June Price Review: In June, the monthly average price of GO silicon steel continued its previous rebound trend, with the price center continuing to rise. Despite relatively high supply pressure, the earlier trend of price bottom repair persisted, and the monthly average spot price steadily rose, reflecting that the market held good expectations for a market recovery. However, the oversupply pattern capped the upside room, and the price uptrend was relatively mild without any sharp surge. Fundamental Analysis: In July, GO silicon steel production is expected to stay high. In terms of production by variety, HIB and CGO output will remain stable, with high-grade HIB still accounting for the vast majority of production, while CGO output will hold steady within a narrow range, and the product mix will not undergo significant adjustments. Compared with historical production schedules, the July 2026 production schedule will continue the high-level range, with overall supply releases stable, and total GO silicon steel supply will remain relatively ample. Sustained high output has also become one of the core factors capping the upside room for GO silicon steel prices this round and keeping the supply-demand balance loose. In May, GO silicon steel consumption driven by new grid installations was at a relatively low level for the year. In terms of structure, thermal power and solar power remained the main consumption sources, with wind and hydropower demand providing supplementation, and nuclear power’s share staying low. Compared with the consumption structure of non-oriented silicon steel, thermal power and solar together accounted for 60%, making the demand structure characteristics on the power supply side clear. In May, the pace of new terminal installations slowed down, transformer enterprise order growth was limited, and direct demand for GO silicon steel was released slowly, coupled with sustained high production at steel mills earlier, supply-side pressure was hard to digest, which weighed on silicon steel prices, making it difficult to rely on grid installations for strong demand boost in the short term. July Price Outlook: Looking ahead to July 2026, on the supply side, China's GO silicon steel supply is expected to be basically stable. Mainstream steel mills’ production lines will operate stably with no concentrated maintenance plans, and the overall production load will remain stable. Meanwhile, mainstream steel mills such as Baowu will raise the base price of grain-oriented products by 300 yuan/mt in their July pricing policies. Coupled with production profits maintaining a reasonable range, overall production enthusiasm will be good, and high-grade resources will be steadily released. Demand side, favorable market support continues, with overall demand performing robustly. China’s “15th Five-Year Plan” UHV projects continue to start construction in a concentrated manner, with the construction pace steadily advancing. Demand for transformers supporting new energy grid connections is robust. At the same time, energy efficiency upgrades for home appliances and NEVs are gradually being implemented, keeping demand for high-efficiency motor retrofits high. Moreover, overseas power grid upgrade projects are advancing, and procurement demand for high-grade GO silicon steel remains stable. However, India’s launch of anti-dumping against China’s GO silicon steel may cause some resources to flow back into the domestic market, weighing on price increases. Cost side, with expectations of further shrinking steel mill profits and normalizing production restrictions driven by local environmental protection, hot metal output is expected to continue to decline. However, the off-season impact on the market is expanding, and the average HRC price in July is expected to decline further MoM from June, with the decline narrowing. Overall, SMM expects that GO silicon steel prices will present a consolidation pattern in July 2026.

[SMM Stainless Steel Daily Review] SS Futures Stop Rising and Pull Back, Spot Prices Hold Steady while Transactions Cool According to SMM on July 17, the SS futures showed a subdued consolidation trend. Weighed down by the overall weakness in the nonferrous metals sector, SS futures moved lower simultaneously, with the most-traded SS contract closing at 14,645 yuan/mt. In the spot market, boosted by yesterday's SS futures gains, spot stainless steel prices were generally raised yesterday afternoon, with transactions gradually recovering. However, today's futures stopped rising and pulled back; although spot prices remained stable for the time being, transactions weakened. SS most-traded futures contract: At 10:15 a.m., SS2608 was reported at 14,795 yuan/mt, up 130 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi were in the 225-575 yuan/mt range. In the spot market, the average price for cold-rolled 201/2B coil in Wuxi was flat; for cold-rolled raw edge 304/2B coil, the average price rose 100 yuan/mt in Wuxi and 75 yuan/mt in Foshan; for cold-rolled 316L/2B coil in Wuxi, prices were flat; for hot-rolled 316L/NO.1 coil, prices in Wuxi were flat; cold-rolled 430/2B coil prices were flat in both Wuxi and Foshan. This week, macro-wise, the US CPI data pulled back, leading to cooling inflation expectations and a modest recovery in market risk appetite. Additionally, Indonesia's Ministry of Energy and Mineral Resources (ESDM) clarified that additional nickel ore production quotas for this year would be only moderate and limited, signaling limited growth potential and a sustained tight supply pattern for raw materials. This provided solid underlying support for the spot market, driving SHFE nickel and SS futures to stop falling and rebound. Regarding spot cargo and inventory, steel mills held prices firm to underpin the market...

ChinaIOL data shows that in June 2026, China’s household air conditioner production totaled 17.76 million units, down 5.4% YoY; sales reached 18.195 million units, down 7.3% YoY. Of which, exports were 6.794 million units, down 7.1% YoY; domestic sales were 11.402 million units, down 7.4% YoY. According to the data, the market remains on a downward trajectory, but the overall decline is narrowing, and both domestic sales and exports are showing signs of recovery. Domestic Sales Market: Boosted by the 618 Shopping Festival, Downward Trend Narrows In the domestic sales market, the decline in household air conditioner shipments noticeably narrowed in June, mainly boosted by the 618 shopping festival, which helped destock online inventory and prompted some restocking among enterprises. However, terminal market performance during 618 still fell short of previous years. On the cost side, prices remained high and fluctuated, while end-user prices were still locked in fierce competition. Sales of mid- to high-end products have declined to some extent this year, the overall price structure of the market has been shifting downward, and enterprise profitability is facing considerable pressure. With June ending, some listed home appliance companies are about to release semi-annual reports, and driven by the pressure of financial reporting, enterprises are likely to sell more aggressively in June in an effort to give a good account to the market. Cumulative domestic sales in January–June reached 62.822 million units, down 5.6% YoY. As the data indicates, the overall domestic sales market in H1 remained under pressure, coming from persistently high costs and inventories on the one hand, and from the phasing out of state subsidies and diminishing marginal returns on the other. Consumers who have been ‘educated’ by low prices now have longer and more cautious purchasing cycles, which feeds back into the market as price involution across the industry. In such an environment, the industry is undergoing a new wave of reshuffling, and enterprises without orders or with poor profitability will be eliminated from the market. Export Market: Decline Narrowing in Sync, Localized Heatwaves Facilitate Destocking In the export market, although some regional markets have seen a partial recovery, exports still fell 7.1% YoY and 10.4% MoM. The dual decline was mainly due to some regions entering the off-season, coupled with accumulated inventory pressure, making overseas dealers less willing to restock. As high temperatures overseas gradually subside, market sales will slowly taper off, and the export scale is expected to return to around 5 million units by July. This is also part of the seasonal structural changes in household air conditioners; as the export off-season sets in, the focus will gradually shift back to the domestic sales market. Cumulative exports in January–June reached 52.703 million units, down 6.8% YoY. In H1 this year, the household air conditioner export market exhibited regional divergence and uneven recovery, with climate, inventory, economic, and policy cycle mismatches being the core influencing factors, while aftershocks of geopolitical conflicts and differing national policies further amplified market uncertainty. In addition, climate trends, inventory cycles, the pace of economic recovery, and changes in trade and energy efficiency policies in core countries vary across regions. Taking Europe as an example, the booming Western European market contrasts with the sluggish Eastern European market. Moreover, the data does not fully represent the overall market picture, and the characteristics of different markets need to be considered. The Western European market is dominated by rental housing, and coupled with local installation policy restrictions, extreme heat has boosted sales of portable air conditioners. In addition, market expectations regarding the weather are also driving growth. However, structural divergence remains pronounced. According to ChinaIOL, the inventory of split-type air conditioners in the Western European market is still saturated, and installation difficulties and environmental protection restrictions have been constraining the growth of split-type units.

This week, the operating rate of leading aluminum downstream processors in China recorded 61.3%, down 0.6 percentage points WoW.

[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.]

SMM, July 17: In the metals market: Overnight, base metals broadly rose in both domestic and overseas markets, with only LME copper and SHFE copper falling together—LME copper declined 0.28% and SHFE copper eased 0.08%. LME lead, LME nickel, and SHFE lead all gained, with LME lead up 1%, LME nickel up 1.66%, and SHFE lead up 1.57%. Gains in other metals were within 1%. The most-traded alumina contract fell 0.59%, while the most-traded foundry aluminum contract rose 0.52%. Overnight in ferrous metals, stainless steel advanced 1.16%, iron ore rose 0.79%, and gains in rebar and hot-rolled coil were within 1%. In coking coal and coke, coking coal added 0.36% and coke edged up 0.08%. Overnight in precious metals, COMEX gold dropped 1.77% and COMEX silver tumbled 2.9%, touching an intraday low of $55.595/oz, its lowest since November 2025. In China, SHFE gold fell 1.34% and SHFE silver slumped 3.15%. Bernstein raised its 2026 gold price target to $4,533/oz, citing central bank reserve diversification and expectations that the US Fed will only hike rates once or twice at most over the coming year. (Jinshi Data APP) Overnight closing prices as of 6:41 on July 17: Macro Front China: [Ministry of Commerce Responds to Progress on Resolving Nexperia Semiconductor Issues] At a routine press conference on the 16th, Ministry of Commerce spokesperson He Yadong responded to questions on progress in resolving issues concerning Nexperia, stating that since China and the Netherlands established an open and pragmatic comprehensive cooperative partnership more than a decade ago, bilateral economic and trade cooperation has continuously deepened. On July 7, Dutch Minister for Foreign Trade and Development Cooperation Schreinemacher visited China. Minister Wang Wentao co-chaired the 18th meeting of the China-Netherlands Joint Committee on Economic and Trade Cooperation, where the two sides held candid, in-depth exchanges on China-Netherlands and China-EU economic and trade relations. Both sides agreed that governments should create a favorable environment, encouraging enterprises to resolve disputes through consultation and safeguarding the security and stability of global semiconductor industrial and supply chains. [US Initiates Anti-Circumvention Investigation on Crystalline Silicon Solar Cells] On July 13, 2026, in response to an application filed by US domestic companies First Solar, Inc., Hanwha Q CELLS USA Inc., Talon PV, Swift Solar, Great Lakes Solex PR, LLC, DYCM Power, LLC, Suniva Inc., and Silfab Solar Inc., the US initiated an anti-circumvention investigation on crystalline silicon solar cells (whether or not assembled into modules) originating in China. The investigation examines potential circumvention of US antidumping and countervailing duty orders via two scenarios: (1) Chinese-made parts are assembled into solar cells and modules in Ethiopia and then exported to the US through Ethiopia; (2) Chinese-made parts are assembled into solar cells in Ethiopia, then exported to Vietnam for module assembly before being re-exported from Vietnam to the US. On February 1, 2024, the US Department of Commerce initiated the second sunset reviews of the antidumping and countervailing duty orders on crystalline silicon solar cells imported from China. On June 7, 2024, the Department of Commerce issued the final results of the expedited second sunset review of the countervailing duty order. (China Trade Remedies Information) US Dollar: As of the overnight close, the US dollar index rose 0.21% to 100.72. Dallas Fed President Lorie Logan (2026 FOMC voting member) called for higher interest rates, stating that inflation does not appear to be sustainably returning to the central bank's 2% target. A modest increase in rates would better balance the outlook and risks under the Fed's dual mandate of price stability and maximum employment. Artificial intelligence (AI) may eventually deliver a productivity surge, but for now, demand effects are pushing up prices as demand outstrips supply. (from Wall Street News APP) Fed Vice Chair Jefferson: Policy is well-prepared and can be reconsidered if necessary. The current policy stance should support the labor market and allow inflation to resume its decline toward the 2% target as the effects of tariffs and energy price pass-through fade. In a scenario where inflation fails to begin cooling, it may be appropriate to re-examine the policy stance to ensure price stability is achieved. The current policy is well-positioned to respond to changes and will be shaped based on incoming data, the evolving outlook, and the balance of risks. Firmly committed to restoring inflation to our 2% target, consistent with our dual mandate. The impact of the Middle East conflict on demand is expected to be mild, as the US is a net oil exporter and its economy has relatively low oil dependence. Two major developments are being closely monitored—the Middle East conflict and the popularization of artificial intelligence (AI). The current situation underscores a policy dilemma where tension exists between the dual mandate objectives. Each development cannot be viewed in isolation; policy must be formulated considering overall economic conditions. Energy shocks and trade policy shocks are compounding one another, with the latter already impacting output and prices at least in the short run. Successive shocks bring the risk that inflation becomes entrenched and inflation expectations become de-anchored. The economic shocks from AI could have lasting effects on both supply and demand. If the demand effects from AI infrastructure and consumption arrive ahead of AI's productivity dividends, AI could exert upward pressure on inflation. If AI's productivity dividends reduce production costs more quickly, it could generate downward pressure on inflation. (from Wall Street News APP) According to the CME "FedWatch" tool: The probability of the Fed holding rates steady in July is 88.8%, with an 11.2% chance of a cumulative 25bp hike. The probability of holding rates steady through September is 48.8%, with a 46.2% chance of a cumulative 25bp hike and a 5.1% chance of a cumulative 50bp hike. (Jinshi Data) Macro front: Today will see the release of US June housing starts (annualized), US June building permits, US June import price index (MoM), US June industrial production (MoM), the preliminary US July one-year inflation expectations, the preliminary US July University of Michigan consumer sentiment index, the Eurozone May seasonally adjusted current account, the Eurozone June final CPI (YoY), the Eurozone June final CPI (MoM), and other data. Additionally, China's refined oil products will see a new pricing window open. The 2026 World AI Conference & High-Level Meeting on AI Global Governance will be held in Shanghai from July 17 to 20. President Xi Jinping will attend the opening ceremony and deliver a keynote speech. 2026 FOMC voter and Dallas Fed President Logan speaks; 2028 FOMC voter and Kansas City Fed President Schmid speaks; Fed Vice Chair Jefferson speaks on the economy and monetary policy; and US President Trump delivers a national address. Crude Oil: As of the overnight close, both benchmark oil prices fell—WTI crude slipped 0.03% and Brent crude edged down 0.11%. Tensions between the US and Iran persist, and Tehran appears unwilling to back down in the face of warnings from US President Donald Trump. The US military also stated that it assisted more than 10 vessels transiting the Strait of Hormuz overnight. Nevertheless, shipping traffic remains significantly reduced. According to RBC Capital Markets data, the seven-day average of oil shipments through the Strait of Hormuz has declined from 4.6 million bpd to 3.9 million bpd. (Bloomberg) Sources: Crude oil loadings from all Iraqi oil terminals have been suspended following the drone collision with an oil tanker. (Jinshi Data APP) According to Kpler data and a source with direct knowledge of flows, after months of restricted exports, Iraqi crude loadings more than doubled in the first half of July, averaging roughly 1.2 million bpd as shipments accelerated. Kpler data shows Iraq's crude exports averaged around 500,000 bpd in June. Despite the monthly increase, exports from Iraq's southern Basrah port remain far below pre-US-Iraq war levels—before March, average daily exports had exceeded 3.2 million bpd. (Reuters)

[SMM Rare Earth Weekly Review: Pr-Nd oxide consolidates with an upward trend, medium-heavy rare earth quotes generally raised, permanent magnet demand under pressure in off-season] Mid-week, as the price fluctuations of Pr-Nd oxide were relatively small, recycling enterprises did not significantly adjust their external purchase quotations, and the scrap market remained generally stable. Towards the weekend, driven by the rise in Pr-Nd oxide prices, Pr-Nd scrap prices were slightly raised to 785 yuan/kg, but suppliers remained cautious in selling. Dysprosium and terbium scrap prices ran steadily throughout the week, with relatively small fluctuations.

This week, the Southeast Asian secondary aluminum market overall remained in the doldrums, with aluminum scrap and ADC12 prices remaining under pressure. As LME aluminum prices continued to consolidate on a subdued note, downstream consumption recovery was slow, market purchases were still mainly for rigid demand, and the overall trading atmosphere was mediocre. Meanwhile, overseas quotes continued to pull back, which improved China’s import profitability from earlier levels. Some Southeast Asian resources flowed back into the Chinese market, but spot transactions still failed to show a significant increase in volume.

Social inventory of building materials: According to an SMM survey, the total social inventory buildup of building materials continued to slow down this period. As of July 16, 2026, SMM building materials social inventory stood at 5.6042 million mt, up by 44,700 mt WoW, an increase of 0.80%. The main reason was that during the survey period, affected by typhoon and rainy weather, arrivals of resources in some regions decreased, causing the pace of social inventory buildup to slow down. Social inventory by region: Currently, regional inventory performance diverged. In east China, overall inventory edged up slightly, mainly due to the impact of typhoon weather over the weekend, which led to temporary closures at riverside terminals and restricted construction at downstream sites, slightly slowing the pace of purchases. In some areas such as Nanjing and Fujian, reduced production at steel mills led to fewer arrivals of resources, causing social inventory to slightly destock. In the northeast, some places were hit by heavy rain and floods, triggering a Level I flood control and drainage response. All downstream construction sites were suspended, accelerating inventory buildup. In the northwest, the inflow of external resources from the north has recently decreased, resulting in a slight reduction in inventory. Other regions basically experienced normal inventory buildup.

[Pr-Nd Oxide Quotes Remain Firm, Dysprosium-Iron Alloy Raised Slightly, End-Use Demand Stays in Off-Season Mode] Yesterday, Pr-Nd alloy prices pulled back slightly, market trading atmosphere was sluggish, and quotes from metal plants diverged: Quotes from large plants remained firm, while small plants actively sold at lower prices, but overall transactions were limited. For medium-heavy rare earths, terbium metal prices held steady, low-priced supplies in the dysprosium-iron alloy market tightened, and quotes were raised slightly.