Critical Materials & Supply Chain

Hua Seng Heng believes gold has returned to an uptrend after prices broke through the key resistance at $4,500-4,515 per ounce, supported by the U.S. Treasury Buyback program, which has increased the amount of long-term bond repurchases to at least $4 billion per operation, covering maturities of 10-20 years and 20-30 years, from September 9 to November 4, 2026. Meanwhile, U.S. debt has surpassed $40 trillion for the first time, a structural factor supporting gold in the long term, although it may pressure prices in the short term through bond yields. Central bank buying remains strong, with net purchases of 289 tonnes in Q2, up 62% from a year earlier. Gold ETFs saw net inflows of $3 billion in July, increasing holdings by 23 tonnes to 4,068 tonnes. Hua Seng Heng maintains its 2026 gold target at $4,900-5,000 per ounce, or Thai gold at 74,000-75,000 baht per baht-weight, while keeping an eye on the Jackson Hole meeting on August 27-29 and the September FOMC, which could affect interest rate direction and the U.S. dollar.

TTB Wealth Securities reported that the first day of Thailand Focus yesterday received a good response from institutional and foreign investors, including new participating countries such as Switzerland, New Zealand, and Israel, which is a positive signal for the Thai stock market. The government is trying to restore confidence and communicate to foreigners that Thailand is restructuring its economy and aims to become a base for future industries, while emphasizing the creation of an investment-friendly environment and enhancing competitiveness. Additionally, measures have been adjusted to support Data Center investments by requiring new investors to bear the additional costs of importing gas for electricity generation, so that investments do not burden the public, and offering the option to purchase clean energy through Direct PPA. Meanwhile, Thailand has the opportunity to benefit from Global Supply Chain Relocation, which is viewed as a positive sentiment for the power plant, industrial estate, and AI supply chain groups such as GULF, BGRIM, GPSC, AMATA, WHA, ROJNA, STECON, DELTA, KTB, and KBANK.

Data released by the National Bureau of Statistics on the 27th showed that industrial enterprises' profits in July rose 11.2% year-on-year, slowing from a 15.1% increase in June. While export-oriented companies benefited from the global AI boom, domestically oriented sectors struggled. For the January-July period, industrial profits rose 17.6% year-on-year, compared with an 18.7% increase in the first half. Leading the profit growth in the first seven months were computer, communication and other electronic equipment manufacturing, up 110%, and non-ferrous metal smelting and rolling, up 91.8%. Notably, optical fiber manufacturing surged 468.4%, optical cable manufacturing rose 62.6%, and communication system equipment manufacturing increased 55.0%. In contrast, consumer and real estate-related sectors saw sluggish profit growth due to weak domestic demand, with Kweichow Moutai, China's largest liquor maker by revenue, reporting a 2% decline in net profit for the first half.

Tongguan Copper Foil disclosed its 2026 semi-annual report on August 26. During the reporting period, it achieved revenue of 4.021 billion yuan, up 34.16% year on year; net profit attributable to the parent company was 215 million yuan, up 514.75% year on year; and net profit attributable to the parent company after deducting non-recurring items was 207 million yuan, up 754.21% year on year. The company plans to distribute a cash dividend of 0.6 yuan per 10 shares, including tax, totaling approximately 49.56 million yuan in cash dividends. The company said the profit growth was mainly due to the recovery of the copper foil industry, with high-end PCB copper foil in short supply. The company optimized its product structure, and the proportion of high-value-added products such as high-frequency and high-speed copper foil increased, with high-frequency and high-speed copper foil output already exceeding 50% of total PCB copper foil output. The industry as a whole has rebounded, and peers such as Jiayuan Technology, Nuode New Materials, Defu Technology, Zhongyi Technology, and Shengyi Technology all posted substantial first-half profit growth. A research report from Soochow Securities estimates that in 2026, the global market demand for high-end copper foil dedicated to AI servers will reach 24,000 tonnes, up 260% year on year; Goldman Sachs expects the global AI server PCB market to reach 84 billion US dollars by 2028.

Northern Copper Industry released its 2026 interim report. The company's total operating revenue was 21.693 billion yuan, up 69.33% year-on-year, and net profit attributable to the parent company was 1.396 billion yuan, up 186.61% year-on-year. Net cash inflow from operating activities was 1.075 billion yuan, an increase of 1.952 billion yuan compared with the same period last year. The company's asset-liability ratio was 62.36%, down 4.47 percentage points from the same period last year; gross margin was 12.72%, up 3.74 percentage points year-on-year; ROE was 17.66%, up 10.20 percentage points year-on-year. Diluted earnings per share were 0.73 yuan, up 186.33% year-on-year.

