Copper Destocking Continued, Gold Fell, Tungsten Prices Softened

Research evidence excerpt

Copper Destocking Continued, Gold Fell, Tungsten Prices Softened

changed by +0.3% and -5.8% WoW to RMB767,300/t and RMB408k/t, Yibing Xia >>

respectively. Research Analyst Merrill Lynch (Hong Kong)

+852 3508 8045

yibing.xia@bofa.comSteel: Supply-Side Concerns Drove a Modest Rebound

Ferrous markets rebounded modestly this week, with iron ore and steel products Yiming Wang >>

outperforming while coke remained relatively weak. Sentiment was supported by supply- ResearchMerrill LynchAnalyst(Hong Kong)

side concerns, including potential BHP labor strikes, renewed U.S.-Iran tensions, and +852 3508 5037

expectations for environmental-related production curbs in Tangshan. However, yiming.wang@bofa.com

underlying demand remained seasonally weak, with slower construction activity in the Peter Wang >> Research Analyst

property and infrastructure sectors weighing on steel consumption and spot market Merrill Lynch (Hong Kong)

trading. As of July 17, rebar and HRC prices rose 1.1% and 0.6% WoW to RMB3,270/t and +852 3508 7185 peter.wang2@bofa.com

RMB3,352/t, respectively, while iron ore prices increased 1.2% WoW to US$99.6/t.

Meanwhile, steel inventories declined 1.1% WoW and apparent steel consumption

improved to 8.44mnt.

See glossary at the end of the report

Cement/Glass/Paper: Demand remained weak

Cement: The average national cement price inched up 0.1% WoW to RMB310/t as of Jul

17th. The nationwide shipment ratio decreased by 2.6ppts WoW to 36.7%, while the

inventory ratio remained the same as 64.0%. In mid-July, high temperatures, typhoons

and rainfall significantly weakened cement demand, and only a few regions attempted

price hikes. Glass: National average float glass price (incl. VAT) inched down 0.4% WoW

to RMB1,103/t amid slower trading on typhoon and rainfall disruptions.