According to data released by CAAM in August, in July 2026, China's hydrogen fuel cell vehicle production was only 67 units, a sharp YoY decline of 70.7%; sales were 138 units, down 51.4% YoY. From January to July, cumulative hydrogen vehicle production was 600 units and sales were 800 units, down 61.5% and 50.3% YoY respectively, with the overall market in a policy vacuum adjustment period after the conclusion of the first batch of demonstration city clusters. This week, China's alkaline electrolyzer market capacity remained at 43.77 GW, while the PEM electrolyzer market remained at 2.7 GW. This week, the 7.5 MW containerized alkaline hydrogen production equipment for Romania, manufactured by Peric Hydrogen Technologies Co., Ltd. (Handan) under the 718th Research Institute of China State Shipbuilding Corporation, has completed all production and acceptance and has been officially shipped. I. Project-Related Updates Ulanqab-Beijing-Tianjin-Hebei Hydrogen Pipeline (Third Change, Increased to 1,200 km): The National Development and Reform Commission (NDRC) and the National Energy Administration officially issued the "Oil and Natural Gas Development '15th Five-Year Plan'", which for the first time proposed "integration of oil, gas, hydrogen, ammonia, methanol, and storage and transportation systems", and clearly published the core parameters of the Ulanqab-Beijing-Tianjin-Hebei hydrogen pipeline in the key project table of the '15th Five-Year' oil and gas pipelines: total length of 1,200 km, pipe diameter of 457/610 mm, and designed transmission capacity of 500,000 mt/year. This is the third length change of the pipeline that can be traced — from the initial over 400 km, to 1,145 km, then to 1,132 km, and now finally set at 1,200 km. The project has been elevated to a national key project during the '15th Five-Year Plan', and is expected to accelerate into the substantive construction phase, becoming the starting point for building a national hydrogen storage and transportation backbone network. China Chemical Engineering Donghua Company (Shenneng Etuoke Banner Wind and Solar Power Hydrogen Production Integrated Green Ammonia Project): The hydrogen production engineering of the Shenneng Etuoke Banner Wind and Solar Power Hydrogen Production Integrated Green Ammonia Project, contracted by Donghua Company, reached an important period, with all 48 electrolyzers achieving stable full production and the entire process succeeding in one start-up, achieving "zero accidents and zero casualties". The 48 electrolyzers from five suppliers operated stably and synergistically on the same platform, verifying the full-cycle EPC management capability for hydrogen production from fluctuating power supply, marking that the hydrogen production station has comprehensive and stable hydrogen production capacity. Shanghai Electric (Taonan Phase II Project): The Taonan Green Hydrogen Coupled with Biomass Green Alcohol and Oil Integrated Project was officially launched. The project plans to produce 200,000 mt of green methanol and 10,000 mt of sustainable aviation fuel (SAF) annually, adopting Shanghai Electric's new-generation green fuel system solution, pioneering an off-grid green direct-connection mode, relying on "wind + solar + storage + biomass" multi-source green electricity supply, and equipped with key core technologies such as electrolytic water hydrogen production, pure-oxygen pressurized fluidized bed biomass gasification 3.0, CO₂-rich syngas methanol synthesis, and Fischer-Tropsch synthesis for SAF. The green methanol previously produced in the Taonan Phase I project has completed two large-scale bunkering operations at Shanghai Yangshan Port, setting a global record for the largest single green methanol bunkering volume. Zhensheng Biotechnology (Inner Mongolia) Co., Ltd.: The biomass green hydrogen and bio-based materials industrialisation project of Zhensheng Biotechnology (Inner Mongolia) Co., Ltd. has been filed. The project is located in Dalate Banner Economic Development Zone, Ordos, with a total investment of 450 million yuan. It plans to start construction in July 2026 and be completed in July 2028. The project uses agricultural and forestry residues and other biomass as raw materials, adopts a slurry process to produce biomass activated carbon powder, and then produces green hydrogen through entrained-flow gasification and other processes. After completion, it will produce 65,000 mt of green hydrogen, 300,000 mt of biomass alloy slurry, 30,000 mt of new humic acid organic mineral matrix, and 36,000 mt of guaiacol humic acid multi-nutrient medicinal fertilizer per year. Goldwind Science&Technology (Hinggan League Wind Power Hydrogen Production Phase III Project): The Hinggan League Ecological Environment Bureau has approved the "Environmental Impact Report for Hinggan League Goldwind Science&Technology Wind Power Hydrogen Production (Phase III) Project". Located in Hinggan League Economic and Technological Development Zone, Phase III does not occupy additional land. It will construct six electrolytic hydrogen production workshops, one hydrogen compression workshop, and supporting auxiliary facilities. The core hydrogen production equipment consists of 80 sets of 2,000 Nm³/h electrolysers, with a total hydrogen production capacity of 160,000 Nm³/h. Liaoyuan Tianying Hydrogen Energy Technology Co., Ltd. (Liaoyuan Tianying Green Hydrogen Refuelling Station Has Been Granted Filing): The project is located in Liaoyuan High-tech Industrial Development Zone, Jilin Province, with a total investment of 16.831 million yuan. It plans to start construction in September 2026 and be completed in April 2027. Main construction contents: one set of 45 MPa hydrogen storage bottle group (hydrogen storage: 259 kg), one set of 20 MPa hydrogen storage bottle group (hydrogen storage: 538 kg), one 1.6 MPa hydrogen buffer tank (14 kg), with a total hydrogen storage capacity of approximately 1,195 kg; configuration of two 45 MPa hydrogen compressors, two 20 MPa hydrogen compressors, and two 35 MPa hydrogen refuelling dispensers. The project is indirectly 100% owned by China Tianying Inc. Inner Mongolia Huadian (Damao Banner 1 GW Wind and Solar Power Hydrogen Production Integrated Project): Two sections of the Huadian Damao Banner 1 GW Wind and Solar Power Hydrogen Production Integrated Project have published bid result announcements, with a total amount of approximately 1.7 billion yuan. The first bid winner for Section 1 (PC construction general contracting) is China Huadian Engineering Co., Ltd., with a bid price of approximately 501 million yuan; the first bid winner for Section 2 (383 MW wind and solar power PC + hydrogen production station + 220 kV step-down substation) is China Energy Engineering Group Tianjin Electric Power Construction Co., Ltd., with a bid price of approximately 1.205 billion yuan. Baotou Haoyu New Energy Co., Ltd. (Baotou Haoyu New Energy Co., Ltd. Airport Road (Branch Station) Oil-Gas-Electricity-Hydrogen Integrated Energy Supply Station Project Change Has Been Granted Filing): The project is located in Donghe District, Baotou, with a total investment of 40 million yuan and a total land area of approximately 3,000 m². It will build one oil-gas-electricity-hydrogen integrated energy supply station, equipped with CNG refuelling facilities (daily gas supply volume: 10,000 m³), petrol refuelling facilities, eight fast charging piles, and hydrogen refuelling facilities (daily refuelling capacity: 500 kg). The project will be implemented in two phases. Shanghai Electric, Together With SIPG and France’s