[SMM Brass Bar Flash] According to SMM data, the weekly operating rate of sampled brass bar enterprises this week (7.24-7.30) was 48.81%, pulled back slightly by 0.32 percentage point WoW, and sector production remained under pressure. In the short term, the off-season end-user market is unlikely to see significant improvement, and the operating rate is expected to decline further next week.

This week (July 24-30), the SMM brass billet enterprise weekly operating rate was 48.81%, pulling back slightly by 0.32 percentage point WoW, and industry production remained under pressure. The tight supply of recycled brass raw materials has not improved significantly, procurement costs of raw materials stayed high, and sample enterprises' days of raw material inventories were 3.58 days, remaining in a low range. The traditional downstream off-season continued, orders from end-use industries such as refrigeration, sanitary ware, and hardware remained weak, with no new demand support. Downstream procurement wait-and-see sentiment was strong, with purchases maintained at a small scale based on demand. The destocking process of brass billet finished products was slow, and sample enterprises' days of finished product inventories stood at 4.91 days. Looking ahead to next week (July 31-August 6), the short-term end-user off-season conditions are unlikely to improve significantly, and it will take time for downstream orders to recover. Meanwhile, the situation of tight raw material supply and high raw material prices is expected to persist, suppressing enterprises’ production willingness. SMM expects that the operating rate of brass billet sample enterprises will continue to pull back slightly to 48.65%.

According to data from the National Bureau of Statistics (NBS), China's PMI for July 2026 I. China's Manufacturing PMI In July, the Manufacturing PMI was 49.2%, down 1.1 percentage points MoM, with the level of prosperity pulling back. By enterprise size, the PMIs for large, medium, and small enterprises were 49.5%, 49.7%, and 47.4%, respectively, down 1.2, 0.8, and 0.8 percentage points MoM, all below the threshold. Examining the sub-indices that constitute the Manufacturing PMI, all five—the Production Index, New Orders Index, Raw Material Inventory Index, Employment Index, and Supplier Delivery Time Index—were below the threshold. The Production Index was 49.9%, down 1.5 percentage points MoM, indicating a slowdown in manufacturing production activity. The New Orders Index was 48.5%, down 2.7 percentage points MoM, indicating a pullback in manufacturing market demand. The Raw Material Inventory Index was 48.3%, down 0.1 percentage points MoM, indicating that the inventory of major raw materials in manufacturing continued to decrease. The Employment Index was 49.0%, up 0.5 percentage points MoM, indicating a slight rebound in the employment climate of manufacturing enterprises. The Supplier Delivery Time Index was 49.5%, down 0.4 percentage points MoM, indicating that the delivery times for raw material suppliers to manufacturers lengthened compared to the previous month. II. China's Non-Manufacturing PMI In July, the Non-Manufacturing Business Activity Index was 49.0%, down 1.2 percentage points MoM, with the non-manufacturing sector's level of prosperity falling from the previous month. By industry, the Business Activity Index for the construction sector was 47.0%, down 2.0 percentage points MoM; that for the service sector was 49.3%, down 1.1 percentage points MoM. Within the service sector, the Business Activity Indices for postal services, telecommunications, broadcasting, television and satellite transmission services, as well as culture, sports, and entertainment, were all in a relatively high prosperity range above 55.0%; while those for capital market services and real estate were below the threshold. The New Orders Index was 44.4%, down 3.6 percentage points MoM, indicating a pullback in the prosperity level of non-manufacturing market demand. By industry, the New Orders Index for the construction sector was 40.1%, down 6.2 percentage points MoM; that for the service sector was 45.2%, down 3.2 percentage points MoM. The Input Price Index was 49.7%, unchanged MoM and still below the threshold, indicating that the overall level of input prices used by non-manufacturing enterprises in their operating activities continued to fall. By industry, the Input Price Index for the construction sector was 48.7%, down 1.7 percentage points MoM; that for the service sector was 49.9%, up 0.3 percentage points MoM. The Selling Price Index was 47.9%, down 0.5 percentage points MoM, indicating that the overall decline in selling prices for non-manufacturing enterprises expanded somewhat. By industry, the Selling Price Index for the construction sector was 47.7%, down 2.1 percentage points MoM; that for the service sector was 47.9%, down 0.3 percentage points MoM. The Employment Index