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.

[SMM Magnesium Weekly Review: Consolidation at Highs After Initial Strength as Supply-Demand Imbalance Persists] The magnesium market held up well early this week before consolidating. At the beginning of the week, supported by positive sentiment, concentrated restocking by traders pushed magnesium ingot prices up to 16,000 yuan/mt. However, after order delivery, downstream users turned cautious and stood on the sidelines, leading to thinner trading and slight softening of some quotes. Overseas summer breaks kept outside China demand sluggish; FOB offers were stable but actual transactions were sluggish. Dolomite delivered prices remained stable with ample supply. Magnesium powder tracked the initial rise and subsequent decline of magnesium ingot, while magnesium alloy operating rates dropped notably due to the off-season and shrinking end-use demand. Overall, the supply-strong, demand-weak pattern remained unchanged, and magnesium prices are likely to continue moving sideways in the near term.

China formally ended the value-added tax export rebate for photovoltaic products on April 1, 2026. In the first days after implementation, higher export costs and the renegotiation of existing contracts briefly lifted some module offers. That support proved short-lived.

[SMM Morning Meeting Summary: Tug-of-War in High Range, Awaiting a Breakout Signal Amid the Tug-of-War Between Sellers and Buyers]

[Import Growth Masks Supply-Demand Tightening – Review and Outlook of China's Imported Zinc Concentrates Market in H1 2026]: According to customs data, China's zinc concentrates imports from January to June 2026 totaled 2.7616 million mt, up 8.98% YoY, with overall imports edging up YoY......

[SMM Magnesium Weekly Review: Holding Up Well Then Consolidating at Highs, Supply Strong and Demand Weak Pattern Unchanged] At the beginning of the week, boosted by restocking for rigid demand and news, magnesium ingot quotations edged up slightly. However, high inventory suppressed downstream purchases, and upward momentum was insufficient. FOB quotations at Tianjin port followed the rise. Summer break outside China combined with high ocean freight rates led to sluggish foreign trade transactions. Dolomite prices remained stable, with ample supply. Magnesium powder and magnesium alloys edged up slightly following magnesium ingot and then stabilized. Demand from die-casting was weak in the off-season, and the pattern of strong supply and weak demand remained unchanged. In the short term, magnesium prices will continue to move sideways.

SMM July 22: Dealers in Jiangsu reported that end-use consumption in the e-bike lead-acid battery market was sluggish, sales promotions were prevalent in the battery wholesale market, and the wholesale price of the main 48V12Ah model was currently 260 yuan per unit. Manufacturers in Jiangxi reported that the off-season trend in the e-bike lead-acid battery market persisted, with moderate finished product orders. Factories maintained production cuts, and the operating rate was around 70%. Manufacturers in Zhejiang reported that demand in the e-bike lead-acid battery market was weak, dealers were cautious in purchasing, and to relieve inventory pressure, factory operating rates were at 60-70%, with raw material lead procured only through long-term contracts.

In summary, the import dividends marginally faded in June, while exports experienced a periodical recovery. The narrowing of the import window in July will cause monthly imports to decline significantly, and the annual trade pattern will enter a new phase of reduced imports and export recovery.

[SMM Morning Call Summary: Macro Sentiment Intertwined with Fundamentals; SHFE Tin in a Dilemma, Focus on Marginal Changes]

[SMM Weekly Magnesium Review: China Magnesium Market Retreats After Rapid Rise; Foreign Trade Remains Sluggish] This week, the magnesium ingot market in the main producing areas retreated after a rapid rise. At the beginning of the week, maintenance provided support to quotations, but downstream high inventory and fear of high prices suppressed transactions. Some producers offered discounts to sell, and magnesium prices weakened under pressure. Tianjin port FOB prices followed the decline of domestic EXW prices passively. Outside China, summer break led to weak demand, and high ocean freight rates suppressed transactions. Dolomite prices remained stable, with limited cost support. Magnesium powder and magnesium alloy followed magnesium ingot by falling first and then stabilizing. Downstream steel mill desulfurization, titanium sponge, and die-casting enterprises entered the off-season, with sluggish transactions. The oversupply pattern remained unchanged. In the short term, the magnesium market is expected to continue moving sideways.