June Price Review: In June, the monthly average price of GO silicon steel continued its previous rebound trend, with the price center continuing to rise. Despite relatively high supply pressure, the earlier trend of price bottom repair persisted, and the monthly average spot price steadily rose, reflecting that the market held good expectations for a market recovery. However, the oversupply pattern capped the upside room, and the price uptrend was relatively mild without any sharp surge. Fundamental Analysis: In July, GO silicon steel production is expected to stay high. In terms of production by variety, HIB and CGO output will remain stable, with high-grade HIB still accounting for the vast majority of production, while CGO output will hold steady within a narrow range, and the product mix will not undergo significant adjustments. Compared with historical production schedules, the July 2026 production schedule will continue the high-level range, with overall supply releases stable, and total GO silicon steel supply will remain relatively ample. Sustained high output has also become one of the core factors capping the upside room for GO silicon steel prices this round and keeping the supply-demand balance loose. In May, GO silicon steel consumption driven by new grid installations was at a relatively low level for the year. In terms of structure, thermal power and solar power remained the main consumption sources, with wind and hydropower demand providing supplementation, and nuclear power’s share staying low. Compared with the consumption structure of non-oriented silicon steel, thermal power and solar together accounted for 60%, making the demand structure characteristics on the power supply side clear. In May, the pace of new terminal installations slowed down, transformer enterprise order growth was limited, and direct demand for GO silicon steel was released slowly, coupled with sustained high production at steel mills earlier, supply-side pressure was hard to digest, which weighed on silicon steel prices, making it difficult to rely on grid installations for strong demand boost in the short term. July Price Outlook: Looking ahead to July 2026, on the supply side, China's GO silicon steel supply is expected to be basically stable. Mainstream steel mills’ production lines will operate stably with no concentrated maintenance plans, and the overall production load will remain stable. Meanwhile, mainstream steel mills such as Baowu will raise the base price of grain-oriented products by 300 yuan/mt in their July pricing policies. Coupled with production profits maintaining a reasonable range, overall production enthusiasm will be good, and high-grade resources will be steadily released. Demand side, favorable market support continues, with overall demand performing robustly. China’s “15th Five-Year Plan” UHV projects continue to start construction in a concentrated manner, with the construction pace steadily advancing. Demand for transformers supporting new energy grid connections is robust. At the same time, energy efficiency upgrades for home appliances and NEVs are gradually being implemented, keeping demand for high-efficiency motor retrofits high. Moreover, overseas power grid upgrade projects are advancing, and procurement demand for high-grade GO silicon steel remains stable. However, India’s launch of anti-dumping against China’s GO silicon steel may cause some resources to flow back into the domestic market, weighing on price increases. Cost side, with expectations of further shrinking steel mill profits and normalizing production restrictions driven by local environmental protection, hot metal output is expected to continue to decline. However, the off-season impact on the market is expanding, and the average HRC price in July is expected to decline further MoM from June, with the decline narrowing. Overall, SMM expects that GO silicon steel prices will present a consolidation pattern in July 2026.

