Recently, Hunan Angzhu Environmental Protection Technology Co., Ltd. signed an APP advertising cooperation agreement with SMM (Shanghai Metals Market). This partnership aims to expand pragmatic cooperation and promote industry exchange, thereby achieving deepened collaboration, market expansion, and mutual benefit. Going forward, SMM will leverage its advantages as a leading non-ferrous metals industry service platform to provide Hunan Angzhu Environmental Protection Technology Co., Ltd. with a one-stop online marketing solution through comprehensive online display, forming a virtuous cycle between production and market, and realizing mutual value for both parties. Hunan Angzhu Environmental Protection Technology Co., Ltd. was established in 2018 and is located at No. 1 Xincheng Road, Leiyang City, Hengyang City, Hunan Province. It is a comprehensive enterprise specializing in non-ferrous metal deep processing and trade sales. Hunan Angzhu Environmental Technology Co., Ltd. was established in 2018 and is located at No. 1 Xincheng Road, Leiyang City, Hengyang City,Hunan Province. it is a comprehensive enterprise specializing in non-ferrous metal deep processing and trade sales. With pyrometallurgy #1 lead as its core product, the company has an annual capacity of 200,000 mt (based on pyrometallurgy #2 refined lead). It also engages in primary lead, lead-calcium alloy, lead-antimony alloy, secondary lead, and secondary refined lead businesses, building an entire industry chain service system from raw material procurement to finished product sales. Taking Pyrometallurgical Grade 1 Lead as its core product, the company has an annual production capacity of 200,000 tons (calculated by Pyrometallurgical Grade 2 Lead). It also engages in businesses such as electrolytic lead, lead-calcium alloy, lead-antimony alloy, recycled lead and recycled refined lead, and has built a full-industry-chain service system from raw material procurement to finished product sales. Core Strengths 1 Environmental Protection First Actively responding to the national call for green development, the company has invested in the construction of integrated environmental protection production facilities to achieve the recycling of wastewater, waste gas, and waste residue, creating a modern factory with "zero pollution and low energy consumption" and being awarded as a provincial-level green production demonstration unit. Actively responding to the national call for green development, the company has invested in the construction of integrated environmental protection production facilities to realize the recycling of wastewater,waste gas and waste residue, creating a modern factory with "zero pollution and low energy consumption" and being awarded as a provincial-level green production demonstration unit. 2 Technology-Driven The core management team has 20 years of industry experience, has established a three-level quality inspection system, and has obtained ISO9001 quality management system certification, with product purity reaching over 99.996%. Through intelligent equipment upgrades, production efficiency has increased by 40%, saving over 20 million yuan in annual production costs. The core management team has 20 years of industry experience, has established a three-level quality inspection system and has obtained ISO9001 quality management system certification, with product purity reaching over 99.996%. Through the intelligent transformation of equipment, production efficiency has increased by 40%, saving more than 20 million yuan in annual production costs. 3 Social Responsibility The company has cumulatively created over 200 jobs and was awarded the title of "Outstanding Enterprise in Employment Contribution of Hengyang City." It has established industry-university-research cooperation with Central South University and trained over 50 professional and technical talents. It has created more than 200 jobs cumulatively and was awarded the title of "Outstanding Enterprise in Employment Contribution of Hengyang City".It has established industry-university-research cooperation with Central South University and trained more than 50 professional and technical talents. Business System • Raw Material Procurement: Crude lead, secondary crude lead • Main Products: Pyrometallurgy #1 lead (national standard GB/T 469-2023), primary lead, alloy lead • Trade Services: Providing value-added services such as warehousing and logistics, futures hedging, and supply chain finance Development Vision Adhering to the business philosophy of "Quality Builds Brand, Innovation Leads the Future," the company plans to establish a provincial-level technology center by 2026 and strives to become a benchmark enterprise in non-ferrous metal deep processing in Central China. We sincerely invite colleagues from all walks of life to visit and guide us for common development! Adhering to the business philosophy of "Quality Builds Brand, Innovation Leads the Future", the company plans to establish a provincial-level technology center by 2026 and strive to become a benchmark enterprise in non-ferrous metal deep processing in Central China. We sincerely invite colleagues from all walks of life to visit and guide us for common development! Contact Information Lin Yuancai 139757991777/18768272777 SMM Contact Cao Juanjuan caojuanjuan@ly10000.com 19521491689

