China’s hydrogen energy industry is currently in a critical transition phase from demonstration validation toward large‑scale commercial deployment. In 2026, commissioned and under‑construction renewable‑energy‑based hydrogen production capacity across China has exceeded 1 million tons per annum. Nevertheless, fossil‑fuel‑based hydrogen still dominates the supply mix, and the share of green hydrogen remains low. Recently, China’s hydrogen market has been characterised by steadily falling production‑end prices, high‑level volatility at the consumption end, prominent regional price differentials, and continuous narrowing of the price gap between grey and green hydrogen. Carbon‑market mechanisms, storage‑and‑transport infrastructure, wind‑solar resource endowments and long‑term supply contracts jointly shape current price trends. Meanwhile, the localisation of hydrogen‑production equipment and the construction of cross‑regional hydrogen‑transmission pipelines are reshaping the medium‑ and long‑term hydrogen‑price curve. In terms of spot‑market performance, industrial hydrogen in China is traded mainly via annual and quarterly long‑term contracts, with limited spot liquidity and marked regional price divergence. According to China Hydrogen Price Index monitoring for June 2026, ordinary hydrogen in the Yangtze River Delta stood at approximately 33.69 CNY/kg, while clean hydrogen was priced at 34.34 CNY/kg. The price in Tangshan reached 34.83 CNY/kg. Constrained by supply‑demand fundamentals and logistics, the Pearl River Delta recorded 38.13 CNY/kg. Ample local supply pushed prices down to 29.33 CNY/kg in Henan Province. In Xinjiang, by contrast, insufficient hydrogen‑export capacity pushed terminal prices to 40.25 CNY/kg. On the grey‑hydrogen production side, coal‑to‑hydrogen costs in coal‑abundant central‑western China sit at around 12 CNY/kg, representing the country’s cost floor. Driven by higher feedstock costs, grey‑hydrogen production costs in eastern coastal regions range from 14 CNY/kg to 18 CNY/kg. At present, the national average production‑side hydrogen price is roughly 26 CNY/kg, yet the average terminal consumption price approaches 44‑45 CNY/kg, implying a storage‑and‑transport premium of around 18 CNY/kg. For long‑haul transport over 500 km, high‑pressure tube‑trailer costs can surge above 20 CNY/kg, largely erasing the cost advantage of low‑cost production bases. Green‑hydrogen pricing is reaching an important inflection point. Driven by large‑scale localisation‑driven price declines of alkaline electrolyser units and falling electricity tariffs at large‑scale wind‑solar bases, green‑hydrogen production costs at selected demonstration projects in resource‑rich northwest regions such as Inner Mongolia and Xinjiang have fallen to 14‑18 CNY/kg. Projects leveraging curtailment‑based wind‑solar power can achieve even lower production costs of 11.2‑14 CNY/kg, approaching the local grey‑hydrogen cost band of 12‑15 CNY/kg, with partial price‑parity windows now materialising. It is critical to distinguish production‑gate costs from end‑user delivered prices: after long‑haul tube‑trailer shipment to eastern consumption hubs, delivered green‑hydrogen prices generally rise to 22‑30 CNY/kg, still higher than conventional grey hydrogen. The landmark West‑to‑East Hydrogen Transmission Project provides a key price benchmark. The planned Ulanqab‑Tianjin Binhai hydrogen pipeline, scheduled for completion in 2029, is expected to bring terminal hydrogen prices down to 19‑22 CNY/kg, demonstrating that pipeline transport can substantially bridge the east‑west hydrogen‑price divide. Multiple factors drive recent hydrogen‑price movements. First, feedstock costs set the floor for grey‑hydrogen pricing, with coal and natural‑gas price fluctuations directly transmitted to production costs. Second, storage‑and‑transport represents the largest price variable at present. China’s operational pure‑hydrogen pipelines total merely around 350 km; most hydrogen is delivered by high‑pressure tube trailers, creating the structural paradox of “low prices at production sites, high prices in consumption centres”. Third, carbon‑market policies are shaping clean‑hydrogen pricing. With the full roll‑out of the EU Carbon Border Adjustment Mechanism (CBAM) and the incorporation of green hydrogen into China’s renewable‑energy assessment framework, the carbon‑abatement value of green hydrogen (around 20 tons of CO₂ abated per tonne of green hydrogen replacing grey hydrogen) will further narrow its economic gap against grey hydrogen. Fourth, expanding electrolyser capacity accelerates green‑hydrogen cost reduction. Bidding prices for mainstream alkaline (ALK) electrolysers have plunged by more than 60 % over two years, while system power consumption has dropped below 4.2 kWh/Nm³, laying a foundation for further green‑hydrogen price declines. From a supply‑demand perspective, domestic hydrogen consumption is heavily concentrated in the chemical sector. Most chemical operators operate captive hydrogen‑production units, resulting in limited volumes of market‑traded hydrogen. The 2030‑2050 period will witness high‑speed growth of the hydrogen sector. Market‑traded hydrogen volumes will expand notably as large‑scale consumption‑end projects such as green‑hydrogen‑based ammonia synthesis, green‑methanol production and hydrogen‑metallurgy come on‑stream. Geographically, northwest China will evolve into the core domestic base for green‑hydrogen exports. With the large‑scale build‑out of pure‑hydrogen pipeline networks, regional hydrogen‑price differentials across China will keep narrowing.

SMM learns that an end-user client currently has a demand for leasing 96 units of H100 with a closed three-year contract, specifying the NVLink version, with a budget of 80,000 yuan per unit per month. The client requires a direct contract with clear property rights, and data centers in Xinjiang are also acceptable. Channel feedback indicates that large cluster resources for H100 are tight recently, and some clusters have already been locked by other clients. From the demand side, the purchase willingness for large quantities of three-year NVLink has significantly increased, while on the supply side, it is difficult to match resources of the same scale in the short term.

According to data released by CAAM in August, in July 2026, China's hydrogen fuel cell vehicle production was only 67 units, a sharp YoY decline of 70.7%; sales were 138 units, down 51.4% YoY. From January to July, cumulative hydrogen vehicle production was 600 units and sales were 800 units, down 61.5% and 50.3% YoY respectively, with the overall market in a policy vacuum adjustment period after the conclusion of the first batch of demonstration city clusters. This week, China's alkaline electrolyzer market capacity remained at 43.77 GW, while the PEM electrolyzer market remained at 2.7 GW. This week, the 7.5 MW containerized alkaline hydrogen production equipment for Romania, manufactured by Peric Hydrogen Technologies Co., Ltd. (Handan) under the 718th Research Institute of China State Shipbuilding Corporation, has completed all production and acceptance and has been officially shipped. I. Project-Related Updates Ulanqab-Beijing-Tianjin-Hebei Hydrogen Pipeline (Third Change, Increased to 1,200 km): The National Development and Reform Commission (NDRC) and the National Energy Administration officially issued the "Oil and Natural Gas Development '15th Five-Year Plan'", which for the first time proposed "integration of oil, gas, hydrogen, ammonia, methanol, and storage and transportation systems", and clearly published the core parameters of the Ulanqab-Beijing-Tianjin-Hebei hydrogen pipeline in the key project table of the '15th Five-Year' oil and gas pipelines: total length of 1,200 km, pipe diameter of 457/610 mm, and designed transmission capacity of 500,000 mt/year. This is the third length change of the pipeline that can be traced — from the initial over 400 km, to 1,145 km, then to 1,132 km, and now finally set at 1,200 km. The project has been elevated to a national key project during the '15th Five-Year Plan', and is expected to accelerate into the substantive construction phase, becoming the starting point for building a national hydrogen storage and transportation backbone network. China Chemical Engineering Donghua Company (Shenneng Etuoke Banner Wind and Solar Power Hydrogen Production Integrated Green Ammonia Project): The hydrogen production engineering of the Shenneng Etuoke Banner Wind and Solar Power Hydrogen Production Integrated Green Ammonia Project, contracted by Donghua Company, reached an important period, with all 48 electrolyzers achieving stable full production and the entire process succeeding in one start-up, achieving "zero accidents and zero