[SMM Magnesium Market Analysis: Coal Cost Transmission Imbalance, Weakened Integrated Cost Advantages, and Continued Convergence of Regional Magnesium Ingot Cost Gaps] Recently, energy cost fluctuations in the magnesium industry far exceeded ferrosilicon price fluctuations. The influence of coal prices on magnesium prices increased significantly, and the cost structure of magnesium ingots underwent a notable shift.

The ferrosilicon and other items project (BG2026050107) has met the procurement conditions, and suppliers are now openly invited to participate in the negotiation procurement activity. Project Introduction 1.1 Project Name: Ferrosilicon and Other Items Project (BG2026050107) 1.2 Client: Raw Material Procurement Department, Procurement Center, Bensteel Sheets & Plates Co., Ltd. 1.3 Agency: Ansteel Tendering Co., Ltd. Benxi Branch 1.4 Project Funding: Self-funded 1.5 Project Overview: See the public attachments of the entrustment application 1.6 Platform and Website: Ansteel Smart Tender and Bid Platform (http://bid.ansteel.cn/TPBidder) Procurement Scope and Related Requirements 2.1 Procurement Scope: See the public attachments of the entrustment application 2.2 Delivery Date: July 31, 2026 2.3 Delivery Location: Benxi, etc. 2.4 Product Quality Standards or Key Technical Performance Indicators: See attachments Supplier Qualification Requirements 3.1 Supplier Qualification Requirements: See attachments Click to View Tender Details:

The Low-Carbon Ferrosilicon B project is ready for procurement, and suppliers are hereby openly invited to participate in the negotiation procurement activity. Project Introduction 1.1 Project Name: Low-Carbon Ferrosilicon B Project 1.2 Client: Raw Material Procurement Management, Raw and Fuel Material Procurement Center, Ansteel Co., Ltd. 1.3 Agency: Ansteel Tendering Co., Ltd. 1.4 Project Funding: Self-funded 1.5 Project Overview: See the public attachment of the entrustment application attachment for details 1.6 Platform and Website: Ansteel Smart Tender and Bid Platform (http://bid.ansteel.cn/TPBidder) Procurement Scope and Related Requirements 2.1 Procurement Scope: See the public attachment of the entrustment application attachment for details 2.2 Delivery Date: July 10, 2026 2.3 Delivery Location: Anshan City, Liaoning Province 2.4 Product Quality Standards or Key Technical Performance Indicators: None Supplier Qualification Requirements 3.1 Supplier Qualification Requirements: See attachment Click to view tender details:

The Low-Carbon Ferrosilicon C and Other Projects have met the procurement conditions, and suppliers are now publicly invited to participate in the negotiation procurement activity. Project Overview 1.1 Project Name: Low-Carbon Ferrosilicon C and Other Projects 1.2 Client: Raw Material Procurement Management, Raw and Fuel Material Procurement Center, Ansteel Co., Ltd. 1.3 Agency: Ansteel Tendering Co., Ltd. 1.4 Project Funding: Self-funded 1.5 Project Description: Please refer to the public attachments of the entrustment application 1.6 Platform and Website: Ansteel Smart Tender and Bid Platform (http://bid.ansteel.cn/TPBidder) Procurement Scope and Related Requirements 2.1 Procurement Scope: Please refer to the public attachments of the entrustment application 2.2 Delivery Date: July 10, 2026 2.3 Delivery Location: Anshan City, Liaoning Province 2.4 Product Quality Standards or Key Technical Performance Indicators: None Supplier Qualification Requirements 3.1 Supplier Qualification Requirements: See attachments Click to View Tender Details:

