H1 2026 copper equivalent (CuEq) production was up 3% YoY. The Oyu Tolgoi ramp-up plan progressed steadily, with H1 output up 31% YoY.Overall copper production in Q2 was 213,000 mt, down 7% both QoQ and YoY, mainly due to lower output from Rio Tinto’s Kennecott and Escondida mines.Additionally, the 2026 copper C1 net unit cost guidance was lowered to 30-50¢/lb (previously 65-75¢/lb).Aluminum business, the supply chain performed steadily, and bauxite recovered strongly. Q2 aluminum production rose 1% QoQ to 840,000 mt; bauxite production rose 14% QoQ to 15.2 million mt.

SMM, July 16: Domestic Bauxite: Supply disruptions push up domestic ore prices; alumina enterprises' long-term contract purchase prices rise overall Affected by coking coal-related incidents in Shanxi, mining in major domestic bauxite producing areas such as Shanxi and Henan faced some short-term disruptions, leading to phased changes in ore supply. Driven by supply tightening expectations, the domestic ore price center edged higher. Meanwhile, alumina prices remained at relatively high levels, and alumina enterprises' tolerance of rising raw material costs was moderate; in the short term, they mostly passively accepted the current ore prices. As of today, in Shanxi, bauxite with an Al/Si ratio of 5 and 60% alumina content, VAT-exclusive EXW price at crushing plants was around 530-550 yuan/mt; in Henan, bauxite with an Al/Si ratio of 5 and 60% alumina content, VAT-exclusive EXW price at crushing plants was around 500-540 yuan/mt; in Guiyang, bauxite with an Al/Si ratio of 6 and 60% alumina content, VAT-inclusive EXW price was 490-540 yuan/mt; in Guangxi, bauxite with an Al/Si ratio of 6 and 53% alumina content, VAT-exclusive EXW price at crushing plants was 320-335 yuan/mt. Imported Bauxite: Rising international oil prices drove up both mine costs and ocean freight rates, leading to diverging imported bauxite prices According to data as of July 10, weekly port departures of bauxite from major Guinean ports totaled 3.1869 million mt, down 219,400 mt from the previous week, with shipments basically stable. As US-Iran tensions heated up again, oil prices rose once more, and ocean freight rates from Guinea to China soon followed with an upward trend; market offers rose to the $34-35/mt range, and mine costs across various mines increased to varying degrees. Coupled with Guinean policy uncertainties and transport impacts from adverse weather, Guinean mines tightened control over bauxite shipments. In Australia, as of July 10, weekly port departures of bauxite from major Australian ports totaled 721,300 mt, down 346,800 mt from the previous week, a slight decline in shipments; further attention is needed on shipment pace from Australian mines and changes in port departures. As of July 10, China's bauxite port arrivals reached 3.9968 million mt, down 98,700 mt from the previous week; continued monitoring is required of the impact of elevated and fluctuating oil prices and ocean freight rates on future arrival pace and landed costs. In terms of prices, Guinean bauxite long-term contract quotations for July were in the $70-71.5/mt range, little changed from June. Meanwhile, bauxite inventories at domestic alumina refineries remained high, remaining relatively stable this week, with days of inventories at about 95 days, exerting some top pressure on ore prices. For Guinean bauxite, as transportation costs from Guinea to China rebounded and mine costs increased, coupled with the shipment reductions caused by the traditional rainy season and adverse weather, upstream producers and traders maintained firm quotes, remaining stable in the high price range of $70-72/mt; due to the dual impact of sustained high inventories and contracting profits, domestic alumina refineries lowered their intended transaction prices to $70/mt or lower; the upstream and downstream of the bauxite market experienced severe price divergences, market transactions slowed down, gradually returning to a state of bargaining. As of Thursday this week, a total of three bauxite transactions were reported: one deal of grade 45/3 Guinean bauxite was transacted at $70.5/mt CIF northern ports, with arrival expected in late August; one deal of grade 45/3 Guinean bauxite was transacted at $71/mt CIF northern ports; one deal of grade 45/3 Guinean bauxite was transacted at $72/mt CIF northern ports, with arrival expected from late July to early August. As of Thursday this week, Guinean bauxite FOB quotes were $38-40/mt, with the average price flat compared to last Thursday; Guinean bauxite CIF price was reported at $69-72/mt, with the average price falling by $0.5/mt from last Thursday; the SMM imported bauxite index price was reported at $70.36/mt, up $0.18/mt from last Thursday. Future bauxite prices will still depend on the cost situations of individual mines, the impact of Guinea's traditional rainy season and the government's bauxite export quota policy on overall shipments, and SMM will continue to closely monitor the market trends and transactions in the bauxite market. Overall, domestic ore market prices maintained the current level; meanwhile, inventories at domestic alumina refineries remained high (about 96 days), and the price negotiation between buyers and sellers continued; the uncertainty over Guinea's quota policy, the decline in shipments, and the traditional rainy season also exerted some upward pressure on bauxite costs. In the short term, due to the dual impact of costs and policy leading to reduced shipments, imported ore prices are expected to continue the high-level bargaining pattern; afterwards, close attention should be paid to the implementation of Guinea's quota policy and trends in ocean freight rates.