Banpu Public Company Limited (BANPU) has announced a major corporate repositioning through its Energy Symphonics strategy to support the growth of hyperscalers and data centers for AI. The strategy leverages the strengths of its four core business groups: natural gas business in the U.S. through its subsidiary BKV, which targets production capacity of 960 million cubic feet equivalent per day by 2026 and will install CCUS technology to capture 1.5 million tons of carbon per year by 2028; modern mining business focusing on strategic minerals such as nickel and bauxite; integrated power business combining CCGT power plants with renewable energy and energy storage systems; and future technology business investing through corporate venture capital in AI startups and net-zero solutions. This strategy aims to lay the foundation to address the energy transition and the growth of the digital world.

Bitwise CIO Matt Hougan warns that the traditional 60/40 portfolio is 100% exposed to fiat currency, as investors poured a record $7 billion into gold and Bitcoin funds in just five days. Bloomberg senior ETF analyst Eric Balchunas calls this the debasement trade, a bet on assets no government can print, which has now stolen the spotlight from AI funds. SPDR Gold Shares took in $3.4 billion in the week through August 21, while BlackRock's iShares Bitcoin Trust added over $1 billion, and the VanEck Semiconductor ETF bled $1.7 billion. The trigger is Washington's debt crossing $40 trillion and Treasury Secretary Scott Bessent's decision to double long-bond buybacks to at least $4 billion per operation starting September 9. Central banks have already shifted, with gold reaching 27% of their reserves, overtaking US Treasuries at 22%. Bitcoin trades near $79,144, up 0.55% in 24 hours, while IBIT is still down roughly 10% this year after nursing a 33% loss as recently as June.

Hochschild Mining reported record first-half results, with revenue rising 62% year over year to $844 million, adjusted EBITDA up 119% to $492 million, and EPS climbing 208% to $0.37. The company generated approximately $156 million in free cash flow and ended the period with $51 million in net cash, compared with a net debt position of $20 million at the end of 2025. Costs rose alongside metal prices, with first-half attributable all-in sustaining costs at $2,448 per gold-equivalent ounce, prompting the company to raise its full-year cost guidance to $2,380–$2,500 while maintaining production guidance. Higher royalties, profit sharing, foreign-exchange effects, and Argentine inflation contributed to the revision. At Mara Rosa in Brazil, operational improvements are nearing nameplate capacity, with 2026 production still guided at 67,000–80,000 ounces and potential output of about 80,000 ounces in 2027. Hochschild also advanced permitting for Royropata in Peru and engineering work at Monte do Carmo in Brazil, with both projects targeted to begin production by 2028.

Executives from SCG, IVL, and AOT stated that geopolitical conflicts and trade wars are reshaping global trade and investment structures, leading to a shift of production bases and supply chains to Thailand and ASEAN. SCG noted that investment funds continue to flow in, covering data centers, biotechnology, and the green economy. IVL sees the world moving from a focus on low costs to flexible supply chains, with Thailand's strengths in food, petrochemicals, and medical tourism. AOT is using an aggressive strategy to attract flights from China and Japan, boosting passenger numbers from these two countries by over 30%, and is in talks to open direct routes to North America. Dr. Kobkarn from Bangkok Bank said Thailand is benefiting from the relocation of production bases, with foreign BOI applications hitting record highs, and Thailand has risen to become the world's fifth-largest PCB producer. However, SMEs face intensified competition and must accelerate restructuring and invest in technology to maintain competitiveness.

Apple's cost narrative has shifted from tariffs to memory pricing, with the company now treating tariff refunds as a credit in its margins. In the June quarter, Apple's gross margin of 50.1% included about two percentage points of tariff refund benefit, while the September quarter guide steps down roughly 160 basis points, a decline the CFO attributes almost entirely to higher memory costs. Management notes that the DRAM market is served primarily by three suppliers, and Apple has already raised prices on iPad and Mac in response to what the CEO called a "hundred-year flood" in memory pricing. Despite supply constraints, Apple posted $109.4 billion in June quarter revenue, up 16%, with Mac sales up 29% to $10.4 billion, and guided September quarter revenue growth to 9%-11%.

Australia's former Prime Minister Scott Morrison on the 26th, at an economic security forum in Sydney, urged for further strengthening cooperation in building critical mineral supply chains through the Quad framework of Japan, the US, Australia, and India, stating that "Japan and Australia are the backbone of the Quad" and advocating for them to take the lead. He also positioned South Korea as a "key partner." Morrison pointed out that China has economically coerced trading partners, including Japan, through measures such as export restrictions on rare earths, and warned, "China will turn off the export tap to achieve its own goals. It is always ready to weaponize it." He emphasized the need to avoid risks by stabilizing supply through cooperation among like-minded countries. Furthermore, regarding Prime Minister Takaichi Sanae's stance toward China, he praised her for "speaking clearly," saying, "It is her achievement and we should support her."

