India's steel market presented a mixed picture in July, with domestic consumption continuing to outpace production while exports rebounded sharply, nearly matching imports for the month. However, strong import volumes earlier in the fiscal year kept the country a net importer through April-July.

SMM August 7 News: Metal Markets: Overnight, base metals on the domestic market broadly rose. SHFE copper edged up 0.1%. SHFE aluminum gained 0.38%. SHFE lead edged up 0.1%. SHFE zinc rose 1.11%, while SHFE tin fell 0.98%. SHFE nickel dropped 1.22%. Additionally, the most-traded alumina futures contract edged up 0.09%, while the most-traded foundry aluminum contract fell 0.52%. Overnight, ferrous metals all rose. Stainless steel edged up, iron ore gained 0.35%, and rebar rose 0.17%. Hot-rolled coil (HRC) increased 0.59%. For coking coal and coke: the most-traded coking coal futures contract rose 1.54%, and the most-traded coke contract gained 2.48%. Overnight, on the overseas market, LME base metals mostly fell. LME copper shot up to an intraday high of $14,369.5/mt, a level not seen since January 29, before eventually closing with a 0.4% decline. LME aluminum gained 0.65%. LME lead fell 0.29%. LME zinc rose 0.64%. LME tin dropped 1.43%. LME nickel fell 2.45%. Overnight Precious Metals : COMEX gold fell 0.15%, and COMEX silver dropped 0.81%. Overnight, the most-traded SHFE gold futures contract fell 0.01%, and the most-traded SHFE silver contract declined 0.93%. Closing prices as of 7:03 AM, August 7: Macro Front Domestic (China) News: [Guangdong: Promote the Integration of Futures and Spot Markets for Key Commodities like Iron Ore, Crude Oil, and Rubber to Enhance Pricing Influence on Bulk Commodities] The "15th Five-Year Plan for the Development of the China (Guangdong) Pilot Free Trade Zone (Draft for Comments)" was released for public comment. It mentioned plans to expand financial opening-up in an orderly manner. International financial institutions will be encouraged to set up headquarters in the zone, promoting the development of cross-border finance, innovative finance, venture capital and investment, wealth management, futures trading, asset management, specialty finance, and offshore services. The Plan aims to accelerate the implementation of projects like the Guangdong-Hong Kong-Macao Greater Bay Area International Commercial Bank and the GBA Insurance Service Center. It supports expanding the scale of commodity trading and promoting the integration of futures and spot markets for key commodities like iron ore, crude oil, and rubber to enhance their pricing influence. The Plan will promote the quality improvement and upgrade of fintech regulatory pilots and expand digital yuan application scenarios. It supports pilot programs for cross-border financial innovations such as offshore finance and green finance, and will promote the expansion of pilot programs like cross-border Wealth Management Connect and digital yuan cross-border payments. Institutions within the zone will be supported in developing specialty products like cross-border supply chain finance and intellectual property-pledged financing, and market entities will be guided to develop composite financial products. Pilots for cross-border credit asset transfers and multi-currency integrated accounts will be deepened to promote wider mutual recognition and connectivity of cross-border financial products. (Guangdong Department of Commerce) [CAAM: June Auto Commodity Import and Export Value Hits $31.82 Billion, Up 35.5% YoY] According to data from the General Administration of Customs compiled by the China Association of Automobile Manufacturers (CAAM), the total import and export value of auto commodities in June 2026 was $31.82 billion, up 8.0% MoM and up 35.5% YoY. The import value was $3.39 billion, down 6.1% MoM and down 18.7% YoY; the export value was $28.43 billion, up 10.0% MoM and up 47.2% YoY. From January to June 2026, the cumulative import and export value of national auto commodities totaled $164.74 billion, up 25.5% YoY. The import value was $19.25 billion, down 11.8% YoY; the export value was $145.49 billion, up 33.0% YoY. (Jin10 Data APP) US Dollar: Overnight, the US dollar index rose 0.26% to 99.95. Escalating geopolitical tensions weighed on both US stocks and bonds, causing them to fall. Oil prices jumped, reigniting inflation concerns ahead of the key US employment report. Market focus now turns to Friday's US employment report for new clues on the Federal Reserve's policy path. Stronger-than-expected jobs data could reinforce the case for higher-for-longer interest rates, while any escalation of tensions in the Middle East could push up energy prices and intensify market fluctuations. UBS analyst Ulrike Hoffmann noted: "Short-term risks remain, especially if US data remains firm, oil prices continue to fuel inflation concerns, or the market continues pricing in a more hawkish Fed rate path." Interactive Brokers Senior Economist José Torres stated: "Wall Street reversed again from recent strong gains as the lack of clarity concerning the Strait of Hormuz led investors to question whether the robust rally early this week was justified." (Jin10 Data APP) According to the CME "FedWatch" tool: The probability of the US Fed keeping rates unchanged by September is 45%, while the probability of a cumulative 25 basis point hike is 55%. The probability of the Fed keeping rates unchanged through October is 31%, while the probability of a cumulative 25 basis point hike is 51.9%, and a cumulative 50 basis point hike is 17.1%. (Jin10 Data APP) According to a report by the UK's Financial Times, even after a decision not to reveal too many details on rate strategy triggered a sharp sell-off in government bonds, Fed Chairman Warsh is sticking with his usual concise communication style. People close to Warsh say he acknowledges making some mistakes during his first 10 weeks at the helm of the world's most important central bank, including failing to reinforce his key message on price stability and creating confusion over whether his long-term plan to reform the Fed could influence near-term policy decisions. However, they insisted those mistakes were not enough to derail Warsh's reform plans for the Fed. People familiar with the matter also revealed that Warsh is prepared to raise interest rates at the September meeting if upcoming inflation data proves strong and market expectations for higher borrowing costs rise accordingly. The sources added that while the Fed Chairman raised the possibility of shrinking the central bank's $6.7 trillion balance sheet to tighten monetary policy, interest rates remain the primary tool for now and will be used at upcoming meetings if necessary. (Jin10 Data APP) Macro Events: Data releases today include France's Q2 ILO unemployment rate, Germany's June seasonally adjusted industrial output MoM, Germany's June seasonally adjusted trade balance, the UK's July Halifax seasonally adjusted house price index MoM, France's June trade balance, Switzerland's July consumer confidence index, Canada's July employment change, the US July unemployment rate, US July seasonally adjusted non-farm payrolls, US July average hourly earnings YoY, US July average hourly earnings MoM, US July New York Fed 1-year inflation expectations, China's July US dollar-denominated trade balance, China's July foreign exchange reserves, and China's July trade balance data. Watches: 2028 FOMC voter and St. Louis Fed President Musalem speaks on the US economy and monetary policy; 2027 FOMC voter and Richmond Fed President Barkin delivers remarks. Crude Oil: Overnight, both oil futures rose, with US oil gaining 4% and Brent oil surging 4.57%. Geopolitical risks rekindled, causing oil prices to spike sharply. Wall Street CN mentioned that the new navigation agreement for the Strait of Hormuz, proposed to be signed by Iran and Oman, revealed significant details again, indicating Iran's bid to control the strait. Furthermore, Iran has taken action, striking "enemy targets" near the strait. Iran's Fars News Agency (FARS) reported on Thursday, August 6, local time, that Iran's parliament is reviewing this agreement. Under the agreement, US and Israeli vessels will be barred from transiting the Strait of Hormuz, and nations that have "caused harm to Iran" will also be denied passage permits. Following this news, concerns over risks to global energy transportation rapidly intensified in the market. (Wall Street CN) Saudi Arabia cut its main crude oil price for Asia as negotiations proceed on an agreement aimed at easing shipping pressure in the Strait of Hormuz. The price cut came despite Houthi threats jeopardizing the alternative eastbound crude route via the Red Sea. According to a price list, state oil company Saudi Aramco reduced the price of its Arab Light crude for delivery to Asian clients next month by $0.50 per barrel, setting it at a $2/bbl discount to the regional benchmark. A prior survey showed traders expected Saudi Aramco to keep its flagship crude price unchanged. Global benchmark Brent crude prices fell sharply this week and are now trading near $80/bbl. (Jin10 Data APP) Over the past two months, the UAE has transported more crude oil through the Strait of Hormuz than any other producer, providing a critical supply buffer to a global market suffering from a historic energy crisis. According to energy data firm Kpler, a Very Large Crude Carrier (VLCC) loaded with Emirati cargo appeared in the Gulf of Oman on Tuesday after turning off its Automatic Identification System (AIS) signal at the end of July. The tanker carries crude from the Abu Dhabi National Oil Company. This is just one of dozens of similar tankers that have departed the Persian Gulf since the Abu Dhabi National Oil Company (ADNOC) began implementing a new sales strategy. According to trading sources familiar with the matter, since early June, ADNOC has sold over 130 million barrels of crude oil through seven unprecedented tenders. (Jin10 Data APP)

[SMM Zinc Morning Comment: SHFE Zinc Opens Higher with a Gap in Night Session, Expected to Stay High] Overnight, the most-traded SHFE zinc 2609 contract opened at 25,780 yuan/mt. After opening, SHFE zinc consolidated around the daily average line, hitting a session high of 25,960 yuan/mt and dipping to a low of 25,770 yuan/mt near the end. It finally closed up at 25,890 yuan/mt, up 305 yuan/mt or 1.19%, with trading volume increasing to 86,747 lots..