casualties". The 48 electrolyzers from five suppliers operated stably and synergistically on the same platform, verifying the full-cycle EPC management capability for hydrogen production from fluctuating power supply, marking that the hydrogen production station has comprehensive and stable hydrogen production capacity. Shanghai Electric (Taonan Phase II Project): The Taonan Green Hydrogen Coupled with Biomass Green Alcohol and Oil Integrated Project was officially launched. The project plans to produce 200,000 mt of green methanol and 10,000 mt of sustainable aviation fuel (SAF) annually, adopting Shanghai Electric's new-generation green fuel system solution, pioneering an off-grid green direct-connection mode, relying on "wind + solar + storage + biomass" multi-source green electricity supply, and equipped with key core technologies such as electrolytic water hydrogen production, pure-oxygen pressurized fluidized bed biomass gasification 3.0, CO₂-rich syngas methanol synthesis, and Fischer-Tropsch synthesis for SAF. The green methanol previously produced in the Taonan Phase I project has completed two large-scale bunkering operations at Shanghai Yangshan Port, setting a global record for the largest single green methanol bunkering volume. Zhensheng Biotechnology (Inner Mongolia) Co., Ltd.: The biomass green hydrogen and bio-based materials industrialisation project of Zhensheng Biotechnology (Inner Mongolia) Co., Ltd. has been filed. The project is located in Dalate Banner Economic Development Zone, Ordos, with a total investment of 450 million yuan. It plans to start construction in July 2026 and be completed in July 2028. The project uses agricultural and forestry residues and other biomass as raw materials, adopts a slurry process to produce biomass activated carbon powder, and then produces green hydrogen through entrained-flow gasification and other processes. After completion, it will produce 65,000 mt of green hydrogen, 300,000 mt of biomass alloy slurry, 30,000 mt of new humic acid organic mineral matrix, and 36,000 mt of guaiacol humic acid multi-nutrient medicinal fertilizer per year. Goldwind Science&Technology (Hinggan League Wind Power Hydrogen Production Phase III Project): The Hinggan League Ecological Environment Bureau has approved the "Environmental Impact Report for Hinggan League Goldwind Science&Technology Wind Power Hydrogen Production (Phase III) Project". Located in Hinggan League Economic and Technological Development Zone, Phase III does not occupy additional land. It will construct six electrolytic hydrogen production workshops, one hydrogen compression workshop, and supporting auxiliary facilities. The core hydrogen production equipment consists of 80 sets of 2,000 Nm³/h electrolysers, with a total hydrogen production capacity of 160,000 Nm³/h. Liaoyuan Tianying Hydrogen Energy Technology Co., Ltd. (Liaoyuan Tianying Green Hydrogen Refuelling Station Has Been Granted Filing): The project is located in Liaoyuan High-tech Industrial Development Zone, Jilin Province, with a total investment of 16.831 million yuan. It plans to start construction in September 2026 and be completed in April 2027. Main construction contents: one set of 45 MPa hydrogen storage bottle group (hydrogen storage: 259 kg), one set of 20 MPa hydrogen storage bottle group (hydrogen storage: 538 kg), one 1.6 MPa hydrogen buffer tank (14 kg), with a total hydrogen storage capacity of approximately 1,195 kg; configuration of two 45 MPa hydrogen compressors, two 20 MPa hydrogen compressors, and two 35 MPa hydrogen refuelling dispensers. The project is indirectly 100% owned by China Tianying Inc. Inner Mongolia Huadian (Damao Banner 1 GW Wind and Solar Power Hydrogen Production Integrated Project): Two sections of the Huadian Damao Banner 1 GW Wind and Solar Power Hydrogen Production Integrated Project have published bid result announcements, with a total amount of approximately 1.7 billion yuan. The first bid winner for Section 1 (PC construction general contracting) is China Huadian Engineering Co., Ltd., with a bid price of approximately 501 million yuan; the first bid winner for Section 2 (383 MW wind and solar power PC + hydrogen production station + 220 kV step-down substation) is China Energy Engineering Group Tianjin Electric Power Construction Co., Ltd., with a bid price of approximately 1.205 billion yuan. Baotou Haoyu New Energy