Ferrochrome Price Review Ferrochrome prices saw no adjustments this week. As of August 21, 2026: Inner Mongolia high‑carbon ferrochrome is RMB 7,850‑8,000 /50‑metric‑ton base unit; Sichuan and Northwest China high‑carbon ferrochrome is RMB 7,950‑8,050 /50‑metric‑ton base unit; East China high‑carbon ferrochrome is RMB 8,300‑8,400 /50‑metric‑ton base unit; Kazakh high‑carbon ferrochrome is RMB 9,200‑9,300 /50‑metric‑ton base unit; The high‑carbon ferrochrome steel tender expectation index registered RMB 8,030.23 /50‑metric‑ton base unit, with mainstream market expectations pointing to flat or modestly lower prices. Demand Side The downstream stainless steel market trended weakly this week. Futures slipped, and spot prices followed suit. Although the traditional peak consumption season of “Golden September & Silver October” is approaching, market confidence remains subdued. Steel mills show low willingness for pre‑stockbuilding, and there has been no material recovery in inquiries and procurement for ferrochrome. Most market participants take a wait‑and‑see approach and will formulate plans after major steel mills release tender prices next month. Supply Side Domestic ferrochrome production presents widening north‑south divergence. Smelters in southern regions such as Guangxi and Guizhou have cut output amid cost‑margin inversion, dragging down regional ferrochrome output. Inner Mongolia in the north maintains stable operation with output staying at high levels, and overall ferrochrome supply remains ample. On the import front, insufficient production resumption in South Africa and high costs in Zimbabwe keep imports low, exerting little near‑term market impact. Overall, supply surplus is the core theme, and ferrochrome prices are expected to run soft in the short term. Chrome Ore Price Review As of August 21, 2026, Tianjin Port quotations: South African 40‑42% chrome concentrate ore at RMB 53.5‑54.5 /dmtu; Zimbabwean 48‑50% chrome concentrate ore at RMB 58.5‑60 /dmtu; Turkish 40‑42% chrome lumpy ore at RMB 70‑71 /dmtu, flat week‑on‑week. Overseas offers: South African 40‑42% chrome concentrate ore at USD 285 /ton, flat week‑on‑week; Zimbabwean 48‑50% chrome concentrate ore at USD 365‑375 /ton, up USD 5 week‑on‑week; Turkish 40‑42% chrome lumpy ore at USD 340‑350 /ton, up USD 10 week‑on‑week. Supply Side Chrome ore port inventories fluctuate around the extremely high level of 5 million tonnes, keeping supply loose. South African chrome ore fines are sufficiently available. Major overseas mines have kept offers unchanged for two consecutive rounds, underpinning price floors while capping the upside for chrome ore prices. Supply of mainstream‑origin chrome ore and high‑grade chrome ore concentrates is tight. Rising ocean freight rates push up transportation costs; forward prices from overseas mines remain firm, increasing cost pressure for traders and reinforcing their price‑holding sentiment. Supported by the above factors, spot quotations remained stable this week amid stalemated bargaining between buyers and sellers, with limited physical concluded trades. Demand Side Entering a new round of steel tender bidding cycle, wait‑and‑see sentiment prevails across the market. Ferrochrome smelters stay prudent and avoid long‑term stockbuilding. In addition, ferrochrome supply surplus weighs on ferrochrome prices. Smelters are under heavy production‑cost pressure and inventory‑liquidation pressure, showing limited willingness to purchase raw‑material chrome ore, and no large‑scale bulk buying has taken place. Only sporadic small‑volume deals were closed this week, preventing sharp price swings.

