The market share of Chinese passenger vehicles in Europe has surpassed Japan's for the first time. The latest statistics from the European Automobile Manufacturers' Association show that in May, five Chinese automakers sold a total of 138,400 units in 31 European countries, up 65% YoY. Over the same period, six Japanese automakers' sales totaled 130,400 units, down 3% YoY.

Yunnan Energy announced that it has been selected as the developer of the 100MW/400MWh Ninglang independent shared energy storage project in Lijiang, Yunnan Province. The project, which has been included in Yunnan's 2026 new shared energy storage project list, will adopt a grid-forming vanadium redox flow battery (VRFB) energy storage system and is scheduled to be commissioned within two years. The company said the project will strengthen its new energy business, although it remains subject to regulatory approvals.

On July 1, Alcoa agreed to acquire South32’s bauxite, alumina, and aluminum assets in a deal valued at up to $5.6 billion, solidifying its position as a top producer. Alcoa’s CEO said the transaction expands the scale of the company’s smelting operations and is expected to immediately increase cash flow. The deal is expected to be completed in H1 2027, subject to shareholder and regulatory approvals.

On July 3, JL MAG Rare-Earth's share price rose, closing 3.79% higher at 34.25 yuan per share. On the news front, JL MAG's H1 performance forecast released on July 1 showed: net profit attributable to parent for H1 2026 is expected to be 400 million to 460 million yuan, up 31.17% to 50.84% YoY. Regarding the reasons for performance changes, JL MAG stated in an announcement: 1. In H1 2026, the management adhered to the annual operating policy of "adhering to compliance and regulations, being customer-oriented, focusing on the magnetic materials main business, constructing 20,000 mt of new capacity on schedule, actively deploying embodied robot motor rotors, and reaching new heights." Through measures including technological innovation, organizational optimization, digitalization, and lean management, the company ensured full contract fulfillment and delivery to customers while achieving steady business growth. The company continued to strengthen its leading position in new energy and environmental protection sectors and actively explored emerging markets, with revenue expected to increase by about 30% YoY. Specifically, revenue from the NEV and auto parts sector rose about 30% YoY; in the robot and industrial servo motor sector, revenue rose about 90% YoY, with small-batch deliveries of embodied robot motor rotors already underway. 2. During the reporting period, non-recurring gains and losses are expected to impact net profit by approximately 32.00 million yuan, compared to 70.9405 million yuan (after tax) in the same period last year. 3. In this reporting period, due to A-share and H-share equity incentives as well as H-share convertible bond issuance, total related share-based payment expenses and financial expenses amounted to about 121 million yuan. There were no such expenses in the same period last year. A recent JL MAG announcement shows: to implement the company's development strategy and strengthen comprehensive competitiveness, it plans to acquire a 9.24% equity stake in Baotou Rare Earth Products Exchange Co., Ltd. held by China Northern Rare Earth, through public listing and transfer on the Inner Mongolia Property Rights Exchange Center . According to the valuation report issued by Northern Yashi Asset Evaluation Co., Ltd., as of the valuation date December 31, 2025, the total equity value of the exchange under the market approach was 239.00 million yuan, representing an appreciation of 27.8551 million yuan, or 13.19%, over the net asset book value of 211.1449 million yuan. The expected transaction price for the subject equity is 22.0836 million yuan. Under the Shenzhen Stock Exchange ChiNext Listing Rules and the company's articles of association, this external investment falls within the CEO's approval authority. This investment does not constitute a related party transaction, nor does it constitute a material asset restructuring as defined in the *Administrative Measures for the Material Asset Restructuring of Publicly Listed Firms*. Regarding the company's main business and product applications, JL MAG Rare-Earth introduced in its 2025 annual report: The company is a high-tech enterprise integrating R&D, production, and sales of high-performance NdFeB permanent magnet materials, magnetic assemblies, embodied robot motor rotors, and comprehensive utilization of rare earth recycling. It is a leading supplier of rare earth permanent magnet materials in the new energy and environmental protection sectors. The company’s products are widely used in NEVs and auto parts, energy-saving variable-frequency air conditioners, wind power generation, robotics and industrial servo motors, 3C, low-altitude aircraft, energy-saving elevators, rail transit, and other fields, and it has established long-term and stable cooperative relationships with industry leaders both in and outside China in these sectors. The company actively positions itself in the robotics field. On one hand, it collaborates with internationally renowned technology companies to conduct R&D and capacity building for embodied robot motor rotors, with small-batch product deliveries already made. On the other hand, through direct investment or participation in industry funds, it strategically lays out key links in the relevant industry chain to accelerate industrial synergy and commercialization. Regarding the operating plan for 2026, JL MAG Rare-Earth introduced in its 2025 annual report: The company's operating policy for 2026: "Adhere to legal compliance, adhere to client orientation, focus on the magnetic material main business, build 20,000 mt of new capacity on schedule, actively position embodied robot motor rotors, and scale new peaks." Based on this operating policy and under the premise of legal compliance, the company will focus on advancing the following tasks: 1. Orderly release of capacity under construction. In 2026, some of the company's projects under construction will gradually release capacity. The specific release progress will consider factors such as equipment commissioning and market demand, advancing the commissioning and ramp-up of new capacity in an orderly manner. 2. Continuous improvement of R&D capabilities. 3. Continuous optimization of the product mix. The company will continue to enrich its product matrix for different application scenarios based on client needs, enhancing product structure resilience and client stickiness. Meanwhile, it will steadily advance the layout of projects such as magnetic assemblies and embodied robot motor rotors, equip dedicated production lines and professional teams, and drive the upgrade of small-batch pilot lines to large-scale, standardized manufacturing and quality systems. 4. Continuous improvement of operational capabilities. 5. Strengthening capital expenditure efficiency. 6. Improving incentive mechanisms and shareholder returns. 7. Advancing the construction of the ESG system. Regarding potential risks the company may face, when introducing the risk of rare earth raw material price fluctuations, JL MAG Rare-Earth stated: Rare earth metals are the main raw materials for producing NdFeB magnets. China is an important global supply base for rare earth raw materials, and wild swings in rare earth raw material prices will adversely affect the company's production and sales in the short term. Mitigation measures: The company has built production plants in Ganzhou, Jiangxi, the main production area for heavy rare earth, and in Baotou, Inner Mongolia, the main production area for light rare earth. The company has established long-term cooperative relationships with major rare earth raw material suppliers, including China Northern Rare Earth Group and China Rare Earth Group. Meanwhile, through measures such as procuring rare earth raw material in advance based on orders on hand, establishing price adjustment mechanisms with key clients, optimizing formulations, and improving processes, the company strives to reduce the adverse impact of rare earth raw material price fluctuations on its operating performance. A review of Pr-Nd alloy’s price performance in H1 this year shows : The average price of Pr-Nd alloy on June 30 was 905,000 yuan/mt. Compared with its average price of 735,000 yuan/mt on December 31, 2025, the increase in H1 this year was 23.13%. The annual daily average price of Pr-Nd alloy in H1 this year was 904,650.86 yuan/mt. Compared with its annual daily average price of 529,559.83 yuan/mt in H1 2025, the semiannual daily average price rose by 375,091.03 yuan/mt, up 70.83% YoY. According to SMM quotations: On July 3, the Pr-Nd alloy price was 920,000-930,000 yuan/mt, with an average of 925,000 yuan/mt, up 1.09% from the previous trading day. Currently, rare earth market prices overall are showing a broad upward trend. Driven by a marked increase in market trading activity on July 2, low-priced supply of Pr-Nd oxide tightened, and suppliers of oxides raised their quotations one after another. However, overall inquiry activity in the market declined somewhat compared with yesterday, and actual transactions were not ideal. In the metal market, supported by oxide costs, prices also rose. However, downstream magnetic material enterprises made fewer inquiries, and metal enterprises were not very proactive in offering quotations, resulting in a generally sluggish trading atmosphere and relatively strong wait-and-see sentiment. In the short term, affected by the tightening of low-priced supply in the market, Pr-Nd product prices are expected to drift higher amid consolidation. Recommended reading:

