SMM August 14 At 11:30 today, the futures closing price was 108,250 yuan/mt, down 50 yuan/mt from the previous trading day. The average spot premium was -130 yuan/mt, up 15 yuan/mt from the previous trading day. Today, copper scrap prices remained unchanged from the previous trading day. The copper scrap sales sentiment index rose to 2.75, and the purchasing sentiment index fell to 1.82. The price difference between copper cathode and copper scrap was 4,561 yuan/mt, down 35 yuan/mt from the previous trading day. The price difference between copper cathode rod and secondary copper rod was 1,630 yuan/mt. According to the SMM survey, ahead of the weekend, copper prices pulled back. Secondary copper rod enterprises generally purchased as needed, while copper scrap suppliers, concerned about the risk of overseas copper prices pulling back over the weekend, preferred to focus on securing transactions during the day. As a result, secondary copper rod enterprises were able to purchase small quantities of low-priced material in the market.

SMM Morning Meeting Summary: Overnight, LME copper opened at $14,071/mt, dipped to a low of $14,066/mt in early trading, then saw its price center drift higher to touch $14,151.5/mt before closing at $14,135.5/mt, up 0.18%. Trading volume reached 20,000 lots, with open interest at 266,000 lots, up 2,423 lots from the previous trading day, reflecting an increase in long positions. Overnight, the most-traded SHFE copper 2609 contract opened at 107,930 yuan/mt, initially rose to 107,990 yuan/mt, then saw its price center move straight down to touch a low of 107,660 yuan/mt, and subsequently swung wildly before closing at 107,790 yuan/mt, down 0.03%. Trading volume reached 28,000 lots, with open interest at 206,000 lots, down 3,254 lots from the previous trading day, reflecting long liquidation.

[SMM Analysis]Currently, domestic magnesium prices in China remain range-bound at low levels with significantly narrowed fluctuations. Combined with industry professionals taking summer holidays and a quiet market news front, overall trading sentiment remains subdued. As the market enters the critical August window, magnesium prices are approaching a new turning point, where supply-demand dynamics, regional supply disparities, and cost support will jointly dictate the market's trajectory.

[SMM Magnesium Market Analysis: Consolidating at Lows and Awaiting a Turning Point, Clear Pattern of Both Supply and Demand Growth in August] Currently, China's magnesium prices remain in a low-level, narrow sideways consolidation trend, with market price fluctuations narrowing markedly. With industry participants on summer vacation and the market news environment quieting down, overall trading activity is sluggish. As the market enters the critical August window, magnesium prices are about to see a new turning point in their trend. The supply-demand structure, regional supply differences, and cost support will jointly dictate the subsequent market direction.

SMM August 13 At 11:30 today, the futures closing price was 108,300 yuan/mt, down 380 yuan/mt from the previous trading day. The average spot premium was 145 yuan/mt, down 140 yuan/mt from the previous trading day. Today, copper scrap prices remained unchanged day-on-day. The copper scrap sales sentiment index was flat at 2.712, and the purchase sentiment index was flat at 1.83. The price difference between copper cathode and copper scrap was 4,596 yuan/mt, down 281 yuan/mt day-on-day. The price difference between copper cathode rod and secondary copper rod was 1,670 yuan/mt. According to the SMM survey, the front-month futures contract neared delivery, and the price spread between futures contracts widened to 800 yuan/mt. Although scrap utilization enterprises shifted their pricing to the September contract, given the clear downtrend in forward contracts, their purchase willingness was mediocre. Meanwhile, suppliers' offers for copper scrap were unchanged from yesterday, and overall market transactions were mediocre.

[SMM Magnesium Survey: Element One Accelerates Magnesium Extraction from Olivine and Natural Hydrogen Project Development] Canada's Element One disclosed its six-month plan, under which it will build a demonstration plant in the US to extract magnesium from olivine and collaborate on an electrochemical process to produce magnesium products. It has also established a presence in natural hydrogen deposits and mastered extraction technology. The enterprise plans to list in the US to raise funds. The US and Canada have listed magnesium among critical minerals. The magnesium market has significant growth potential, natural hydrogen extraction costs are extremely low, and the company will seek policy subsidies to advance project implementation.

Construction steel social inventory: According to an SMM survey, total construction steel social inventory posted a slight build this period. As of August 13, 2026, SMM construction steel social inventory stood at 5.7557 million mt, up 50,000 mt WoW, an increase of 0.88%. During the survey period, Typhoon Dolphin struck, bringing heavy rainfall to some regions. Outdoor projects experienced severe waterlogging and construction progress was hindered. Compounded by transportation disruptions, end-use procurement demand declined, and inventory continued to build. Regional social inventory: Inventory performance across regions remained divergent. In east China, overall inventory shifted from decline to increase, mainly because typhoon-related heavy rainfall significantly constrained outdoor construction work and slowed the pace of end-use procurement. In northeast China, new maintenance at an individual blast furnace steel mill reduced supply, driving inventory from increase to decline. Inventory in southwest China also destocked slightly, mainly because the futures market improved somewhat during the survey period, market sentiment recovered in phases, and buying interest strengthened slightly. In addition, some steel mills in the region reduced production and overall material arrivals declined slightly; combined, these factors shifted inventory from increase to decline. Inventory performance in other regions was basically normal.

SMM Morning Meeting Minutes: Overnight, LME copper opened at $14,230/mt, drifted higher early in the session to touch a high of $14,262/mt, then the copper price center shifted straight down, dipping to $14,096.5/mt near the end of the session, and finally closed at $14,109.5/mt, down 0.31%. Trading volume reached 16,900 lots, while open interest reached 263,000 lots, up 1,892 lots from the previous trading day, reflecting an increase in short positions. Overnight, the most-traded SHFE copper 2609 contract opened at 108,610 yuan/mt, immediately touched a high of 109,730 yuan/mt early in the session, then the copper price center drifted lower, dipping to 107,730 yuan/mt near the end of the session, and finally closed at 107,780 yuan/mt, down 0.36%. Trading volume reached 34,000 lots, while open interest reached 212,000 lots, down 2,364 lots from the previous trading day, reflecting a decrease in long positions.

SMM August 12 At 11:30 today, the futures closing price was 108,680 yuan/mt, up 60 yuan/mt from the previous trading day. The average spot premiums were -5 yuan/mt, down 65 yuan/mt from the previous trading day. Today, the copper scrap price rose 100 yuan/mt from the previous trading day. The copper scrap sales sentiment index fell to 2.72, and the purchasing sentiment index fell to 1.83. The price difference between copper cathode and copper scrap was 5,116 yuan/mt, down 118 yuan/mt from the previous trading day. The price difference between copper cathode rod and secondary copper rod was 2,000 yuan/mt. According to the SMM survey, tax-included supply became increasingly tight. According to feedback from copper scrap traders, the invoice tax rate for copper scrap has reached 12%. The increase in invoice costs has forced more and more scrap utilization enterprises to lower the copper scrap price. Therefore, the price difference between copper cathode and copper scrap has been widening recently, with the rising invoice cost being one of the main reasons.

[SMM Analysis]Raw Material Constraints Combined with Weakening Marginal Demand Kept the Operating Rate of Secondary Aluminum Producers at a Low Level in July