries were at the lowest level for an entire month. According to Kpler data, US crude imports from Saudi Arabia are expected to recover to around 300,000 barrels per day this month, in line with recent historical norms. (Jin10 Data APP) Saudi Arabia lowered its key crude prices for Asia, while negotiations were underway on an agreement aimed at easing shipping pressures in the Strait of Hormuz. The price cut came despite threats from Houthi militants that jeopardized the alternative route for eastbound crude shipments through the Red Sea. A price list showed that Saudi Aramco, the state oil company, lowered the price of Arab Light crude for delivery to Asian customers next month by 50¢ per barrel, to a level $2 below the regional benchmark. A previous survey showed that traders had expected Saudi Aramco to keep the price of its flagship crude unchanged. This week, the global benchmark Brent crude price fell sharply and is now trading near $80 per barrel. (Jin10 Data APP) Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ► ► ►

India's steel market presented a mixed picture in July, with domestic consumption continuing to outpace production while exports rebounded sharply, nearly matching imports for the month. However, strong import volumes earlier in the fiscal year kept the country a net importer through April-July.

SMM August 7 News: Metal Markets: Overnight, base metals on the domestic market broadly rose. SHFE copper edged up 0.1%. SHFE aluminum gained 0.38%. SHFE lead edged up 0.1%. SHFE zinc rose 1.11%, while SHFE tin fell 0.98%. SHFE nickel dropped 1.22%. Additionally, the most-traded alumina futures contract edged up 0.09%, while the most-traded foundry aluminum contract fell 0.52%. Overnight, ferrous metals all rose. Stainless steel edged up, iron ore gained 0.35%, and rebar rose 0.17%. Hot-rolled coil (HRC) increased 0.59%. For coking coal and coke: the most-traded coking coal futures contract rose 1.54%, and the most-traded coke contract gained 2.48%. Overnight, on the overseas market, LME base metals mostly fell. LME copper shot up to an intraday high of $14,369.5/mt, a level not seen since January 29, before eventually closing with a 0.4% decline. LME aluminum gained 0.65%. LME lead fell 0.29%. LME zinc rose 0.64%. LME tin dropped 1.43%. LME nickel fell 2.45%. Overnight Precious Metals : COMEX gold fell 0.15%, and COMEX silver dropped 0.81%. Overnight, the most-traded SHFE gold futures contract fell 0.01%, and the most-traded SHFE silver contract declined 0.93%. Closing prices as of 7:03 AM, August 7: Macro Front Domestic (China) News: [Guangdong: Promote the Integration of Futures and Spot Markets for Key Commodities like Iron Ore, Crude Oil, and Rubber to Enhance Pricing Influence on Bulk Commodities] The "15th Five-Year Plan for the Development of the China (Guangdong) Pilot Free Trade Zone (Draft for Comments)" was released for public comment. It mentioned plans to expand financial opening-up in an orderly manner. International financial institutions will be encouraged to set up headquarters in the zone, promoting the development of cross-border finance, innovative finance, venture capital and investment, wealth management, futures trading, asset management, specialty finance, and offshore services. The Plan aims to accelerate the implementation of projects like the Guangdong-Hong Kong-Macao Greater Bay Area International Commercial Bank and the GBA Insurance Service Center. It supports expanding the scale of commodity trading and promoting the integration of futures and spot markets for key commodities like iron ore, crude oil, and rubber to enhance their pricing influence. The Plan will promote the quality improvement and upgrade of fintech regulatory pilots and expand digital yuan application scenarios. It supports pilot programs for cross-border financial innovations such as offshore finance and green finance, and will promote the expansion of pilot programs like cross-border Wealth Management Connect and digital yuan cross-border payments. Institutions within the zone will be supported in developing specialty products like cross-border supply chain finance and intellectual property-pledged financing, and market entities will be guided to develop composite financial products. Pilots for cross-border credit asset transfers and multi-currency integrated accounts will be deepened to promote wider mutual recognition and connectivity of cross-border financial products. (Guangdong Department of Commerce) [CAAM: June Auto Commodity Import and Export Value Hits $31.82 Billion, Up 35.5% YoY] According to data from the General Administration of Customs compiled by the China Association of Automobile Manufacturers (CAAM), the total import and export value of auto commodities in June 2026 was $31.82 billion, up 8.0% MoM and up 35.5% YoY. The import value was $3.39 billion, down 6.1% MoM and down 18.7% YoY; the export value was $28.43 billion, up 10.0% MoM and up 47.2% YoY. From January to June 2026, the cumulative