CMA CGM (Green Methanol Bunkering at Yangshan Port) : Shanghai Electric, together with SIPG and France’s CMA CGM Group, successfully completed batch green methanol bunkering at Shanghai Yangshan Port, with a total bunkering volume of 8,000 mt, setting a new global record for the highest single green methanol bunkering volume. The green methanol bunkered this time was mainly supplied by Shanghai Electric’s Taonan Green Methanol Project, marking the first large-scale verification since the “Green Fuel Transport Corridor” jointly built by Shanghai, Jilin, and Liaoning (the “north methanol to south transport” link of production in Taonan, Jilin—transshipment at Dalian Port—bunkering at Shanghai Port) was put into operation. II. Policy Review 1. The Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission (NDRC) issued the Notice on Agreeing to Carry Out Pilot Work on Comprehensive Hydrogen Energy Applications in Five City Clusters Including Beijing-Tianjin-Hebei, in principle approving five city clusters—Beijing-Tianjin-Hebei, the Greater Bay Area, Northeast (including eastern Inner Mongolia)—Yangtze River Delta, Xinjiang—Chengdu-Chongqing Twin-City Economic Circle, and the Yellow River “Ji”-shaped Bend—central China—to carry out pilot work on comprehensive hydrogen energy applications, with a pilot period of four years. The notice requires accelerating the implementation of four lists covering breakthroughs in hydrogen energy technology and equipment, hydrogen energy projects in the industrial sector, promotion of fuel cell vehicles, and construction of hydrogen refueling stations, and emphasizes preventing local protectionism, “small but comprehensive” approaches, herd behavior, and low-level redundant construction. Compared with the first batch of four city-cluster demonstrations in 2020, the center of this round of policy has shifted from “single demonstrations” toward “comprehensive applications.” 2. The National Development and Reform Commission (NDRC) and the National Energy Administration issued the “15th Five-Year” Plan for Oil and Natural Gas Development, which for the first time proposed “integrating oil and gas with hydrogen, ammonia, and methanol storage and transportation systems,” providing top-level design support for addressing storage and transportation bottlenecks in the hydrogen energy industry during the “15th Five-Year” period. The plan clearly states that it will “advance the construction of the Ulanqab—Beijing-Tianjin-Hebei hydrogen transmission pipeline,” and discloses in the key oil and gas pipeline project list for the “15th Five-Year” period that the pipeline will have a total length of 1,200 km, a diameter of 457/0.61 mm, and a designed transmission capacity of 500,000 mt/year. 3. The People’s Government of the Inner Mongolia Autonomous Region issued the Notice on Amending Certain Contents of Document No. 15 of the Inner Mongolia Government Office, deleting provisions in the 2022 Opinions on Promoting High-Quality Development of the Hydrogen Energy Industry such as electricity prices for production by hydrogen energy equipment manufacturing enterprises being benchmarked to electricity prices for strategic emerging industries, and the eastern region participating in market-based trading with a 100% new energy allocation. Hydrogen energy equipment manufacturing enterprises will no longer enjoy preferential electricity price policies and will revert to the market-based trading mechanism for ordinary large industrial electricity consumption. This move is seen as an important signal of Inner Mongolia's hydrogen energy industry shifting from a "policy incubation period" to "market-oriented competition", and will have a direct impact on the electricity costs and investment estimates of existing and planned hydrogen equipment projects in the short term. 4. The People's Government of Banan District, Chongqing issued the "15th Five-Year Plan for Comprehensive Transportation Development of Banan District, Chongqing (2026–2030)", proposing to build new hydrogen refueling stations along the Yuzhu Expressway, jointly create a "hydrogen corridor" cluster for the Western Land-Sea New Corridor; promote the use of green electricity and green electricity certificates in logistics hubs such as Chongqing Highway Logistics Base, explore the "PV+ESS+charging piles" model and green electricity hydrogen production; update and promote 400 pure electric and hydrogen fuel cell heavy-duty trucks; explore the application of methanol, hydrogen fuel and other power vessels. 5. The Greater Khingan Mountains Prefecture Administrative Office issued the "Guiding Opinions on Promoting the Application of Methanol Vehicles in the Greater Khingan Mountains Prefecture (Draft for Comments)", proposing to accelerate the construction of vehicle methanol fuel refueling systems, support the construction of integrated comprehensive energy stations for charging, refueling, gas filling, hydrogen refueling, and methanol refueling; increase the promotion and application of methanol vehicles in taxi, ride-hailing and other fields; encourage government agencies at all levels to purchase methanol vehicles as official vehicles. 6. The Ecology and Environment Bureau of Hinggan League approved the "Environmental Impact Report of the Goldwind Science&Technology Wind Power Hydrogen Production (Phase III) Project in Hinggan League", agreeing to the construction of Goldwind's wind power hydrogen production phase III project with a capacity of 160,000 Nm³/h. 3. Enterprise Dynamics Dongfang Electric (Chengdu) Hydrogen Energy Technology Co., Ltd.: Dongfang Electric announced that its board of directors approved the proposal for Dongfang Hydrogen Energy to carry out Series B financing, with the company and Dongfang Boiler simultaneously increasing capital. The financing amount is no more than 1.17 billion yuan. The company and Dongfang Boiler, together with external investors, will increase capital synchronously, maintaining a total shareholding ratio of 52.95%. This is the second central state-owned enterprise hydrogen energy subsidiary to launch large-scale financing in China, following SPIC's Guohydrogen Technology (which completed a 4.5 billion yuan Series B financing in December 2022 with a post-investment valuation of 13 billion yuan). It is regarded by the industry as a major positive signal of accelerated capitalization of central SOE hydrogen energy platforms. Dongfang Hydrogen Energy has built a full-chain business system covering hydrogen production, storage, refueling, hydrogen power generation, and fuel cells. As of 2025, it had put over 1,300 fuel cell vehicles into operation in 17 provinces and cities. SinoHytec: On August 15, it released an H-share announcement stating that for the six months ended June 30, 2026, the expected loss decreased by about 35%–45% compared to the same period in 2025. The main reasons are: deepening supply chain collaborative management and accelerating inventory turnover led to a YoY decrease in sales costs; continuing to reduce costs and increase efficiency resulted in a YoY decrease in operating expenses; the reversal of bad debt provisions recognized in prior years increased YoY; and the decline in shareholding ratios in certain associates led to a decrease in share of losses. Sinopec Sales Co., Ltd.: Huzhou Nanxun Xinshi Energy Technology Co., Ltd. was established with a registered capital of 5 million yuan, covering the sales of station-use hydrogen refueling and storage facilities as well as new energy vehicle battery swapping facilities. Zhejiang Xunkai Energy Technology Group