On March 27, the 2026 SMM (21st) Lead & Zinc Conference and Industry Expo, organized by SMM, wrapped up successfully at Howard Johnson Agile Plaza in Chengdu, Sichuan!

►New Advances in Magnesium Materials and Processes ►Development and Application of New-Type Low-Cost, High-Strength, Corrosion-Resistant Magnesium Alloys ►Stainless Magnesium Technology: R&D Progress from Alloy Materials to Semi-Solid Processes, R&D and Application of Stainless Magnesium Alloys ►Hefei • Great “Magnesium” Chaohu — Building a First-Class Magnesium Industry Ecosystem in China ►R&D Progress and Current Industrialisation Status of Magnesium-Based Materials and Products at Baowu Magnesium ►Haitian Magnesium Alloy Injection Molding Technology and Market Outlook ►Magnesium from an International Perspective: The Transformation from a Cost-Driven Bulk Commodity to a Strategic Engineering Material ►: Focusing on the New Cycle of Supply and Demand for Magnesium Metal and Downstream Applications — Outlook for the Magnesium Market in 2026

The 2026 SMM (3rd) Global Renewable Metal Industry Chain Summit & Battery Recycling Forum will be held in Tokyo, Japan, from May 11–12, 2026. The summit aims to bring together leading global enterprises, research institutions, industry experts, and policymakers in the fields of renewable metals and battery recycling.

[SMM Weekly Survey of the Aluminum Downstream Sector: Downstream Aluminum Operating Rate Continued to Rebound to 61.9%, with High Prices Suppressing the Peak "Golden March" Season] This week, the weekly operating rate of leading downstream aluminum processing enterprises in China rose 2.4 percentage points MoM to 61.9%, overall extending the post-holiday recovery trend, with all segments rebounding MoM, and the industry as a whole entering a normal production pace.

The Premier Academic Event in the Energy Storage Field—the 9th Energy Storage Frontier Technology Conference is expected to open soon. The conference is scheduled to be held from March 31 to April 3, 2026, at the Beijing·Capital International Exhibition & Convention Center, and is hosted by the Institute of Engineering Thermophysics, Chinese Academy of Sciences; the China Energy Research Society; and the Zhongguancun Energy Storage Industry Technology Alliance. This conference features nine major tracks: the Academician Forum, Advanced Energy Storage Materials, Energy Storage Design and System Integration, Grid-Forming ESS , Battery Cells, Hydrogen Energy, Long Duration Energy Storage (LDES), Short-Duration High-Frequency Energy Storage, and Safety and Standards . Led by nine academicians, with more than 50 experts from universities and research institutes and more than 70 representatives from leading enterprises gathering together, the conference will jointly explore frontier technologies, development trends, and future challenges in the ESS sector. Established in 2017, the Energy Storage Frontier Technology Conference is an important academic brand event actively developed by the Energy Storage International Summit and Exhibition (ESIE) . The conference aims to provide a platform for experts and scholars in the ESS sector to share research achievements and discuss frontier technologies. By showcasing the latest advances in energy storage technologies, it stimulates innovative thinking and drives technological breakthroughs; grounded in the integration of academic research and industry needs, it offers new ideas for the innovative development of the energy storage industry. Conference Highlights Led by Academicians, with a Strong Lineup Nine academicians will take the lead, with more than 50 experts from universities and research institutes and more than 70 representatives from leading enterprises gathering together to discuss frontier research achievements and share in-depth industry insights. Focused on the Frontier, Comprehensive Coverage Covering hot topic areas such as advanced energy storage materials, battery cells, hydrogen energy, long duration energy storage (LDES), short-duration high-frequency energy storage, grid-forming ESS, energy storage design and system integration, and safety and standards, it provides a comprehensive interpretation of the current development status and future trends of each technology pathway. Industry–Education Integration, Jointly Seeking Development Building a high-level platform for industry–academia–research exchange and cooperation, promoting the transformation of scientific and technological achievements, and pooling efforts to drive the high-quality development of the energy storage industry. Zhongguancun Energy Storage Industry Technology Alliance Student Registration Channel for Attendance 1、 The main forum and all technical tracks of the 9th Energy Storage Frontier Technology Conference are free of charge for enrolled students. The Zhongguancun Energy Storage Industry Technology Alliance has set up a dedicated student registration channel; attendance is permitted after approval by the organizers. 2、 Registration for the General Public Please contact the organizer Zhao Han 18210188771 Visitor Registration Channel Exhibition Dates: April 1–3, 2026 Exhibition Venue: Beijing·Capital International Exhibition & Convention Center How to Visit: Scan the QR code above to make a free reservation to visit the exhibition The Wind Vane for the Development of China’s Energy Storage Industry The 14th Energy Storage International Summit and Exhibition ESIE 2026 Exhibition Dates: April 1, 2026–April 3, 2026 Summit Dates: March 31, 2026–April 3, 2026 Venue: Beijing·Capital International Exhibition & Convention Center

February 2026 coincided with the Chinese New Year holiday. Affected by holiday factors, production pace across core segments of China’s sodium-ion battery industry generally slowed, showing an “off-season reset” trend. From cathodes, anodes, and electrolyte to battery cells and end-users, production across all segments declined MoM to varying degrees, while YoY still maintained a certain degree of growth resilience.

NBS data showed that in February, the manufacturing PMI was 49.0%, down 0.3 percentage points from the previous month, indicating a pullback in the manufacturing sector’s prosperity level. In February, the non-manufacturing business activity index was 49.5%, up 0.1 percentage points from the previous month, indicating an improvement in the non-manufacturing sector’s prosperity level. In February, the composite PMI output index was 49.5%, down 0.3 percentage points from the previous month, indicating that overall production and business activities of enterprises in China slowed down from the previous month. Huo Lihui, Chief Statistician of the NBS Service Sector Survey Center, interpreted China’s PMI for February 2026. Performance of China’s PMI in February 2026 I. Performance of China’s Manufacturing PMI In February, the manufacturing PMI was 49.0%, down 0.3 percentage points from the previous month, indicating a pullback in the manufacturing sector’s prosperity level. By enterprise size, the PMI for large enterprises was 51.5%, up 1.2 percentage points from the previous month and above the threshold; the PMIs for medium- and small-sized enterprises were 47.5% and 44.8%, down 1.2 and 2.6 percentage points from the previous month, respectively, and below the threshold. By sub-index, among the five sub-indices that make up the manufacturing PMI, the production index, new orders index, raw material inventory index, employment index, and supplier delivery time index were all below the threshold. The production index was 49.6%, down 1.0 percentage points from the previous month, indicating that manufacturing production activities slowed down. The new orders index was 48.6%, down 0.6 percentage points from the previous month, indicating a decline in the prosperity of market demand in the manufacturing sector. The raw material inventory index was 47.5%, up 0.1 percentage points from the previous month, indicating that the decline in inventories of major raw materials in the manufacturing sector narrowed slightly. The employment index was 48.0%, down 0.1 percentage points from the previous month, indicating a slight pullback in the employment prosperity of manufacturing enterprises. The supplier delivery time index was 49.1%, down 1.0 percentage points from the previous month, indicating that delivery times of raw material suppliers in the manufacturing sector slowed compared with the previous month. II. Performance of China’s Non-Manufacturing PMI In February, the non-manufacturing business activity index was 49.5%, up 0.1 percentage points from the previous month, indicating an improvement in the non-manufacturing sector’s prosperity level. By industry, the construction business activity index was 48.2%, down 0.6 percentage points from the previous month; the services business activity index was 49.7%, up 0.2 percentage points from the previous month. From the perspective of service industries, the business activity indices for industries such as accommodation, catering, and culture/sports/entertainment were all in a high prosperity range above 60.0%; the business activity indices for industries such as capital market services and real estate were all below the threshold. The new orders index was 45.2%, down 0.9 percentage points MoM, indicating a pull back in non-manufacturing market demand. By industry, the new orders index for the construction industry was 42.2%, up 2.1 percentage points MoM; the new orders index for the services industry was 45.7%, down 1.4 percentage points MoM. The input prices index was 50.9%, up 0.9 percentage points MoM, indicating an overall increase in the price level of inputs used by non-manufacturing enterprises for business operations. By industry, the input prices index for the construction industry was 49.1%, down 2.9 percentage points MoM; the input prices index for the services industry was 51.2%, up 1.5 percentage points MoM. The selling price index was 48.8%, unchanged from the previous month and still below the threshold, indicating that the overall level of non-manufacturing selling prices was lower than in the previous month. By industry, the selling price index for the construction industry was 47.6%, down 0.6 percentage points MoM; the selling price index for the services industry was 49.0%, up 0.1 percentage points MoM. The employment index was 46.0%, down 0.1 percentage points MoM, indicating a slight pull back in the employment prosperity of non-manufacturing enterprises. By industry, the employment index for the construction industry was 42.5%, up 1.4 percentage points MoM; the employment index for the services industry was 46.6%, down 0.4 percentage points MoM. The business activity expectations index was 55.0%, down 1.0 percentage point MoM and still in a relatively high prosperity range, indicating that non-manufacturing enterprises remained confident in market development. By industry, the business activity expectations index for the construction industry was 50.9%, up 1.1 percentage points MoM; the business activity expectations index for the services industry was 55.8%, down 1.3 percentage points MoM. III. Performance of China’s Composite PMI Output Index In February, the composite PMI output index was 49.5%, down 0.3 percentage points MoM, indicating that overall production and business activities of enterprises in China slowed down compared with the previous month. In February, the manufacturing PMI pulled back, while the non-manufacturing business activity index rebounded slightly. —Huo Lihui, Chief Statistician of the NBS Service Survey Center, interprets China’s PMI for February 2026 On March 4, 2026, the NBS Service Survey Center and the China Federation of Logistics and Purchasing released China’s PMI. In this regard, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics (NBS), provided an interpretation. In February, affected by factors such as the Chinese New Year holiday, the manufacturing PMI was 49.0, down 0.3 percentage points MoM; the non-manufacturing business activity index was 49.5, up 0.1 percentage points MoM; and the composite PMI output index was 49.5, down 0.3 percentage points MoM. I. The Manufacturing PMI Pulled Back In February, the manufacturing PMI was 49.0, with the prosperity level down from the previous month. Judging from historical data, the PMI in the month that includes the Chinese New Year mostly shows some fluctuations. In particular, this year’s Chinese New Year holiday was extended and fell entirely in mid-to-late February, which had some impact on enterprises’ production and operations, and overall market activity in manufacturing declined. (1) Both supply and demand slowed down. The production index and the new orders index were 49.6 and 48.6, down 1.0 and 0.6 percentage points MoM, respectively, indicating a pullback in manufacturing production and market demand. By industry, the production index and new orders index for industries such as agricultural and sideline food processing and computers, communications and electronic equipment were both above the critical point, with supply and demand prosperity remaining in expansion; in industries such as textiles, apparel and accessories and automobiles, both indices remained below the critical point, with weak market activity. (2) The PMI for large enterprises continued to expand. The PMI for large enterprises was 51.5, up 1.2 percentage points MoM, with production and operations remaining in expansion; small and medium-sized enterprises were more affected by the Chinese New Year holiday, with PMIs of 47.5 and 44.8 this month, down 1.2 and 2.6 percentage points MoM, respectively, and their prosperity levels pulled back. (3) Growth momentum in high-tech manufacturing continued to emerge. The high-tech manufacturing PMI was 51.5, remaining in expansion territory and significantly higher than the overall manufacturing level, indicating a favorable development trend in related industries; the consumer goods industry PMI was 48.8, up 0.5 percentage points MoM, with a rebound in the prosperity level; the PMIs for equipment manufacturing and high energy-consuming industries were 49.8 and 47.8, down 0.3 and 0.1 percentage points MoM, respectively, with their prosperity levels pulling back. (4) Enterprise expectations improved. The index of expectations for production and business activities was 53.2, up 0.6 percentage points MoM, indicating that manufacturing enterprises’ confidence in market development after the Chinese New Year strengthened. By industry, the index of expectations for production and business activities in industries such as general equipment and railway, ship, aerospace and aviation equipment was above 56.0, in a relatively high prosperity range, and related enterprises were more optimistic about near-term industry development. II. Non-Manufacturing Business Activity Index Edged Up Slightly In February, the non-manufacturing business activity index stood at 49.5%, up 0.1 percentage point from the previous month, indicating some improvement in the overall prosperity level of the non-manufacturing sector. (I) The service sector’s prosperity level rebounded. The service sector business activity index was 49.7%, up 0.2 percentage point from the previous month. By industry, driven by the Chinese New Year holiday effect, business volumes grew relatively quickly in industries related to residents’ travel and consumption; among them, the business activity indices for accommodation, catering, and culture, sports and entertainment all remained in the high-prosperity range above 60.0%, while those for retail and air transport rose to above 52.0%. Meanwhile, the business activity indices for capital market services and real estate remained at low levels, with subdued market activity. From the perspective of market expectations, the service sector business activity expectations index was 55.8%, remaining in a relatively high-prosperity range, indicating that service sector enterprises remained optimistic about near-term market developments. (II) The construction sector’s prosperity level declined. Affected by factors such as employees of enterprises returning to their hometowns in large numbers during the Chinese New Year holiday and the suspension of construction at some projects, the construction sector business activity index fell to 48.2%, down 0.6 percentage point from the previous month, and the construction sector’s prosperity level continued to pull back. From the perspective of market expectations, the construction sector business activity expectations index was 50.9%, up 1.1 percentage points from the previous month, returning above the threshold, indicating that construction sector enterprises’ confidence in future industry development had somewhat recovered. III. Composite PMI Output Index Pulled Back In February, the composite PMI output index was 49.5%, down 0.3 percentage point from the previous month, indicating that overall production and business activities of enterprises in China slowed down somewhat MoM. The manufacturing production index and the non-manufacturing business activity index, which make up the composite PMI output index, were 49.6% and 49.5%, respectively.

National crude steel demand decreased from 1.05 billion mt in 2020 to 910 million mt in 2025, with the steel consumption in manufacturing (machinery, automobiles, home appliances, and ships) increasing from 242 million mt to 280 million mt, a rise of 15.7%, and its share rising from 23% to 31%, becoming a key force in boosting the upgrade of crude steel demand structure. In contrast, construction demand fell from 631 million mt to 440 million mt, with its share dropping from 60% to 49%.

SMM, February 28th， Driven by the global clean energy transition, the energy storage industry is achieving steady growth. Its core value lies in effectively mitigating the inherent intermittency and volatility of renewable energy sources like wind and solar power, providing critical assurance for stable clean electricity output. This development trend will sustainably drive demand for key metals across the energy storage supply chain. As one of the core materials, aluminum applications in energy storage systems primarily focus on aluminum sheets, strips, foils, and extrusions. I. Scale of Aluminum Consumption in ESS According to SMM calculations, each 1GWh energy storage system consumes approximately 1,780 tons of aluminum , of which aluminum extrusions account for about 44%, aluminum sheets and strips account for about 39%, and aluminum foil accounts for about 18%. From the perspective of industry growth drivers, global energy storage cell production is entering a period of rapid growth: According to SMM estimates, the global demand for energy storage cells will be approximately 559 GWh in 2025, and is expected to reach 779 GWh in 2026, with a year-on-year increase of 39%; even as the base expands, the annual demand from 2027 to 2030 will still maintain a growth rate of over 20%. In terms of aluminum demand, Chinese enterprises dominate the energy storage market, driving increased domestic aluminum consumption. SMM research indicates China's energy storage battery cabinet shipments will reach approximately 400GWh in 2025, accounting for over 80% of global share. Based on SMM's calculation of 1,780 tons of aluminum per GWh for energy storage systems and global battery cabinet shipments, the global aluminum demand for energy storage systems in 2025 will reach 850,000 tons, with China consuming approximately 710,000 tons. Domestic demand for aluminum in energy storage is projected to increase by 280,000 tons in 2026. However, it should be noted that with the continuous iteration of large-cell technology, the unit consumption of aluminum structural components in energy storage systems has room for reduction. In the long term, there is still potential for optimizing aluminum consumption per unit. II. Calculation of Aluminum Profile Materials per Unit of ESS Due to design variations across different energy storage products, this section separates aluminum consumption calculations for energy storage cells from other system components . 1.Core Application Scenarios of Aluminum Materials in EES Aluminum materials, with advantages such as lightweight, corrosion resistance, and excellent processing performance, have been deeply integrated into the core components of ESS, with their main applications concentrated in three major areas: Energy Storage Cell Component: Primarily used for cell aluminum foil, aluminum casings, and tabs. Pack Component : Primarily used for battery trays, liquid cooling plates, battery end plates, and battery enclosures, etc. Energy Storage System Component: Main applications include energy storage system enclosures, radiators, etc. 2.Aluminum Consumption in Energy Storage Cells Aluminum usage in energy storage cells primarily involves battery foil, aluminum casings, and tabs. Currently, the aluminum consumption per cell is approximately 615t/GWh, with aluminum foil accounting for 300-330 t/GWh. 3.Aluminum Consumption in ESS Due to variations in technical approaches and application scenarios, different manufacturers employ distinct design solutions for energy storage systems. When calculating aluminum consumption, we use industry average values: In industrial, commercial, and residential energy storage projects, each rack is on average configured with 4.5 battery packs. In grid-side energy storage projects, each rack averages 8 battery packs, with each system containing an average of 12 rack. The aluminum components of the battery pack include the tray, liquid cooling plate, box body, and end plate. The structure of the battery tray is similar to that of new energy vehicle battery trays, but the product specifications are smaller and the cross-sectional design is more simplified. SMM calculates the aluminum consumption of a single battery pack based on the average weight data of components provided by mainstream aluminum production enterprises. In addition, the core equipment of the energy storage system, the power conversion system (PCS), and its supporting radiator also need to consume aluminum materials.While aluminum enclosures exist for ESS, market research indicates steel enclosures currently dominate the market, with aluminum enclosures holding less than 20% market share. The weight range per unit is from several hundred kilograms to 2 tons. Based on the above parameter calculations: the comprehensive aluminum consumption of industrial, commercial, and residential energy storage systems is 2030 tons/GWh,while for grid-side energy storage systems it is 1,720 tons/GWh. Weighted by the shipment share of different energy storage system types, the final comprehensive aluminum consumption for energy storage systems is calculated as 1,780 t/GWh. 4.Consumption Structure of Aluminum Materials in Energy Storage Systems From a production process perspective, the manufacturing methods for core components such as aluminum casings and liquid cooling plates encompass multiple pathways including sheet metal stamping, profile processing, and casting. This section breaks down the consumption structure of aluminum material categories in energy storage systems based on the proportion of mainstream process applications: aluminum extrusions account for approximately 44%, aluminum sheets and strips account for approximately 39%, and aluminum foil accounts for approximately 18%.

