[SMM Analysis] In H1 2026, global energy storage battery cell shipments reached 486 GWh. The power generation and grid side and industrial and commercial ESS remained the main demand sources. Top-tier players maintained their lead, while some enterprises saw significant improvements in market rankings. Meanwhile, shipments of large battery cells above 500Ah reached approximately 42 GWh, with product upsizing beginning to shift from introduction and verification to volume delivery. However, production ramp-up, manufacturing yield, quality control, and order coordination remain key constraints on volume growth. Looking ahead to H2, the energy storage battery cell market is expected to sustain high growth. The anticipated introduction of consumption tax and cancellation of export tax rebates may pull forward some demand and delivery pace. Industry competition will further shift toward product reliability, manufacturing stability, and sustained delivery capability.

Recently, the Central China headquarters of Advanced Micro-Fabrication Equipment Inc. China officially settled in Optics Valley, and it is expected to be officially put into operation early next year. Advanced Micro-Fabrication Equipment (Wuhan) Co., Ltd. completed registration on July 28, with a registered capital of 50 million yuan. Focusing on the R&D of core semiconductor equipment, the project plans to build the Central China headquarters and R&D center, conduct R&D on core semiconductor equipment such as thin film, etching, and epitaxy, and serve key clients in Wuhan and the broader Central China region.

SMM learned that a data center in South China has deployed 32 units of RTX 5090 server rental resources, with a monthly rental price of 11,500 yuan per unit, a lease term starting from six months, supporting individual unit rental, and an additional 1,000 yuan per month per unit when paired with a RoCE networking solution. This batch of resources has been on the market for three days. SMM believes that the split-rental model lowers the entry barrier for buyers; a half-year short-term contract offers high flexibility, making it suitable for short-term flexible demand; however, splitting rentals and using short-term contracts may increase the per-unit cost, and lessees need to comprehensively compare whole-unit rental plans.

SMM, August 6: In Guangdong, spot #1 copper cathode against the front-month contract: high-quality copper was quoted at a premium of 90 yuan/mt, down 20 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 10 yuan/mt, down 20 yuan/mt; and SX-EW copper was quoted 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, while the average price of SX-EW copper was 107,820 yuan/mt, up 930 yuan/mt. Spot market: Guangdong inventory increased again, mainly due to higher arrivals and weaker consumption. Copper prices continued to rise and hit a recent high, so downstream enterprises purchased cautiously, and suppliers had to keep lowering prices to sell, but transactions remained sluggish. In Guangdong, the electrolytic copper purchase sentiment index was 2.30, down 0.1 from the previous trading day, and the shipment sentiment index was 2.83, up 0.02 (historical data can be accessed via the database query). Overall, with copper prices hitting a recent high, downstream buyers were unwilling to purchase, and suppliers had to cut prices to sell, resulting in lackluster trading.

Today, spot #1 copper cathode in North China against the front-month contract was quoted at a discount of 100-30 yuan/mt, with an average discount of 65 yuan/mt, a decrease of 60 yuan/mt from the previous trading day; the average transaction price was 107,915 yuan/mt, an increase of 825 yuan/mt from the previous trading day;

[SMM Aluminum Alloy Express] SMM data showed that China’s social inventory of cast aluminum alloy ingots fell to 24,000 mt, marking ten consecutive weeks of destocking, with a cumulative decline of 38,900 mt. However, the pace of destocking slowed significantly this week, recording a mere WoW drop of 200 mt, as warehouse withdrawal momentum further weakened. The market remains in the high-temperature off-season, with end-use demand staying weak. Meanwhile, the continued strengthening of futures drove a widening of the futures premium, and spread traders have started to make purchases on dips.