Co., Ltd. (Baotou Haoyu New Energy Co., Ltd. Airport Road (Branch Station) Oil-Gas-Electricity-Hydrogen Integrated Energy Supply Station Project Change Has Been Granted Filing): The project is located in Donghe District, Baotou, with a total investment of 40 million yuan and a total land area of approximately 3,000 m². It will build one oil-gas-electricity-hydrogen integrated energy supply station, equipped with CNG refuelling facilities (daily gas supply volume: 10,000 m³), petrol refuelling facilities, eight fast charging piles, and hydrogen refuelling facilities (daily refuelling capacity: 500 kg). The project will be implemented in two phases. Shanghai Electric, Together With SIPG and France’s CMA CGM (Green Methanol Bunkering at Yangshan Port) : Shanghai Electric, together with SIPG and France’s CMA CGM Group, successfully completed batch green methanol bunkering at Shanghai Yangshan Port, with a total bunkering volume of 8,000 mt, setting a new global record for the highest single green methanol bunkering volume. The green methanol bunkered this time was mainly supplied by Shanghai Electric’s Taonan Green Methanol Project, marking the first large-scale verification since the “Green Fuel Transport Corridor” jointly built by Shanghai, Jilin, and Liaoning (the “north methanol to south transport” link of production in Taonan, Jilin—transshipment at Dalian Port—bunkering at Shanghai Port) was put into operation. II. Policy Review 1. The Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission (NDRC) issued the Notice on Agreeing to Carry Out Pilot Work on Comprehensive Hydrogen Energy Applications in Five City Clusters Including Beijing-Tianjin-Hebei, in principle approving five city clusters—Beijing-Tianjin-Hebei, the Greater Bay Area, Northeast (including eastern Inner Mongolia)—Yangtze River Delta, Xinjiang—Chengdu-Chongqing Twin-City Economic Circle, and the Yellow River “Ji”-shaped Bend—central China—to carry out pilot work on comprehensive hydrogen energy applications, with a pilot period of four years. The notice requires accelerating the implementation of four lists covering breakthroughs in hydrogen energy technology and equipment, hydrogen energy projects in the industrial sector, promotion of fuel cell vehicles, and construction of hydrogen refueling stations, and emphasizes preventing local protectionism, “small but comprehensive” approaches, herd behavior, and low-level redundant construction. Compared with the first batch of four city-cluster demonstrations in 2020, the center of this round of policy has shifted from “single demonstrations” toward “comprehensive applications.” 2. The National Development and Reform Commission (NDRC) and the National Energy Administration issued the “15th Five-Year” Plan for Oil and Natural Gas Development, which for the first time proposed “integrating oil and gas with hydrogen, ammonia, and methanol storage and transportation systems,” providing top-level design support for addressing storage and transportation bottlenecks in the hydrogen energy industry during the “15th Five-Year” period. The plan clearly states that it will “advance the construction of the Ulanqab—Beijing-Tianjin-Hebei hydrogen transmission pipeline,” and discloses in the key oil and gas pipeline project list for the “15th Five-Year” period that the pipeline will have a total length of 1,200 km, a diameter of 457/0.61 mm, and a designed transmission capacity of 500,000 mt/year. 3. The People’s Government of the Inner Mongolia Autonomous Region issued the Notice on Amending Certain Contents of Document No. 15 of the Inner Mongolia Government Office, deleting provisions in the 2022 Opinions on Promoting High-Quality Development of the Hydrogen Energy Industry such as electricity prices for production by hydrogen energy equipment manufacturing enterprises being benchmarked to electricity prices for strategic emerging industries, and the eastern region participating in market-based trading with a 100% new energy allocation. Hydrogen energy equipment manufacturing enterprises will no longer enjoy preferential electricity price policies and will revert to the market-based trading mechanism for ordinary large industrial electricity consumption. This move is seen as an important signal of Inner Mongolia's hydrogen energy industry shifting from a "policy incubation period" to "market-oriented competition", and will have a direct impact on