On August 13, 2026, the Ministry of Heavy Industries of India officially launched the technical bid evaluation for the "Sintered Rare Earth Permanent Magnet Manufacturing Promotion Plan" (REPM), with 20 bids vying for up to five licenses. On the surface, it appears to be a fierce "20-for-5" competition, but when examining the industry's fundamentals, the real protagonist of this story is not the 72.8 billion rupees (about $765 million) in subsidies, but the "three clocks" running simultaneously in India—the policy clock is already pointing to mass production in 2028, the commercialization clock of state-owned enterprise IREL points to 2029–2030, and the certification clock of downstream clients is measured in "years." The desynchronization of these three clocks is the most intuitive footnote to the fact that it is still too early for India's rare earth industry chain to develop.

Libya has ordered a major state-owned steelmaker in Misrata to suspend production as the country faces worsening electricity shortages. The producer will halt its production lines and connect its captive power plant to the national grid to ease pressure during a period of high electricity demand. No timetable has been announced for restarting steel production. The company has an annual liquid steel design capacity of about 1.7 million tonnes and produces long and flat steel products, semis and hot briquetted iron.

Sulphate performance remained weak, and the nickel intermediate product payables were in the doldrums this week.

Galvanized-Cold Rolled Spread Consolidated at Lows in 2026, Significantly Below Previous Years' Levels Since early 2026, the galvanized-cold rolled spread has been moving extremely sideways in the 220-300 yuan/mt range, with an average of 273 yuan/mt, significantly below the 414 yuan/mt average in the same period of 2025. SMM Galvanized-Cold Rolled Spread Chart Source: SMM Looking back at historical data, from 2023 to 2025, the galvanized-cold rolled spread showed clear seasonal characteristics, with the spread quickly shooting up in Q2 as downstream demand recovered, reaching a yearly high in mid-year before gradually pulling back. However, in 2026, the spread broke its historical pattern, consolidating at narrow low levels throughout the year, without the significant expansion seen in Q2 of previous years. In H1 2026, the galvanized-cold rolled spread mostly consolidated in the 220-300 yuan/mt range, with minor fluctuations in January-March, and after hitting a yearly low in May, it slowly edged up, with a peak only approaching 300 yuan/mt, significantly below the 500-800 yuan/mt peak levels in the same period of previous years. The prolonged suppression of the galvanized-cold rolled spread is fundamentally due to constraints from both supply and demand. On the supply side, the concentrated release of new production lines for China domestic galvanizing and zinc-aluminum-magnesium products has intensified competition, significantly compressing the upside room for galvanizing processing fees. On the demand side, real estate-related galvanizing consumption remained relatively weak; although automotive and home appliance demand showed resilience, the overall incremental demand for galvanized sheet was limited, and exports of galvanized sheet were unable to fully absorb the new capacity, significantly weakening the boost effect from peak seasons. Meanwhile, on the cost side, ample supply of cold-rolled substrate and its low price level, along with difficulties for zinc price fluctuations to fully support galvanized sheet costs, further curbed the upward movement room for the galvanized-cold rolled spread. In H2 2026, the galvanized-cold rolled spread is expected to continue moving sideways in the current range or narrow upward fluctuations Looking ahead to H2 2026, the probability of a significant rise in the spread is low; under a neutral scenario, it may continue moving sideways in the 260-340 yuan/mt range. If manufacturing orders show marginal improvement during the September-October peak season, the spread may have a slight upward opportunity, but due to capacity constraints, the upside room is limited. If peak season demand falls short of expectations, the spread faces downward pressure to 220-250 yuan/mt. Further sharp contraction in the spread would lead to larger losses for steel mills, forcing some galvanizing production lines to undergo maintenance or cut production, providing bottom support for the spread. Overall, against the backdrop of overcapacity and weak demand, the galvanized-cold rolled spread is unlikely to return to previous high levels, and is more likely to fluctuate in a range following marginal changes in demand.

In 2026, the galvanized–cold-rolled price spread moved sideways at lows, significantly below the levels of previous years From the beginning of 2026 to date, the galvanized–cold-rolled price spread has remained in an extremely narrow range of 220-300 yuan/mt, averaging 273 yuan/mt, significantly below the average of 414 yuan/mt over the same period in 2025. SMM Galvanized–Cold-Rolled Price Spread Chart Source: SMM Looking back at prior years, the galvanized–cold-rolled price spread in 2023 and 2025 showed clear seasonality: in Q2 each year, the spread shot up rapidly as downstream demand recovered, then gradually pulled back after reaching the annual high around mid-year. However, in 2026 the galvanized–cold-rolled price spread broke this established pattern, staying in a narrow low range throughout the year, with no sharp expansion seen in Q2 of previous years. In H1 2026, the galvanized–cold-rolled price spread basically consolidated within the 220-300 yuan/mt range, with slight fluctuations from January to March; after touching the year’s low in May, it edged up slowly, and even the peak was only close to 300 yuan/mt, significantly below the high levels of 500-800 yuan/mt over the same period in previous years. The key reason the galvanized–cold-rolled price spread has remained suppressed is the dual constraints from both supply and demand. Supply side, new production lines for galvanizing and Zn-Al-Mg in China were released in a concentrated manner, intensifying industry competition and significantly compressing the upside room for galvanizing processing fees. Demand side, real-estate-related galvanized consumption remained generally weak; while demand from autos and home appliances showed resilience, overall it provided limited growth in demand for galvanized sheet. Exports of galvanized sheet also struggled to fully absorb the new capacity, and the boost from the peak season weakened noticeably. Meanwhile, cost side, cold-rolled substrate supply was ample and prices were also at low levels; fluctuations in zinc prices were unable to fully support the cost of galvanized sheet, and insufficient cost support further constrained the upside room for the galvanized–cold-rolled price spread to fluctuate upward. In H2 2026, the galvanized–cold-rolled price spread is likely to extend the current range or fluctuate slightly upward within a narrow band Looking ahead to H2 2026, the probability of a sharp rise in the galvanized–cold-rolled price spread is low; under the base-case scenario, it may continue to move sideways within the 260-340 yuan/mt range. If manufacturing orders improve at the margin during the September-October peak season, the spread may have an opportunity to edge up slightly, but upside room is limited due to capacity constraints. If peak-season demand falls short of expectations, the spread will face pressure to pull back to 220-250 yuan/mt. Further sharp narrowing of the spread would lead to larger-scale losses for steel mills, forcing maintenance and production cuts at some galvanizing lines, thereby providing bottom support for the spread. Overall, against the backdrop of overcapacity and weak demand, the galvanized–cold-rolled price spread is unlikely to reach the higher levels seen in previous years, and will more likely fluctuate within a range in line with marginal changes in demand. Data Source Statement: (Except for public information, all other data in this report are derived from public information (including but not limited to industry news, seminars, exhibitions, enterprise financial reports, brokerage reports, National Bureau of Statistics (NBS) data, customs import and export data, and various data released by major associations and institutions), market communication, and SMM’s internal database models. They are obtained through comprehensive analysis and reasonable inference by the research team, are for reference only, and do not constitute decision-making advice. SMM reserves the right of final interpretation of the terms of this statement and the right to adjust and revise the content of this statement according to actual circumstances.

According to reports, the Hyundai Motor Union (Metal Workers' Union Hyundai Motor Branch) launched a full strike on the 21st due to a deadlock in this year's wage and labor negotiations. This is the first time the union has taken such action since 2016. As a result, all production lines at the Ulsan, Jeonju, and Asan plants were shut down that day. Because both day-shift and night-shift workers went on strike for 8 hours each, the production lines were actually suspended for 16 hours that day. Currently, the labor and management sides are locked in a tug-of-war over three demands: raising bonuses, reinstating employees fired for union activities, and extending the retirement age. The negotiations remain deadlocked, with differences yet to be resolved.

On August 18, 2026, the production line for crystalline silicon-perovskite tandem thin-film cells at Zhongshan Guangji Lvneng New Materials Technology Co., Ltd. (hereinafter referred to as "Guangji Lvneng") officially commenced production, marking a significant step for the enterprise in the industrialisation of next-generation high-efficiency PV technology. The production line focuses on the large-scale manufacturing of crystalline silicon-perovskite tandem thin-film cells, advancing the transition of advanced tandem cell technology from laboratory R&D to mass production.

SMM August 21 news: China's LFP cathode material export data for July 2026 was released. Customs data show that exports in July stood at 13,153.3 mt , down 14.5% MoM from the June record high, but still up roughly 380% YoY. Export sentiment stayed high. On the price front, the average export price in July was $9,107.45/mt, edging down about $17.6/mt MoM, a decline of only 0.2%, indicating overall price stability. By region: North America: The US remained the main pillar of overseas demand. Exports to the US in July totaled 5,972.5 mt, up 10.4% MoM. Despite policy uncertainties, domestic battery capacity in the US continued to ramp up, keeping actual import demand rigid. Exports to Canada fell from 2,464.5 mt in June to 1,443.4 mt, down 41.4% MoM, mainly due to a normal pullback after concentrated stockpiling by top-tier players like LG Energy Solution in June. Europe: The recovery trend was further confirmed. Exports to Poland hit 889.5 mt, up 38.1% MoM, the second consecutive month of rebound. Higher operating rates at LG's Poland plant and Northvolt's production lines continued to drive import demand for Chinese LFP cathode materials. Hungary recorded its first export of 16 mt in July, indicating that CATL's Hungary plant had entered the small-batch stockpiling phase, laying the groundwork for future volume growth in Europe. Asia: Exports to South Korea rebounded to 137.0 mt, up 70% MoM, reflecting rigid demand from Japanese and South Korean battery enterprises for cost-effective LFP materials under cost reduction pressure. Exports to Thailand and Vietnam reached 2,089.6 mt and 660 mt, up 4.5% and 6.5% MoM respectively, maintaining steady growth and providing stable support to the Southeast Asian market. Overall, although July exports pulled back MoM, the absolute level remained at a historical high. The core logic of robust overseas LFP demand remained unchanged. (Data source: SMM and customs import and export statistics)

SMM August 21: China's LFP cathode material export data for July 2026 was released. Customs data showed that exports totaled 13,153.3 mt in July, down 14.5% MoM from the historic peak in June, but still up about 380% YoY, with export activity staying high. In terms of prices, the average export price in July was $9,107.45/mt, edging down about $17.6/mt MoM, a decline of only 0.2%, with prices remaining stable overall. By region: North America market, the US remained the main pillar of demand outside China. Exports to the US totaled 5,972.5 mt in July, up 10.4% MoM. Despite policy uncertainties, US domestic battery capacity continued to ramp up, keeping actual import demand rigid. Canada's exports fell from 2,464.5 mt in June to 1,443.4 mt, down 41.4% MoM, mainly due to a normal pullback after concentrated stockpiling by top-tier players such as LG Energy Solution in June. Europe market, the recovery trend was further confirmed. Poland exports reached 889.5 mt, up 38.1% MoM, rebounding for the second consecutive month. Higher operating rates at LG's Poland plant and Northvolt's production lines continued to drive import demand for China's LFP cathode materials. Hungary recorded its first export of 16 mt in the month, indicating that CATL's Hungary plant had entered a small-batch stockpiling phase, laying the foundation for future volume growth in Europe. Asia market, South Korea exports rebounded to 137.0 mt, up 70% MoM, reflecting that battery enterprises in Japan and South Korea still had rigid demand for cost-effective LFP cathode materials under cost reduction pressure. Thailand and Vietnam exported 2,089.6 mt and 660 mt, respectively, up 4.5% and 6.5% MoM, maintaining stable growth and providing steady support for the Southeast Asia market. Overall, although July exports pulled back MoM, the absolute level remained historically high, and the core logic of robust overseas demand for LFP cathode materials remained unchanged. (Data source: SMM and customs import and export statistics) SMM New Energy Research Team Wang Cong 021-51666838 Feng Di-sheng 021-51666714 Yang Chaoxing 021-20707860 Wang Zihan 021-51666914 Wang Jie 021-51595902 Chen Bolin 021-51666836 Wang Yizhou 021-51595909 Xu Mengqi 021-20707868 Hu Xuejie 021-20707858 Lin Ziya 021-51666902 Yang Le 021-51595898 Li Yisha 021-51666730 Wang Zhaoyu 021-51666827 Xiao Wenhao 021-51666872 Zhang Jing 021-51666878

[Major Producers’ Procurement Drove a Recovery in Pr-Nd Oxide; Metals Stopped Falling and Followed the Rise; Dysprosium Oxide Continued to Be Raised; Magnetic Material Scrap Stayed on the Sidelines] At present, the overall circulation frequency of rare earth ore remains poor, market trading is in a stalemate, and weaker oxide prices have led to a downward shift in the center of rare earth ore transaction prices.