SMM May 25 News: Driven by rising market expectations for coal policy changes and concerns over tightening supply, bullish sentiment was released in a concentrated manner. Coking coal and coke futures hit the daily limit up on May 25 and remained locked at the limit. As of the close of the daytime session on May 25, the most-traded coking coal and coke futures contracts were locked at the daily limit with gains of 7.97% and 7.99%, respectively. The limit-up moves in coking coal and coke lifted the broader ferrous metals and related raw material sectors, with the ferrosilicon continuous most-traded contract rising 3.97% on May 25. Supported by the strengthening prices of raw materials such as coal and ferrosilicon, magnesium ingot prices moved higher, with magnesium ingots gaining over 2% in a single day on May 25. Bullish sentiment in the market had already begun to emerge last Sunday. Rising Coal and Ferrosilicon Prices Highlight Cost Support for Magnesium Ingots Spot market: Primary magnesium smelting is highly dependent on raw materials such as coal and ferrosilicon, with a clear cost transmission chain. As coal prices continued to rise, cost pressure on upstream magnesium enterprises increased significantly. Some upstream enterprises reported that they had already raised their quotations to 16,700 yuan/mt last Sunday. On May 25, although morning inquiries were lukewarm, supported by the rigid cost underpinning from rising raw material prices, most producers still held firm at 16,700 yuan/mt, with a strong willingness to hold prices firm. By region, magnesium ingot prices across China were generally raised by 350 yuan/mt. Mainstream quotations for magnesium ingots (9990) in Fugu, Shenmu, and Inner Mongolia were 16,700 yuan/mt, while quotations in Wenxi were 16,900 yuan/mt. Currently, relevant policies for the coal mine market have not yet been officially implemented. The industry as a whole maintains a cautious wait-and-see stance, and the pace and impact of subsequent policy implementation deserve close attention. Outlook Looking at this round of magnesium price increases, the core driving factor was the rise in raw material costs such as coal and ferrosilicon, representing a typical cost-push price increase rather than one driven by improvements in supply-demand fundamentals. From the current magnesium market fundamentals perspective, the overall oversupply pattern has not shown significant improvement. Although downstream demand demonstrated a certain degree of resilience, end-use demand showed no notable incremental growth, while supply within the market also showed no obvious contraction, leaving fundamentals lacking strong upward support. Overall, the short-term raw material price increases effectively underpinned magnesium prices, supporting magnesium prices to hold up well. However, constrained by the weak supply-demand pattern, the rebound room for magnesium prices in this round is relatively limited. Going forward, it is essential to continue closely monitoring price fluctuations in coal and ferrosilicon raw materials and the implementation of coal mine-related policies, while paying close attention to the release of downstream demand and changes in market supply, in order to assess the pace and upside room for subsequent magnesium price movements. Recommended Reading:

1 Procurement Conditions The purchaser of this procurement project, Ferrosilicon and Other Items (BG2026040318)/Low-Aluminum Ferrosilicon (BGBCGFHGXHD260506285829), is the Raw Material Procurement Department of the Procurement Center of Bensteel Sheets & Plates Co., Ltd. The project funds are self-raised. This project has met the procurement conditions, and an open inquiry and comparison is now being conducted. 2 Project Overview and Procurement Scope 2.1 Project Name: Ferrosilicon and Other Items (BG2026040318)/Low-Aluminum Ferrosilicon 2.2 Conversion to other procurement methods upon procurement failure: conversion to direct procurement, conversion to negotiated procurement 2.3 The procurement content, scope, and scale of this project are detailed in the attachment "Material List Attachment.pdf". 3 Bidder Qualification Requirements 3.1 Joint venture bidding is not permitted for this procurement. 3.2 This procurement requires bidders to possess the following qualification requirements: (1) Business license for trading enterprises (2) Business license for manufacturing enterprises 3.3 This procurement requires bidders to meet the following registered capital requirements: Registered capital for manufacturing enterprises: 10,000,000.0 yuan and above Registered capital for trading enterprises: 10,000,000.0 yuan and above 3.4 This procurement requires bidders to possess the following performance requirements: See attachment 3.5 This procurement requires bidders to possess the following capability requirements, financial requirements, and other requirements: Financial requirements: See attachment Capability requirements: See attachment Other requirements: Performance bond - See attachment 3.6 For projects that are required by law to undergo tender and bid, bids from persons subject to enforcement for breach of trust shall be invalid in this procurement. 4 Obtaining Procurement Documents 4.1 All parties interested in bidding shall log in to the Ansteel Smart Tender and Bid Platform at http://bid.ansteel.cn to download the electronic procurement documents from 08:00 on May 7, 2026 to 08:00 on May 15, 2026 (Beijing time, the same hereinafter). Click to view tender details: