As the global automotive industry accelerates its low-carbon and intelligent transformation, China's automotive industry is shifting from scale advantages to dual leadership in technology and supply chain. In 2025, the penetration rate of NEVs in China exceeded 50%, driving upgrades in automotive materials such as aluminum, steel, and magnesium and sparking a surge in demand for lightweight new materials. With the implementation of the EU carbon tariff, the low-carbon transformation of the industry chain is urgently needed. Coinciding with the start of the 15th Five-Year Plan and the deepening of the dual carbon goals, the industry urgently requires a professional platform to tackle material technology challenges. Against this backdrop, will be held on September 10-11, 2026 in Shanghai . SMM , together with the conference co-organizer - , sincerely invites industry colleagues to attend and jointly advance the deep evolution of the automotive supply chain toward greenness, lightweight, intelligence, and globalization. Click to attend, and we look forward to meeting you at the conference. I. Basic Company Overview Jintuo Technology Co., Ltd. (stock abbreviation: Jintuo Shares; stock code: 603211) was founded in 2001 in Qingpu District, Shanghai, and listed on the main board of the Shanghai Stock Exchange in July 2022. Its group headquarters is located in Songjiang Xinbang Industrial Park. It is a benchmark listed manufacturing enterprise in China's aluminum alloy precision die-casting field. The company currently has over 1,800 employees and operates three major production sites (Songjiang, Shanghai; Xishan, Wuxi; SLP, Mexico), six production plants, and one headquarters. It possesses comprehensive integrated full-industry-chain production capacity covering self-developed molds, die-casting, precision CNC machining, surface treatment (anodizing, powder and liquid coating), and final assembly. The company is equipped with intelligent production lines, and its overall production scale and quality control level rank among the top in the industry. II. Main Products and Customer System The company's core business is the R&D, production, and sales of aluminum alloy precision die-cast parts, forming a product layout that focuses on automotive components while also developing robotic, smart home, and satellite communication components in synergy. Its automotive business is deeply engaged in vibration damping parts for traditional internal combustion engine vehicles, as well as the three electric systems (power battery, drive motor and electronic control system) for NEVs, thermal management, and lightweight structural components for intelligent driving. It has long-term partnerships with global leading Tier 1 automotive suppliers such as Vibracoustic, Hutchinson, Valeo, United Automotive Electronic Systems, Bosch, and Continental, supplying end-users such as Volkswagen, BMW, BYD, SAIC, Chery, NIO, Li Auto, XPeng, and other mainstream automakers in and outside China. The robotics segment provides leading structural component solutions and mass supplies structural parts for over ten top-tier robotics companies, including UR Robotics, Yuejiang Robot, Agibot, Yushu Robot, and Zhongqing Robot; the industrial segment supplies precision structural parts to Emerson Group, Schneider Group, BSH Home Appliances, and Daikin Air Conditioning, while also strategically deploying in 6G and satellite communication precision components, achieving balanced multi-sector development and effectively hedging against the risk of cyclical fluctuations in any single industry. III. R&D Strengths and Enterprise Honors Jintuo adheres to technology-driven development, has established two high-end R&D platforms—Shanghai Special Casting Engineering Technology Center and Academician Expert Workstation—equipped with a professional R&D team, deeply cultivates core processes such as high-vacuum die casting, ultra-thin aluminum semis forming, and heat-treatment-free alloys, and holds over 200 proprietary invention patents. The enterprise has been successively recognized as a National-level Specialized and Sophisticated "Little Giant" Enterprise, National Green Factory, Shanghai High-tech Enterprise, and Shanghai Manufacturing Single Champion. It has passed multiple authoritative certifications including the IATF16949 automotive quality management system and ISO14001 environmental management system, and has repeatedly won prestigious industry awards such as National Top 20 Die Casting Enterprises in Comprehensive Strength and Gold Awards for High-quality Castings. IV. Business Philosophy and Development Plan The company adheres to the business principle of "customer demand-oriented and driven by innovative manufacturing," continuously advancing factory intelligent transformation and green low-carbon production. Keeping pace with the waves of vehicle electrification and robot industrialisation, it continuously expands precision die-casting capacity, deepens industry-academia-research collaboration, and leverages the regional advantages of the Yangtze River Delta to consolidate its position as a global supplier of precision components, striving to become a high-quality supplier in the global lightweight precision die-casting field. Jintuo Technology Co., Ltd. Contact: Shen Liang 186 1651 9128 Website: www.jintuo.com.cn SMM Conference Contact Yu Jin 156 0163 9371 yujin@smm.cn