June Price Review: The monthly average price of non-oriented silicon steel exhibited a bottoming-out decline in June. On the supply-demand front, the market shifted from a slight balance to a narrow undersupply, with fundamentals continuing to improve marginally. The oversupply that previously weighed on the market gradually eased, providing price support. Spot prices performed stronger than expected, edging down only slightly. As a transitional month shifting from off-season to peak season, the supply-demand pattern improved in June. Fundamental Analysis: China's production schedule for non-oriented silicon steel continued to decline in July. Comparing with the same period in previous years, the scheduled production in July 2026 was lower than that of July 2025. Analyzing by grade, the proportion of NEV grades in the July production schedule rebounded to 15%, high grades accounted for 19%, while the proportion of low and mid-end grades pulled back to 66%. Steel mills continued to adjust their product mix, with the scheduled production of conventional low and mid-end grades shrinking accordingly. While total scheduled production continued to contract, supply-side pressure persisted. Maintaining original production levels for NEV and high-grade resources while significantly reducing low and mid-end grades optimized the supply structure to some extent, supporting market resilience. Downstream demand for non-oriented silicon steel showed structural divergence in May. In the home appliance sector, total silicon steel consumption pulled back MoM, with air conditioners remaining the core demand driver. Demand from the automotive sector was strong, with silicon steel consumption climbing to a high level for the period in May. Specifically, passenger NEVs provided the largest support for automotive silicon steel demand. Overall, traditional demand from home appliances weakened marginally, while NEV demand continued to strengthen. The demand center shifted toward the automotive sector, generating structural benefits for high-grade and NEV-grade non-oriented silicon steel. July Price Outlook: Supply side, China's planned production schedule for non-oriented silicon steel continued to decrease in July 2026, with reductions primarily focused on low and mid-end grades. On one hand, the off-season impact became more pronounced, downstream demand was soft, and purchasing interest declined, curbing production activity. On the other hand, industry leaders like Baowu and Shougang kept base prices unchanged in July, prioritizing price stability, but bearish sentiment persisted, making prices more likely to fall than rise. Most producers were loss-making and cut production autonomously. Demand side, in the home appliance sector, enterprises slowed their production pace, with orders falling MoM. The 618 shopping festival provided no significant order stimulus. Affected by low demand, high inventory, and high costs, some enterprises cut their production schedules ahead of schedule, and the implementation of new energy efficiency standards for some appliance products led to model upgrades that restricted production. In the automotive sector, automakers generally maintained normal production paces, with some increasing production schedules this month to meet mid-year targets. However, the sales promotions of the 618 festival and policies yielded limited boosting effects, and sales pressure persisted. Breaking it down, NEVs remained the main sales driver this month, orders for internal combustion engine vehicles showed no significant improvement, and exports were mainly directed to markets such as Russia, South America, and Southeast Asia, with the industry's full-year export volume expected to reach 12 million units. Cost side, with steel mill profits continuing to shrink and expectations of normalized local environmental protection-driven production restrictions, hot metal production is expected to continue to pull back. But as the off-season impact expands, the average hot-rolled coil price in July is expected to decline further MoM from June, though the extent of the decline will narrow. In summary, SMM expects that prices for low and mid-end non-oriented silicon steel will drift lower overall in July 2026, with some room for price reductions.

Grain-Oriented Silicon Steel Price Movements Shanghai B23R085 grade: 12,200-12,200 yuan/mt Wuhan 23RK085 grade: 11,700-11,700 yuan/mt This week, China’s grain-oriented silicon steel market remained stable overall, with no notable price fluctuations. Mainstream quotations in the spot market were steady. Steel mills showed strong willingness to hold prices firm. For August, the base price for GO silicon steel was raised by 50 yuan/mt, with no significant rise or fall. Supply-demand conditions were generally stable. Steel mills maintained a steady production pace, resource supply was orderly, and market circulating inventory remained within reasonable range. Downstream end-users such as transformer enterprises purchased as needed, with just-in-time procurement dominating. The overall transaction pace was moderate. Market trading sentiment was cautious and rational. Traders mostly sold at stable prices, taking a wait-and-see stance, and price concessions or adjustments were rare. Looking at market fundamentals, bullish and bearish factors are currently balanced. The cost side provides bottom support, while the demand side shows no significant boost or weakening signs. Overall, the GO silicon steel market is expected to continue its stable pattern next week, with prices likely to remain steady. Transactions will mostly be just-in-time procurement against a wait-and-see stance, with no clear upward or downward trend for now. Data source statement: Data other than publicly available information is based on public information, market communication, and SMM’s internal database models, processed by SMM. It is for reference only and does not constitute decision-making advice. Note: This article is original content of this official account. For any needs regarding reproduction, whitelisting, or cooperation, please contact us. Without permission, no one may reproduce, modify, use, sell, transfer, display, translate, compile, disseminate, or otherwise disclose the above content to any third party or authorize any third party to use it. Once discovered, SMM will pursue legal liability for infringement, including but not limited to requiring the assumption of contractual breach liability, restitution of unjust enrichment, and compensation for direct and indirect economic losses.

According to SMM data, this week’s hot-rolled coil production was 3.1131 million mt, with output continuing to pull back due to maintenance and production cuts. On the inventory side, demand weakened in the off-season, while extreme weather such as typhoons and high temperatures also weighed on demand. As of July 16, China’s total hot-rolled coil inventory stood at 5.5346 million mt, up 30,000 mt WoW, an increase of 0.54%, officially marking the inflection point for inventory buildup. Looking ahead, given relatively concentrated maintenance among some steel mills from mid to late July, hot-rolled coil production is likely to continue fluctuating at low levels from mid-to-late July to mid-August, showing a pattern of declining first and then increasing. On the inventory side, with sluggish demand release and resource circulation in the off-season, inventories are expected to build up over the next four weeks. From late July to mid-August, total hot-rolled coil inventory is expected to accumulate by around 300,000-400,000 mt, compared with a buildup of about 200,000-250,000 mt in the same period last year. Overall, the supply-demand imbalance for hot-rolled coil will gradually intensify over the next four weeks, weakening price support. Attention should be paid to expectations for hot metal output to bottom out and rebound, and whether demand will weaken further. Hot-rolled coil prices are expected to consolidate within the 3,260-3,350 range by the end of July, with upside and downside space yet to open up.

