[SMM Magnesium Market Analysis: Consolidating at Lows and Awaiting a Turning Point, Clear Pattern of Both Supply and Demand Growth in August] Currently, China's magnesium prices remain in a low-level, narrow sideways consolidation trend, with market price fluctuations narrowing markedly. With industry participants on summer vacation and the market news environment quieting down, overall trading activity is sluggish. As the market enters the critical August window, magnesium prices are about to see a new turning point in their trend. The supply-demand structure, regional supply differences, and cost support will jointly dictate the subsequent market direction.

Sacombank has announced a 2% annual interest-rate reduction for new and existing import-export customers from August 13 to December 31, 2026, shortly after the Prime Minister’s meeting with the State Bank of Vietnam (SBV) and the country’s credit institution system on the same morning. The preferential package, backed by a nearly VND 100 trillion portfolio, aims to support import-export businesses, including steel importers and exporters, by reducing financing costs and promoting trade activities. Sacombank is also offering preferential loans at 8.5%-9%/year to priority sectors, business households and FDI enterprises.

[Ferrochrome Market in the Doldrums, Ore-Side Offers Rise] August 13, 2026 News: Ferrochrome and chrome ore markets fluctuated slightly...

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, SMM recorded Shanghai social inventory at 79,300 mt, up 1,000 mt WoW from this Monday; Jiangsu social inventory at 18,100 mt, flat WoW from this Monday. Overall inventory in east China edged up, and spot supply has yet to show any clear tightening. With delivery approaching, the intermonth Back price spread between futures contracts further widened to 600–750 yuan/mt. Higher contract rollover costs prompted some suppliers to accelerate spot sales, and quotes against the 2608 contract quickly moved lower accordingly; meanwhile, some deliverable-brand cargo meeting delivery standards flowed into the warrant channel, further differentiating spot cargo flows. After intraday discounts widened to around 300 yuan/mt, some market participants began to purchase, but trades clearly skewed toward cargo with lower prices, higher brand recognition, or better fit with their own production needs. Downstream buyers had ample choices and became more stringent in screening by brand and price, while actual end-use demand has yet to show any obvious improvement. As delivery neared, some suppliers had attempted to shift to quoting against the 2609 contract, with offers around a premium of 400 yuan/mt; the market may gradually enter a phase where the 2608 and 2609 contracts serve as dual benchmarks in parallel. It should be noted that the apparent uplift in premiums after contract rollover mainly came from the Back spread switch and does not indicate a substantive strengthening of spot supply and demand. Overall, if quoting continues against the 2608 contract, spot cargo may remain at relatively deep discounts; as the pricing benchmark gradually shifts to the 2609 contract, quotes are set to recover markedly, but transaction divergence among brands is expected to persist.

[SMM Stainless Steel Daily Review] SS Futures Pull Back; Stainless Steel Quotes Retreat; Market Trading Sluggish SMM, August 13 – SS futures moved lower and pulled back overall, dragged by broad weakness in nonferrous metals, with SS moving down in tandem. As of the close, the most-traded SS futures contract settled at 14,385 yuan/mt. In the spot market, dragged by the pullback in SS futures and lower guidance prices at a major stainless steel mill, 304 stainless steel quotes pulled back. However, the price pullback turned market sentiment pessimistic; downstream purchasing was cautious, and intraday inquiries and deals were weak. The most-traded SS futures contract. At 10:15 a.m., SS2610 stood at 14,395 yuan/mt, down 160 yuan/mt from the previous trading day. In Wuxi, spot premiums for 304/2B were in the 475-675 yuan/mt range. In the spot market, the average price of cold-rolled 201/2B coil in Wuxi was flat; for cold-rolled mill-edge 304/2B coil, average prices fell by 125 yuan/mt in Wuxi and by 175 yuan/mt in Foshan; cold-rolled 316L/2B coil in Wuxi was flat; for hot-rolled 316L/NO.1 coil, quotes in Wuxi were flat; and cold-rolled 430/2B coil in Wuxi and Foshan was flat. This week, stainless steel futures were disrupted by both industry news and capital flows, showing wild swings overall, with a fierce tug-of-war between longs and shorts. During the week, news about additional nickel ore quotas under Indonesia’s RKAB repeatedly disrupted market expectations. Combined with shifts in capital flows in futures, SS futures rose initially before pulling back, briefly testing the 15,100 yuan/mt level mid-week, but subsequently, as expectations of growth in nickel ore quotas heated up...

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, SMM recorded Shanghai social inventory at 79,300 mt, up 1,000 mt WoW from this Monday; Jiangsu social inventory at 18,100 mt, flat WoW from this Monday. Overall inventory in east China edged up, and spot supply has yet to show any clear tightening. With delivery approaching, the intermonth Back price spread between futures contracts further widened to 600–750 yuan/mt. Higher contract rollover costs prompted some suppliers to accelerate spot sales, and quotes against the 2608 contract quickly moved lower accordingly; meanwhile, some deliverable-brand cargo meeting delivery standards flowed into the warrant channel, further differentiating spot cargo flows. After intraday discounts widened to around 300 yuan/mt, some market participants began to purchase, but trades clearly skewed toward cargo with lower prices, higher brand recognition, or better fit with their own production needs. Downstream buyers had ample choices and became more stringent in screening by brand and price, while actual end-use demand has yet to show any obvious improvement. As delivery neared, some suppliers had attempted to shift to quoting against the 2609 contract, with offers around a premium of 400 yuan/mt; the market may gradually enter a phase where the 2608 and 2609 contracts serve as dual benchmarks in parallel. It should be noted that the apparent uplift in premiums after contract rollover mainly came from the Back spread switch and does not indicate a substantive strengthening of spot supply and demand. Overall, if quoting continues against the 2608 contract, spot cargo may remain at relatively deep discounts; as the pricing benchmark gradually shifts to the 2609 contract, quotes are set to recover markedly, but transaction divergence among brands is expected to persist.

[SMM Magnesium Survey: Element One Accelerates Magnesium Extraction from Olivine and Natural Hydrogen Project Development] Canada's Element One disclosed its six-month plan, under which it will build a demonstration plant in the US to extract magnesium from olivine and collaborate on an electrochemical process to produce magnesium products. It has also established a presence in natural hydrogen deposits and mastered extraction technology. The enterprise plans to list in the US to raise funds. The US and Canada have listed magnesium among critical minerals. The magnesium market has significant growth potential, natural hydrogen extraction costs are extremely low, and the company will seek policy subsidies to advance project implementation.

July Price Review Source: SMM In July 2026, China’s non-oriented electrical steel market trended weaker, with prices across all grades starting to drift lower. Downstream home appliance and general motor industries entered the traditional off-season, and end manufacturers mostly adopted hand-to-mouth purchasing with limited willingness for bulk stockbuilding. Meanwhile, steel mills maintained relatively ample supply, leading to looser supply-demand balance and mounting inventory pressure on traders. Pervasive market caution widened spot negotiation ranges. July marked the start of the current downward price cycle, shifting market sentiment from earlier firm high levels to a weakening trajectory. Fundamental Analysis Source: SMM Supply Side Compared with July, the production scheduling mix of domestic non-oriented electrical steel will continue to optimize in August. The share of medium & low grades will edge down from 68% to 66%, high grades will stay flat at 19%, and new-energy dedicated grades will rise from 13% to 15%. Steel mills keep reallocating production capacity toward materials for new-energy motors while proactively cutting output of conventional medium & low grades. Nevertheless, despite lower scheduled output proportion for medium & low grades, overall spot supply in the market remains relatively sufficient. Traditional home appliance and general motor sectors are stuck in demand off-season with no improvement in end-users’ hand-to-mouth buying. Competitive pressure persists for mainstream medium & low grade products such as B50A800, lacking solid price support. The market will continue the weak trend seen since July. Source: Publicly Available Data Demand Side Home appliance output showed divergent performance in June. Air conditioner production fell year-on-year, while washing machine, refrigerator and TV output posted no notable growth. The traditional home appliance sector entered a phase of subdued demand. As the major downstream consumer of medium & low grade non-oriented electrical steel, the home appliance sector released limited orders and provided feeble support for this product category. The automotive sector saw structural divergence: output of new-energy passenger and commercial vehicles stayed at high levels, continuously underpinning demand for high-grade and new-energy-specific non-oriented electrical steel. In contrast, production of conventional internal combustion engine (ICE) passenger and commercial vehicles kept declining, dragging down motor procurement demand from traditional automakers. Overall demand presents a clear split: the new-energy vehicle segment lends support to high-grade electrical steel, whereas sluggish demand from home appliances and ICE vehicles fails to fuel consumption recovery of medium & low grade non-oriented electrical steel. No strong bullish catalysts emerge on the demand front. August Price Outlook Looking ahead to August 2026: On the supply side, planned output of China’s non-oriented electrical steel will keep declining, yet the scale of production cuts will narrow, concentrated mainly on medium & low grades. On one hand, prominent off-season effects persist amid stagnant downstream demand and prevailing hand-to-mouth purchasing, dampening steel mills’ production enthusiasm. On the other hand, leading producers including Baowu lifted August base prices by RMB 50/tonne, demonstrating obvious price-defending intentions. Even so, the market holds bearish expectations that prices face greater downside than upside. In addition, most manufacturers are already operating at a loss and forced to implement production cuts. On the demand side, the home appliance sector stays in a prolonged off-season with poor sentiment. Manufacturers have sharply reduced production schedules month-on-month. Weak domestic sales, phasing-out of state subsidies and consumption frontloading during the 618 shopping campaign weigh on the market, resulting in a marked sales drop. Manufacturers stated they will prioritize inventory destocking and further adjust production plans going forward. The automotive market enters its off-season with deteriorating business sentiment. After mid-year sales pushes, most automakers trimmed production schedules. At the retail end, high temperatures and frequent rainfall discourage consumer vehicle purchases. Automakers and dealers have rolled back partial sales incentives, while limited launches of new models contribute to a substantial month-on-month sales decline. On the cost side, hot rolled coil prices are projected to fluctuate weakly in August with limited upward momentum, and the monthly average price will continue to fall month-on-month. In summary, SMM forecasts that non-oriented electrical steel prices will fluctuate downward across August 2026, with certain room for price declines.

