2026 marks the opening year of the 15th Five-Year Plan. Against the backdrop of intensifying global macro fluctuations and the deepening of domestic high-quality development, the zinc industry is undergoing profound changes: tightness on the ore side and the release of smelting capacity create structural tensions; divergent domestic and overseas inventories mirror the complex supply-demand rebalancing; and technological innovation is becoming a key driving force for resolving conflicts and reshaping the landscape. New energy, new-type infrastructure and other key areas of the 15th Five-Year Plan are injecting new momentum into traditional zinc consumption, while green, low-carbon and circular economy paradigms are also accelerating the restructuring of industrial logic, driven by technological innovation. With the joint support of upstream and downstream zinc enterprises, industry associations and all relevant parties, SMM 2026 SMM Zinc Industry Conference concurrently held with the 8th Hot-Dip Galvanizing Industry Development and Technology Innovation Forum, the 14th Zinc Salt, Zinc Oxide and Secondary Zinc Resources Development Forum, and the Zinc-Based Materials Development Forum will be held in Qingdao, Shandong from August 6 to 8. Under the theme “Gathering Zinc Momentum, Building the Zinc Industry, Embarking on a New Journey,” the conference will be driven by macro perspectives and fundamental analysis as its dual engines, closely adhere to the main line of high-quality development of the 15th Five-Year Plan, and focus on four dimensions: macro policies, supply-demand patterns, global trade, and technological innovation. It aims to drive cost reduction and efficiency improvement through technological breakthroughs, respond to market fluctuations with collaborative innovation, and jointly draw a new blueprint for the high-quality and sustainable development of the zinc industry. Baoding Aoqisheng New-type Metal Materials Manufacturing Co., Ltd. will grandly attend this event, discussing industry development trends with industry peers and jointly pushing the zinc industry to new heights. Click the to register for the conference immediately, witness and participate in this extraordinary and far-reaching industry event, and create a brilliant new chapter together! Founded in 2012 with a registered capital of 39.8 million yuan, Baoding Aoqisheng New-type Metal Materials Manufacturing Co., Ltd. is located in Baoding, Hebei, a historic city in China. Situated in the heart of the Beijing-Tianjin-Hebei triangle, the company is rooted in the galvanizing sector of North China and serves the national galvanizing market. The company has a comprehensive management system and a quality and technical service system with full employee participation, and has obtained the ISO 9001 Quality Management System certification, ISO 45001 Occupational Health and Safety Management System certification, and ISO 14001 Environmental Management System certification. Its “Baoding” and “Aoqisheng” trademarks have been registered with the National Trademark Office. The company holds 7 invention patents and 37 utility model patents. Through deep cultivation of industrial development, it has won multiple heavyweight provincial qualifications and honors, being successively recognized as a Hebei Province Technology-based SME, Hebei Province Innovative SME, Hebei Province Specialized, Distinctive and Novel SME, Hebei Province Specialized, Refined, Distinctive and Novel Demonstration Enterprise, and Provincial Manufacturing Single Champion Enterprise. It has established the Hebei Provincial Enterprise Technology Center and Hebei Provincial Zinc-based Alloy Innovation Center, and has been rated as a Hebei Provincial Green Factory. In 2021, Baoding Aoqisheng New-type Metal Material Manufacturing Co., Ltd. cooperated with the National Engineering Laboratory for Advanced Metal Material Coating of China Iron & Steel Research Institute to build the Baoding Alloy New Material Production and Research Base Project. The company enjoys a high reputation in China's hot-dip galvanizing alloy manufacturing industry. Its main products include: zinc-aluminum alloy, zinc-nickel alloy, multi-element rare earth alloy, zinc-bismuth alloy, zinc-antimony alloy, zinc-aluminum-magnesium alloy, and other zinc-based new-type functional alloys. ◆ Contact ◆ Tel: 0312-8063789 QQ: 767 496 767 Website: www.bdags.com Address: No. 1699 Zhongxin West Road, Qingyuan District, Baoding City Long press to scan and register now 2026 SMM Zinc Conference

Philippine ore quotes flat MoM, market awaits new pricing window This week, nickel ore prices in the Philippine market were basically stable compared to last week. CIF China quotes: Ni 1.3% at $49-52/wmt, 1.4% at $57-60, and 1.5% at $65-67; quotes for shipment to Indonesia were 1.3% at around $48-50 and 1.4% at around $56-58. No obvious loosening or upward adjustment was seen across grades for either CIF China or CIF Indonesia quotes, with miners tending towards conservative quotation intentions. Supply side, Philippine shipments were relatively ample overall this week, with no noticeable tightening in market cargo supply. Mines maintained normal loading pace, and no major weather disruptions interfered with the supply chain. Market participants generally expect new rounds of price announcements in the coming weeks, and the near-term ore price direction awaits clearer signals from these pricing markers before further assessment. Demand side, large smelters in China and Indonesia jointly pushed for lower prices, leveraging ample inventory. Shipping volumes to Indonesia were somewhat lower than last month, with buyers clearly dominating price negotiations. As of June 5, nickel ore inventory at Chinese ports reached 5.36 million mt, up 110,000 mt MoM, equivalent to approximately 42,100 mt Ni in metal content; Indonesian smelter inventory continued to accumulate simultaneously. Rising inventory levels at both locations indicate that the demand side is unlikely to provide effective support in the near term. Divergence between sellers and buyers was significant, and the price center edged lower amid a tug-of-war between cost support and weak demand, with overall market sentiment subdued. Continued pushback on raw material prices by smelters caused the price center for nickel ore CIF to shift further downwards, providing extremely weak support for Philippine ore FOB prices. Indonesian nickel ore market: Indonesian ore prices under downward pressure, persistently low grades constrain supply quality This week, Indonesian nickel ore market prices came under downward pressure overall, with the official reference price recording a slight correction, as cost tug-of-war across the industry chain persisted. Indonesia's Ministry of Energy and Mineral Resources (ESDM) officially released the HMA for the first half of June 2026: nickel price at $18,799.29/mt (down $50 from $18,849.29/mt in the second half of May 2026); cobalt price at $55,851.43/mt; iron ore price at $1.58/mt; chrome ore price at $6.37/mt. Based on SMM's internal calculation model, simulations for saprolite ore (Fe 20%, Cr 1%, Co 0.05%) show theoretical HPM prices for all grades slightly lower from the previous period. The theoretical HPM price for Ni 1.6% grade was approximately $70.75/wmt (down $0.08 MoM), and for Ni 1.2% grade was approximately $49.84/wmt (down $0.10 MoM). In terms of transaction prices, this week, delivery-to-factory prices for 1.6% grade saprolite ore were quoted at $73.8–78.8/wmt, down MoM, representing a premium range of +$3 to +$8/mt over the theoretical HPM price of $70.75/wmt. The premium narrowed significantly from earlier highs, reflecting the combined impact of sustained smelter pushback on prices and ample supply, and significantly squeezing miners' profit margins. This week, actual spot prices for 1.2% grade limonite ore were around $28–33/wmt, representing a discount of approximately $17–22 against the theoretical HPM calculated price of $49.84/wmt, with the discount depth remaining severe. Despite the slight adjustment in the HMA reference price, spot limonite ore prices failed to follow at all, heavily constrained by low downstream HPAL capacity utilization rates and tight sulphuric acid supply, with a serious disconnect between the two. Supply side, domestic ore supply in Indonesia improved this week, with overall supply relatively loose. However, ore grades remained persistently low, with mainstream circulated grades in the market around 1.45%–1.50% Ni range. High-grade saprolite ore (≥1.6%) remained a scarce resource, and some smelters faced difficulties supplementing high-grade ore sources, compelling increased blending operations with lower grades. According to the latest BMKG maritime meteorological data, weather conditions in the Morowali waters were good this week, with wave heights of 0.4–0.5 meters (low waves) and stable winds, leaving vessel operations unaffected; weather turned somewhat adverse in the East Halmahera waters, experiencing light rain, northeast winds at 9–10 knots, and wave heights reaching 1.4–2.0 meters (moderate waves), with BMKG issuing a wave alert, requiring heightened attention to shipping operations; the Obi waters also experienced light rain, southeast winds at 13–14 knots, and wave heights of 1.3–1.6 meters (moderate waves), with BMKG also issuing a wave height alert, somewhat impacting ore shipment efficiency. Demand side, overall raw ore inventory at smelters remained at relatively sufficient levels. SMM data shows that in May, the nickel ore inventory coverage index for pyrometallurgy smelters was about 2 months, and the cycle inventory index for HPAL hydrometallurgy plants was about 1.7 months, leaving little appetite for near-term restocking and a clear inclination to push for lower ore prices. In the limonite ore market, the tight supply of sulphuric acid had yet to fundamentally improve, with pressure on MHP production persisting. Operating rates at some hydrometallurgy producers remained low, and purchasing prices for limonite ore came under pressure. Policy level, Indonesia's Coordinating Minister for Economic Affairs confirmed at a meeting yesterday that the DSI ferroalloy export takeover mechanism would formally enter a transition period starting June 1, 2026 (through August), with full implementation required by January 1, 2027, at the latest. The minister confirmed at the meeting the HS codes for ferroalloys included in the takeover scope. Given that nearly all Indonesian NPI exports are declared under HS code 7202.60.00, and this code has been confirmed as included within the DSI takeover scope, NPI is highly likely to be covered by the DSI export takeover. The complete official regulatory text has yet to be officially released, and final confirmation remains subject to official announcement. However, Chinese-invested smelters should begin assessing the potential impact of the transition period on export logistics and compliance costs. In addition, while reiterating its commitment to honoring existing valid long-term contract commercial credit, the government will strictly investigate contracts suspected of "low-price customs declarations." Relevant authorities will soon commence consultations with major industry associations to close loopholes causing tax revenue losses from low pricing. According to markets outside China, Harita Nickel's PT Trimegah Bangun Persada has taken the lead in submitting a ferronickel export report through the DSI "single window" system. CEO Roy Arman Arfandy stated that the export process has been operating normally since June 2, progressing relatively smoothly overall.

