SMM News: Following our previous analysis of the transportation and wind power sectors, this installment shifts focus to the critical demand drivers in the consumer and construction domains: White Goods , Consumer Electronics , and Real Estate-related applications (Elevators and Power Tools). While these sectors individually consume less magnetic material per unit compared to New Energy Vehicles (NEVs), their sheer aggregate volume makes them indispensable pillars of the Neodymium-Praseodymium (Pr-Nd) market. However, data from early 2026 reveals a troubling trend of stagnation and structural contraction across these traditional strongholds. I. White Goods: The Dual Pressure of Production Slumps and Material Substitution In the white goods sector, Neodymium-Iron-Boron (NdFeB) magnets are primarily utilized in two key applications: compressors for inverter air conditioners and motors for drum and impeller washing machines . 1. Air Conditioners: A Sharp Contraction in Output and Dosage According to data from the National Bureau of Statistics (NBS), China’s cumulative air conditioner production for January-February 2026 stood at 40.118 million units , a staggering 35% year-on-year (YoY) decline compared to the 61.921 million units produced in the same period of 2025. (Reason: This drastic drop is attributed to a combination of factors: firstly, an unusually mild winter across major consumption regions significantly dampened heating demand, leading to a destocking cycle among distributors. Secondly, the real estate sector’s continued downturn has severely curtailed new housing completions, directly reducing the installation of centralized and split AC systems. Lastly, high inventory levels carried over from 2025 forced manufacturers to aggressively cut production schedules in Q1 2026 to avoid capital lock-up.) Looking at the full year, SMM forecasts a marginal growth of 0.96% for 2026, with total annual production projected at 271.095 million units . (Reason: The near-flat growth outlook reflects a mature market saturation where replacement demand, rather than new installations, drives volume. While export markets offer some resilience against domestic weakness, rising trade barriers and logistical costs in key regions like Europe and North America are expected to cap significant expansion.) Applying SMM’s calculation model: Inverter Penetration: 99% NdFeB Motor Penetration: 92% Specific Consumption: Assumed at 100g/unit for 2026. Based on these parameters, the total NdFeB consumption for the air conditioner sector in 2026 is estimated at 24,691 tons , representing a 23% decrease from the 29,163 tons consumed in 2025. The core driver of this decline is twofold: first, the persistently high prices of Pr-Nd since the second half of 2025 have accelerated the industry’s cost-reduction initiatives. Second, there is a clear technological shift towards minimizing rare earth usage. The average single-unit dosage has dropped from 120g/unit in 2025 to 100g/unit in 2026 , as manufacturers optimize motor designs and, in some lower-end models, substitute with ferrite magnets or induction motor technologies where efficiency standards allow. 2. Washing Machines: A Slow Erosion of Demand For January-February 2026, China’s cumulative washing machine production was 18.58 million units , a slight 0.3% YoY decline from the 18.51 million units in the same period of 2025. (Reason: The stability in production volumes masks underlying weakness. The slight dip is primarily due to weak consumer confidence impacting discretionary spending on home appliance upgrades. Furthermore, the export market for washing machines has faced headwinds from sluggish global economic growth and intensified competition from Southeast Asian manufacturing hubs, offsetting modest domestic recovery efforts.) SMM projects a full-year growth rate of 3.1% for 2026. (Reason: This modest recovery is underpinned by government-led "trade-in" subsidy policies aimed at boosting domestic consumption of energy-efficient appliances. Additionally, product innovation in the high-end segment, such as washer-dryer combos and smart features, is expected to stimulate some replacement demand, though the overall ceiling remains low.) Demand Calculation Logic: Drum Washer Penetration: 63% (High-end, 98% use NdFeB) Impeller Washer Penetration: 28% (Mid-range, 50% use NdFeB) Specific Consumption: 290g/unit for drum washers; 240g/unit for impeller washers. Under this model, the total NdFeB demand for washing machines in 2026 is estimated at 27,204.52 tons , a 0.2% decrease from 27,262 tons in 2025. The sector is experiencing a slow but steady erosion of demand. While high-end drum washers rely heavily on efficient NdFeB motors to meet stringent energy labels, the volatility of rare earth prices is prompting manufacturers to cautiously explore alternative motor designs or reduce magnet grades in non-critical applications. Consequently, the industry has adopted a strategy of gradual reduction rather than abrupt substitution, balancing performance requirements with cost control. Outlook: The trajectory for white goods in 2026 is undeniably pessimistic. Both production volumes and technical intensity (dosage per unit) are trending downward, creating a double drag on Pr-Nd demand. II. Consumer Electronics: Volume Resilience vs. Intensity Decline The consumer electronics sector, modeled by SMM, comprises four main segments: Mobile Phones , Tablets , Desktops/Laptops , and Smartwatches . These devices utilize NdFeB primarily for acoustic components (speakers/receivers) and haptic feedback motors, with emerging uses in magnetic charging interfaces. The specific consumption is generally low, ranging from 2-5g/unit , except for desktops which average 15g/unit . Market Performance (Jan-Feb 2026): Mobile Phones: 220 million units (+6.8% YoY). Micro-computer Equipment: 41.956 million units (-31% YoY). Breakdown: 21% Tablets, 27% Desktops, 52% Laptops. Smartwatches: 8.196 million units (+7.8% YoY). (Reason: The divergence in performance is stark. Mobile phone growth is driven by the global rollout of AI-enabled handsets and the replacement cycle for 5G devices, particularly in emerging markets. Conversely, the sharp collapse in micro-computer equipment reflects the post-pandemic normalization of demand; the massive stockpiling of devices during 2020-2022 has led to a prolonged digestion phase. Additionally, extended device lifespans due to improved hardware durability have further suppressed replacement rates for PCs and tablets.) 2026 Full-Year Forecast: SMM anticipates a 1% growth for mobile phones and micro-computers combined, and a 5% growth for smartwatches. (Reason: The muted outlook for computing devices stems from persistent macroeconomic uncertainty and corporate IT budget tightening. For smartwatches, growth is fueled by increasing health-monitoring capabilities and deeper ecosystem integration with smartphones. However, the entire sector faces a cloud of uncertainty due to escalating geopolitical tensions affecting supply chains and rising memory chip prices, which may force OEMs to revise production targets downward later in the year.) Demand Estimation: Mobile Phones: 3,109.8 tons Micro-computers: 2,018.9 tons Smartwatches: 125.06 tons Total 2026 Demand: 5,253.76 tons , a 3% decline from 5,421.19 tons in 2025. The primary driver for this decline is the continuous, albeit slow, reduction in specific consumption. As miniaturization advances and alternative magnetic materials improve, the amount of NdFeB required per device is shrinking. Despite the relatively low single-unit dosage, the massive scale of the consumer electronics industry ensures it remains a significant consumer of NdFeB. Moreover, this sector is characterized by highly standardized supply chains, where major OEMs maintain binding agreements with certified magnet suppliers, making demand relatively stable but resistant to price-driven spikes. III. Real Estate Related: Elevators and Power Tools The final segment covers industries tightly coupled with the real estate cycle: Elevators and Handheld Power Tools . 1. Elevators: Policy Support vs. Structural Headwinds In January-February 2026, elevator production reached 150,000 units , a 7.1% YoY increase . (Reason: This short-term surge is largely attributable to the acceleration of projects that were delayed in late 2025, as developers rushed to meet pre-delivery deadlines before stricter regulatory inspections took effect. Additionally, government mandates for retrofitting old residential communities with elevators in urban renewal zones provided a temporary boost to order books.) However, SMM forecasts a full-year contraction of -3% for 2026. (Reason: The long-term outlook is grim due to the fundamental slowdown in new residential construction starts, which remain at multi-year lows. The debt crisis plaguing major property developers continues to stall new project launches, directly impacting the demand for new elevator installations. While the retrofit market offers some support, it is insufficient to offset the collapse in new building commissions.) Calculation: Energy-saving Elevator Penetration: 90% Specific Consumption: 6 kg/unit (for energy-saving models). Total 2026 Demand: 7,222.6 tons , a 1.3% increase from 7,125.3 tons in 2025. (Reason for Growth: The slight increase in total tonnage despite falling production volumes is entirely driven by the rising penetration of energy-saving elevators. Stricter national energy efficiency standards (GB standards) are forcing manufacturers to adopt permanent magnet synchronous motors (PMSM) over traditional asynchronous motors, thereby increasing the average NdFeB dosage per unit even as the total number of units declines.) 