Grain-Oriented Silicon Steel Price Dynamics Shanghai B23R085 Grade: 11,900-11,900 yuan/mt Wuhan 23RK085 Grade: 11,300-11,300 yuan/mt This week, China's grain-oriented silicon steel market was in the doldrums. Prices in mainstream markets in Shanghai and Wuhan remained stable, with no public price adjustment operations, and overall transaction performance was average. Supply side, production schedules of mainstream steel mills remained stable. After the August EXW base price of grain-oriented silicon steel was raised by 50 yuan/mt, mainstream steel mills such as Baosteel and Shougang Group have released September futures price policies, with the base price of grain-oriented silicon steel raised by another 50 yuan/mt, marking two consecutive months of EXW price increases (Sina Finance). Raw material costs combined with the September price hike policies further strengthened cost bottom support, and steel mills' willingness to hold prices firm was strong, providing strong support for spot market prices. However, the current period is the traditional off-season for demand, and the positive impact of steel mills' price increases is blocked from being transmitted downstream, with spot prices lacking momentum to follow up and being unable to drive spot prices to rise. Demand side, under high-temperature weather, the transformer industry enters a traditional off-season, and the pace of power grid tender projects landing is relatively slow. End-user transformer enterprises adopt conservative procurement strategies, mostly maintaining only essential scattered replenishment, with insufficient willingness for active batch stockpiling. Market communication atmosphere is sluggish, and industry participants are generally cautious. Overall, supply and demand continue to compete. Two consecutive rounds of EXW price increases by steel mills in August and September, combined with raw material costs, effectively limit the room for deep price declines. However, there is no clear signal of demand recovery in the short term. It is expected that grain-oriented silicon steel will remain stable next week, continuing the pattern of in-the-doldrums consolidation, with market transactions still dominated by essential demand. The market will continue to monitor the progress of power grid tender fulfillment, downstream transformer enterprise production schedules, and fluctuations in raw material costs. Data Source Statement: (Except for publicly available information, all other data in this report are derived from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, NBS data, customs import/export data, various data released by major associations and institutions, etc.), market communication, and relying on SMM's internal database models, comprehensively analyzed and reasonably inferred by the research team. This report is for reference only and does not constitute decision-making advice. SMM reserves the right of final interpretation of this statement and reserves the right to adjust and modify the content of the statement based on actual circumstances.

The average price of SMM 10-12% high-grade NPI fell by 5.6 yuan/nickel unit WoW to 1,127.4 yuan/nickel unit (ex-factory, tax included), while the average price of the Indonesia NPI FOB index dropped by 0.61 $/nickel unit WoW to 145.91 $/nickel unit. This week, overall trading in the spot market for high-grade NPI remained mediocre, with insufficient market activity and the market continuing to operate under pressure in a deadlock.

South Korea’s lithium market gradually regained momentum through July as the June–July price correction encouraged buyers to reassess procurement. Lithium carbonate drew growing interest from LFP, ESS and conversion demand, while lithium hydroxide improved around selected high-nickel projects. H2 demand will increasingly depend on actual production ramp-ups.