was 45.4%, down 0.4 percentage points MoM, indicating a pullback in the employment climate of non-manufacturing enterprises. By industry, the Employment Index for the construction sector was 40.9%, down 1.4 percentage points MoM; that for the service sector was 46.2%, down 0.2 percentage points MoM. The Business Activity Expectations Index was 55.4%, up 0.1 percentage points MoM, indicating that non-manufacturing enterprises' confidence in market development strengthened. By industry, the Business Activity Expectations Index for the construction sector was 51.8%, up 0.7 percentage points MoM; that for the service sector was 56.0%, unchanged from the previous month. III. China's Composite PMI Output Index In July, the Composite PMI Output Index was 49.3%, down 1.3 percentage points MoM, indicating that the production and business activities of Chinese enterprises slowed down from the previous month. III. China's Composite PMI Output Index In June, the Composite PMI Output Index was 50.6%, up 0.1 percentage points MoM, indicating that the overall expansion of Chinese enterprises' production and business activities slightly accelerated. China's PMI Pulls Back in July —NBS Service Sector Survey Center Chief Statistician Huo Lihui Interprets China's PMI for July 2026 On July 31, 2026, the NBS Service Sector Survey Center and the China Federation of Logistics and Purchasing released China's PMI. Chief Statistician Huo Lihui from the NBS Service Sector Survey Center provided an interpretation. In July, the Manufacturing PMI, Non-Manufacturing Business Activity Index, and Composite PMI Output Index were 49.2%, 49.0%, and 49.3%, respectively, down 1.1, 1.2, and 1.3 percentage points MoM, with the overall level of prosperity pulling back from the previous month. I. Manufacturing PMI Pulls Back, While High-Tech Manufacturing Continues to Expand In July, influenced by factors such as a high base from the earlier rapid growth in manufacturing and some manufacturing sectors entering their traditional off-season, the Manufacturing PMI fell to 49.2%. (1) The equipment manufacturing and high-tech manufacturing sectors continued to play a supportive and leading role. The PMIs for equipment manufacturing and high-tech manufacturing were 51.4% and 53.3%, respectively, significantly higher than the overall manufacturing average, maintaining relatively rapid expansion and driving the sector toward new and high-quality development. The PMIs for the consumer goods and high energy-consuming industries were 47.8% and 47.0%, respectively, down 2.4 and 0.1 percentage points MoM, with their levels of prosperity pulling back. (2) Production and demand grew rapidly in some equipment manufacturing industries. The Manufacturing Production Index and New Orders Index were 49.9% and 48.5%, respectively, down 1.5 and 2.7 percentage points MoM, indicating that both production and market demand among manufacturing enterprises pulled back. By industry, the Production and New Orders Indices for general-purpose equipment and computer, communication, and electronic equipment were both above 53.0%, indicating high market activity and rapid growth in both production and demand. Indices for industries such as non-metallic mineral products, ferrous metal smelting and rolling processing, and automobiles were below the threshold, indicating weak supply-demand momentum. (3) Price indices continued to fall. The Major Raw Material Purchase Price Index and EXW Price Index were 53.2% and 47.8%, respectively. Affected by recent fluctuations in some commodity prices and other factors, these indices have fallen for four consecutive months. Among these, both price indices for the non-ferrous metal smelting and rolling processing industry were below 45.0%. Due to significant price level fluctuations, enterprise purchase willingness weakened, and the Procurement Volume Index fell to 49.4% this month. (4) Market expectations remained stable. The Manufacturing Production and Business Activity Expectations Index was 54.1%, with enterprises generally remaining optimistic about market development. By industry, the Expectations Indices for the food, beverage, and refined tea, and railway, shipbuilding, aerospace, and other equipment sectors rose above 60.0%, as related enterprises showed increased confidence in near-term industry development. II. Non-Manufacturing Business Activity Index Declines, While the Cultural and Tourism Sector Is Relatively Active In July, the Non-Manufacturing Business Activity Index was 49.0%, down 1.2 percentage points MoM, with the level of prosperity in the non-manufacturing sector pulling back from the previous month. (1) The cultural and tourism sector's prosperity rebounded. The Service Sector Business Activity Index was 49.3%, down 1.1 percentage points MoM, with market activity in the service sector pulling back. By industry, driven by summer consumption, residents' leisure, entertainment, and