[SMM Analysis: VC Supply-Demand Tight Balance to Persist in Short Term; HSC 60,000 mt Project Adjustment May Reshape Industry's Long-Term Competitive Landscape] On July 11, 2026, HSC New Energy Materials issued an announcement, making a major adjustment to the construction plan for the 60,000 mt vinylene carbonate (VC) project in Yunmeng, Hubei: The original phased construction plan for 30,000 mt in Phase I and 30,000 mt in Phase II was canceled and changed to a one-time overall construction of 60,000 mt VC capacity. The total project investment remains unchanged at 1.6 billion yuan, and the construction site, investment entity, and overall time to reach full production remain unchanged.

June Price Review: The monthly average spot price of grain-oriented silicon steel continued its earlier rebound in June, with the price center rising further. Despite relatively high supply pressure, the earlier price bottom recovery trend persisted, as the monthly average spot price rose steadily, reflecting good market expectations for price recovery. However, the oversupply pattern suppressed upside room, and the price rise pace was relatively mild, without a significant surge. Fundamental Analysis: In July, grain-oriented silicon steel production stayed high. By product type, HIB and CGO output remained stable. High-grade HIB still accounted for the vast majority of production, while CGO output remained in a small stable range, with no significant adjustments in the product mix. Compared with historical production schedules, the July 2026 schedule remained at a high level, with overall supply release being stable, and total supply of grain-oriented silicon steel staying relatively sufficient. The persistently high output was also one of the core factors capping the upside room for this round of grain-oriented silicon steel price rises and maintaining a loose supply-demand balance. In May, the consumption of grain-oriented silicon steel driven by new power grid installations was at a relatively low level for the year. By structure, thermal power and solar energy remained the main consumption sources, with wind power and hydropower providing supplementary demand, while nuclear power's share stayed low. Compared with the consumption structure of non-oriented silicon steel, thermal and solar power together accounted for 60%, clearly defining the demand structure on the power supply side. In May, the pace of new end-user installations slowed down, transformer company order growth was limited, and direct demand for grain-oriented silicon steel was released slowly. Coupled with continuous high production at steel mills, supply-side pressure was difficult to digest, which suppressed silicon steel prices. In the short term, it is hard to rely on power grid installations to provide a strong demand boost. July Price Outlook: Looking ahead to July 2026, supply side, China's grain-oriented silicon steel supply is expected to remain basically stable. Production lines at major domestic steel mills are operating stably, with no centralized maintenance plans, and the overall production load is maintaining stability. Meanwhile, mainstream steel mills like Baowu have raised the base price of grain-oriented silicon steel by 300 yuan/mt in their July product pricing policy. Combined with production profits remaining within a reasonable range, overall production enthusiasm is good, and high-grade resources are being steadily released. Demand side, market positives are continuing to provide support, and overall demand performance is robust. China's "15th Five-Year Plan" ultra-high voltage projects are being intensively started, construction pace is steadily advancing, and demand for transformers supporting new energy grid connection is strong. Additionally, home appliance and NEV energy efficiency upgrades are gradually being implemented, demand for high-efficiency motor retrofits is staying high, and overseas power grid upgrade projects are advancing continuously, with stable procurement demand for high-grade grain-oriented silicon steel. However, India has initiated anti-dumping against China's grain-oriented silicon steel, which may cause some resources to flow back to the domestic market, capping price increases. Cost side, driven by expectations of continued shrinking steel mill profits and normalized local environmental protection-driven production restrictions, hot metal output is expected to decline further; however, with the off-season impact widening, the average price of hot-rolled coil in July is expected to continue to decline MoM from June, with the decline narrowing. Overall, SMM expects the grain-oriented silicon steel price in July 2026 to show a consolidation pattern. Data Source Statement: (The data in this report, other than publicly available information, are derived from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, National Bureau of Statistics (NBS) data, customs import and export data, and various data released by trade associations and institutions), market communication, and SMM's internal database model. They are obtained through comprehensive analysis and reasonable inference by the research team, and are for reference only, not constituting any decision-making advice. SMM reserves the final interpretation rights of this statement and the right to adjust and modify the content of this statement according to actual circumstances.