[SMM Analysis]Cost Support and Demand Constraints Coexist, ADC12 Consolidates at Highs, Awaiting Peak Season Breakthrough

[SMM Analysis: Cost Support and Demand Constraints Coexist, ADC12 Consolidates at Highs Awaiting Peak Season Breakthrough] Entering August, ADC12 prices are expected to continue to consolidate at highs. Cost side, currently tight supply of aluminum scrap and high tax invoice compliance costs...

SMM August 6 News: Germanium ingot in the spot market, driven by tight raw material supply, saw its price edge up slightly; leading tungsten enterprises slightly raised their long-term contract quotations. Meanwhile, the US Department of Commerce's Bureau of Industry and Security (BIS) on August 6, 2026, formally published in the Federal Register the interim final rule "Allocation Order and Additional Requirements for Recyclable Critical Minerals and Materials," under the Defense Production Act (DPA) and a presidential determination on July 30, 2026, imposing mandatory domestic sales controls on two types of critical recycled minerals: shredded tungsten scrap and lithium battery black mass. The rule will take effect on August 27, 2026, and remain valid until August 27, 2027, intensifying concerns about tight tungsten raw material supply outside China. As of now, activity in domestic spot tungsten transactions has shown some rebound, and the transaction center for spot tungsten ore orders has edged up slightly. Secondary market sentiment heating up boosted the minor metal sector, which collectively strengthened. As of the close on August 6, the minor metals sector rose by 2.08%. In terms of individual stocks: Yunnan Germanium surged over 8%, while China Tungsten High-Tech, Xianglu Tungsten, Xiamen Tungsten, Haotong Technology, and Orient Tantalum led the gains. Spot Market Germanium Order to View SMM Historical Metal Spot Prices Germanium is a strategic rare metal with a highly concentrated global supply structure. The ongoing implementation of domestic resource controls and frequent geopolitical disruptions outside China, combined with the normal enforcement of export control policies, have collectively reinforced supply tightening expectations. Currently, low-priced supply in the market is scarce, and downstream just-in-time procurement must accept high-priced materials, causing germanium ingot prices to edge up on August 6. Meanwhile, overall stable demand from end-use industries has provided support for the continuous rise in germanium prices this year. Tungsten Order to View SMM Historical Metal Spot Price Trends Currently, the tungsten ore market is operating steadily. A large tungsten enterprise slightly raised its long-term contract quotation, providing some support to market confidence. Meanwhile, the US Department of Commerce's Bureau of Industry and Security (BIS) on August 6, 2026, formally published in the Federal Register the interim final rule "Allocation Order and Additional Requirements for Recyclable Critical Minerals and Materials," under the Defense Production Act (DPA) and a presidential determination on July 30, 2026, imposing mandatory domestic sales controls on two types of critical recycled minerals: shredded tungsten scrap and lithium battery black mass. The rule will take effect on August 27, 2026, and remain valid until August 27, 2027, which has escalated market concerns about tight tungsten raw material supply outside China. As of now, activity in domestic spot tungsten transactions has shown some rebound, and the transaction center for spot tungsten ore orders has edged up slightly. On the domestic front, the market is reassessing the impact of the "Opinions of the National Mine Safety Administration on Standardizing Construction Teams for Metal and Non-Metallic Mine Mining (Stripping)" on the non-coal mining industry. The document requires that by May 1, 2027, for underground mines and by May 1, 2028, for open-pit mines, one of two options must be chosen: ① establish an in-house mining team; ② engage in compliant integrated contracting; fragmentary subcontracting and layered transfers are prohibited, and labor dispatch is strictly banned. Mines failing to complete rectification by the deadline will be ordered to suspend production for rectification. Domestic tungsten mines are primarily underground, with the vast majority of wolframite extracted through underground mining, and some scheelite extracted through both open-pit and underground methods. In tungsten-rich regions such as Jiangxi and Hunan, a large number of small and medium tungsten mines have long been highly dependent on external contracted mining teams. The implementation of the new regulation will impose tangible constraints on tungsten ore supply, production