SMM May 23: Metals market: Overnight, domestic market base metals mostly rose. SHFE copper gained 0.58%. SHFE aluminum fell 0.14%, SHFE lead rose 0.3%. SHFE zinc dipped 0.16%. SHFE tin rose 1.09%. SHFE nickel gained 0.49%. In addition, the most-traded alumina futures contract fell 0.77%, and the most-traded foundry aluminum futures contract slipped 0.06%. Overnight, ferrous metals mostly fell. Iron ore was flat at 792.5 yuan/mt, stainless steel rose 0.34%, rebar edged down 0.09%, and hot-rolled coil fell 0.15%. Coking coal and coke: coking coal extended its decline for a third consecutive trading day, falling 1.45%, while coke dropped 0.95%. Overnight overseas metals market, LME base metals rose across the board. LME copper gained 0.18%. LME aluminum rose 0.45%, LME lead rose 0.4%. LME zinc edged up 0.06%. LME tin rose 1.16%. LME nickel gained 0.67%. Overnight precious metals : COMEX gold fell 0.7%, posting a second consecutive weekly decline with a weekly loss of 1.13%; COMEX silver fell 1.06%, declining for two consecutive weeks with a weekly loss of 2.1%. Overnight, the most-traded SHFE gold futures contract fell 0.1%, posting a second consecutive weekly decline with a weekly loss of 2.13%; the most-traded SHFE silver futures contract rose 0.51%, while SHFE silver declined for two consecutive weeks with a weekly loss of 7.81%. As of 8:31 AM on May 23, overnight closing prices: Macro front China: [PBOC: 600 billion yuan MLF operation to be conducted on May 25] PBOC: To maintain ample liquidity in the banking system, on May 25, 2026, the PBOC will conduct a 600 billion yuan MLF operation with a fixed quantity, interest rate tender, and multiple-price winning method, with a maturity of one year. [CSRC: Crackdown on illegal cross-border securities operations; investors' property safety unaffected by the rectification] Xinhua News Agency reported that recently, with the approval of the State Council, the CSRC and seven other departments jointly issued the "Implementation Plan for Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Business Activities." Regarding this rectification, all parties are highly concerned about how the legitimate rights and interests of existing investors will be protected. In this regard, the plan emphasized that investors' property safety will not be affected by the rectification. A CSRC official stated that the plan specified numerous measures to safeguard the legitimate rights and interests of existing investors. For example, a two-year concentrated rectification period will be set up to phase out relevant domestic services of overseas institutions. Overseas institutions are required to properly communicate with investors affected by the rectification measures in China and arrange account disposal to ensure client property safety. [HKSFC: Enhanced Measures to Address Forged Document and Money Laundering Risks and Raise Account Opening Standards] The Hong Kong Securities and Futures Commission (SFC) issued a circular on May 22, setting out the monitoring measures that should be implemented when opening accounts and maintaining customer relationships. The circular was issued following the SFC's review of account opening practices at 12 securities brokerages. The review identified several significant deficiencies, including inadequate due diligence on account opening documents, acceptance of suspicious or forged documents during the account opening process, and weaknesses in managing cross-border correspondent relationships with ex-China intermediaries. (Wallstreetcn) US dollar: The US dollar index rose 0.12% overnight, closing at 99.32. On a weekly basis, the US dollar index posted its second consecutive weekly gain, up 0.04% for the week. The 17th Fed Chairman Warsh was sworn in at the White House on Friday. Warsh stated: "The Fed's mission is to promote price stability and full employment." He said, "When these goals are pursued with wisdom and clarity, independence and resolve, inflation can be lower, economic growth can be stronger, real take-home wages can be higher, America can be more prosperous, and just as importantly, America's standing in the world can be more secure." He added: "To fulfill this mission, I will lead a reform-oriented Fed that learns from past successes and mistakes, breaking free from static frameworks and models while adhering to clear standards of integrity and performance." (Jin10 Data) Fed Governor Waller's hawkish remarks put US Treasury prices under pressure, with money markets fully pricing in a 25-basis-point interest rate hike in 2026. The most significant policy signal on Friday came from Fed Governor Waller. On Friday local time, Fed Governor Waller stated that as the energy shock from the Iran war pushes prices higher, he supports making it clear that the Fed's next rate move is as likely to be a hike as an interest rate cut. Waller said his current stance is to remain patient and keep rates unchanged until the impact of the war becomes clearer, but he warned on Friday that he does not rule out the possibility of future rate hikes if inflation does not begin to slow down soon. Waller's remarks were released almost simultaneously with the swearing-in of new Fed Chairman Warsh. The interest rate environment Warsh currently faces is notably more hawkish than the Fed's internal dot plot expectations. (Wallstreetcn) "Fed whisperer" Nick Timiraos wrote that there were several key moments during Kevin Warsh's swearing-in ceremony at the White House: ① Trump asked Warsh to be "completely independent."Trump said, "(I hope he) doesn't look at me, doesn't look at anyone." ② Just two minutes later, Trump offered some "suggestions," indicating the economic direction he hoped to see: "Strong economic growth doesn't need to be cooled down," "Economic growth doesn't mean inflation," and "I hope the economy booms to unprecedented levels, because there is indeed some debt that needs to be dealt with." ③ Trump hinted that the Fed's decision-makers would "converge." He said other Fed policymakers "will make their own decisions, but they will listen to Kevin's views throughout," even those "whose positions differ slightly." ④ Waller referenced Greenspan, not Bernanke. Waller looked back at history, recalling the scene of Greenspan being sworn in at the White House in 1987, and pledged to "begin work with abundant energy and a sense of mission, just as Chairman Greenspan did." He did not mention former Chairman Bernanke, with whom he had worked for five years during his previous tenure as a governor. (Jin10 Data) In addition, affected by the Iran war, the US consumer confidence index in May fell to a historic low, and long-term inflation expectations also deteriorated significantly. Data showed that the University of Michigan's final consumer sentiment index for May dropped to 44.8, with consumers expecting prices to rise at an annualized rate of 3.9% over the next five to ten years, up