The year 2026 marks the first year of the 15th Five-Year Plan. Against the backdrop of intensifying global macro volatility and China’s deepening high-quality development, the zinc industry is undergoing profound changes: tightness on the ore side and the release of smelting capacity are creating structural tension, diverging inventories in and outside China reflect the complex dynamics of supply-demand rebalancing, and technological innovation is emerging as a key driving force to resolve conflicts and reshape the landscape. Key areas under the 15th Five-Year Plan, such as new energy and new-type infrastructure, are injecting fresh momentum into traditional zinc consumption, while green, low-carbon development and the circular economy are also accelerating the restructuring of industrial logic, driven by technological innovation. With the joint support of upstream and downstream enterprises across the zinc industry chain, industry associations, and all relevant parties, the 2026 SMM Zinc Industry Conference and the 8th Hot-Dip Galvanizing Industry Development and Technological Innovation Forum, the 14th Zinc Salt, Zinc Oxide and Zinc Secondary Resources Development Forum, and the Cast Zinc Alloy Development Forum is about to be held on August 6–8 in Qingdao, Shandong. The conference, themed “Gathering Zinc Momentum, Building the Zinc Industry, Embarking on a New Journey,” will be driven by dual engines of macro perspectives and fundamental analysis, closely following the main theme of high-quality development under the 15th Five-Year Plan, and focusing on four major dimensions: macro policies, supply-demand pattern, global trade, and technological innovation. It will leverage technological breakthroughs to drive cost reduction and efficiency improvement, address market fluctuations through collaborative innovation, and jointly draw a new blueprint for the high-quality and sustainable development of the zinc industry. Shanghai Eagle Metal Materials Co., Ltd. will make a grand appearance at this event to discuss industry development trends with peers and jointly propel the zinc industry to new heights. Click to sign up now, witness and participate in this momentous and far-reaching industry gathering, and together create a brilliant new chapter! Eagle Metal—Eagle Metal is one of the world’s major commodity traders. Established in 2000 and headquartered in Shanghai, China, the group has branches in Singapore, Hong Kong, Thailand and other locations. The group primarily engages in services and operations along the non-ferrous metals industry chain. Its business scope covers copper, aluminum, lead, zinc, tin, nickel, silver, platinum and palladium, copper concentrates, lead concentrates, zinc concentrates, and more. Business activities include domestic trade in multiple commodities and international import and export, with operations spanning mainland China, Singapore, Hong Kong, London, Chicago, Thailand, South America, Africa and other regions. In addition to its core business, the group provides upstream and downstream clients with integrated trade, warehouse financing, logistics and transportation, and other risk management services. Adhering to the business philosophy of “model innovation, win-win cooperation,” the company has established enduring and in-depth partnerships with numerous large domestic and international smelters, mines, trading enterprises, and well-known banks. It has also repeatedly received honors such as “Contract-honoring and Trustworthy Unit,” “Excellent Partner,” “Best Partner,” and “Most Valuable Customer” awarded by national and Shanghai municipal authorities. Eagle Metal – In the course of its development, Eagle Metal has upheld the corporate philosophy of "virtue carries all things, and constant dripping wears away the stone"; it has remained true to its original aspiration and persisted in innovation, fueling growth through innovation and advancing development through growth. Keeping pace with the global economy, it actively participates in competition both in and outside China. Through outstanding quality services, it enhances client value and corporate value, and with firm steps, it contributes all its strength to the advancement of the non-ferrous metal industry! Contact Information Zinc Business Contact: Miao Hanying 15021533905 Zinc Business Contact: Shi Yang 18004502057 Long press or scan the QR code to register now 2026 SMM Zinc Conference

SMM, July 17: LME copper prices moved sideways overall this week. LME copper opened at $13,459/mt on Monday, edged up afterward, but pulled back toward the end of the week. Overall fluctuations were relatively limited. As copper prices showed no clear directional shift, quotation ratios for ex-China copper scrap remained stable this week without significant adjustments. Mainstream quotations for bare bright copper stayed within the 98.5%-99% range, quotations for No.1 copper mostly hovered around 98%, while those for No.2 copper fluctuated within the 96%-98.5% range, influenced by differences in scrap quality and gold and silver content. In the market, although copper prices edged up this week, ex-China suppliers still held prices firm. Meanwhile, the impact of the traditional consumption off-season persisted, with downstream orders performing modestly, buyers showing limited purchasing motivation, and trading sentiment remaining somewhat sluggish. Overall, the current ex-China copper scrap market continued its supply-demand weakness: available supplies were tight on the supply side, while the demand side remained cautious due to the off-season and high copper prices, leading to low overall market activity. Looking ahead to next week, the potential for significant demand-side improvement in the short term is limited due to the traditional off-season. Meanwhile, the tight supply pattern has not eased notably, so the supply-demand weakness is expected to persist. Regarding ratios, given the tight supply of ex-China copper scrap and some rigid demand support downstream, quotation ratios are not expected to see a significant pullback and may stay high in the short term.

