Key Macroeconomic Indicators for Base Metal Prices (2017-5-25)

[SMM Imported Copper Market]LME data showed that on July 10, copper inventories were 305,200 mt, down 1,300 mt from the previous period, with cancelled warrants at 130,525 mt, up 25,725 mt, representing a ratio of cancelled warrants of 42.77%. Affected by the siphoning effect of North American copper, coupled with slightly impaired output from African smelters due to rising production costs, available imported copper supply in the market tightened periodically during July–August. Meanwhile, maintenance at domestic smelters had not fully concluded, social inventories continued destocking, and the import arbitrage window opened periodically. Supported by the above factors, premium quotations for B/L on arrival at Chinese ports continued to climb to triple digits from late July to early August. According to SMM survey, some warrants had already been cancelled from LME and shipped to the Chinese market.

[Tongling Nonferrous Metals: Expects H1 net profit up 84.13%-118.87% YoY] Tongling Nonferrous Metals announced that it expects H1 2026 net profit to be 2.65 billion to 3.15 billion yuan, up 84.13%-118.87% YoY. The company's net profit attributable to shareholders of the listed company in this reporting period increased significantly compared with the previous period, mainly due to: During the reporting period, prices of major products such as copper cathode and sulphuric acid rose significantly YoY, copper foil processing fees maintained a continuous rise, and the company seized market opportunities, further strengthened internal management, reduced costs and increased efficiency, and enhanced profitability.

[Shennan Dian A: Expects H1 2026 Net Profit of 18 Million–21 Million Yuan, Compared with a Loss of 21.7395 Million Yuan in the Prior-Year Period] Shennan Dian A announced that it expects net profit attributable to shareholders of the listed company for the period from January 1, 2026 to June 30, 2026 to be between 18 million yuan and 21 million yuan, compared with a loss of 21.7395 million yuan in the same period last year; net profit after deducting non-recurring items is expected to be between 8 million yuan and 11 million yuan, compared with a loss of 28.327 million yuan in the prior-year period. In the integrated energy services segment, Phase I of the standalone ESS project of Shennan Dian Xiwan Energy (Zhongshan) Co., Ltd. entered commercial operation in June 2025, with all performance indicators performing well, driving simultaneous increases in both revenue and profit for the segment. In the power generation and sales segment, since August 1, 2025, Guangdong Province raised the capacity tariff for gas-fired generating units, further improving the profit margin of the company’s power generation business and helping its marginal contribution achieve a YoY increase. Income from external equity investments also increased. During the reporting period, the profits of the associate enterprises in which the company holds stakes achieved growth, and the investment income recognized under the equity method increased accordingly.