[SMM Tungsten Daily Review: Improved Trading Lifts Tungsten Market Volume and Prices, End-Use Demand Follow-Through Remains Key Focus for the Outlook] SMM June 3 report: The tungsten market posted steady gains this week, with related products across the industry chain rising across the board. Tungsten ore and APT markets recorded six consecutive days of increases. New orders from downstream powder enterprises began to gradually improve. Supported by increased trading volume and rising costs, powder enterprises successively raised their quoted prices. Downstream and end-user enterprises shifted from sporadic rigid-demand purchases to bulk purchasing, bullish sentiment grew increasingly strong, and price gains were concentrated in upstream raw materials and the APT segment, while deep-processed products passively rose following costs.

[Galvanized Sheet Market] According to SMM, as the consumption off-season arrived, domestic trade orders for galvanized sheet in China weakened notably, dragging down production at domestic galvanized sheet mills, with overall market operating rates declining MoM.

As of Wednesday, the spot price of SiMn 6517 (cash) in the north China market was 5,900-6,000 yuan/mt, down WoW from the previous Wednesday; the spot price of SiMn 6517 (cash) in the south China market was 6,000-6,100 yuan/mt, also down WoW from the previous Wednesday. Currently, SiMn futures and spot prices were moving sideways within a mid-range overall, and the short-term support of raw material costs for spot prices had somewhat weakened.

[SMM Silicon-Based PV Morning Meeting Summary] Polysilicon: N-type recharging polysilicon was quoted at 33-35.7 yuan/kg. Polysilicon prices remained generally weak, with sluggish market transactions. Previous order signing had concluded, and the current focus was primarily on shipments, with market participants watching for subsequent policy developments. Wafer: Market prices for 18X wafers were 0.88-0.9 yuan/piece, 210RN wafers were priced at 0.98-1.00 yuan/piece, and 210N wafers were priced at 1.18-1.2 yuan/piece. Top-tier players continued to hold prices, and improving quality to justify price increases had become the most pressing task in the wafer segment.

In May, the rare earth market entered its traditional off-season. Although occasional factors such as major producers' procurement briefly boosted rare earth prices, weak downstream demand kept prices under pressure and pulling back overall throughout May. Pr-Nd oxide and dysprosium oxide fell 11% and 11.79% respectively in May, while terbium oxide also edged down. On the supply side, however, an increasing trend emerged — domestic rare earth oxide production was up MoM across the board in May. Combined with continued inflows of ex-China sources, imports of unlisted rare earth oxides in the first four months surged 103% YoY. This supply-demand mismatch further suppressed rare earth price performance in May. Since early June, Pr-Nd oxide and other rare earth products have seen slight price rebounds, driven by major producers' restocking and futures fluctuations. However, the off-season demand shortfall persists — how will the rare earth market perform going forward? Pr-Nd Oxide Down 11% in May, Dysprosium Oxide Down 11.79%, Terbium Oxide Down 1.63% Light rare earth prices: Taking the historical price trend of Pr-Nd oxide as an example, according to SMM quotes: the average price of Pr-Nd oxide on May 29 was 687,500 yuan/mt, compared with its April 30 average price of 772,500 yuan/mt, representing a decline of 85,000 yuan/mt in May, with a monthly drop of 11%. Entering June, Pr-Nd oxide continued to rise, with an average price of 700,500 yuan/mt on June 2. Medium-heavy rare earth prices: Taking the trend of dysprosium oxide as an example, according to SMM quotes: the average price of dysprosium oxide on May 29 was 1,230 yuan/kg, compared with its April 30 average price of 1,375 yuan/kg, representing a decline of 145 yuan/kg in May, with a monthly drop of 11.79%. Entering June, dysprosium oxide prices edged up slightly, with an average price of 1,240 yuan/kg on June 2. Taking the trend of terbium oxide as an example, according to SMM quotes: the average price of terbium oxide on May 29 was 6,025 yuan/kg, compared with its April 30 average price of 6,125 yuan/kg, representing a decline of 100 yuan/kg in May, with a monthly drop of 1.63%. Entering June, terbium oxide prices rose slightly, with an average price of 6,035 yuan/kg on June 2. Oxide Production Up MoM Across the Board in May Production: Due to increased production from scrap recycling enterprises and production resumptions at some enterprises that had previously undergone equipment maintenance, production of Pr-Nd oxide and other rare earth oxides edged up in May compared with April. Imports of Unlisted Rare Earth Oxides Up 103% YoY, January-April According to data from the General Administration of Customs, China's imports of thorium ore and concentrates totaled 21,443 mt from January to April 2026, nearly flat YoY. Imports in April were 4,081 mt, up 22% MoM but up 32% YoY. From January to April 2026, China's imports of unlisted rare earth oxides reached approximately 26,123 mt, a significant YoY increase of 103%. Currently, the operating rate of ex-China rare earth mines remains relatively high, keeping actual supply in the international market at ample levels. Outlook Recently, rare earth prices rose due to futures market price fluctuations and periodic restocking by some large enterprises. However, as downstream orders were unsatisfactory, even though raw material inventory at downstream enterprises remained at relatively low levels, end-user wait-and-see sentiment was strong and enterprises showed little enthusiasm for restocking and stockpiling. It is expected that rare earth prices will be in the doldrums again until downstream orders see a notable increase and market confidence shows clear recovery. Recommended reading:

As of June 2, the operating rate of 50 major construction steel EAF steel mills nationwide was 41.2%, up 1.24% WoW; capacity utilization rate was 42.70%, up 0.73% WoW; daily average production of construction steel was 95,100 mt, up 1,600 mt WoW.