Macroeconomics

1. [Monetary Policy] The central bank released the Report on Monetary Policy Implementation in China for the second quarter of 2026. The report proposes the comprehensive use and timely adjustment of monetary policy tools to maintain ample liquidity and relatively loose social financing conditions; the timely planning and introduction of practical, effective incremental policies to intensify counter-cyclical adjustments; and the expansion of the central bank's macro-prudential and financial stability functions, alongside the innovation of financial instruments, to safeguard the stable operation of financial markets.

2. [Reverse Repo] To better align with the banking system's short-term liquidity needs, the People's Bank of China will conduct overnight reverse repo operations on August 14 and from August 17 to August 19. These operations will utilize fixed-rate, quantity-based tendering, with a daily volume not exceeding 600 billion RMB.

3. [US CPI] Data released by the US Department of Labor shows that the year-on-year growth rate of the US non-seasonally adjusted CPI slowed to 3.4% in July, while the core CPI growth rate slowed to 2.5%. On a month-on-month basis, the seasonally adjusted CPI rose by 0.1% and core CPI by 0.2%; all figures met market expectations. Following the data release, market expectations regarding a Federal Reserve rate hike in September remained generally stable.

Non-ferrous Metals

1. [Aluminum] Spot prices for aluminum ingots (AL99.70) rose on August 12. Regional quotes were as follows: East China market quoted at 24,370 RMB/ton (up 270 RMB/ton from the previous trading day); South China market at 24,490 RMB/ton (up 240 RMB/ton); Southwest China market at 24,370 RMB/ton (up 250 RMB/ton); and Central China market at 24,250 RMB/ton (up 260 RMB/ton).

2. [Aluminum] Australia announced on Thursday that it would provide A$2.5 billion (approximately US$1.76 billion) in funding to help Tomago—the country's largest aluminum smelter, owned by global mining giant Rio Tinto—continue operations beyond 2028 and secure a more cost-effective and reliable power supply.

3. [Copper] News from August 12: Freeport Indonesia stated on Wednesday that the smelter operated by its subsidiary in Gresik had suspended operations starting August 8 to undergo furnace repairs. Tony Wenas, the company's CEO, indicated that the repair work is expected to be completed within the current quarter.

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