Following the start of the definitive phase of the EU Carbon Border Adjustment Mechanism (CBAM) in 2026, differences in country-specific default values , default production routes and corresponding benchmarks have begun to translate into significantly different theoretical certificate exposures for unwrought aluminium. SMM analysed EU-27 imports of unwrought aluminium under HS/CN 7601 from non-EU origins and matched the trade data with the 2026 default value, default production route and CBAM benchmark assigned to each origin. The theoretical unit certificate exposure in this analysis is calculated as: 2026 theoretical unit certificate exposure = 2026 default value − benchmark × 97.5% × cross-sectoral correction factor The cross-sectoral correction factor, or CSCF, is provisionally assumed to be 1. The calculation does not deduct any qualifying carbon price effectively paid in the country of origin. The results therefore indicate the relative CBAM exposure of different origins under the default-value scenario. They do not represent the final number of certificates that EU importers will be required to surrender or the final monetary cost. EU-27 unwrought aluminium imports rose 7.0% in 2025 According to SMM calculations, EU-27 imports of unwrought aluminium under HS/CN 7601 from non-EU origins reached approximately 7.63 million tonnes in 2025 , up from 7.13 million tonnes in 2024. This represented an increase of about 502,200 tonnes, or 7.0% year on year . Of the 2025 total, approximately 4.56 million tonnes originated from countries subject to CBAM, accounting for 59.7% of total imports. Imports from CBAM-exempt origins, including Norway, Iceland and Switzerland, amounted to approximately 3.05 million tonnes , representing around 40.0% of the total. A further 25,800 tonnes were recorded without a specified origin and were excluded from the country-level exposure ranking. Applying the 2026 default values and benchmarks to the 2025 trade structure produces an estimated theoretical certificate exposure of approximately 4.09 million tCO₂e for imports from CBAM-covered origins. The trade-weighted average unit exposure was approximately 0.898 tCO₂e per tonne of product . As 2025 remained within the CBAM transitional period, these figures are scenario-based estimates using 2025 trade volumes and the 2026 calculation rules. They do not represent actual certificate obligations for 2025. Primary aluminium route accounted for more than 99% of theoretical exposure The primary aluminium route dominated both CBAM-covered import volumes and theoretical certificate exposure. In 2025, imports assigned to the primary aluminium route totalled approximately 4.46 million tonnes , accounting for 97.8% of imports from CBAM-covered origins. Their theoretical certificate exposure reached approximately 4.06 million tCO₂e , representing 99.3% of the total exposure. The trade-weighted average unit exposure for the primary aluminium route was approximately 0.912 tCO₂e per tonne of product . By comparison, imports assigned to the secondary aluminium route amounted to approximately 99,500 tonnes, or 2.2% of CBAM-covered imports. Their theoretical certificate exposure was approximately 30,600 tCO₂e, with an average unit exposure of around 0.307 tCO₂e per tonne . The gap between the two routes reflects differences in both country default values and the applicable benchmarks. For HS/CN 7601, the benchmark used for the primary aluminium route is 1.423 tCO₂e per tonne , compared with 0.091 tCO₂e per tonne for the secondary aluminium route. This means that, under a default-value declaration scenario, the theoretical CBAM exposure of EU-27 unwrought aluminium imports remains highly concentrated in primary aluminium supply. Mozambique recorded the highest unit exposure, with China also ranking near the top The results show a clear divergence in theoretical unit exposure among origin countries. Mozambique recorded the highest unit exposure among major origins with a country-specific default value, at approximately 2.130 tCO₂e per tonne of product . China followed at approximately 1.913 tCO₂e per tonne , placing it among the origins with the highest default-value-based unit exposure. South Africa recorded an estimated unit exposure of approximately 1.207 tCO₂e per tonne , followed by Russia at 0.989 tCO₂e and Canada at 0.769 tCO₂e. Bahrain, the United Arab Emirates, India, the United Kingdom, Egypt and Kazakhstan share similar default values under the primary aluminium route, resulting in unit exposure of approximately 0.670 tCO₂e per tonne . Australia, Brazil, Malaysia, Oman, Qatar, Saudi Arabia and the United States recorded unit exposure of approximately 0.483 tCO₂e per tonne . Origins assigned to the secondary aluminium route generally recorded approximately 0.307 tCO₂e per tonne . A high unit exposure does not necessarily mean that an origin faces the greatest aggregate impact. Total exposure also depends on the volume of trade with the EU-27. China illustrates this distinction. EU-27 imports of HS/CN 7601 products from China reached approximately 12,400 tonnes in 2025 , up 24.3% year on year. This corresponded to theoretical certificate exposure of about 23,700 tCO₂e . China therefore ranked near the top on a unit basis, but its comparatively limited shipment volume to the EU-27 kept its aggregate exposure well below that of Mozambique, Canada and several major Gulf suppliers. Mozambique’s total theoretical exposure reached 1.34 million tCO₂e After incorporating 2025 import volumes, Mozambique emerged as the origin with the highest aggregate theoretical certificate exposure. EU-27 imports from Mozambique reached approximately 628,000 tonnes in 2025 , up 17.5% year on year. Based on unit exposure of 2.130 tCO₂e per tonne, its total theoretical exposure was approximately 1.34 million tCO₂e . Mozambique alone accounted for 32.7% of the theoretical exposure associated with CBAM-covered origins. However, the above total exposure is a static estimate based on 2025 trade volumes. Power supply constraints may limit Mozambique’s aluminium smelting capacity and output in 2026–2027, potentially reducing its exports to the EU. As a result, its actual near-term aggregate CBAM exposure may not reach the theoretical