[Flat products (HRC)]HRC prices steady, trading muted as EU quota cuts hit exports No dedicated slab/HRC export daily was published on 3 July; latest figures are from 2 July. HRC and other flat prices held steady, with HRC deals at 488-497 USD/tonne alongside some lower RMB offers, and overall trading was muted. With EU quotas tightening, traders reportedly have shipped little to the EU since April, hitting hardest those with large prior EU export shares. [Billet]Export billet FOB steady at 458-461 USD, weak overseas order appetite On 3 July export billet was quoted at 458-461 USD/tonne FOB, holding steady. Southeast Asian enquiries picked up slightly, but domestic offers remained relatively high and overseas buyers were reluctant to place orders, mostly staying on the sidelines. [Rebar]Rebar export offers steady, enquiry muted with small Hong Kong deals On 3 July rebar export offers were steady, with sentiment staying wait-and-see and enquiry generally muted. Traders reported small deals in Hong Kong recently, mostly need-based purchases, with overall trading lackluster

Since the start of the year, growth in the European solar market has slowed markedly. SMM expects total new solar installations in the European market to fall to around 68.5GW in 2026, a year on year decline of about 2 percent. Alongside softening demand, multiple EU level supply chain restriction policies continue to advance, including the Net Zero Industry Act (NZIA), the Industrial Accelerator Act (IAA), and restrictive measures targeting inverters from so called high risk countries.

