SMM July 17 News: This week, secondary refined lead EXW transaction prices were mainly at a discount to the SMM #1 lead average price. Smelters held back from selling due to losses, and price fluctuations during the week caused the discount/premium range to fluctuate between a discount of 50 yuan/mt and a premium of 30 yuan/mt. Industry losses widened first and then narrowed. As of July 17, 2026, the theoretical comprehensive profit/loss for secondary lead enterprises stood at -317 yuan/mt for large-scale producers and -497 yuan/mt for small and medium-scale producers. Next week, expectations for production cuts in secondary lead will support lead prices, and premiums/discounts may return to parity territory. However, the battery off-season combined with high scrap battery costs will make it difficult for losses to improve.

JL MAG Rare-Earth's July 15 investor relations activity record shows: 1. Please elaborate on the company's expected H1 2026 performance growth? JL MAG Rare-Earth responded: In H1 2026, the company's management upheld the annual operating policy of "adhering to compliance and integrity, staying customer-oriented, focusing on the magnetic material core business, building 20,000 mt of capacity on schedule, actively deploying embodied robot motor rotors, and scaling new heights." Through measures such as technological innovation, organizational optimization, digitalization, and lean management, while fully ensuring contract fulfillment and delivery to a broad client base, the company achieved steady growth in operating performance. The company continued to consolidate its leading position in the new energy and environmental protection sectors and actively explored emerging markets, with operating revenue expected to grow approximately 30% YoY. In the NEV and parts sector, revenue grew approximately 30% YoY; in the robot and industrial servo motor sector, revenue grew approximately 90% YoY, with small-volume deliveries of embodied robot motor rotors already underway. In H1 2026, net profit attributable to the parent is expected to be 400 million to 460 million yuan, up 31% to 51% YoY; deducted non-recurring net profit attributable to the parent is expected to be 370 million to 430 million yuan, up 57% to 83% YoY. In Q2 2026, net profit attributable to the parent is expected to be 210 million to 270 million yuan, up 43% to 85% YoY and up 7% to 39% QoQ; deducted non-recurring net profit attributable to the parent is expected to be 190 million to 250 million yuan, up 50% to 97% YoY and up 9% to 44% QoQ. 2. What is the latest progress of the company's embodied robot business? JL MAG Rare-Earth responded: Robots liberate human productivity and represent a key direction in the new wave of technological change, with broad industry development prospects. The company is actively cooperating with world-renowned tech companies in the R&D of embodied robot motor rotors and has made small-volume product deliveries. In addition, through direct investment or participation in industrial funds, the company is making strategic deployments in key links of the relevant industry chain to accelerate industrial synergy and commercialization. 3. What about the company's raw material supply and recycling layout? JL MAG Rare-Earth responded: The company has established long-term strategic partnerships with major rare earth raw material suppliers, including China Northern Rare Earth Group and China Rare Earth Group, and fully leverages the advantage of controlling Yin Hai New Materials to deploy upstream rare earth recycling business, building a diversified rare earth resource supply system. The company was an early mover in rare earth recycling in the industry and currently holds a 51% stake in Yin Hai New Materials. Leveraging the group's manufacturing system, recyclable materials such as magnetic sludge and off-cuts generated during production at the company's various plants can be steadily supplied to Yinhai New Materials for recycling and processing, meeting its production needs while providing strong assurance for the company's raw material supply. In 2025, the company recovered a total of 3,681 mt of rare earth raw materials. Yinhai New Materials has already generated operating revenue and profit contributions. In 2025, it achieved operating revenue of 195 million yuan and net profit of 50.5 million yuan (the above are actual operating results, excluding adjustments related to purchase price allocation). Currently, Yinhai New Materials has passed ISO 14021 certification, and its main products have received certification for 100% recycled content under international standards. 