The National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) released China's purchasing managers' index (PMI) for January 2026 today (31st). The data showed that in January, China's manufacturing market demand tightened somewhat, but enterprise production maintained an expansionary trend, with the industrial structure continuing to optimize. The service sector operated relatively stably, with business expectations continuously improving. The manufacturing PMI for January 2026 was 49.3%, a decrease of 0.8 percentage points from the previous month. The PMI for equipment manufacturing in January was 50.1%, and for high-tech manufacturing, it was 52%. Both equipment and high-tech manufacturing sectors are developing steadily and positively, with the manufacturing industrial structure continuously optimizing. Operation of China's Purchasing Managers' Index in January 2026 I. Operation of China's Manufacturing PMI In January, the manufacturing PMI was 49.3%, a decline of 0.8 percentage points from the previous month, indicating a pullback in the level of manufacturing activity. By enterprise size, the PMI for large enterprises was 50.3%, down 0.5 percentage points from the previous month, yet still above the critical point; the PMIs for medium and small enterprises were 48.7% and 47.4% respectively, dropping by 1.1 and 1.2 percentage points from the previous month, both below the critical point. Looking at the sub-indices, among the five sub-indices constituting the manufacturing PMI, the production index and supplier delivery time index were both above the critical point, while the new orders index, raw material inventory index, and employment index were all below the critical point. The production index stood at 50.6%, a drop of 1.1 percentage points from the previous month, yet still above the critical point, indicating that manufacturing production activities remained in an expansionary state. The new orders index was 49.2%, a decrease of 1.6 percentage points from the previous month, suggesting a slowdown in manufacturing market demand. The raw material inventory index was 47.4%, down 0.4 percentage points from the previous month, indicating a continued reduction in the stock of major raw materials in the manufacturing sector. The employment index was 48.1%, a decline of 0.1 percentage points from the previous month, showing a slight pullback in the employment climate for manufacturing enterprises. The supplier delivery time index was 50.1%, a decrease of 0.1 percentage points from the previous month, yet still above the critical point, indicating a continuous acceleration in the delivery times of raw material suppliers in the manufacturing sector. II. Operation of China's Non-Manufacturing PMI In January, the non-manufacturing business activity index was 49.4%, a drop of 0.8 percentage points from the previous month. By industry, the construction sector's business activity index was 48.8%, a decrease of 4 percentage points from the previous month; the service sector's business activity index was 49.5%, a decline of 0.2 percentage points from the previous month. Looking at the service sector, the business activity indices for monetary and financial services, capital market services, insurance, and other industries were all above 65.0%; while the business activity indices for wholesale, accommodation, real estate, and other industries were all below the threshold. The new orders index stood at 46.1%, down 1.2 percentage points MoM, indicating a decline in market demand prosperity in the non-manufacturing sector. By sector, the new orders index for construction was 40.1%, down 7.3 percentage points MoM; the new orders index for services was 47.1%, down 0.2 percentage points MoM. The input prices index was 50.0%, down 0.2 percentage points MoM, at the threshold, indicating that input prices for non-manufacturing enterprises' operational activities were generally flat compared to the previous month. By sector, the input prices index for construction was 52.0%, up 1.2 percentage points MoM; the input prices index for services was 49.7%, down 0.4 percentage points MoM. The selling price index was 48.8%, up 0.8 percentage points MoM, indicating that the overall decline in selling prices in the non-manufacturing sector narrowed. By sector, the selling price index for construction was 48.2%, up 0.8 percentage points MoM; the selling price index for services was 48.9%, up 0.8 percentage points MoM. The employment index was 46.1%, unchanged from the previous month, indicating that the employment prosperity of non-manufacturing enterprises was basically stable. By sector, the employment index for construction was 41.1%, up 0.1 percentage points MoM; the employment index for services was 47.0%, unchanged from the previous month. The business activity expectations index was 56.0%, down 0.5 percentage points MoM, still remaining in a high prosperity range, indicating that most non-manufacturing enterprises maintain optimistic market expectations. By sector, the business activity expectations index for construction was 49.8%, down 7.6 percentage points MoM; the business activity expectations index for services was 57.1%, up 0.7 percentage points MoM. III. Operation of China's Composite PMI Output Index In January, the composite PMI output index was 49.8%, down 0.9 percentage points MoM, indicating that the overall production and operating activities of Chinese enterprises slowed down compared to the previous month. China's Purchasing Managers' Index Pulled Back in January —Huoli Hui, Chief Statistician of the NBS Service Industry Survey Center, Interprets China's Purchasing Managers' Index for January 2026 On January 31, 2026, the NBS Service Industry Survey Center and