[SMM Analysis: Surging Demand in H1 2026 Drives Industry Expansion, Anode Volume and Price Both Rise, Welcoming Recovery Opportunities] SMM July 3: In H1 2026, a surge in downstream demand drove steady improvement in the anode industry’s prosperity, significantly releasing overall market vitality.

Solus Advanced Materials announced on July 2 that the sales share of its high-end battery foils, including high-strength and high-elongation “SR” battery foil and medium-strength “MTS” battery foil, is expected to expand from 28% last year to around 40% this year.

Faraday Copper has signed a definitive agreement to acquire BHP’s San Manuel property in Arizona, adjacent to its Copper Creek project. Upon closing, BHP is expected to receive an approximately 30% fully diluted equity interest in Faraday, becoming a strategic shareholder. The combined assets could form one of the largest undeveloped copper districts in the United States.

SMM July 2 News: Fed Chairman Kevin Warsh stated on Wednesday that US inflation upside risks have clearly cooled over the past four weeks, easing market concerns about aggressive rate hikes; he also indicated that no further forward guidance would be released on subsequent interest rate policy, refusing to disclose whether the US Fed needs to consider a rate hike at its next meeting; the US dollar weakened, and precious metals rebounded. As of around 16:09 on July 2, COMEX gold dropped 0.11% to $4,077.9/ounce; SHFE gold main contract rose 1.53% to 890.66 yuan/g; COMEX silver dropped 1.1% to $59.845/ounce; SHFE silver main contract rose 1.91% to 14,650 yuan/kg; silver T+D rose 2.95% to 14,551 yuan/kg. In the precious metals stock market, as of the close on July 2, the precious metals sector rose 4.21%, with individual stocks: Zhaojin Gold and Chifeng Gold hit their daily limit up, while Shanjin International, Xiaocheng Technology, Zhongjin Gold, and Western Gold led the gains. News [Warsh: Inflation Eases Over Past Four Weeks, AI Is Reshaping Economy, Forward Guidance Loses Necessity] On July 1, at the ECB's annual central bank forum in Sintra, Portugal, Warsh again clearly stated that the US Fed would not provide forward guidance on the future interest rate path , hoping that policymakers can engage in thorough discussions based on the latest data at each meeting, rather than previewing the policy direction to the market in advance. He said that US inflation risks had eased over the past four weeks, and the supply expansion brought by AI could profoundly change how the economy operates, with the US at the center of this transformation, but whether AI ultimately leads to inflation or deflation should be judged by the central bank based on data. Warsh said the US Fed is “charting a new path” and will no longer hint at the direction of interest rates in advance as it did in the past. He said: “We will hold our next meeting in four weeks, and I hope we can have a real family-style debate then.” He reiterated that forward guidance is not the right policy in the current economic situation, and the US Fed will continue to base its decisions on the latest economic data in the future, rather than committing to a policy path in advance. This means that the US Fed will rely more on real-time economic data rather than sending policy signals to the market in advance. Spot Market Silver In the spot market: On July 2, the reference average factory price of SMM 1# silver in the morning was 14,558 yuan/kg, up 3.35% from the previous trading day. In the spot market, overall offers remained firm early in the month, but transaction follow-through was slightly weak, and consumption performance fell short of expectations. As silver prices rebounded slightly, downstream wait-and-see sentiment intensified. In Shanghai, morning offers were mainly at TD+5 to +15 yuan/kg. Some smelters quoted on the high side, but actual buying interest was weak, with most deals clustered around TD+10 yuan/kg. In other regions, low-priced cargoes had basically been cleared, while offers in Shenzhen were mostly around TD+5-10 yuan/kg. Today, the market quoted premiums for the SHFE most-traded contract 2608 at a discount of 30 to 20 yuan/kg. Overall, a slight cooling in rate-hike expectations provided some support for precious metals prices. At the start of the month, the spot direction remained unclear. Maintenance at copper plants last month caused a slight disruption on the supply side, and offers generally maintained a slight premium structure. Views From Various Parties Regarding the outlook for precious metals, some institutions’ views are as follows: On July 1, the World Gold Council released the “2026 Mid-Year Outlook for the Global Gold Market.” Looking ahead to H2, gold’s valuation framework indicated that gold will continue to serve as a barometer of the global macro economy, with three main possible scenarios. From current levels, gold prices were broadly in line with market consensus: the market expected the US Fed to raise rates at least once in 2026, most likely in October; the Bank of England, the Bank of Japan, and the European Central Bank were all set to tighten policy; and US Q2 inflation was expected to peak, near $3.9. If there were no major changes in the above environment, gold prices may trade around $4,100/oz within the year, with a fluctuation range of about ±5. If geopolitical or economic conditions deteriorate, or if interest-rate expectations shift, gold is expected to regain its upward