from 3.5% in April and hitting a seven-month high. They also expected prices to rise 4.8% over the next year. Gasoline prices continued to hover near their highest levels since 2022, exacerbating Americans' concerns about rising living costs and the failure to reach an agreement to end the war. The impact of inflation on household budgets, particularly for low-income consumers, poses risks to the future consumption outlook. Joanne Hsu, the survey director, stated: "The cost of living remains the top concern for people, with 57% of respondents voluntarily noting that high prices are eroding their personal finances, up from 50% the previous month." She stated: "The key point is that consumers appear to worry that inflation will not only spread beyond fuel prices to other areas, but that this upward trend will persist well into the future." (Jin10 Data) Regarding other currencies: ECB President Lagarde stated that despite the deepening impact of the Iran conflict, long-term inflation expectations remained broadly in line with the 2% target. Although the energy crisis was pushing up inflation and dragging down the economy, long-term inflation expectations overall remained well anchored. The impact of this conflict on medium-term inflation and economic activity will depend on the intensity and duration of the energy price shock, as well as the magnitude of its indirect transmission effects. (Wall Street CN) Bank of Japan Governor Ueda Kazuo stated that Prime Minister Takaichi Sanae told him during their meeting on Friday that she hoped the BOJ would adopt appropriate policies, taking into account the government's price measures. Speaking to reporters after the meeting with Takaichi Sanae at the Prime Minister's residence in Tokyo, Ueda Kazuo said it was a routine meeting between the two and that no specific details of monetary policy were discussed. (Wall Street CN) On the macro front: Data to be released next week include: UK May CBI retail sales balance, US March FHFA house price index MoM, US March S&P/CS 20-city non-seasonally adjusted house price index YoY, US May Conference Board consumer confidence index, US May Dallas Fed business activity index, Australia April non-seasonally adjusted CPI YoY, New Zealand RBNZ interest rate decision through May 27, Switzerland May ZEW investor confidence index, US weekly ADP employment change for the week ending May 9, US May Richmond Fed manufacturing index, Eurozone May industrial confidence index, Eurozone May economic sentiment index, Canada Q1 current account, US initial jobless claims for the week ending May 23, US April core PCE price index YoY, US April personal spending MoM, US Q1 real GDP annualized QoQ revised, US April core PCE price index MoM, US April durable goods orders MoM, US April new home sales annualized, Japan April unemployment rate, France May CPI MoM preliminary, France Q1 GDP YoY final, Germany May seasonally adjusted unemployment change, Germany May seasonally adjusted unemployment rate, Germany May CPI MoM preliminary, Canada March GDP MoM, US May Chicago PMI, and China May official manufacturing PMI. In addition, key events to watch next week include: 500 billion yuan in 1-year medium-term lending facility (MLF) and 1 billion yuan in 7-day reverse repo maturing today; BOJ Governor Ueda Kazuo delivering a speech at a monetary policy conference hosted by the BOJ; RBNZ releasing its interest rate decision and monetary policy statement; RBNZ Governor Breeman holding a monetary policy press conference; ECB publishing the minutes of its April monetary policy meeting; permanent FOMC voter and New York Fed President Williams delivering a keynote speech at a conference co-organized by the Central Bank of Iceland; 2028 FOMC voter and St. Louis Fed President Musalem delivering a speech; Bank of England Governor Bailey delivering a speech; 2028 FOMC voter and Kansas City Fed President Schmid delivering a speech; and US Fed Governor Bowman delivering a speech. Additionally, it is worth noting that due to the Memorial Day holiday, the US stock market will be closed on May 25 (next Monday); CME Group's precious metals and WTI crude oil futures contract trading will end early at 02:30 Beijing time on the 26th, and US equity and Treasury futures contract trading will end early at 01:00 Beijing time on the 26th. Due to the Buddha's Birthday holiday, the Hong Kong stock market will be closed on May 25 (next Monday), with southbound and northbound trading suspended; the South Korean stock market will also be closed on the same day. In addition, due to the Spring Bank Holiday, the UK stock market will be closed on May 25 (next Monday); ICE Brent crude oil futures contract trading will end early at 01:30 Beijing time on the 26th. Investors are advised to take note. (Jin10 Data) Crude oil: Overnight, both oil futures rose, with WTI up 0.67% and Brent up 1.62%. On a weekly basis: WTI futures declined, down 3.98% for the week; Brent also declined weekly, down 4.59% for the week. Since the ceasefire agreement was reached in April this year, US-Iran negotiations have remained deadlocked, with no comprehensive agreement to end the conflict in sight. Although a draft reportedly "close to being reached" is emerging, four core obstacles still stand in the way of lasting peace. According to Bloomberg, the Strait of Hormuz, nuclear issues, the Lebanon conflict, and sanctions currently constitute the four core points of divergence in the negotiations. For investors, this war has plunged global energy markets into severe turbulence, and any progress or breakdown in negotiations will impact commodity prices. (Wallstreetcn) Iranian Foreign Ministry spokesperson Baghaei stated on the 22nd that it cannot be concluded that a US-Iran agreement is close to being reached, as significant differences remain between the two sides. According to Iranian media reports on the 22nd, Baghaei, commenting on the visit of senior Pakistani officials to Tehran, said this indicates the current situation has entered a "turning point or decisive stage." He mentioned that Pakistan's Chief of Army Staff Munir had visited Tehran, and related communications are still ongoing. When asked "whether this means a change in the negotiation process," Baghaei said it cannot be said that a US-Iran agreement is close to being reached, as there are serious and extensive differences between the US and Iran, and "diplomacy is a time-consuming process." Baghaei said one should not expect to see results within weeks or months through several rounds of back-and-forth consultations. He emphasized that diplomatic negotiations are inherently a long-term process, and both sides are utilizing various opportunities to convey their respective positions. (Xinhua News Agency) Baker Hughes data showed: US drilling companies increased oil and natural gas rig counts for the fifth consecutive week. The US total oil rig count for the week ending May 22 was 425, compared to the previous reading of 415. In addition, KazMunayGas: Q1 oil production decreased 12% YoY to 5.6 million mt. (Jin10 Data) According to Bloomberg, affected by the Iran war, the national average gasoline price in the US has surpassed $4.5 per gallon, with California exceeding $6. Despite high prices, consumers did not significantly reduce their fuel purchases. For most Americans, driving to work and picking up children are daily necessities. Gasoline spending is nearly impossible to cut, leaving consumers to trim discretionary spending to balance their budgets. Avarisse Crawford, a Philadelphia resident, said she had reduced entertainment expenses, replacing steak dinners and bar outings with free park activities. The Middle East situation continued to push oil prices higher, as the effective blockade of the Strait of Hormuz hindered global crude oil transportation, and US gasoline inventory fell to its lowest level for the same period since 2014. Morgan Stanley expects inventory to hit a seasonal historic low by the end of August. Facing continued climbing oil prices, the Trump administration has successively released strategic petroleum reserves, waived the Jones Act, and discussed implementing a federal gasoline tax holiday, but the effects remain unclear. As the Memorial Day weekend kicks off the summer travel season, upward demand pressure threatens to further strain already tight inventory. (Wallstreetcn) Recommended Reading:

Jinchengxin announced on the evening of May 22 that the company held the 22nd meeting of the 5th Board of Directors on May 8, 2025 and the 2nd Extraordinary General Meeting of Shareholders of 2025 on May 26, 2025, at which the "Proposal on the Planned Investment and Construction of the Alacran Copper-Gold-Silver Mine Project" was reviewed and approved. The company agreed to invest approximately $231 million in the construction of the Alacran copper-gold-silver mine project based on the expected shareholding ratio (55%). Currently, the company's equity interest in the Alacran copper-gold-silver mine has increased to 97.5%, and accordingly the company plans to increase project construction investment by $178.67 million in line with the change in equity ratio, bringing the cumulative investment to approximately $409.89 million. Apart from the aforementioned changes in the company's contribution ratio and corresponding investment amount, the investment estimate, construction plan, and other aspects of the Alacran copper-gold-silver mine project remain unchanged, still based on the feasibility study (FS) of the Alacran copper-gold-silver deposit completed in December 2023 (adopting the NI 43-101 standard). Regarding (1) Project Overview, Jinchengxin announced: Investment project: Alacran copper-gold-silver mine open-pit mining and beneficiation project. Based on the feasibility study (FS) of the Alacran copper-gold-silver deposit completed in December 2023 (adopting the NI 43-101 standard), the main content of the project design is as follows: Design scale: This project is a mining and beneficiation project. The mine adopts open-pit mining, with total ore within the designed pit limit of 97.9 million mt. The mine produces surface oxide ore and previously mined and stockpiled tailings (old tailings), as well as mixed ore and primary ore. For different ore properties, a grinding-flotation plant and a gravity separation plant are designed. The grinding-flotation plant mainly processes primary ore and mixed ore, while the gravity separation plant processes surface oxide ore and old tailings. The grinding-flotation plant has a designed processing capacity of 17,600 mt/day, with final products being copper concentrates and gold-silver concentrates; the gravity separation plant has a designed processing capacity of 2,400 mt/day, with final products being gold-silver concentrates. The project is expected to cumulatively recover 797 million pounds of copper, 550,000 ounces of gold, and 5.35 million ounces of silver. Investment estimate: The project investment estimate is $420.4 million, to be used for open-pit mine infrastructure stripping, mining industrial site, raw ore primary crushing station, coarse ore stockpile, grinding-flotation plant and gravity separation plant, concentrates thickening and filtration system, tailings thickening and conveying system, tailings storage facility, mine roads, water supply system, main step-down substation, external power supply lines, external roads, office and living camp, sewage treatment facilities, etc. Company investment amount: The company plans to invest approximately $409.89 million based on a 97.5% shareholding ratio, an increase of $178.67 million over the previously approved amount. Construction plan and service life: The project construction period is 2 years, and the mine life after completion is expected to be 14.2 years. Economic benefit forecast: The project's after-tax net present value (NPV) is $360 million (discount rate 8%), internal rate of return (IRR) is 23.8%, and the investment payback period is expected to be 3 years. The economic benefit calculation is based on copper prices of $3.99/pound, gold prices of $1,715/ounce, and silver prices of $22.19/ounce. For details on the feasibility study (FS) of the Alacran copper-gold-silver deposit, please refer to the "Jinchengxin Progress Announcement on the San Matias Copper-Gold-Silver Project" released by the company on December 19, 2023. Regarding the impact of this investment on the publicly listed firm, Jinchengxin stated: (1) After the project is put into production, it is expected to have a certain impact on the company's future business development and operating performance, which is conducive to the company's further expansion into the mine resource development field, improving the company's industrial layout, and promoting the company's sustained, stable, and healthy development. (2) This investment in the subsequent construction of the Alacran copper-gold-silver mine project based on the shareholding ratio is in line with the company's long-term development plan, is conducive to promoting the company's sustained, stable, and healthy development, and does not harm the interests of the company and shareholders, especially minority shareholders. Jinchengxin announced on the evening of May 17 that the Environmental Impact Assessment (EIA) for the company's Alacran copper-gold-silver mine in Colombia recently received formal approval from Colombia's National Environmental Licensing Authority (ANLA). The company will subsequently fully implement environmental permit requirements to ensure harmonious coexistence between project operations and local communities. Based on the feasibility study completed in December 2023, the Alacran copper-gold-silver mine project is an open-pit mining and beneficiation project with an investment estimate of $420 million, total ore within the designed pit limit of 97.9 million mt, and expected cumulative recovery of 797 million pounds of copper, 550,000 ounces of gold, and 5.35 million ounces of silver. The company previously reviewed and approved an investment of approximately $231 million based on an expected 55% shareholding to construct the project. Currently, the company's equity interest in the Alacran copper-gold-silver mine has increased to 97.5%, and the company will follow the corresponding review procedures for project construction investment in accordance with the company's articles of association and make timely disclosures. Jinchengxin's Q1 2026 report disclosed on April 28 showed: The company achieved total operating revenue of 3.414 billion yuan, up 21.45% YoY; net profit attributable to the parent company was 601 million yuan, up 42.55% YoY. Regarding the reasons for the increase in Q1 operating revenue and net profit, Jinchengxin announced: This was mainly due to increased sales of mineral resource products (copper cathode, copper concentrates, iron ore) and rising copper ore product prices during the period. Jinchengxin's 2025 annual report showed: The company achieved revenue of 13.894 billion yuan in 2025, up 39.74% YoY; net profit attributable to the parent company was 2.339 billion yuan, up 47.66% YoY. Jinchengxin stated in its 2025 annual report: Operating revenue increased 39.74% YoY and net profit attributable to shareholders of the publicly listed firm increased 47.66% YoY during the period, mainly due to increased production and efficiency at captive mine projects in the mine resource development business during the reporting period. In addition, Jinchengxin stated on the interactive platform on April 28 that the company's copper ore product inventory increased at year-end 2025 and at the end of Q1 2026, mainly because the local rainy season (November–April) affected road conditions and transportation on peripheral roads of the Dikulushi copper mine in the DRC, and the produced mineral products had not yet been sold externally. China Post Securities' commentary on Jinchengxin's performance report showed: The resource segment saw volume-driven growth, while the mining services business was slightly dragged down. By business segment, the mine resource business achieved revenue/gross profit of 6.986/3.121 billion yuan in 2025, up 117.67%/130.20% YoY, while the mining services business achieved combined revenue/gross profit of 6.613/1.515 billion yuan, up 1.06%/down 13.47% YoY. The mining business saw both volume and price increases, while the decline in mining services was mainly due to the Lubambe copper mine being converted to an internal unit after acquisition, resulting in reduced recognized revenue and gross profit, and some projects being affected by declining work volumes/production ramp-up. Volume: Copper metal sales in 2025 were 92,700 mt, up 88.16% YoY; phosphate ore sales were 357,400 mt, down 1.00% YoY. The growth in copper metal production and sales was mainly due to the Lonshi copper mine reaching full production, the Dikulushi and Lonshi copper mines exceeding production plans, and the Lubambe copper mine being consolidated for the full year. In 2026Q1, copper metal production/sales were 22,400/18,100 mt, mainly affected by declining grade and the rainy season. Price: Copper prices were up 7.62% YoY in 2025 and up 36.72% YoY in 2026Q1. Production is expected to grow steadily in 2026, with significant long-term expansion potential. In 2026, the company's captive resource projects plan to produce 100,300 mt of copper metal (equivalent) and sell 99,700 mt of copper metal (equivalent), and produce and sell 300,000 mt of phosphate ore; the Yisitanxinshan magnetite project plans to produce and sell 1.25 million mt of iron ore concentrates. In the longer term, the northern mining area of the Liangchahe phosphate mine is expected to be put into use by the end of 2028, with annual capacity expanding from 300,000 mt to 800,000 mt; after the eastern zone of the Lonshi copper mine is put into production, annual production can expand from 40,000 mt to 100,000 mt; the Lubambe copper mine is undergoing technological transformation, and after completion is expected to produce 35,000 mt of copper annually; the company holds a 97.5% equity stake in the San Matias copper-gold-silver mine, which is in the EIA approval stage. Risk warnings: Price fluctuation risks; project progress falling short of expectations; downstream demand falling short of expectations; model assumptions not matching reality; policy risks exceeding expectations, etc.

SMM data shows that overseas stainless steel prices saw their first correction after six months of gains during May 18–22. Indonesia’s leading mills cut FOB 300 series stainless steel by USD30/mt, then kept prices stable through out the week. Policy-driven supply concerns from Indonesia and IWIP NPI cuts pushed LME nickel above USD 18,800/mt. The market focus shifted from price weakness to cost support, while demand remained resistant to high prices.

The ex-China rare earth market this week exhibited a trend of "falling prices amid tight supply," with Pr-Nd oxide and metal prices generally marked down by approximately $5-10/kg. However, due to export controls and tightening supply, the premium on Chinese products outside China remained significant. Meanwhile, geopolitical rivalry and supply chain restructuring accelerated, with G7 finance ministers calling for urgent reduction of dependence on China and the establishment of recycling quota systems. On the capital front, Greenland Resources spent $35 million to acquire the high-grade Sarfartoq project to strengthen its magnetic material rare earth portfolio. Australia's Arafura officially finalised the final investment decision for the Nolans project. Combined with Brazil's launch of an antitrust investigation and Germany's Heraeus divesting its recycling business, these developments underscored the urgency of global decoupling and localization efforts.

[SMM Platinum and Palladium Weekly Review] This week (May 18 – May 22), the most-traded platinum futures contract PT2606 on China's GFEX opened at 490.1 yuan/gram and closed at 485 yuan/gram, down 17.4 yuan/gram or 3.46% from last week's settlement price, with a highest price of 496.4 yuan/gram and a lowest price of 474.35 yuan/gram; the most-traded palladium futures contract PD2606 opened at 340.35 yuan/gram and closed at 332.2 yuan/gram, down 13.85 yuan/gram or 4.00% from last week's settlement price, with a highest price of 343.95 yuan/gram and a lowest price of 327.65 yuan/gram. In terms of futures trading volume: the most-traded platinum contract PT2606 recorded a total weekly trading volume of 18,633 lots with a total turnover of 9.074 billion yuan and open interest of 7,283 lots, down 2,687 lots WoW. The most-traded palladium contract PD2606 recorded a total weekly trading volume of 14,380 lots with a total turnover of 4.824 billion yuan and open interest of 5,213 lots, down 1,352 lots WoW. Platinum and palladium were in the doldrums this week. Both saw significant declines at the beginning of the week, mainly due to repeated Middle East geopolitical tensions with slow progress in US-Iran negotiations, critically low global crude oil inventories driving oil prices higher, coupled with rising rate hike expectations and rising US Treasury yields, which continued to weigh on precious metals valuations. After Wednesday, as US-Iran tensions eased somewhat, falling oil prices combined with pullbacks in medium- and long-term US Treasury yields led precious metals futures to rebound slightly, but the rebound was limited and failed to recover the ground lost at the beginning of the week. US Fed: Key focus should be on the swearing-in speech to be delivered tonight. Based on Warsh's previous policy stance, if he insists on prioritizing inflation fighting and releases rate hike expectations, precious metals are expected to remain under sustained pressure in the short term. Trade and tariffs: A constructive strategic stability relationship between China and the US was established, with the 10% fentanyl tariff on China removed, the 24% punitive tariff on China extended for another 18-month suspension, and the Section 301 investigation on China's shipbuilding, logistics, and maritime sectors suspended for 18 months, reducing trade and tariff uncertainties. In the near term, key areas to watch remain changes in US-Iran dynamics, GFEX platinum and palladium registered warrants, Warsh's inaugural speech, and trial results of palladium applications in the fiberglass sector.

[Geopolitical Tensions Fluctuate as SHFE and LME Zinc Prices Fluctuate Upward] At the beginning of the week, the tug-of-war between longs and shorts intensified. On the macro front, the Middle East situation remained unresolved and market uncertainty persisted, but the US dollar index retreated from highs. Combined with persistently low ex-China zinc ingot inventory, LME zinc maintained a fluctuating trend......

SMM News, May 22: Metals market: As of the midday close, base metals on the domestic market mostly fell. SHFE copper fell 0.19%. SHFE aluminum fell 0.1%. SHFE lead rose 0.54%, and SHFE zinc edged up. SHFE tin rose 0.09%. SHFE nickel fell 0.59%. In addition, the most-traded casting aluminum futures fell 0.11%, and the most-traded alumina contract rose 0.04%. The most-traded lithium carbonate contract fell 1.28%. The most-traded silicon metal contract fell 0.59%. The most-traded polysilicon futures fell 1.38%. Ferrous metals mostly fell. Iron ore rose 0.19%, rebar fell 0.38%, hot-rolled coil fell 0.76%, and stainless steel rose 0.4%. Coking coal and coke: the most-traded coking coal contract fell 3.07%, and the most-traded coke contract fell 1.78%. Overseas market base metals, as of 11:41, LME metals mostly rose. LME copper fell 0.06%. LME aluminum rose 0.15%, and LME lead edged up. LME zinc rose 0.35%. LME tin rose 0.34%. LME nickel rose 0.16%. Precious metals, as of 11:41, COMEX gold fell 0.43%, and COMEX silver fell 0.33%. Domestic market precious metals: the most-traded SHFE gold contract fell 0.13%, and the most-traded SHFE silver contract rose 0.61%. In addition, as of the midday close, the most-traded platinum futures rose 0.34%, and the most-traded palladium futures rose 0.57%. As of the midday close, the most-traded Europe containerized freight index contract rose 4.51%, closing at 3,032.5 points. As of 11:41 on May 22, midday futures quotes for selected contracts: Spot and fundamentals Copper: Today in Guangdong, #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a premium of 210 yuan/mt, down 30 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 140 yuan/mt, down 25 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 70 yuan/mt, down 20 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 104,570 yuan/mt, down 955 yuan/mt from the previous trading day, and the average price of SX-EW copper was 104,465 yuan/mt, down 950 yuan/mt from the previous trading day... Macro front Domestic: [NDRC: Supply-demand relationship expected to further improve, prices expected to continue operating within a stable range] Li Chao, Deputy Director of the Policy Research Office of the National Development and Reform Commission (NDRC), stated that prices in April continued the mild rebound trend since H2 last year, releasing positive signals of improving supply-demand relationship and optimized market order. Although the trajectory of international energy prices remained uncertain, China had a solid foundation for maintaining overall price stability. As a series of macro policies are implemented in depth, the supply-demand relationship in the market is expected to further improve, and prices are projected to continue operating within a stable range. [NDRC: During the 15th Five-Year Plan period, investment of over 5 trillion yuan is expected for new-type power grid construction] The Political Bureau of the CPC Central Committee proposed strengthening the planning and construction of "six networks," including water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipe networks, and logistics networks. On May 22, the NDRC held a press conference. At the conference, Li Chao, Deputy Director of the Policy Research Office of the NDRC, stated that during the 15th Five-Year Plan period, investment of over 5 trillion yuan is expected to be directed toward planning and constructing a number of power transmission corridors and inter-provincial power supply projects, optimizing ultra-high voltage and extra-high voltage AC networks by layer and zone, and implementing a number of urban distribution network renewal projects, power grid renovation projects in weak areas, and rural grid frequent outage remediation projects. Li Chao stated that based on comprehensive analysis, the national peak electricity load this summer is expected to reach approximately 1.6 billion kW , an increase of about 90 million kW over last year, equivalent to adding the electricity load of an entire Henan Province. [NDRC: Guiding domestic large models to intensify efforts in adapting to domestic computing chips] Li Chao, Deputy Director of the Policy Research Office of the NDRC, stated at a press conference on May 22 that core technologies and application demands in the artificial intelligence sector are both exhibiting rapid growth. We have consistently adhered to systematic planning, sector-specific policies, openness and sharing, and safe and controllable development, promoting the broad and deep integration of artificial intelligence with all industries and sectors of the economy and society, guiding domestic large models to intensify efforts in adapting to domestic computing chips, and ensuring autonomous controllability, development for good, and steady long-term progress while maintaining rapid development, so that all people can share in the fruits of AI development. This is also a prominent characteristic of China's AI development. The PBOC conducted 153 billion yuan of 7-day reverse repo operations in the open market, with the operation rate at 1.40%, unchanged from the previous day. Today, 500 million yuan of reverse repos matured. US dollar: As of 11:41, the US dollar index rose 0.05% to 99.25. The White House stated that the swearing-in ceremony for new Fed Chairman Warsh will be held at 11:00 AM on May 22 (23:00 Beijing time). Fed's Barkin stated that the ability of enterprises and consumers to absorb the latest round of supply shocks will determine whether the US central bank can continue to "look through" higher inflation without choosing to raise interest rates. In remarks prepared for a speech in Raleigh, North Carolina on Thursday, Barkin stated: "After inflation has been above our 2% target for more than five consecutive years, we need to consider whether the cumulative effect of so many rounds of shocks could cause the 'anchor' of inflation expectations to loosen."He also stated: "For me, the key question is how much more pressure enterprises, consumers, and inflation expectations can withstand." Barkin also expressed growing concern that the US may have entered a "new phase" in which supply shocks will become more frequent. These shocks could stem from multiple factors, including escalating geopolitical tensions, fragmentation of the trade system, more extreme weather events, rising government debt, and other structural forces. He also noted that, for now, the US Fed's monetary policy stance is "in a good place" to address risks on both the employment and inflation fronts. According to the CME "FedWatch": the probability of the US Fed holding rates unchanged through June was 96.8%, with a 3.2% probability of a cumulative 25-basis-point rate hike. The probability of the US Fed holding rates unchanged through July was 85.4%, with a 14.2% probability of a cumulative 25-basis-point rate hike and a 0.4% probability of a cumulative 50-basis-point rate hike. In addition, Nomura Securities expects the US Fed to keep rates unchanged in 2026, having previously forecast interest rate cuts in September and December this year. (Jin Shi Data) On the data front: Data to be released today include the US May University of Michigan Consumer Sentiment Index final reading, the US May one-year inflation expectations final reading, the US April Conference Board Leading Index month-over-month, the UK May GfK Consumer Confidence Index, UK April public sector net borrowing, UK April seasonally adjusted retail sales month-over-month, the Germany June GfK Consumer Confidence Index, Germany Q1 non-seasonally adjusted GDP year-over-year final reading, Germany May IFO Business Climate Index, Japan April core CPI year-over-year, and Canada March retail sales month-over-month. In addition, 2027 FOMC voter and Richmond Fed President Barkin will deliver a speech, and US Fed Governor Waller will deliver a speech. On crude oil: As of 11:41, oil prices in both markets rose, with WTI up 1.21% and Brent up 1.7%. Fluctuating US-Iran developments affected oil price movements, with market doubts over whether US-Iran negotiations could make progress supporting oil prices. Four sources said that seven major OPEC+ producing countries will most likely agree to a modest raise in the July production target when they meet on June 7, although supply from several of them remains disrupted by the Iran war. The sources said the monthly production target set by the seven core OPEC+ members is expected to be raised by approximately 188,000 barrels per day. In Q1 2026, OPEC+ maintained production unchanged, but since April, the group has raised its monthly production target despite the ongoing war. However, since the UAE's exit from the organization in May, the monthly production increase has been scaled back. Analysts and delegates believe that while the UAE's departure has weakened the organization's influence over the market, it may strengthen its internal cohesion. Additionally, sources said that two other OPEC+ meetings scheduled for June 7 are not expected to result in any policy adjustments. IEA Executive Director Birol said on Thursday that the arrival of the summer peak fuel demand season, combined with the lack of new oil exports from the Middle East and continued inventory drawdowns, could push the oil market into a "danger zone" during July-August, though he did not elaborate further. In his speech, Birol said the world was in a state of oil surplus when the supply crisis triggered by the Iran war broke out, which helped cushion the impact, but inventories are now steadily declining. (Jin10 Data) Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ► ►

According to online query data from the General Administration of Customs, China's copper cathode imports in April totaled 315,798 mt, up 5.2% YoY and up 13.04% MoM, the highest since October last year. The main increase was contributed by the Congo, whose monthly shipments surged by nearly 50%, while Kazakhstan's supply also increased and Russia's supply pulled back. Previously, China's import window opened intermittently. Demand was already strong in the traditionally robust April, and with domestic copper prices hovering below the 100,000 mark, downstream procurement demand warmed overall. Among them, non-registered and non-standard brand cargoes from the Congo had price advantages and good liquidity, making them popular in the market, with increased inflows. In addition, Q2 is the peak maintenance season for domestic smelters, and the market had expectations of a decline in China's copper cathode production. NBS data showed that China's copper cathode production in April fell 4.6% MoM to 1.269 million mt, confirming the pullback in production, and China's import demand picked up. Recently, domestic demand has cooled somewhat, and the copper cathode import window has opened intermittently. However, affected by geopolitical tensions in the Middle East, sulfur imports in African countries such as the Congo have been impacted. Attention should be paid to the subsequent effects on local SX-EW copper production and whether it will impact their copper cathode exports. Data source: General Administration of Customs Meanwhile, online query data from the General Administration of Customs showed that China's copper cathode exports in April totaled 25,605.82 mt, marking a fifth consecutive monthly decline since November 2025, down 56% MoM and down 67% YoY. In April, the domestic export window was largely closed, and domestic smelters began deploying maintenance plans, limiting export enthusiasm. Data source: General Administration of Customs (Wenhua Composite)

[Secondary Lead Production Update] It is reported that a secondary lead smelter in the Philippines (with a monthly production of approximately 1 kt) has been shut down for about 2 months due to tight raw material supply and the need for technological transformation, and the date to resume production is yet to be determined.