[Tungsten Flash] SMM July 1 News: Xiamen Tungsten announced that its 60%-owned subsidiary Luoyang Yulu Mining has completely halted production. The enterprise relies on CMOC’s molybdenum beneficiation tailings to extract scheelite concentrates. Now, due to CMOC suspending tailings delivery, it has no raw materials for production, and the timing for production resumptions is undetermined. According to the announcement, Luoyang Yulu’s production and sales of scheelite concentrates (WO3 metal content) in 2025 were 1,924 mt and 1,614 mt, respectively, and in H1 2026, production and sales were 685 mt and 669 mt, respectively. This production halt is expected to have some impact on the company’s near-term operating performance. As it is currently impossible to determine how long Luoyang Yulu’s suspension will last, the impact on the company’s performance cannot be predicted at this time. Specific circumstances will be subject to the company’s audited financial reports.

On June 29, Xiamen Tungsten's share price declined. As of around 14:04 on the 29th, it had fallen 1.22% to 83.47 yuan per share. In terms of news, an announcement from Xiamen Tungsten on June 27 showed: To concentrate resources and focus on developing its three core businesses—tungsten & molybdenum, new energy materials, and rare earths— the company has decided to exit the real estate business. To gradually achieve this exit, Xiamen Tengwangge plans to publicly list for transfer, in the name of its partner Jianming, the unsold properties from Phases I through IV of the Straits International Community project and certain fixed assets within the Phase II commercial properties on the Fujian Provincial Property Rights Exchange, with a reserve price of 192 million yuan (RMB, the same hereinafter). The Straits International Community project (i.e., the commercial housing project on the north side of the Xiamen International Conference & Exhibition Center) was developed under Jianming's name, with related assets registered under Jianming. Through relevant cooperation agreements, Xiamen Tengwangge holds a 67.285% interest in the project, while Jianming holds a 32.715% interest. Commenting on the transaction’s impact, Xiamen Tungsten stated that this transaction is an optimization and adjustment of the company's resource allocation and asset structure based on its strategic development plans. It will help the company further focus on its core businesses and aligns with its long-term strategic planning. The transaction does not harm the interests of the company and its shareholders, particularly minority shareholders. As this is a listed transfer, whether the transaction will ultimately be completed and the final transaction price remain uncertain, and the impact on company performance is subject to change. It will be determined based on actual completion, and currently cannot be estimated. Performance: Xiamen Tungsten’s 2025 annual report shows that for 2025, the company achieved consolidated operating revenue of 46.265 billion yuan, up 30.79% YoY, and consolidated operating costs of 37.984 billion yuan, up 31.07% YoY. Net profit attributable to shareholders of the parent company reached 2.309 billion yuan, up 34.89% YoY, while net profit attributable to shareholders of the publicly listed firm after deducting non-recurring gains and losses was 2.19 billion yuan, up 44.16% YoY. The revenue and profit of its tungsten & molybdenum, energy new materials, and rare earth businesses all registered solid growth. Market shares for its major competitive products—such as tungsten powder, fine tungsten wire, cemented carbide rods, ammonium molybdate, and LCO—remained at the forefront, while profitability of key products, including cemented carbide, cutting tools, fine tungsten wire, magnetic materials, and LCO, further improved. Regarding its main business, Xiamen Tungsten stated that the company focuses on its three core industries: tungsten & molybdenum, rare earths, and energy new materials. Leveraging deep technological expertise and a strong management culture, the company continuously pursues technological and management innovations. It steadily advances its industrial layout in tungsten, molybdenum, rare earths, and lithium battery cathode materials, actively expanding its tungsten & molybdenum deep-processing, rare earth deep-processing, and energy new materials industries, and accelerating the transformation and upgrading of its industry chain. Regarding the business plan, Xiamen Tungsten stated in its annual report: Overall annual work approach: The company will fully implement the guiding principles of the Fourth Plenary Session of the 20th CPC Central Committee, take the 15th Five-Year Plan as its guide, and embark on a transformation toward "Industrial Services" and "Digital Operations"; pursue internationalization, digitalization, and product-as-a-service while advancing both organic growth and external expansion; promote organizational change and talent development; strengthen industry chain synergy and global footprint; upgrade value