import and export value of national auto commodities totaled $164.74 billion, up 25.5% YoY. The import value was $19.25 billion, down 11.8% YoY; the export value was $145.49 billion, up 33.0% YoY. (Jin10 Data APP) US Dollar: Overnight, the US dollar index rose 0.26% to 99.95. Escalating geopolitical tensions weighed on both US stocks and bonds, causing them to fall. Oil prices jumped, reigniting inflation concerns ahead of the key US employment report. Market focus now turns to Friday's US employment report for new clues on the Federal Reserve's policy path. Stronger-than-expected jobs data could reinforce the case for higher-for-longer interest rates, while any escalation of tensions in the Middle East could push up energy prices and intensify market fluctuations. UBS analyst Ulrike Hoffmann noted: "Short-term risks remain, especially if US data remains firm, oil prices continue to fuel inflation concerns, or the market continues pricing in a more hawkish Fed rate path." Interactive Brokers Senior Economist José Torres stated: "Wall Street reversed again from recent strong gains as the lack of clarity concerning the Strait of Hormuz led investors to question whether the robust rally early this week was justified." (Jin10 Data APP) According to the CME "FedWatch" tool: The probability of the US Fed keeping rates unchanged by September is 45%, while the probability of a cumulative 25 basis point hike is 55%. The probability of the Fed keeping rates unchanged through October is 31%, while the probability of a cumulative 25 basis point hike is 51.9%, and a cumulative 50 basis point hike is 17.1%. (Jin10 Data APP) According to a report by the UK's Financial Times, even after a decision not to reveal too many details on rate strategy triggered a sharp sell-off in government bonds, Fed Chairman Warsh is sticking with his usual concise communication style. People close to Warsh say he acknowledges making some mistakes during his first 10 weeks at the helm of the world's most important central bank, including failing to reinforce his key message on price stability and creating confusion over whether his long-term plan to reform the Fed could influence near-term policy decisions. However, they insisted those mistakes were not enough to derail Warsh's reform plans for the Fed. People familiar with the matter also revealed that Warsh is prepared to raise interest rates at the September meeting if upcoming inflation data proves strong and market expectations for higher borrowing costs rise accordingly. The sources added that while the Fed Chairman raised the possibility of shrinking the central bank's $6.7 trillion balance sheet to tighten monetary policy, interest rates remain the primary tool for now and will be used at upcoming meetings if necessary. (Jin10 Data APP) Macro Events: Data releases today include France's Q2 ILO unemployment rate, Germany's June seasonally adjusted industrial output MoM, Germany's June seasonally adjusted trade balance, the UK's July Halifax seasonally adjusted house price index MoM, France's June trade balance, Switzerland's July consumer confidence index, Canada's July employment change, the US July unemployment rate, US July seasonally adjusted non-farm payrolls, US July average hourly earnings YoY, US July average hourly earnings MoM, US July New York Fed 1-year inflation expectations, China's July US dollar-denominated trade balance, China's July foreign exchange reserves, and China's July trade balance data. Watches: 2028 FOMC voter and St. Louis Fed President Musalem speaks on the US economy and monetary policy; 2027 FOMC voter and Richmond Fed President Barkin delivers remarks. Crude Oil: Overnight, both oil futures rose, with US oil gaining 4% and Brent oil surging 4.57%. Geopolitical risks rekindled, causing oil prices to spike sharply. Wall Street CN mentioned that the new navigation agreement for the Strait of Hormuz, proposed to be signed by Iran and Oman, revealed significant details again, indicating Iran's bid to control the strait. Furthermore, Iran has taken action, striking "enemy targets" near the strait. Iran's Fars News Agency (FARS) reported on Thursday, August 6, local time, that Iran's parliament is reviewing this agreement. Under the agreement, US and Israeli vessels will be barred from transiting the Strait of Hormuz, and nations that have "caused harm to Iran" will also be denied passage permits. Following this news, concerns over risks to global energy transportation rapidly intensified in the market. (Wall Street CN) Saudi Arabia cut its main crude oil price for Asia as negotiations proceed on an agreement aimed at easing shipping pressure in the Strait of Hormuz. The price cut came despite Houthi threats jeopardizing the alternative eastbound crude route via the Red Sea. According to a price list, state oil company Saudi Aramco reduced the price of its Arab Light crude for delivery to Asian clients next month by $0.50 per barrel, setting it at a $2/bbl discount to the