the electricity costs and investment estimates of existing and planned hydrogen equipment projects in the short term. 4. The People's Government of Banan District, Chongqing issued the "15th Five-Year Plan for Comprehensive Transportation Development of Banan District, Chongqing (2026–2030)", proposing to build new hydrogen refueling stations along the Yuzhu Expressway, jointly create a "hydrogen corridor" cluster for the Western Land-Sea New Corridor; promote the use of green electricity and green electricity certificates in logistics hubs such as Chongqing Highway Logistics Base, explore the "PV+ESS+charging piles" model and green electricity hydrogen production; update and promote 400 pure electric and hydrogen fuel cell heavy-duty trucks; explore the application of methanol, hydrogen fuel and other power vessels. 5. The Greater Khingan Mountains Prefecture Administrative Office issued the "Guiding Opinions on Promoting the Application of Methanol Vehicles in the Greater Khingan Mountains Prefecture (Draft for Comments)", proposing to accelerate the construction of vehicle methanol fuel refueling systems, support the construction of integrated comprehensive energy stations for charging, refueling, gas filling, hydrogen refueling, and methanol refueling; increase the promotion and application of methanol vehicles in taxi, ride-hailing and other fields; encourage government agencies at all levels to purchase methanol vehicles as official vehicles. 6. The Ecology and Environment Bureau of Hinggan League approved the "Environmental Impact Report of the Goldwind Science&Technology Wind Power Hydrogen Production (Phase III) Project in Hinggan League", agreeing to the construction of Goldwind's wind power hydrogen production phase III project with a capacity of 160,000 Nm³/h. 3. Enterprise Dynamics Dongfang Electric (Chengdu) Hydrogen Energy Technology Co., Ltd.: Dongfang Electric announced that its board of directors approved the proposal for Dongfang Hydrogen Energy to carry out Series B financing, with the company and Dongfang Boiler simultaneously increasing capital. The financing amount is no more than 1.17 billion yuan. The company and Dongfang Boiler, together with external investors, will increase capital synchronously, maintaining a total shareholding ratio of 52.95%. This is the second central state-owned enterprise hydrogen energy subsidiary to launch large-scale financing in China, following SPIC's Guohydrogen Technology (which completed a 4.5 billion yuan Series B financing in December 2022 with a post-investment valuation of 13 billion yuan). It is regarded by the industry as a major positive signal of accelerated capitalization of central SOE hydrogen energy platforms. Dongfang Hydrogen Energy has built a full-chain business system covering hydrogen production, storage, refueling, hydrogen power generation, and fuel cells. As of 2025, it had put over 1,300 fuel cell vehicles into operation in 17 provinces and cities. SinoHytec: On August 15, it released an H-share announcement stating that for the six months ended June 30, 2026, the expected loss decreased by about 35%–45% compared to the same period in 2025. The main reasons are: deepening supply chain collaborative management and accelerating inventory turnover led to a YoY decrease in sales costs; continuing to reduce costs and increase efficiency resulted in a YoY decrease in operating expenses; the reversal of bad debt provisions recognized in prior years increased YoY; and the decline in shareholding ratios in certain associates led to a decrease in share of losses. Sinopec Sales Co., Ltd.: Huzhou Nanxun Xinshi Energy Technology Co., Ltd. was established with a registered capital of 5 million yuan, covering the sales of station-use hydrogen refueling and storage facilities as well as new energy vehicle battery swapping facilities. Zhejiang Xunkai Energy Technology Group Co., Ltd. and Sinopec Sales Co., Ltd. hold 51% and 49% stakes, respectively. Previously, on April 14, Sinopec Sales had established the joint venture Shaxing Juneng Energy Co., Ltd. in Chongqing. Leveraging its network of over 30,000 gas stations across China, Sinopec is accelerating the transformation of traditional fuel stations into integrated "oil, hydrogen, electricity, and services" energy stations. Suzhou CPU Hydrogen Power Technology Co., Ltd.: The winning bid result of the Harbin Institute of Technology (Weihai) water electrolysis hydrogen production test prototype project was announced. Suzhou CPU Hydrogen Power won the bid at 1.02 million yuan, procuring one set of nuclear energy alkaline electrolysis water system prototype (covering a full suite of equipment including electrolyzer, power supply, gas-liquid separation, thermal management, and control). This will serve scientific research experiments related to nuclear-coupled electrolytic hydrogen production, with delivery required within 3 months after contract signing. Changzhou Xingran Technology Co., Ltd.: The winning bid result of the electrolyzer (PEM water electrolysis hydrogen production equipment) procurement project of Shaanxi Yanchang Petroleum Materials Group Xi'an Co., Ltd. was announced. Changzhou Xingran Technology won the bid at 1.7775 million yuan. CIMC Green Hydrogen: CIMC Green Hydrogen, together with H2Terminals and Bonney Energy, advances the implementation of Australia's hydrogen refueling network, deepening cross-border strategic hydrogen energy cooperation. China Marine Bunker (PetroChina) Co., Ltd.: China Marine Bunker signed an agreement with Jiaze New Energy to deepen cooperation in the green fuel industry; successfully completed the methanol bunkering operation for the first 325k VLOC vessel, opening a new track for methanol bunkering; and participated in the launch ceremony of Shanghai Electric's green hydrogen-coupled biomass green alcohol-oil integrated project. Solid-State Hydrogen Storage Goes Global (China Technology Export): China's solid-state hydrogen storage technology secured its first order in Southeast Asia, accelerating global export from technical verification to engineering implementation; Hydrosys hydrogen energy equipment moves from over 180 domestic stations to Oceania, ushering in a new chapter of hydrogen equipment going global. 4. Patent Applications 1. Sichuan Qingyan Energy Conservation Technology Co., Ltd., Shenzhen Hangneng Hydrogen-Alcohol Energy Innovation Research Institute, and Chengdu Ruilingke Information Technology Co., Ltd. (China): Published patent CN122561833A, "A Process Method for Hydrogen Production via Microwave-Induced Alcohol Reforming." Through microwave irradiation, metal oxide catalysts are activated to generate local high-temperature hot spots, combined with electromagnetic heating preheating, enabling alcohol reactants and water vapor to undergo steam reforming reaction in a microwave cavity reactor to produce hydrogen. This method achieves efficient hydrogen production from organic matter under mild conditions. 2. Guang dong Yuntao Hydrogen Energy Technology Co., Ltd. (China): Published patent CN122560794A, "An AI Control Method and System for Fuel Cell Tractor Based on Route Planning." By predicting the tractor's upcoming operating conditions and power demand through a predictive network, a fuel-lithium dual-energy characteristic model was established. Based on MPC predictive control, the optimal fuel cell power distribution ratio and expected hydrogen consumption rate were output, achieving dual-energy synergistic energy efficiency optimization. 3. Jiangsu Enfang Zhixiang Technology Co., Ltd. (China): Published patent CN122576250A, "An Air-Cooled Hydrogen Fuel Cell System." By utilizing the fan's wind pressure to convert reactive liquid water into water vapor, heat inside the stack was removed through wind speed and phase change principles. Water recycling was achieved via a hydrophilic humidification layer and siphon structure, resolving the conflict between heat dissipation and humidification in air-cooled stacks. 4. Sunshine Hydrogen Energy Technology Co., Ltd. (China): Granted patent CN224628684U, "Separation Device." By adopting a multi-stage wire mesh droplet capture and cyclone structure, the device adapted to gas-liquid separation conditions at different power levels under variable load hydrogen production, resulting in more thorough separation of hydrogen and water vapor. 5. Dalian Dichuang Hydrogen Energy Technology Co., Ltd. (China): Granted patent CN224647096U, "A High-Pressure Alkaline Electrolysis System." By arranging a horizontal electrolytic alkali balancing tank with a slider, the electrolytic alkali circulation loops on the hydrogen side and oxygen side were separated, preventing mutual mixing of hydrogen bubbles and oxygen bubbles while achieving pressure balance of the alkali on both sides.