Non-Oriented Silicon Steel Price Dynamics Shanghai B50A800 grade: 4,350-4,350 yuan/mt Guangzhou B50A800 grade: 4,150-4,150 yuan/mt Wuhan 50WW800 grade: 4,150--4,150 yuan/mt Shanghai market: This week, the spot price of cold-rolled non-oriented silicon steel in the Shanghai market was in the doldrums, with overall market transactions remaining sluggish in the off-season. Market feedback indicated that the HRC futures consolidated and strengthened this week, providing slightly stronger cost support for non-oriented silicon steel. However, the current supply-demnd imbalance in silicon steel was quite prominent, and downstream purchasing enthusiasm was low. Some motor enterprises mainly purchased as needed. Even with reduced supply, overall sales pressure remained significant. Overall, it is expected that next week, the spot price of cold-rolled non-oriented silicon steel in Shanghai will remain in the doldrums, fluctuating with costs. Guangzhou market: This week, the cold-rolled non-oriented silicon steel market in Guangzhou strengthened slightly, with prices raised by 10-20 yuan/mt, but transactions were sluggish. Market feedback indicated that the HRC futures strengthened this week, but the cost increase provided weak guidance on spot prices. The industry was still in the traditional consumption off-season, with downstream motor and other end-user enterprises maintaining low operating rates and conservative procurement attitudes. Overall stockpiling willingness was low. Overall, it is expected that next week, the cold-rolled non-oriented silicon steel price in Guangzhou will be in the doldrums. Wuhan market: This week, the cold-rolled non-oriented silicon steel market in Wuhan held stable temporarily, with poor transaction performance. Market feedback indicated that the HRC futures consolidated and strengthened this week, but market confidence was insufficient, and actual transactions still allowed for negotiation. Downstream enterprises were moderately active in purchasing, mainly making just-in-time procurement. Most participants held a cautious attitude toward future market trends. Overall, it is expected that next week, the spot price of cold-rolled non-oriented silicon steel in Wuhan will remain in the doldrums. Data Source Declaration: (Except for publicly available information, all other data in this report are publicly available information (including but not limited to industry news, seminars, exhibitions, enterprise financial reports, securities reports, National Bureau of Statistics (NBS) data, customs import and export data, various data released by major associations and institutions, etc.), market communication, and rely on SMM’s internal database models. They are comprehensive analyses and reasonable inferences made by the research team, for reference only, and do not constitute decision-making advice. SMM reserves the final right to interpret these terms and conditions, and reserves the right to adjust and modify the content of the disclaimer according to actual circumstances.

The first-phase target has increased from 17 GW to 30 GW, but storage, grid readiness, financing and local-content rules will determine how quickly policy ambition becomes equipment demand.

Galvanized-Cold Rolled Spread Consolidated at Lows in 2026, Significantly Below Previous Years' Levels Since early 2026, the galvanized-cold rolled spread has been moving extremely sideways in the 220-300 yuan/mt range, with an average of 273 yuan/mt, significantly below the 414 yuan/mt average in the same period of 2025. SMM Galvanized-Cold Rolled Spread Chart Source: SMM Looking back at historical data, from 2023 to 2025, the galvanized-cold rolled spread showed clear seasonal characteristics, with the spread quickly shooting up in Q2 as downstream demand recovered, reaching a yearly high in mid-year before gradually pulling back. However, in 2026, the spread broke its historical pattern, consolidating at narrow low levels throughout the year, without the significant expansion seen in Q2 of previous years. In H1 2026, the galvanized-cold rolled spread mostly consolidated in the 220-300 yuan/mt range, with minor fluctuations in January-March, and after hitting a yearly low in May, it slowly edged up, with a peak only approaching 300 yuan/mt, significantly below the 500-800 yuan/mt peak levels in the same period of previous years. The prolonged suppression of the galvanized-cold rolled spread is fundamentally due to constraints from both supply and demand. On the supply side, the concentrated release of new production lines for China domestic galvanizing and zinc-aluminum-magnesium products has intensified competition, significantly compressing the upside room for galvanizing processing fees. On the demand side, real estate-related galvanizing consumption remained relatively weak; although automotive and home appliance demand showed resilience, the overall incremental demand for galvanized sheet was limited, and exports of galvanized sheet were unable to fully absorb the new capacity, significantly weakening the boost effect from peak seasons. Meanwhile, on the cost side, ample supply of cold-rolled substrate and its low price level, along with difficulties for zinc price fluctuations to fully support galvanized sheet costs, further curbed the upward movement room for the galvanized-cold rolled spread. In H2 2026, the galvanized-cold rolled spread is expected to continue moving sideways in the current range or narrow upward fluctuations Looking ahead to H2 2026, the probability of a significant rise in the spread is low; under a neutral scenario, it may continue moving sideways in the 260-340 yuan/mt range. If manufacturing orders show marginal improvement during the September-October peak season, the spread may have a slight upward opportunity, but due to capacity constraints, the upside room is limited. If peak season demand falls short of expectations, the spread faces downward pressure to 220-250 yuan/mt. Further sharp contraction in the spread would lead to larger losses for steel mills, forcing some galvanizing production lines to undergo maintenance or cut production, providing bottom support for the spread. Overall, against the backdrop of overcapacity and weak demand, the galvanized-cold rolled spread is unlikely to return to previous high levels, and is more likely to fluctuate in a range following marginal changes in demand.