regional benchmark. A prior survey showed traders expected Saudi Aramco to keep its flagship crude price unchanged. Global benchmark Brent crude prices fell sharply this week and are now trading near $80/bbl. (Jin10 Data APP) Over the past two months, the UAE has transported more crude oil through the Strait of Hormuz than any other producer, providing a critical supply buffer to a global market suffering from a historic energy crisis. According to energy data firm Kpler, a Very Large Crude Carrier (VLCC) loaded with Emirati cargo appeared in the Gulf of Oman on Tuesday after turning off its Automatic Identification System (AIS) signal at the end of July. The tanker carries crude from the Abu Dhabi National Oil Company. This is just one of dozens of similar tankers that have departed the Persian Gulf since the Abu Dhabi National Oil Company (ADNOC) began implementing a new sales strategy. According to trading sources familiar with the matter, since early June, ADNOC has sold over 130 million barrels of crude oil through seven unprecedented tenders. (Jin10 Data APP)

[SMM Zinc Morning Comment: SHFE Zinc Opens Higher with a Gap in Night Session, Expected to Stay High] Overnight, the most-traded SHFE zinc 2609 contract opened at 25,780 yuan/mt. After opening, SHFE zinc consolidated around the daily average line, hitting a session high of 25,960 yuan/mt and dipping to a low of 25,770 yuan/mt near the end. It finally closed up at 25,890 yuan/mt, up 305 yuan/mt or 1.19%, with trading volume increasing to 86,747 lots..

[SMM Analysis]Cost Support and Demand Constraints Coexist, ADC12 Consolidates at Highs, Awaiting Peak Season Breakthrough

[SMM Analysis: Cost Support and Demand Constraints Coexist, ADC12 Consolidates at Highs Awaiting Peak Season Breakthrough] Entering August, ADC12 prices are expected to continue to consolidate at highs. Cost side, currently tight supply of aluminum scrap and high tax invoice compliance costs...

SMM August 6 News: Germanium ingot in the spot market, driven by tight raw material supply, saw its price edge up slightly; leading tungsten enterprises slightly raised their long-term contract quotations. Meanwhile, the US Department of Commerce's Bureau of Industry and Security (BIS) on August 6, 2026, formally published in the Federal Register the interim final rule "Allocation Order and Additional Requirements for Recyclable Critical Minerals and Materials," under the Defense Production Act (DPA) and a presidential determination on July 30, 2026, imposing mandatory domestic sales controls on two types of critical recycled minerals: shredded tungsten scrap and lithium battery black mass. The rule will take effect on August 27, 2026, and remain valid until August 27, 2027, intensifying concerns about tight tungsten raw material supply outside China. As of now, activity in domestic spot tungsten transactions has shown some rebound, and the transaction center for spot tungsten ore orders has edged up slightly. Secondary market sentiment heating up boosted the minor metal sector, which collectively strengthened. As of the close on August 6, the minor metals sector rose by 2.08%. In terms of individual stocks: Yunnan Germanium surged over 8%, while China Tungsten High-Tech, Xianglu Tungsten, Xiamen Tungsten, Haotong Technology, and Orient Tantalum led the gains. Spot Market Germanium Order to View SMM Historical Metal Spot Prices Germanium is a strategic rare metal with a highly concentrated global supply structure. The ongoing implementation of domestic resource controls and frequent geopolitical disruptions outside China, combined with the normal enforcement of export control policies, have collectively reinforced supply tightening expectations. Currently, low-priced supply in the market is scarce, and downstream just-in-time procurement must accept high-priced materials, causing germanium ingot prices to edge up on August 6. Meanwhile, overall stable demand from end-use industries has provided support for the continuous rise in germanium prices this year. Tungsten Order to View SMM Historical Metal Spot Price Trends Currently, the tungsten ore market is operating steadily. A large tungsten enterprise slightly raised its long-term contract quotation, providing some support to market confidence. Meanwhile, the US Department of Commerce's Bureau of Industry and Security (BIS) on August 6, 2026, formally published in the Federal Register the interim final rule "Allocation Order and Additional Requirements for Recyclable Critical Minerals and Materials," under the Defense Production Act (DPA) and a presidential determination on July 30, 2026, imposing mandatory domestic sales controls on two types of critical recycled minerals: shredded tungsten scrap and lithium battery black mass. The rule will take effect on August 27, 2026, and remain valid until August 27, 2027, which has escalated market concerns about tight tungsten raw material supply outside China. As of now, activity in domestic spot tungsten