level estimated using 2025 trade volumes. Canada supplied approximately 682,800 tonnes to the EU-27 in 2025. Although its unit exposure was considerably lower than Mozambique’s, its larger trade volume lifted its aggregate theoretical exposure to approximately 524,800 tCO₂e , equivalent to 12.8% of the total. Bahrain, the United Arab Emirates, Russia and South Africa recorded theoretical total exposures of approximately 350,900 tCO₂e, 329,300 tCO₂e, 322,200 tCO₂e and 263,600 tCO₂e, respectively. Mozambique, Canada, Bahrain, the United Arab Emirates, Russia and South Africa together accounted for approximately 76.4% of total theoretical certificate exposure. Mozambique’s position was driven by the combination of a high unit default-value exposure and substantial trade volume. Canada’s unit exposure was not among the very highest, but its large and rapidly increasing export volume significantly amplified its aggregate impact. Four-quadrant analysis places China in the “high intensity, low trade volume” category A four-quadrant analysis using 2025 EU-27 import volume on the horizontal axis and 2026 theoretical unit certificate exposure on the vertical axis provides a clearer view of the combined influence of carbon intensity and trade scale. The core high-exposure quadrant includes Mozambique, Canada, Bahrain, the United Arab Emirates, Russia, South Africa, India and the United Kingdom. These origins combine comparatively large trade volumes with relatively high unit exposure and are the main contributors to aggregate CBAM exposure for EU-27 unwrought aluminium imports. China is the most prominent origin in the high intensity, low trade volume quadrant . Its theoretical unit exposure of approximately 1.913 tCO₂e per tonne is second only to Mozambique, but its current export volume to the EU-27 remains comparatively limited. Ukraine and South Korea are among the origins in the trade-volume-driven quadrant . Both are assigned to the secondary aluminium route and have relatively low unit exposure, but their larger trade volumes increase their aggregate exposure compared with other secondary-route origins. Vietnam, Morocco, Serbia, Bolivia and Mexico are among the origins in the low-exposure quadrant , reflecting both lower unit exposure and limited trade volumes. For Vietnam, HS/CN 7601 unwrought aluminium is assigned to the secondary aluminium default route, resulting in theoretical unit certificate exposure of approximately 0.307 tCO₂e per tonne in 2026, significantly below that of most origins assigned to the primary aluminium route. EU-27 imports from Vietnam amounted to approximately 7,100 tonnes in 2025, down around 27.1% year on year, corresponding to theoretical total certificate exposure of about 2,200 tCO₂e. Vietnam’s overall CBAM exposure therefore remains relatively limited at present. However, should its exports to the EU expand in the future, access to and verification of actual emissions data will remain an important factor affecting the relative competitiveness of Vietnamese products. The quadrant thresholds are analytical dividing lines based on the median values of CBAM-covered origins with actual trade. They do not represent regulatory thresholds set by the EU. Theoretical exposure reached approximately 642,400 tCO₂e in Q1 2026 In the first quarter of 2026, EU-27 imports of unwrought aluminium under HS/CN 7601 from non-EU origins reached approximately 1.52 million tonnes , with a total import value of around €4.36 billion . The average import value was approximately €2,873 per tonne . Imports from CBAM-covered origins amounted to approximately 782,800 tonnes , accounting for 51.6% of total imports. Imports from CBAM-exempt origins reached around 733,000 tonnes, or 48.4%. Based on the 2026 default values and benchmarks, imports from CBAM-covered origins generated theoretical certificate exposure of approximately 642,400 tCO₂e during the quarter. Mozambique remained the largest contributor, with theoretical exposure of around 150,500 tCO₂e. Canada followed with approximately 86,800 tCO₂e, the United Arab Emirates with 82,100 tCO₂e, Bahrain with 63,400 tCO₂e and South Africa with 56,200 tCO₂e. As the analysis does not include Q1 2025 comparison data, no year-on-year conclusion has been drawn for Q1 2026 import volumes or exposure. The quarterly figures are used primarily to illustrate the origin structure during the initial stage of the definitive CBAM period. Access to and verification of actual emissions data could become an important competitiveness factor Country default values are fallback parameters applied when producers are unable to provide actual emissions data that meet EU requirements. They do not necessarily reflect the actual carbon intensity of a specific producer or shipment. For origins with relatively high default-value exposure, including China, Mozambique, South Africa and Russia, producers whose actual embedded emissions are materially lower than the applicable country default value could reduce the certificate exposure faced by EU importers by establishing robust emissions-monitoring systems and providing complete, verified emissions data. Conversely, where suppliers are unable to provide emissions information that is complete, traceable and compliant with EU requirements, importers may have to rely on the relevant country default value. A higher default value could consequently affect supplier selection, purchase negotiations and long-term contract arrangements. The final number of certificates to be surrendered will also depend on actual embedded emissions, production-route classification, data verification and any qualifying carbon price effectively paid in the country of origin. The actual CBAM cost will additionally depend on the CBAM certificate price, which is linked to EU Emissions Trading System allowance