Co., Ltd. and Sinopec Sales Co., Ltd. hold 51% and 49% stakes, respectively. Previously, on April 14, Sinopec Sales had established the joint venture Shaxing Juneng Energy Co., Ltd. in Chongqing. Leveraging its network of over 30,000 gas stations across China, Sinopec is accelerating the transformation of traditional fuel stations into integrated "oil, hydrogen, electricity, and services" energy stations. Suzhou CPU Hydrogen Power Technology Co., Ltd.: The winning bid result of the Harbin Institute of Technology (Weihai) water electrolysis hydrogen production test prototype project was announced. Suzhou CPU Hydrogen Power won the bid at 1.02 million yuan, procuring one set of nuclear energy alkaline electrolysis water system prototype (covering a full suite of equipment including electrolyzer, power supply, gas-liquid separation, thermal management, and control). This will serve scientific research experiments related to nuclear-coupled electrolytic hydrogen production, with delivery required within 3 months after contract signing. Changzhou Xingran Technology Co., Ltd.: The winning bid result of the electrolyzer (PEM water electrolysis hydrogen production equipment) procurement project of Shaanxi Yanchang Petroleum Materials Group Xi'an Co., Ltd. was announced. Changzhou Xingran Technology won the bid at 1.7775 million yuan. CIMC Green Hydrogen: CIMC Green Hydrogen, together with H2Terminals and Bonney Energy, advances the implementation of Australia's hydrogen refueling network, deepening cross-border strategic hydrogen energy cooperation. China Marine Bunker (PetroChina) Co., Ltd.: China Marine Bunker signed an agreement with Jiaze New Energy to deepen cooperation in the green fuel industry; successfully completed the methanol bunkering operation for the first 325k VLOC vessel, opening a new track for methanol bunkering; and participated in the launch ceremony of Shanghai Electric's green hydrogen-coupled biomass green alcohol-oil integrated project. Solid-State Hydrogen Storage Goes Global (China Technology Export): China's solid-state hydrogen storage technology secured its first order in Southeast Asia, accelerating global export from technical verification to engineering implementation; Hydrosys hydrogen energy equipment moves from over 180 domestic stations to Oceania, ushering in a new chapter of hydrogen equipment going global. 4. Patent Applications 1. Sichuan Qingyan Energy Conservation Technology Co., Ltd., Shenzhen Hangneng Hydrogen-Alcohol Energy Innovation Research Institute, and Chengdu Ruilingke Information Technology Co., Ltd. (China): Published patent CN122561833A, "A Process Method for Hydrogen Production via Microwave-Induced Alcohol Reforming." Through microwave irradiation, metal oxide catalysts are activated to generate local high-temperature hot spots, combined with electromagnetic heating preheating, enabling alcohol reactants and water vapor to undergo steam reforming reaction in a microwave cavity reactor to produce hydrogen. This method achieves efficient hydrogen production from organic matter under mild conditions. 2. Guang dong Yuntao Hydrogen Energy Technology Co., Ltd. (China): Published patent CN122560794A, "An AI Control Method and System for Fuel Cell Tractor Based on Route Planning." By predicting the tractor's upcoming operating conditions and power demand through a predictive network, a fuel-lithium dual-energy characteristic model was established. Based on MPC predictive control, the optimal fuel cell power distribution ratio and expected hydrogen consumption rate were output, achieving dual-energy synergistic energy efficiency optimization. 3. Jiangsu Enfang Zhixiang Technology Co., Ltd. (China): Published patent CN122576250A, "An Air-Cooled Hydrogen Fuel Cell System." By utilizing the fan's wind pressure to convert reactive liquid water into water vapor, heat inside the stack was removed through wind speed and phase change principles. Water recycling was achieved via a hydrophilic humidification layer and siphon structure, resolving the conflict between heat dissipation and humidification in air-cooled stacks. 4. Sunshine Hydrogen Energy Technology Co., Ltd. (China): Granted patent CN224628684U, "Separation Device." By adopting a multi-stage wire mesh droplet capture and cyclone structure, the device adapted to gas-liquid separation conditions at different power levels under variable load hydrogen production, resulting in more thorough separation of hydrogen and water vapor. 5. Dalian Dichuang Hydrogen Energy Technology Co., Ltd. (China): Granted patent CN224647096U, "A High-Pressure Alkaline Electrolysis System." By arranging a horizontal electrolytic alkali balancing tank with a slider, the electrolytic alkali circulation loops on the hydrogen side and oxygen side were separated, preventing mutual mixing of hydrogen bubbles and oxygen bubbles while achieving pressure balance of the alkali on both sides.

Kamativi Mining Company (KMC) has told Zimbabwean lawmakers that individual mine economics and resource life must be factored into the country's lithium beneficiation policy, warning that processing mandates need to align with the geological realities of each operation. KMC Chief Operating Officer Turkey Liang made the comments before the Parliamentary Portfolio Committee on Mines and Mining Development during a fact-finding visit to the company's Kamativi site in Matabeleland North. Liang said KMC backs the government's drive to end unprocessed lithium exports but cautioned that mines vary in resource profile and may not all support large-scale downstream investment on the same timeline. Kamativi, a former tin mine that closed in 1994, was revived as a lithium operation. KMC's current mining plan carries a high stripping ratio and limited surface resources: open-pit reserves are estimated to support around five years of mining, while the broader lithium resource at current depths could sustain roughly 10 years of extraction before requiring a shift to underground mining. The company's resource estimate, updated May 2024, stands at 24.2 million tonnes grading 1.25% Li2O. Despite the constraints, KMC is proceeding with its US$200 million lithium sulphate project, converting spodumene concentrate into lithium sulphate at a planned capacity of 75,000 t/yr, with commissioning targeted for July 2027. The company is also pursuing further mineral recovery from its pegmatite resource beyond lithium, including projects still in development. Liang cited regulatory friction affecting the sulphate project's cash flow: a Zimbabwe Revenue Authority (ZIMRA) change to export documentation shifting from a single document covering up to 50 trucks to individual paperwork per truck created processing delays severe enough that KMC was running low on cash and considering production cuts in March. ZIMRA has since reverted to the 50-truck arrangement. SMM View: KMC's testimony highlights a structural tension in Zimbabwe's lithium beneficiation drive as the January 2027 concentrate export ban approaches mandatory local processing only creates durable value if feedstock life supports the capital cost of the plant. With Kamativi's open-pit mine life estimated at roughly five years against a 75,000 t/yr lithium sulphate facility targeting mid-2027 commissioning, the underlying resource base and the eventual pivot to underground mining will be a key variable in whether Zimbabwe's downstream lithium salts capacity delivers on its beneficiation targets. SMM will continue tracking Kamativi's sulphate project timeline alongside peer sulphate builds elsewhere in Zimbabwe's lithium sector.