transactions has shown some rebound, and the transaction center for spot tungsten ore orders has edged up slightly. On the domestic front, the market is reassessing the impact of the "Opinions of the National Mine Safety Administration on Standardizing Construction Teams for Metal and Non-Metallic Mine Mining (Stripping)" on the non-coal mining industry. The document requires that by May 1, 2027, for underground mines and by May 1, 2028, for open-pit mines, one of two options must be chosen: ① establish an in-house mining team; ② engage in compliant integrated contracting; fragmentary subcontracting and layered transfers are prohibited, and labor dispatch is strictly banned. Mines failing to complete rectification by the deadline will be ordered to suspend production for rectification. Domestic tungsten mines are primarily underground, with the vast majority of wolframite extracted through underground mining, and some scheelite extracted through both open-pit and underground methods. In tungsten-rich regions such as Jiangxi and Hunan, a large number of small and medium tungsten mines have long been highly dependent on external contracted mining teams. The implementation of the new regulation will impose tangible constraints on tungsten ore supply, production costs, and the operations of small and medium mines. Recently, the spot tungsten ore market has started to become more active, with traders actively entering the market, while downstream smelters continue to maintain a wait-and-see sentiment. Overall, market sentiment has eased amid frequent mining policies and intensive safety inspections in Yunnan, Jiangxi, and Henan. Supply-side disruptions have increased, and if demand shows mild entry, the tungsten market is expected to see a turnaround. Institutional Voices Guojin Securities research report believes: Tantalum: Global tantalum resource supply is highly concentrated and frequently disrupted, while development of AI servers and advanced semiconductor manufacturing is expected to continue driving demand growth in tantalum capacitors, tantalum targets, and other areas. Against the backdrop of ongoing supply constraints and gradual demand release, the tantalum market is expected to shift from supply-driven to supply-demand resonance, pushing the tantalum price center further upward. Related equities: Oriental Tantalum, Guotai Group, Ximei Resources, Xinjinlu, Jiangwu Equipment. Minmetals Securities research report points out: Germanium accounts for 60% of applications in optical communications and satellite photovoltaics, making it an "AI computing power + space energy" metal. With its excellent refractive index control capability and radiation resistance, germanium has become a critical material for AI data center optical interconnects and low-earth orbit satellite photovoltaic systems. Looking at changes in demand structure, from 2020 to 2026, downstream germanium consumption grew from 160 mt to 240 mt, with optical communications' share rising to 40% and satellite photovoltaics' share to 20%, together accounting for 60% of total downstream demand. It is expected that 90% of demand growth contributions in 2027 will come from two high-boom sectors: AI hardware and satellite photovoltaics. Caitong Securities research report shows: With the explosive demand for AI computing power, the market size of indium phosphide, used as a chip substrate material, will continue to expand. Indium resources are scarce and subject to policy restrictions, and product prices have entered an upward channel. High-purity red phosphorus is a critically important semiconductor base material with high purification technology barriers. Against the backdrop of accelerated AI application deployment driving related infrastructure construction, the indium phosphide substrate industry chain is expected to see dual opportunities from demand growth and domestic substitution. Investors are advised to follow related enterprises with resource and technology advantages in indium phosphide, indium, and high-purity red phosphorus. Datong Securities research report shows that minor metals have embarked on an independent upward trend, with supply tightening and strategic attributes driving a valuation re-rating. The rare earth sector is front-running expectations of new regulations, with Myanmar ore imports disrupted and Pr-Nd oxide seeing tight spot supply and soaring prices. In tungsten and antimony, declining ore grades combined with environmental protection-driven production restrictions have widened supply gaps, while demand from photovoltaics and cemented carbides remains firm even in the off-season, with inventories at low levels. AI computing power and the communications industry are driving demand for gallium and germanium, and coupled with export control policies, overseas stockpiling has widened price spreads between Chinese and overseas markets. Scarce resources and financial attributes resonate, and the sector continues to attract capital favor.