prices. The theoretical certificate exposure calculated in this analysis should therefore not be interpreted directly as either the final certificate obligation or the final CBAM cost. Overall, the impact of CBAM on trade in HS/CN 7601 unwrought aluminium will not be determined by country default values alone. Unit certificate exposure, trade scale, actual emissions and the availability of reliable carbon data will jointly shape the competitive position of different origins and producers in the EU market. As the definitive phase progresses, differences in low-carbon production capability, emissions-data management and verification capacity are likely to become increasingly visible in procurement decisions, export competitiveness and trade flows. Data note: The trade scope covers EU-27 imports of unwrought aluminium under HS/CN 7601 from non-EU origins. CBAM-exempt origins, including Norway, Iceland and Switzerland, are included in total import statistics but excluded from theoretical certificate exposure. Origins without a country-specific default value are assigned the applicable value for “Other Countries and Territories.” Unspecified origins are excluded from the country ranking. Theoretical exposure does not deduct qualifying carbon prices paid in third countries. Source: EU-27 import data, EU CBAM default values and benchmarks; compiled by SMM.

As of July 11, 2026, the direct reduced iron (DRI) plant of Jindal Steel Oman in Sohar operated continuously for 188 days without any unplanned shutdowns. The 6.5-meter shaft furnace set a record for the highest monthly production of 185,710 mt in May 2026, with an average operating rate of 249.6 mt per hour. The facility’s production exceeded its original designed capacity of 1.5 million mt by 33%, establishing a new global benchmark for operational efficiency. The Sohar plant integrates gas-based direct reduction (using reformed natural gas to reduce iron ore) with a 220-mt Danieli electric furnace, where hot DRI is charged directly into the furnace by gravity. Billed as the world’s first gravity-fed hot DRI charging system, it achieves significant energy savings. In early 2026, the EAF side also set records: monthly production of 235,112 mt of liquid steel at a rate of 324 mt/hour, with a charge mix of 61% hot DRI, 37% cold DRI, and 2% hot briquetted iron (HBI), and electricity consumption of 493 kWh per mt of steel. In other words, from reduction to melting, this is a fully integrated DRI-EAF process, and the high stability of the shaft furnace serves as the foundation for the entire chain’s efficiency. Jindal’s record carries weight because it falls within a strengthening megatrend. According to data from Midrex and the World Steel Association, global DRI production reached 140.8 million mt in 2024, setting a new record high, up 3.8% YoY (the previous record was 135.7 million mt in 2023). The cumulative increase since 2019 is approximately 32.7 million mt, an increase of over 30%. More notably, this growth outpaced the mild 1% growth in global crude steel production over the same period. The DRI route is steadily expanding its share in the overall steel landscape. Midrex technology accounted for 54.1% of total production and approximately 80.1% of shaft-furnace DRI output. However, this growth is highly concentrated. In 2024, India ranked first globally with 54.7 million mt, accounting for over one-third of the total. Iran followed with 34.7 million mt, and together the two countries accounted for about 63% of the global total. Next came Russia (8.0 million mt), Saudi Arabia (6.6 million mt), and Egypt (6.4 million mt). The landscape broadly splits into two segments: one is India’s vast domestic demand-driven system based on coal-based rotary kiln sponge iron, and the other is the gas-based DRI cluster in the Middle East and North Africa (MENA) built on cheap natural gas. Jindal Steel Oman’s Sohar plant falls into the latter category. This concentration also means that any disruption in natural gas supply, energy policy, or geopolitical turbulence in one location will be magnified to affect global DRI supply. To grasp the strategic value of such plants, one must place them within the carbon intensity framework. According to the representative route values from the World Steel Association, the blast furnace–converter integrated route emits approximately 2.3 mt CO₂ per mt of steel, while the scrap-based electric furnace route records the lowest at around 0.7 mt. The gas-based direct reduction–electric furnace route falls in between, at roughly 1.43 mt. This means that before green hydrogen direct reduction achieves true scale, gas-based DRI represents the most viable low-carbon iron source pathway beyond the blast furnace. It is not zero-carbon, but it can already reduce the carbon footprint to around 60% of the blast furnace route. A gas-based DRI plant like Jindal Shuhar—efficient, low-cost, and running stably—sits right at the sweet spot of this transitional pathway. Placed back into the trade dimension of the ferrous metal industry chain, the Middle East’s gas-based DRI and HBI have long played the role of supplying green iron to Europe, Turkey, and the US. The top five global DRI importers in 2024 were the US (1.5 million mt), Turkey (1.2 million mt), India (900,000 mt), Mexico (800,000 mt), and Italy (700,000 mt). As the EU Carbon Border Adjustment Mechanism (CBAM) enters the actual payment phase and embedded carbon costs increase year by year, the premium window for exporting low-carbon iron sources to Europe is opening up. Plants that can spread fixed unit costs thinner and push annualized output to 133% of designed capacity are precisely the most resilient marginal suppliers along this trade flow. Viewed from this angle, Jindal’s 188-day record is not merely a straightforward milestone.

