A surge in utility-scale solar deployment has driven the UK's total photovoltaic capacity to a provisional 22 GW by the end of February 2026. According to the Department for Energy Security and Net Zero ('DESNZ'), the country added 2.5 GW of capacity over the past 12 months. This rapid growth is largely fueled by the commissioning of large-scale plants (25 MW or greater) supported by the government's fifth and sixth Cfd allocation rounds. Meanwhile, small-scale rooftop installations also set new records, reaching 6.3 GW of total capacity. The industry expects this momentum to continue as the seventh 'CfD' round expands the utility-scale pipeline, while upcoming household efficiency grants and rooftop mandates for England and Wales promise further growth in the residential sector.

[SMM Newsflash] According to reports, Jiangsu Tongzhan Precision Machinery Co., Ltd., located in Dayi Town, Yizheng City, Yangzhou, Jiangsu Province, achieved rapid growth in just three years through transformation and upgrading. Currently, leveraging intelligent production lines, the company’s daily production of household accessories reached 80,000-100,000 units, while daily production of automotive steel pistons reached 8,000-10,000 units. Full automation has been fully implemented, providing solid support for order delivery.

◼ At the beginning of 2026, Musk’s SpaceX plan for 100 GW of annual space PV capacity ignited the A-share market, with multiple concept stocks rising by more than 30 in a single month. At the same time, however, earnings previews from leading PV companies generally showed losses for 2025, and industry fundamentals remained in a deep winter. Behind the stark divergence between the speculative frenzy around the Musk-SpaceX concept and the earnings trough, is the market overly expecting a “second growth curve,” or is this a genuine signal of industrial transformation? ◼ As the global PV industry moves from rapid expansion into a new stage of rational development, its value has gone beyond that of clean energy alone: Against the backdrop of explosive growth in AI computing power driving massive electricity demand, compounded by energy security anxiety triggered by geopolitical conflict in the Middle East, developing PV may become a core strategic choice for countries to achieve their “dual-carbon” goals, build autonomous and controllable energy systems, and reduce electricity costs for end-users. ◼ Since the escalation of the U.S.-Iran conflict at the end of February, the world’s four major benchmark crude oil prices have entered a rapid upward trajectory. Before the outbreak of the conflict, oil prices had remained broadly stable; however, starting on March 2, as the fighting expanded and spread to the Persian Gulf, oil prices immediately entered a sharp uptrend. Note: Shanghai crude oil prices are converted based on the settlement-date exchange rate of 1:0.15. Source: Public information, SMM. ◼ Although the impact borne by different regions varies due to differences in energy mix, geopolitical location, and policy response, the surge in imported crude oil costs driving a broad rise in energy prices has become a common challenge facing all countries. Europe is a case in point. Although Europe’s direct dependence on Middle Eastern crude oil was not high, at only about 5 according to data from energy market intelligence firm Kpler, it remained highly dependent on the region for refined products such as diesel and aviation kerosene, as well as liquefied natural gas. Disruptions in the Strait of Hormuz caused by the conflict directly pushed up Europe’s terminal energy prices—fuel prices at gas stations across the region surged, and natural gas prices broke above EUR 60 per megawatt hour on the 9th, reaching a new high since 2022. The continued rise in energy prices is bound to transmit into broader areas of the economy, increasing overall inflationary pressure and once again underscoring the importance of building secure and controllable energy systems. Accelerating the Clean Transition of the Global Energy Mix, the PV Industry Advances Toward High-Quality Development ◼ The International Energy Agency (IEA) forecasts that, despite economic pressure, global electricity demand momentum remains strong in 2025, with growth rates in 2025 and 2026 expected to be 3.3% and 3.7%, respectively. Data from 2020 to 2025 showed that the global power market followed a trajectory of continued overall growth alongside structural transition toward cleaner energy , with the share of renewable energy sources such as solar rising significantly, although fossil fuels still accounted for the dominant share. ◼ According to the IEA’s Net Zero Emissions Scenario, solar power’s share in the energy mix is expected to rise from less than 2% at present to 12% in 2035 and 28% in 2050. This means PV installations are still far from reaching their ceiling, with substantial room for future growth. ◼ The past five years marked a critical period in which the global PV market shifted from rapid expansion toward rational development. The IEA forecasts that total global new PV installations over the next five years will reach about 3.68 TW, accounting for nearly 80% of new renewable energy additions over the same period, and are expected to become the world’s largest renewable energy source by the end of 2030. This is mainly due to its widening economic advantages—by 2024, the cost of solar PV power generation had already fallen 41% below the cheapest fossil fuel alternative, and these cost advantages are driving rapid growth in both PV installations and power generation share. Source: IEA, public information, SMM. ◼ As a key carrier of PV installations, especially the backbone of utility-scale power plants, solar panel mounting bracket installations are expected to maintain annual average growth of 5%-6% alongside installation growth. Specifically, to achieve annual average new PV installations of 500-600 GW, corresponding module demand is estimated at about 550-700 GW based on the capacity ratio. Assuming a conventional 1:1 module-to-bracket configuration, the annual average installation scale of brackets required for utility-scale PV plants alone would reach at least 250-300 GW. Source: public information, SMM. Escalating Challenges Reshape the Development Logic of the Global PV Market ◼ The PV industry is undergoing resonating internal and external pressures. Internally, the global economic slowdown has become intertwined with social issues, while the industry itself has entered a rational development stage after rapid expansion, making slower installation growth a certain trend. Externally, global trade frictions continue to intensify, with the US, Europe, and other regions erecting nearly insurmountable cost gaps through barriers such as anti-dumping and countervailing duties as well as local content requirements. Challenge 1: Global Trade Frictions and Escalating Trade Barriers ◼ In recent years, countries have introduced a series of policies to build PV trade barriers and reshape the global competitive landscape of the industry. The US imposed “double anti-” duties of as much as 3,403.96% on PV products from four Southeast Asian countries, South Africa raised module tariffs to 10%, and Brazil increased out-of-quota tariffs sharply from 9.6% to 25% through a quota system. Market access requirements for PV in India and Türkiye have also become increasingly stringent. Meanwhile, new supply chain control rules represented by the EU’s Net-Zero Industry Act (NZIA) have extended trade barriers deeper into the industry chain. By setting red lines on “third-country dependence,” they have established quantitative standards for supply chain restructuring. This series of changes has reshaped the competitive dimensions of the international PV industry and significantly raised the threshold for PV product imports and exports. Source: public information, SMM. Challenge 2: New Dynamics in the PV Market, with Incentive and Restrictive Policies Coexisting Source: public information, SMM. Outside China Enterprises Pursue Multi-Dimensional Breakthroughs Through Internal and External Efforts ◼ The practices of solar panel mounting bracket enterprises in the US, India, and other countries show that the key to coping with policy shifts overseas lies in combining “service-oriented” and “high-value” strategies. First, vertically extending from single-equipment sales to a service ecosystem covering the entire life cycle. Second, deepening horizontally by continuously optimizing business structure and extracting value from higher value-added segments. Solution 1: Launch Dedicated Plans Closely Aligned with Government Policies and Local Demand ◼ The global PV industry has now entered a new stage deeply reshaped by both market forces and policy. The growth logic of enterprises is shifting from the past single dimension of relying on technology iteration and cost declines to multi-dimensional competition closely integrating complex policy environments with localized demand. Against this backdrop, the key to corporate success lies in accurately interpreting policy intentions and launching development plans aligned with both market and policy. Tata Power Renewable Energy Limited (TPREL) precisely aligned with India’s “PM Surya Ghar: Muft Bijli Yojana” and launched the dedicated “solar for every home” plan while continuing to provide customized PV solutions. In Q1 FY2026, it added 220 MW of new rooftop PV installations, surging 416% YoY. TPREL also actively responded to local manufacturing policies by establishing 4.3 GW of solar cell and module capacity, ensuring supply while avoiding import tariffs. Through the synergy of “policy response + local capacity + customized services,” TPREL has effectively translated policy dividends into market competitiveness and steadily consolidated its leading position in India’s PV market. Solution 2: Use Acquisitions as a Link to Integrate Resources and Extend from Single Products to the Entire Industry Chain ◼ Competition in the global PV industry has fully escalated into a contest of entire industry chain system integration capabilities, and enterprises’ growth engines are shifting from past reliance on advantages in a single segment to a new model of providing integrated solutions through resource integration. In 2025, Nextracker used acquisitions as the core to integrate resources across the full chain, successively acquiring foundation engineering firms such as Solar Pile International and Ojjo, module supporting firms such as Origami Solar, and electrical system firms such as Bentek, thereby building a full-chain product matrix spanning structural, electrical, and digital solutions. Its performance continued to surge, with revenue rising from $1.9 billion in FY2023 to $3.4 billion in the trailing twelve months ended September 2025. It ultimately announced its transformation into a comprehensive energy solutions provider by renaming itself Nextpower, targeting revenue of more than $5.6 billion in FY2030. This strategy enabled its successful transformation from a single-product supplier into an entire industry chain service provider, solidifying its leading position in the global market. Solution 3: Optimize Business Structure ◼ Trade protectionism in the current PV market continues to intensify, with various trade barriers being layered on one after another. In response to this challenge, PV enterprises can achieve the dual objectives of “compliant operations” and “market retention” through business structure optimization. To avoid the equity constraints on FEOC under the US OBBB Act, Canadian Solar Inc. initiated a US business restructuring with its controlling shareholder CSIQ: it established two new joint ventures to separately manage PV and energy storage businesses, with its own stake set at 24.9% to precisely meet compliance requirements. At the same time, it transferred out 75.1% equity in three overseas plants supplying the US market, receiving a one-off consideration of 352 million yuan. This move enabled Canadian Solar Inc. to retain earnings from the US market through dividends and rental income. In the first three quarters of 2025, it achieved net profit of 990 million yuan, while large-scale energy storage shipments rose 32% YoY. After the adjustment, it focused on strengthening its advantages in non-US markets and successfully stabilized its global business layout with a compliant structure, providing a typical model for the industry in addressing trade barriers. ◼ For Chinese enterprises, in the face of trade frictions and overseas capacity gaps, they need to break through via three paths—“building plants near core markets, reducing costs and improving efficiency through technological innovation, and coordinating both within and outside the industry chain”— by pursuing localized deployment in Southeast Asia, Mexico, and other regions to avoid frequent trade frictions; promoting standardized production and high-end product R&D to enhance competitiveness; and building a “China + overseas” dual-circulation supply chain to stabilize costs. However, overseas expansion still faces challenges such as land and environmental protection costs, talent shortages, and supply chain fluctuations, requiring enterprises to conduct sound risk assessments, leverage policy support, and improve overseas investment service systems. Only by deeply integrating scientific capacity deployment, technological innovation, and industry chain coordination can the mounting bracket industry upgrade from “Made in China” to “Globally Intelligent Manufacturing” and achieve long-term development under the “dual carbon” goals. New Requirements Under the 15th Five-Year Plan, New Topics for PV Enterprises ◼ In a global market full of uncertainties, the consistency and strength of domestic policy have provided fertile ground for the growth of China’s solar panel mounting bracket enterprises. The newly released 15th Five-Year Plan further clarified China’s path for energy and industrial development. On the one hand, the construction of a new-type power system centered on consumption capacity has been listed as a priority task, and green manufacturing and full life cycle management have been formally incorporated into the assessment system. On the other hand, technological self-reliance and self-strengthening together with new quality productive forces have replaced scale competition as the main line of the new development stage. This series of changes signals that the country is driving a profound shift from “competing on capacity” to “competing on system value,” with the core goal of achieving autonomous and controllable energy structure. It is estimated that after the Two Sessions, various departments will successively roll out detailed plans to promote the full implementation of the blueprint. ◼ Key implementation measures include: 1) establishing a “dual controls” system for total carbon emissions and carbon intensity, while improving incentive and restraint mechanisms; 2) vigorously developing non-fossil energy and promoting the efficient use of fossil energy, while strengthening the construction of a new-type power system to ensure stable supply of green electricity; 3) applying both “addition and subtraction” by fostering green and low-carbon industries and promoting energy conservation and carbon reduction in key industry; 4) in addition, accelerating the green transformation of production and lifestyles to consolidate the foundation for green development. ◼ From the perspective of regional development layout, during the 15th Five-Year Plan period, China’s PV industry will show characteristics of regional coordination: north-west China will become the strategic focus by virtue of its natural endowments, exporting electricity through cross-provincial green electricity trading and other means to achieve two-way matching between energy resources and power load; eastern regions, by contrast, will focus on local consumption by high-energy-consuming industries and zero-carbon industrial parks. Source: public information, SMM. ◼ SMM forecasts that China’s new PV installations are expected to reach 208 GW in 2025 and continue growing at an annual average rate of 9% over the next five years, exceeding 292 GW by the end of the 15th Five-Year Plan period. Utility-scale PV will remain dominant, with its installation share staying above 50%. Based on the same logic, we estimate that China’s PV installation market will maintain annual incremental growth of at least 100-120 GW. Source: public information, SMM. ◼ Focusing on China’s steel consumption market for solar panel mounting brackets, SMM estimates that annual steel consumption in China’s PV mounting bracket sector will average about 4-4.5 million mt from 2026 to 2030, accounting for about 30% of total steel consumption in the PV industry over the same period (based on 2026 data). Note: only installation demand for utility-scale PV mounting brackets is included, excluding distributed steel structures, replacement from existing asset depreciation, and exports. Source: public information, SMM. SMM Ferrous Consulting Based on its understanding of the global steel industry chain and regional markets, as well as its strong industry database and network resources, SMM is committed to providing clients with consulting services across the upstream, midstream, and downstream industry chain. Services include market supply and demand research and forecasts, market entry strategies, competitor cost research, and more, covering end-use industry from iron ore, coal, coke, and steel. SMM Ferrous has successfully served more than 300 Fortune Global 500 companies, China Top 500 companies, central state-owned enterprises, state-owned enterprises, publicly listed firms, and start-ups. 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Chongqing Shunbo Aluminum Alloy (Shunbo Alloy) has announced that its Anhui Phase II project will prioritize aluminum plate and strip products for battery foil blanks, battery casings, 3C products, and green packaging. The company highlights that these sectors align with the rapid growth of new energy vehicles (NEVs) and new energy storage systems (ESS). The project includes a 630,000-ton/year low-carbon aluminum alloy flat ingot line and a 50,000-ton/year high-performance aluminum plate and strip line. Production and sales are projected to scale from 120,000 tons in 2026 to 400,000 tons by 2028.

Driven by robust demand for AI, the price hikes in the PCB circuit board industry chain continue. According to reports, Japanese semiconductor material giant Resonac has raised the prices of CCL copper clad laminate and adhesive films by 30% starting from March 1. The industry expects that Resonac's price increase will be passed on to high-end manufacturing processes such as MLCC, HDI boards, IC substrates, and high-frequency high-speed PCBs. Moreover, the PCB sector may see a super catalyst – Nvidia's LPU inference chip. The market believes that with the implementation and rapid growth of AI applications, the market for specialized AI inference chips will expand rapidly, bringing about a significant impact on the PCB industry including increased volume and prices, process upgrades, material innovations, and higher concentration. This will enhance the value and importance of PCBs in AI chips, opening up new market size opportunities for the PCB industry.

Guotai Environmental Protection convened the 15th meeting of the 4th Board of Directors, reviewing and approving the "Proposal on Amending the Business Scope, Revising the , and Handling Industrial and Commercial Registration Changes." This adjustment not only represents a simple business expansion but also marks a key transformation of this traditional environmental protection enterprise into the field of new energy circular economy.

On February 24, Guotai Environmental Protection held its 15th meeting of the 4th Board of Directors, reviewing and approving the "Proposal on Amending the Business Scope, Revising the , and Handling Industrial and Commercial Registration Changes." This adjustment not only represents a simple business expansion but also marks a critical transformation of this traditional environmental protection enterprise into the field of new energy circular economy—adding businesses such as lithium-ion battery recycling, PV equipment leasing, and battery manufacturing, officially entering the rapidly growing closed-loop of the new energy industry chain. Guotai Environmental Protection's strategic adjustment is not accidental. In recent years, China's new energy vehicle industry has maintained rapid growth. Data shows that in 2025, China's NEV production and sales both achieved nearly 30% growth, with NEVs accounting for 47.9% of new vehicle sales. As early power batteries gradually enter their retirement phase, a massive backend market is accelerating its formation. Power battery recycling involves the collection, processing, and reuse of waste power batteries, aiming to promote resource circulation, protect the ecological environment, and drive long-term industry development. Currently, the standardized recycling rate for waste power batteries in China remains below 50%, with a large number of waste batteries flowing into informal channels such as "small workshops," posing environmental risks and causing the waste of strategic resources. Standardized recycling and utilization of retired power batteries are of great significance for reducing environmental pollution, ensuring the security of national critical metal resources, promoting industrial greening, and enhancing international competitiveness. In February 2025, the State Council Executive Meeting reviewed and passed the "Action Plan for Improving the NEV Power Battery Recycling and Utilization System," explicitly proposing to improve the standard system and achieve standardized, safe, and efficient recycling and utilization of power batteries. Shortly thereafter, six departments including the Ministry of Industry and Information Technology, the National Development and Reform Commission (NDRC), and the Ministry of Ecology and Environment jointly issued the "Interim Measures for the Recycling and Comprehensive Utilization of Waste Power Batteries from New Energy Vehicles," which will take effect on April 1, 2026. This upcoming regulation is regarded by the industry as a "watershed" for the sector. The "Management Measures" establish a "full life cycle" supervision system for power batteries, create a national traceability information platform for NEV power batteries, promote the monitoring of power battery flows and information traceability throughout their life cycle, and clarify the recycling responsibilities of power battery enterprises and NEV producers. This means that power battery recycling will shift from the past "guerrilla" operations to an era of "regular army" engagement. The introduction of the new regulation sets a clear "code of conduct" for the industry, aiming to resolve the structural contradiction between the "segmented" layout of the industry chain and the "full life cycle" management requirements, and to build a closed-loop chain of "production—use—recycling—regeneration."