[Molybdenum Express] SMM July 16: Recently, several stainless steel enterprises in China have started mass production of products such as the low-molybdenum duplex stainless steel S32304. In terms of cost, compared with 316L and 2205, S32304 significantly reduces the usage of molybdenum and nickel alloys, meeting the demand for reducing molybdenum content and lowering costs under current high raw material prices. By relying on a high-chromium and high-nitrogen composition, it achieves chloride corrosion resistance equivalent to that of 316L, and its yield strength is nearly twice that of ordinary austenitic stainless steel, enabling thinner and lighter equipment sheets and plates and reducing total material usage. Additionally, it offers excellent resistance to stress corrosion and fatigue, along with stable welding performance, making it suitable for end-use industries such as water treatment, municipal environmental protection, and general chemical equipment.

[SMM In-Depth Analysis: New Energy Consumption Policy Reshapes Wafer Competitive Landscape: Production Lines Failing to Meet Level 3 Energy Efficiency Standards to Be Shut Down Starting 2027] The State Administration for Market Regulation and the Standardization Administration of China jointly issued the mandatory national standard GB 47835-2026, “Energy Consumption Limits per Unit Product of Monocrystalline Silicon,” in 2026. The standard will officially take effect on January 1, 2027.

SMM July 15 news: Today, the most-traded SHFE lead 2608 contract opened at 15,870 yuan/mt. Dragged down by the decline in LME lead, the SHFE lead continued its overnight fall after the opening, and the decline widened, hitting an intraday low of 15,565 yuan/mt, a new low since December 13, 2023. Meanwhile, losses in China's secondary lead sector expanded, with only 20-30% of secondary lead enterprises remaining in production. Additionally, downstream enterprises showed dip-buying interest, providing some support to lead prices. In the afternoon, the decline in SHFE lead slowed, and it eventually closed at 15,575 yuan/mt, down 1.86%. Open interest for SHFE lead on the day stood at 59,064 lots, a decrease of 5,089 lots from the previous trading day. Furthermore, the SHFE lead 2607 contract entered delivery today, with open interest of 3,060 lots, equivalent to 15,300 mt of lead ingot delivery. Compared with the current lead ingot social inventory of over 70,000 mt, this round of delivery will be completed smoothly. Also notably, LME lead inventory saw another single-day surge of 80,000 mt today, as invisible inventory in the trading system turned into visible inventory, putting significant psychological pressure on traders. Lead prices are expected to continue to consolidate on a weak note. Data source statement: Except for publicly available information, other data are processed by SMM based on public information, market communication, and SMM's internal database model. They are for reference only and do not constitute any decision-making advice.