costs, and the operations of small and medium mines. Recently, the spot tungsten ore market has started to become more active, with traders actively entering the market, while downstream smelters continue to maintain a wait-and-see sentiment. Overall, market sentiment has eased amid frequent mining policies and intensive safety inspections in Yunnan, Jiangxi, and Henan. Supply-side disruptions have increased, and if demand shows mild entry, the tungsten market is expected to see a turnaround. Institutional Voices Guojin Securities research report believes: Tantalum: Global tantalum resource supply is highly concentrated and frequently disrupted, while development of AI servers and advanced semiconductor manufacturing is expected to continue driving demand growth in tantalum capacitors, tantalum targets, and other areas. Against the backdrop of ongoing supply constraints and gradual demand release, the tantalum market is expected to shift from supply-driven to supply-demand resonance, pushing the tantalum price center further upward. Related equities: Oriental Tantalum, Guotai Group, Ximei Resources, Xinjinlu, Jiangwu Equipment. Minmetals Securities research report points out: Germanium accounts for 60% of applications in optical communications and satellite photovoltaics, making it an "AI computing power + space energy" metal. With its excellent refractive index control capability and radiation resistance, germanium has become a critical material for AI data center optical interconnects and low-earth orbit satellite photovoltaic systems. Looking at changes in demand structure, from 2020 to 2026, downstream germanium consumption grew from 160 mt to 240 mt, with optical communications' share rising to 40% and satellite photovoltaics' share to 20%, together accounting for 60% of total downstream demand. It is expected that 90% of demand growth contributions in 2027 will come from two high-boom sectors: AI hardware and satellite photovoltaics. Caitong Securities research report shows: With the explosive demand for AI computing power, the market size of indium phosphide, used as a chip substrate material, will continue to expand. Indium resources are scarce and subject to policy restrictions, and product prices have entered an upward channel. High-purity red phosphorus is a critically important semiconductor base material with high purification technology barriers. Against the backdrop of accelerated AI application deployment driving related infrastructure construction, the indium phosphide substrate industry chain is expected to see dual opportunities from demand growth and domestic substitution. Investors are advised to follow related enterprises with resource and technology advantages in indium phosphide, indium, and high-purity red phosphorus. Datong Securities research report shows that minor metals have embarked on an independent upward trend, with supply tightening and strategic attributes driving a valuation re-rating. The rare earth sector is front-running expectations of new regulations, with Myanmar ore imports disrupted and Pr-Nd oxide seeing tight spot supply and soaring prices. In tungsten and antimony, declining ore grades combined with environmental protection-driven production restrictions have widened supply gaps, while demand from photovoltaics and cemented carbides remains firm even in the off-season, with inventories at low levels. AI computing power and the communications industry are driving demand for gallium and germanium, and coupled with export control policies, overseas stockpiling has widened price spreads between Chinese and overseas markets. Scarce resources and financial attributes resonate, and the sector continues to attract capital favor.

[SMM Magnesium Weekly Review: Cost Support Keeps Magnesium Ingot Bottom Firm; Weak Domestic and Overseas Demand Keeps the Market Consolidating] This week, domestic magnesium ingot prices drifted lower overall. 99.90% magnesium ingot in Fugu and Shenmu was quoted at 15,950-16,050 yuan/mt, down 350 yuan/mt from the previous week. After the holiday, market pessimism spread. Smelters sold actively, while downstream made only just-in-time procurement. Amid strong supply and weak demand, prices continued to grind lower. The average FOB price at Tianjin port was $2,365/mt. Domestic smelters were unable to hold prices firm, and FOB offers were lowered accordingly. As the summer break approached outside China, new orders were scarce, and foreign trade transactions were sluggish. Dolomite cost support was limited. Magnesium powder and magnesium alloy weakened in tandem. Downstream off-season demand weakness dragged on the market. In the short term, magnesium ingot prices are likely to consolidate on a subdued note.