Copper prices on the London Metal Exchange (LME) closed at a record high on Tuesday and continued to rise on Wednesday amid tight supply, with prices up about 16% since the start of the year. This is due to traders shipping large amounts of copper to the United States, reducing stocks in other markets, while global mines are not producing enough to meet demand. Most recently, copper prices rose 0.5% to $14,415.50 per ton, near the all-time high of $14,527.50 per ton set in January. Although the spread between spot and futures copper has narrowed from over $500 per ton, it remains at about $156 per ton, indicating that supply pressures have not yet subsided.

COMEX copper futures for December delivery closed up 10.85 cents, or 1.62%, at $6.8155 per pound on Tuesday (Aug. 25), amid concerns that the U.S. may impose import tariffs on copper, prompting traders to rush shipments into the U.S. and drawing supply away from other markets, tightening stocks outside the U.S. Meanwhile, withdrawal orders from LME warehouses added to global supply worries. The U.S. is considering tariffs on copper imports, with Trump to decide after receiving a report from the Commerce Department. If imposed, the tariff would start at 15% in 2027 and rise to 30% in 2028.

Australian rare earths major Lynas Rare Earths reported a full-year net profit after tax that surged to A$222.4 million from A$8 million in the previous period. The average selling price of rare earth oxides rose 59% to a record A$80.7 per kilogram, and demand remained robust. Minimum price guarantee contracts with Japanese and US customers helped dampen price volatility and supported the profit surge. However, the result fell short of the market's expectation of A$242.5 million, and the company's shares fell in early trading.

Sirui New Materials disclosed its 2026 semi-annual report on the evening of August 25. In the first half, it achieved operating revenue of 1.086 billion yuan, up 40.60 percent year on year, and net profit attributable to shareholders of the listed company of 96.0625 million yuan, up 28.53 percent. Among these, the optical module chip base and housing business became the brightest growth driver, with revenue of 112 million yuan, surging 387.78 percent year on year. The liquid rocket engine thrust chamber inner wall business recorded revenue of 31.1535 million yuan, up 33.77 percent. The CT and DR tube components and other businesses recorded revenue of 73.7365 million yuan, up 79.83 percent. The company's traditional medium and high voltage electrical contact materials segment posted revenue of 223 million yuan, with a domestic market share of over 60 percent for copper-chromium electrical contact materials, and it has achieved batch supply of 550 kilovolt and 80 kiloamp high anti-erosion copper-tungsten contacts. During the reporting period, research and development investment was 57.1346 million yuan, up 34.74 percent year on year, and overseas revenue was 263 million yuan, up 46.44 percent.

China Rare Nonferrous Metals released its 2026 interim report. Total operating revenue was 2.506 billion yuan, and net profit attributable to the parent company was 403 million yuan, an increase of 331 million yuan from the same period last year, marking a second consecutive year of growth and a year-on-year rise of 456.51%. Net cash flow from operating activities was negative 176 million yuan. The asset-liability ratio was 52.18%, down 0.55 percentage points from the same period last year. Gross margin was 11.75%, up 4.53 percentage points from the previous quarter, rising for nine consecutive quarters, and up 7.17 percentage points from the same period last year. Return on equity was 10.49%, ranking fourth among peers, up 8.38 percentage points from the same period last year. Diluted earnings per share were 1.20 yuan, ranking third, up 445.45% year on year. Total asset turnover was 0.33 times, and inventory turnover was 1.25 times, up 0.69% year on year. The number of shareholders was 53,500, and the top ten shareholders held 45.53% of total share capital.

Nanshan Zhishang disclosed its 2026 semi-annual report on the evening of August 26. In the first half of the year, it achieved operating revenue of 1.181 billion yuan, up 61.50% year-on-year, with net profit attributable to the parent company of 71.963 million yuan. Second-quarter revenue was 612 million yuan, and net profit attributable to the parent company was 41.1747 million yuan, up about 33.7% quarter-on-quarter. During the reporting period, the company's nylon fiber segment achieved operating revenue of 420 million yuan, a sharp year-on-year increase of 477.09%, successfully turning losses into profits and officially entering a stage of large-scale performance realization. The company has steadily released production capacity through its 80,000-ton high-performance differentiated nylon fiber project. Its PA6 product line is positioned for outdoor apparel and high-end fabrics, while its PA66 civilian yarn business benefits from scarce industry supply. In addition, the company's self-developed ultra-high-strength robotic transmission tendon ropes have entered the customer certification and small-batch industrialization stage, and it is also laying out cutting-edge products such as robotic flexible skin and intelligent tactile interaction gloves. The company stated that it will continue to amplify the strategic value of its new materials segment and build a domestically leading, internationally first-class high-performance fiber innovation industry cluster.