across the entire chain covering R&D, production, sales, procurement, and investment; enhance functional management efficiency and risk control, consolidate the foundation for development, and ensure that transformation tasks are implemented effectively. Overall annual target: In 2026, the company plans to achieve YoY growth in operating revenue and total profit. To achieve the above business targets, the company will focus on the following key tasks: 1. Advance the comprehensive development of core businesses. In the tungsten sector, the emphasis is on strengthening resource security, driving the transformation of cemented carbide, cutting tools, and rock drilling tools toward high-end and service-oriented offerings, consolidating the advantages of PV tungsten wire and other products, and incubating new products. In the molybdenum sector, the focus is on raising smelting capacity and powder quality, maintaining the gross margin of wire-cut molybdenum wire, and expanding the market share of molybdenum end-cap assemblies and molybdenum discs. In the rare earth sector, the company will expand overseas raw material sources, scale up the fine chemicals, luminescent materials, alloys, and magnetic materials businesses, accelerate new base construction and overseas deployment, increase R&D investment in motor products, and expand into high-end market segments such as equipment manufacturing. In the energy new materials sector, the company will strengthen supply chain cooperation, expand production of core materials, promote the industrialisation of cutting-edge technologies, and accelerate overseas project construction. 2. Strengthen mine resource security. Stabilize domestic mine operations, with a focus on overcoming challenges such as declining grades and rising costs at operating mines; accelerate the development of new mines, promote the injection of the Dahutang tungsten mine, and advance infrastructure construction at the Bobai tungsten mine in Guangxi in an orderly manner. Promote overseas mine projects, conduct preliminary research on mine planning, develop a global map of non-ferrous metals relevant to Xiamen Tungsten's businesses, explore multiple modes of resource acquisition, and study the boundary conditions and rules for engaging in other strategic metals. 3. Strengthen and supplement chains through global layout. Prioritize deep processing capacity construction projects for tungsten-molybdenum, rare earth, and energy new materials, accelerate overseas industrial deployment, and enhance the coverage of the global manufacturing network. Advance M&A projects in and outside China, deploy functional components and devices related to strategic emerging industry chains, and leverage industrial funds to invest along the upstream and downstream of the company's current and future industries. Promote capital operations of subsidiaries and the disposal of non-performing assets and equity stakes to enhance asset operation efficiency. 4. Pilot the transformation to "Industrial Services" and "Digital Operations". 5. Solidify the Five Pillars for Value Chain Value Enhancement. 6. Deepen the Safe Production and Green Manufacturing System. 7. Annual Function Enhancement and Safeguard Measures. Xiamen Tungsten previously disclosed in its Q1 2026 report that in Q1, the company achieved total operating revenue of 15.743 billion yuan, up 86.99% YoY, and net profit attributable to shareholders of the parent company of 1.107 billion yuan, up 189.14% YoY. Regarding the main reasons for the performance change, Xiamen Tungsten explained in its Q1 report that during the reporting period, the company actively responded to rising prices of major raw materials such as tungsten and cobalt, achieving effective linked increases in selling prices of main products across all segments of the industry chain, while sales of key products including cemented carbides, cutting tools, battery materials, and magnetic materials grew steadily, leading to a significant improvement in overall profitability. Xiamen Tungsten introduced: During the reporting period, the company focused on its core manufacturing business and operated steadily. The main highlights were as follows: 1. Tungsten and Molybdenum Business. In Q1 2026, the tungsten and molybdenum business achieved operating revenue of 7.321 billion yuan, up 83.13% YoY, and total profit of 1.763 billion yuan, up 238.82% YoY. The company proactively responded to the sharp rise in tungsten raw material prices, dynamically adjusted its business strategy, and achieved effective linked increases in selling prices of main products throughout the industry chain, significantly enhancing profitability. Among major products, cemented carbide product sales increased 5% YoY, with sales revenue up 156% YoY; cutting tool product sales grew 69% YoY, with sales revenue up 78% YoY; and fine tungsten wire, due to product mix adjustments, saw a 19% YoY decline in sales volume but a 73% YoY increase in sales revenue. 