LME Base Metals Cash to 3-Month Backwardation/Contango (2017-9-18)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 15 Sep , 2026

Against the backdrop of the continued advancement of China's "dual carbon" strategy, the green transformation of the refrigeration and air conditioning industry has moved from the policy guidance phase into the deep-water zone of full implementation. Low-GWP, cost-effective R32 refrigerant is rapidly becoming the dominant mainstream choice in the household air conditioner and light commercial unitary unit markets. ChinaIOL data shows that in 2025, the penetration rate of R32 in new domestic household air conditioners exceeded 97%, while the export market penetration rate approached 70%. During the year, China's total R32 production reached 285,000 mt, up 6.9% YoY.

ChinaIOL data shows that in Q2 2026, domestic sales of air conditioning valve components reached 223.675 million units, down 2.0% YoY. Affected by persistently high inventory in the downstream air conditioning industry and the diminishing marginal effect of the national subsidy policy, channel players remained focused on destocking existing inventory, with limited willingness to actively restock, leading to a sharp decline in procurement demand for valve components. Notably, solenoid valves and thermal expansion valves achieved strong counter-trend growth this quarter, driven by rising downstream export orders, with both posting double-digit YoY growth.