Lion Micro announced on the evening of August 26 that it has signed a project investment cooperation framework agreement with Nanhu District, Jiaxing City, planning to invest in the construction of a project with monthly production capacity of 200,000 12-inch lightly doped substrate wafers and 120,000 12-inch silicon epitaxial wafers. Total investment is approximately 3 billion yuan, with fixed asset investment of approximately 2.9 billion yuan. After the project reaches full production, annual output value is expected to exceed 1.3 billion yuan, with a construction period of five years. It will rely on the existing factory buildings of its controlling subsidiary Jinruihong Microelectronics Jiaxing Company, and will be implemented by another controlling subsidiary, Jinruihong Angxin Microelectronics Jiaxing Company. The company said the move is based on strong customer demand for epitaxial silicon wafers in the logic chip manufacturing sector. Its lightly doped silicon wafers already cover high value-added areas such as logic chips, high-voltage BCD processes, and PMIC power management, and 12-inch silicon epitaxial wafers have relatively high gross margins and full order books. Jinruihong Angxin is currently implementing an annual production project of 960,000 12-inch silicon epitaxial wafers. If the new project lands, it will form complete production capacity of 200,000 silicon epitaxial wafers per month. Lion Micro's monetary fund balances for 2024 and 2025 were 2.303 billion yuan and 2 billion yuan respectively, with stable operating cash flow. The project will also receive policy support such as equipment investment subsidies and loan interest discounts, with funding mainly from its own and self-raised sources. In the first half of this year, Lion Micro achieved operating revenue of 2.09 billion yuan, up 25.7 percent year on year, and net profit attributable to the parent company of 83.97 million yuan, turning losses into profits.

On the evening of August 25, OKE Precision Cutting Tools released its semi-annual report. In the first half of 2026, the company achieved operating revenue of 1.207 billion yuan, up 99.96% year on year. Net profit attributable to shareholders of the listed company was 371 million yuan, up 47,734.24% year on year. Basic earnings per share were 2.35 yuan. During the reporting period, affected by rising prices of major raw materials such as tungsten carbide, the company strengthened profitability through product price adjustments, seized the opportunity of rising demand for high-end cutting tools, and completed product structure upgrades, with sales volume of CNC cutting tools increasing year on year. At the same time, the relatively low performance base in the first half of 2025 led to a significant year-on-year increase. As of the close on August 25, OKE Precision Cutting Tools shares traded at 92.76 yuan per share, with a latest market value of 14.7 billion yuan and a cumulative gain of about 193% for the year.

Hanghua Shares released its 2026 interim report on August 26. Leveraging an integrated layout of ink materials, functional materials, and photoresist materials, the company achieved growth in both revenue and profit. During the reporting period, operating revenue was 616 million yuan, up 7.89 percent year on year. Net profit attributable to the parent company was 50 million yuan, up 6.77 percent. Net profit after deducting non-recurring items was 47 million yuan, up 15.85 percent. Net cash flow from operating activities was 68 million yuan, down 29.18 percent year on year, mainly due to increased cash payments for purchasing goods. Key progress was made in domestic substitution of photoresist color pastes. Multiple products from subsidiary Zhejiang Dike passed downstream verification and entered small-batch supply. Among functional materials, an aluminum foil treatment agent for sodium batteries received its first orders. The company's R&D investment ratio remained at 4.26 percent, but it faces risks from raw material price fluctuations and the difficulty of rapidly scaling up the photoresist business in the short term.

On August 26, the steelmaking raw material concept rose 3.12% intraday, with Dazhong Mining up 4.41%, Baodi Mining up 3.99%, Hegang Resources up 3.40%, Jinling Mining up 2.11%, and Erdos up 2.08%. In news, the World Steel Association released global crude steel production data for July 2026, with output across 70 countries at 149.2 million tonnes, down 0.3% year on year, including China's output of 76.93 million tonnes, down 3.6% year on year, while Vietnam's output rose 34.7% year on year. Changjiang Securities research noted that steel industry demand bottomed in the first half of the year, but the industry inflection point is gradually approaching, with the supply-demand relationship shifting from severe oversupply to a weak balance. Huachuang Securities research believes that raw fuel costs have returned to a reasonable range, industry chain profits are shifting from upstream to steel mills, and industry profitability has recovered from deep losses to normalized thin profits.

Jianye Chemical released its 2026 interim report on August 26. The company achieved operating revenue of 1.094 billion yuan, up 3.45 percent year on year, but net profit attributable to the parent was only 45 million yuan, down 61.75 percent year on year, mainly because a self-inspection tax repayment and late fees of 73.5208 million yuan were charged to current profit or loss. Excluding this factor, the profitability of the main business remained relatively stable. The electronic chemicals segment performed particularly well, with sales volume of electronic-grade isopropanol and ammonia water both rising more than 80 percent year on year, showing breakthroughs in customer adoption in downstream sectors such as semiconductors and photovoltaics. Sales volume of the company's main products reached 108,100 tonnes, up 7.26 percent year on year, but net operating cash flow was only 2.7855 million yuan, down 98.58 percent year on year, while accounts receivable rose 55.16 percent from the beginning of the period, so the pace of payment collection needs attention. Research and development expenses rose 71.59 percent year on year to 29.4183 million yuan, reflecting the company's continued investment in new technologies and new products.

Xinya Electronic disclosed its 2026 semi-annual report on the evening of August 26. During the reporting period, the company achieved operating revenue of 935 million yuan, up 6.24% year on year. Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 2.19 million yuan, turning from a loss of 8.93 million yuan in the same period last year. Net cash flow from operating activities was 130 million yuan, a sharp year-on-year increase of 442.95%. The company said that as emerging sectors such as consumer electronics, new energy vehicles, semiconductors, and AI servers rise rapidly, it has seized opportunities and maintained close cooperation with quality customers. In the lithium battery business, revenue from electrolyte and lithium hexafluorophosphate products reached 231 million yuan in the first half, up 117.20% year on year, with gross margin up 24.56 percentage points to 17.17%. In addition, controlling shareholder Baoxin Yangdi and its concert parties plan to increase their shareholding within six months, by no less than 5,106,976 shares and no more than 10,213,952 shares. This is their third shareholding increase since taking control. The company also launched a new stock option incentive plan, granting options to 74 directors, senior executives, and key employees, and completed the initial grant registration on August 12. Meanwhile, the company participated in the Series B+ financing of Ruisi Zhixin through a wholly owned subsidiary, positioning itself in emerging fields such as artificial intelligence.

Northern Copper Industry disclosed its 2026 interim report on the evening of August 26. In the first half, it achieved revenue of 21.693 billion yuan, up 69.33% year on year, and net profit attributable to the parent of 1.396 billion yuan, up 186.61% year on year. Second-quarter net profit was 781 million yuan, up 5.73 times year on year and up 27.0% quarter on quarter. The company said copper prices fluctuated at high levels in the first half, with domestic spot monthly copper prices ranging from 91,600 yuan per tonne to 113,900 yuan per tonne. In terms of capacity, the company's own mines process 9 million tonnes of ore per year, produce 43,000 tonnes of copper contained in self-produced copper concentrate, and have cathode copper capacity of 320,000 tonnes per year, along with an integrated industrial chain from mining to rolling and processing. On resource reserves, as of the end of 2025, the Tongkuangyu mine retained copper ore resources of 204.664 million tonnes above the 80-metre elevation, containing 1.2501 million tonnes of copper metal. The company also plans to extend downstream, increase the proportion of gold concentrate purchased, raise gold output, and boost the production share of mid-to-high-end copper strip products and treated foil within rolled copper foil.

Qide New Materials released its 2026 interim report on August 25. In the first half, it achieved operating revenue of 197 million yuan, up 10.25 percent year on year. Net profit attributable to the parent company was 15.42 million yuan, a sharp year-on-year increase of 79.20 percent. Net profit attributable to the parent company after deducting non-recurring items was 10.83 million yuan, up 24.79 percent year on year. Net cash flow from operating activities was 49.94 million yuan, up 35.46 percent year on year. The company plans to distribute a cash dividend of 0.80 yuan per 10 shares, tax included, to all shareholders. Overall gross margin reached 28.87 percent, up 11.68 percent year on year, ranking among the industry leaders. Revenue from its main engineering plastics business was 115.57 million yuan, up 24.32 percent year on year. Revenue from high-end specialty engineering plastics PPS was 32.48 million yuan, doubling year on year with growth of 100.66 percent. The company has secured designated projects for carbon fiber products and humanoid robot projects for key models of leading automotive customers, and is focusing on high-potential tracks such as new energy vehicles, high-end smart home appliances, humanoid robots, and low-altitude aircraft. It has obtained tier-one supplier qualifications from leading customers including BYD, Xiaomi, and Leapmotor.