4. Please elaborate on the situation regarding the company's planned acquisition of a partial stake in Baotou Rare Earth Products Exchange Co., Ltd.? JL MAG Rare-Earth responded: In order to implement the company's development strategy and enhance its overall competitiveness, the company plans to acquire, through public listing and transfer on the Inner Mongolia Property Rights Exchange Center, a 9.24% equity interest in Baotou Rare Earth Products Exchange Co., Ltd. (hereinafter referred to as the "Rare Earth Exchange") held by China Northern Rare Earth (Group) High-Tech Co., Ltd. According to the appraisal report issued by Northern Asia Asset Appraisal Co., Ltd., as of the valuation date of December 31, 2025, the total equity value of the Rare Earth Exchange assessed using the market approach was 239 million yuan, a premium of 27.86 million yuan over the net asset book value of 211.14 million yuan as of the valuation date, representing an appreciation rate of 13.19%. The estimated transaction price for the target equity is 22.08 million yuan. Rare earths are the core raw material for producing NdFeB permanent magnet materials. The Rare Earth Exchange serves as a specialized trading platform for rare earth (metal) resources. If this equity acquisition is successfully completed, it will further enhance the company's ability to secure rare earth raw material supply, strengthen its overall competitiveness, and consolidate its market position in the rare earth permanent magnet industry. The company will, in accordance with the principle of cooperative co-construction and mutual benefit, fully leverage its own strengths to assist the Rare Earth Exchange in becoming a national-level rare earth (metal) resource trading platform. This planned acquisition of part of the Rare Earth Exchange's equity constitutes a state-owned asset transfer matter, and the transaction must strictly follow the statutory procedures for state-owned asset transactions, including approvals and listing. The company will monitor progress and fulfill its information disclosure obligations in accordance with relevant regulations. JL MAG Rare-Earth's semi-annual performance forecast released on July 1 showed: Net profit attributable to shareholders of the parent company is estimated to be between 400 million yuan and 460 million yuan in H1 2026, up 31.17% to 50.84% YoY. Regarding the reasons for the performance change, JL MAG Rare-Earth stated in its announcement: 1. In H1 2026, the company's management adhered to the annual operating policy of "upholding legal compliance, maintaining client focus, concentrating on the core magnetic materials business, adding 20,000 tons of capacity on schedule, proactively developing motor rotors for embodied robots, and scaling new heights." Through measures such as technological innovation, organizational optimization, digital transformation, and lean management, while ensuring full performance of contracts and delivery to a broad client base, the company achieved steady growth in its operating results. The company continued to strengthen its leading position in the new energy and environmental protection sectors and actively explored emerging markets. Revenue is expected to rise by approximately 30% YoY. Specifically, in the NEV and auto parts segment, revenue rose by about 30% YoY; in the robotics and industrial servo motor segment, revenue rose by approximately 90% YoY, and embodied robot motor rotor products have already seen small-batch deliveries. 2. During the reporting period, the estimated impact of non-recurring gains and losses on net profit was approximately 32 million yuan, compared with non-recurring gains and losses (after tax) of 70.94 million yuan in the same period last year. 3. During this reporting period, due to A-share and H-share equity incentives and the issuance of H-share convertible bonds, related expenses such as share-based compensation costs and financial expenses totaled approximately 121 million yuan. No such expenses existed in the same period last year. A recently issued announcement by JL MAG Rare-Earth showed that, to implement its development strategy and enhance overall competitiveness, it planned to acquire a 9.24% stake in Baotou Rare Earth Products Exchange Co., Ltd. held by China Northern Rare Earth (Group) High-Tech Co., Ltd. through a public listing and transfer process on the Inner Mongolia Equity Exchange , According to the appraisal report issued by Northern Asia Assets Appraisal Co., Ltd., the total equity value of the Rare Earth Exchange assessed using the market approach as of the valuation reference date of December 31, 2025, was 239 million yuan, representing an increase of 27.8551 million yuan over the net asset book value of 211.1449 million yuan on that date, an appreciation rate of 13.19%. The expected transaction price for the target equity stake is 22.0836 million yuan. In accordance with the Shenzhen Stock Exchange ChiNext Listing Rules, the Company’s Articles of Association, and other relevant regulations, this external