SMM, August 6: Metal Markets: As of the midday close, base metals on the domestic market were almost all up. SHFE copper rose 0.4%, SHFE aluminum rose 0.23%. SHFE lead edged up. SHFE zinc rose 1.49%. SHFE tin rose 0.26%. SHFE nickel fell 2.1%. In addition, the most-traded casting aluminum futures contract edged down, while the most-traded alumina contract rose 1.36%. The most-traded lithium carbonate contract fell 1.23%. The most-traded silicon metal contract rose 0.12%. The most-traded polysilicon futures contract fell 0.65%. Ferrous metals were mostly in the green. Iron ore rose 2%, rebar rose 0.67%, and HRC rose 0.53%. Stainless steel fell 1.51%. For coking coal and coke: the most-traded coking coal contract rose 0.74%, and the most-traded coke contract rose 1.99%. On the overseas base metals market, as of 11:42, LME metals were almost all down. LME copper fell 0.36%, LME aluminum rose 0.17%, LME lead fell 0.16%, LME zinc fell 0.37%. LME tin fell 1.58%. LME nickel fell 1.9%. In precious metals, as of 11:42, COMEX gold rose 0.44%, while COMEX silver fell 0.05%. On the domestic precious metals market: SHFE gold rose 3.72%, and the most-traded SHFE silver contract rose 3.19%. Additionally, as of the midday close, the most-traded platinum futures contract rose 1.05%, and the most-traded palladium futures contract rose 1.4%. As of the midday close, the most-traded container shipping futures (Europe route) contract fell 0.63% to 1,651 points. As of 11:42 on August 6, selected futures midday prices: Spot and Fundamentals Copper: Today, spot #1 copper cathode in Guangdong against the front-month contract: high-quality copper was quoted at 90 yuan/mt, down 20 yuan/mt from the previous trading day; standard-quality copper was at a premium of 10 yuan/mt, down 20 yuan/mt; and SX-EW copper was at a discount of 50 yuan/mt, down 20 yuan/mt. The average price of #1 copper cathode in Guangdong was 107,900 yuan/mt, up 910 yuan/mt from the previous trading day, and that of SX-EW copper was 107,820 yuan/mt, up 930 yuan/mt. In the spot market: Guangdong inventory increased again, mainly due to increased arrivals and weakening consumption... Macro Front China: [PBOC’s open market operations saw a net drain of 269.5 billion yuan today] The PBOC conducted 1 billion yuan of 7-day reverse repo operations at an interest rate of 1.40%, unchanged from the previous operation. Today, 270.5 billion yuan of reverse repos matured. [China Gold Association: In H1 2026, increase in domestic gold ETF holdings fell 66.17% YoY] Data from the China Gold Association showed that the increase in domestic gold ETF holdings in H1 2026 was 28.677 mt, down 66.17% from H1 2025. By the end of June 2026, the open interest of gold ETFs in China stood at 276.529 mt. China increased its gold holdings by 40.12 mt in H1 2026, bringing its gold reserves to 2,346.45 mt by month-end June, ranking fifth globally. The country had added to its gold reserves for 20 consecutive months, Nov 2024-Jun 2026. (Jin10 Data APP) On August 6, the central parity rate of the RMB in the interbank foreign exchange market was 6.7895 yuan per US dollar. US Dollar: As of 11:42, the US dollar index edged up 0.03% to 99.72. Cooling US ADP employment data contrasted with elevated ISM services costs, raising stagflation concerns. US ADP employment data missed expectations! The US ADP private payrolls increased by only 44,000 in July, the lowest this year, making Friday's non-farm payrolls data critical. US ADP private-sector employment rose by just 44,000 in July, a new low for the year and below expectations. The goods-producing sector was under pressure, signaling a cooling labour market. However, job-stayers' wages saw robust YoY growth of 7%, indicating persistent structural tightness. The market is focused on Friday's non-farm payrolls data; if it follows the same trend, it would confirm steady employment, supporting the Fed's continued focus on combating inflation. The US ISM Services PMI continued expanding in July, showing demand-side resilience but intensifying stagflation risks. The US ISM services index rose to 54.1 in July, a 0.1-point uptick from June but below the expected 54.5. The new orders index surpassed expectations to hit 57.2, and the prices paid index exceeded forecasts to reach 70.3, while the employment index fell short of expectations, dropping to 47.4 and into contraction territory. Rising costs alongside contracting employment presented stagflationary characteristics. The US Treasury kept its quarterly debt issuance size unchanged, with $40 trillion in debt pressure looming. The latest Treasury refunding statement maintained current auction sizes for coupon-bearing securities but changed the description for future issuance from "increases" to "adjustments," preserving flexibility for future policy shifts. The borrowing estimate for the current quarter was raised to $739 billion, with the total federal debt about to surpass $40 trillion. The Treasury continues to rely on short-term bills to bridge the gap, making financing costs more sensitive to interest rates. The market fears that delaying adjustments could trigger a larger shock from long-term debt issuance later. (From Wall Street Horizon APP) Data: Today will see the release of Switzerland's July seasonally adjusted unemployment rate, the Eurozone's June retail sales MoM, US July Challenger job cuts, US initial jobless claims for the week ending August 1, US July Global Supply Chain Pressure Index, and US June wholesale sales MoM, among other data. To watch: Fed Governor Lisa Cook will speak on the economic outlook; 2027 FOMC voter and San Francisco Fed President Daly will deliver remarks. Crude Oil: As of 11:42, oil prices in both markets edged down, with US crude down 0.28% and Brent crude down 0.13%. The market is focusing on the progress of talks between Iran and Oman. Iranian Deputy Foreign Minister Gharibabadi said in an interview on August 5 that the agreement between Iran and Oman on merchant ship passage through the Strait of Hormuz is close to being finalised. According to local news from the Iranian side on the 5th, both the southern route through Omani territorial waters and the northern route within Iranian territorial waters will be closed, establishing a new passage model in the Strait of Hormuz that differs from the past 60 years. Additionally, Gharibabadi denied that Iran is in negotiations with the US, but stated that Iran has received messages from the US side, and said the US has expressed readiness to resume fulfilling commitments under the previously signed memorandum of understanding. (CCTV) On August 5 local time, US President Trump said in a speech at an event in Las Vegas that recent oil prices have fallen and stabilised to some extent, "We may have to let it go up again," but he "hopes it won't come to that." Trump did not elaborate on the meaning of this statement. An analysis by the Associated Press pointed out that although Trump has repeatedly assured that the war with Iran is about to end, oil prices typically rise anew with the onset of conflicts between the two sides. (CCTV International) Spot Market Overview: ► ► ► ► ► ► ► ► ►

SMM August 6 News: Metal market: Overnight, domestic base metals rose broadly. SHFE copper rose 0.56%. SHFE aluminum rose 0.29%. SHFE lead was flat at 15,640 yuan/mt. SHFE zinc rose 1.6%. SHFE tin rose 1.7%. SHFE nickel fell 0.17%. Additionally, the most-traded alumina futures rose 2.56%, and the most-traded casting aluminum contract rose 0.13%. Overnight, ferrous metals mostly rose. Stainless steel fell 0.72%. Iron ore rose 1.85%. Rebar rose 0.74%. Hot-rolled coil rose 0.53%. Coking coal and coke: The most-traded coking coal contract rose 0.94%, and the most-traded coke contract rose 0.56%. Overnight, in the overseas market, LME base metals rose broadly. LME copper rose 0.75%. LME aluminum rose 0.81%. LME lead was flat at $1,890/mt. LME zinc rose 2.31%. LME tin rose 2.1%. LME nickel edged down 0.06%. Overnight precious metals : COMEX gold rose 3.74%, and COMEX silver rose 3.34%. Overnight, SHFE gold most-traded rose 3.58%, and SHFE silver most-traded rose 3.72%. OANDA Senior Market Analyst Kelvin Wong said, "The link between gold and oil prices remains, as oil prices have a huge impact on inflationary pressures in the global economy. If we can see a clear roadmap for further de-escalation of the (Middle East) situation, gold prices could continue to rise." Traders now expect a 59% probability of a Fed rate hike at the September 15-16 policy meeting, down from 67% a day earlier. (Jin10 Data APP) Overnight closing quotes as of 7:11 on August 6: Macro front Domestic: [Foreign Ministry: Firmly Opposes US Abusing National Power to Unreasonably Suppress Chinese Enterprises] In response to reports that the US is drafting regulations to suppress Chinese enterprises, Foreign Ministry spokesperson Lin Jian stated on the 5th when answering a reporter's question that China firmly opposes the US abusing its national power to unreasonably suppress Chinese enterprises. A reporter asked: It is reported that the US is drafting regulations to ban the import of China-made new-type optical transceiver modules and is preparing to impose additional tariffs and set a price floor on polysilicon and related products. Given the US's previous sanctions and restrictions on Huawei, how does China assess the planned US actions? What specific measures will be taken to protect the rights and interests of Chinese enterprises? Lin Jian said, China firmly opposes the US overstretching the concept of national security and abusing its national power to unreasonably suppress Chinese enterprises. Protectionism cannot boost US competitiveness. The US's actions severely hinder normal economic and trade exchanges between China and the US and are not in the interests of any party, including US enterprises and consumers. China will continue to firmly safeguard the legitimate and lawful rights and interests of Chinese enterprises. (Xinhua News Agency) [Guangxi: Trade-in Policy Boosts Smart Home Appliance Consumption] With the implementation of national subsidies combined with local expansion policies coinciding with the summer consumption peak season, the Guangxi home appliance market welcomed a new round of consumption boom. During visits, it was found that the trade-in policy continued to gain momentum, smart home appliances accelerated their entry into millions of households, and consumption upgrading trends were evident. Since the beginning of this year, Guangxi's consumer goods trade-in program has subsidized 2.061 million units of digital and smart products, 95,000 vehicles, and 2.553 million units of home appliances, with total subsidy funds of 2.96 billion yuan, boosting commodity sales of 26.7 billion yuan. Among these, the proportion of county-level participants reached 45.2%, and the proportion of subsidy amount enjoyed in rural areas accounted for 37.1%, indicating rural consumption potential was being rapidly released. Hong Tao, director of the Institute of Business Economics at Beijing Technology and Business University, stated that the trade-in policy, on the basis of continued policy support, has upgraded to a "demand + experience" dual-drive. The national, local, and enterprise levels have established a triple subsidy linkage system, reducing household replacement costs and stimulating consumption vitality while helping the whole society save energy and reduce carbon, promoting the popularization of green and low-carbon lifestyles. (Xinhua News Agency) [CAAM Initiates Establishment of Autonomous Driving Industry Development Joint Committee] Hosted by CAAM, the 16th China Auto Forum was held in Jiading, Shanghai. During the forum, CAAM officially announced the initiation of the establishment of the "Autonomous Driving Industry Development Joint Committee" and held the launching ceremony. At the ceremony, CAAM stated that the Joint Committee will adhere to the principle of "taking safety as the bottom line, with innovation as the driving force, and using coordination to promote development," working with all industry parties to jointly promote the safe, orderly, and large-scale development of China's autonomous driving industry, contributing industrial strength to building an automotive powerhouse and cultivating new quality productive forces. The Joint Committee sincerely invites OEMs, autonomous driving solution providers, chip and sensor companies, software and communication firms, testing and certification agencies, universities, and research institutes, and other relevant industry chain entities to join in discussing development plans, building collaborative mechanisms, and sharing industrial achievements. (CAAM) [DCE: Coke Options to Be Listed for Trading from September 2, 2026 (Wednesday)] The DCE announced that coke options will be listed for trading starting September 2, 2026 (Wednesday). The position limit for coke options is 5,000 lots. Coke options and coke futures have separate position limits. The combined buy holdings of all call options and sell holdings of all put options, as well as the combined buy holdings of all put options and sell holdings of all call options, in an options contract of a certain month for non-futures company members and clients, must not exceed the position limit for the options product. Positions deemed as acting in concert shall be aggregated for calculation. [CPCA: Preliminary Estimates Show July National Passenger Car Market Retail Sales at 1.506 Million Units, Down 18% YoY] Preliminary data from the China Passenger Car Association (CPCA) showed that from July 1 to 31, national passenger car market retail sales totaled 1.506 million units, down 18% YoY and down 6% MoM. Year-to-date cumulative retail sales reached 10.207 million units, down 20% YoY. National passenger car wholesale volumes by automakers from July 1 to 31 were 2.241 million units, up 1% YoY but down 5% MoM, with year-to-date cumulative wholesale volumes at 14.788 million units, down 5% YoY. (from Wall Street News APP) Dollar: Overnight, the US dollar index extended the decline of the previous trading day to fall 0.17% to 99.69. US private employment growth in July was significantly below expectations, indicating that labor market momentum had cooled somewhat, but wage growth remained resilient, and the overall employment situation remained stable. Data released by ADP Research Institute on Wednesday showed that private sector employment increased by 44,000 in July, below the 65,000 expected in a Bloomberg survey of economists and the lowest level this year, following a revised figure of 95,000 in June. The US government's non-farm payrolls report to be released on Friday is closely watched by the market. If the data is confirmed, the current employment trend would support the Fed's continued focus on still-high inflation. (Wall Street News) Driven by a rebound in new orders and business activity, the US services sector maintained a stable expansion trend in July. Data released on Wednesday showed that the July ISM Services Index rose 0.1 point to 54.1, with a reading above 50 indicating expansion. The new orders growth rate accelerated, and the gauge of business activity rose to a five-month high, indicating consumer demand remained resilient. However, rising service and material costs continued to pressure enterprises. As the temporary deal between the US and Iran broke down, driving crude oil and gasoline prices higher, the ISM Prices Paid Index surged to 70.3 in July. With persistently high costs squeezing corporate profits and affecting consumer spending, some companies may choose to delay hiring. The employment gauge of the institute indicated the most pronounced contraction in employment since March. (Jin10 Data APP) Fed Governor Cook reiterated her stance: if inflation does not slow, she is prepared to raise rates , and warned that policymakers may not have the luxury of waiting for inflation to return to the 2% target. Although Cook supported the Fed's decision to hold rates steady at the July policy meeting, she warned that the longer inflation remains above the Fed's