According to preliminary statistics from the People's Bank of China, the stock of aggregate financing to the real economy (AFRE) stood at 462.06 trillion yuan at end-June 2026, while the cumulative flow of AFRE in H1 2026 reached 20.84 trillion yuan, up 7.4% YoY. RMB loans increased by 10.72 trillion yuan in H1. At end-June, broad money (M2) balance was 356.71 trillion yuan, up 8% YoY. Narrow money (M1) balance was 118.48 trillion yuan, up 4% YoY. Currency in circulation (M0) balance was 14.74 trillion yuan, up 11.8% YoY. Net cash injection in H1 amounted to 641.7 billion yuan. Financial Statistics Report for H1 2026 I. Stock of AFRE up 7.4% YoY Preliminary statistics show that the stock of AFRE at end-June 2026 reached 462.06 trillion yuan, up 7.4% YoY. Specifically, outstanding RMB loans to the real economy were 279.16 trillion yuan, up 5.3% YoY; outstanding foreign currency loans to the real economy (RMB equivalent) were 1.18 trillion yuan, down 2.9% YoY; entrusted loans were 11.24 trillion yuan, up 0.5% YoY; trust loans were 4.62 trillion yuan, up 4% YoY; undiscounted bankers' acceptances were 2.02 trillion yuan, down 2.8% YoY; corporate bonds outstanding were 36.08 trillion yuan, up 8.9% YoY; government bonds outstanding were 101.36 trillion yuan, up 14.2% YoY; and domestic equity of non-financial enterprises stood at 12.49 trillion yuan, up 5% YoY. In terms of structure, at end-June, outstanding RMB loans to the real economy accounted for 60.4% of the total AFRE stock, down 1.2 percentage points YoY; foreign currency loans (RMB equivalent) accounted for 0.3%, flat YoY; entrusted loans accounted for 2.4%, down 0.2 ppt YoY; trust loans accounted for 1%, flat YoY; undiscounted bankers' acceptances accounted for 0.4%, down 0.1 ppt YoY; corporate bonds accounted for 7.8%, up 0.1 ppt YoY; government bonds accounted for 21.9%, up 1.3 ppt YoY; and domestic equity of non-financial enterprises accounted for 2.7%, down 0.1 ppt YoY. II. Cumulative AFRE Flow in H1 Reached 20.84 Trillion Yuan Preliminary statistics show that the cumulative AFRE flow in H1 2026 was 20.84 trillion yuan, 2.02 trillion yuan less than the same period last year. In detail, new RMB loans to the real economy increased by 10.76 trillion yuan, 1.98 trillion yuan less YoY; foreign currency loans (RMB equivalent) to the real economy increased by 160.9 billion yuan, 224.7 billion yuan more YoY; entrusted loans decreased by 78.8 billion yuan, with the decline widening by 27.5 billion yuan YoY; trust loans decreased by 44.6 billion yuan, with the decline widening by 188.9 billion yuan YoY; undiscounted bankers' acceptances decreased by 125.6 billion yuan, with the decline widening by 69.8 billion yuan YoY; net corporate bond financing was 2.07 trillion yuan, 916.7 billion yuan more YoY; net government bond financing was 6.44 trillion yuan, 1.22 trillion yuan less YoY; and domestic equity financing by non-financial enterprises was 293.3 billion yuan, 122.4 billion yuan more YoY. 3. Broad Money Increased 8% At the end of June, broad money (M2) balance stood at 356.71 trillion yuan, up 8% YoY. Narrow money (M1) balance stood at 118.48 trillion yuan, up 4% YoY. Currency in circulation (M0) balance stood at 14.74 trillion yuan, up 11.8% YoY. In H1, net cash injection into the economy was 641.7 billion yuan. 4. RMB Deposits Increased by 17.76 Trillion Yuan in H1 At the end of June, the balance of domestic and foreign currency deposits stood at 354.33 trillion yuan, up 8.2% YoY. At month-end, the balance of RMB deposits stood at 346.44 trillion yuan, up 8.2% YoY. In H1, RMB deposits increased by 17.76 trillion yuan. Specifically, household deposits increased by 7.58 trillion yuan, non-financial enterprise deposits increased by 3.2 trillion yuan, fiscal deposits increased by 971.5 billion yuan, and deposits of non-banking financial institutions increased by 4.65 trillion yuan. At the end of June, the balance of foreign currency deposits stood at $1.16 trillion, up 13.7% YoY. In H1, foreign currency deposits increased by $98 billion. 5. RMB Loans Increased by 10.72 Trillion Yuan in H1 At the end of June, the balance of domestic and foreign currency loans stood at 286.43 trillion yuan, up 5.1% YoY. At month-end, the balance of RMB loans stood at 282.63 trillion yuan, up 5.2% YoY. In H1, RMB loans increased by 10.72 trillion yuan. By sector, household loans decreased by 366.8 billion yuan, with short-term loans decreasing by 588.1 billion yuan and medium and long-term loans increasing by 221.2 billion yuan; loans to enterprises (including public institutions) increased by 11.13 trillion yuan, with short-term loans increasing by 4.59 trillion yuan, medium and long-term loans increasing by 5.55 trillion yuan, and bill financing increasing by 814.3 billion yuan; loans to non-banking financial institutions decreased by 422.3 billion yuan. At the end of June, the balance of foreign currency loans stood at $557.7 billion, down 0.6% YoY. In H1, foreign currency loans increased by $12.7 billion. 6. In June, the monthly weighted average interest rate for interbank RMB lending was 1.41%, and the monthly weighted average rate for pledged bond repos was 1.43% In H1, the interbank RMB market saw a total transaction volume of 1,169.05 trillion yuan through lending, outright bond trading, and repos, with a daily average turnover of 9.74 trillion yuan, up 20% YoY. Of this, the daily average turnover for interbank lending increased 36% YoY, for outright bond trading increased 6.9% YoY, and for pledged repos increased 22.5% YoY. In June, the weighted average interest rate for interbank lending was 1.41%, 0.1 percentage points higher than the previous month and 0.05 percentage points lower than the same period last year; the weighted average rate for pledged repos was 1.43%, 0.1 percentage points higher than the previous month and 0.07 percentage points lower than the same period last year. VII. Balance of Foreign Exchange Reserves at $3.42 Trillion At end-June, the balance of foreign exchange reserves stood at $3.42 trillion. At end-June, the RMB exchange rate was 6.8109 yuan per US dollar. VIII. Cross-border RMB Settlement under the Current Account in H1 Amounted to 9.83 Trillion Yuan, and Direct Investment Cross-border RMB Settlement Reached 4.17 Trillion Yuan In H1, cross-border RMB settlement under the current account amounted to 9.83 trillion yuan, of which goods trade and services trade & other current account items were 7.71 trillion yuan and 2.12 trillion yuan, respectively. Direct investment cross-border RMB settlement amounted to 4.17 trillion yuan, of which outward direct investment and foreign direct investment were 1.5 trillion yuan and 2.67 trillion yuan, respectively. Recommended Reading: Latest Financial Data Released: End-February M2 and Outstanding Aggregate Financing Up 8.7% and 9.0% YoY; Here's What Authoritative Experts Say! Aggregate Financing and New RMB Loans in First Two Months Hit Second-Highest on Record for Same Period; February M2 Up 8.7% YoY January 2024 New Aggregate Financing 6.5 Trillion Yuan, New Loans 4.92 Trillion Yuan, M2 Up 8.7% YoY PBoC: December Aggregate Financing Increment 1.94 Trillion Yuan, New RMB Loans 1.17 Trillion Yuan, M2 Up 9.7% YoY PBoC: November Aggregate Financing Increment 2.45 Trillion Yuan, New RMB Loans 1.09 Trillion Yuan, M2 Up 10% YoY November Financial Data Released: Aggregate Financing Continued to Grow YoY; Credit Support for Real Economy Remains Solid Will Trillion-Yuan Government Bonds "Prop Up" October Money and Credit Data? Market Expects Strong Aggregate Financing but Weak Lending; RRR Cut Expectations Still Brewing PBoC: October Aggregate Financing Increment 1.85 Trillion Yuan, New RMB Loans 738.4 Billion Yuan, M2 Up 10.3% YoY PBoC: September Aggregate Financing Increment 4.12 Trillion Yuan, New RMB Loans 2.31 Trillion Yuan, M2 Up 10.3% YoY PBoC Makes Major Announcement! Discusses China-U.S. Interest Rate Spread, September Financial Data, Existing Home Loan Rates... General Administration of Customs: China's Foreign Trade in First Three Quarters Improved; September Posted Highest Monthly Figure This Year PPI and CPI Improve for Third Month in a Row; Experts Say Price Recovery Further Confirmed, PPI YoY Improvement Expected to Persist NBS: September CPI Stable, PPI Decline Narrows for Third Straight Month, Both Up MoM September Phone Exports Value Doubled MoM; Auto Exports YoY Growth Continued to Lead PBoC: August Aggregate Financing Increment 3.12 Trillion Yuan, New RMB Loans 1.36 Trillion Yuan, M2 Up 10.6% YoY PBoC: Will Act Decisively to Prevent Exchange Rate Overshooting! Dollar Plunges Against Offshore Yuan PBoC: August Aggregate Financing 528.2 Billion Yuan, New RMB Loans 345.9 Billion Yuan, M2 Up 10.7% YoY PBoC: June Aggregate Financing, New RMB Loans Far Exceed Expectations; M2 Up 11.3% YoY PBoC: May Aggregate Financing Increment 1.56 Trillion Yuan, Up 331.2 Billion Yuan From Previous Month PBoC: May RMB Loans Rose 1.36 Trillion Yuan, Previous 718.8 Billion Yuan PBoC: May RMB Deposits Rose 1.46 Trillion Yuan, Down 1.58 Trillion Yuan YoY PBoC: April Aggregate Financing Increment 1.22 Trillion Yuan, New RMB Loans 718.8 Billion Yuan, M2 Up 12.4% YoY PBoC: Q1 RMB Deposits Rose 15.39 Trillion Yuan, Loans Rose 10.6 Trillion Yuan