[SMM Magnesium Weekly Review: Cost Support Keeps Magnesium Ingot Bottom Firm; Weak Domestic and Overseas Demand Keeps the Market Consolidating] This week, domestic magnesium ingot prices drifted lower overall. 99.90% magnesium ingot in Fugu and Shenmu was quoted at 15,950-16,050 yuan/mt, down 350 yuan/mt from the previous week. After the holiday, market pessimism spread. Smelters sold actively, while downstream made only just-in-time procurement. Amid strong supply and weak demand, prices continued to grind lower. The average FOB price at Tianjin port was $2,365/mt. Domestic smelters were unable to hold prices firm, and FOB offers were lowered accordingly. As the summer break approached outside China, new orders were scarce, and foreign trade transactions were sluggish. Dolomite cost support was limited. Magnesium powder and magnesium alloy weakened in tandem. Downstream off-season demand weakness dragged on the market. In the short term, magnesium ingot prices are likely to consolidate on a subdued note.

SMM, August 6: Metal Markets: As of the midday close, base metals on the domestic market were almost all up. SHFE copper rose 0.4%, SHFE aluminum rose 0.23%. SHFE lead edged up. SHFE zinc rose 1.49%. SHFE tin rose 0.26%. SHFE nickel fell 2.1%. In addition, the most-traded casting aluminum futures contract edged down, while the most-traded alumina contract rose 1.36%. The most-traded lithium carbonate contract fell 1.23%. The most-traded silicon metal contract rose 0.12%. The most-traded polysilicon futures contract fell 0.65%. Ferrous metals were mostly in the green. Iron ore rose 2%, rebar rose 0.67%, and HRC rose 0.53%. Stainless steel fell 1.51%. For coking coal and coke: the most-traded coking coal contract rose 0.74%, and the most-traded coke contract rose 1.99%. On the overseas base metals market, as of 11:42, LME metals were almost all down. LME copper fell 0.36%, LME aluminum rose 0.17%, LME lead fell 0.16%, LME zinc fell 0.37%. LME tin fell 1.58%. LME nickel fell 1.9%. In precious metals, as of 11:42, COMEX gold rose 0.44%, while COMEX silver fell 0.05%. On the domestic precious metals market: SHFE gold rose 3.72%, and the most-traded SHFE silver contract rose 3.19%. Additionally, as of the midday close, the most-traded platinum futures contract rose 1.05%, and the most-traded palladium futures contract rose 1.4%. As of the midday close, the most-traded container shipping futures (Europe route) contract fell 0.63% to 1,651 points. As of 11:42 on August 6, selected futures midday prices: Spot and Fundamentals Copper: Today, spot #1 copper cathode in Guangdong against the front-month contract: high-quality copper was quoted at 90 yuan/mt, down 20 yuan/mt from the previous trading day; standard-quality copper was at a premium of 10 yuan/mt, down 20 yuan/mt; and SX-EW copper was at a discount of 50 yuan/mt, down 20 yuan/mt. The average price of #1 copper cathode in Guangdong was 107,900 yuan/mt, up 910 yuan/mt from the previous trading day, and that of SX-EW copper was 107,820 yuan/mt, up 930 yuan/mt. In the spot market: Guangdong inventory increased again, mainly due to increased arrivals and weakening consumption... Macro Front China: [PBOC’s open market operations saw a net drain of 269.5 billion yuan today] The PBOC conducted 1 billion yuan of 7-day reverse repo operations at an interest rate of 1.40%, unchanged from the previous operation. Today, 270.5 billion yuan of reverse repos matured. [China Gold Association: In H1 2026, increase in domestic gold ETF holdings fell 66.17% YoY] Data from the China Gold Association showed that the increase in domestic gold ETF holdings in H1 2026 was 28.677 mt, down 66.17% from H1 2025. By the end of June 2026, the open interest of gold ETFs in China stood at 276.529 mt. China increased its gold holdings by 40.12 mt in H1 2026, bringing its gold reserves to 2,346.45 mt by month-end June, ranking fifth globally. The country had added to its gold reserves for 20 consecutive months, Nov 2024-Jun 2026. (Jin10 Data APP) On August 6, the central parity rate of the RMB in the interbank foreign