2. Energy New Materials Business. In Q1 2026, the battery materials business achieved operating revenue of 6.585 billion yuan, up 117.82% YoY, and total profit of 260 million yuan, up 94.24% YoY. The company continuously improved product quality and market development, achieving substantial growth in sales of main products and a significant boost in profitability. In Q1, sales of the company’s power battery cathode materials (including ternary cathode materials, LFP, and others) reached 15,700 mt, up 26% YoY, with sales revenue up 82% YoY; LCO sales volume was 14,700 mt, up 20% YoY, with sales revenue up 154% YoY. 3. Rare Earth Business. In Q1 2026, the rare earth business achieved operating revenue of 1.826 billion yuan, up 31.68% YoY, and total profit of 70 million yuan, up 65.72% YoY. The company optimized its product mix, achieving volume and profit growth for high-value-added products, effectively enhancing profitability. Sales of the main deep-processing product, magnetic materials, rose by 24% YoY, with sales revenue up 50% YoY. 4. Real estate business. In Q1 2026, the real estate business reported revenue of 10 million yuan, down 8.08% YoY, while total profit was -19 million yuan, narrowing losses slightly YoY. Tungsten: Looking back at the 2025 tungsten price trend, taking SMM wolframite concentrates (≥65%) as an example: The average price of wolframite concentrates (≥65%) on December 31, 2025, was 453,500 yuan/standard tonne, up 217.69% compared with 142,750 yuan/standard tonne on December 31, 2024. Reviewing Q1 this year, the average price of wolframite concentrates (≥65%) on March 31 was 992,500 yuan/standard tonne, surging by 539,000 yuan/standard tonne from the 453,500 yuan/standard tonne on December 31, 2025, representing a gain of 118.85%. After the earlier sustained rebound, wolframite concentrates returned to 500,000 yuan/standard tonne and then moved sideways. On June 29, the average price of wolframite concentrates was 507,000 yuan/standard tonne, down 0.98% from the previous trading day. Fundamentals side: Supply-demand wise, upstream mines still hold prices firm, and high-grade tungsten ore supply remains tight. Downstream, affected by the traditional off-season, cemented carbide and mechanical processing enterprises maintain hand-to-mouth restocking, leaving overall market transactions subdued. In the short term, supply and demand remain in a tug-of-war. Outside China, with increasingly stringent export controls and tight primary tungsten supply, European APT prices continue to fluctuate at highs. The price spread between Chinese and overseas markets remains large, providing some support for domestic tungsten prices. Meanwhile, tax policies related to the tungsten scrap recycling sector are being further refined, expected to boost compliant tungsten scrap circulation. This will, in the medium and long term, promote standardized development of the recycled tungsten industry and improve China’s tungsten resource supply structure . The domestic tungsten market is expected to mainly consolidate in the short term, with focus on long-term contract price adjustments, pace of mine shipments, changes in downstream off-season demand, and the impact of overseas export policies on market sentiment. Over the medium and long term, attention should be paid to declining supply during the seasonal mine output gap in Q3, while improving consumption expectations during the September-October peak season will further optimize the supply-demand structure, bringing bullish sentiment to prices. Recommended reading:

On June 26, Xiamen Tungsten New Energy announced that the Company plans to establish a new wholly‑owned subsidiary in Hong Kong, namely Xiamen Tungsten New Energy (Hong Kong) Co., Ltd., and through this subsidiary, together with EMI, to set up a holding subsidiary in Malaysia via a joint venture. The project involves an investment of approximately USD 64.58 million (equivalent to about RMB 450 million) for the construction of a 10,000‑ton‑per‑year lithium‑ion cathode material project. The funding for the project will come from the Company’s own funds and self‑raised funds, with the construction period scheduled from September 2026 to June 2027. This investment is intended to improve the overseas production capacity layout and meet overseas market demand. It does not constitute a related‑party transaction or a major asset reorganization.

Recently, the groundbreaking ceremony for the French Neomat CAM power battery cathode material factory, jointly built by Xiamen Tungsten New Energy Materials Co., Ltd. (XTC) and French group Orano, was held in Dunkirk, marking the official start of full-scale construction. The Neomat CAM factory is located in the Grand Port Maritime de Dunkirk. With a total investment of approximately 500 million euros, it plans to produce 40,000 tons of power battery cathode materials annually and is scheduled to commence production in 2028. Neomat's comprehensive industrial layout will subsequently include core sectors such as precursors and strategic metal material recycling, aiming to build an integrated low-carbon circular industry platform.

SMM May 28 update: The minor metal sector strengthened on May 28. As of the close on May 28, the minor metal sector rose 3.44%. In terms of individual stocks: Sino-Platinum Metals, Yunnan Germanium Industry, and China Molybdenum hit the daily limit, while China Minmetals Rare Earth, China Tungsten And Hightech, China Northern Rare Earth, and China Rare Earth led the gains. On the news front: According to authoritative local media in Zimbabwe and Xinhua News Agency, the Zimbabwean government recently issued the Mineral Classification and Declaration, explicitly listing lithium and other high-value minerals as "critical minerals" subject to equity and export controls. The critical minerals involved include 14 types: lithium, nickel, cobalt, graphite, copper, rare earth elements, chromium, platinum group metals (PGMs), manganese, antimony, uranium, ruthenium, tungsten, and niobium. The market is focused on the impact of tightening resource-country policies on global supply chains, with sentiment warming for minor metal varieties such as antimony and tungsten. Spot market Tungsten According to SMM pricing, on May 28, the average price of wolframite concentrates (≥65%) was 415,500 yuan/standard tonne (65%WO3 basis), up 1.22% from the previous trading day. Notably, after wolframite concentrates previously experienced a 61.88% decline over more than two months, driven by increased purchasing demand in the tungsten market, tungsten prices saw a rebound over two trading days. Currently, transactions in the tungsten concentrates market have improved, suppliers are bullish and hold back from selling, high-grade ore sees an upward shift in transaction center, while medium and low-grade ore circulates more but price increases appear lackluster. Downstream APT industry operating rates have slightly improved, but with limited new orders in the industry, smelters are cautious in restocking, with only small volumes of spot orders and large orders transacted in the market. Regarding the tungsten outlook, in the short term, driven by orderly inventory destocking, the return of downstream rigid demand, and the formation of pricing consensus among industry leaders, the tungsten market has overall entered a consolidation-at-lows and recovery phase. Going forward, key attention should be paid to the execution of long-term contracts and the pace of end-use demand recovery. According to SMM surveys, downstream cemented carbide alloy enterprises have seen inventory drop to low levels, with expectations of rigid restocking demand, but influenced by the market not yet being fully stabilized, enterprises remain cautious in procurement, generally adopting a small-order purchasing model. If upstream raw material inventory continues to be cleared and supply-demand imbalances are alleviated, tungsten prices are expected to enter a stabilization and consolidation phase in June-July. In the medium and long-term, the gap in Q3 mining quota transitions may lead to a contraction in market supply, coupled with expectations of the traditional September-October peak season, the industrial supply-demand structure will continue to optimize, thereby providing bullish support for tungsten prices. Rare Earths After the rally on May 27, the average price of Pr-Nd oxide on May 28 fell 1.79% from the previous trading day, and inquiries in the rare earth oxide market were sluggish on the 28th. Affected by futures price fluctuations combined with periodic restocking by some major producers, Pr-Nd oxide prices fluctuated frequently this week. Upstream and downstream players continued their stalemate, with suppliers maintaining relatively firm offers overall, while downstream metal producers maintained a strong wait-and-see sentiment and showed low purchase willingness at high prices. Absent other news-driven factors, Pr-Nd oxide is expected to remain in the doldrums in the short term before any significant change in the supply-demand relationship. Institutional Views Huafu Securities noted in its research report dated May 24, when commenting on other minor metals: rare earths performed weakly, while tantalum pentoxide surged during the week. In the rare earth market, end-use demand from downstream magnetic material sectors remained weak, with no large-scale concentrated restocking observed — only sporadic rigid-demand small orders were transacted, and the demand side consistently failed to provide effective support for the market. Market sentiment fluctuated significantly, with frequent tug-of-war between longs and shorts. Overall industry confidence was insufficient, with a notable stalemate between upstream and downstream on