SMM tracking feedback: The 7.7-magnitude earthquake on Flores Island, Indonesia, had a relatively small impact on the aluminum industry chain. In terms of capacity distribution, bauxite, alumina, and the vast majority of aluminum capacity are concentrated in western Indonesia, generally more than 1,400 km from the epicenter; even the closest aluminum smelter—Sulawesi Morowali Huachin Aluminum—was approximately 624 km away, still outside the 300 km damage radius. Coupled with a tsunami wave height of less than 0.4 meters, the actual supply shock was virtually zero. On the pricing front, it may at most show a short-term sentiment pulse of 0–1%, which is expected to be unwound within 1–3 days, without changing the medium-term trend.

Zimbabwe's government has set 2026 as the deadline for the country's ferrochrome smelters to develop their own captive power generation, primarily from renewable sources, ending a period of subsidized grid electricity tariffs for the sector, the International Chromium Development Association said earlier this year. The requirement reflects a hard physical constraint rather than a purely commercial one: ferrochrome smelting consumes 3,500-4,000 kWh per tonne of output, a load Zimbabwe's debt-strained, generation-deficient grid cannot absorb at scale without compromising supply to other users. With 2026 now more than half over, the deadline is approaching at the same time Zimbabwe is pushing an aggressive beneficiation agenda — including a February 2026 raw mineral export ban and newly announced regional beneficiation hubs earmarking chrome-producing areas for dedicated ferrochrome and chromium alloy production. Whether the country's ferrochrome producers, many of them Chinese-invested operations still ramping up capacity, have made sufficient progress toward captive renewable generation to meet the year-end deadline remains an open question, and one with direct implications for how much of Zimbabwe's chrome-beneficiation ambition can actually be realized on schedule. SMM will continue to monitor for concrete updates on captive power project progress across Zimbabwe's ferrochrome sector as the year progresses.

[Imported Zinc Concentrate Market] Recently, offers in the imported zinc concentrate market increased somewhat. Trader quotes generally held around -$120 to -$130/dmt. However, because smelters prioritized domestic zinc concentrate purchases, overall transactions for imported concentrates remained relatively limited, and overall imported TCs continued to decline.

[Domestic Zinc Concentrate Market] Recently, domestic mine disruptions persisted. Smelters actively purchased domestic zinc concentrates; the overall tight supply-demand situation remained unchanged, and TCs in many parts of China continued to decline. According to market sources, domestic smelters continued competing for ore, and in some regions, delivered TCs for high-grade zinc concentrate were heard falling below -2,000 yuan/mt in metal content.

[Weekly Magnesium Ingot Prices Rise on Strong Upstream Support; Insufficient Downstream Follow-Through Limits Upside Room] This week, mainstream quotations for magnesium ingot in major producing areas were 15,900-16,000 yuan/mt, up 100 yuan/mt WoW, with FOB prices at $2,250-2,350/mt. This round of magnesium ingot price gains was driven by three factors: supply-side maintenance-related production cuts, cost push from coal and ferrosilicon, and concentrated delivery and restocking by traders. However, after the price increase, downstream fear of high prices emerged and transactions returned to mediocre levels; foreign trade remained weak, constrained by exchange rate fluctuations and the uncertain recovery of summer break orders. Upstream dolomite prices were stable, with sufficient supply from multiple channels; downstream magnesium powder and magnesium alloy prices followed the increase, but demand follow-through was insufficient. Magnesium alloy processing fees remained under pressure due to ample inventory, the impact of non-standard supply sources, high-temperature maintenance at die-casting enterprises, plastic substitution in two-wheelers, and other factors. In the short term, cost support is pitted against weak demand, and magnesium prices continue to move sideways.

The SMM average price for 10-12% high-grade NPI fell by 2.8 yuan/nickel unit WoW to 1,133 yuan/nickel unit (ex-factory, tax included); the average Indonesian NPI FOB index price rose by $0.13/nickel unit WoW to $146.52/nickel unit. This week, the high-grade NPI spot market remained in a deadlock overall, with transaction volumes remaining limited throughout.

【Current Operating Status and Future Outlook of China's Crude Zinc Market Under Dual Supply-Demand Pressure】Since 2026, the domestic crude zinc market has exhibited operating characteristics of concurrent supply-side contraction and demand-side structural divergence. Affected by the combined impact of tightening raw material supply ......

SMM, August 14: Under the dual pressures of tight scrap battery raw material supply and smelting losses, domestic secondary crude lead smelters showed weak willingness to produce and sell. This Friday, mainstream tax-inclusive delivered secondary crude lead transactions were concentrated at 14,400-14,450 yuan/mt. New transactions for imported crude lead were sluggish, with scarce public quotes in the market, and only a small number of long-term contracts were executed at parity with the SMM #1 lead average price on an EXW port basis. Looking ahead to next week, domestic secondary crude lead supply is unlikely to see significant release, and downstream demand is expected to remain mediocre. Against the backdrop of lead prices in the doldrums, suppliers holding imported crude lead lacked sufficient profit margins, mostly chose to hold back from selling and await sales; although their quotes remained firm, the impact on the spot market was limited.

Downstream acceptance remained weak, and nickel intermediate product payables were in the doldrums this week.

It is learned that this week (August 7-13, 2026), the combined operating rate of primary lead smelters in the three provinces was 65.71%, down 0.76 percentage points WoW. Recently, operating rates of primary lead smelters continued to edge down. A medium-sized primary lead smelter in Hunan entered maintenance, which was the main reason for the week-over-week decline in the primary lead operating rate this week. Although some small primary lead smelters in Yunnan resumed production, overall growth was limited and failed to reverse the downtrend in operating rates. In mid-to-late August, maintenance at medium and large primary lead smelters in central and northern China will increase further, and the weekly operating rate of primary lead smelters is expected to still have downside room.