In 2026, the galvanized–cold-rolled price spread moved sideways at lows, significantly below the levels of previous years From the beginning of 2026 to date, the galvanized–cold-rolled price spread has remained in an extremely narrow range of 220-300 yuan/mt, averaging 273 yuan/mt, significantly below the average of 414 yuan/mt over the same period in 2025. SMM Galvanized–Cold-Rolled Price Spread Chart Source: SMM Looking back at prior years, the galvanized–cold-rolled price spread in 2023 and 2025 showed clear seasonality: in Q2 each year, the spread shot up rapidly as downstream demand recovered, then gradually pulled back after reaching the annual high around mid-year. However, in 2026 the galvanized–cold-rolled price spread broke this established pattern, staying in a narrow low range throughout the year, with no sharp expansion seen in Q2 of previous years. In H1 2026, the galvanized–cold-rolled price spread basically consolidated within the 220-300 yuan/mt range, with slight fluctuations from January to March; after touching the year’s low in May, it edged up slowly, and even the peak was only close to 300 yuan/mt, significantly below the high levels of 500-800 yuan/mt over the same period in previous years. The key reason the galvanized–cold-rolled price spread has remained suppressed is the dual constraints from both supply and demand. Supply side, new production lines for galvanizing and Zn-Al-Mg in China were released in a concentrated manner, intensifying industry competition and significantly compressing the upside room for galvanizing processing fees. Demand side, real-estate-related galvanized consumption remained generally weak; while demand from autos and home appliances showed resilience, overall it provided limited growth in demand for galvanized sheet. Exports of galvanized sheet also struggled to fully absorb the new capacity, and the boost from the peak season weakened noticeably. Meanwhile, cost side, cold-rolled substrate supply was ample and prices were also at low levels; fluctuations in zinc prices were unable to fully support the cost of galvanized sheet, and insufficient cost support further constrained the upside room for the galvanized–cold-rolled price spread to fluctuate upward. In H2 2026, the galvanized–cold-rolled price spread is likely to extend the current range or fluctuate slightly upward within a narrow band Looking ahead to H2 2026, the probability of a sharp rise in the galvanized–cold-rolled price spread is low; under the base-case scenario, it may continue to move sideways within the 260-340 yuan/mt range. If manufacturing orders improve at the margin during the September-October peak season, the spread may have an opportunity to edge up slightly, but upside room is limited due to capacity constraints. If peak-season demand falls short of expectations, the spread will face pressure to pull back to 220-250 yuan/mt. Further sharp narrowing of the spread would lead to larger-scale losses for steel mills, forcing maintenance and production cuts at some galvanizing lines, thereby providing bottom support for the spread. Overall, against the backdrop of overcapacity and weak demand, the galvanized–cold-rolled price spread is unlikely to reach the higher levels seen in previous years, and will more likely fluctuate within a range in line with marginal changes in demand. Data Source Statement: (Except for public information, all other data in this report are derived from public information (including but not limited to industry news, seminars, exhibitions, enterprise financial reports, brokerage reports, National Bureau of Statistics (NBS) data, customs import and export data, and various data released by major associations and institutions), market communication, and SMM’s internal database models. They are obtained through comprehensive analysis and reasonable inference by the research team, are for reference only, and do not constitute decision-making advice. SMM reserves the right of final interpretation of the terms of this statement and the right to adjust and revise the content of this statement according to actual circumstances.