momentum; however, only sufficiently strong signals of a global economic slowdown would be likely to drive a breakout to the upside. On the downside, a stronger US dollar, rate hikes exceeding expectations, and a rebound in market risk appetite were the main headwinds for gold prices; if gold prices remain below $4,000/oz, it may trigger further selling. However, based on historical performance, if gold prices fall by more than 10% from current levels, it may trigger “buy-the-dip” demand from long-term investors in multiple regions. State Street Investment Management said that, as the opportunity cost of holding gold and heightened volatility weighed on investor sentiment, bullish gold trades had been weak, and spot gold prices repeatedly tested the $4,000/oz support level. State Street believed that, although gold prices may be more volatile than in 2024-2025, the gold bull-cycle still has upside room, and the US Fed’s hawkish policy shift was expected not to change gold’s post-pandemic structural trend. State Street noted, “Since the US-Iran conflict, China’s retail gold imports have surged, and local premiums have risen in tandem, reflecting tightening fundamentals in China’s gold supply-demand balance.”State Street expects that over the next six to nine months gold prices could rise to the $4,750 to $5,500 per ounce range, with strong support in the $3,750 to $4,000 per ounce area. However, compared with the macro environment from January to February, the probability of gold prices reaching $5,500 to $6,250 per ounce is relatively small. (Zhitong Finance) State Street Investment Management strategists noted in a report that gold prices could reach $5,000 per ounce by early 2027, as the gold bull cycle remains persistent. They believe that as U.S. government debt rises, gold's role as a currency hedge is expected to be supported, while actual demand for gold remains strong. Global gold fund holdings (as a share of global mutual fund and exchange-traded fund assets) currently remain below State Street's target allocation of 3% to 10% for most portfolios. Moreover, they added that a hawkish pivot by the Fed should not alter gold’s structural post-pandemic trend. State Street expects base bullion prices to rise to $4,750 to $5,500 per ounce in the next six to nine months. (Jinshi Data APP) Analysts at Saxo Bank said, "The market has not yet attracted enough buying interest to establish that level as a support level." They also pointed out, "Even though energy prices have pulled back recently, investors still expect the Fed may further tighten monetary policy to combat an inflation rebound, and as a result, gold prices fell 14% in Q2, marking the worst quarterly performance since 2013." (Jinshi Data APP) CICC's latest research report pointed out that gold may have already overpriced rate hike expectations. Fed rate hikes are still not the base case, and the gold market may have overly priced in rate hike expectations, leaving room for a pullback this year. CICC's macro team believes that employment and consumption pressures, along with the expanding financing needs of the U.S. AI economy, may make it difficult for the Fed to materially turn hawkish, and monetary policy may be "hawkish in words but dovish in action." Based on the implied interest rate expectations model from gold prices, it is estimated that the current gold price around $4,000 per ounce has fully priced in three to four rate hikes, exceeding the rate hike expectations priced in by the interest rate futures market. Looking ahead, after the decline in oil prices is further reflected in U.S. short-term inflation data, the gold market's pricing of rate hike expectations may be corrected, and futures market short-term funds may have opportunities to cover short positions. (Jinshi Data APP) Li Xunlei, Deputy Director of the China Chief Economist Forum, pointed out that gold's long-term trend exhibits long bear markets and short bull markets. Since 1971, 30 years have been bear markets and 25 years have been bull markets, but each bull market has seen gains of over fivefold. A bull market typically lasts around 10 years. This gold bull run has now lasted nearly 10 years, with prices tripling during that time, so caution is warranted at this stage. (Jin10 Data App) Deutsche Bank analyst Michael Hsueh said the bank has cut its Q3 gold price forecast by over 20% to $4,300/oz and lowered its Q4 forecast by 17% to $4,800/oz. "Potential investors who would normally provide support are notably absent," he said, pointing to weak demand for exchange-traded funds and reduced buying appetite in some countries. (Jin10 Data App) Macquarie said profit-taking weighed on silver prices last month, and price action is once again driven by macro factors amid rising expectations for US Fed interest rate hikes. Similar to gold, silver prices are expected to move sideways for the rest of the year, then gradually decline into 2027, with inflationary pressures and the likelihood of further US Fed rate hikes limiting upside room. The higher inflation and bond yields, the greater the downward pressure. Silver, in particular, has been more susceptible to a pullback after outperforming gold, driven by bullish sentiment fueled by supply tightens, low inventory, and strong demand. Historically, silver pullbacks tend to be rapid. Macquarie expects silver to trade at $70/oz in Q4 this year and pull back to $65/oz by the end of 2027. (Jin10 Data APP) Recommended reads: