On August 10, Chifeng Gold's share price rose, closing up 3.9% at 43.73 yuan per share as of the end of trading. In news developments: On August 8, Chifeng Gold issued an announcement regarding its controlled subsidiary suspending operations at the Mengkang Rare Earth Ore Project in Laos. The announcement stated: In response to and in strict compliance with policy requirements for rare earth resource development, and to earnestly fulfill corporate social responsibility, on August 7, 2026, the 9th Board of Directors of Chifeng Jilong Gold Mining Group Co., Ltd. at its 9th session reviewed and approved the "Proposal on the Controlled Subsidiary Suspending Operations at the Mengkang Rare Earth Ore Project in Laos," agreeing that its controlled subsidiary, Xiamen Chijin Xiamen Tungsten Metal Resources Co., Ltd., shall suspend operations at the Mengkang Rare Earth Ore Project located in Mengkang County, Xieng Khouang Province, Lao People's Democratic Republic. The project overview provided in Chifeng Gold's announcement showed: In 2022, the company formed a joint venture with Xiamen Tungsten Co., Ltd. ("Xiamen Tungsten") named Shanghai Chijin Xiamen Tungsten Metal Resources Co., Ltd. (the company held 51%, Xiamen Tungsten held 49%, now renamed "Xiamen Chijin Xiamen Tungsten Metal Resources Co., Ltd."), aiming to leverage the strengths of both parties to build a cooperation platform for rare earth resource development and to advance the implementation and growth of the company's rare earth resource development business in Laos. On March 4, 2024, the company's controlled subsidiary Chijin Xiamen Tungsten and its wholly owned subsidiary CHIXIA Laos Holdings Limited ("CHIXIA Laos"), along with China Investment (Properties) Co., Ltd. ("CIP") and its wholly owned subsidiary China Investment Mining (Laos) Sole Co., Ltd. (now renamed "Chixia Mining (Laos) Co., Ltd.", the "Target Company"), entered into an Equity Transfer Agreement. CHIXIA Laos acquired 90% equity of the Target Company held by CIP through cash and debt assumption. As of March 25, 2025, all parties had confirmed in writing that the transaction was completed. The Target Company primarily operates the Mengkang Rare Earth Ore Project. Apart from this project, Chijin Xiamen Tungsten and its controlled subsidiaries do not operate any other rare earth projects. Since completion, the project has been in the trial production stage. The retained resource volume of the Mengkang Rare Earth Ore is as follows: Regarding the suspension of operations at the Mengkang Rare Earth Ore Project by Chijin Xiamen Tungsten, Chifeng Gold's announcement stated: As the national rare earth resource policy system becomes increasingly comprehensive, Chijin Xiamen Tungsten will comprehensively review and optimize its relevant operations to ensure all business activities are conducted in compliance with laws and regulations. In response to and in strict compliance with policy requirements for rare earth resource development, and to earnestly fulfill corporate social responsibility, after prudent study and assessment, Chijin Xiamen Tungsten has decided to suspend operations at the Mengkang Rare Earth Ore Project. It will continue the renewal process for mining rights and certificates, closely monitor relevant policy changes, and actively seek solutions. The board of directors of the company has approved the suspension of operations at the Chijin Xiamen Tungsten's Mongkhon rare earth project in Laos and authorized management-designated personnel to handle related matters within the board's purview, including but not limited to asset disposal, personnel settlement, and debt restructuring. Should any related matters exceed the board's decision-making authority, a separate shareholders' meeting will be convened for deliberation. When discussing the impact on the company, Chifeng Gold stated: The Mongkhon rare earth project is still in the trial mining phase. In 2025, Chijin Xiamen Tungsten produced 998.56 mt of rare earth products, with a net loss attributable to Chifeng Gold of -54.0637 million yuan, representing an absolute value of 1.75% of Chifeng Gold's consolidated net profit attributable to parent company shareholders for 2025. In Q1 2026, the company produced 63.6 mt of rare earth products, with a net profit attributable to Chifeng Gold of 372,800 yuan, representing 0.04% of its consolidated net profit attributable to parent company shareholders for Q1 2026. The suspension of operations is expected to have a relatively small overall impact on the company's operating performance. Specific details are subject to the company's audited financial reports. Currently, it remains uncertain when the project will resume operations, and the company will continue to monitor relevant policy changes and subsequent project developments. The company's main operations, such as gold and copper cathode, are performing well, with a sound and stable financial position and an asset-liability ratio at a relatively low industry level, providing a solid guarantee against various force majeure events. The company will actively respond and make its best effort to mitigate the adverse effects of the rare earth development suspension. Meanwhile, it will continue to focus on its main business, increase investment and accelerate project progress in resource exploration, technological transformation, and new expansion projects to lay a solid foundation for achieving its medium and long-term strategic goals. Chifeng Gold also announced on August 8: To ensure the production continuity and capacity utilization rate of its holding subsidiary, Lane Xang Minerals Limited Company (an indirectly held subsidiary operating the Sepon gold-copper mine in the Lao People's Democratic Republic, hereinafter referred to as "Laos," and referred to as "Lane Xang Minerals"), and to advance the development and mining of the Khanong project as planned, with primary ore mining commencing in Q2 2027 to ensure the designed capacity of 1.3 million mt/year reaches full production and to optimize the utilization rate of the newly commissioned 1.2 million mt/year mill, the company, following multiple rounds of tenders and technical and commercial evaluations, intends for Lane Xang Minerals to sign a Mine Development and Mining Services Contract as an independent contractor with China Railway 19th Bureau Group Laos Sole Co., Ltd. (hereinafter referred to as the "Contractor"). Under this contract, the Contractor will provide open-pit mining services (including ore mining and waste rock removal) and other mining services and activities related to Lane Xang Minerals' mining operations in Laos. Chifeng Gold stated that this contract constitutes a daily operational transaction, and its consideration makes it a disclosable transaction under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. On August 7, 2026, the company convened the ninth meeting of its ninth board of directors, which reviewed and approved the proposal regarding the signing of an overseas daily operational contract by the holding subsidiary, agreeing for Lane Xang Minerals to enter into the contract with the Contractor for an amount not exceeding $220,163,577 (excluding VAT), and authorized management to handle all subsequent contract-related matters based on project progress. This contract does not involve related-party transactions and, per the securities regulatory rules of the company's stock listing venues, this matter does not require shareholder meeting approval. Regarding the impact of the contract's execution on the listed company, Chifeng Gold announced that mining operations inherently involve various risks and uncertainties, including but not limited to geological changes, equipment failures, safety incidents, and cost fluctuations. Under the company's asset-light strategy, adopting an independent professional mining contractor model locks in unit mining costs for the contract period, effectively transferring cost risks related to fuel, labour, and consumables, which aligns with industry practice and allows the company to focus on ore processing and recovery rate optimization. To ensure smooth project progress, production continuity, and capacity utilization, the company invited qualified contractors to bid through a public tender process. After multiple rounds of technical and commercial reviews, this Contractor was ultimately selected as the bid winner due to its comprehensive strength and highly competitive bid. The Contractor's parent company is an experienced international mining services firm specializing in open-pit mine operations. Leveraging its experience and advanced knowledge, outsourcing part of the open-pit operations to the Contractor offers a more cost-effective solution for developing Lane Xang Minerals' Sepon gold-copper mine over the long term. The rates quoted by the Contractor were based on local materials, labour costs, and industry market price levels for the project. The contract price structure was determined through fair negotiation between the parties based on the project's specific scope, construction requirements, and market conditions, comprehensively considering factors such as project scale, quality standards, and mining operation pace. Based on these factors, the company believes the pricing adheres to general commercial practices, is fair and reasonable, aligns with the overall interests of the company and its shareholders, has a sufficient basis in commercial reasonableness, and represents the best interests of the company and its shareholders. (1) The above contract is a daily operational transaction. Its signing and smooth implementation will have a positive impact on the company's current and future performance, enhancing its ongoing profitability. (2) The transaction adheres to fair and equitable market pricing principles, without harming the interests of the company or its shareholders, and meets the company's actual operational development needs. (3) The contract's execution does not affect the company's business independence, nor will it create a dependency on the Contractor. In terms of performance, Chifeng Gold disclosed its H1 performance forecast on the evening of July 14, indicating that, based on preliminary financial estimates, the net profit attributable to shareholders of the publicly listed firm for H1 2026 is expected to be between 1.7 billion yuan and 1.78 billion yuan, an increase of 593.1 million yuan to 673.1 million yuan compared with 1,106.9 million yuan for the same period last year, up 54% to 61% YoY. The net profit attributable to shareholders of the publicly listed firm, excluding non-recurring gains and losses, is expected to be between 1.71 billion yuan and 1.79 billion yuan, an increase of 598.09 million yuan to 678.09 million yuan compared with 1,111.91 million yuan for the same period last year, up 54% to 61% YoY. For the primary reasons behind the performance changes for the period, Chifeng Gold explained that the substantial YoY increases in both net profit metrics were mainly driven by a significant rise in gold prices compared with the same period last year, with the average gold sales price up approximately 43% YoY, alongside the company's continuous efforts to strengthen production organization and operational management. Regarding its main business, Chifeng Gold introduced in its 2025 annual report that the company operates in the non-ferrous metal mining and beneficiation industry, with key products including precious metals like gold and non-ferrous metals like copper cathode. Its core main business is the mining, beneficiation, and sale of gold, while also engaging in multi-metal mining/beneficiation and comprehensive resource recovery. The company operates 6 gold mines and 1 multi-metal mine globally, with a business footprint covering China, Southeast Asia, and West Africa. Domestically, subsidiaries Jilong Mining, Wulong Mining, Huatai Mining, and Jintai Mining focus on gold mining and beneficiation, while Hanfeng Mining concentrates on zinc, lead, copper, and molybdenum multi-metal mining and beneficiation. Its holding subsidiary, Laos-based Lane Xang Minerals, focuses on gold mining/beneficiation and copper mining/smelting. Holding subsidiary Wassa in Ghana focuses on gold mining and beneficiation. Additionally, holding subsidiary Guangyuan Technology is engaged in comprehensive resource recovery, specializing in the dismantling of waste electrical and electronic products for environmental protection. A research report from Huaxin Securities on August 10 noted: On the data front, the US July ISM Manufacturing PMI was 55.6, versus a prior reading of 53.3 and expectations for 54. The US July ISM Services PMI was 54.1, versus a prior reading of 54 and expectations for 54.5. US initial jobless claims for the week ending August 1 were 199,000, versus a prior reading of 197,000 and expectations for 205,000. The US July unemployment rate was 4.1%, versus a prior reading of 4.2% and expectations for 4.2%. US nonfarm payrolls for July changed by -23,000, versus a prior reading of 57,000 and expectations for 80,000. A breakdown of the employment data shows that the private sector added a net 30,000 jobs, including a net gain of 25,000 in the goods-producing sector and a net gain of 5,000 in the service-providing sector, while the government sector had a net loss of 53,000 jobs. Overall, employment was mainly supported by the private sector, with the government sector declining. According to the CME FedWatch Tool, the probability of a 25bp rate hike by the US Fed in September 2026 fell to 43%, down from 67% a week ago (July 31). In summary, weakening expectations for US Fed interest rate hikes, combined with the PBOC’s continued gold purchases, which accelerated again in July, are expected to drive a continued rebound in gold prices. A Pacific Securities commentary on Chifeng Gold’s performance from May 7 indicated that multiple technological transformation projects, combined with scheduled maintenance, led to a YoY decline in gold production. In Q1 2026, the company's gold production was 2.98 mt, down 10.7% YoY and 21.7% QoQ, achieving 20% of the full-year target. The production decline was mainly due to these transformations and routine maintenance. Specifically, Jilong Mining's hoist upgrade from a single-rope to a multi-rope system and Wulong Mining's retrofitting of several blind shafts temporarily constrained ore extraction capacity. The Laos Sepon gold-copper mine's beneficiation plant underwent a large-scale annual maintenance shutdown, which, combined with a planned shutdown for one of its high-temperature autoclaves, led to a YoY decline in ore processing volume. A higher tax rate, coupled with the production decline, led to an increase in unit sales costs. Expense ratios were relatively stable, and the asset-liability ratio continued to decline. In Q1 2026, the company’s ROE was 6.9%, up 2.5 pct YoY; period expense ratio was 5.9%, down 0.6 pct YoY and up 0.1 pct QoQ. As of Q1 2026, the company’s asset-liability ratio was 29.4%, down 9.3 pct YoY and 4.5 pct QoQ. Risk warnings: price wild swings, cost side exceeding expectations, project progress falling short of expectations

Non-Oriented Silicon Steel Price Dynamics Shanghai B50A800 grade: 4,350-4,350 yuan/mt Guangzhou B50A800 grade: 4,150-4,150 yuan/mt Wuhan 50WW800 grade: 4,200-4,200 yuan/mt Shanghai market: This week, spot prices of cold-rolled non-oriented silicon steel in the Shanghai market were in the doldrums, with most grades falling by 30-100 yuan/mt and overall transaction performance was poor. Market feedback indicated that ferrous metals futures were weak at first then strengthened later, leading to heavy wait-and-see sentiment. Currently still in the off-season, downstream motor enterprises mainly made just-in-time procurement, traders were cautious in ordering and maintained low inventory strategies, and overall market inventory remained at low levels. Overall, spot prices of cold-rolled non-oriented silicon steel in the Shanghai market are expected to be in the doldrums next week. Guangzhou market: This week, the cold-rolled non-oriented silicon steel market in Guangzhou was in the doldrums, with most grades falling by 30-50 yuan/mt and transactions being sluggish. Market feedback indicated that HRC futures were first down then up, slightly restoring market confidence, but the industry is currently in the traditional consumption off-season. Downstream end-users such as motor and appliance enterprises maintained low operating rates, and their procurement sentiment was cautious and conservative, continuing to purchase as needed, with overall stockpiling willingness remaining low. Overall, spot prices of cold-rolled non-oriented silicon steel in the Guangzhou market are expected to be in the doldrums next week. Wuhan market: This week, cold-rolled non-oriented silicon steel prices in Wuhan were in the doldrums, with most grades falling by 50-80 yuan/mt and transaction performance was poor. Market feedback indicated that the current market resource circulation was limited, and cost support remained, leading to some recovery in market expectations, but traders were cautious about future market trends and continued to control inventory levels. Overall, spot prices of cold-rolled non-oriented silicon steel in Wuhan are expected to be in the doldrums next week. Data Source Statement: (All data in this report, except for public information, are based on public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, National Bureau of Statistics (NBS) data, customs import and export data, and various data released by major associations and institutions), market communication, and rely on SMM's internal database models, and are comprehensively analyzed and reasonably inferred by the research team. They are for reference only and do not constitute investment advice. SMM reserves the right of final interpretation of this statement and the right to adjust and modify the statement content according to actual circumstances.

SMM CR Production Schedule: In August, steel mill CR production schedule fell 2.5%, and daily average production schedule fell 2.5% According to SMM’s latest tracking, the total planned volume of cold-rolled commercial material from 31 mainstream CR sheet steel mills this month was 3.9262 million mt, down 100,300 mt or 2.5% from the actual cold-rolled commercial material production of last month. On a daily average basis, as the number of days in August was the same as in July, the daily average production schedule for cold-rolled commercial material in August was 126,700 mt, down 2.5% MoM from the actual daily average production of last month. SMM HR Production Schedule: In August, steel mill HR production schedule fell 2.5%, and daily average production schedule fell 2.5% According to SMM’s latest tracking, the total planned volume of hot-rolled commercial material from 39 mainstream HRC steel mills this month was 13.086 million mt, down 329,700 mt or 2.5% from the actual hot-rolled commercial material production of last month. On a daily average basis, as the number of days in August was the same as in July, the daily average production schedule for hot-rolled commercial material in August was 422,100 mt, down 2.5% MoM from the actual daily average production of last month. This month, the total planned volume of hot-rolled commercial material from 54 steel mills after SMM’s sample expansion was 17.433 million mt, down 1.3% MoM from the actual production of last month. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as “SMM”), which enjoys full copyright and related intellectual property rights in accordance with the law. All content contained in this report (including but not limited to any information such as news, articles, data, charts, images, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, etc.) is owned or held by SMM or its relevant rights holders. The above rights are strictly protected by the Copyright Law of the People's Republic of China, Trademark Law of the People's Republic of China, Anti-Unfair Competition Law of the People's Republic of China, and other relevant laws and regulations as well as applicable international treaties. Without SMM’s prior written authorization, no organization or individual shall: 1. Use all or part of this report in any form (including but not limited to reproduction, modification, sale, transfer, display, translation, compilation, dissemination); 2. Disclose the content of this report to any third party; 3. Permit or authorize any third party to use the content of this report; 4. For any unauthorized use, SMM will pursue the infringer’s legal liability in accordance with the law, requiring them to bear legal liabilities including but not limited to contractual breach liability, restitution of unjust enrichment, and compensation for direct and indirect economic losses. Data Source Statement: (Data in this report other than publicly available information are derived from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, National Bureau of Statistics data, customs import and export data, various data published by major associations and institutions, etc.), market communication, and based on SMM’s internal database model, through comprehensive analysis and reasonable inference by the research team, for reference only, and do not constitute decision-making advice.) SMM reserves the final right to interpret the terms of this statement and the right to adjust and modify the content of the statement based on actual circumstances.

According to SMM estimates, China's refined bismuth production in July 2026 will significantly increase by approximately 13.5% MoM compared to June's national refined bismuth output. Market participants believe this increase is within a reasonable range, which also indirectly reflects the reasons behind the recent period of weaker market prices. Note: Since October 2022, SMM has been publishing its assessed national refined bismuth production. Thanks to SMM's high coverage rate of the bismuth industry, SMM's survey includes a total of 24 refined bismuth producers distributed across 8 provinces nationwide, with total sample capacity exceeding 50,000 mt and total capacity coverage rate above 99%. This report is an original work and/or compilation by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"). SMM legally owns the copyright and is protected by the Copyright Law of the People's Republic of China and other applicable laws, regulations, and international treaties. Without written permission, no part of this report may be reproduced, modified, sold, transferred, displayed, translated, compiled, disseminated, or otherwise disclosed to third parties, nor may third parties be licensed to use it. Otherwise, upon discovery, SMM will pursue legal action for infringement, including but not limited to claiming contractual breach liability, returning unjust enrichment, and compensating for direct and indirect economic losses. The contents of this report, including but not limited to information, articles, data, charts, images, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, and any or all information, are protected by the Copyright Law of the People's Republic of China, the Trademark Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, and other laws, regulations, and applicable international treaties regarding copyright, trademark rights, domain name rights, commercial data property rights, and other rights, and are owned or held by SMM and its related rights holders. Without written permission, no institution or individual may reproduce, modify, use, sell, transfer, display, translate, compile, disseminate, or otherwise disclose the above contents to third parties, nor may they license third parties to use them. Otherwise, upon discovery, SMM will pursue legal action for infringement, including but not limited to claiming contractual breach liability, returning unjust enrichment, and compensating for direct and indirect economic losses. *All data in this report are based on publicly available market information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, National Bureau of Statistics (NBS) data, customs import and export data, various data published by various associations and institutions, etc.), and relying on SMM's internal database models, are comprehensively processed internally by the SMM research team, providing reasonable inferences. The information provided in the report is for reference only, and risks are borne by the user. This report does not constitute direct investment research advice. Clients should make prudent decisions and should not substitute this for independent judgment. Any decisions made by clients are unrelated to SMM. Furthermore, any losses and liabilities arising from unauthorized or illegal use of the views in this report are unrelated to SMM. SMM reserves the right to modify and the final interpretation of the terms of this statement.

Based on SMM estimates, China's antimony ingot production (including antimony ingot, crude antimony converted, antimony cathode, etc.) in July 2026 was up about 30% MoM, showing a sharp increase. Regarding the sharp increase in July, some market participants considered it a normal phenomenon, as customs data showed that antimony ore imports from outside China each exceeded 10,000 mt in April, May, and June, and the large volume of ore imports would inevitably translate into higher antimony ingot production. Note: Since May 2022, SMM has published its assessed national antimony ingot production (including antimony ingot, crude antimony converted, antimony cathode, etc.). Thanks to SMM's high coverage of the antimony industry, the survey covers a total of 33 antimony ingot producers across 8 provinces, with total sample capacity exceeding 20,000 mt and a total capacity coverage rate of over 99%. This report is an original work and/or compilation created by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally owns the copyright, protected by the Copyright Law of the People's Republic of China and other applicable laws, regulations, and international treaties. Without written permission, no reproduction, modification, sale, transfer, display, translation, compilation, dissemination, or disclosure of the above content to any third party in any form, or licensing any third party to use it, is allowed. Once discovered, SMM will pursue legal liability for infringement, including but not limited to claims for breach of contract, restitution of unjust enrichment, and compensation for direct and indirect economic losses. The content contained in this report, including but not limited to any or all information such as news, articles, data, charts, pictures, images, sounds, videos, logos, advertisements, trademarks, trade names, domain names, layout designs, etc., is protected by the Copyright Law of the People's Republic of China, the Trademark Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, and other applicable laws, regulations, and international treaties concerning copyright, trademark rights, domain name rights, commercial data information property rights, and other rights, and is owned or held by SMM and its relevant right holders. Without written permission, no institution or individual may reproduce, modify, use, sell, transfer, display, translate, compile, disseminate, or otherwise disclose the above content to any third party, or license any third party to use it. Once discovered, SMM will pursue legal liability for infringement, including but not limited to claims for breach of contract, restitution of unjust enrichment, and compensation for direct and indirect economic losses. *All data in this report are based on publicly available market information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, National Bureau of Statistics (NBS) data, customs import and export data, data published by various associations and institutions, etc.), processed internally by the SMM research team using SMM’s internal database models, and reasonable inferences are drawn. The information provided in this report is for reference only and at your own risk. This report does not constitute direct investment research or decision-making advice. Clients should make decisions prudently and not substitute this for their own independent judgment. Any decision made by the client is not related to SMM. Furthermore, any losses or liabilities arising from unauthorized or illegal use of the views in this report are not related to SMM. SMM reserves the right to amend and the final interpretation of the terms of this statement.

Price Dynamics of Non-Oriented Silicon Steel Shanghai B50A800 Grade: 4,380-4,380 yuan/mt Guangzhou B50A800 Grade: 4,200-4,200 yuan/mt Wuhan 50WW800 Grade: 4,280-4,250 yuan/mt Shanghai Market: This week, spot prices of cold-rolled non-oriented silicon steel in the Shanghai market were in the doldrums, with some grades falling by 50-100 yuan/mt, and overall transaction performance was sluggish. Market feedback indicated that ferrous metals futures weakened this week, providing insufficient cost support for silicon steel. Additionally, downstream motor enterprises maintained a slow procurement pace, leading to a lack of improvement on the demand side. Traders generally reported sluggish transactions and mostly chose to offer small discounts when selling. However, firm ordering costs from state-owned steel mills provided some support to spot prices. Overall, spot prices of cold-rolled non-oriented silicon steel in the Shanghai market are expected to remain in the doldrums next week. Guangzhou Market: This week, the cold-rolled non-oriented silicon steel market in Guangzhou was in the doldrums, with relatively sluggish transaction performance. Market feedback indicated that HRC futures continued to decline this week, dampening market confidence. Downstream procurement enthusiasm was low, and traders focused on actively selling and recovering funds. The overall trading atmosphere was sluggish, but inventory levels were not high, and sales pressure was moderate. Overall, spot prices of cold-rolled non-oriented silicon steel in the Guangzhou market are expected to remain in the doldrums next week. Wuhan Market: This week, cold-rolled non-oriented silicon steel prices in the Wuhan market were in the doldrums, with most grades falling by 30-50 yuan/mt and transaction performance being sluggish. Market feedback indicated that traders slightly lowered their spot quotations, but downstream purchasing enthusiasm was mediocre, dominated by just-in-time procurement. The overall trading atmosphere was relatively sluggish. Overall, spot prices of cold-rolled non-oriented silicon steel in the Wuhan market are expected to remain in the doldrums next week. Data Source Statement: (In addition to publicly available information, the data in this report are derived from public sources (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, NBS data, customs import and export data, and various data published by major associations and institutions), market communication, and SMM’s internal database models. They have been obtained through comprehensive analysis and reasonable inference by the research team. They are for reference only and do not constitute decision-making advice. SMM reserves the right of final interpretation of this statement and the right to adjust and modify the statement content according to actual circumstances.