News Release, August 20, 2026: According to China Customs statistics, China's total imports of high‑carbon ferrochrome stood at 132,800 tonnes in July 2026, down 9.87% month‑on‑month and 41.45% year‑on‑year. Imports from South Africa registered zero (31,200 tonnes in June); imports from Kazakhstan reached 84,400 tonnes, up 1.21% month‑on‑month and 7.02% year‑on‑year; imports from India totalled 23,900 tonnes, rising 50.59% month‑on‑month and 124.45% year‑on‑year; imports from Zimbabwe amounted to 22,900 tonnes, climbing 72.11% month‑on‑month but falling 7.27% year‑on‑year. From January to July 2026, China's cumulative imports of high‑carbon ferrochrome totalled 958,100 tonnes, a year‑on‑year drop of 42.65%. Imports from South Africa were 131,300 tonnes, plunging 82.94% year‑on‑year; imports from Kazakhstan hit 563,500 tonnes, down 6.73% year‑on‑year; imports from India stood at 113,100 tonnes, increasing 40.08% year‑on‑year; imports from Zimbabwe came in at 138,600 tonnes, falling 14.06% year‑on‑year. Constrained by power supply issues, South Africa's ferrochrome recovery progresses slowly with low plant operating rates. Full‑scale production restart is not expected until Q4 2026, so short‑term import inflows will have limited impact on the Chinese market. The Government of Zimbabwe has set 2026 as the deadline for ferrochrome smelters to switch to self‑generated power. Higher power costs have put ferrochrome production under margin pressure, leading to lower output. Meanwhile, domestic Chinese ferrochrome output keeps rising, creating an overall supply surplus. Prices drift lower, which weighs down import volumes. In addition, the market is in the traditional consumption off‑season with weak end‑user performance. Downstream steel mills adopt cautious purchasing sentiment, and softer demand keeps ferrochrome imports at a low level. High‑carbon ferrochrome from Kazakhstan features high grade and is largely consumed by special steel mills. Its relatively steady demand results in limited import volatility, making Kazakhstan China's largest ferrochrome import source. India has expanded its high‑carbon ferrochrome production capacity and lifted supply, driving a notable year‑on‑year increase in import volumes in 2026.

August 20, 2026: According to China Customs statistics, Chin's total chrome ore imports stood at 2.6 million tonnes in July 2026, down 6.73% month‑on‑month and up 32.03% year‑on‑year. Of this volume, imports from South Africa reached 2.18 million tonnes, falling 3.86% month‑on‑month while rising 34.62% year‑on‑year; imports from Türkiye totalled 0.11 million tonnes, climbing 10.59% month‑on‑month and 29.42% year‑on‑year; imports from Zimbabwe amounted to 0.24 million tonnes, dropping 13.62% month‑on‑month but surging 64.76% year‑on‑year. From January to July 2026, China's cumulative chrome ore imports hit 16.66 million tonnes, a year‑on‑year increase of 39.92%. Imports from South Africa totalled 13.39 million tonnes, up 35.62% year‑on‑year; imports from Türkiye were 0.9 million tonnes, jumping 126.6% year‑on‑year; imports from Zimbabwe came in at 1.51 million tonnes, rising 62% year‑on‑year. The restart‑up progress of South African ferrochrome production remains relatively slow, and surplus chrome ore is still largely channelled for export. Although July's South African chrome ore imports posted a mild month‑on‑month decline, the year‑on‑year growth was substantial, cementing South Africa's dominant position in China's chrome ore supply. Zimbabwe saw lower shipment and arrival volumes due to constrained port capacity and export permit restrictions. Nevertheless, with mining capacity ramping up, its year‑on‑year import growth was robust, making it China's second‑largest chrome ore import source. For mainstream‑origin chrome ore, geopolitical conflicts have extended shipping lead‑times, and cargoes shipped earlier arrived in Chinese ports in concentrated volumes in July, leading to a notable month‑on‑month gain. Overall, chrome ore imports stayed at elevated levels. Amid the off‑season for downstream consumption, ferroalloy mills avoided long‑term stock building, resulting in continuous inventory build‑up and ample supply. Consequently, chrome ore prices lack sustained upward momentum.