Rio Tinto released its production results for the second quarter of 2026. According to the report, Rio Tinto’s lithium production in Q2 stood at 14,600 tonnes of lithium carbonate equivalent (LCE), up 20% year-on-year and 15% quarter-on-quarter. By product, lithium carbonate output reached 13,900 tonnes, lithium hydroxide output was 5,300 tonnes, and other specialty lithium products stood at 1,100 tonnes on an LCE basis. Rio Tinto noted in the announcement that, as its lithium business is vertically integrated, the production volumes of different lithium products should not be directly added together. In terms of production changes, Rio Tinto’s Q2 lithium output growth was mainly driven by the ramp-up of the Rincón starter plant in Argentina, as well as the earlier-than-scheduled first production from the Sal de Vida and Fénix 1B projects. The Rincón starter plant produced 385 tonnes of LCE in the second quarter. Year to date, Rio Tinto’s lithium production declined 7% year-on-year, mainly due to the Mt Cattlin mine being placed on care and maintenance at the end of March 2025, which weighed on hard-rock lithium output. On project progress, construction of the full-scale Rincón lithium plant is advancing and remains in the early execution stage. Current work is focused on key infrastructure, including camp facilities, utilities and pipelines, while site earthworks, early preparation works and supporting infrastructure construction are also underway. The Sal de Vida project achieved first production ahead of schedule in Q2 and is currently in the commissioning stage. The Fénix 1B expansion project also delivered first production ahead of schedule in Q2 and has entered commissioning. Rio Tinto previously disclosed that Sal de Vida has a planned capacity of 15,000 tonnes of LCE per year, while the Fénix 1B expansion has a planned capacity of 10,000 tonnes of LCE per year. In terms of prices, the average CIF China, Japan and Korea price stood at US$22,043/tonne in the second quarter of 2026. Meanwhile, Rio Tinto’s average realised lithium product price in the first half of 2026 was US$18,960/tonne LCE. In addition, the Nemaska Lithium project is planned to deliver first production in 2028. Following an in-depth review initiated in the first quarter, the construction pace of its Bécancour processing plant will slow in 2026. The plant is currently more than 70% complete. Necessary activities such as asset preservation and site integrity works will continue, while other activities will be paused or deferred and the contractor workforce will be temporarily reduced. Rio Tinto previously disclosed that the Nemaska Lithium project is located in Quebec, Canada, with Rio Tinto holding a 50% interest. The project has a planned capacity of 28,000 tonnes of LCE per year, producing integrated lithium hydroxide. SMM believes Rio Tinto’s year-on-year and quarter-on-quarter growth in Q2 lithium output mainly reflects the gradual production ramp-up of its Argentine brine assets, particularly as Sal de Vida and Fénix 1B achieved first production ahead of schedule. This indicates that the execution progress of the company’s brine lithium project portfolio is slightly ahead of previous expectations. In the short term, as these new projects remain in the commissioning and ramp-up stages, their actual contribution to global lithium supply still requires further observation. In the medium to long term, as Rincón, Sal de Vida and the Fénix expansion continue to advance, Rio Tinto’s capacity weighting in South American brine lithium resources is expected to increase further. However, the care and maintenance status of Mt Cattlin and the slower construction pace at Nemaska also suggest that, under the current lithium price environment, mining companies are continuing to adjust development priorities across different assets based on project economics and capital expenditure pressure.