travel activities increased, leading to a clear MoM rebound in the Business Activity Indices for air transportation, accommodation, culture, sports, and entertainment. The total business volume of related enterprises grew rapidly. The indices for wholesale trade and monetary and financial services declined significantly, representing the main unfavourable factors behind the pullback in service sector prosperity this month. Indices for capital market services and real estate were below the threshold. The Service Sector Business Activity Expectations Index was 56.0%, unchanged from the previous month, with enterprises' confidence in near-term market development remaining relatively stable. (2) The construction sector's level of prosperity declined. Affected by unfavourable factors such as recent high temperatures, heavy rains, flooding, and other natural disasters in some regions, the construction progress slowed down, and the Business Activity Index was 47.0%, down 2.0 percentage points MoM. The Construction Business Activity Expectations Index was 51.8%, up 0.7 percentage points MoM, indicating that enterprises' confidence in near-term industry development strengthened somewhat. III. Composite PMI Output Index Below the Threshold In July, the Composite PMI Output Index was 49.3%, down 1.3 percentage points MoM, with the production and business activities of Chinese enterprises slowing down from the previous month. The Manufacturing Production Index and Non-Manufacturing Business Activity Index, which constitute the Composite PMI Output Index, were 49.9% and 49.0%, respectively.

On the macro front , global markets this week were primarily driven by US-Iran tensions and the US Fed's policy meeting. Early in the week, both the US and Iran temporarily sent signals of de-escalation, easing market concerns about rising energy prices and inflationary pressure. A recovery in risk appetite pushed copper prices higher. The market then entered a wait-and-see phase ahead of the Fed meeting, where the Fed ultimately held rates steady. The statement was broadly neutral, and market expectations for further rate hikes within the year were somewhat dampened. However, Trump once again stated he would take action against Iran in response to attacks on US troops in the Middle East, causing geopolitical conflict risks to re-escalate and capping further upside for copper prices. As of 9:30 am Beijing time on July 30, 2026, LME copper hit a weekly low of $13,570/mt before rebounding to a high of $13,802/mt, a rebound of $232/mt, or roughly 1.71%. The most-traded SHFE copper contract hit a low of 104,356 yuan/mt before rebounding to 105,530 yuan/mt, up approximately 1.12%. On the fundamentals side , the tight supply situation for China's copper cathode eased somewhat. As of July 30, SMM copper inventories in major Chinese regions rose to 111,900 mt, up 2,700 mt WoW, with the previous continuous destocking trend shifting to accumulation. Additionally, the ongoing destocking and high level of cancelled warrants on the LME, along with tight spot supply outside China, provided significant support for LME copper's downside resilience. Supply side, domestic and imported cargo arrivals edged up recently, with imported copper from brands such as Peru large plate, ESOX, and Myanmar circulating in the market, supplementing the previously tight spot supply. Demand side remained under pressure from the traditional consumption off-season and high copper prices, with downstream mainly maintaining just-in-time procurement. While some restocking demand was released at lower prices following the pullback in copper, a gap persisted between end-user order prices and actual transaction prices, keeping the overall improvement in demand limited. Regarding secondary copper, the price difference between copper cathode and copper scrap stayed high, but with sufficient raw material inventories at secondary copper rod enterprises and a slowdown in downstream cargo pick-up, overall purchasing willingness in the market remained subdued. Looking ahead to next week , macro attention will remain on the progress of the US-Iran conflict, as well as the impact of US employment and inflation data on Fed policy expectations. Should Middle East tensions escalate further, energy prices and inflation expectations could rebound, putting pressure on risk assets. Fundamentals wise, imported copper is expected to continue arriving, and domestic spot supply may increase further. Meanwhile, the consumption off-season has not yet ended, and downstream appetite for high-priced cargoes remains limited. However, domestic inventories are still low, and the backwardation structure will also limit the downside room for copper prices. Overall, LME copper is expected to trade in the $13,600–13,880/mt range next week, with the most-traded SHFE copper contract moving between 104,000–106,000 yuan/mt, likely consolidating on a subdued note.