This week, the industry chain exhibited a divergent trend. The lithium segment performed relatively strong. Lithium ore prices held firm, supported by tight spot cargo flows, price firmness at the mine end, and rigid procurement by salt plants; however, the squeeze of high-priced raw materials on smelting profits gradually emerged. Lithium carbonate first rose then fell, with downstream purchase willingness strengthening near 150,000 yuan/mt; market sentiment for lithium hydroxide recovered somewhat. The nickel salt and ternary chain were under pressure overall, with prices of nickel sulphate, ternary cathode precursor, and ternary cathode material weakening; export orders and demand for 9-series materials provided partial support. LFP maintained high activity, with industry effective capacity near full load; tight supply of iron phosphate became the main bottleneck, and cathode inventory continued to decline. Prices of anode, separator, and electrolyte were generally stable, but supply and demand for raw materials such as LiPF6 and VC tightened. Sodium-ion battery NFPP orders continuously exceeded existing capacity, and ESS battery cabin prices remained stable. The recycling market was affected by the decline in cobalt sulphate prices; transactions of ternary and LCO black mass became cautious. The industry as a whole remains in a phase of inventory adjustment and supply-demand rebalancing before the peak season.

[SMM cast aluminum alloy morning comment: China's cast aluminum alloy social inventory increased for two consecutive weeks to 28,100 mt, with the pace of inventory buildup expanding] This week, China's social inventory of cast aluminum alloy ingot stood at 28,100 mt, up 2,500 mt WoW, marking the second consecutive week of inventory buildup, and...

SMM August 20 News: Price Review: As of this Thursday, the SMM alumina index was at 2,681.62 yuan/mt, down 8.73 yuan/mt from last Thursday. Among them, Shandong region quoted 2,650-2,720 yuan/mt, down 10 yuan/mt from last Thursday; Henan region quoted 2,690-2,750 yuan/mt, down 10 yuan/mt from last Thursday; Shanxi region quoted 2,680-2,740 yuan/mt, down 10 yuan/mt from last Thursday; Guangxi region quoted 2,580-2,640 yuan/mt, down 5 yuan/mt from last Thursday; Guizhou region quoted 2,720-2,790 yuan/mt, down 10 yuan/mt from last Thursday. Overseas Market: As of August 20, 2026, the FOB Western Australia alumina price was $360/mt, the ocean freight rate was $32/mt, and the USD/CNY selling rate was around 6.74. This price translates to a Chinese main port selling price of approximately 3,066.17 yuan/mt, which is 384.55 yuan/mt higher than the alumina index price. This week, seven overseas spot alumina transactions were concluded, with the details as follows: (1) On August 20, 2026, an overseas transaction of alumina was concluded at a transaction price of $363/mt FOB East Australia for 30,000 mt, or $364/mt FOB East Australia for 50,000 mt. Seller's option, for October shipment. (2) On August 13, 2026, an overseas transaction of 30,000 mt of alumina was concluded at $374/mt CFR Malaysia, for August shipment. (3) On August 14, 2026, an overseas transaction of 30,000 mt of alumina was concluded at $362.5/mt FOB Western Australia, for September shipment. (4) On August 14, 2026, an overseas transaction of 63,000 mt of alumina was concluded at $409/mt CIF Rotterdam. (5) On August 14, 2026, an overseas transaction of 30,000 mt of alumina was concluded at $400/mt FOB Jamaica, for September shipment. (6) On August 13, 2026, an overseas transaction of 30,000 mt of alumina was concluded at $360/mt FOB Western Australia or $358/mt FOB East Australia, for October shipment. (7) On August 13, 2026, an overseas transaction of 30,000 mt of alumina was concluded at $374/mt CFR Malaysia, for August shipment. Chinese Market: According to SMM data, as of this Thursday, the total installed capacity of metallurgical-grade alumina in China was 118.42 million mt/year, with operating capacity of 88.01 million mt/year. The national alumina weekly operating rate was flat WoW at 74.33%. Among them, the weekly operating rate of alumina in Shandong was flat WoW at 89.14%; in Shanxi it was flat WoW at 64.9%; in Henan it was flat WoW at 56.53%; in Guangxi it was flat WoW at 78.05%; and in Guizhou it was flat WoW at 83.05%. In the spot market this week, two transactions were concluded. Xinjiang region tendered for 5,000 mt of spot alumina at delivered prices of 2,960 yuan/mt, and tendered for 10,000 mt of spot alumina at delivered prices of 2,985 yuan/mt. Spot alumina prices fell steadily this week, with the oversupply situation continuing to weigh on China prices. Markets outside China showed a different trend, with alumina prices rising steadily, mainly due to two reasons: first, transportation issues in the Middle East led to increased demand for bagged alumina, creating a premium in prices outside China and pushing them higher; second, bauxite supply in Indonesia was overall tight, limiting local alumina production and driving up spot prices outside China. Domestically, operating capacity for alumina remained stable this week, with weekly production at 1.688 million mt. Inventory performance diverged: raw material inventory at aluminum smelters fell by 9,000 mt to 3.399 million mt, as enterprises mainly consumed in-factory inventory and maintained long-term contract procurement pace, with relatively small overall changes; finished product inventories at alumina refineries decreased by 3,000 mt to 1.217 million mt, with enterprises maintaining normal long-term contract deliveries and limited fluctuations; port inventories fell by 35,000 mt to 1.016 million mt, mainly due to a decline in pickup volume; warrant inventories increased by 15,000 mt to 288,000 mt, and in-transit inventories edged up by 2,000 mt to 1.325 million mt. Overall, total alumina inventory in China decreased by 30,000 mt to 7.245 million mt. Looking ahead to next week, an alumina enterprise in Guangxi will resume production after maintenance, leading to a recovery in capacity and an expected increase in overall supply, keeping the market under pressure. On imports and exports, net imports in July stood at 63,000 mt, and net imports are expected to decline in the future, potentially reducing port inventories during the period. Overall, inventory levels are expected to fluctuate within the current range, and spot prices will remain in the doldrums. [Data other than publicly available information is processed by SMM based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute decision-making advice.]

[Supply Side Production Cut Expectations and Disruption Intensify, Silicon Metal Prices Continue Strong]: On the market quotation and transaction side, affected by expectations for month-end production cuts at large plants in Xinjiang, silicon enterprises generally have a strong sentiment to hold prices firm. Their quotes increased WoW, and futures-spot traders also raised their quotes following the rise in futures prices, leaving almost no low-priced supply in the market. The center of suppliers' quotations generally increased, while China's downstream users and users outside China show little willingness to chase price rises. Some downstream users have poor acceptance of high prices and mainly place orders on demand for restocking.

[SMM Silicon-based PV Morning Meeting Minutes] Silicon metal: Yesterday, SMM east China oxygen-blown #553 silicon was around 9,200-9,300 yuan/mt, and #441 silicon was around 9,300-9,500 yuan/mt. On the supply side, there have been many expectations regarding news from large plants in Xinjiang towards month-end, strengthening the bottom support for silicon metal prices. Silicon enterprises showed diverging attitudes in quoting prices and selling—some maintained firm quotes and sold according to market conditions, while others temporarily suspended quoting. Attention should be paid to changes in the operating rates of silicon enterprises on the supply side. Wafers: In the market, 18X wafer prices were 1.105-1.123 yuan/piece, 210RN wafer prices were 1.148-1.153 yuan/piece, and 210N wafer prices were 1.241-1.256 yuan/piece. Wafers of all sizes maintained an upward trend, with cell segment having accepted a quote of 1.15 yuan/piece for 210R, and 183 wafers may see further price increases due to tight supply.

According to the Azerbaijani Ministry of Economy, Minister Mikayil Jabbarov recently met with Ma Bing, Deputy General Manager of Xinjiang Zhonghe. The two sides discussed joint projects in the aluminum and metallurgical industries, focusing on the application of modern technologies and innovative solutions, knowledge exchange, and technology transfer.

Landrill Copper’s 30,000-mt oxygen-free copper rod project achieved success in its first trial furnace run. The oxygen-free copper rods produced had a purity exceeding 99.99%, with oxygen content below 10 ppm, successfully filling the gap in Xinjiang’s high-end oxygen-free copper rod market.