exchange market was 6.7895 yuan per US dollar. US Dollar: As of 11:42, the US dollar index edged up 0.03% to 99.72. Cooling US ADP employment data contrasted with elevated ISM services costs, raising stagflation concerns. US ADP employment data missed expectations! The US ADP private payrolls increased by only 44,000 in July, the lowest this year, making Friday's non-farm payrolls data critical. US ADP private-sector employment rose by just 44,000 in July, a new low for the year and below expectations. The goods-producing sector was under pressure, signaling a cooling labour market. However, job-stayers' wages saw robust YoY growth of 7%, indicating persistent structural tightness. The market is focused on Friday's non-farm payrolls data; if it follows the same trend, it would confirm steady employment, supporting the Fed's continued focus on combating inflation. The US ISM Services PMI continued expanding in July, showing demand-side resilience but intensifying stagflation risks. The US ISM services index rose to 54.1 in July, a 0.1-point uptick from June but below the expected 54.5. The new orders index surpassed expectations to hit 57.2, and the prices paid index exceeded forecasts to reach 70.3, while the employment index fell short of expectations, dropping to 47.4 and into contraction territory. Rising costs alongside contracting employment presented stagflationary characteristics. The US Treasury kept its quarterly debt issuance size unchanged, with $40 trillion in debt pressure looming. The latest Treasury refunding statement maintained current auction sizes for coupon-bearing securities but changed the description for future issuance from "increases" to "adjustments," preserving flexibility for future policy shifts. The borrowing estimate for the current quarter was raised to $739 billion, with the total federal debt about to surpass $40 trillion. The Treasury continues to rely on short-term bills to bridge the gap, making financing costs more sensitive to interest rates. The market fears that delaying adjustments could trigger a larger shock from long-term debt issuance later. (From Wall Street Horizon APP) Data: Today will see the release of Switzerland's July seasonally adjusted unemployment rate, the Eurozone's June retail sales MoM, US July Challenger job cuts, US initial jobless claims for the week ending August 1, US July Global Supply Chain Pressure Index, and US June wholesale sales MoM, among other data. To watch: Fed Governor Lisa Cook will speak on the economic outlook; 2027 FOMC voter and San Francisco Fed President Daly will deliver remarks. Crude Oil: As of 11:42, oil prices in both markets edged down, with US crude down 0.28% and Brent crude down 0.13%. The market is focusing on the progress of talks between Iran and Oman. Iranian Deputy Foreign Minister Gharibabadi said in an interview on August 5 that the agreement between Iran and Oman on merchant ship passage through the Strait of Hormuz is close to being finalised. According to local news from the Iranian side on the 5th, both the southern route through Omani territorial waters and the northern route within Iranian territorial waters will be closed, establishing a new passage model in the Strait of Hormuz that differs from the past 60 years. Additionally, Gharibabadi denied that Iran is in negotiations with the US, but stated that Iran has received messages from the US side, and said the US has expressed readiness to resume fulfilling commitments under the previously signed memorandum of understanding. (CCTV) On August 5 local time, US President Trump said in a speech at an event in Las Vegas that recent oil prices have fallen and stabilised to some extent, "We may have to let it go up again," but he "hopes it won't come to that." Trump did not elaborate on the meaning of this statement. An analysis by the Associated Press pointed out that although Trump has repeatedly assured that the war with Iran is about to end, oil prices typically rise anew with the onset of conflicts between the two sides. (CCTV International) Spot Market Overview: ► ► ► ► ► ► ► ► ►