By July 11, 2026, the direct reduced iron (DRI) plant of Jindal Steel Oman in Sohar had operated continuously for 188 days without any unplanned shutdowns. This 6.5-meter shaft furnace set a record high monthly production of 185,710 mt in May 2026, with an average operating rate of 249.6 mt per hour. The facility's production exceeded its original designed capacity of 1.5 million mt by 33%, thereby setting a new global benchmark for operational efficiency. The Sohar facility is an integrated combination of a gas-based direct reduction (using natural gas reformed syngas to reduce iron ore) unit and a 220 mt Danieli electric arc furnace. Hot DRI is gravity-fed directly into the electric furnace, touted as the world's first gravity hot DRI feeding system, achieving significant energy savings. The electric furnace side also set records in early 2026: a monthly output of 235,112 mt of liquid steel with a productivity of 324 mt/hour, a charge mix of 61% hot DRI, 37% cold DRI, and 2% hot briquetted iron (HBI), and electricity consumption of 493 kWh per mt of steel. In other words, from reduction to melting, this is a fully integrated DRI-EAF process, and the high operational stability of the shaft furnace is precisely the foundation of the entire chain's efficiency. This record is significant because it falls within a continuing strong mega-trend. According to statistics from Midrex and the World Steel Association, global direct reduced iron (DRI) production reached 140.8 million mt in 2024, a new record high, up 3.8% YoY (the previous record was 135.7 million mt in 2023); since 2019, it has cumulatively increased by about 32.7 million mt, an increase of over 30%. More notably, this growth rate outpaced the mild growth of about 1% in global crude steel production over the same period, with the DRI route steadily expanding its share in the overall steel landscape. Of this, the Midrex process accounted for 54.1% of total production, and an even larger share of about 80.1% in shaft furnace DRI. However, this growth is highly concentrated. In 2024, India ranked first globally with 54.7 million mt, accounting for over one-third of the total; Iran followed with 34.7 million mt, and together these two countries accounted for about 63% of the global total. It was followed by Russia at 8.0 million mt, Saudi Arabia at 6.6 million mt, and Egypt at 6.4 million mt. The landscape is broadly divided into two parts: one is India's massive domestic demand system primarily based on coal-based rotary kiln sponge iron, and the other is a gas-based DRI cluster in the Middle East and North Africa built on cheap natural gas, to which Jindal Steel Oman belongs. This concentration also means that any local natural gas supply, energy policy, or geopolitical disturbance will be amplified to the level of global DRI supply. Gas-Based DRI in the Decarbonization Landscape To understand the strategic value of such plants, one must place them back into the carbon intensity coordinate system. According to the World Steel Association's representative route values, the blast furnace—converter long process is about 2.3 mt CO2 per mt of steel, the scrap-based electric furnace is the lowest at about 0.7 mt, while the gas-based direct reduction—electric furnace is in the middle at about 1.43 mt. This means that, before green hydrogen-based direct reduction truly scales up, gas-based DRI is the most realistic low-carbon iron source route beyond the blast furnace. It is not zero-carbon, but it can already reduce the carbon footprint to about 60% of the long process. Gas-based DRI plants like Jindal Steel Oman, which are efficient, low-cost, and stably operated, exactly stand at the optimal point of this transitional route. Putting it back into the trade dimension of the ferrous industry chain, gas-based DRI and HBI from the Middle East have long played the role of supplying green steel to Europe, Turkey, and the US. In 2024, the top five global DRI importers were the US (1.5 million mt), Turkey (1.2 million mt), India (900,000 mt), Mexico (800,000 mt), and Italy (700,000 mt). As the EU CBAM enters actual payment and the embedded carbon cost rises year by year, the premium space for low-carbon iron source exports to Europe is being opened up, and plants that can spread their unit fixed costs thinner and push their annualized output to 133% of designed capacity are exactly the most resilient marginal suppliers on this trade flow. From this perspective, Jindal's 188-day record is more than just a simple milestone.