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%.

Futures: Overnight, LME lead opened at $1,987.5/mt, hovering around the daily moving average during the Asian session. Entering the European session, it rose to a high of $1,994.5/mt before weakening, touching a low of $1,972/mt before the close, and finally closed at $1,979/mt after a slight rebound, down $16.5/mt, a decrease of 0.83%. Overnight, the most-traded SHFE lead contract opened at 16,800 yuan/mt, fell to a low of 16,740 yuan/mt after opening, then rebounded to a high of 16,820 yuan/mt, and finally closed at 16,800 yuan/mt after brief consolidation, forming a doji, up 45 yuan/mt from the previous settlement price, an increase of 0.27%. Data released by the State Administration for Market Regulation showed that 25.745 million new business entities were established nationwide in 2025, with rapid growth in enterprises related to emerging industries and future industries, indicating strong innovation momentum. Among them, frontier fields such as humanoid robots, civil aviation, and generative artificial intelligence led the gains. The number of Americans applying for unemployment benefits increased less than expected, indicating that layoffs remained at a low level. The third round of indirect talks between the US and Iran concluded, with the Iranian foreign minister stating that the two sides were close to reaching a consensus in some areas, and technical negotiations would be held in Vienna next Monday. The foreign minister of Oman, the mediating party, described the talks as having made significant progress. Media reports indicated that differences between the two sides remained significant, with the US insisting that Iran completely dismantle its nuclear facilities and transfer all enriched uranium out of the country; Iran proposed stopping nuclear activities for a limited number of years, after which enrichment activities would resume within a regulated regional framework. Spot fundamentals: In the Shanghai market, Chihong and Honglu lead was quoted at discounts of 50 yuan/mt to premiums of 50 yuan/mt against the SHFE lead 2604 contract. SHFE lead continued to hold up well. Some suppliers completed month-end inventory clearance, with individual large discount quotations narrowing, while other suppliers followed the market in shipments, mainly with cargoes self-picked up from primary lead smelters' production sites. Few secondary lead smelters had resumed production, with some having delayed plans; secondary refined lead quotations were scarce, and prices were firm, with mainstream producing areas offering at parity with the SMM #1 lead average price ex-works. Downstream enterprises resumed work gradually, but most still had certain inventory, resulting in low enthusiasm; spot order market transactions were sluggish. Inventory: On February 26, LME lead inventory was 286,300 mt, flat from the previous trading day. As of February 26, the total social inventory of lead ingots in five regions tracked by SMM continued to accumulate. Today's lead price forecast: This week, spot order procurement demand from downstream enterprises remained primarily for small, rigid needs. Many downstream enterprises were still consuming lead ingots stockpiled before the holiday after resuming work, and post-holiday lead ingot consumption appeared slightly weak. On the refined lead supply side, large-scale primary lead smelters in Henan maintained stable supply during the holiday. Smelter inventories accumulated significantly after the holiday, while the pace of production resumptions for secondary lead smelting enterprises that halted during the Chinese New Year was noticeably delayed compared to previous years. Under the current scrap battery and lead price conditions, secondary lead enterprises remained in a loss-making state upon resuming work, and concentrated production resumptions are expected to be delayed until March. This week, the supply and demand in the spot refined lead market have not fully recovered. Lead prices have moderate support at lower levels but struggle to rise due to pressure from increasing domestic inventory. In the short term, lead prices are expected to continue moving sideways.

In 2025, China's NEV production exceeded 16.6 million units, with a penetration rate as high as 48.1%. The rapid expansion of the NEV industry has driven rapid growth in sales of upstream thermal management parts. According to ChinaIOL data, the total annual sales of air conditioning units (AC units) in China reached 19 million sets in 2025, up 26.7% YoY.