investment falls within the approval authority of the CEO. It does not constitute a connected transaction, nor does it constitute a major asset restructuring as defined under the Administrative Measures for Major Asset Restructurings of Publicly Listed Companies. In its 2025 annual report, JL MAG described its main business and product applications as follows: The company is a high-tech enterprise integrating R&D, production and sales of high-performance NdFeB permanent magnet materials, magnetic assemblies, embodied robot motor rotors, and comprehensive recycling of rare earths. It is a leading supplier of rare earth permanent magnet materials for the new energy and environmental protection sectors. Its products are widely used in NEVs and auto parts, energy-efficient inverter air conditioners, wind power generation, robotics and industrial servo motors, 3C electronics, low-altitude aircraft, energy-saving elevators, rail transit, and other fields, and it has established long-term and stable partnerships with leading enterprises in these fields both within and outside China. The company has been actively deploying in the robotics field: on one hand, it collaborates with internationally renowned technology companies on the R&D and capacity building for embodied robot motor rotors, with small-batch product deliveries; on the other hand, through direct investment or participation in industry funds, it makes strategic moves in key links of the relevant industry chain to accelerate industrial synergy and commercialization. Regarding the 2026 annual operating plan, JL MAG Rare-Earth stated in its 2025 annual report: The company's 2026 business guideline: "Adhere to legal compliance, uphold customer orientation, focus on the core business of magnetic materials, build new capacity of 20,000 mt as scheduled, actively position in embodied robot motor rotors, and scale new heights." In accordance with the company's business guideline and on the premise of legal compliance, the company will focus on advancing the following efforts: 1. Orderly release of capacity under construction. In 2026, some of the company's projects under construction will gradually release capacity. The specific release progress will comprehensively consider factors such as equipment commissioning and market demand, advancing the commissioning and ramp-up of new capacity in an orderly manner. 2. Continuous enhancement of R&D capabilities. 3. Continuous optimization of product structure. The company will center on client needs, continuously enrich the product portfolio for different application scenarios, and enhance the resilience of the product structure and client stickiness. At the same time, it will steadily advance the layout of projects such as magnetic components and embodied robot motor rotors, equip dedicated production lines and professional teams, and drive the upgrade of small-batch production lines to large-scale, standardized manufacturing and quality systems. 4. Continuous improvement of operational capabilities. 5. Strengthening capital expenditure efficiency. 6. Improving incentive mechanisms and shareholder returns. 7. Advancing ESG system construction. As for the risks the company may face, JL MAG Rare-Earth stated when introducing the risk of price fluctuations in rare earth raw materials: Rare earth metals are the main raw materials for producing NdFeB magnetic steel. China is an important global supply hub for rare earth raw materials. Wild swings in rare earth raw material prices will adversely impact the company's production and sales in the short term. Countermeasures: The company has built manufacturing plants in Ganzhou, Jiangxi, a major production area for heavy rare earth, and Baotou, Inner Mongolia, a major production area for light rare earth. The company has established long-term cooperative relationships with major rare earth raw material suppliers, including China Northern Rare Earth Group and China Rare Earth Group. At the same time, the company strives to mitigate the adverse impact of rare earth raw material price fluctuations on its operating performance through measures such as pre-purchasing rare earth raw materials based on orders on hand, establishing price adjustment mechanisms with key clients, optimizing formulations, and improving processes. Looking back at the price performance of Pr-Nd alloy in H1 this year, it can be seen that: : The average price of Pr-Nd alloy on June 30 was 905,000 yuan/mt. Compared with its average price of 735,000 yuan/mt on December 31, 2025, the increase in H1 was 23.13%. The annual daily average price of Pr-Nd alloy in H1 this year was 904,650.86 yuan/mt, compared with 529,559.83 yuan/mt in H1 2025, with the semi-annual daily average price increasing by 375,091.03 yuan/mt, for a YoY increase of 70.83%. According to SMM's price quotes, on