This week, the rare earth market showed a clear divergence, with light and heavy rare earths moving in opposite directions. On the light rare earth side, trading sentiment for praseodymium-neodymium oxide turned subdued again, and metal plants remained reluctant to purchase. As a result, prices fluctuated within a narrow range. Although upstream separation plants still showed some willingness to support prices, downstream magnetic material companies and metal plants had low acceptance of current price levels, and new orders were limited, leading to a stalemate between buyers and sellers. Feedback from across the supply chain indicates that downstream users still lack the capacity to absorb high-priced oxides, and actual transactions were mostly small, just-in-time purchases with few bulk restocking activities. Consequently, neodymium-praseodymium prices are expected to continue their weak and volatile trend in the near term. On the heavy rare earth side, the market for dysprosium oxide and terbium oxide was relatively more active, supported by market rumors and purchasing activity from some large smelters, prompting prices to gradually move higher. However, feedback from metal plants suggests that downstream order books for magnetic material companies have not materially improved, and overall demand remains weak. Although upstream suppliers are clearly trying to push prices higher, the lack of strong support from end-user orders means that actual transaction volumes are low, and high-priced deals remain sporadic. Overall, the rare earth market remains largely in a wait-and-see mode. Both the downward pressure on light rare earths and the passive uptick in heavy rare earths reflect the sluggish recovery in demand. In the short term, the market is likely to continue its subdued trajectory.

[SMM Analysis]Supply Tightening Offsets Off-season Pressure, June ADC12 Price Center Expected to Rise

Driven by wild swings in copper prices, the copper scrap market this week operated under their dominance; the sharp fluctuations in futures and spot prices profoundly affected the mentality and behavior of all links in the industry chain, and the market exhibited typical “price-driven, tug-of-war between sellers and buyers, and pulse-like transactions” characteristics.

SMM Report, June 5: Benchmark monthly long-term contract prices for China’s tungsten sector were officially released recently. The Ganzhou Tungsten Association unveiled its June 2026 domestic tungsten forecast prices: 55% WO₃ black tungsten concentrate at RMB 505,000 per metric ton, down RMB 195,000/MT month-on-month; ammonium paratungstate (APT) priced at RMB 760,000 per metric ton, a MoM drop of RMB 260,000/MT;