Recently, the Qinghai Provincial Energy Administration launched a call for experts for its expert database in the energy sector, selecting candidates with professional competence and practical experience from relevant organizations to further strengthen energy decision-making consultation capabilities and enhance the professionalism of energy planning, policy research, and industry administration. The call covers coal, oil and gas, power, renewable energy, energy storage, hydrogen energy, energy conservation and carbon reduction, workplace safety, and intelligent technologies, and also includes related professional areas such as engineering design, consulting and evaluation, detection and certification, and cost estimation and auditing. Experts to be included in the database are divided into three categories: First, project review experts, who mainly participate in the review of materials such as project construction plans, technical renovation plans, funding application reports, and feasibility study reports in the energy sector, and provide professional support for project management, cost evaluation, and financial analysis. Second, technical consulting experts, who mainly provide technical advice for the routine administration of the energy industry, participate in work such as the formulation of industry standards, demonstration of technical routes, on-site verification, safety assessment, and energy efficiency evaluation, and also offer recommendations on the implementation of energy policies, execution of technical standards, and emergency response. Third, strategic research experts, who focus on the province’s energy development needs, participate in the preparation of energy development plans, research on industrial policies, demonstration of institutional and mechanism reforms, and assessment of market conditions, and provide intellectual support for industry research, policy design, data modeling and analysis, and capacity building. The notice specifies that applicants should support the leadership of the Communist Party of China, comply with national laws and regulations, and possess sound political integrity and professional ethics; be in good health; and, in principle, be no older than 65, with appropriate flexibility for academicians and experts receiving the State Council’s special government allowance. Applicants should also have no adverse records such as illegal or disciplinary violations or dishonesty, and must not be listed as judgment debtors subject to enforcement for dishonesty. In terms of professional competence, applicants must be familiar with relevant policies and regulations, technical standards, industry development conditions, and market operating rules in the energy sector, and have a high level of professional theoretical knowledge and extensive practical experience. In principle, applicants should hold a senior or above professional technical title, or possess an equivalent professional level; for frontline technical backbones and managers with outstanding performance and extensive practical experience, the relevant requirements may be appropriately relaxed. Expert candidates mainly come from research institutes, key laboratories, and new-type R&D institutions; enterprises in coal, oil and gas, power, new energy, energy storage, hydrogen energy, and equipment manufacturing; service institutions such as engineering design, consulting and evaluation, detection and certification, cost estimation and auditing, and safety evaluation; as well as industry associations, universities, industrial alliances, and other organizations. The call will be carried out through organizational recommendations. Eligible individuals must obtain review and approval from their organization’s human resources department or competent business department, complete the application materials and recommendation opinions as required, and be submitted collectively by the recommending organization. Application materials mainly include the expert application form, a recent color ID photo, a copy of the ID card, academic degree and diploma certificates, professional technical title or professional qualification certificates, and proof of major achievements over the past five years. Other materials that can demonstrate the applicant’s professional competence may be provided voluntarily. Experts included in the database will participate in work such as approval or filing evaluation of energy-sector projects, review of construction plans, review of funding applications, and completion acceptance, and will also undertake research and demonstration on energy development plans, special plans, industrial policies, and standards and specifications, as well as matters such as workplace safety inspections, credit evaluation, and data verification. In addition, experts may participate in activities such as power market analysis, policy interpretation, research projects, academic exchanges, professional training, and science popularization, and, in accordance with relevant provisions, enjoy rights including receiving service remuneration, voluntarily withdrawing from the expert database, and providing comments and suggestions on the management of the expert database.

SMM News on August 17: Weaker-than-expected US economic data led the market to lower expectations for US Fed interest rate hikes, with the US dollar index pulling back to around 99.5. Coupled with medium and long-term support from geopolitical safe-haven demand and central bank gold purchases, rising international gold and silver prices lifted China’s futures market, in turn boosting sentiment in the precious metals sector of A-shares. As of around 15:10 on August 17, COMEX gold rose 0.48% to $4,458.7/oz; the most-traded SHFE gold contract gained 1.05% to 955.72 yuan/g; COMEX silver climbed 1.47% to $66.065/oz; the most-traded SHFE silver contract increased 2.48% to 16,143 yuan/kg; and silver T+D rose 2.89% to 16,065 yuan/kg. In addition, the most-traded platinum futures contract surged 3.37% to 436 yuan/g, while the most-traded palladium contract advanced 2.03% to 318.95 yuan/g. Equities: As of the close on the 17th, the precious metals sector rose 3.33%. Among individual stocks, Hunan Silver jumped 6.63%, while Shandong Humon Smelting, Shandong Gold International, Zhongjin Gold, Xingye Silver&Tin, and Shengda Resources posted leading gains. Spot Market Silver On August 17, the morning ex-works reference average spot price for SMM 1# silver was 16,021 yuan/kg, up 3.21% from the previous trading day. In the spot market, higher silver prices suppressed downstream purchasing demand, and the market saw strong wait-and-see sentiment today. Against the backdrop of a widening spot-futures price spread, suppliers became more cautious in quoting, with transactions mainly driven by rigid demand from some acceptance needs, overall leaning toward parity. In Shanghai, early-session quotations were mainly at TD -5 to +10 yuan/kg, with insufficient purchasing momentum and transactions skewed toward the lower end. In Shenzhen, some national-standard cargoes clustered around a slight discount to parity. Today’s premiums quotations against the SHFE the most-traded contract 2610 were a discount of 70-50 yuan/kg. Overall, silver prices rebounded slightly today, but with the news flow lacking further upward momentum, prices are expected to move sideways in the short term. In the spot market, higher silver prices continued to curb follow-up demand, and downstream buyers were mostly on the sidelines at the start of the week. Platinum On August 17, the average spot price of platinum was 431 yuan/g, up 2.62% from the previous trading day. Mainstream quotations for platinum were a discount of 3-2 yuan/g against the PT2610 contract. Driven by today’s rise in futures, suppliers slightly widened their discount quotations versus the previous trading day, but downstream consumption remained weak, and purchase willingness was limited after the futures rally, with procurement mainly consisting of small lots for rigid demand. Suppliers faced obstacles in selling high-priced cargoes, and the bargaining room in actual deals widened somewhat. Warehouse warrant premiums were relatively high, and mainstream quotations mostly hovered around a discount of about 1.5 yuan/g to the most-traded contract. Overall, platinum spot market trading remained sluggish today. Views From Various Parties On the outlook for precious metals, some institutions were relatively optimistic while others were more cautious. The views of several institutions are as follows: Everbright Futures believed that multiple US inflation readings cooled and consumption weakened, prompting the market to lower its expectations for a September rate hike. Gold prices last week generally shot up but then met resistance and pulled back. In the short term, upside resistance for gold was evident; however, stagflation, geopolitical risks, and central bank gold purchases provided support, leaving limited room for a sharp pullback. On the US Fed, divisions within the US Fed remained apparent: Richmond Fed President Barkin supported keeping rates unchanged, while Cleveland Fed President Hammack reiterated a rate-hike stance. The market was also watching for comments from Wosh; his speech at the global central bank annual meeting at month-end in August was expected to be exceptionally important and could provide some guidance for the September policy meeting. On the geopolitical front, the contest and negotiations over the Strait of Hormuz were still ongoing. After the US July nonfarm payrolls unexpectedly weakened, CPI and PPI both came in mild, further confirming a marginal easing of inflation pressures. The market’s extreme pricing for a September rate hike pulled back markedly from earlier highs, which also drove a notable rebound in gold prices. However, as the data were released and the probability of a rate hike declined, the market again became “confused” about the outlook, and profit-taking pushed gold prices somewhat lower. In addition, reports said the Japanese government supported the Bank of Japan’s recent rate hike, and the next window for a hike was likely to fall in September or October, triggering a brief bout of liquidity-panic sentiment in the market. In the short term, gold faced substantial resistance in the upper range and needed time to digest it, along with further catalysts from news flow. Nevertheless, it could be expected that deepening US stagflation, persistent geopolitical risks, and continued increases in holdings by China’s central bank would all provide structural support for gold, keeping the probability of a sharp pullback relatively low. (Zhitong Finance) CICC Wealth Futures: The US-Iran issue remained in stalemate. Iran stated that the US must not enter the Persian Gulf, the Gulf of Oman, or the Strait of Hormuz in the future; however, Trump announced that the Strait of Hormuz was about to become US territory, and the impact of geopolitical factors had yet to be eliminated. In addition, attention should be paid to the US dollar: the US dollar remained weak recently, with the fundamental reason being that US missteps on the military, geopolitical, and financial fronts reduced the US dollar’s safe-haven value. Coupled with midterm election pressure, expectations of passive fiscal tightening, and the trend of “UK gilts-ization of US Treasuries,” the US dollar could weaken further in the medium term, and the year’s high may have already been seen. Overall, gold still had supportive factors in the macro backdrop, and gold prices were expected to retain short-term upward momentum after the pullback. CITIC Securities stated that base metals this week saw some profit-taking at their respective key resistance levels, and base-metals equities also experienced profit-taking. However, given that commodity prices still had significant drivers for further gains, it recommended being more patient with base metals. Gold prices were temporarily under pressure at the $4,500 threshold, but both employment and inflation data reduced the likelihood of rate hikes ahead of the midterm elections, and gold prices remained in a favorable window. A rare high premium emerged on the spot copper side, highlighting an extremely tight inventory situation; copper prices were on the verge of breaking to a new all-time high, and equities—priced at only a little over 10x PE based on a 100,000-yuan copper price—provided a sufficient margin of safety, making the allocation value proposition stand out. (Zhitong Finance) In the latest report released last Thursday, UBS strategists said that falling real interest rates would drive investors back into the gold market, while a weaker US dollar and strong central-bank demand for gold purchases would jointly push gold prices toward the $5,000/oz threshold in H1 next year. (Zhitong Finance) Citadel Securities strategist Scott Rubner, for the first time since 2026, recommended that investors allocate to structured gold positions, saying the current precious-metals market was forming “one of the most attractive upside opportunities in months” . Rubner believed that gold and silver were simultaneously benefiting from multiple tailwinds, including a shift in US Fed policy expectations, continued central-bank gold buying, quant funds still positioned as bears, the options market releasing bullish signals, and retail funds previously drawn by the AI trading wave potentially flowing back in. In his view, multiple factors were creating a rare resonance, and the precious-metals market could enter a new uptrend phase. StoneX senior analyst Matt Simpson said that improving Middle East peace prospects lowered market inflation expectations, pushing gold prices further higher from a consolidation range that had lasted for weeks and sat above $4,000. The US Department of Labor was set to release the non-farm payrolls report tonight. Simpson added: “Regardless of the non-farm payrolls data, $4,000 has proven to be a solid support level—I suspect bulls are waiting for a pullback to seize the opportunity and drive gold prices in a rebound to $4,600. The non-farm payrolls data may bring some fluctuations in the short term, but price action has already shown the direction; gold seems to want to rise.” World Gold Council: In July, positive momentum factors offset negative risk factors, leaving gold prices flat in July. Looking ahead, a second wave of high inflation similar to that in the late 1970s cannot be ruled out. But that in itself does not mean gold will surge, as it will depend on real interest rates, the US dollar, growth expectations, demand from Asian investors, and how central banks respond. Kelvin Wong, Senior Market Analyst at OANDA, said: “The link between gold and oil prices still exists, because oil prices have a huge impact on inflationary pressures in the global economy. If we can see a clear roadmap for further de-escalation of the (Middle East) situation, gold prices may continue to rise.” (Jinshi Data APP) A CITIC Securities research report said that since the beginning of this year, gold prices shot up and then fell rapidly, but we believe gold is still in a major bull market, driven by the accelerating expansion of the US fiscal deficit, hard-to-bridge geopolitical rifts amid de-globalization, and continued support from ongoing gold purchases by global central banks. Therefore, we believe this round of decline in gold prices is only a temporary adjustment within a bull market. The current pullback has approached historical extremes, and around $4,000/oz is highly likely to be the bottom area for this cycle. Looking ahead, the impact of the Strait of Hormuz situation on gold prices is expected to shift from suppression to support, US Fed monetary policy may be more optimistic than market expectations, and together with a surge in US military spending pushing up the deficit, gold prices are expected to return to an upward channel within the year. Everbright Futures, looking ahead to August, said the short-term trend in gold prices depends on how the US-Iran situation evolves. If the conflict continues or spillovers expand, market sentiment may turn weaker again, and under expectations of liquidity risks, gold prices may continue to underperform; but if there is a substantive breakthrough in negotiations, gold prices may stabilize in the short term and see a rebound-driven repair. At that time, if financial markets both inside and outside China recover in tandem, it can be further confirmed. However, it can be expected that with support from rigid central bank buying and allocation demand, even if another pullback occurs, the downside room will be relatively limited. In addition, the Jackson Hole global central bank symposium at the end of August may see Walsh outline a medium-term policy framework; before that, the US CPI data on the 12th will be a key validation indicator. Overall, gold may show a solid bottom and be in a sentiment-repair phase, warranting a cautiously optimistic view. The core risks are that the US-Iran conflict again drives oil prices to climb above $90/oz, US inflation data rebounds far above expectations, and the probability of a September rate hike continues to rise, which may continue to suppress market sentiment; however, judging from the performance of financial markets outside China and oil prices, neither strongly supports a full-scale escalation of the US-Iran conflict. A Reuters poll showed that after gold prices pulled back sharply from record highs in January, analysts cut their gold price forecasts for the first time since the end of 2023, but most still expect central bank buying and concerns about fiscal sustainability to provide support. In a survey of 29 analysts and traders conducted over the past three weeks, the median forecast for 2026 gold prices was $4,509 per ounce. This was below $4,916 three months earlier and marked the first downward revision in 11 quarters. The average forecast price for 2027 was $4,610, versus $5,100 in the previous survey. Gold prices hit a record high of $5,595 per ounce in January, but in Q2 they saw a sharp pull back as the Iran war intensified energy inflation and pushed up expectations for rate hikes, posting the worst quarterly performance since 2013. Since the outbreak of the war, spot gold has fallen by about 22%. (Jinshi Data APP) ING analysts Warren Patterson and Ewa Manthey noted that gold prices rose on Monday because a sharp drop in oil prices eased inflation concerns and weighed on the US dollar and US Treasury yield. The steep fall in oil prices on Monday alleviated inflation worries and the outlook for further monetary tightening. The move followed a pause in US-Iran hostilities. Lower oil prices also pressured the US dollar and US Treasury yield, improving the outlook for non-interest-bearing assets ahead of this week’s US Fed meeting. The market is now focused on the US Fed and the upcoming release of US inflation data for further guidance on the interest-rate outlook. If yield remains subdued, gold prices should continue to find support around current levels. However, any hawkish surprise from the US Fed could limit further upside room in the near term. Commerzbank: Cut its year-end gold price forecast to $4,500 per troy ounce. Platinum prices are expected to reach $2,000 per troy ounce by the end of the year, versus a previous forecast of $2,100. Citi said its base case showed that, despite Q3 historically being a seasonal peak for stockpiling, India’s gold imports would remain subdued in Q3. This was due to ample scrap supply, cautious consumer sentiment, and a discount in local prices, which curbed demand for fresh imports. However, Citi still set its 0–3 month short-term gold target at $4,500. The bank said this target assumed easing tensions in the Strait of Hormuz and a less hawkish turn by the US Fed; in the near term, many risks could still drive gold prices to retest lower levels, including major re-escalation, AI-driven de-risking, and a persistently hawkish stance from the US Fed. Analysts at ANZ Research said in a report that physical gold demand for the metal and buying by central banks were supporting the gold market. The analysts added that while gold prices faced near-term headwinds from expectations of US Fed tightening and a firm US dollar, after months of exchange-traded fund outflows, gold investment positioning looked very thin, suggesting that room for further declines could be limited. A high-interest-rate environment typically weighs on non-yielding assets such as gold. (Zhitong Finance) Goldman Sachs said that, despite pressure from expectations of a more hawkish US Fed, central bank buying is expected to provide a floor for gold. Demand remains strong; the bank estimated that central banks purchased 81 mt of gold in May, with the three-month average monthly purchases at 67 mt—well above the pre-2022 average of 17 mt. Goldman analysts said, “We believe the trend of central banks increasing gold holdings will continue for many years, as they hedge geopolitical and financial risks through reserve diversification.” The bank forecast that average monthly purchases in this year and next will be 50 mt and 40 mt, respectively. (Jinshi Data APP) Soojin Kim, an analyst at Mitsubishi UFJ Financial Group, said, “Recent price action suggests the market is placing greater emphasis on the possibility that US interest rates will stay high for longer, rather than gold’s traditional safe-haven demand. This leaves gold vulnerable to pressure unless geopolitical risks further translate into a broad deterioration in financial market sentiment.” (Jinshi Data APP) Asset manager Fidelity International said it plans to rebuild its gold position, which it reduced earlier this year, at an appropriate time in the future, believing that gold’s long-term drivers remain strong. Ian Samson, a multi-asset portfolio manager at Fidelity International, said recently, “We plan to increase our gold holdings again; it’s just a question of timing.” He said he cut his gold allocation to neutral from January to February this year, when a multi-year bull market in gold abruptly ended. Samson expects the gold market to re-enter a bull market at some point in 2027. The rationale for a return to a bull market would only be undermined if “governments return to fiscal discipline and central banks are truly committed to pushing inflation back down,” “but I don’t think we’re in that world right now.” Samson also said that continued gold purchases by central banks (a key driver of the previous gold bull market) will continue to support gold prices. Recommended Reading:

[SMM Daily Review: Bullish Factors Digested, Silver Prices Pulled Back; Spot Held at Parity] SMM, August 14 – Gold purchases by the Bank of Korea and a lower-than-expected PPI boosted silver prices, but hawkish comments from US Fed officials capped gains, and silver prices pulled back mildly. Trading in the spot market was sluggish, with the spot-futures price spread narrowing and quotes concentrated near parity.

[SMM Aluminum Express News] The future of Rio Tinto’s Bell Bay aluminum smelter in Tasmania remains uncertain as negotiations over a new 10-year electricity agreement with Hydro Tasmania face an estimated A$60 million annual pricing gap. Tasmania Energy Minister Nick Duigan said the difference is between the power price Rio Tinto says it needs to keep the smelter viable and the lowest price Hydro Tasmania can commercially offer. The current power agreement expires on 31 December 2026, putting more than 550 direct jobs at risk if a new arrangement cannot be reached. The Tasmanian government is calling for federal support to help bridge the gap, while uncertainty has emerged over Bell Bay’s access to Australia’s A$2 billion Green Aluminium Production Credit scheme. The federal government had previously indicated Bell Bay would be eligible, but recent comments suggested the credits are primarily intended for smelters transitioning from fossil-fuel power to renewables, whereas Bell Bay already operates on hydroelectricity. Hydro Tasmania said it has pushed its offer as low as commercially sustainable and indicated government support may be required to close the remaining gap.