2. Handheld Power Tools: A Direct Casualty of Property Slump Production of handheld power tools in Jan-Feb 2026 was 29.566 million units , down 0.24% YoY . SMM projects a -3% decline for the full year 2026. (Reason: The downturn is inextricably linked to the stagnation in the global and domestic real estate markets. Reduced renovation activities and a slowdown in infrastructure projects have dampened demand for professional-grade tools. Furthermore, high inventory levels in distribution channels across North America and Europe, resulting from over-ordering in 2024, have led to a prolonged period of destocking.) Definition & Scope: According to the National Bureau of Statistics, handheld electric tools refer to portable motor-driven tools operated by hand, including electric drills, grinders, sanders, saws, and screwdrivers . These products are highly sensitive to housing turnover and renovation rates. Demand Calculation: NdFeB Penetration: 60% Specific Consumption: 80g/unit Total 2026 Demand: 9,134 tons , a sharp 13.4% drop from 10,548 tons in 2025. The significant contraction in this sector underscores the deep correlation between the property market and industrial metal demand. As the real estate sector remains in a prolonged adjustment phase, the downstream demand for power tools—and consequently NdFeB—faces sustained pressure. Conclusion The analysis of white goods, consumer electronics, and real estate-related sectors paints a picture of structural weakness for 2026. While niche policy drivers (like energy-saving elevator mandates) provide isolated pockets of growth, the overarching trends are defined by production saturation, inventory destocking, and aggressive material substitution . The combined effect of lower production volumes and reduced single-unit dosages creates a formidable headwind for Pr-Nd prices. In the final installment of this series, we will pivot to the future: examining the burgeoning demand from Low-Altitude Economy (eVTOLs), Robotics (Industrial and Service), and the relentless expansion of Electric Two-Wheelers . These emerging sectors may hold the key to offsetting the declines observed in traditional industries and reshaping the long-term demand curve for rare earth magnets.

[Price Review] During the week, silver prices remained in the doldrums. In China, the Ag (T+D) contract on the Shanghai Gold Exchange broke below the support level of 18,000 yuan/kg, while LBMA silver prices kept probing lower after falling below $75/oz. From a macro perspective, escalating geopolitical conflict in the Middle East pushed oil prices to repeated new highs, while intensifying inflation concerns significantly cooled expectations for US Fed interest rate cuts and delayed the timing of the first cut to year-end. The simultaneous strength in the US dollar index and US Treasury yields became the core factors suppressing silver prices. On Wednesday local time, the US Fed announced that it would keep interest rates unchanged. In the statement released that day, it noted that the impact of the Middle East situation on the US economy remained uncertain and that uncertainty surrounding the US economic outlook was still elevated. In addition, speculative demand and ETF holdings continued to decline, and market sentiment kept cooling. As for the gold/silver ratio, because silver posted a deeper decline, the ratio continued to rise. As of March 18, the LBMA gold/silver ratio had climbed to 63, a recent high. [Important Data] Bullish: US preliminary March one-year inflation expectations came in at 3.4%, above expectations and unchanged from the previous reading Bearish: US API crude oil inventory for the week ended March 13 increased by 6.556 million barrels, above expectations and the previous reading US EIA crude oil inventory for the week ended March 13 increased by 6.156 million barrels, above expectations and the previous reading Data and macro releases to watch next week include: Continued hawkishness from the US Fed, the ECB rate decision, US inflation/employment data, COMEX silver delivery, together with the Boao Forum and geopolitical risks On March 19, the FOMC kept rates unchanged at 3.50%–3.75%, raised its 2026 PCE forecast to 2.7%, and expectations for US Fed interest rate cuts cooled sharply. US-Iran Situation: As of March 19, the military strikes by the US and Israel against Iran had entered their 19th day, with high-intensity confrontation, no sign of a ceasefire, and the conflict spreading to multiple Gulf countries. In terms of the current impact on precious metals, financial suppression outweighed safe-haven demand. Against the backdrop of surging inflation expectations, the US dollar and US Treasury yields continued to rise, the timing of US Fed interest rate cuts was delayed, and silver prices were suppressed. [Price Forecast] Silver prices are expected to maintain a fluctuating trend in the doldrums amid the interplay between macro disruptions and fundamentals. On the macro front, caution is still warranted over the risk of continued US dollar strength and heightened volatility from any further escalation in the US-Iran conflict. On the fundamentals side, as PV export rush orders gradually approached their end, rigid demand for raw material procurement by silver nitrate enterprises declined in late March, weakening support from industrial demand. In China's spot market, as investment demand and rigid industrial demand softened, coupled with replenishment from imported silver ingots, circulating supply of silver ingots in the spot market became ample, and suppliers generally lowered spot premium quotes to facilitate transactions. The abnormally high spot premiums in China's spot market will come to an end. At the same time, profitability on imported silver ingots will also decline sharply, and spot premium quotes in actual spot silver ingot transactions are expected to return to rational levels.

Among precious and rare metals, osmium is a niche yet irreplaceable material, overshadowed by gold, silver, platinum and palladium but critical for high-end industry and scientific research thanks to its unique physical and chemical properties. This report breaks down osmium’s core attributes, supply, applications and market traits to unveil the “densest natural metal”. I. Basic Profile: A Distinct Platinum Group Metal Osmium (Os, atomic number 76) is a Group Ⅷ transition metal and part of the platinum group metals (PGMs), extremely scarce in nature. It has no independent deposits, only extracted and purified via platinum ore smelting alongside platinum, iridium, ruthenium, rhodium and palladium, ruling out large-scale standalone mining. Its standout properties: unmatched density (22.59g/cm³ at 20℃, higher than gold and platinum), exceptional heat resistance (melting point 3033℃, boiling point over 5000℃), and high hardness & corrosion resistance (Mohs hardness 7). It is highly brittle with poor plasticity, mostly used in powder or alloy forms. Key Safety Warning: Osmium oxidizes to toxic, volatile osmium tetroxide (OsO₄) when heated above 100℃ in air. Full-process operations (smelting, storage, transport, processing) require inert gas protection, raising production and application thresholds. II. Supply Landscape: Extreme Scarcity & Monopolized Output Osmium is far rarer than gold and platinum, with a crustal abundance of just 0.001ppm, one of the lowest stable elements globally. Proven recoverable reserves are extremely limited and highly concentrated. Global output hinges entirely on platinum mining and smelting, staying at a tiny scale: annual global production is roughly 1 ton (data from International Platinum Group Metals Association), while China’s annual output is less than 100kg. South Africa and Russia dominate global osmium resources and smelting capacity, forming a highly monopolized, inelastic supply market. Tight supply-demand balance persists, supporting strong price resilience and volatility. III. Core Applications: High-End & Irreplaceable Scenarios Despite low production and narrow application scope, osmium is a rigid material for high-precision sectors with no low-cost substitutes, focusing on four key fields: Special Hard Alloys: Osmium-based alloys excel in hardness, wear and corrosion resistance, used for high-precision bearings (luxury watches, instruments), premium pen nibs, medical scalpels and high-end mechanical wear parts. Industrial Catalysis: Osmium and its compounds act as high-efficiency catalysts for fine chemical and organic synthesis (hydrogenation, oxidation), boosting process efficiency and product purity with stable low-volume demand. Scientific Research: Toxic osmium tetroxide is an irreplaceable stain for electron microscopy samples in materials and life sciences; high-purity osmium powder serves as a specialty lab consumable. Aerospace & Military: Leveraging high density and thermal stability, osmium is used for specialty high-temperature components, precision guidance parts and high-end electrical contacts, with high added value and growing demand amid industrial upgrading. IV. Core Market Traits Osmium is a niche PGM marked by extreme resource scarcity, monopolized inelastic supply, rigid high-end demand and total irreplaceability. Unlike bulk commodities, its market is driven by supply shifts, high-end industrial demand and compliance costs, with a small scale and low trading frequency, remaining a critical material for high-end industry and scientific research.

Polaris ESS Network News: On April 28, the Changling County Energy Storage Development Company of Songyuan Energy Group issued a tender announcement for the EPC general contracting of a 100MW/200MWh grid-forming ESS project. The project's funding sources include 47.27 million yuan in state-owned funds, 47.27 million yuan in self-raised funds, and a loan of 189.08 million yuan from other sources, totaling 283.62 million yuan, which is approximately 1.42 yuan/Wh. This project is a newly constructed project, with a planned installed capacity of 100MW/200MWh. It involves the construction of a new 220kV step-up substation, considering a single 220kV outgoing line to deliver power to the 200kV side of the 500kV Longfeng Substation. It is understood that the Changling County Energy Storage Development Company of Songyuan Energy Group is a wholly-owned subsidiary of Songyuan Energy Development Group Co., Ltd., and falls under the jurisdiction of the Songyuan State-owned Assets Management Service Center. Joint bidding is not permitted for this project. The original text is as follows:

Polaris Energy Storage Network learned that on April 26, the list of winning candidates for the energy storage system equipment procurement of the China Resources Power Fangchenggang Fangcheng District 100MW (200MWh) centralized shared ESS power station project was announced. The first winning candidate was BYD Auto Industry Co., Ltd., with a bid price of 103.779 million yuan, equivalent to a unit price of 0.519 yuan/Wh. The second winning candidate was CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd., with a bid price of 101.6 million yuan, equivalent to a unit price of 0.508 yuan/Wh. The bid inviter was China Resources New Energy Investment Co., Ltd. Guangxi Branch. The project is located in Fangchenggang, Guangxi. The total capacity of the entire energy storage system is 100MW/200MWh. The supply of required equipment and related technical services includes but is not limited to ESS batteries, ESS equipment prefabricated cabins, battery management systems (BMS), PCS, energy storage monitoring systems, step-up transformers and their internal accessories (including fire protection and other auxiliary systems and equipment), etc. It is responsible for the installation and wiring of components such as PCS, step-up transformers, and battery prefabricated cabins that are self-supplied within the cabin. It is responsible for providing internal design documents of the energy storage system, including but not limited to the layout diagrams of various equipment in the energy storage system, electrical connection diagrams, communication system diagrams, and other related drawings within the supply scope, and the parameters of the energy storage system equipment. It is responsible for the installation guidance, training and technical services, commissioning, and after-sales services of the ESS batteries, ESS equipment prefabricated cabins, battery management systems (BMS), PCS, energy storage monitoring systems, step-up transformers and their internal accessories (including fire protection and other auxiliary systems and equipment), etc., ensuring that all data of the energy storage system (including all battery cell-level data) can be fully accessed by the operation management center. The list of winning candidates for the energy storage system equipment procurement of the China Resources Power Fangchenggang Fangcheng District 100MW (200MWh) centralized shared ESS power station project was announced. Announcement No.: SZBHX202504260012. The energy storage system equipment procurement for the China Resources Power Fangchenggang Fangcheng District 100MW (200MWh) centralized shared ESS power station project (section No.: S03111725SZ0001P1) has completed the evaluation process through public tender, and the results are announced as follows: I. Basic Information of the Project. Project Name: China Resources Power Fangchenggang Fangcheng District 100MW (200MWh) Centralized Shared ESS Power Station Project. Section Name: Energy Storage System Equipment Procurement. Section No.: S03111725SZ0001P1. Bid Inviter: China Resources New Energy Investment Co., Ltd. Guangxi Branch. Tender Agency: China Resources Shouzheng Tendering Co., Ltd. II. Evaluation Results. 1. First Winning Candidate: BYD Auto Industry Co., Ltd. 1.1 Bid Price: 103,779,000.00 yuan. 1.2 Quality: Meets the requirements of the tender documents. 1.3 Construction/Delivery/Service Period: Meets the requirements of the tender documents. 1.4 Project Leader Information: Name: -- Certificate Name: -- Certificate No.: --. 1.5 Qualification: Meets the requirements of the tender documents. 1.6 Performance: 2. Second Winning Candidate: CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd. 2.1 Bid Price: 101,600,000.00 yuan. 2.2 Quality: Meets the requirements of the tender documents. 2.3 Construction/Delivery/Service Period: Meets the requirements of the tender documents. 2.4 Project Leader Information: Name: -- Certificate Name: -- Certificate No.: --. 2.5 Qualification: Meets the requirements of the tender documents. 2.6 Performance: 3. Third Winning Candidate: / 3.1 Bid Price: / 3.2 Quality: / 3.3 Construction/Delivery/Service Period: / 3.4 Project Leader Information: / 3.5 Qualification: /

Polaris Energy Storage Network learned that on April 16, the list of winning candidates for the framework tender project of the 400MW/800MWh ESS power station in Pingding County and the 100MW/200MWh ESS power station system equipment in Zhaoqing, Guangdong, purchased by State Grid Xuji (Beijing) New Energy Technology Co., Ltd., was announced. The top three winning candidates for the three sections were all Sungrow Power Supply Co., Ltd., Guangzhou Great Power Energy Technology Co., Ltd., and Shandong Wencheng Construction Engineering Co., Ltd. According to the tender announcement, this tender project is divided into three sections, with a tender scale of 500MW/1000MWh: Purchase Package 1: 100MW/200MWh ESS power station system equipment in Zhaoqing, Guangdong: Purchase Package 2: 400MW/800MWh ESS power station in Pingding County, Shanxi (200MW/400MWh ESS power station system equipment); Purchase Package 3: 400MW/800MWh ESS power station in Pingding County, Shanxi (200W/400MWh ESS power station system equipment); The project is funded by self-raised funds of 700 million yuan, and joint venture bidding is not allowed.