This week (July 25–July 30), the SMM copper wire and cable enterprise operating rate recorded 65.94%, down 1.24 percentage points WoW and 1.4 percentage points YoY. During the week, copper prices pulled back in stages but remained in a high range. Downstream enterprises maintained a cautious purchasing sentiment, with market transactions largely supported by rigid demand, and growth in new orders was limited. Inventory side, wire and cable enterprises remained on the sidelines regarding raw material procurement, only restocking for rigid demand on slight pullbacks, with raw material inventory down 0.47% WoW. Facing weak demand in the off-season, wire and cable enterprises slowed their production pace and prioritized digesting existing finished product inventories, with finished product inventories down 1.48% WoW. Looking ahead to next week, the industry remains in the traditional consumption off-season. Coupled with further copper price increases suppressing downstream order signing willingness, enterprises are expected to continue reducing production loads. SMM expects the copper wire and cable operating rate next week (July 31–August 6) to decline by 1.5 percentage points WoW to 64.44%, and also down 1.5 percentage points YoY.

[Marginal Easing in Expectations for US Fed Rate Hikes, Continued Aluminum Destocking Underpins Market] Based on a comprehensive assessment, the macro front has improved recently; marginal constraints from rate hike expectations on the nonferrous metals sector continue to ease; the proportion of liquid aluminum in China keeps rising; the Middle East geopolitical risk premium continues to accumulate, while aluminum ingot destocking continues in China, collectively underpinning aluminum prices; and market confidence has strengthened markedly in the short term. However, the continuous rollout of long-term aluminum capacity outside China, weak traditional end-use demand in China, coupled with recurring expectations for US Fed rate hikes overseas and disturbances from uncertainties in the Middle East geopolitical situation, still exert some pressure on the upside room for aluminum prices. In the short term, aluminum prices consolidate on a strong note.

On the evening of July 30, Xiaomi Auto held its second technology conference, officially unveiling the new "Kunlun Technology Architecture" and introducing two extended-range SUVs from the Pengcheng series—the flagship seven-seat N90 Max (presale price 299,900 yuan) and the five-seat N70 Max (presale price 259,900 yuan). This marks Xiaomi Auto's formal entry into the extended-range segment, forming a dual-line product landscape alongside the pure electric SU7/YU7 series. Both new models are set to be officially launched and delivered in September, with the entry-level N70 expected to reach the 200,000 yuan price range. Based on the information released at the conference, the Pengcheng series demonstrates a clear "large-battery extended-range" approach in battery configuration. The N70 Max offers a CLTC pure electric driving range of up to 505 km, while the N90 Max delivers a combined range of 1,705 km. Its 76 kWh battery capacity places it in the top tier among extended-range models. Lei Jun emphasized at the conference that 70% of Xiaomi car owners drive no more than 400 km per week, meaning that the 505 km pure electric range allows most users to treat the vehicle as a full EV in daily use, with the range extender intervening only during long-distance trips. In terms of power, both models are equipped with a 1.5T four-cylinder range extender paired with dual-motor all-wheel drive. The N90 Max accelerates from 0 to 100 km/h in 5.9 seconds, while the N70 Max takes just 5.5 seconds. WLTC fuel consumption under battery depletion is 6.26 L/100 km and 6.1 L/100 km, respectively, balancing performance and efficiency. This product definition aligns closely with the "large-battery" trend in the 2026 extended-range market—60 kWh-plus has become standard for mid-to-high-end extended-range vehicles, and some models have already exceeded 80 kWh. The large-battery strategy directly boosts demand for ternary lithium batteries in the extended-range segment, creating new shipment growth opportunities for battery suppliers. Additionally, the "Dragon Armor Battery" system Xiaomi simultaneously introduced warrants continued attention. Defined in-house by Xiaomi, with leading design and development and full-process quality control, the system requires a battery cell cycle life of 2,000 cycles, and its bottom anti-scratch design can withstand an impact energy of 500 J. It also requires no fire or explosion under 55°C full-charge thermal runaway conditions. Combined with the armored cage-style auto body (2,200 MPa ultra-high-strength steel) and an emergency flotation function, Xiaomi offers a solution that exceeds competitors in the safety dimension. Although the Dragon Armor Battery currently still relies on externally purchased battery cells, Xiaomi's deep involvement in battery pack design and quality control reflects an industry trend of automakers gaining greater influence in the battery segment. The potential impact on the battery supply chain landscape is worth monitoring. Overall, the launch of Xiaomi Pengcheng not only represents an improvement in Xiaomi’s product lineup but also reflects the accelerated arrival of the "large battery" trend in the extended-range vehicle segment. As official deliveries ramp up in September, the boost effect of large-battery EREV models on ternary batteries will gradually materialize, and the shipment performance of the relevant supply chain will become an important tracking indicator for the lithium battery industry chain.

Vedanta Limited released its first quarterly results following the effective May 1, 2026 demerger on July 30. Its continuing operations—primarily zinc, copper, ferrochrome and related businesses—reported revenue of ₹23,456 crore for the quarter ended June 30, up 51% year on year. EBITDA reached ₹8,469 crore, up 98%, and profit after tax rose 152% to ₹5,294 crore, both record highs for the continuing business. Quarterly EBITDA margin was about 57%, up 985 basis points year on year, while return on capital employed reached 29%. Cash and cash equivalents stood at ₹19,992 crore against net debt of ₹8,299 crore, lowering net debt-to-EBITDA to 0.3x. The demerger unlocked more than ₹71,000 crore of combined market capitalization during the quarter. The supplied information did not disclose zinc-specific production, costs, concentrate supply or sales; these remain key items to monitor.

2026 marks the opening year of the “15th Five-Year Plan”. Against the backdrop of intensifying global macro volatility and the deepening advancement of high-quality development in China, the zinc industry is undergoing profound transformation: tightness at the ore end and the release of smelting capacity are creating structural tension; divergence between domestic and overseas inventory reflects the complex dynamics of supply and demand rebalancing; and technological innovation is becoming the key momentum to resolve contradictions and reshape the landscape. Key “15th Five-Year Plan” sectors 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 reshaping of industrial logic under the drive of technological innovation. With the joint support of upstream and downstream enterprises in the zinc industry, industry associations, and other relevant parties, SMM the 2026 SMM Zinc Industry Conference and the 8th Hot-Dip Galvanizing Industry Development and Technological Innovation Forum, and the 14th Zinc Salts, Zinc Oxide and Secondary Zinc Resources Development Forum, and the Casting Zinc Alloy Development Forum are about to be held in Qingdao, Shandong, from August 6 to 8. Under the theme “Harness Zinc Momentum · Build the Zinc Industry · Embark on a New Journey”, the conference will be driven by a dual engine of macro perspective and fundamentals analysis, closely aligned with the main line of high-quality development under the “15th Five-Year Plan”. It will focus on four key dimensions—macro policy, the supply-demand pattern, global trade, and technological innovation—leveraging technological breakthroughs to drive cost reduction and efficiency improvement, and using collaborative innovation to address market fluctuations, jointly charting a new blueprint for high-quality and sustainable development of the zinc industry.‌ Jiangsu Myande Energy-Saving Evaporation Equipment Co., Ltd. will make a distinguished appearance at this grand event, joining industry peers to discuss industry development trends and work together to propel the zinc industry to new heights. Click to register for the conference now, and jointly witness and participate in this extraordinary and far-reaching industry event, creating a brilliant new chapter together! System Solution for Resource Utilization of High-Salinity Wastewater in the Metallurgical Industry From “High-Salinity Burden” to “Resource Gains”—Empowering Green and Intelligent Manufacturing in Zinc Smelting I. Wastewater Treatment Challenges in the Secondary Zinc Industry A large volume of high-salinity wastewater is generated during zinc recovery from zinc-containing scrap, requiring compliant environmental protection treatment with stringent standards. This results in both high investment in environmental protection equipment and high subsequent operating costs, compressing enterprise profit margins. Moreover, secondary waste is generated after environmental protection disposal, adding disposal costs and making it difficult for enterprises to continue bearing the burden. II. Root Causes of Wastewater Treatment In the zinc recovery process for zinc-containing scrap, low-grade zinc oxide must be rinsed to remove chlorides and other impurities in the raw material to avoid affecting the purity of zinc products. In addition to sodium chloride and potassium chloride, the rinsing wastewater also contains sulphate radicals, fluoride, COD, and many other components. Its composition is complex and fluctuates significantly, making wastewater treatment highly challenging. III. Three Core Processes, One-Stop Breakthrough 1. Deep pre-treatment—precisely removes fluorides, heavy metals, and organic matter, ensuring long-term stable operation of the system 2. Evaporation Concentration + Fractional Crystallization—Recovering High-Purity Potassium Chloride and Sodium Chloride, Achieving Salt Resource Recovery 3. Evaporative Condensate Reuse in Production Processes—Self-Circulation of Process Water, Achieving True "Zero Discharge" 4. Dual Benefits Empowering Enterprises Turning high-salinity wastewater into a valuable resource, while achieving environmentally compliant disposal, recovering salt resources, with revenue covering operating costs, shortening the payback period, and enhancing overall economic benefits. Contact Person Zhu Manager 15161877256 Wu Manager 15952706514 Tel: 0514-87843988 Email: zzj@myande.com Website: evap.myande.com Address: No. 199 Ji’an South Road, Yangzhou, Jiangsu Province Product Inquiry QR Code Evaporation Official Website QR Code Official Website QR Code Official WeChat QR Code Long-Press to Scan to Register Now 2026 SMM Zinc Industry Conference

On July 30, 2026, Vale announced that it had started trial operation of the long-distance conveyor belt for the Serra Sul 20 million tonnes per year (mtpy) capacity expansion project, marking the project's official entry into the operational phase. This expansion project, combined with a compact ore crushing system planned to be put into use in Q4 2026, is expected to add 20 million mt of annual iron ore production to the S11D mine (Canaã dos Carajás, Pará, Brazil), improving the mine’s capacity and operational flexibility. The Serra Sul 20 mtpy capacity expansion project is a key component of Vale’s corporate strategy, aimed at reinforcing the S11D mine’s competitive edge in the market. The project will not only enhance operational efficiency in iron ore operations but also strengthen Vale's ability to supply high-grade iron ore to the market. As an important part of the ‘New Carajás Plan,’ this plan aims to ensure the continued stability of iron ore capacity while expanding the supply of high-quality iron ore products and critical minerals, thereby consolidating Brazil’s position in the global energy transition and creating long-term value for society and stakeholders. The expansion project has further boosted the capacity of the S11D mine and production facilities by replicating the existing long-distance conveyor system, developing new mining areas, installing semi-mobile crushing equipment, and constructing a new production line at the beneficiation plant. The project obtained the relevant mining operating license in September 2025. In addition, the Capanema project, the Vargem Grande 1 Plant (VGR1) project, and the Serra Sul 20 mtpy capacity expansion project are all key milestones in the company’s iron ore capacity enhancement plan. The company plans to increase annual iron ore production to approximately 360 million mt by 2030, while continuously enriching and optimizing its iron ore product portfolio to achieve sustainable growth and competitive advantage. In Q2 2026, Vale’s iron ore production reached the highest level for a second quarter since 2018. Total iron ore production was 84.3 million mt, up 1% YoY (700,000 mt). This growth was driven by record production at S11D, as well as incremental volumes from the Capanema and Vargem Grande 1 (VGR1) projects. Iron ore pellet production totaled 7.3 million mt, down 7% YoY (500,000 mt), due to the temporary suspension of production at the Oman plant during part of the quarter. Iron ore sales reached 79.7 million mt, up 3% YoY (2.4 million mt), supported by the sale of inventory and higher production.