Nexa Resources has announced on 19th August, the full resumption of operations at its Cerro Pasco Complex in Peru. The Atacocha and El Porvenir mines have returned to normal capacity utilization following the end of an illegal protest by a small group from the San Juan de Milpo community, which had temporarily blocked access to the site. The disruption resulted in an estimated production loss of approximately 1.2kt of zinc. Nexa expects to recover this volume within the coming month and confirmed that its full-year 2025 production guidance remains unchanged.

On August 21 (local time), the United States and the European Union released a joint statement announcing a Framework Agreement on Reciprocal, Fair, and Balanced Trade. The deal aims to deepen transatlantic economic ties, expand market access, reduce tariff barriers, and address supply chain security and non-market practices. EU Commitments: Eliminate tariffs on all U.S. industrial goods; Grant preferential market access to a wide range of U.S. agricultural and seafood products including nuts, dairy, soybean oil, pork, and processed lobster; Extend and expand the 2020 U.S.-EU tariff agreement on lobster; Procure approximately $750 billion in U.S. energy products (LNG, oil, nuclear) by 2028; Purchase at least $40 billion worth of U.S. AI chips. U.S. Commitments: Cap tariffs on EU goods at no more than 15%, including Section 232 tariffs on pharmaceuticals, semiconductors, and lumber; Reduce 232 tariffs on EU automobiles and parts upon EU legislative action; Apply MFN-only tariffs to specific EU goods (e.g., cork, aircraft, generics); Support increased EU investment in U.S. strategic sectors, projected to exceed $600 billion by 2028. Mutual Commitments: Deepen cooperation in IP protection, labor rights, food/agriculture trade, green regulations, and supply chain resilience; Coordinate on non-market economic practices by third countries; Align on export controls, investment screening, and public procurement standards.

[High-Grade NPI Imports] In July, NPI imports pulled back again. Although the price of high-grade NPI remained low in July, traders had a stockpiling mentality. However, with continuous losses, the operating rate of domestic high-grade NPI smelters remained at its lowest level in nearly nine years, with no significant rebound. From the consumption side, as the peak season had not yet arrived, domestic stainless steel production declined for four consecutive months. The demand for NPI in the domestic market was weak, and social inventory was at a high level compared to the same period. As a result, the import demand for high-grade NPI from Indonesia also decreased.

[High-Grade NPI Market] On August 21, the SMM 10-12% high-grade NPI average price was 928 yuan/mtu (ex-factory, tax included), up 0.5 yuan/mtu from the previous working day. The market sentiment factor for high-grade NPI was 2.29, up 0.01 MoM.

【SMM Cu Cons Market Dynamic】The Indonesian estimates to use 90% of its cu cons export quota granted by the Indonesian government,

【SMM Nickel Market】POSCO FUTURE M has completed pilot development of ultra-high nickel cathodes (Ni >95%) and high-voltage mid-nickel cathodes (~60% Ni). The ultra-high nickel material is designed for premium EVs and urban air mobility, enhancing energy density and driving range, while the mid-nickel version balances safety and performance for mass-market EVs. The company aims to secure mass production capability to supply automakers and battery firms worldwide.

[Shandong Copper Cathode Spot Market Continues to See Weak Supply and Demand] This week, the Shandong region continued to experience a weak supply and demand situation, with stable spot premiums and discounts, and low market activity. Specifically, downstream demand maintained off-season characteristics, with weak willingness for spot orders, leading suppliers to increase sales efforts in the Jiangsu region. According to SMM, current suppliers face no inventory pressure and have no intention of significantly lowering prices to sell, resulting in a tug-of-war state for spot premiums and discounts in Shandong under the weak supply and demand dynamics.

[Market Dynamics of Waste Lead-Acid Batteries] In light of the upcoming important "military parade" event, relevant government departments in the Beijing-Tianjin-Hebei region have issued corresponding cooperation notices. Secondary lead smelters in Henan province have received instructions from higher authorities and have set requirements for raw material transport units: starting from August 25, vehicles that meet or are below the National V emission standard will not be allowed to enter the premises. The restriction will be lifted upon further notice. Please arrange your transportation accordingly.

[Market Dynamics of Waste Lead-Acid Batteries] In anticipation of the grand military parade, the pace of waste lead-acid battery recycling in the Beijing-Tianjin-Hebei region has temporarily slowed down. Smelters in North China report a decrease in raw material supply. After the conclusion of the event, it is expected that the recycling work will gradually return to normal.

[Enamelled Wire Operating Rate Continues to Pull Back] This week, the operating rate of enamelled wire machines declined 0.27 percentage points MoM, reaching 78.13%; new orders also fell 0.13 percentage points. Currently, industry orders for enamelled wire have not shown any significant improvement, and under the influence of the off-season adjustment cycle, the operating rate is expected to remain at a low level.