offer and bid prices, and significant divergence within the industry regarding the outlook for subsequent market trends. On Friday, the market maintained a wait-and-see attitude, awaiting changes in the magnetic material restocking pace and a recovery in downstream demand. Individual stocks: for antimony, Hunan Gold, Huaxi Nonferrous, and Huayu Mining are recommended; for molybdenum, China Moly, China Gold, and CMOC; for tungsten, Jiaxin International Resources, China Tungsten High-Tech, Xiamen Tungsten, and Zhangyuan Tungsten; for rare earths, China Rare Earth, China Northern Rare Earth, JL MAG Rare-Earth, and Xiamen Tungsten. Kaiyuan Securities' mid-year 2026 investment strategy for the metals sector indicated: Copper: Supply side, most ex-China miners continued to face declining ore grades and recovery rates, with disruption factors persisting (Ivanhoe's Kamoa-Kakula copper mine, Codelco's El Teniente copper mine). Although China's domestic enterprises added incremental capacity, the overall increase was limited. Under optimistic assumptions, global supply growth from 2026 to 2027 may fall below 2%. Demand side, power demand in both China and the U.S. maintained high growth rates in H1, which is expected to contribute marginal incremental copper demand. Kaiyuan Securities believes that the supply-demand structural imbalance for copper will become more pronounced in 2026, supporting a rise in the copper price center. Lithium: Supply side, capital expenditure in the lithium industry contracted and supply discipline gradually took shape. Combined with frequent disruptions, supply elasticity in the lithium industry has declined notably compared to before. Meanwhile, energy storage demand sustained high prosperity, driving gradual improvement in the lithium demand structure and marginal easing of inventory pressure. Lithium prices are expected to see a phased recovery. Lithium enterprises with resource security, low-cost advantages, and integrated layouts are expected to see earnings recovery elasticity outperforming the industry average. Lithium mine and lithium chemicals companies with high resource self-sufficiency rates and strong cost control capabilities are worth watching. Tungsten: As a strategic metal where China holds a dominant position, tungsten ore supply is constrained by resource depletion, environmental protection, and other factors. Combined with the government's total volume control on tungsten ore mining, tungsten ore production release remains limited. Demand side, emerging sectors are boosting tungsten demand, which is expected to provide long-term support for tungsten prices. According to a CITIC Securities research report, the current metals sector valuation remains at a reasonable level, with aluminum, copper, nickel-cobalt-tin-antimony, and gold valuations at relatively low levels, and a valuation rebound is still anticipated. Sector dividends have pulled back slightly, but the projected dividend yields of some individual stocks still exceed 5%. Looking ahead to 2026, liquidity shocks are expected to ease, supply disruptions are expected to occur frequently, and certain downstream sectors are expected to sustain relatively high prosperity. It is recommended to maintain a focus on allocation opportunities in lithium, copper, rare earths, strategic metals, aluminum, and gold sectors. Recommended Reading:

SMM April 29: Driven by positive news including the slight edge up in Pr-Nd oxide spot prices on April 29, upbeat Q1 results from multiple rare earth enterprises such as China Northern Rare Earth, China Southern Rare Earth Group, and China Rare Earth, and favour from some market funds, the rare earth permanent magnets concept saw a notable rally on April 29. As of the close on April 29, the rare earth permanent magnets concept rose 4.41%. In terms of individual stocks, China Northern Rare Earth, Huahong Technology, China Rare Earth, Shenghe Resources, and Yahua Group hit the daily limit, Ximag Technology surged over 16%, and Sinomine Resource Group, China Southern Rare Earth Group, Xiamen Tungsten, and JL MAG Rare-Earth were among the top gainers. News [31 World Firsts: China's Mineral Resource Inventory Released] On April 29, the Ministry of Natural Resources released China's latest mineral resource inventory. China ranks first in the world in reserves of 14 minerals including rare earth , tungsten, tin, molybdenum, antimony, gallium, germanium, indium, fluorite, and graphite. In 2025, China ranked first globally in production of 17 minerals including coal, vanadium, titanium, zinc, rare earth , tungsten, tin, molybdenum, antimony, gallium, indium, gold, and tellurium. Currently, China's mineral production and smelting and processing scale ranks first globally, with the national mining output value reaching approximately 32.7 trillion yuan in 2025, accounting for over 23% of GDP. The significant growth in resource reserves has laid a solid foundation for resource self-sufficiency and controllability. [Ministry of Natural Resources: Investment in Mineral Exploration to Continue Increasing during the 15th Five-Year Plan Period] On April 29, Xiong Zili, Director of the Geological Exploration Management Division of the Ministry of Natural Resources, stated that during the 15th Five-Year Plan period, the state will continue to thoroughly implement a new round of strategic actions for mineral exploration breakthroughs. The Ministry of Natural Resources is expected to further improve the coordinated system for exploration, production, supply, reserves, and sales of strategic mineral resources, and strengthen security risk monitoring and early warning for strategic mineral resources. In terms of key priorities, efforts will focus on scarce strategic minerals such as copper, iron, lithium, cobalt, and nickel, while consolidating the resource position of advantageous minerals such as rare earth , tungsten, and tin. In terms of spatial layout, land-sea coordination will be strengthened, with active expansion of survey, exploration, and development space, and intensified basic geological survey efforts. The goal is to identify a number of mineral deposits ready for development by 2030 and form new capacity as soon as possible. [Inner Mongolia: Aiming to Cultivate Three Trillion-Yuan Industrial Clusters by the End of the 15th Five-Year Plan] On April 21, the Information Office of the Inner Mongolia Autonomous Region People's Government held a special press conference themed "Launching the 15th Five-Year Plan and Striving to Write a New Chapter of Chinese-Style Modernization in Inner Mongolia on the New Journey," introducing and interpreting the relevant contents of the Outline of the 15th Five-Year Plan for National Economic and Social Development of the Inner Mongolia Autonomous Region. Bao Gang, Deputy Secretary of the CPC Inner Mongolia Autonomous Region Committee and Chairman of the Autonomous Region People's Government, stated that Inner Mongolia strives to cultivate and form three trillion-yuan-level industrial clusters in new materials, new-type chemicals, and digital industries, as well as rare earth, non-ferrous metals, PV, and other nine 100-billion-yuan-level industry chains by the end of the "15th Five-Year Plan" period. [China Northern Rare Earth: Q1 Net Profit 918 Million Yuan, up 113.12% YoY] China Northern Rare Earth announced that its Q1 2026 revenue was 11.859 billion yuan, up 27.69% YoY; net profit was 918 million yuan, up 113.12% YoY. [China Rare Earth & Vanadium: Q1 Net Profit 171 Million Yuan, up 261.55% YoY] China Rare Earth & Vanadium announced that its Q1 2026 operating revenue was 1.535 billion yuan, up 1.90% YoY. Net profit was 171 million yuan, up 261.55% YoY. During the reporting period, the company strengthened market analysis, further coordinated rare earth business procurement and sales synergies, and steadily improved rare earth product performance, achieving expected profits. Meanwhile, it continued to strengthen the governance of loss-making enterprises, with loss-making enterprises achieving YoY loss reduction. The company's associated enterprise Dabaoshan Company maintained stable and high production, with copper, sulfur, and tungsten products achieving YoY increases in both production and sales volumes and prices. Enterprise profitability increased, and the investment income recognized by the company under the equity method also increased. [China Rare Earth: 2025 Net Profit 173 Million Yuan, Turning from Loss to Profit YoY] China Rare Earth released its 2025 annual report, achieving operating revenue of 3.182 billion yuan, up 5.11% YoY; net profit attributable to shareholders of the publicly listed firm was 173 million yuan, turning from a net loss of 287 million yuan in 2024 to profitability. The company proposed to distribute a cash dividend of 0.29 yuan per 10 shares to all shareholders, with no bonus shares and no capital reserve conversion to share capital. The company's Q4 net profit was -20 million, and Q3 net profit was 30 million. Based on this calculation, Q4 net profit turned from profit to loss QoQ. The analyst consensus forecast for Q4 net profit was 169 million, while the calculated Q4 net profit was -20 million, with performance falling below expectations. [JL MAG Rare-Earth: Q1 Net Profit 193 Million Yuan, up 20.09% YoY] JL MAG Rare-Earth announced that its Q1 2026 operating revenue was 2.036 billion yuan, up 16.05% YoY. Net profit attributable to shareholders of the publicly listed firm was 193 million yuan, up 20.09% YoY. Basic earnings per share were 0.14 yuan/share, up 16.67% YoY. Many enterprises reported positive Q1 results, which was closely linked to the notable rise in Pr-Nd oxide prices in Q1. A review of SMM's Q1 Pr-Nd oxide price trend shows that the average price of Pr-Nd oxide on March 31 was 721,500 yuan/mt, an increase of 115,000 yuan/mt compared with its average price of 606,500 yuan/mt on December 31, 2025, representing a Q1 increase of 18.96%. The average price of Pr-Nd oxide in Q1 this year was 745,955.36 yuan/mt, compared with its Q1 2025 average of 429,605.26 yuan/mt, up 316,350.1 yuan/mt YoY, a YoY increase of 73.64%. Pr-Nd Oxide Price Rose Nearly 1% on April 29 Spot market. On April 29, Pr-Nd oxide was quoted at 770,000-775,000 yuan/mt, with an average price of 772,500 yuan/mt, up 0.98% from the previous trading day. As the holiday approached combined with news-driven factors, wait-and-see sentiment was strong in the Pr-Nd oxide market. Upstream suppliers maintained firm offers, but downstream metal plants had limited acceptance of high-priced supplies, and market trading was sluggish. Absent major news, rare earths are expected to move sideways in the short term. Institutional Views Huayuan Securities stated that Pr-Nd oxide prices moved sideways. Over the past two weeks, Pr-Nd oxide rose 2.44% to 776,000 yuan/mt, dysprosium oxide rose 0.36% to 1.375 million yuan/mt, and terbium oxide rose 0.41% to 6.11 million yuan/mt. Supply side, policy and supply side tightness provided support, with spot supply of Pr-Nd oxide remaining tight and upstream suppliers showing low willingness to sell at low prices. Demand side, downstream magnetic material enterprises had weak orders and low purchase willingness, with overall trading sluggish. The Q2 rare earth concentrates transaction price between China Northern Rare Earth and Bao Gang United Steel rose 44.61% QoQ, supporting the upward shift of the rare earth price center. Recommended stocks: Rising Nonferrous Metals, China Rare Earth, China Northern Rare Earth, JL MAG Rare-Earth, Ningbo Yunsheng, Zhenghai Magnetic Material, etc. A CITIC Securities research report noted that China's strengthened rare earth export controls have led to shortages and significant price increases for some rare earth oxides outside China, and since advanced ceramics production relies on rare earth oxides, Japanese and American producers that previously dominated the high-end ceramics market face risks of raw material price hikes and even supply disruptions. This ongoing situation is expected to accelerate Chinese high-end ceramics producers' efforts to go global and capture market share, ushering in a historic opportunity. Investors are advised to watch other high-end ceramics producers with export capabilities. Xiangcai Securities noted that rare earth supply is tightening at an accelerating pace — separation enterprises are successively implementing production cuts, scrap enterprises face output fluctuations due to environmental protection inspections, and expectations for declining actual Pr-Nd supply are clear. Meanwhile, downstream magnetic material enterprises maintain stable long-term contract orders with inventory at low levels, and willingness to lock in orders and replenish as needed has strengthened, with notable short-term demand release. Combined with the reinforced strategic value positioning of the industry and liquidity easing support, the sector's price resilience is prominent, and rare earth prices are expected to continue their rising trend going forward. Bank of America strategist Michael Hartnett stated that investors should pile into commodity markets in the coming years, as this asset class will benefit from global geopolitical and macro-economic turmoil. Middle East wars and the AI race have heightened focus on supply chains, with governments working to limit the impact of surging energy and other natural resource prices on industries and consumers, while seeking to secure supplies of critical minerals such as rare earths vital to manufacturing and technology. For the remainder of this decade, as investors seek to hedge against risk, inflation, and a weakening US dollar, commodities will replace equities as the big winner of the "buy anything but bonds" trade. Fiscal overextension means "a bear market rally in government bonds is more likely than a bull market" in the years ahead. Recommended reading: