June Price Review: The monthly average spot price of grain-oriented silicon steel continued its earlier rebound in June, with the price center rising further. Despite relatively high supply pressure, the earlier price bottom recovery trend persisted, as the monthly average spot price rose steadily, reflecting good market expectations for price recovery. However, the oversupply pattern suppressed upside room, and the price rise pace was relatively mild, without a significant surge. Fundamental Analysis: In July, grain-oriented silicon steel production stayed high. By product type, HIB and CGO output remained stable. High-grade HIB still accounted for the vast majority of production, while CGO output remained in a small stable range, with no significant adjustments in the product mix. Compared with historical production schedules, the July 2026 schedule remained at a high level, with overall supply release being stable, and total supply of grain-oriented silicon steel staying relatively sufficient. The persistently high output was also one of the core factors capping the upside room for this round of grain-oriented silicon steel price rises and maintaining a loose supply-demand balance. In May, the consumption of grain-oriented silicon steel driven by new power grid installations was at a relatively low level for the year. By structure, thermal power and solar energy remained the main consumption sources, with wind power and hydropower providing supplementary demand, while nuclear power's share stayed low. Compared with the consumption structure of non-oriented silicon steel, thermal and solar power together accounted for 60%, clearly defining the demand structure on the power supply side. In May, the pace of new end-user installations slowed down, transformer company order growth was limited, and direct demand for grain-oriented silicon steel was released slowly. Coupled with continuous high production at steel mills, supply-side pressure was difficult to digest, which suppressed silicon steel prices. In the short term, it is hard to rely on power grid installations to provide a strong demand boost. July Price Outlook: Looking ahead to July 2026, supply side, China's grain-oriented silicon steel supply is expected to remain basically stable. Production lines at major domestic steel mills are operating stably, with no centralized maintenance plans, and the overall production load is maintaining stability. Meanwhile, mainstream steel mills like Baowu have raised the base price of grain-oriented silicon steel by 300 yuan/mt in their July product pricing policy. Combined with production profits remaining within a reasonable range, overall production enthusiasm is good, and high-grade resources are being steadily released. Demand side, market positives are continuing to provide support, and overall demand performance is robust. China's "15th Five-Year Plan" ultra-high voltage projects are being intensively started, construction pace is steadily advancing, and demand for transformers supporting new energy grid connection is strong. Additionally, home appliance and NEV energy efficiency upgrades are gradually being implemented, demand for high-efficiency motor retrofits is staying high, and overseas power grid upgrade projects are advancing continuously, with stable procurement demand for high-grade grain-oriented silicon steel. However, India has initiated anti-dumping against China's grain-oriented silicon steel, which may cause some resources to flow back to the domestic market, capping price increases. Cost side, driven by expectations of continued shrinking steel mill profits and normalized local environmental protection-driven production restrictions, hot metal output is expected to decline further; however, with the off-season impact widening, the average price of hot-rolled coil in July is expected to continue to decline MoM from June, with the decline narrowing. Overall, SMM expects the grain-oriented silicon steel price in July 2026 to show a consolidation pattern. Data Source Statement: (The 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 (NBS) data, customs import and export data, and various data released by trade associations and institutions), market communication, and SMM's internal database model. They are obtained through comprehensive analysis and reasonable inference by the research team, and are for reference only, not constituting any decision-making advice. SMM reserves the final interpretation rights of this statement and the right to adjust and modify the content of this statement according to actual circumstances.

The year 2026 marks the first year of the 15th Five-Year Plan. Against the backdrop of intensifying global macro volatility and China’s deepening high-quality development, the zinc industry is undergoing profound changes: tightness on the ore side and the release of smelting capacity are creating structural tension, diverging inventories in and outside China reflect the complex dynamics of supply-demand rebalancing, and technological innovation is emerging as a key driving force to resolve conflicts and reshape the landscape. Key areas under the 15th Five-Year Plan, such as new energy and new-type infrastructure, are injecting fresh momentum into traditional zinc consumption, while green, low-carbon development and the circular economy are also accelerating the restructuring of industrial logic, driven by technological innovation. With the joint support of upstream and downstream enterprises across the zinc industry chain, industry associations, and all relevant parties, the 2026 SMM Zinc Industry Conference and the 8th Hot-Dip Galvanizing Industry Development and Technological Innovation Forum, the 14th Zinc Salt, Zinc Oxide and Zinc Secondary Resources Development Forum, and the Cast Zinc Alloy Development Forum is about to be held on August 6–8 in Qingdao, Shandong. The conference, themed “Gathering Zinc Momentum, Building the Zinc Industry, Embarking on a New Journey,” will be driven by dual engines of macro perspectives and fundamental analysis, closely following the main theme of high-quality development under the 15th Five-Year Plan, and focusing on four major dimensions: macro policies, supply-demand pattern, global trade, and technological innovation. It will leverage technological breakthroughs to drive cost reduction and efficiency improvement, address market fluctuations through collaborative innovation, and jointly draw a new blueprint for the high-quality and sustainable development of the zinc industry. Shanghai Eagle Metal Materials Co., Ltd. will make a grand appearance at this event to discuss industry development trends with peers and jointly propel the zinc industry to new heights. Click to sign up now, witness and participate in this momentous and far-reaching industry gathering, and together create a brilliant new chapter! Eagle Metal—Eagle Metal is one of the world’s major commodity traders. Established in 2000 and headquartered in Shanghai, China, the group has branches in Singapore, Hong Kong, Thailand and other locations. The group primarily engages in services and operations along the non-ferrous metals industry chain. Its business scope covers copper, aluminum, lead, zinc, tin, nickel, silver, platinum and palladium, copper concentrates, lead concentrates, zinc concentrates, and more. Business activities include domestic trade in multiple commodities and international import and export, with operations spanning mainland China, Singapore, Hong Kong, London, Chicago, Thailand, South America, Africa and other regions. In addition to its core business, the group provides upstream and downstream clients with integrated trade, warehouse financing, logistics and transportation, and other risk management services. Adhering to the business philosophy of “model innovation, win-win cooperation,” the company has established enduring and in-depth partnerships with numerous large domestic and international smelters, mines, trading enterprises, and well-known banks. It has also repeatedly received honors such as “Contract-honoring and Trustworthy Unit,” “Excellent Partner,” “Best Partner,” and “Most Valuable Customer” awarded by national and Shanghai municipal authorities. Eagle Metal – In the course of its development, Eagle Metal has upheld the corporate philosophy of "virtue carries all things, and constant dripping wears away the stone"; it has remained true to its original aspiration and persisted in innovation, fueling growth through innovation and advancing development through growth. Keeping pace with the global economy, it actively participates in competition both in and outside China. Through outstanding quality services, it enhances client value and corporate value, and with firm steps, it contributes all its strength to the advancement of the non-ferrous metal industry! Contact Information Zinc Business Contact: Miao Hanying 15021533905 Zinc Business Contact: Shi Yang 18004502057 Long press or scan the QR code to register now 2026 SMM Zinc Conference

SMM, July 17: LME copper prices moved sideways overall this week. LME copper opened at $13,459/mt on Monday, edged up afterward, but pulled back toward the end of the week. Overall fluctuations were relatively limited. As copper prices showed no clear directional shift, quotation ratios for ex-China copper scrap remained stable this week without significant adjustments. Mainstream quotations for bare bright copper stayed within the 98.5%-99% range, quotations for No.1 copper mostly hovered around 98%, while those for No.2 copper fluctuated within the 96%-98.5% range, influenced by differences in scrap quality and gold and silver content. In the market, although copper prices edged up this week, ex-China suppliers still held prices firm. Meanwhile, the impact of the traditional consumption off-season persisted, with downstream orders performing modestly, buyers showing limited purchasing motivation, and trading sentiment remaining somewhat sluggish. Overall, the current ex-China copper scrap market continued its supply-demand weakness: available supplies were tight on the supply side, while the demand side remained cautious due to the off-season and high copper prices, leading to low overall market activity. Looking ahead to next week, the potential for significant demand-side improvement in the short term is limited due to the traditional off-season. Meanwhile, the tight supply pattern has not eased notably, so the supply-demand weakness is expected to persist. Regarding ratios, given the tight supply of ex-China copper scrap and some rigid demand support downstream, quotation ratios are not expected to see a significant pullback and may stay high in the short term.

Price Review for June: In June, the monthly average price of non-oriented silicon steel trended downward, probing the bottom. Supply-demand side, the market shifted from a slight balance to a mild undersupply, with fundamentals improving marginally. The oversupply that had been weighing on prices gradually eased, providing support for prices. Spot prices performed stronger than expected, edging down only slightly. As a transitional month between the off-season and peak season, June saw the supply-demand pattern improve. Fundamentals Analysis: The July production schedule for domestic non-oriented silicon steel is planned to decline further. Compared with the same period in previous years, the July 2026 schedule was lower than that of July 2025. In terms of grade structure, the proportion of NEV grades in the July schedule is expected to rebound to 15%, high grades at 19%, and low and mid-end grades pull back to 66%. Steel mills continue to adjust their product mix, leading to corresponding reductions in low-end conventional grades. Overall scheduled production volume continues to shrink, but supply-side pressure persists. Production levels for NEV and high-grade materials are maintained, while low and mid-end grades are significantly reduced, optimizing the supply structure to some extent and supporting price resilience. Downstream demand for non-oriented silicon steel in May showed structural divergence. Total silicon steel consumption in the home appliance sector edged down MoM, with air conditioners remaining the core demand driver. The automobile sector demand was strong, with silicon steel consumption climbing to a high for the period. Within this, passenger NEVs were the biggest support for non-oriented silicon steel demand in the auto sector. Overall, traditional home appliance demand weakened marginally, while NEV demand continued to strengthen, gradually shifting the demand center toward the auto track. This structurally benefited high-grade and NEV-grade non-oriented silicon steel. July Price Outlook: Looking ahead to July 2026, on the supply side, China's non-oriented silicon steel production schedule is planned to decline further, primarily in low and mid-end grades. On one hand, the off-season impact is becoming more pronounced: downstream demand is weak, purchasing enthusiasm has fallen, weighing on production willingness. On the other hand, leading producers such as Baowu and Shougang kept their July base prices unchanged, prioritizing price stability. However, market sentiment is bearish and prices are more likely to fall than rise. Most producers are operating at a loss and implementing voluntary production cuts. On the demand side, in the home appliance industry, producers slowed their production pace, with orders declining MoM. The "618" shopping festival did not significantly stimulate orders. Affected by low demand, high inventory, and high costs, some enterprises lowered their production schedules ahead of time. Additionally, new energy efficiency standards for certain home appliances were introduced, limiting production due to product iteration. In the automobile industry, automakers mostly maintained normal production pace, with some increasing output this month to meet mid-year targets. However, sales pressure remained due to moderate effects of the "618" promotions and policy support. Breaking it down, NEVs remained the main sales driver this month, while orders for internal combustion engine vehicles did not improve significantly. Exports were mainly directed to Russia, South America, and Southeast Asia. Total annual export volume for the industry is expected to reach 12 million units. Cost side, with steel mill profits continuing to shrink and local environmental protection-driven production restrictions becoming normalized, hot metal production is expected to decline further. However, as the impact of the off-season expands, the July average hot-rolled coil price is expected to decline further MoM from June, with the decrease narrowing. Overall, SMM expects that mid- and low-grade non-oriented silicon steel prices in July 2026 will drift lower as a whole, with room for price declines. Data Source Statement: (All data in this report, other than publicly available information, are based on publicly available information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, NBS data, customs import and export data, and various data released by major associations and institutions), market communication, and SMM's internal database models. The research team has conducted comprehensive analysis and made reasonable inferences, which 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 in accordance with actual conditions.

Pb50 domestic TCs (weekly) were unchanged at 150 yuan/mt Pb this week, while Pb60 import TCs (weekly) were unchanged at -$170/dmt. During the week, TCs were largely stable. Some enterprises indicated that although some domestic small mines had suspended production or cut output, the overall impact was relatively limited. Meanwhile, some domestic smelters were undergoing minor maintenance, which had not yet altered the supply-demand pattern. In the imported lead concentrate market, a Mexican lead concentrate deal was previously concluded at -$300/dmt, with valuable metals such as silver, copper, and zinc. Other mainstream transaction prices remained unchanged. The market was still awaiting actual subsequent imports of lead concentrates from Australia and the Middle East. For the payable silver indicator in lead concentrates, although precious metal prices consolidated at lows, the payable silver indicator did not show any significant change or negotiation. Considering by-product profits, most smelters were still willing to purchase silver-lead ore or other lead-rich ores, and the payable silver indicator in lead concentrates remained largely stable overall.

[SMM Daily Review: Logan's Hawkish Stance and Escalating Geopolitical Conflicts Drive Silver Prices to Break Below Support] SMM July 17 news: Fed voter Logan sent hawkish signals, and with geopolitical conflicts in the Middle East continuing to escalate, precious metals fell under pressure, with silver breaking below support. In the spot market, supply and demand were both weak, transactions remained sluggish, and premiums held steady near parity.

[SMM Cobalt-Lithium Morning Briefing: This week, prices in the new energy industry chain continued to diverge. The lithium industry chain was generally weak. The transaction center of lithium ore shifted lower alongside lithium chemical prices, and lithium carbonate fell to around 150,000 yuan/mt. Downstream firms bought the dip at low price levels, but upstream producers held prices firm and held back from selling, intensifying the market tug-of-war. Lithium hydroxide transaction prices declined in tandem, and overall trading remained sluggish. In the cobalt industry chain, demand was weak. Refined cobalt, cobalt sulphate, and cobalt chloride all lacked effective transaction support, while prices of intermediate products and Co3O4 temporarily held steady. Nickel sulphate inventory continued to decline, but downstream stockpiling willingness was insufficient, and prices still faced pressure.]

[7.17 Morning Meeting Minutes] US June PPI declined 0.3% MoM, the first drop since last year, while market expectations were for a flat reading; June PPI rose 5.5% YoY, significantly narrowing from the 6.5% in May; June core PPI YoY growth slowed to 4.7%, with only a 0.2% MoM increase, both below market expectations. On July 16, the most-traded SHFE nickel contract surged in early trading, breaking through 130,000 yuan/mt and briefly hitting 133,000 yuan/mt, with a morning gain of 2.9%; LME nickel simultaneously held above $17,000/mt, rising about 2.5% in early trading. Recently, macro, policy, and cost-side positives re-emerged. Combined with a MACD golden cross, nickel prices holding above the 10-day moving average, and bearish funds taking profits, nickel prices have rebound momentum. However, weak demand and high inventory continue to cap upside room. The most-traded SHFE nickel contract is expected to trade within a 127,000–137,000 yuan/mt range. Going forward, attention will focus on the results of Indonesia's July RKAB quota approval and the situation in the Strait of Hormuz.

This week (July 10-16), the weekly operating rate of SMM brass billet enterprises was 49.61%, pulling back slightly by 0.35 percentage points WoW, as the industry maintained a low-level operating pattern. The tight supply of recycled brass raw materials remained difficult to alleviate, procurement costs stayed high, and enterprises' restocking willingness remained weak. The days of raw material inventories for sample enterprises stood at 3.7 days, with the tight raw material turnover continuing to constrain production flexibility. This week, production of brass billets edged down slightly WoW. The traditional off-season characteristics in the downstream market became more prominent, with orders in refrigeration, sanitary ware, and hardware sectors weakening simultaneously. End-use demand lacked growth, and downstream purchasers generally maintained a cautious wait-and-see sentiment, mainly purchasing small quantities based on need. The destocking progress of finished products fell short of expectations, with days of finished product inventories for sample enterprises at 5.11 days, indicating ongoing inventory pressure. Looking ahead to next week (July 17-23), the off-season downstream market is not expected to show significant improvement. Orders in refrigeration, sanitary ware, and hardware are unlikely to recover. Meanwhile, the current situation of tight raw material supply and high procurement costs will continue to constrain enterprise production . SMM expects the operating rate of sample brass billet enterprises to pull back slightly to 49.19%, with the industry's low operating status continuing.

7.17 SMM Alumina Morning Comment Futures: On the night of July 17, the most-traded alumina 2609 night session futures contract opened at 2,681 yuan/mt, rose to a high of 2,694 yuan/mt, fell to a low of 2,675 yuan/mt, and finally closed at 2,691 yuan/mt, down 16 yuan/mt, or 0.59%, from the previous trading day’s settlement price. Trading volume was 82,600 lots, open interest stood at 375,800 lots, up 8,623 lots day on day. From a technical perspective, the price is trading below the MA5 (2,691.80) and also below the MA10 (2,703.10), MA30 (2,795.43), and MA60 (2,804.62), with the medium- and long-term moving averages maintaining a bearish stance. On the MACD front, the DIF (-39.15) is below the DEA (-33.91), and the MACD histogram recorded -10.48, showing that bearish momentum still dominates. However, the negative histogram continued to narrow from the previous trading day, indicating that bearish momentum is weakening. Overnight, alumina futures drifted lower and again lost the 2,700 yuan/mt level, accompanied by an increase in open interest, signaling that bears are still entering the market. In the short term, futures are likely to remain weak. Attention should be paid to support near 2,660 yuan/mt and changes in capital flows. Ore: As of July 16, 2026, the SMM imported bauxite index stood at $70.36/mt, flat from the previous trading day; the SMM Guinea bauxite FOB average price was $39/mt, flat; the SMM Guinea bauxite CIF average price was $70.5/mt, flat; the SMM Australian low-temperature bauxite CIF average price was $64/mt, flat; the SMM Australian high-temperature bauxite CIF average price was $58.5/mt, flat; the Malaysian bauxite CIF average price was $52/mt, flat; the Malaysian bauxite CIF (washed) average price was $62.5/mt, flat; the Ghana bauxite CIF average price was $78/mt, flat; and the bauxite CFR Turkey price was $78.5/mt, flat. Overall, on the domestic ore front, mines in Shanxi, Henan, and other areas are gradually resuming operations. Alumina refineries continue to push for lower ore purchase prices, and domestic ore prices remain generally in the doldrums. On the imported ore front, ocean freight rates stay high, and ongoing policy uncertainty in Guinea provides some support for ore prices. However, China’s alumina refineries still hold high raw material inventories, limiting their buying interest, and price negotiations in the market persist. Imported ore prices are expected to continue to consolidate at highs in the short term. Going forward, close attention should be paid to Guinea’s bauxite quota policy and changes in Australia-China ocean freight rates. Spot prices: As of July 16, 2026, the SMM Alumina Index stood at 2,730.17 yuan/mt, down 5.18 yuan/mt from the previous trading day; the SMM Shandong Alumina Index stood at 2,736.66 yuan/mt, down 7.5 yuan/mt from the previous trading day; the SMM Henan Alumina Index stood at 2,764.75 yuan/mt, down 4.87 yuan/mt from the previous trading day; the SMM Shanxi Alumina Index stood at 2,772.50 yuan/mt, down 7.22 yuan/mt from the previous trading day; the SMM Guizhou Alumina Index stood at 2,735.04 yuan/mt, down 0.8 yuan/mt from the previous trading day; the SMM Guangxi Alumina Index stood at 2,642.70 yuan/mt, down 3.25 yuan/mt from the previous trading day. Daily spot-futures spread: According to SMM data, on July 16 the SMM Alumina Index showed a discount of 37.17 yuan/mt to the latest traded price of the most-traded contract as of 11:30. Daily warrant report: On July 16, total registered alumina warrants stood at 276,400 mt, up by 7,483 mt from the previous trading day; total registered alumina warrants in Shandong stood at 30,908 mt, unchanged from the previous trading day; Henan stood at 1,802 mt, unchanged; Guangxi stood at 12,941 mt, unchanged; Gansu stood at 14,403 mt, unchanged; Xinjiang stood at 216,300 mt, up by 7,483 mt from the previous trading day. Markets outside China: As of July 16, 2026, the FOB Western Australia alumina price stood at $328/mt, unchanged from the previous trading day; the Australia-China ocean freight rate stood at $32.35/mt, up $1.2/mt from the previous trading day; the USD/CNY selling rate stood at 6.7837. Based on this calculation, the equivalent domestic mainstream port selling price for seaborne alumina was about 2,842.29 yuan/mt, which was 112.12 yuan/mt above the SMM Alumina Index that day. Summary: China's total alumina inventory edged up MoM, with little overall change. By segment, raw material inventory at aluminum smelters declined, mainly because current spot alumina prices stayed high, prompting some smelters to actively reduce high-priced in-factory inventory and leading to lower raw material stockpiling; in-factory inventory at alumina refineries edged up, as maintenance-related production cuts in Shanxi were offset by production increases in south China, resulting in relatively limited overall changes. At ports, new vessel arrivals gradually added to port inventory; warrant inventory showed a downtrend, affected by invoicing issues and the spot-futures spread, which weakened the willingness to ship to delivery warehouses; in-transit and station inventory accumulated, mainly because warrants gradually expired, converting to spot cargoes, while shipments from Guangxi continued, increasing in-transit cargoes. The operating pattern of alumina is expected to see little change this week. Some enterprises using domestic ore may schedule maintenance due to ore supply issues, but the impact on monthly production will be limited, and overall inventory will remain at current levels. Price side, as the regional alumina mismatch issue gradually eases, the spot price center is expected to pull back, and the subsequent trend will be under pressure. [Data other than public information are all processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and do not constitute decision-making advice.]