the China Federation of Logistics & Purchasing released China's Purchasing Managers' Index. In this regard, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics (NBS), provided an interpretation. In January, the manufacturing PMI, non-manufacturing business activity index, and composite PMI output index registered 49.3%, 49.4%, and 49.8%, respectively, down 0.8, 0.8, and 0.9 percentage points MoM, indicating a pullback in economic prosperity. I. Manufacturing PMI Declined Slightly, While Production Continued to Expand In January, as some manufacturing industries entered the traditional off-season and effective market demand remained insufficient, the manufacturing PMI stood at 49.3%, reflecting a decline in prosperity compared to the previous month. (1) Enterprise production continued to expand. The production index was 50.6%, above the threshold, indicating sustained expansion in manufacturing production; the new orders index was 49.2%, reflecting a pullback in market demand. By sector, the production and new orders indices for agricultural and non-staple food processing, railway, ship, aerospace equipment, and other industries all exceeded 56.0%, indicating rapid release of production and demand; for petroleum, coal, and other fuel processing, automotive, and other industries, both indices were below the threshold, suggesting slowed market demand and a pullback in production in related sectors. (2) Both price indices rebounded. Influenced by factors such as recent price increases in some bulk commodities, the major raw material purchase price index and ex-factory price index registered 56.1% and 50.6%, respectively, up 3.0 and 1.7 percentage points MoM. Notably, the ex-factory price index rose above the threshold for the first time in nearly 20 months, indicating an overall improvement in the price level of the manufacturing market. By sector, the major raw material purchase price index and ex-factory price index for non-ferrous metal smelting and rolling processing, electrical machinery and equipment, and other industries both rose above 55.0%, reflecting overall price increases for raw material procurement and product sales in related sectors; for timber processing and furniture, petroleum, coal, and other fuel processing, and other industries, both price indices remained below the threshold. (3) The PMI for large enterprises continued to exceed the threshold. The PMI for large enterprises was 50.3%, remaining in expansion territory, with their supportive role continuing to be evident; the PMI for medium and small enterprises were 48.7% and 47.4%, respectively, down 1.1 and 1.2 percentage points MoM, indicating a pullback in their prosperity levels. (4) High-tech manufacturing continued to lead. The PMI for high-tech manufacturing was 52.0%, staying at or above the relatively high level of 52.0% for two consecutive months, indicating sustained positive development trends in related industries. The PMI for equipment manufacturing was 50.1%, remaining in expansion territory. The PMI for consumer goods and high-energy-consumption industries were 48.3% and 47.9%, respectively, reflecting a pullback in their prosperity levels. (V) Enterprise Expectations Remain Optimistic. The business activity expectations index stands at 52.6%, continuing to be above the critical point. By industry, the business activity expectations index for agricultural and sideline food processing, food and beverage refining, and tea industries has remained above 56.0% for two consecutive months, indicating strong confidence among related enterprises in the recent development of their respective industries. II. Non-Manufacturing Business Activity Index Pulls Back Slightly, Financial Market Activity Remains High In January, influenced by factors such as a decline in the prosperity of the construction industry, the non-manufacturing business activity index was 49.4%, down 0.8 percentage points from the previous month, indicating a pullback in the overall prosperity level of the non-manufacturing sector. (I) Service Sector Prosperity Drops Back Slightly. The service sector business activity index was 49.5%, down 0.2 percentage points from the previous month. By industry, the business activity indices for monetary financial services, capital market services, and insurance were all above 65.0%, showing high market activity; the real estate industry's business activity index fell below 40.0%, with a generally weak prosperity level. In terms of market expectations, the service sector business activity expectations index was 57.1%, up 0.7 percentage points from the previous month, indicating that service enterprises' confidence in the near-term market development has strengthened somewhat. (II) Construction Industry Prosperity Declines. Affected by recent low temperatures and the approaching Chinese New Year holiday, construction production and operations slowed down, with the business activity index at 48.8%, down 4.0 percentage points from the previous month, marking a significant pullback in the construction industry's prosperity level. In terms of market expectations, the construction industry business activity expectations index was 49.8%, dropping below the critical point, suggesting that construction enterprises are cautious about the industry's development prospects. III. Composite PMI Output Index Slightly Below Critical Point In January, the composite PMI output index was 49.8%, down 0.9 percentage points from the previous month, indicating that overall enterprise business activities slowed down compared to the previous month. The manufacturing production index and non-manufacturing business activity index, which make up the composite PMI output index, were 50.6% and 49.4%, respectively.