SMM, August 13: Metals market: As of the midday close, domestic base metals were mostly lower. SHFE copper fell 0.5%, SHFE aluminum fell 0.9%, SHFE lead rose 0.63%, SHFE zinc fell 0.27%, SHFE tin fell 0.86%, and SHFE nickel fell 0.16%. In addition, the most-traded cast aluminum futures contract fell 1.33%, the most-traded alumina contract fell 1.62%, the most-traded lithium carbonate contract was flat at 148,840 yuan/mt, the most-traded silicon metal contract fell 0.64%, and the most-traded polysilicon futures contract rose 0.75%. Ferrous metals all fell. Iron ore fell 0.14%, rebar fell 0.5%, hot-rolled coil fell 0.37%, and stainless steel fell 0.93%. Coking coal and coke: the most-traded coking coal contract fell 1.27%, and the most-traded coke contract fell 0.73%. Overseas base metals: as of 11:45, LME metals were nearly all lower. LME copper fell 0.2%, LME aluminum fell 0.89%, LME zinc fell 0.4%, LME tin fell 0.18%, LME nickel fell 0.59%, and LME lead rose 0.21%. Precious metals: as of 11:45, COMEX gold rose 0.02%, and COMEX silver fell 0.08%. Domestic precious metals: SHFE gold rose 0.34%, and the most-traded SHFE silver contract rose 0.28%. Additionally, as of the midday close, the most-traded platinum futures contract fell 0.52%, and the most-traded palladium futures contract fell 0.57%. As of the midday close, the most-traded European container shipping futures contract rose 1.75% to 1,630 points. As of 11:45 on August 13, midday quotes for selected futures: Spot and fundamentals Copper: Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a discount of 20 yuan/mt, down 40 yuan/mt from the previous trading day; standard-quality copper was quoted at a discount of 120 yuan/mt, down 40 yuan/mt from the previous trading day; and SX-EW copper was quoted at a discount of 200 yuan/mt, down 60 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 108,250 yuan/mt, down 160 yuan/mt from the previous trading day, and the average price of SX-EW copper was 108,100 yuan/mt, down 200 yuan/mt from the previous trading day. Spot market: Guangdong inventories fell for two consecutive days, with arrivals declining and warehouse withdrawals increasing slightly... Macro front China: [China Is Formulating a New Round of Action Plans for Continuous Air Quality Improvement] The State Council Information Office held a themed press conference today (13th) in the series "Opening and Starting the '15th Five-Year Plan'." At the press conference, it was noted that China has made gratifying progress in air pollution control, but there is still no room for complacency or letting up; patience and resolve must be maintained. Currently, a new round of action plans for the continuous improvement of air quality is being expedited, and the battle to keep skies blue will focus on being "higher, more precise, and more scientific." (CCTV News) [Cumulative Trading Volume of the National Carbon Emissions Trading Market Tops 900 Million mt] Huang Runqiu, Minister of Ecology and Environment, said at the "Launching the 15th Five-Year Plan" press conference series held by the State Council Information Office on August 13 that by the end of July, cumulative trading volume in the national carbon emissions trading market had exceeded 930 million mt, effectively promoting the green and low-carbon transition while driving low-cost carbon reduction across industries. (Xinhua News Agency) [Shanghai: Promote Issuance of "Computing Power Vouchers," "Model Vouchers," and "Corpus Vouchers" to Reduce the Cost of Using Digital Factors Such as Public Data, Computing Power, Models, and Corpora] Shanghai issued the "Shanghai Action Plan for Implementing the Several Measures on Further Promoting Private Investment Development." The plan states that Shanghai will provide computing power subsidies in accordance with laws and regulations, support private enterprises in renting intelligent computing resources for the R&D, training, and application of large models, and encourage universities, research institutions, and state-owned enterprises to use data storage and computing power resources built by various market entities, including private enterprises. It will publish and dynamically update the public data opening list, support private enterprises in the in-depth development and scenario-based use of specific public data, and promote the issuance of "computing power vouchers," "model vouchers," and "corpus vouchers" to reduce the cost of using digital factors such as public data, computing power, models, and corpora. It will cultivate benchmark and platform enterprises for urban digital transformation, and guide private enterprises to participate in the construction and scenario operation of digital transformation projects in areas such as transportation, logistics, and public services. It also encourages private enterprises to build demonstration projects of new-type infrastructure such as blockchain applications and large-scale robot applications. (Jin10 Data APP) [PBOC Reverse Repo Operations Post Net Withdrawal of CNY1 Billion on the Day] The PBOC did not conduct reverse repo operations today, as CNY1 billion in 7-day reverse repos matured, resulting in a net withdrawal of CNY1 billion on the day. On the Dollar Side: As of 11:45, the US dollar index was up 0.01% at 100. US core inflation in July was mild, which likely eased pressure on the US Fed to raise interest rates. Data released by the US Bureau of Labor Statistics on Wednesday showed that, excluding volatile food and energy categories, core CPI rose 0.2% MoM in July. The YoY increase was 2.5%, matching the slowest pace since March 2021. Overall, July CPI rose 0.1% MoM and 3.4% YoY. This report indicated that the energy price shock from the Iran war continued to fade in July. As the US Fed discusses whether to raise rates at its September meeting, these figures may give the US Fed more room to weigh inflation pressures against the recent slowdown in hiring. Before the September meeting, policymakers will also see more