[SMM Express] More than six weeks after Zimbabwe's Mines Minister Dr Polite Kambamura promised "very soon" to roll out targeted policy interventions for the chrome sector — including a toll-processing model allowing small-scale miners to process ore for a fee rather than sell it to foreign-owned smelters — chrome producers say they are still waiting. Speaking during a technical media tour of Prospect Lithium Zimbabwe in Goromonzi on 17 July, Kambamura highlighted lithium beneficiation as a policy success story, pointing to Zimbabwe's first locally produced lithium sulphate, exported from the Arcadia plant in April, alongside further lithium processing facilities under construction at Kamativi and Sinomine Bikita. Chrome, by contrast, came up in the same discussion as the sector where that model has yet to take hold for smaller producers. Shelton Lucas, business development director at Naivo Mining — which operates chrome, antimony and tungsten projects in Mashava, Ngezi and Kadoma, and who also chairs the Chrome Miners Association of Zimbabwe — said his company remains unable to capture the value of its own raw chrome. "For our raw chrome, we are now forced to sell to local Chinese smelters where they underpay us," Lucas said, adding that unlike antimony, where he has the resources to build a value-addition plant, the cost of chrome processing infrastructure remains prohibitive. His comments echo concerns he raised in early June, when he described local buying prices for chrome ore — then around US$70 per tonne, against international CIF China values several times higher — as reflecting a "predatory price regime." At the time, Kambamura pointed to an existing MMCZ fund intended to capacitate small-scale chrome miners and said he would soon announce policy interventions, including toll processing through government-linked facilities such as ZimAlloys. Zimbabwe's broader mining outlook remains strong: the Chamber of Mines projects 10% sector growth for 2026, with export earnings potentially reaching US$7.5–11 billion, and the Ministry has separately outlined plans for regional beneficiation hubs that would let chrome-producing areas specialize in ferrochrome and chromium alloys. But the gap between that national-level ambition and the lived experience of small-scale chrome producers, still selling raw ore to a limited pool of local smelter buyers more than six weeks after relief was first promised, illustrates a recurring theme in Zimbabwe's beneficiation drive: policy announcements and on-the-ground implementation are not always moving at the same pace, even as the government's own flagship example — lithium — demonstrates what a fully realized beneficiation pathway can look like.

On the macro front , this week copper prices drifted higher overall. Negotiations between the U.S., Iran, and Oman over the Strait of Hormuz made progress, and market expectations for a near-term reopening of the strait heightened. International oil prices pulled back accordingly, easing inflation worries from energy prices. Meanwhile, the U.S. July ADP employment figure came in below market expectations, and the cooling labour market also dampened market expectations for multiple US Fed rate hikes this year. Although some Fed officials still sent hawkish signals and the strait reopening arrangements are not yet fully clear, their pressure on copper prices was relatively limited. Additionally, expectations that the U.S. may impose tariffs on imported copper continued to attract copper cathode flows to the U.S., driving inventory accumulation at COMEX. Meanwhile, LME inventories and deliverable stocks kept declining, creating a clear regional mismatch of exchange inventories. U.S. tariff premiums and tightening supply outside the U.S. combined to push LME copper prices higher. As of 11:00 Beijing time on August 7, 2026, LME copper hit a low of $13,769/mt this week before shooting up to a high of $14,369/mt, up $600/mt from the low, a gain of about 4.36%. The most-traded SHFE copper contract hit a low of 105,140 yuan/mt, then rebounded to 108,470 yuan/mt, up 3,330 yuan/mt from the low, a gain of about 3.17%. Fundamentals side , as of August 6, SMM copper inventories across major regions in China increased by 7,300 mt WoW to 119,200 mt, extending the accumulation trend. On the supply side, arrivals of both domestic copper and imported copper cathode increased recently, with imported materials such as Peruvian large plates, ESOX, and Myanmar copper gradually circulating in the market. Combined with higher copper prices boosting suppliers’ willingness to sell, spot supply that was previously tight gradually eased. On the demand side, end-user orders were generally weak amid the traditional consumption off-season, and high copper prices further suppressed downstream purchase willingness. Market transactions were sluggish, and purchases remained mainly need-based. However, hi-quality copper and registered SX-EW copper supplies were relatively limited, and transactions improved for some low-priced cargoes, still providing some support to spot premiums. Looking ahead to next week , the market will continue to watch whether the U.S.-Iran deal materializes, the Strait of Hormuz reopening arrangements, and Fed officials’ comments on the future rate path. If expectations for the strait's reopening persist, oil prices and inflation worries will cool further, and together with a slowing U.S. labour market, macro sentiment may still support copper prices. Should negotiations falter again, geopolitical risks and energy price fluctuations could increase volatility in the futures market. In addition, watch out for a resurgence of resource protectionist policies outside China, which could further disrupt global copper flows. Fundamentals side, increasing domestic and imported copper supply will continue to ease domestic spot supply tightness, but high copper prices, inventory accumulation, and the off-season will limit downstream restocking, and SHFE copper spot premiums still face downward pressure. Next week, copper prices are expected to consolidate at highs with an upward bias, with LME copper likely to outperform SHFE copper, but SHFE copper’s upside room will still be constrained by weak domestic demand.

[SMM Daily Review: Silver Prices Retreat from Highs Ahead of Non-Farm Payrolls Data, Market Awaits Data Guidance] SMM, August 7 – Hawkish comments and job market resilience weighed on silver prices, with the market focused on tonight's non-farm payrolls data. Spot cargo transactions remained weak, the spot-futures price spread was in a stalemate, and traders showed low willingness to offer.

