After a strong start, the price of gold slipped twice to around $5,060 during this trading week. Now, it appears that gold prices might manage to stay just above $5,100 heading into the weekend, continuing the persistent sideways movement of the past five weeks.

Among them, the Gulf region was an important consumer market for China in the Middle East: China’s exports of aluminum plate/sheet and strip to Saudi Arabia reached 42,500 mt, and aluminum foil 58,000 mt; exports of aluminum plate/sheet and strip to the UAE reached 103,500 mt, and aluminum foil 93,800 mt; the other four countries (Bahrain, Qatar, Kuwait, and Oman) accounted for combined exports of about 22,000 mt of aluminum plate/sheet and strip and about 11,000 mt of aluminum foil.

Recent Middle East conflicts have disrupted the region's booming energy storage market, a major destination for Chinese exports. To assess the real impact on Chinese supply chains and project deliveries, we must analyze baseline demand amidst these geopolitical uncertainties.

[SMM Morning Meeting Summary: Macro Uncertainty Still Persists, LME Zinc Maintains Wide Swings] Overnight, LME zinc opened at $3,336.5/mt. In early trading, LME zinc fluctuated upward and touched an intraday high of $3,386/mt. Prices then pulled back to a low of $3,323.5/mt, before edging up slightly near the close to finish at $3,342/mt, up $16/mt, or 0.48%. Trading volume decreased to 98,167 lots, and open interest fell by 254 lots to 216,000 lots.

【Overseas Lithium News】 ► Pilbara Minerals Secures AUD 15 Million Grant from Western Australian Government for Lithium Midstream Demonstration Plant Project ► Saudi Aramco and Saudi Mining to Establish Lithium Mine Joint Venture ► Vulcan Energy Produces First Batch of Battery-Grade Lithium Hydroxide in Germany ► CleanTech Lithium Successfully Trials Production of 99.78% Purity Battery-Grade Lithium Carbonate in the US

【Lithium Prices Slump, Yet Saudi Aramco Bets Big on New Energy Future】 ① Saudi Aramco is set to expand its investments in lithium production as part of its efforts to diversify its business; ② Saudi Arabia plans to develop commercial lithium processing facilities for refining and exports within three to five years; ③ Last month, Saudi Aramco, Lihytech, and Saudi Arabian Mining Company successfully extracted lithium from brine samples taken from oil fields. (Cailian Press)

[Saudi Aramco and Maaden Plan to Establish a Lithium Producer Joint Venture] January 15 – Saudi Arabia's leading oil and mining companies are forming a joint venture to produce lithium, a critical metal for the energy transition. Saudi Aramco stated in a release that it has identified "potential lithium-rich zones" within its oil and gas fields. The company noted that the joint venture with Saudi state-owned mining company Maaden aims to produce commercial quantities of lithium by 2027.

[Saudi Aramco and Maaden Plan to Establish a Lithium Producer Joint Venture] Saudi Arabia's leading oil and mining companies are forming a joint venture to produce lithium, a critical metal needed for the energy transition. Saudi Aramco stated in a release that it has identified "potential lithium-rich zones" within its oil and gas fields. The company noted that the joint venture with Saudi state-owned mining company Maaden aims to produce commercial quantities of lithium by 2027.

Sinopec and Saudi Aramco recently signed the "Yanbu Refinery Expansion Project Cooperation Framework Agreement" in Dammam, Saudi Arabia, aiming to enhance the capacity of high-end petrochemical products through expansion. The expansion project will utilize the refinery's existing facilities to build new ethylene units with an annual capacity of 1.8 million mt, aromatics units with an annual capacity of 1.5 million mt, and supporting downstream polyolefin units, maximizing the synergistic effects of integrated refining and chemical production. Upon completion, the project will significantly improve the refinery's production capacity for high-end petrochemical products. The Yanbu Refinery, officially known as Saudi Aramco Sinopec Refining Company (SASREF), is a joint venture established by Sinopec and Saudi Aramco, with Saudi Aramco holding a 62.5% stake. It officially commenced operations in January 2016. This project is an important practice of China's "Belt and Road" initiative and Saudi Arabia's "Vision 2030." The refinery is located in Yanbu Industrial City, Saudi Arabia, processing 430,000 barrels per day of Saudi heavy crude oil to produce refined oil and high-value-added products for the global market. The signing ceremony was witnessed by Zhao Dong, General Manager of Sinopec Group, and Amin Nasser, President and CEO of Saudi Aramco. Saudi Aramco is Saudi Arabia's state-owned oil company and one of the world's largest integrated energy and chemical companies. In recent years, Saudi Aramco has continuously deepened its cooperation with China. In 2022, the company signed an agreement with Sinopec to build an integrated refining and chemical project in Gulei, Fujian. In 2024, the second phase of the Fujian Gulei Refining and Chemical Integration Project, with a total investment of 71.1 billion yuan, officially commenced. The project plans to construct over 30 major units, including an annual crude oil processing capacity of 16 million mt, ethylene production capacity of 1.5 million mt, and aromatics production capacity of 2 million mt.

On January 29, 2026, Lyu Zexiang, Overseas Operations Director of China Energy Engineering Corporation (CEEC), held talks with Nabil R. Al-Khowaiter, Senior Vice President of Saudi Aramco, in Beijing. The two sides engaged in in-depth discussions and reached consensus on deepening exchanges in scientific and technological innovation, as well as expanding cooperation in the fields of new energy, seawater desalination, new-type energy storage, and integrated green hydrogen, ammonia, and methanol. This meeting not only represents a practical measure for China-Saudi Arabia energy cooperation but also aligns with the strategic deployment of the Political Bureau of the CPC Central Committee to "make forward-looking arrangements for future industries such as hydrogen energy." Lyu Zexiang welcomed Nabil R. Al-Khowaiter and his delegation, introducing CEEC's advantages across the entire industry chain in the energy and power sector and its performance in the Middle East market. He stated that the two sides share highly aligned concepts regarding green transformation cooperation. He expressed hope to establish a regular communication mechanism, strengthen technology and information sharing, and jointly expand cooperation in areas such as new energy, cogeneration, seawater desalination, and green hydrogen, ammonia, and methanol, thereby contributing to global energy transition. Nabil R. Al-Khowaiter appreciated CEEC's comprehensive strength and international performance, noting that Saudi Aramco is advancing the diversification of its energy structure and will focus on investing in new energy and other related projects in the future. He stated that CEEC is a trustworthy partner and looked forward to both sides leveraging their respective advantages, innovating cooperation models, deepening multi-field collaboration, and jointly promoting global green and low-carbon development. The Political Bureau of the CPC Central Committee had previously identified hydrogen energy and related fields as new economic growth points for the "15th Five-Year Plan" period, providing direction for international energy cooperation. The current focus on cooperation in areas such as green hydrogen, ammonia, and methanol not only represents a concrete practice in response to the national layout for future industries but will also inject momentum into deepening China-Saudi Arabia energy cooperation and advancing the global energy transition. Participants in the talks included Jamal A. Al-Azizi, Director of Procurement and Supply Chain Management at Saudi Aramco Asia Company; Xin Zongyi, Vice President of CEEC International Group; and relevant officials from both sides.