Recently, the winning bid result was announced for the [Huaneng North China Branch Yangliuqing Thermal Power Company Great Wall Tianjin Haval Car Maker Distributed PV Project General Contracting (EPC) Project]. The bid winner for the project is Huazhao Electric Power Technology (Tianjin) Co., Ltd., with a winning bid amount of 52,490,000 yuan, equivalent to a unit price of 2.79 Yuan/W. It is reported that the bid inviter is Tianjin Huaneng Yangliuqing Thermal Power Co., Ltd. The project is located in the Tianjin Development Zone, with a planned DC side installed capacity of 18800.18kWp.

[Jinhui Mining Expects Strong H1 2026 Earnings Growth] Jinhui Mining estimates that net profit attributable to the parent company for the first half of 2026 will reach RMB 400–420 million, increasing by RMB 146.88–166.88 million year-on-year, equivalent to growth of 58.03%–65.93%. The earnings increase was mainly supported by higher year-on-year prices for silver and zinc, as well as increased production and sales volumes of zinc concentrate.

[SMM Zinc Morning Brief: US Dollar Index Rose from Lows, LME Zinc Stays High]: Last Friday, LME zinc opened at $3,616.5/mt. After opening, LME zinc drifted higher, touching a high of $3,637.5/mt before pulling back all the way. Near the night session, LME zinc dipped to a low of $3,580/mt. Then LME zinc rebounded from the low to near the daily average line, finally settling at $3,611.5/mt, down $4.5/mt or 0.12%. Trading volume decreased to 12,329 lots, and open interest fell by 469 lots to 268,000 lots...