Trump told Fox News he's not interested in updating USMCA ("Mexico and Canada need us, we don't need them"), just as Canada and Mexico are pushing hard to get the US's 50% Section 232 steel tariffs lifted in the ongoing USMCA review, a top priority for both countries after steel imports into the US fell nearly 35% YoY in Q1 2026 while domestic steel prices climbed; a third round of US-Mexico talks in Mexico City is still working through steel/aluminum technical issues, but Trump's comments signal Washington has little appetite to budge on the tariffs.

Silver Storm Mining has completed the first post-restart concentrate shipment from its wholly owned La Parrilla Silver Mine Complex in Durango State, Mexico. Produced through the sulphide processing circuit, the initial cargo comprised 105 dry tonnes of lead-silver concentrate and 70 dry tonnes of zinc concentrate, delivered under the company’s previously announced offtake prepayment agreement. La Parrilla operated from 2005 until September 2019 before being placed on care and maintenance. Silver Storm said the operation has now moved into a revenue-generating phase and is positioned for ongoing concentrate shipments. The company plans to raise sulphide processing throughput toward its 1,250-tonne-per-day nameplate capacity; actual throughput, zinc concentrate grade and contained-zinc output have not yet been disclosed.

Silver Storm Mining announced the first shipment of lead-silver and zinc concentrates from its 100%-owned La Parrilla Silver Mine Complex in Durango, Mexico, marking the project’s transition into a revenue-generating stage. The company successfully produced initial concentrates using the sulphide processing circuit and completed the shipment of 105 dry metric tonnes of lead-silver concentrate and 70 dry metric tonnes of zinc concentrate under its previously announced offtake prepayment agreement. Silver Storm said it will continue ramping up sulphide circuit throughput toward the plant’s nameplate capacity of 1,250 tonnes per day. CEO Greg McKenzie said the first shipment represents a key milestone, confirming La Parrilla’s transition from care and maintenance to an operating asset capable of generating revenue, with ongoing concentrate shipments expected under the offtake agreement.

Santacruz Silver reported Q2 2026 production of 1.57 million oz of silver, 23,240 mt of zinc, 3,165 mt of lead and 337 mt of copper across its operations in Bolivia and Mexico. This was equivalent to 2.81 million silver-equivalent oz, or 59,680 zinc-equivalent mt. Silver production at the Bolivar mine increased 32% QoQ.

Recently, the Mexican Ministry of Economy issued a notice stating that, upon the request of Mexican producers Deacero, S.A.P.I. de C.V. and Ternium México, S.A. de C.V., it initiated the second anti-dumping sunset review investigation on steel wire rod originating in China. The dumping investigation period is from July 1, 2025 to June 30, 2026, and the injury investigation period is from July 1, 2021 to June 30, 2026. The TIGIE tariff codes for the product involved are 7213.10.01, 7213.20.91, 7213.91.03, 7213.99.99, 7227.10.01, 7227.20.01, and 7227.90.99. During the investigation, the existing anti-dumping duties will remain in effect. The notice takes effect on the day after its publication.

SMM, July 28: In H1 2026, the global petroleum coke market had originally hoped for an easing of the previous year's tight supply and a gradual recovery in production from major producing regions. However, the early-year "signs of production increase" were successively interrupted by peak maintenance season, the escalation of Middle East tensions, and multiple refinery accidents. The global supply side displayed a typical pattern of "first increase then decline, overall tightness," while the structural divergence between high- and low-sulphur coke further intensified. I. Global Overview: From "Easing Expectations" to "Tightening Reality" In 2025, the global petroleum coke market tightened significantly due to concentrated refinery closures and a rising share of light crude processing — US coke production once fell to a 20-year low. Entering 2026, benefiting from improved economics for heavy sour crude, coke output in the US Gulf Coast surged to a 13-month high in January, and the market widely expected high-sulphur coke supply to exert downward pressure on prices in Q2. But this expectation was quickly overturned. The escalation of Middle East tensions in late February pushed up crude oil and shipping costs, and combined with successive accidents at key refineries in the US and Mexico from March to April, global supply tightened again, providing solid support to prices. The repeated cycle of "production increase — then production cuts" in global petroleum coke during H1 has become the dominant theme driving price fluctuations. II. US: Hit New High Early in the Year, Production Rebounded Despite March-April Disruptions The US is a major source of global high-sulphur coke. In January 2026, benefiting from favorable economics for processing heavy sour crude, US coke production rebounded to a 13-month high, momentarily making the market optimistic about supply easing in Q2. However, March-April saw a cluster of risk events: Valero's Port Arthur refinery (380,000 b/d) halted production due to a fire on March 23, with coking units partially restarting in early April but the large crude unit not back online until month-end, forcing April shipments to be delayed to May. Meanwhile, multiple refineries in Texas also experienced frequent malfunctions — ExxonMobil's Beaumont refinery (612,000 b/d) suffered a unit malfunction on April 22, and Marathon's Galveston Bay refinery (631,000 b/d) experienced a power outage on April 14. However, the disruption did not reverse the overall production increase. According to US EIA data, marketable petroleum coke production along the US Gulf Coast reached 2 million mt in April, up 14% YoY (up from 1.8 million mt a year earlier) and up 3% MoM, pushing nationwide production up 8% YoY. The growth was mainly driven by a surge in Venezuelan crude imports (more than doubled YoY and up 15% MoM in April), coupled with US Gulf Coast refining margins hitting a more than three-year high in late March and refinery operating rates averaging 95%; some refiners maximized operations to capture high product margins. Among them, Louisiana Gulf Coast production soared 29% YoY in April, hitting a more than six-year high. In other words, US supply in H1 was characterized by a "first-down-then-up" pattern—constrained by incidents in Q1, but clearly recovering by April. III. Mexico and Venezuela: Two Steps Forward, One Step Back on the Production Increase Path Venezuela: After the US eased sanctions restrictions, exports began to rebound from February but remained below year-earlier levels, contributing limited global growth. Mexico: Following the incident at the Pemex Dos Bocas / Olmeca refinery (340,000 b/d) on April 9, which involved a coke pit fire and damage to a tower at the coker unit, market participants expect it to resume operations at 50% load. This followed a separate fatal fire at the refinery in mid-March that resulted in five deaths. The successive incidents have cast a shadow over Mexico's full-year production increase plan. However, entering H2, coke output at Dos Bocas has continued to rebound, with daily production recovering to 4,000–5,000 mt. Stable shipments to India and Asia have started since July, slightly relieving pressure on US Gulf Coast cargoes, but the growth remains limited and insufficient to alter the tight balance landscape. Overall, the "recovery-driven production increases" in both countries were offset by incidents and infrastructure bottlenecks, resulting in H1 net global supply growth that was clearly below expectations. IV. Middle East: Core Refineries Hit, Saudi High- and Low-Sulphur Petroleum Coke Exports Hindered After the Middle East situation escalated on February 28, constrained regional crude exports pushed up oil prices and narrowed the heavy-light crude spread, directly weakening the economics of coker operations. The impact on petroleum coke supply has been particularly direct: Yasref refinery (Aramco/Sinopec, 400,000 b/d, Yanbu) has lowered coke production; Satorp refinery (Aramco/TotalEnergies, 460,000 b/d, Jubail) has faced shipment disruptions, with one processing unit damaged in a night attack on April 7–8, further tightening Saudi external supply. Saudi Arabia is the primary supplier of high-sulphur petroleum coke globally, especially to India and China. Disruptions to its production and shipments have directly intensified the tightness of spot high-sulphur petroleum coke in the Asian market. Notably, the supply disruption did not ease with the end of Q2—after the US-Iran temporary ceasefire agreement broke down on July 8, shipping in the Strait of Hormuz was again obstructed, and all cargoes from Saudi Arabia’s Jubail Satorp and Yanbu refineries were delayed, extending the supply interruption into early H2. 