SMM August 7 News: Metal Markets: Overnight, base metals on the domestic market broadly rose. SHFE copper edged up 0.1%. SHFE aluminum gained 0.38%. SHFE lead edged up 0.1%. SHFE zinc rose 1.11%, while SHFE tin fell 0.98%. SHFE nickel dropped 1.22%. Additionally, the most-traded alumina futures contract edged up 0.09%, while the most-traded foundry aluminum contract fell 0.52%. Overnight, ferrous metals all rose. Stainless steel edged up, iron ore gained 0.35%, and rebar rose 0.17%. Hot-rolled coil (HRC) increased 0.59%. For coking coal and coke: the most-traded coking coal futures contract rose 1.54%, and the most-traded coke contract gained 2.48%. Overnight, on the overseas market, LME base metals mostly fell. LME copper shot up to an intraday high of $14,369.5/mt, a level not seen since January 29, before eventually closing with a 0.4% decline. LME aluminum gained 0.65%. LME lead fell 0.29%. LME zinc rose 0.64%. LME tin dropped 1.43%. LME nickel fell 2.45%. Overnight Precious Metals : COMEX gold fell 0.15%, and COMEX silver dropped 0.81%. Overnight, the most-traded SHFE gold futures contract fell 0.01%, and the most-traded SHFE silver contract declined 0.93%. Closing prices as of 7:03 AM, August 7: Macro Front Domestic (China) News: [Guangdong: Promote the Integration of Futures and Spot Markets for Key Commodities like Iron Ore, Crude Oil, and Rubber to Enhance Pricing Influence on Bulk Commodities] The "15th Five-Year Plan for the Development of the China (Guangdong) Pilot Free Trade Zone (Draft for Comments)" was released for public comment. It mentioned plans to expand financial opening-up in an orderly manner. International financial institutions will be encouraged to set up headquarters in the zone, promoting the development of cross-border finance, innovative finance, venture capital and investment, wealth management, futures trading, asset management, specialty finance, and offshore services. The Plan aims to accelerate the implementation of projects like the Guangdong-Hong Kong-Macao Greater Bay Area International Commercial Bank and the GBA Insurance Service Center. It supports expanding the scale of commodity trading and promoting the integration of futures and spot markets for key commodities like iron ore, crude oil, and rubber to enhance their pricing influence. The Plan will promote the quality improvement and upgrade of fintech regulatory pilots and expand digital yuan application scenarios. It supports pilot programs for cross-border financial innovations such as offshore finance and green finance, and will promote the expansion of pilot programs like cross-border Wealth Management Connect and digital yuan cross-border payments. Institutions within the zone will be supported in developing specialty products like cross-border supply chain finance and intellectual property-pledged financing, and market entities will be guided to develop composite financial products. Pilots for cross-border credit asset transfers and multi-currency integrated accounts will be deepened to promote wider mutual recognition and connectivity of cross-border financial products. (Guangdong Department of Commerce) [CAAM: June Auto Commodity Import and Export Value Hits $31.82 Billion, Up 35.5% YoY] According to data from the General Administration of Customs compiled by the China Association of Automobile Manufacturers (CAAM), the total import and export value of auto commodities in June 2026 was $31.82 billion, up 8.0% MoM and up 35.5% YoY. The import value was $3.39 billion, down 6.1% MoM and down 18.7% YoY; the export value was $28.43 billion, up 10.0% MoM and up 47.2% YoY. From January to June 2026, the cumulative import and export value of national auto commodities totaled $164.74 billion, up 25.5% YoY. The import value was $19.25 billion, down 11.8% YoY; the export value was $145.49 billion, up 33.0% YoY. (Jin10 Data APP) US Dollar: Overnight, the US dollar index rose 0.26% to 99.95. Escalating geopolitical tensions weighed on both US stocks and bonds, causing them to fall. Oil prices jumped, reigniting inflation concerns ahead of the key US employment report. Market focus now turns to Friday's US employment report for new clues on the Federal Reserve's policy path. Stronger-than-expected jobs data could reinforce the case for higher-for-longer interest rates, while any escalation of tensions in the Middle East could push up energy prices and intensify market fluctuations. UBS analyst Ulrike Hoffmann noted: "Short-term risks remain, especially if US data remains firm, oil prices continue to fuel inflation concerns, or the market continues pricing in a more hawkish Fed rate path." Interactive Brokers Senior Economist José Torres stated: "Wall Street reversed again from recent strong gains as the lack of clarity concerning the Strait of Hormuz led investors to question whether the robust rally early this week was justified." (Jin10 Data APP) According to the CME "FedWatch" tool: The probability of the US Fed keeping rates unchanged by September is 45%, while the probability of a cumulative 25 basis point hike is 55%. The probability of the Fed keeping rates unchanged through October is 31%, while the probability of a cumulative 25 basis point hike is 51.9%, and a cumulative 50 basis point hike is 17.1%. (Jin10 Data APP) According to a report by the UK's Financial Times, even after a decision not to reveal too many details on rate strategy triggered a sharp sell-off in government bonds, Fed Chairman Warsh is sticking with his usual concise communication style. People close to Warsh say he acknowledges making some mistakes during his first 10 weeks at the helm of the world's most important central bank, including failing to reinforce his key message on price stability and creating confusion over whether his long-term plan to reform the Fed could influence near-term policy decisions. However, they insisted those mistakes were not enough to derail Warsh's reform plans for the Fed. People familiar with the matter also revealed that Warsh is prepared to raise interest rates at the September meeting if upcoming inflation data proves strong and market expectations for higher borrowing costs rise accordingly. The sources added that while the Fed Chairman raised the possibility of shrinking the central bank's $6.7 trillion balance sheet to tighten monetary policy, interest rates remain the primary tool for now and will be used at upcoming meetings if necessary. (Jin10 Data APP) Macro Events: Data releases today include France's Q2 ILO unemployment rate, Germany's June seasonally adjusted industrial output MoM, Germany's June seasonally adjusted trade balance, the UK's July Halifax seasonally adjusted house price index MoM, France's June trade balance, Switzerland's July consumer confidence index, Canada's July employment change, the US July unemployment rate, US July seasonally adjusted non-farm payrolls, US July average hourly earnings YoY, US July average hourly earnings MoM, US July New York Fed 1-year inflation expectations, China's July US dollar-denominated trade balance, China's July foreign exchange reserves, and China's July trade balance data. Watches: 2028 FOMC voter and St. Louis Fed President Musalem speaks on the US economy and monetary policy; 2027 FOMC voter and Richmond Fed President Barkin delivers remarks. Crude Oil: Overnight, both oil futures rose, with US oil gaining 4% and Brent oil surging 4.57%. Geopolitical risks rekindled, causing oil prices to spike sharply. Wall Street CN mentioned that the new navigation agreement for the Strait of Hormuz, proposed to be signed by Iran and Oman, revealed significant details again, indicating Iran's bid to control the strait. Furthermore, Iran has taken action, striking "enemy targets" near the strait. Iran's Fars News Agency (FARS) reported on Thursday, August 6, local time, that Iran's parliament is reviewing this agreement. Under the agreement, US and Israeli vessels will be barred from transiting the Strait of Hormuz, and nations that have "caused harm to Iran" will also be denied passage permits. Following this news, concerns over risks to global energy transportation rapidly intensified in the market. (Wall Street CN) Saudi Arabia cut its main crude oil price for Asia as negotiations proceed on an agreement aimed at easing shipping pressure in the Strait of Hormuz. The price cut came despite Houthi threats jeopardizing the alternative eastbound crude route via the Red Sea. According to a price list, state oil company Saudi Aramco reduced the price of its Arab Light crude for delivery to Asian clients next month by $0.50 per barrel, setting it at a $2/bbl discount to the regional benchmark. A prior survey showed traders expected Saudi Aramco to keep its flagship crude price unchanged. Global benchmark Brent crude prices fell sharply this week and are now trading near $80/bbl. (Jin10 Data APP) Over the past two months, the UAE has transported more crude oil through the Strait of Hormuz than any other producer, providing a critical supply buffer to a global market suffering from a historic energy crisis. According to energy data firm Kpler, a Very Large Crude Carrier (VLCC) loaded with Emirati cargo appeared in the Gulf of Oman on Tuesday after turning off its Automatic Identification System (AIS) signal at the end of July. The tanker carries crude from the Abu Dhabi National Oil Company. This is just one of dozens of similar tankers that have departed the Persian Gulf since the Abu Dhabi National Oil Company (ADNOC) began implementing a new sales strategy. According to trading sources familiar with the matter, since early June, ADNOC has sold over 130 million barrels of crude oil through seven unprecedented tenders. (Jin10 Data APP)