July 17, the price of Pr-Nd alloy was 920,000-930,000 yuan/mt, with an average price of 925,000 yuan/mt, down 0.54% from the previous trading day. Currently, rare earth market prices are trending slightly downward. Focusing on the Pr-Nd market, Pr-Nd oxide futures prices declined, while spot market inquiries were sluggish. Affected by this, suppliers lowered their offers for Pr-Nd oxide. However, most industry participants remain confident about the market outlook and show a strong willingness to hold prices firm, resulting in a relatively small actual decline in oxide prices, with low-priced goods still scarce and hard to find. Metal market prices also slipped. New orders at magnetic material enterprises were poor, limiting their capacity to accept high-priced metals, with procurement mainly driven by rigid restocking demand, leading to sluggish metal market inquiries. The upstream-downstream stalemate persisted in negotiations, with the metal side continuing to face pressure. It is expected that in the short term, due to sluggish trading activity, Pr-Nd product prices will likely move sideways in a narrow range. Recommended Reads:

[SMM Analysis: Price Spread Between Copper Cathode and Copper Scrap Widens by Over 2,000 Yuan, Driving Dominance of Hedging-Based Procurement] This week (July 13 – July 16), the copper scrap market operated under a triple framework of retreat after rapid rise in copper prices, ongoing compliance constraints from reverse invoicing, and intensifying high-temperature off-season. The most-traded SHFE copper contract surged to 105,020 yuan/mt mid-week, gaining nearly 2,000 yuan/mt for the full week compared to the start of the week. However, copper scrap was supported by compliance costs and suppliers holding prices firm, with full-week price fluctuations of less than 1,000 yuan/mt. The price spread between copper cathode and copper scrap widened from 2,445 yuan/mt at the start of the week to 3,923 yuan/mt, a WoW increase of over 2,200 yuan/mt, entirely driven by the unilateral rise in copper cathode prices. The resilience of copper scrap itself was the key supply-side feature this week, which directly gave rise to hedging-based procurement demand from secondary copper rod enterprises.....

Grain-Oriented Silicon Steel Price Movements Shanghai B23R085 grade: 12,200-12,200 yuan/mt Wuhan 23RK085 grade: 11,700-11,700 yuan/mt This week, China’s grain-oriented silicon steel market remained stable overall, with no notable price fluctuations. Mainstream quotations in the spot market were steady. Steel mills showed strong willingness to hold prices firm. For August, the base price for GO silicon steel was raised by 50 yuan/mt, with no significant rise or fall. Supply-demand conditions were generally stable. Steel mills maintained a steady production pace, resource supply was orderly, and market circulating inventory remained within reasonable range. Downstream end-users such as transformer enterprises purchased as needed, with just-in-time procurement dominating. The overall transaction pace was moderate. Market trading sentiment was cautious and rational. Traders mostly sold at stable prices, taking a wait-and-see stance, and price concessions or adjustments were rare. Looking at market fundamentals, bullish and bearish factors are currently balanced. The cost side provides bottom support, while the demand side shows no significant boost or weakening signs. Overall, the GO silicon steel market is expected to continue its stable pattern next week, with prices likely to remain steady. Transactions will mostly be just-in-time procurement against a wait-and-see stance, with no clear upward or downward trend for now. Data source statement: Data other than publicly available information is based on public information, market communication, and SMM’s internal database models, processed by SMM. It is for reference only and does not constitute decision-making advice. Note: This article is original content of this official account. For any needs regarding reproduction, whitelisting, or cooperation, please contact us. Without permission, no one may reproduce, modify, use, sell, transfer, display, translate, compile, disseminate, or otherwise disclose the above content to any third party or authorize any third party to use it. Once discovered, SMM will pursue legal liability for infringement, including but not limited to requiring the assumption of contractual breach liability, restitution of unjust enrichment, and compensation for direct and indirect economic losses.

[ADC12 Price Daily Review: Cost Support and Off-Season Demand Keep ADC12 Price Moving Sideways] Today, the ADC12 market continued its stable price trend overall, with mainstream producers’ quotations basically flat. The SMM ADC12 price remained stable at 24,100 yuan/mt from the previous trading day.

The latest data from CAAM shows that in H1 2026, China's fuel cell vehicle market exhibited a marked pattern of "moving downwards after a higher opening and declines in both supply and demand." After the sprint peak at the end of 2025, H1 production and sales experienced a "cliff-like drop," with the industry entering a period of deep adjustment. But looking beyond the data, this "calm period" is precisely a critical turning point for the industry to squeeze out bubbles and solidify its foundation. I. H1 Production and Sales Data: Multiple Signals Behind the Sharp Chill 1. Total Volume Plunge: The Real Picture Amid the Harsh Winter Production side: From January to June 2026, cumulative production was only 401 units, averaging fewer than 70 units per month, a 71.8% YoY plunge compared to the same period of 2025, nearly halving. Sales side: Cumulative sales reached 550 units, down 63.5% YoY. The once high-growth curve abruptly lost momentum, and market enthusiasm cooled significantly. 2. Monthly Fluctuations: A Rhythm of Fire and Ice in Disarray Starting with a freeze: In January, production and sales plunged to rock bottom, compounded by the Chinese New Year holiday and a wait-and-see sentiment in the market. February's "abnormal recovery": Sales surged to 300 units, nearly four times the production volume. This may have stemmed from the concentrated delivery of backlog orders from the end of 2025, or from bulk purchases by a certain region/large client, creating a "false prosperity." From March to June, a continued downturn: Both production and sales fell back to the 100-unit range. In June, production held at 100 units while sales were only 50 units, quietly driving up inventory pressure. YoY Disparity: The Double Squeeze of High Base and Policy Vacuum. The "carnival" in H2 2025, especially in Q4 when monthly production and sales exceeded 3,000 units, set a high base trap for 2026. Coupled with the phasing-out of policy subsidies and the start of a new assessment cycle for demonstration city clusters with details yet to be clarified, enterprises adopted a more conservative production pace, end-users fell into a wait-and-see mode, and the market fell into a "policy vacuum period." II. Industry Growing Pains: The Exposure of Multiple Bottlenecks Policy Cycle and Fiscal Rhythm Bottlenecks. Fuel cell vehicles are highly dependent on policy "blood transfusions." After the installation rush at the end of 2025 overdrew demand, the pace of local subsidy disbursements slowed in 2026, leaving enterprises hesitant to expand production and users holding back for new policies, plunging the market into a strategic standoff. Hydrogen Infrastructure Lagging: A Weak Link Constraining the Overall System. While vehicle technology is maturing, hydrogen refueling station construction still struggles to match demand. The February sales surge may have been concentrated in the "island" effect of demonstration cities, while non-pilot regions face a deployment deadlock due to "refueling difficulties," reflecting a fragmented market. Seasonal and Unconventional Disturbances. The Chinese New Year holiday led to capacity contraction in January and February, yet the counter-trend surge in February sales exposed the dominance of unconventional factors, such as massive purchases by large clients. The subsequent return to normal low ebb reveals insufficient sustained demand. Cost and Economic Viability Constraints. The cost reduction of fuel cell systems has fallen short of expectations, and coupled with hydrogen price fluctuations, B-end users are highly sensitive to operating costs, suppressing their willingness to purchase vehicles and hindering demand release. III. H2 Outlook: Winter Will Pass, Recovery in Sight. Based on the weak performance in H1 and historical patterns, H2 is expected to show a "low before high, mild recovery" trend. Q3: A period of digesting inventories and waiting for the right opportunities. Monthly production and sales may remain in the 100-200 unit range, as enterprises wait for policy implementation or the launch of new demonstration projects. Q4: Traditional peak season combined with a policy window period could bring a "corrective rebound." While it will be difficult to replicate the peak of 3,000 units per month seen in 2025, there is a high probability of monthly production and sales returning to the 500-1,000 unit range, and the industry will regain growth momentum. SMM believes that the "data winter" of H1 2026 represents the necessary path for the industry to bid farewell to feverish growth and return to rationality. After the bubbles are squeezed out, true competitiveness will be distilled through technological iteration, infrastructure improvement, and scene implementation efficiency. In H2, as policy tailwinds gradually emerge and infrastructure weak links are addressed, the market is expected to stabilize by the end of Q3, with recovery dawning in Q4.