5. Russia: Exports to China Surge Against the Trend, Refinery Attacks Add Further Uncertainty Russia is one of the core sources of China’s petroleum coke imports. In H1, amid multiple disruptions, it exhibited a trajectory of “volume increase, attacks, and renewed tightening”: Import share rose against the trend: According to General Administration of Customs data, China’s total petroleum coke imports in H1 2026 reached 8.1103 million mt (YoY -2.24%), of which Russian petroleum coke imports amounted to 1.4361 million mt, a significant YoY increase of 221,000 mt, or 18.18%, lifting its import share to 18% and making it one of the few sources to grow against the trend in H1. Predominantly high-sulphur resources with diversified transport: Currently, Russian petroleum coke specifications remain largely high-sulphur resources. In addition to traditional sea transport, some traders choose to deliver via rail into China, mainly for use in prebaked anode and anode auxiliary material applications. Refinery attacks hit supply: Recently, the Russia-Ukraine situation has continued to deteriorate, damaging delayed coking units (CDU and secondary processing units) at core refineries such as Omsk. Russia’s overall refining capacity was paralyzed by over 40% at one point, with the affected products mainly being medium-sulphur petroleum coke with 1.8% sulphur and general-grade petroleum coke around 4% sulphur. According to market surveys, the Omsk refinery is expected to gradually resume production by end-July, while the Tatarstan refinery will resume in early September, leading to near-term supply tightening expectations. Overall, Russian petroleum coke supported China’s high-sulphur petroleum coke supply in H1 by “filling the gap with volume,” but the pace of refinery production resumptions and geopolitical risks in H2 will be key variables affecting the stability of exports to China. 6. China: Independent Refinery Output High Initially, Then Low; June Operating Rate Plummets to 42.69%As the world's largest petroleum coke consumer, China's domestic coke production also came under pressure in H1. According to SMM's monthly data on independent refineries: Total H1 volume: From January to June 2026, cumulative petroleum coke production at independent refineries was approximately 4.7831 million mt, down 148,100 mt from 4.9312 million mt in the same period of 2025, a 3.0% YoY decline. Monthly trend shaped higher at the start and lower later: January output of 867,300 mt (operating rate 66.24%) was the H1 high; it then declined month by month, with June output falling to 656,200 mt and the operating rate at only 42.69%. Compared to June 2025's 761,500 mt and 60.67%, the declines were 13.80% and 17.98 percentage points, respectively. Significant regional divergence: Shandong independent refineries produced about 3.5543 million mt in H1, up 8.2% YoY; non-Shandong independent refineries produced about 1.2291 million mt, a sharp 25.3% YoY decline. Shandong's share of total independent refinery production rose to around 74.3%. Structural highlights: Low-sulphur coke was relatively strong, supported by rigid demand from anode materials and prebaked anodes, while high-sulphur coke saw limited price gains due to downstream resistance to high prices but still moved its overall center higher. The structural tightness in high-quality low-sulphur resources during H1 is likely to remain the main theme throughout the whole year. 7. China Port Spot: Low-sulphur Coke Stays High and Firm, High-sulphur Coke Diverges Tightening supply has been reflected in domestic port spot prices. According to SMM's China port petroleum coke spot price monitoring, low-sulphur and high-sulphur coke prices showed clear divergence in H1: Low-sulphur coke stayed high with marginal supplement from imports: Represented by Brazilian and Argentine low-sulphur coke, imports of high-quality resources saw significant YoY growth in port arrivals during H1, and port spot prices long operated in the range of 4,100–4,500 yuan/mt. Indonesian low-sulphur coke port spot prices drifted higher from around 4,450 yuan/mt in January, touched a high of 4,900 yuan/mt at the end of April, and then pulled back to 4,600 yuan/mt by late July. Overall, low-sulphur coke demand is rigid (anode materials, high-end prebaked anodes) while incremental supply is insufficient, with imports providing only marginal supplementation, and the supply-demand mismatch supports the price center. Divergence within high-sulphur petroleum coke: US high-sulphur petcoke prices remain relatively firm, staying above 3,000 yuan/mt, while prices for high-sulphur petcoke from Russia, Saudi Arabia, and other sources are notably lower, with some grades trading only in the 1,400–2,000 yuan/mt range. The price spread reflects differences in cargo quality, shipping costs, and port arrival stability: cargoes from the US Gulf Coast are supported by rebounding EIA production and aggressive Indian buying, whereas Saudi high-sulphur petcoke is under pressure due to shipment disruptions from the Satorp and Yanbu refineries, leading to unstable port arrivals and depressed prices. Consolidating at recent highs: Since July, port spot prices have shown a pattern of mixed performance and consolidation at highs. Low-sulphur petcoke has softened slightly in the off-season demand period, but declines have been limited; high-sulphur petcoke prices have diverged due to different shipment paces from the US Gulf and the Middle East. Overall, the cost side (import average price up 37.88% YoY) provides solid support for domestic prices, leaving relatively small downside room. This price structure indicates that the global supply tightness in H1 was not simply an "overall shortage," but rather the result of structural tightness in low-sulphur resources combined with regional mismatches in high-sulphur resources. VIII. H2 Outlook Looking ahead to H2, whether global supply can truly shift from decline to growth depends on three key variables: the pace of de-escalation in the Middle East, the pace of resumption at accident-hit refineries in the US and Mexico, and the strength of export recovery after easing of sanctions on Venezuela. Against the backdrop of the maintenance peak receding and some units planning to resume production, the supply-demand gap is expected to narrow further and gradually return to balance. However, the structural tightness of high-quality low-sulphur resources may remain the main theme throughout the year.