On July 29, SK Hynix disclosed in its financial report that HBM4 has commenced mass production and shipments in Q2, and will expand production in H2. HBM4E samples were delivered in H1, adopting an optimal process technology that balances technological maturity and mass production stability. SK Hynix stated that in the HBM field, it will continue to solidify its leading position by leveraging comprehensive strengths, including stable supply capability underpinned by high quality and high yield, cost competitiveness, and the industry’s highest performance.

Historical cold-rolled and hot-rolled profitability data shows cold-rolled spot profit exceeded that of integrated hot-rolled coil in most cycles. However, from end-2025 to H1 2026, profit hubs for both shifted lower in tandem, their curves converged persistently, and cold-rolled's traditional processing premium over hot-rolled contracted markedly. At present, spot profits for both hover near break-even within a narrow range, and sector profitability has notably declined. On one side, raw material costs have been resilient, underpinning finished steel price floors; on the other, end-use demand has weakened continuously since the start of this year. Cold-rolled prices have struggled to hold, while steel mills have taken better hot-rolled coil orders than cold-rolled this year, with firm hot-rolled prices squeezing cold-rolled processing margins and narrowing the profit gap further. Looking to H2 2026, cold-rolled and hot-rolled profits are expected to consolidate on a subdued note overall. Cold-rolled is still likely to retain a small processing premium but will struggle to replicate the sharp profit upswings of 2023-2024. Supply side, seasonal maintenance expectations at integrated blast furnaces could intermittently floor hot-rolled coil supply; under persistently low profits, some cold-rolled lines at mills are showing a willingness to voluntarily cut production, which may provide a degree of support for cold-rolled processing fees. Demand will be the core variable steering profit direction. Traditional manufacturing is expected to undergo a seasonal recovery in the September-October peak season during H2, with downstream auto and home appliance sectors anticipated to sprint toward full-year production plans, offering some demand support. Yet uncertainty remains over the height of this round's end-use demand recovery. In the short term, absent strong pro-growth policies, the downstream demand recovery pace is likely to be moderate, and cold-rolled and hot-rolled profits will probably continue to consolidate near the break-even line. Raw material side, iron ore lacks a distinct narrative and broadly tracks finished steel price fluctuations. The second coke price cut has landed, easing cost support and creating room for profit recovery. If downstream peak-season stockpiling sentiment turns firm from late August and orders flow steadily, cold-rolled profits could see a phased recovery supported by demand, and the cold-rolled vs hot-rolled price spread could re-widen. Should the manufacturing recovery fall short of expectations, both cold-rolled and hot-rolled profitability will come under pressure simultaneously. Going forward, focus on auto production and sales data, downstream order status, and raw material price fluctuation trends; be alert to profit disappointments driven by a peak-season letdown. Data Source Statement: All data in this report, other than publicly available information, are derived from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, National Bureau of Statistics (NBS) data, customs import and export data, and various data published by major associations and institutions), market communication, and SMM’s internal database models. They are produced through comprehensive analysis and reasonable inference by the research team, are for reference only, and do not constitute decision-making advice. Shanghai Metals Market reserves the right of final interpretation of this statement and the right to adjust and amend its content based on actual circumstances.

Non-oriented Silicon Steel Price Dynamics Shanghai, grade B50A800: 4,380-4,380 yuan/mt Guangzhou, grade B50A800: 4,200-4,200 yuan/mt Wuhan, grade 50WW800: 4,280-4,280 yuan/mt Shanghai market: This week, spot prices of cold-rolled non-oriented silicon steel in Shanghai remained in the doldrums, with no improvement in overall transactions. Market feedback indicates that current demand remains weak, downstream motor enterprises have weak ordering demand and mainly make just-in-time procurement in small batches, traders exhibit strong wait-and-see sentiment, low willingness to stockpile, and not high inventory levels, maintaining a cautious wait-and-see attitude toward the market outlook. Overall, it is expected that spot prices of cold-rolled non-oriented silicon steel in Shanghai will continue to remain in the doldrums next week. Guangzhou market: This week, the cold-rolled non-oriented silicon steel market in Guangzhou was in the doldrums, and transactions were sluggish. Market feedback indicates that, dragged by weak off-season demand, there is still some room for price decline in non-oriented silicon steel, and traders focused on securing sales. Overall, it is expected that prices of cold-rolled non-oriented silicon steel in Guangzhou will continue to remain in the doldrums next week. Wuhan market: This week, the cold-rolled non-oriented silicon steel market in Wuhan was in the doldrums, with poor transactions. Market feedback indicates that traders actively sold and actual transactions were negotiable; downstream purchasing enthusiasm was moderate; currently, circulation of state-owned resources in the market is limited, but low-to-medium grades have not yet adjusted their prices. Overall, it is expected that spot prices of cold-rolled non-oriented silicon steel in Wuhan will continue to remain in the doldrums next week. Data Source Statement: (In this report, data other than public information come from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, National Bureau of Statistics data, customs import and export data, and various data released by major associations and institutions), market communication, and SMM's internal database model, and are obtained through comprehensive analysis and reasonable inference by the research team. They are for reference only and do not constitute decision-making advice. SMM reserves the right of final interpretation of the terms of this statement and the right to adjust and modify the content of the statement according to actual circumstances.

