Group 1 - Copper prices reached their highest level in over a month, supported by positive manufacturing data from China and a weaker dollar [1][9] - Three-month copper on the London Metal Exchange (LME) was down 0.2% at $9,886 per metric ton after hitting $9,947, the highest since July 24 [1] - LME copper has increased by 12% this year, rebounding from $8,105 in early April, which was the lowest in over 16 months [1][6] Group 2 - A private sector survey indicated that China's factory activity in August expanded at the fastest pace in five months, driven by rising new orders [2] - The overall macro and cyclical conditions in China are improving, which is expected to positively impact final demand [2] - Chinese equities have also shown strong performance, reflecting broader market positivity [4] Group 3 - Concerns about US tariffs are dampening factory activity in other parts of Asia, which may affect metals markets [5] - The dollar index fell to a five-week low, influencing commodity prices for buyers using other currencies [7] - A weaker dollar makes commodities priced in US currency cheaper for international buyers, impacting overall demand [8]

Summary of Key Points from J.P. Morgan's Base Metals Supply & Demand Tracker Industry Overview - The report focuses on the base metals industry, particularly copper, aluminum, zinc, and nickel, with a specific emphasis on the Chinese market dynamics and global supply-demand trends. Core Insights and Arguments Copper - Signs of weaker demand are emerging for the second half of 2025, with a contraction in implied Chinese copper demand growth of -1.4% year-over-year (YoY) in July compared to +4.2% in June [3][4] - Chinese copper inventory levels remain below the 5-year average, with global visible copper inventory reaching nearly 600,000 metric tons (kmt) in August [3][4] - Smelter production in China remains resilient, with refined copper production up by 14% YoY in July, despite weak downstream purchases [3][4] Aluminum - Weaker demand in China is driving an upward trend in visible aluminum stocks, with apparent consumption down by -2% YoY in July [4] - Chinese refined aluminum production increased by 0.6% YoY to 43.8 million tons (Mt) in July, supported by increased smelter capacity [4] Zinc - There are no signs of improving end-use demand in China, with refined zinc output increasing by 23% YoY in July due to strong concentrate imports [5] - Demand from galvanizers remains subdued, impacting spot premiums negatively [5] Nickel - China's refined nickel imports surged to 38,000 tons (kmt) in July, the highest since December 2017, while global visible inventory reached approximately 320 kmt [6] - Stainless steel demand is reportedly starting to recover slowly, which may influence future nickel demand [6] Additional Important Insights - The report highlights a significant decline in China's monthly property completions, which fell by -30% YoY in July, contributing to the slowdown in copper demand [3] - The automotive sector in China remains resilient, with passenger vehicle production increasing by 13% YoY through July, driven by new energy vehicles (NEVs) [3] - The report notes a contraction in grid investment growth in China, which declined by -1% YoY in July, although year-to-date investment is still up by 12.5% [3] Conclusion - The base metals industry is facing a potential slowdown in demand, particularly in China, with various factors such as property market performance and industrial production influencing the outlook for copper, aluminum, zinc, and nickel. The data suggests a cautious approach to investment in these sectors as the market adjusts to changing demand dynamics.

Company Overview - Giga Metals Corporation is focused on Nickel, Cobalt, and Copper, with its core asset being the Turnagain Project located in northern British Columbia, which contains significant undeveloped sulphide nickel and cobalt resources [4] - The Turnagain Project is jointly owned by Giga Metals Corporation and Mitsubishi Corporation, with a Pre-Feasibility Study released in October 2023 [4][7] Recent Developments - CEO Scott Lendrum and President Mark Jarvis will present at the Clean Energy Metals Virtual Investor Conference on August 28, 2025, at 12:00 PM ET, allowing real-time interaction with investors [1] - The company is available for one-on-one meetings from August 28-29 and September 1-3, 2025 [1] Strategic Pathways - The leadership team is focusing on two strategic pathways to drive shareholder value: the development path for the Turnagain Nickel-Cobalt Project and an exploration path that offers significant upside potential [7] - Approximately 80% of the land package remains unexplored, with recent work identifying potential copper exploration targets [7] - A work program is planned for Fall 2025, which will include geophysics related to these targets [7]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The intraday trend of Shanghai Nickel was oscillating strongly, mainly influenced by the broader market. The expectation of interest rate cuts in September has improved at the macro - level, and there is no obvious change in the fundamental logic. The second - phase benchmark price in Indonesia in August was slightly adjusted downwards. There was rainfall affecting shipments in some mining areas in the Philippines this week, and there is an expectation of rainfall in September. Nickel iron remained strong intraday, with supply price support continuing. The salt factories in the new energy chain have been relatively strong recently, and the MHP market is in short supply. Stainless steel also showed a strong trend intraday, with spot prices rising. Attention should be paid to the sentiment trend as it approaches the peak demand season in September and October [4]. - There are both positive and negative factors in the market. Positive factors include the potential revision of the HPM formula by APNI in Indonesia, the shortening of the nickel ore quota license period in Indonesia, the potential increase in stainless - steel demand from the Yarlung Zangbo River hydropower station construction, and the increasing expectation of interest rate cuts in September. Negative factors include stainless steel entering the traditional off - season with slow inventory reduction, high pure nickel inventory, seasonal increase in nickel ore inventory, Sino - US tariff disturbances, and South Korea's potential anti - dumping duties on Chinese hot - rolled products [6]. 3. Summary by Related Catalogs 3.1 Price and Volatility Forecast - **Shanghai Nickel**: The price range is predicted to be 118,000 - 126,000 yuan/ton, with a current 20 - day rolling volatility of 15.17% and a historical percentile of 3.2% [2]. - **Stainless Steel**: The price range is predicted to be 12,500 - 13,100 yuan/ton, with a current 20 - day rolling volatility of 9.27% and a historical percentile of 1.8% [2]. 3.2 Risk Management Strategies - **Shanghai Nickel** - **Inventory Management**: When facing the risk of product sales price decline and inventory impairment, strategies include selling Shanghai Nickel futures (NI main contract) with a 60% hedging ratio and selling call options (over - the - counter/on - exchange options) with a 50% hedging ratio [2]. - **Procurement Management**: When worried about raw material price increases for future production procurement, strategies include buying Shanghai Nickel forward contracts (far - month NI contracts) according to the production plan, selling put options (on - exchange/over - the - counter options), and buying out - of - the - money call options (on - exchange/over - the - counter options) [2]. - **Stainless Steel** - **Inventory Management**: When facing the risk of product sales price decline and inventory impairment, strategies include selling stainless - steel futures (SS main contract) with a 60% hedging ratio and selling call options (over - the - counter/on - exchange options) with a 50% hedging ratio [3]. - **Procurement Management**: When worried about raw material price increases for future production procurement, strategies include buying stainless - steel forward contracts (far - month SS contracts) according to the production plan, selling put options (on - exchange/over - the - counter options), and buying out - of - the - money call options (on - exchange/over - the - counter options) [3]. 3.3 Market Data - **Nickel Disk Data** - The latest price of Shanghai Nickel main contract is 120,310 yuan/ton, with a 0% change. The prices of Shanghai Nickel continuous contracts 1, 2, and 3 increased by 0.59%, 0.54%, and 0.54% respectively. The LME Nickel 3M price is 14,975 US dollars/ton, up 0.61%. The trading volume is 119,179 lots, and the open interest is 110,337 lots. The warehouse receipt volume decreased by 1.15% to 22,292 tons, and the basis of the main contract decreased by 34.8% to - 1,550 yuan/ton [6]. - **Stainless - Steel Disk Data** - The latest price of the stainless - steel main contract is 12,880 yuan/ton, with a 0% change. The prices of stainless - steel continuous contracts 1, 2, and 3 increased by 1.02%, 0.90%, and 0.89% respectively. The trading volume is 156,339 lots, and the open interest is 141,999 lots. The warehouse receipt volume decreased by 0.23% to 101,687 tons, and the basis of the main contract decreased by 18.06% to 590 yuan/ton [7]. - **Nickel Industry Inventory** - Domestic social inventory of nickel is 40,872 tons, a decrease of 1,019 tons. LME nickel inventory is 209,748 tons, an increase of 150 tons. Stainless - steel social inventory is 933.4 tons, a decrease of 0.2 tons. Nickel pig iron inventory is 33,111 tons, a decrease of 304 tons [8].

Trade & Tariffs - US metal dealers are rerouting scrap copper shipments destined for China through countries like Canada, Mexico, and Vietnam [1] - This rerouting is a strategy to circumvent the 10% tariffs imposed by China on US scrap copper [1]

Summary of Key Points from the Conference Call Industry Overview - **Global Macro Outlook**: The conference call discusses the macroeconomic outlook, focusing on US rates, international rates, commodities, currencies, and emerging markets [3][4][5][6][7]. Core Insights and Arguments US Rates - **Investment Strategy**: Maintain 5s20s steepeners due to diverse views across the FOMC, which keeps volatility and term premium elevated. Tactical shorts in 3-year Treasuries are recommended as near-term risks skew towards mean reversion [3][12][15]. - **Interest Rate Forecast**: The first Fed cut is projected for September 2025, with 2-year and 10-year Treasury yields expected to reach 3.50% and 4.20% by year-end 2025 [11]. International Rates - **Market Reactions**: Following a dovish surprise from the US labor market report, developed market (DM) rates have sold off broadly, with curves steepening amid low August liquidity [4][38]. Commodities - **Oil and Natural Gas**: The Trump administration has limited leverage over Russia without risking a spike in oil prices. The enactment of the OBBA is expected to decrease overall renewable energy capacity additions, but may expedite wind and solar projects that are advanced enough [8][92]. - **Copper Prices**: A bearish outlook for copper prices is anticipated, with expectations of prices dropping towards $9,000/mt due to unwinding Chinese demand and front-loading in US imports [95]. Currencies - **USD Outlook**: A bearish stance on the USD is maintained, with expectations that US data needs to slow further or Fed independence concerns need to intensify for significant USD weakness to occur. A potential Russia/Ukraine ceasefire could also act as a catalyst for USD weakness [57][59][64]. - **CNY Forecast**: The USD/CNY forecast has been revised to 7.10 for Q4 and 7.05 for 2Q'26, reflecting lower US rates and better-than-expected local equity returns [81]. Emerging Markets - **Investment Positioning**: The strategy has shifted to overweight (OW) emerging market (EM) FX and local rates, while remaining underweight (UW) EM sovereign credit. The expectation is for renewed USD weakness to provide opportunities for EM currencies to appreciate [108][109]. Additional Important Insights - **Treasury Funding**: The US Treasury is well-funded through FY25, but a significant funding gap is expected to emerge in FY26, leading to anticipated coupon size increases starting in May 2026 [21][24]. - **Investor Positioning in Agriculture**: Aggregate investor positioning in agriculture markets is rising from seasonal lows but remains vulnerable to short covering [96][100]. - **Foreign Demand for Treasuries**: Demand from foreign investors remains weak, with expectations of a shift towards more price-sensitive investors, which may keep long-term yields anchored at higher levels [31][33]. This summary encapsulates the key points discussed in the conference call, providing insights into the macroeconomic landscape, investment strategies, and market forecasts across various sectors.

Summary of J.P. Morgan Commodity Market Positioning & Flows Industry Overview - The report focuses on the global commodities market, highlighting recent trends in commodity flows and investor positioning as of August 4, 2025 Key Points Global Commodity Market Trends - The estimated value of global commodity market open interest decreased by **3.4% week-over-week (WOW)**, amounting to a decline of **$52 billion**, bringing the total to **$1.48 trillion** [3][9][12] - This decline marks the largest drop in five weeks, influenced by significant outflows in metals and energy markets, particularly crude oil, copper, gold, and natural gas [3][10] Investor Positioning - The net investor position across global commodity futures markets fell by **6.9% WOW**, totaling **$137 billion** [3][15] - Precious metals saw a decrease in net length by **$13.4 billion**, while base metals increased by **15% WOW** to **$24.5 billion** [3][15] - Agricultural markets experienced a **15% decrease** in net positioning, while energy markets saw a **43% increase** in net length [3][15] Commodity-Specific Insights - **Energy Markets**: Open interest value decreased by **$12 billion WOW** to **$642 billion**, primarily due to outflows from crude oil and petroleum products [5][9] - **Precious Metals**: Open interest dropped by **4% WOW** to **$245 billion**, with significant outflows in gold and silver [5][27] - **Base Metals**: Open interest plunged by **9% WOW** to **$169 billion**, heavily impacted by copper market outflows [5][26] - **Agricultural Markets**: Open interest decreased by **2% WOW** to **$321 billion**, driven by weaker prices in soybean and cotton markets [5][29] Tariff and Policy Impacts - The U.S. Administration's recent tariff policies, including a **50% tariff on semi-finished copper products**, have contributed to market volatility and price declines [3][5] - The anticipated continuation of a **90-day pause on U.S.-China tariffs** is expected to influence market sentiment positively [3] Inventory Levels - The Global Commodities Inventory Monitor (GCIM) indicated a slight decline in inventory availability to **59.13 days-of-use**, the lowest for July in the series [3][4][55] - Ex-China inventory availability increased to **50.7 days-of-use**, reflecting rising visible inventories of copper and aluminum [3][4] Price Momentum - Price momentum across commodities was mixed, with sharp decreases in base metals and agricultural commodities, while some energy prices showed resilience [6][10] Market Sentiment - The overall sentiment in the commodities market is cautious, with heightened uncertainty surrounding U.S.-China trade relations and global economic growth [6][10] Additional Insights - The report emphasizes the importance of monitoring macroeconomic indicators and geopolitical developments, as they significantly impact commodity flows and investor behavior [3][6][10] This summary encapsulates the critical insights from the J.P. Morgan report on commodity market positioning and flows, providing a comprehensive overview of current trends and investor sentiment in the commodities sector.

Summary of J.P. Morgan Base Metals Supply & Demand Tracker Industry Overview - The report focuses on the base metals market, particularly copper, aluminum, zinc, and nickel, with a significant emphasis on Chinese demand and supply dynamics [1][7][8][11]. Key Points Chinese Copper Demand - Chinese copper demand has shown signs of deceleration, with a consumption-weighted end-use indicator reflecting approximately 4% year-over-year (yoy) growth in June, down from higher levels in May [9]. - The apparent consumption of copper in China increased by 12% in the first half of 2025, indicating a strong start to the year despite the recent slowdown [9]. - Inventory levels for copper remain low but stable, with refined copper production in June reaching 1.14 million tons, a 13% increase yoy [9]. Solar Power Capacity - Chinese solar installations peaked in May with 92.4 GW added, but fell sharply to 14.4 GW in June, a 36% yoy decline, due to a policy shift from fixed feed-in tariffs to market-driven pricing [5][9]. - The total installations for the first half of 2025 reached 212 GW, with a revised forecast for 2025 now estimating 270-300 GW, suggesting a potential 50% contraction in the second half of the year [5][9]. Aluminum Market - China's refined aluminum production increased by approximately 1% yoy to 43.7 million tons through June [8]. - Exports of unwrought aluminum and products fell by 7% in the first half of 2025 following the removal of the export tax rebate [8]. - Apparent demand in China for aluminum grew by 1.6% yoy, although growth has been decelerating since March [8]. Zinc and Nickel Markets - Chinese imports of zinc concentrate reached 2.5 million tons in the first half of 2025, up nearly 50% yoy, while smelter output increased by 7% yoy in June [10]. - Nickel remains in oversupply, with global cathode inventory covering 30 days of demand. Refined nickel exports from China were 95,000 tons in the first half of 2025, a 120% increase yoy [11]. Automotive Sector - Chinese passenger vehicle production increased by 14% year-to-date through June, with new energy vehicle (NEV) output growing by 40% yoy [6][9]. - The automotive sector continues to support metals demand, particularly in light of anti-involution initiatives [9]. Construction and Property Sector - Monthly property completions improved, with a yoy contraction narrowing to -2% in June from -19% in May, indicating a potential recovery in the construction sector [10]. - Year-to-date completions remain down 15% yoy through the first half of 2025 [10]. Policy and Economic Outlook - The July Politburo meeting indicated a policy shift towards structural rebalancing, focusing on boosting consumption without immediate additional easing measures [10]. - The overall economic environment remains cautious, with various sectors showing signs of slowing growth [10]. Additional Insights - The report highlights the importance of monitoring trade flows, inventory levels, and utilization rates to gauge the fundamentals of the base metals market [1]. - The impact of global economic conditions and policy changes in China will continue to influence demand and supply dynamics in the base metals sector [1][10].

Market Impact - US treated copper experienced a 22% plunge in two days following President Trump's announcement of 50% tariffs on copper imports [1] - Copper futures in New York decreased by more than 20% after the tariff announcement [3] - The copper market experienced volatility and surprises throughout the year [1] Tariff Details and Expectations - The market initially expected a 25% tariff on copper imports [2] - Trump mentioned a 50% tariff earlier in the month, but details were scarce [2] - The proclamation excluded refined copper, which is heavily traded internationally, surprising the market [3] - Uncertainty existed regarding product coverage and exemptions until the proclamation was released [2]

Summary of Key Points from the Conference Call Industry Overview - The conference call focused on the **Basic Materials** sector in the **Asia-Pacific** region, particularly in **cement, steel, metals, and coal** industries [1] - There is a noted trend of **supply rationalization** and **demand boost**, although the near-term impact is expected to be limited [1] Core Insights and Arguments Supply Rationalization - The **Ministry of Industry and Information Technology (MIIT)** announced plans to stabilize growth in **10 key industries**, expanding to include metals and petrochemicals [1] - **Cement** sector capacity is to be cut to **1.6 billion tons (bnt)** from **2.1 bnt**, with a flexibility of 10% [2] - **Steel** production is expected to see a **3-5% supply cut** in FY25, with state-owned enterprises (SOEs) likely to cut **8-10%** from July to December [2][16] - **Lithium** production is facing disruptions, with a subsidiary of Zangge Mining ordered to suspend operations [36][37] Demand Boost - The announcement of a **RMB1.2 trillion** investment in the **Tibet mega-dam** is expected to positively impact market sentiment and drive demand for cement and steel [1][49] - The cement demand from the mega-dam project is projected at **30-40 million tons**, which is significant for local demand in Tibet [50] - The steel consumption from the mega-dam is estimated at **8-9 million tons** over the construction period [51] Price Trends - The average national cement price decreased by **0.5% week-over-week (WoW)** to **RMB330/ton** [11] - Steel margins are improving, with average rebar spot margin at **RMB99/ton**, compared to a loss of **RMB82/ton** in FY24 [16] - The price of imported iron ore increased by **2.3% WoW** to **US$99/ton** [23] Other Important Insights - The **solar sector** is undergoing significant changes, with a **30% production capacity cut** in solar glass and discussions of potential industry consolidation [26][30] - The **high-quality development action plans** for copper, aluminum, and gold industries aim to enhance resource assurance and technological innovation [32][33][34][35] - The **National Energy Administration (NEA)** is verifying coal production in eight provinces, but the impact on supply is expected to be limited [3][41][43] Conclusion - The **Basic Materials** sector is experiencing a shift towards supply rationalization and demand stimulation, particularly influenced by government initiatives and large infrastructure projects. However, the immediate effects on prices and production levels may take time to materialize, and ongoing disruptions in lithium and coal production could pose risks to supply stability [1][36][41]