In early to mid-August 2026, CAAM and the CPCA Passenger Car Association successively released relevant data on the auto market for July 2026. CAAM stated that in July, the auto market entered the traditional off-season, with foot traffic and orders naturally pulling back. This was compounded by factors including some demand being brought forward and released by the mid-year sales push, persistent nationwide high temperatures, and typhoons and flooding in certain regions affecting offline sales, resulting in a seasonal pullback MoM and a slight decline YoY. Among them, exports continued to maintain rapid growth, with monthly exports exceeding 1 million units for two consecutive months, and the share of NEV exports exceeding 50% for two consecutive months...... SMM compiled relevant data on the auto and battery markets for July 2026 for readers’ reference. Auto Market CAAM: Auto production and sales declined both MoM and YoY in July; the decline in January-July narrowed further versus H1 In July, auto production and sales totaled 2.573 million units and 2.584 million units, down 6.8% and 8% MoM, and down 0.7% and 0.3% YoY, respectively. From January to July, auto production and sales totaled 17.567 million units and 17.602 million units, both down 3.7% YoY, with the decline narrowing further versus H1. CAAM: NEV production and sales both rose over 20% YoY in July; from January to July, NEV new-vehicle sales reached 51.2% of total new-vehicle sales In July, NEV production and sales totaled 1.576 million units and 1.561 million units, up 26.8% and 23.7% YoY, respectively . NEV new-vehicle sales reached 60.4% of total new-vehicle sales. From January to July, NEV production and sales totaled 9.014 million units and 9.007 million units, up 9.5% and 9.6% YoY, respectively , and NEV new-vehicle sales reached 51.2% of total new-vehicle sales. CAAM: Auto exports exceeded 1 million units for two consecutive months; the share of NEV exports exceeded 50% for two consecutive months In July, auto exports were 1.043 million units, up 0.6% MoM and up 81.3% YoY . From January to July, auto exports were 6.14 million units, up 66.8% YoY. In July, NEV exports were 553,000 units, up 5.7% MoM and up 1.5x YoY ; traditional fuel vehicle exports were 490,000 units, down 4.6% MoM and up 40% YoY. From January to July, NEV exports were 2.909 million units, up 1.2x YoY; traditional fuel vehicle exports were 3.231 million units, up 36.2% YoY. Regarding the auto market in July, CAAM analyzed that in July, the auto market entered the traditional sales off-season, with foot traffic and orders naturally pulling back. Coupled with factors such as some demand being released early due to the mid-year sales push, persistent nationwide high temperatures, and typhoons and flood disasters in some regions affecting offline sales, the market showed a seasonal pullback on a MoM basis and edged down YoY. Exports continued to maintain rapid growth, with monthly exports exceeding 1 million units for two consecutive months, and the share of NEV exports exceeding 50% for two consecutive months; the share of NEVs in monthly new-car sales exceeded 60% for the first time, and the cumulative share exceeded 50% for the first time. On July 30, the Political Bureau of the CPC Central Committee convened a meeting to deploy economic work for H2, explicitly proposing to implement a more proactive fiscal policy and a moderately accommodative monetary policy, fully leverage the effectiveness of existing policies, and promptly plan and introduce pragmatic and effective incremental policy, while stepping up countercyclical adjustments. It called for effectively expanding domestic demand and fostering a fair and orderly market competition environment. The meeting made a series of important deployments, releasing multiple positive signals that will help stabilize confidence, boost consumption, and promote the steady operation of the industry. Meanwhile, the CPCA also released relevant data for the passenger car market in July. In July 2026, nationwide passenger car market retail sales were 1.461 million units, down 20.9% YoY and down 8.8% MoM; cumulative retail sales since the beginning of this year were 10.173 million units, down 20.3% YoY. In July 2026, China’s passenger car market showed an operating trend of “total volume remaining under pressure, weakening MoM, and an extremely polarized structure,” with the off-season downturn becoming more pronounced and the industry’s structural adjustment further deepening. For passenger NEVs, in July, passenger NEV market retail sales were 951,000 units, down 3.9% YoY and down 5.8% MoM; from January to July, passenger NEV market retail sales were 5.668 million units, down 12.5% YoY. In July, retail sales of conventional fuel passenger cars were 510,000 units, down 41% YoY and down 14.2% MoM; among them, regular hybrid car models were down only 4% YoY and down 5% MoM. In terms of NEV exports, in July, passenger NEV exports were 540,000 units, up 147.8% YoY and up 8.1% MoM . They accounted for 58.8% of passenger car exports, up 14 percentage points compared to the same period last year; among them, BEVs accounted for 59.5% of NEV exports (65.1% in the same period last year), and A00+A0-class BEVs, the core focus, accounted for 42.2% of BEV exports (36.6% in the same period last year). As the scale advantage of China’s NEVs becomes evident and market expansion needs grow, new energy brand products made in China are increasingly going global, with recognition outside China continuing to rise. Among them, narrow PHEVs accounted for 35.9% of new energy exports (32.4% in the same period last year), and range-extended vehicles accounted for 4.6% (2.5% in the same period last year). Although there have recently been some disruptions from external countries, exports of domestically branded narrow PHEVs to developing countries have grown rapidly, with a promising outlook. The CPCA stated that in July 2026, China’s passenger vehicle market showed an operating trend of “overall volume remaining under pressure, weakening MoM, and extremely polarized structure,” with the off-season downturn becoming more pronounced and the industry’s structural adjustment further deepening. The weakening auto market in July 2026 resulted from the combined resonance of multiple factors, including a rebound in oil prices, macro weakness, the seasonal off-season, earlier demand being pulled forward, and policy transitions. Geopolitical conflicts disrupted navigation through the Strait of Hormuz, driving international oil prices to drift higher; in 2026, China’s domestic gasoline prices were cumulatively raised by 1,575 yuan/mt, significantly increasing driving costs. Consumer demand for internal combustion engine passenger vehicles contracted sharply, while the impact on commercial vehicles was minimal. Meanwhile, July CPI and PPI pulled back MoM and PMI sentiment weakened; residents’ income and consumption expectations were relatively cautious, willingness to purchase big-ticket durables remained subdued, and spending on housing and travel continued to weaken, dragging down end-use demand in the auto market. In addition, the July off-season high temperatures suppressed offline store traffic, and June’s mid-year sales push pulled demand forward, causing terminal orders and foot traffic to pull back in tandem. Moreover, the new national safety standard for new energy was formally implemented, raising the industry’s technical threshold, and the short-term exit the market of low-end car models disrupted the market. However, the July Politburo meeting made clear stronger fiscal support and intensified policies to expand domestic demand and boost consumption, providing a floor for the auto market; the current downturn is a phased, structural fluctuation rather than a trend-level deterioration of the industry. Overall, the passenger vehicle market in July 2026 showed five salient characteristics: (1) Overall volume remained under pressure and structural divergence was amplified to the extreme; “deep cooling in internal combustion engine vehicles and strong leadership by new energy” became the core market theme, and oil price fluctuations dictated the pace of “ICE-to-NEV substitution”; (2) Internal combustion engine vehicles contracted across the board, with pure ICE models nearly stalling while hybrid models were relatively resilient, leading to continued optimization of the internal structure of ICE vehicles; (3) The penetration rate of new energy continued to hit new highs, with compliant products under the new national standard launched in concentrated iterative cycles on the supply side, and the industry shifted comprehensively from price involution to value competition; (4) Exports continued to play a stabilizing role, effectively steadying automakers’ wholesale and capacity and easing pressure from weak domestic retail; (5) Industry inventory continued to be reduced in a healthy manner, with producer and channel inventory declines widening in tandem, overall inventory risks fully released, operating pressure easing steadily, and overall resilience partially recovering. Power batteries From January to July, China’s cumulative production of power batteries and ESS batteries totaled 1,286.9 Gwh, up 54.9% YoY. In July, China’s combined production of power batteries and ESS batteries was 218.0 Gwh, up 5.8% MoM, up 62.9% YoY . From January to July, China’s cumulative production of power and ESS batteries totaled 1,286.9 GWh, up 54.9% YoY on a cumulative basis. From January to July, China’s cumulative exports of power and ESS batteries reached 216.6 GWh, up 43.9% YoY on a cumulative basis In July, China’s combined exports of power and ESS batteries totaled 35.2 GWh, down 2.7% MoM , up 51.7% YoY , accounting for 19.0% of monthly sales. Of this total, power battery exports were 24.0 GWh, accounting for 68.0% of total exports, down 6.0% MoM and up 62.1% YoY; ESS battery exports were 11.3 GWh, accounting for 32.0% of total exports, up 4.9% MoM and up 33.4% YoY. From January to July, China’s cumulative exports of power and ESS batteries reached 216.6 GWh, up 43.9% YoY on a cumulative basis , accounting for 18.6% of cumulative sales. Of this total, cumulative power battery exports were 146.7 GWh, accounting for 67.7% of total exports, up 52.1% YoY on a cumulative basis; cumulative ESS battery exports were 69.9 GWh, accounting for 32.3% of total exports, up 29.3% YoY on a cumulative basis. From January to July, China’s cumulative power battery installations totaled 410.2 GWh, up 15.4% YoY on a cumulative basis In July, China’s power battery installations were 74.6 GWh, down 2.5% MoM , up 33.5% YoY. Of this total, ternary battery installations were 11.1 GWh, accounting for 14.9% of total installations, down 12.1% MoM and up 1.8% YoY; LFP battery installations were 63.1 GWh, accounting for 84.6% of total installations, down 1.0% MoM and up 40.5% YoY. From January to July, China’s cumulative power battery installations totaled 410.2 GWh, up 15.4% YoY on a cumulative basis. Of this total, cumulative ternary battery installations were 74.5 GWh, accounting for 18.2% of total installations, up 12.1% YoY on a cumulative basis; cumulative LFP battery installations were 335.1 GWh, accounting for 81.7% of total installations, up 16.0% YoY on a cumulative basis. In July, Leap Motor Deliveries Surpassed 100,000; BYD’s Overseas Sales Hit Another Record High Among new automakers in July, Leap Motor continued to gain momentum, with deliveries reaching 101,267 units in July , up 102% YoY, surpassing the 100,000 mark for the first time on a monthly basis , becoming the first new automaker brand in China to achieve monthly deliveries exceeding 100,000 units, and ranking among the leaders across the entire new energy industry. The second-ranked NEV startup automaker was XPeng Group. In July, XPeng Group delivered a total of 38,027 vehicles, up about 4% YoY . As of July, XPeng Group’s cumulative global deliveries surpassed 1.2 million units. In terms of charging stations, as of July 31, XPeng charging covered 430 cities, with more than 3,800 cumulative self-operated charging stations, including over 3,300 self-operated ultra-fast charging stations, continuously providing users with a more convenient and efficient charging experience. NIO delivered a total of 35,934 vehicles in July, up 71.0% YoY. Of these, the NIO brand delivered 20,008 vehicles, up 57.9% YoY; the ONVO brand delivered 10,155 vehicles, up 69.9% YoY; and the firefly brand delivered 5,771 vehicles, up 143.9% YoY. In the first seven months of 2026, NIO delivered a total of 227,057 vehicles, a record high, up 68.0% YoY, with all three brands setting record highs in deliveries over the first seven months. The NIO brand delivered 139,496 vehicles, up 60.1% YoY; the ONVO brand delivered 52,618 vehicles, up 39.1% YoY; and the firefly brand delivered 34,943 vehicles, up 242.3% YoY. To date, NIO has delivered a cumulative total of 1,224,649 vehicles. Li Auto delivered 30,468 vehicles in July. As of July 31, 2026, Li Auto’s cumulative historical deliveries totaled 1,764,155 vehicles. Li Auto said that as of July 31, 2026, it had 490 retail centers nationwide, covering 159 cities; and 536 after-sales maintenance centers and authorized service centers, covering 219 cities. Li Auto had put into use 4,141 Li Auto supercharging stations nationwide, with 22,841 charging piles. As for Xiaomi Auto, its July deliveries again exceeded 30,000 units. To date, Xiaomi Auto has delivered more than 30,000 units for four consecutive months. Notably, since officially entering the automotive market in 2024, Xiaomi Auto has launched two car models, including the SU7 and YU7. As of month-end July, the two car models had delivered a cumulative total of over 700,000 units. As for EV leader BYD, its July sales reached 419,211 units, with exports of nearly 180,000 units, setting another record high. From January to July 2026, cumulative sales totaled 2,227,722 units, and cumulative NEV sales exceeded 17.3 million units. In July 2026, BYD exported 180,538 NEVs. In the same month, NEV production was 420,249 units, versus 317,892 units in the same period last year; cumulative production this year totaled 2,234,379 units, versus 2,454,925 units last year, down 8.98% on a cumulative YoY basis. Sales totaled 419,211 units, versus 344,296 in the same period last year; cumulative sales this year reached 2,227,722 units, versus 2,490,250 last year, down 10.54% YoY on a cumulative basis. Looking ahead to August, the CPCA expected the overall passenger car market in August 2026 to show an operating pattern of “weak recovery in total volume and sharp structural divergence.” With 21 production-and-sales working days compounded by the off-season of extreme heat, the end-use market’s recovery pace remained mild, and a mix of macro and industry factors jointly shaped the market landscape. Affected by disruptions to navigation through the Strait of Hormuz, international oil prices drifted higher in July, and China’s refined oil prices were raised by nearly 985 yuan/mt in total across two rounds, significantly lifting the costs of using and maintaining internal combustion engine vehicles and continuing to suppress users’ willingness to purchase them. Demand for traditional internal combustion engine vehicles continued to weaken, which also became a key external tailwind for new energy vehicles to strengthen against the trend, continuously expanding growth room for new energy car models in China and in markets outside China. Overall, the CPCA expected the auto market in August to be in a bottoming phase of rebuilding momentum and recovery. As various policies to stabilize consumption were gradually implemented, together with a gradual improvement in the base effect, the decline in the passenger car market was expected to narrow steadily, and the industry was set to formally enter a mature development stage of “value-driven growth and structural optimization,” building momentum and paving the way for the traditional September-October peak season.

SMM August 21 News: This week, spot prices along the cobalt industry chain largely remained in the doldrums. Refined cobalt prices continued to grind lower under the influence of weak market sentiment and demand. Although import data fell short of expectations, the rebound was limited. On the cobalt salt side, cobalt sulphate prices declined for five consecutive trading days, with cost support clearly shifting downward. Quotes for primary and recycled materials continued to ease, and downstream enterprises showed a strong desire to bargain down prices. The cobalt chloride and Co3O4 markets continued their sluggish pattern... SMM compiled the price movements of cobalt products this week, as follows: side: According to SMM spot quotes, refined cobalt spot prices fell notably this week. As of August 21, refined cobalt spot prices temporarily stabilized at 300,000-310,000 yuan/mt, with the average price at 305,000 yuan/mt, down 21,500 yuan/mt from 326,500 yuan/mt on August 14, a decline of 6.58%. 》View SMM cobalt-lithium spot quotes According to SMM, the refined cobalt futures continued to grind lower this week, with the spot price center further declining. On the supply side, mid-week, affected by market expectations before the release of customs data, some funds pre-traded a significant increase in China's cobalt intermediate product imports, causing a relatively large pullback in futures. Although the final imports were lower than market forecasts, leading to a slight rebound in prices, the rebound was very limited due to the current weak demand, and prices remained at low levels. After the rapid price decline, most smelters and traders have suspended external quotes, and the market is in a wait-and-see sentiment. On the demand side, downstream enterprises are still in the summer break period, with weak purchase willingness and only maintaining small-volume restocking for essential needs. Market transaction sentiment was generally sluggish. In the short term, SMM believes that the market is still in the off-season, demand support is limited, coupled with weak market sentiment, refined cobalt prices may continue to consolidate at lows. Future attention should be paid to changes in downstream restocking pace after the summer break. Cobalt intermediate product prices side: According to SMM spot quotes, cobalt intermediate product spot quotes remained stable this week. As of August 21, cobalt intermediate product (CIF China) spot quotes temporarily stabilized at $21-22/lb, with the average price at $21.5/lb. According to SMM, the cobalt intermediate product market remained in a stalemate this week, with prices lacking transaction guidance. July customs data showed that China's cobalt intermediate product imports were 16,100 mt in physical content (about 5,000 mt in metal content), slightly below market expectations, but had limited impact on the current supply-demand pattern. Miners' tender intentions remain at $21-22/lb, while downstream psychological price levels have pulled back to $17-19/lb, with no narrowing of the price spread, and tenders continue to be unsuccessful. Some miners started adjusting strategies, considering suspending direct sales and switching to toll processing to produce refined cobalt for sale. In the short term, the tug-of-war between upstream and downstream continues. SMM expects that stabilization of cobalt intermediate product prices still awaits substantial transactions. Cobalt salt side ( and ): : According to SMM spot price quotes, spot cobalt sulphate prices also could not escape the decline this week. After falling for five consecutive trading days, spot cobalt sulphate prices fell to 72,000-75,000 yuan/mt, with the average price at 73,500 yuan/mt, down 5,000 yuan/mt from 78,500 yuan/mt on August 14, a drop of 6.37%. In the spot market, according to SMM, the cobalt sulphate market continued in the doldrums this week, with cost support further moving down, and the psychological price spread between buyers and sellers not narrowing. Supply side quotations remained divergent: primary smelters, constrained by earlier high-priced raw material inventory, maintained quotations at 75,000-80,000 yuan/mt, but the MHP cobalt coefficient has recently pulled back to around 73% discount, and the immediate production cost has dropped to about 70,000 yuan/mt, significantly weakening cost support. Some enterprises may consider selling at a discount above 70,000 yuan/mt in the future. For recycling materials, mainstream quotations were at around 93-95% of SMM low-end prices. Some enterprises with financial constraints further lowered prices to 68,000-70,000 yuan/mt, and individual low-quality cargoes were heard at around 65,000 yuan/mt. Demand side remained sluggish. Cobalt tetroxide enterprises reduced their indicative prices for low-nickel cobalt sulphate to 68,000-70,000 yuan/mt, some ternary precursor enterprises pressed indicative prices for medium-high nickel cobalt sulphate to around 65,000 yuan/mt, but the actual price spread between buyers and sellers remained large, and transactions remained limited. In the short term, SMM believes that the cobalt sulphate market is still in a bottom-seeking phase, and price stabilization still awaits the release of downstream concentrated restocking demand. side: According to SMM spot price quotes, spot cobalt chloride prices remained stable this week. As of August 21, spot cobalt chloride prices held steady at 87,000-91,000 yuan/mt, with the average price at 89,000 yuan/mt, maintaining stable operation compared to August 14. In the spot market, according to SMM, the cobalt chloride market continued its sluggish pattern this week, with actual transactions showing little improvement. On the supply side, to alleviate cash flow constraints and loss reduction pressure, some enterprises have slightly softened their offer prices to seek destocking, but downstream purchasing sentiment was weak, and the transaction growth driven by price cuts was extremely limited. Demand side, Co3O4 enterprises remained constrained by high inventory, and with no signs of recovery in end-use consumption, the procurement pace remained stagnant. In the short term, SMM expects cobalt chloride prices to continue to drift lower. side: According to SMM spot quotations, after declining in the week before last, Co3O4 spot quotes stabilized this week. As of August 21, Co3O4 spot quotes were tentatively stable at 275,000-300,000 yuan/mt, with the average price at 287,500 yuan/mt, flat from August 14. In the spot market, according to SMM, the Co3O4 market sentiment remained sluggish this week, with sporadic transactions. On the supply side, most smelters continued low-load operations under the conditions of high inventory, thin margins, and lingering concerns over inventory buildup. On the demand side, although cathode material producers made sporadic inquiries, firm orders were scarce. Existing raw material inventory was moderate enough to meet short-term production, and there was no urgency to restock. On balance, SMM expects that the broad trend of Co3O4 prices under pressure to weaken in the short term is unlikely to change. On the news front, This week, cobalt product import and export data were released. According to customs data, China's cobalt hydrometallurgy intermediate product imports in July 2026 were approximately 16,174 mt in physical content, up 48% MoM and up 17% YoY. Among them, imports from DRC were approximately 15,970 mt in physical content, up 48% MoM and up 21% YoY. The average import price of China's cobalt hydrometallurgy intermediate products in July 2026 was $17,915/mt in physical content, up 9.56% MoM. This month, about 10,046 mt in physical content of intermediate products imported from DRC entered Zhejiang and Guangdong provinces via Entrepot Trade by Customs Special Control Area, accounting for 62.9% of total imports; Ordinary Trade accounted for about 4,243 mt, or 26.6%; processing trade with imported materials accounted for about 1,681 mt, or 10.5%. In addition, China imported a total of 204 mt in physical content of intermediate products from Russia and Zambia via Ordinary Trade this month.

According to China Customs data, China's rare earth permanent magnet (REPM) exports reached 5,375 tons​ in July 2026, down 4% MoM​ and 3.6% YoY. Total exports for January-July amounted to 36,880 tons, with a monthly average of 5,268 tons, aligning with SMM's earlier projections. SMM maintains its full-year 2026 REPM export forecast at approximately 61,600 tons, representing a YoY increase of about 7%.

SMM August 21 News: This week, Pr-Nd alloy prices first declined and then rebounded. At the beginning of the week, prices continued to be in the doldrums, before stopping falling and rebounding toward the weekend. As of 17:00 Friday, Pr-Nd alloy was reported at 880,000 yuan/mt, up 10,000 yuan/mt from Thursday afternoon, flat compared with Friday morning. Today, Pr-Nd alloy stopped falling and followed the upward trend driven by the sharp raise in Pr-Nd oxide prices. This was mainly due to a large enterprise's procurement of Pr-Nd oxide yesterday, which quickly tightened low-priced supply on the market. Suppliers successively raised their quotes, and alloy enterprises followed suit with upward adjustments under the support of oxide costs, making low-priced materials hard to find. However, inquiry activity in the afternoon declined from yesterday, and downstream magnetic material enterprises were cautious in procurement, with limited actual transactions following up. Reviewing the weekly trend, Pr-Nd alloy prices this week showed a pattern of "first declining then rebounding": prices moved steadily at the start of the week, then weakened slightly from Tuesday as Pr-Nd oxide prices pulled back, hitting the week's low of 870,000 yuan/mt on Thursday. Toward the weekend, driven by the large enterprise's procurement of Pr-Nd oxide, prices rebounded strongly on Friday, rising 10,000 yuan/mt in a single day. As of 17:00 Friday, Pr-Nd alloy closed at 880,000 yuan/mt, up 5,000 yuan/mt from last Friday (875,000 yuan/mt), a WoW increase of 0.57%, halting the previous several weeks of decline and turning losses into gains. From the cost side, the cash cost of Pr-Nd alloy this week fell about 1,655 yuan/mt WoW, a decrease of about 0.19%, as cost pressure continued to ease; calculated based on Friday's closing price, the net profit per mt was about 6,700 yuan/mt, significantly expanded from last week, and profitability continued to improve. During the week, downstream magnetic material enterprises remained cautious in inquiries and procurement, with sluggish market trading activity. In mid-week, raw material prices were in the doldrums; some traders sold at low prices, and although alloy enterprises lowered their quotes accordingly, they were determined to hold prices firm, which narrowed the actual declines. Toward the weekend, raw material prices stopped falling and rebounded; alloy enterprises raised quotes accordingly, low-priced materials were hard to find, and trading activity recovered somewhat. In the short term, on the demand side, the "high-temperature holidays" of end-user motor enterprises are gradually ending, and with the approach of the traditional September-October peak season, top magnetic material enterprises have favorable expectations for order production schedules. The market holds strong expectations for downstream restocking and stockpiling. However, it remains to be seen whether the peak season demand expectations will be realized, as well as the release pace of new capacity for Pr-Nd oxide on the cost side. Pr-Nd alloy prices are expected to drift higher in a range sideways.

SMM August 21, 2026 — China's praseodymium-neodymium (NdPr) oxide market followed a "weakened first, recovered later" pattern this week (August 17-21). From Monday to Thursday, spot prices drifted lower under pressure from volatile futures and cautious downstream purchasing, with the average price easing from around CNY 722,000/mt (about 107,400/mt) to roughly CNY 718,000/mt (106,800/mt). On Friday, major producers re-entered the market to buy, sentiment improved markedly and holders raised offers across the board, lifting the average price to CNY 726,500/mt (about $108,100/mt) — a sharp one-day rebound. (Exchange rate: 1 USD = 6.72 CNY, August 21, 2026) 1. Weekly market review NdPr oxide prices fell early in the week before rebounding on Friday. On Monday, the market opened stable: the quoted range held at CNY 720,000-724,000/mt (107,100-107,700/mt), flat with the previous Friday, though trading was thin. On Tuesday, futures volatility dragged spot offers down after midday and the market broke below the CNY 720,000/mt threshold, with the average easing to CNY 718,000/mt. Wednesday saw a stable but weak session at CNY 718,000-720,000/mt. On Thursday, prices continued to edge lower, hitting a weekly low of CNY 718,500/mt on average, with the range narrowing to CNY 717,000-720,000/mt. On Friday, major buyers' entry into the market quickly absorbed low-priced cargo, holders raised offers across the board and the average price jumped to CNY 726,500/mt, in a range of CNY 725,000-728,000/mt (107,900-108,300/mt) — a single-day gain of about CNY 8,000/mt (+1.1%) that largely recouped the week's losses. 2. Key drivers 1. Futures volatility remains the main transmission channel for spot sentiment. From the start of the week through midweek, fluctuations in NdPr oxide futures repeatedly shaped spot sentiment; Tuesday's afternoon pullback in the futures market directly dragged spot offers lower and turned the mood bearish. On Friday, news of major buyers' procurement pushed futures up and spot followed. Futures-spot linkage was the dominant price driver this week. 2. Cautious downstream buying met with traders' low-price sales. From Monday to Thursday, metal producers showed little appetite to purchase, inquiries were scarce and trading remained subdued, while some traders kept selling at low prices and capped any rebound. Once low-priced cargo tightened on Friday, holders' willingness to sell cheap fell sharply. 3. Major buyers' procurement was the turning point. On Friday, large producers entered the market for NdPr oxide, inquiries picked up notably, holders raised offers and low-priced cargo became hard to find — the direct catalyst behind the market's shift from weak to firm. 4. Upstream and downstream diverged. Rare earth ore circulation remained sluggish overall and ore prices kept easing, while the oxide segment stabilized and recovered on support from major buyers. Demand from magnet material makers was mixed through the week — "clearly improving" feedback on Monday faded thereafter, and by Friday buyers turned cautious again — suggesting downstream transmission is not yet solid. 3. Outlook In the near term, major buyers' procurement provides solid support for NdPr oxide prices: low-priced cargo has tightened, holders are quoting firmly, and the price center is likely to hold above CNY 725,000/mt. Two risks need watching, however. First, inquiry activity had already cooled by Friday afternoon, magnet makers remained cautious and actual transaction follow-through was limited. Second, futures volatility could return — if futures pull back, spot prices face downside risk again. Key factors to track: whether major buyers sustain their purchasing, the durability of the recovery in magnet material orders, and the direction of NdPr oxide futures. Until demand forms a clear uptrend, prices are expected to remain range-bound with a modestly firmer bias.

[Secondary Lead Market Update] This week, the rebound in lead prices drove a marginal recovery in secondary lead losses. As of August 21, the comprehensive profit/loss of SMM large-scale secondary lead enterprises was -263 yuan/mt, while that of small and medium-scale enterprises was -443 yuan/mt. Tight supply of scrap batteries supported raw material costs, limiting profit repair.