Recently, Kunshan Hongfutai Environmental Protection Technology Co., Ltd. signed a web and APP advertising cooperation agreement with SMM. This partnership aims to expand practical cooperation and promote industry exchange, thereby deepening collaboration, expanding markets, and achieving mutual benefits. Going forward, SMM will leverage its platform advantages as a leading service provider in the non-ferrous metals industry to offer one-stop online marketing solutions through comprehensive digital displays for Kunshan Hongfutai Environmental Protection Technology Co., Ltd. , fostering a virtuous cycle between production and the market, and realizing shared value. Kunshan Hongfutai Environmental Protection Technology Co., Ltd. was established in 1999, obtained the Gold Waste Recycling Permit from the Nanjing Branch of the People's Bank of China in 2001, the Hazardous Waste Operation Permit from the Jiangsu Provincial Department of Environmental Protection in 2004, and the Special Industry Directory Management Certificate from the Kunshan Public Security Bureau in 2024. Located in Kunshan High-tech Industrial Park, Jiangsu Province, the company is adjacent to Shanghai 60 km to the east and Suzhou 30 km to the west, enjoying convenient transportation. The company currently has 98 employees, including five national-level engineers and 10 related technical personnel. It has established school-enterprise cooperation in technology and talent exchange with Soochow University and Jiangsu University of Technology. The company's main business: Disposal, utilization, recycling, processing, and production involving precious metals (gold, silver, platinum, palladium, rhodium, osmium, ruthenium, iridium) in waste materials, waste targets, wipes, pastes, silver contacts, off-cuts, catalysts, waste liquids, adsorption materials, photosensitive materials, etc. Processing trade with supplied materials is available. The company is equipped with advanced incineration, purification, processing, and wastewater and exhaust gas treatment facilities. The company has established a technology center and has been granted over 20 patents. Since 2010, it has been recognized as a "Jiangsu Province High-tech Enterprise". The company has obtained certifications for quality, environment, occupational safety, and UL management systems, and passes annual audits. In 2005 and 2007, it was awarded "Kunshan Circular Economy Demonstration Enterprise" and "Suzhou Circular Economy Pilot Enterprise"; in 2012 and 2013, it was consecutively recognized as a "Clean Production Unit", "Excellent Outward Supporting Unit", and "Safety Production Standardization Unit" in Kunshan; in 2015, it obtained the "Kunshan Science and Technology R&D Center" and "Jiangsu Province Private Technology Enterprise" titles; and in March 2024, it was honored as one of the "Top Ten Green and Safe Enterprises" in Kunshan High-tech Zone. The company's production equipment, "Short-Process Clean and Efficient Separation and Refining Technology and Equipment for Platinum, Palladium, and Rhodium," won the First Prize of the China Nonferrous Metals Industry Science and Technology Award. In 2011, the company established the "Hongfutai Care Fund" under the Kunshan Charity Foundation, contributing its modest share of love and organizing employees to participate in public welfare activities. Vision: To become a leading benchmark enterprise in precious metal recycling in China Mission: To recycle precious metal resources, protect the environment, and create a clean and fresh life Core Values: Integrity and win-win, customer first, diligence and accountability, result-oriented, innovation and efficiency Let us dedicate ourselves to environmental protection and make our homeland more comfortable, harmonious, and beautiful! Welcome for field trips and business cooperation! Contact Information Mr. Guo 18915750888 Mr. Zhan 18915750846 Tel: 0512-57786918-801 Fax: 0512-57799189-0 Email: Email: hft_kefu@126.com Website: http://www.chinahft.com.cn Address: No. 89 Changyang Branch Road, Kunshan High-tech Zone SMM Contact Cao Juanjuan caojuanjuan@ly10000.com 19521491689

In July, the sodium-ion battery materials market sustained strong momentum, with both cathode and anode segments showing clear signs of “robust demand, strained capacity.” Orders from downstream battery cell manufacturers continued to surge, particularly as the penetration rate of the polyanion route in energy storage applications accelerated, pushing upstream material enterprises to near-full-capacity operations.

[SMM Cast Aluminum Alloy Morning Comment: Contract Hits New Stage High, Aluminum Alloy Market Consolidates at Highs, Drifting Higher] Overnight, the aluminum alloy 2610 contract opened at 23,435 yuan/mt, shot up to 23,540 yuan/mt, hitting a new stage high, then pulled back to a low of 23,380 yuan/mt, and closed at 23,450 yuan/mt, up 20 yuan, or 0.09%, from the settlement price.

The negative China-related measures taken by the US Federal Communications Commission and the US Department of Homeland Security seriously violate the important consensus reached by the two heads of state and seriously undermine China’s legitimate rights and interests. On August 5, a spokesperson for the Ministry of Commerce stated that China has no choice but to respond with necessary countermeasures, including: strengthening export controls on drones and their key parts and technologies to the US, and suspending the China Compulsory Certification