reports on employment and inflation, while investors will closely watch a speech that Fed Chairman Warsh is expected to deliver at the annual Jackson Hole symposium later this month. US stock index futures rose, while US Treasury yields were basically flat. Investors lowered their bets on a September rate hike. According to CME "FedWatch": the probability that the US Fed will keep rates unchanged by September is 59.9%, and the probability of a cumulative 25bp rate hike is 40.1%. By October, the probability that the US Fed will keep rates unchanged is 45.3%, the probability of a cumulative 25bp rate hike is 44.9%, and the probability of a cumulative 50bp rate hike is 9.8%. (Jin10 Data App) A CITIC Securities research report said that US July CPI was fully in line with expectations, core inflation remained mild, and second-round inflation effects were modest, which helped further ease market concerns about inflation risks. We continue to believe that US inflation is not sticky, and we expect headline CPI YoY growth to generally continue its mild slowdown trend in Q3 and hit bottom in September, then rebound slightly in Q4 this year and decline rapidly in March next year. We still expect the US Fed to keep rates unchanged for the whole year, and there is further room for downward revision in rate hike expectations priced into derivatives markets. A CICC research report said that US July CPI rose 0.1% MoM on a seasonally adjusted basis and 3.4% YoY, while core CPI rose 0.2% MoM and 2.5% YoY, all in line with market expectations. Energy prices continued to pull back, but international oil prices have risen again since August, increasing uncertainty about future energy prices. On the core inflation front, goods were strong while services were weak; in particular, prices of information technology products such as computers and software continued to rise, reflecting that the supply-demand mismatch caused by AI capital spending expansion is gradually transmitting to the consumer side. We believe US inflation may have entered a new phase, with its drivers gradually shifting from supply shocks such as tariffs and oil prices to demand expansion from AI investment, and the duration of inflation may be correspondingly prolonged. For the US Fed, this data eased near-term pressure to raise rates, but compared with supply-driven inflation, demand-pull inflation requires more attention from policymakers. Other currencies: RBA Assistant Governor Kent said that Australian monetary policy is currently restrictive, the three consecutive rate hikes early this year are now weighing on the economy, and the stronger Australian dollar has further reinforced this effect. He said: "Evidence suggests that monetary policy in Australia is somewhat restrictive, and the tightening earlier this year is working. Borrowing costs have risen, mortgage repayments have increased, conditions in the established housing market have weakened, and the Australian dollar has also appreciated year-to-date." He said aggregate demand growth appears to be slowing, adding that this is what policymakers want to see and is necessary to bring inflation back to target. (Jin10 Data APP) Data Front: Today will bring the US 10-year Treasury auction high yield and bid-to-cover ratio for Aug 12, US initial jobless claims for the week ending Aug 8, US July PPI y/y and m/m, UK Q2 GDP y/y preliminary, UK June three-month GDP m/m, UK June manufacturing production m/m, UK June seasonally adjusted goods trade balance, UK June industrial production m/m, and Eurozone June industrial production m/m, among others. In addition, JD.com will hold its Q2 earnings call; 2026 FOMC voter and Cleveland Fed President Hammack will speak, and 2027 FOMC voter and Richmond Fed President Barkin will speak on the economic outlook. Crude Oil: As of 11:45, both benchmark oil prices fell, with WTI down 0.96% and Brent down 0.82%. Oil prices edged down as traders waited for signs of progress on the reopening of the Strait of Hormuz. On the Middle East front, there has been almost no sign of progress on the reopening of the Strait of Hormuz. US President Trump said the United States has "complete control" over the waterway. The International Energy Agency (IEA) said that as the US-Iran war continues, the global oil market faces a supply shortfall of 1.8 million barrels per day this quarter, more than double its earlier forecast; the 2026 oil supply gap could reach its largest level in five years. According to the American Automobile Association, gasoline and diesel prices in the US have never been this high at this time of year. (Jin10 Data APP) Spot Market at a Glance: ► ► ► ► ► ► ► ► ► ► ►

This week, ternary cathode material prices recovered slightly. On the raw material front, nickel sulfate and cobalt sulfate prices continued to decline, while lithium carbonate and lithium hydroxide prices rebounded somewhat. However, overall cathode material quotations changed little and remained at cyclical lows. In terms of transaction sentiment, some cathode and battery manufacturers only made small-batch need-based restocking purchases, with limited volumes. The market as a whole still holds expectations of further price declines in the near term. On the payable front, no adjustments have been made recently to payables for nickel, cobalt, or lithium. Given the upcoming reinstatement of the lithium battery consumption tax, battery cell manufacturers may shift some cost pressures upstream, leaving limited room for upward payable adjustments. On the demand side, August orders showed stable growth. Stockpiling for new models ahead of the traditional peak season in September and October drove domestic cathode order demand, while overseas markets—particularly Europe—continued to show strong vehicle sales, further supporting ternary demand. On the consumer market front, supply remained largely stable through long-term contracts, while spot contract transactions remained subdued, with no clear signs of demand recovery yet.