Price Review for June: In June, the monthly average price of non-oriented silicon steel trended downward, probing the bottom. Supply-demand side, the market shifted from a slight balance to a mild undersupply, with fundamentals improving marginally. The oversupply that had been weighing on prices gradually eased, providing support for prices. Spot prices performed stronger than expected, edging down only slightly. As a transitional month between the off-season and peak season, June saw the supply-demand pattern improve. Fundamentals Analysis: The July production schedule for domestic non-oriented silicon steel is planned to decline further. Compared with the same period in previous years, the July 2026 schedule was lower than that of July 2025. In terms of grade structure, the proportion of NEV grades in the July schedule is expected to rebound to 15%, high grades at 19%, and low and mid-end grades pull back to 66%. Steel mills continue to adjust their product mix, leading to corresponding reductions in low-end conventional grades. Overall scheduled production volume continues to shrink, but supply-side pressure persists. Production levels for NEV and high-grade materials are maintained, while low and mid-end grades are significantly reduced, optimizing the supply structure to some extent and supporting price resilience. Downstream demand for non-oriented silicon steel in May showed structural divergence. Total silicon steel consumption in the home appliance sector edged down MoM, with air conditioners remaining the core demand driver. The automobile sector demand was strong, with silicon steel consumption climbing to a high for the period. Within this, passenger NEVs were the biggest support for non-oriented silicon steel demand in the auto sector. Overall, traditional home appliance demand weakened marginally, while NEV demand continued to strengthen, gradually shifting the demand center toward the auto track. This structurally benefited high-grade and NEV-grade non-oriented silicon steel. July Price Outlook: Looking ahead to July 2026, on the supply side, China's non-oriented silicon steel production schedule is planned to decline further, primarily in low and mid-end grades. On one hand, the off-season impact is becoming more pronounced: downstream demand is weak, purchasing enthusiasm has fallen, weighing on production willingness. On the other hand, leading producers such as Baowu and Shougang kept their July base prices unchanged, prioritizing price stability. However, market sentiment is bearish and prices are more likely to fall than rise. Most producers are operating at a loss and implementing voluntary production cuts. On the demand side, in the home appliance industry, producers slowed their production pace, with orders declining MoM. The "618" shopping festival did not significantly stimulate orders. Affected by low demand, high inventory, and high costs, some enterprises lowered their production schedules ahead of time. Additionally, new energy efficiency standards for certain home appliances were introduced, limiting production due to product iteration. In the automobile industry, automakers mostly maintained normal production pace, with some increasing output this month to meet mid-year targets. However, sales pressure remained due to moderate effects of the "618" promotions and policy support. Breaking it down, NEVs remained the main sales driver this month, while orders for internal combustion engine vehicles did not improve significantly. Exports were mainly directed to Russia, South America, and Southeast Asia. Total annual export volume for the industry is expected to reach 12 million units. Cost side, with steel mill profits continuing to shrink and local environmental protection-driven production restrictions becoming normalized, hot metal production is expected to decline further. However, as the impact of the off-season expands, the July average hot-rolled coil price is expected to decline further MoM from June, with the decrease narrowing. Overall, SMM expects that mid- and low-grade non-oriented silicon steel prices in July 2026 will drift lower as a whole, with room for price declines. Data Source Statement: (All data in this report, other than publicly available information, are based on publicly available information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, NBS data, customs import and export data, and various data released by major associations and institutions), market communication, and SMM's internal database models. The research team has conducted comprehensive analysis and made reasonable inferences, which 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 modify the content of the statement in accordance with actual conditions.

Pb50 domestic TCs (weekly) were unchanged at 150 yuan/mt Pb this week, while Pb60 import TCs (weekly) were unchanged at -$170/dmt. During the week, TCs were largely stable. Some enterprises indicated that although some domestic small mines had suspended production or cut output, the overall impact was relatively limited. Meanwhile, some domestic smelters were undergoing minor maintenance, which had not yet altered the supply-demand pattern. In the imported lead concentrate market, a Mexican lead concentrate deal was previously concluded at -$300/dmt, with valuable metals such as silver, copper, and zinc. Other mainstream transaction prices remained unchanged. The market was still awaiting actual subsequent imports of lead concentrates from Australia and the Middle East. For the payable silver indicator in lead concentrates, although precious metal prices consolidated at lows, the payable silver indicator did not show any significant change or negotiation. Considering by-product profits, most smelters were still willing to purchase silver-lead ore or other lead-rich ores, and the payable silver indicator in lead concentrates remained largely stable overall.