target, the harder it will be to tame. In a speech at an event in Alaska, Cook said, "If I don't see signs that inflation is sustainably declining soon, I am ready to act. With inflation above target for five consecutive years, the risk that inflation becomes entrenched in price- and wage-setting behaviour is rising, which would lead to more persistent inflation that is harder to address." But Cook stated that the fading impact of tariffs, the possibility of lower oil prices, and the easing of pressures related to the AI boom could provide a buffer for inflation, thereby avoiding the need to tighten policy . She said her top priority remains bringing inflation back to the Fed's target. In an interview with CNBC on Wednesday, 2026 FOMC voting member and Minneapolis Fed President Kashkari stated that the Fed should now "start gradually raising" rates to lower inflation and avoid the need for more aggressive hikes in the future. Kashkari was one of three voting members who supported a 25-basis-point rate hike at last week's FOMC meeting. He said that with strong corporate earnings and resilient consumers and labor market, there is no evidence that monetary policy is clearly restrictive, making it time to start gradually raising rates. He stressed that this is not advocating for large rate hikes, but rather hoping for "small steps" to avoid the need for sharp policy tightening in the future if inflation becomes entrenched. He added that he is unsure what action the FOMC will take in September, and incoming data will play a key role. Meanwhile, Kashkari said that Fed Chairman Warsh did not pressure him, once telling him: "Do what you think is right for the economy." (Jin10 Data APP) According to CME's "FedWatch": The probability of the Fed holding rates unchanged in September is 45.6%, while the probability of a cumulative 25-basis-point rate hike is 54.4%. For October, the probability of no change is 33.5%, a cumulative 25 bps hike is 52.1%, and a cumulative 50 bps hike is 14.5%. Macro: Today, data to be released include Switzerland's July seasonally adjusted unemployment rate, Eurozone's June retail sales MoM, US July Challenger job cuts, US initial jobless claims for the week ending August 1, US July Global Supply Chain Pressure Index, and US June wholesale sales MoM. Focus on: Fed Governor Lisa Cook's speech on the economic outlook; 2027 FOMC voting member and San Francisco Fed President Daly's speech. Crude oil: Overnight, oil futures showed mixed performance, with WTI falling 0.91% and Brent edging up 0.08%. Iran and Oman are expected to reach an agreement to reopen the Strait of Hormuz, calming oil prices. Wall Street News mentioned that Iran systematically disclosed more details about negotiations with Oman on new transit arrangements for the Strait of Hormuz for the first time and publicly explained the latest contacts between the US and Iran regarding the strait's reopening. On Wednesday, the 5th local time, Iranian Deputy Foreign Minister Gharibabadi said that Iran and Oman are working on a new arrangement for the Strait of Hormuz that differs from the past 60 years. According to the new route design, commercial vessels, whether entering or exiting the strait, would need to pass through Iranian territorial waters in some sections. According to CCTV News, he stressed that arrangements related to the strait should be decided solely by Iran and Oman, and Iran would never accept the involvement of any external forces. (Wall Street News) The US exported a record volume of distillate fuel overseas last week while domestic inventories fell again, indicating that the global scramble for diesel is increasingly drawing down US supplies. According to data released by the US Energy Information Administration (EIA) on Wednesday, distillate fuel exports rose to 1.9 million barrels per day last week, the highest level on record, surpassing the previous peak set in May. Distillate fuels mainly include diesel, heating oil, and other products. At the onset of the US-Iran war, the global diesel market was thrown into disarray. Global fuel supply was disrupted as crude and product tankers could not pass through the Strait of Hormuz. Since then, months of Ukrainian attacks on Russian refining facilities further exacerbated supply pressures. This has made the US one of the few countries globally with sufficient diesel production capacity to churn out large volumes of fuel and export it overseas. US diesel exports have exceeded 1.5 million barrels per day for five consecutive weeks. Even with refiners running at full throttle to produce diesel, US fuel stockpiles are still falling. As of last week, distillate fuel inventories, on a seasonally adjusted basis, had dropped to the lowest level for the same period since 1996. (Jin10 Data APP)

[Magnesium Ingot Market in the Doldrums, Drifts Lower; Domestic and Ex-China Demand Remains Weak] Today, the price center of magnesium ingot edged down, consolidating in the doldrums. Producer offers remained firm, but the room for price negotiation on actual orders widened. Downstream only made sporadic purchases on rigid demand, coupled with sluggish procurement due to summer break outside China and heavy price negotiations by foreign buyers. Tight supply of low-priced goods lent support to the market. In the short term, the market will maintain a narrow consolidation pattern on a subdued note.