[SMM Analysis] China-Indonesia Steel Price Spread Inverted, Overseas Demand Still Shows No Improvement China-Indonesia Price Spread Inversion From the price spread model, the most notable fluctuations are in the China-Indonesia spread. The slab spread has narrowed to zero, billet has even inverted, and HRC prices are also declining markedly. Specifically, according to SMM survey, Indonesian prices weakened sharply. On one hand, clients hold high inventory and are eager to sell at lower prices. On the other hand, due to quota impacts, exports to the EU are hindered, forcing them to cut prices to compete with Asian resources. Data source: SMM Japanese Steel Scrap Under Pressure and Drifting Lower After the Kanto tender weakened, several Japanese mills including Tokyo Steel successively lowered their scrap purchase prices. Last week, the domestic scrap price index lost stability. Although a downward adjustment occurred at end-July, the downtrend is expected to persist. For finished steel, July EXW prices announced by most major mills last week were largely flat. However, on the export front, after the EU implemented new quota policies, challenges for Japan’s steel exports have intensified. Despite strong reactions from Japan, the short-term trade difficulties are hard to reverse, which is expected to force Japanese mills to further adjust production, continuing production cuts. India HRC Shipments to Southeast Asia to Increase Due to Quotas Last week, Indian steel remained under pressure. Mumbai HRC prices fell about $3/mt WoW to $602/mt EXW, with market transaction prices around $571-611/mt. Monsoon weather dampened construction and infrastructure demand. Spot procurement and restocking willingness remained weak, intensifying competition for low-priced resources. On the export side, affected by EU policies and quota adjustments, Indian steel exports to Europe are facing difficulties, prompting mills to adjust their overseas sales strategies. Flows of resources such as HRC to Southeast Asian markets like Vietnam are expected to increase significantly. Given that fundamentals are unlikely to improve before end-July, India’s domestic steel prices are expected to continue their downward drift through end-July. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. The copyright, trademark rights, domain name rights, commercial data information property rights, and other related intellectual property rights of all content contained in this report (including but not limited to information, articles, data, charts, pictures, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, etc.) are owned or held by SMM or its related right holders. The above rights are strictly protected by relevant laws and regulations of the People's Republic of China, such as the Copyright Law of the People's Republic of China, the Trademark Law of the People's Republic of China, and the Anti-Unfair Competition Law of the People's Republic of China, as well as applicable international treaties. Without prior written authorization from SMM, no institution or individual may: 1. Use all or part of this report in any form (including but not limited to reprinting, modifying, selling, transferring, displaying, translating, compiling, disseminating); 2. Disclose the content of this report to any third party; 3. License or authorize any third party to use the content of this report; 4. For any unauthorized use, SMM will legally pursue the legal responsibilities of the infringer, demanding that they bear legal responsibilities including but not limited to contractual breach liability, returning unjust enrichment, and compensating for direct and indirect economic losses. Data Source Statement: (Except for publicly available information, other data in this report are derived from publicly available information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, data from the National Bureau of Statistics, customs import and export data, various data published by major associations and institutions, etc.), market exchanges, and comprehensive analysis and reasonable inferences made by the research team based on SMM's internal database models. This information is for reference only and does not constitute decision-making advice. SMM reserves the final interpretation right of the terms in this statement and the right to adjust and modify the content of the statement according to actual circumstances.