On the raw material front, this week lithium carbonate prices continued to climb, driven by supply-side disruptions intensifying the Q2 tightness expectation and substantial position building in deferred-month futures contracts. Nickel salt prices edged up slightly, while the cobalt salt market remained subdued and largely stable.

The Qidong Municipal People's Government in Jiangsu Province issued a notice of proposed approval for the technological renovation project of a Nantong company for general industrial solid waste utilization and disposal. After the renovation, the company will have a comprehensive general industrial solid waste disposal capacity of 13,000 tons of waste NMC batteries and 7,000 tons of waste LFP batteries per year, totaling 20,000 tons of battery waste treatment capability.

On the raw material front, spot lithium carbonate prices oscillated and edged lower this week, nickel salt prices saw some correction, and cobalt salt prices continued to decline. Looking at different scrap types – NMC, lithium cobaltate, and LFP – for the LFP hydrometallurgical route: taking LFP cathode sheet black mass as an example, prices stood at 7,550–7,900 yuan per lithium point this week, representing a sharp drop from last Tuesday’s transaction levels.

[SMM Tin Morning Brief: The Most-Traded SHFE Tin Contract Continued to Climb During the Night Session, Spot Market Trading Expected to Cool Down]

On May 25, luxury sports car manufacturer Ferrari officially unveiled its first all-electric vehicle, with a starting price of 550,000 euros. This electric vehicle is named "Luce." It boasts 1,035 horsepower, accelerating from 0 to 100 km/h in just 2.5 seconds, from 0 to 200 km/h in 6.8 seconds, with a top speed of 310 km/h, and a driving range exceeding 530 kilometers. The power battery system was fully self-developed by Ferrari, with a total battery pack capacity of 122 kWh and an energy density exceeding 740 Wh/L. Internally, it is equipped with NMC ternary lithium pouch cells jointly developed by Ferrari and South Korean battery company SK On, with a single cell capacity of 159 Ah.

When asked, "What were the sales volume and pricing of copper foil produced by your company in April 2026?" North Copper responded on May 19 via the investor interaction platform: The company's copper foil sales are performing well with balanced production and sales; the product is priced and sold on a market-based basis according to market supply and demand. North Copper also responded on May 19: The company's share price fluctuations are influenced by a combination of factors including the macro environment, market sentiment, capital flows, and the company's own performance. The recent share price fluctuations have been largely in line with the trend of publicly listed firms in the copper sector. The company has always focused on enhancing intrinsic value as the core of its market capitalization management, and is committed to the long-term alignment of corporate value and market performance through focusing on core business growth, optimizing governance structure, strengthening information disclosure, and implementing shareholder return plans. The content of the earnings briefing announced by North Copper on May 8 showed: 1 What is the current construction progress of the new 10kt rolled copper foil production line, and in which month of 2026 is it expected to be completed? North Copper responded: Some production lines of the company's 50,000 mt/year high performance rolled copper strip and foil and 2 million m² CCL project have reached the intended usable condition. The main products include high performance copper and copper alloy strip and rolled copper foil, of which copper alloy strip capacity is 25,000 mt/year and rolled copper foil capacity is 5,000 mt/year. 2 What caused the negative operating cash flow, and what is the impact on the company going forward? North Copper responded: The negative net cash flow from operating activities in Q1 was mainly due to two reasons: first, rising non-ferrous metal prices led to higher overall value of copper raw materials, increasing capital occupation; second, under the impact of geopolitical factors, international shipping rerouting and tight domestic railway dispatching caused copper raw material arrivals at the plant to be delayed versus plan, extending the capital turnover period. The company's current cash flow level can effectively support daily operations and debt repayment. Going forward, the company will take targeted measures to improve the situation. 3 Questions regarding the progress of Hujiaoyu mine asset injection. Specifically: Has the preliminary preparation work for the asset injection (such as auditing, valuation, and plan evaluation) been initiated? Does the company plan to complete this asset injection within 2026? Are there any material obstacles or uncertainties in the process that need to be disclosed to investors? Beyond strictly fulfilling the commitment to inject within 24 months, does the company's management have a clear goal and timetable to "strive for early completion"? What specific stage has the related work progressed to? North Copper responded: Hujiaoyu Mining Company, a subsidiary of the company's controlling shareholder Zhongtiaoshan Group, obtained the mining permit for newly added reserves on March 27, 2026. Preliminary work for obtaining the mine safety production permit is currently being actively advanced, and the conditions for injection into the publicly listed firm are not yet met. The company will initiate the asset injection process in a timely manner after all the above mining permits are obtained, fulfilling the relevant commitments. 4 After the completion of the 50,000 mt rolled copper foil and strip project, are there any further plans for new copper foil capacity construction and expansion? North Copper responded: Some production lines of the company's 50,000 mt/year high performance rolled copper strip and foil and 2 million m² CCL project have not yet been completed, and capacity has not been fully released. There are currently no new copper foil capacity expansion plans. 5 How does the company's management plan to manage market capitalization? North Copper responded: In accordance with the requirements of Regulatory Guidelines for Listed Companies No. 10 — Market Capitalization Management, the company will make comprehensive utilization of lawful and compliant methods, promote positive interaction between value and market capitalization through improving operational quality, strengthening information disclosure, and deepening investor communication, continuously improve and strengthen market capitalization management, and carry out scientific, effective, and compliant market capitalization management practices. 6 Given the strong Q1 2026 results, the share price has underperformed peers with weaker results. Does the company have any undisclosed adverse events? North Copper responded: In addition to operating performance, the company's share price is also influenced by various factors including the international situation, policy environment, financial market liquidity, capital market atmosphere, and investor psychological expectations. The company strictly fulfills its information disclosure obligations in accordance with relevant laws and regulations, and there are no material matters that should have been disclosed but were not. 7 What new progress will the company make in smart mines and digital factories this year? North Copper responded: The company will continue to advance the construction of smart mines and digital factories, deepen and expand new scenarios for digital-intelligent integration applications, and accelerate the implementation of the Tongkuangyu mine smart mine project. Within the year, the company plans to complete the installation of system equipment for the data center, integrated management and control hall, and other facilities. The digital-intelligent building is expected to be completed and put into operation. The 5G smart communication hub, industrial-grade ring network, and LHD operation positioning and metering projects are expected to achieve phased results, effectively enhancing the digital-intelligent level and operational efficiency of mining operations. 8 What are the main directions of R&D expenditure? North Copper responded: The company's R&D expenditure is focused on six core areas: resource reserve expansion and production increase, efficient mining and beneficiation technologies, smelting technology innovation, high-end copper-based materials, comprehensive utilization of resources, and intelligent mining. North Copper's Q1 2026 report released on April 29 showed: In Q1, the company achieved revenue of 10.044 billion yuan, up 46.89% YoY; net profit attributable to the parent company's shareholders was 615 million yuan, up 65.74% YoY. Regarding the reason for the revenue increase, North Copper stated in its Q1 report: It was mainly due to increased product sales volume and price increases. In addition, North Copper's 2025 annual report showed: The company achieved revenue of 27.916 billion yuan in 2025, up 15.80% YoY; net profit attributable to the parent company's shareholders was 791 million yuan, up 29.01% YoY. Major product production in 2025: copper cathode 300,300 mt, sulphuric acid 766,000 mt, gold ingots 6.4 mt, and silver ingots 68.5 mt. North Copper stated in its 2025 annual report: The company is primarily engaged in copper mining, ore beneficiation, smelting, and rolling processing. It currently has captive mines with annual ore processing of 9 million mt and self-produced copper metal content of 43,000 mt, copper smelting capacity of 320,000 mt, gold ingots 10.8 mt, silver ingots 170 mt, and sulphuric acid 1.22 million mt. It also recovers valuable metals including platinum, palladium, selenium, and bismuth through comprehensive utilization. Copper deep-processing products include high performance copper and copper alloy strip and rolled copper foil, of which copper alloy strip capacity is 25,000 mt/year and rolled copper foil capacity is 5,000 mt/year. The company has established an integrated industry chain from mining, ore beneficiation, smelting to rolling processing. The company's "Zhongtiaoshan" brand Grade-A copper is registered on the Shanghai Futures Exchange and the Shanghai International Energy Exchange, and the "Zhongtiaoshan" brand gold and silver ingots are registered on the Shanghai Futures Exchange. The company's mineral exploration status disclosed in North Copper's 2025 annual report showed: The company completed the detailed exploration project for deep replacement resources at the Tongkuangyu copper mine (below the 80m elevation), with the following main work completed: exploration tunnels 140.6 m, drilling chambers 12/2,823.6 m³, drilling 12 holes (including 3 hydrogeological holes), drilling volume 7,268.62 m, 1:2000 specialized hydrogeological and environmental geological survey 6 km², geophysical logging 2,065.61 m, and pumping tests on 3 holes; 8,091 sample analyses and tests, 46 sets of rock and ore tests, 99 bulk density samples, 20 copper phase analyses, 10 complete chemical analyses, and 12 complete water quality analyses. On February 20, 2025, the Shanxi Mining Association organized and completed the supervision and field acceptance of the detailed exploration project, issuing the supervision report and field acceptance report. In early March, the company completed the compilation of the Detailed Hydrogeological and Environmental Survey Report for the Deep Part of Tongkuangyu Mine. On March 17, the report was reviewed and approved by experts organized by the Shanxi Mining Association. In May, the company completed the compilation of the Detailed Exploration Report for Deep Replacement Resources at Tongkuangyu Copper Mine, Yuanqu County, Shanxi Province (hereinafter referred to as the Report). On May 23, the report was reviewed and approved by experts organized by the Shanxi Mining Association, and review opinions were issued. According to the Report, as of December 31, 2024, within the 80m to -325m elevation range of the Tongkuangyu mining area, the cumulative identified industrial ore body (No. 5) copper ore resources totaled 103.718 million mt, with an average grade of 0.84% and metal content of 869,600 mt. Associated gold metal content was 8,930 kg with an average grade of 0.09 g/t; associated molybdenum metal content was 3,727 mt with an average grade of 0.011%. Low-grade copper ore resources totaled 34.625 million mt, with an average grade of 0.25% and metal content of 88,200 mt. The explored resources reached a large scale, achieving significant exploration results and providing solid resource support for the company's industry chain layout. Regarding the company's copper ore resource reserves, North Copper disclosed in its annual report that as of the end of 2025, the Tongkuangyu mine retained copper ore resources of 4.664 million mt above the 80m elevation, with copper metal content of 1.2501 million mt. Meanwhile, below the 80m elevation at the bottom of the company's existing Tongkuangyu mine mining rights, the cumulative identified industrial ore body (No. 5) copper ore resources totaled 3.718 million mt, with an average grade of 0.84% and metal content of 869,600 mt. Regarding the 2026 production and operation plan, North Copper mentioned in its 2025 annual report: Major product production targets: copper cathode 300,000 mt, sulphuric acid 800,000 mt, gold ingots 6 mt, and silver ingots 60 mt, to maximize economic benefits. Regarding the outlook for copper, some institutions hold the following views: Tony Sage, CEO of Critical Metals, noted in a recent report that market participants remain bullish on the copper price outlook, driven by long-term demand from AI infrastructure, power grid modernization, and the global energy transition, coupled with supply constraints. He added that in the long run, the copper market may face a potential supply deficit, which will provide support for copper prices. (Jin10 Data) A CITIC Securities research report noted that as Freeport once again delayed the production resumptions schedule for its Indonesian project and comprehensively lowered its production guidance for 2026-2027, global major miners' 2026 production expectations have officially entered a decline, and the potential impact of subsequent extreme weather may further amplify supply disruptions. We expect that the solid supply-demand fundamentals demonstrated by the better-than-expected destocking in China, along with easing macro headwinds, will support copper prices to stabilize at $13,000/mt in 2Q26, while the gap between supply-demand expectations could drive copper prices to challenge previous highs. We are optimistic about the allocation opportunity in the copper sector where earnings elasticity and valuation elasticity resonate.

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, tomorrow is the last trading day for the SHFE copper 2605 contract. In accordance with the SMM #1 copper cathode price assessment methodology, SMM consistently quotes against the front-month contract. From the current market structure, the intraday SHFE copper price spread between futures contracts quickly dipped, ranging between Contango 70 yuan/mt and Backwardation 60 yuan/mt. End-user procurement orders saw a slight increase in volume, but not significantly. According to SMM, some downstream enterprises placed orders mostly around 104,000 yuan/mt, and downstream procurement sentiment remained relatively subdued, with high copper prices continuing to suppress current consumption demand. However, due to the delivery logic providing a floor, spot discounts received certain support, and the downside room for premiums was limited. Going forward, attention should be paid to the outflow of unmatched warrants. After delivery is completed, the market is expected to enter a new round of pricing dynamics centered around the 2606 contract.

Given the high reliance of the Copperbelt’s mineral processing and logistics on critical consumables supplied via the Middle East, SMM conducted a 17-day field investigation across the Copperbelt to assess the short-term stability of the copper supply chain and the impact of regional infrastructure bottlenecks, engaging with 25 stakeholders in Zambia and DRC and covering the entire value chain, ranging from mining, smelting, refining to downstream logistics and infrastructure investment.

I. Resource Endowment: World's Second-Largest Reserves and Development Potential As a core holder of global rare earth resources, Brazil boasts proven reserves of 21-25 million tonnes, accounting for 23% of the global total—second only to China. This positions Brazil with the potential to reshape the global rare earth supply landscape. Its deposits are primarily ion-adsorption types, widely distributed across states like Minas Gerais and Goiás. Representative projects include: Colossus Mine : With reserves of 493 million tonnes and an average grade of 0.251%, it is currently Brazil's largest disclosed ion-type rare earth project. Caldeira Rare Earth Project : Holding 1.5 billion tonnes at a 0.2413% grade, it offers significant scale and commercial viability. Tiros Titanium Rare Earth Project : Though smaller in reserve size (5.5 million tonnes), it stands out with a high average grade of 0.400%, making it one of the highest-grade projects in the country. Notably, Brazilian rare earths often coexist with niobium, tantalum, and titanium. This nature adds complexity to processing but also opens avenues for comprehensive value recovery. II. Industry Status: Shifting from "Raw Material Export" to "Domestic Processing" Historically, Brazil's rare earth sector has been characterized by a "high reserves, low output" paradox. In 2024, national production was a mere 20 tonnes, a stark contrast to the global annual output of nearly 400,000 tonnes. The core bottleneck has been the lack of mid- and downstream capabilities in separation and refining. However, this is rapidly changing due to strategic national adjustments. (I) Policy Drivers: Mandating Domestic Processing for a Closed-Loop Chain The Brazilian government has designated rare earths as "strategic minerals." Under the National Policy for Critical and Strategic Minerals (PNMCE, Bill PL 4.443/2025), at least 80% of critical strategic minerals must be processed domestically, effectively banning raw ore exports. This policy aims to break the passive cycle of "mining-exporting raw materials-importing high-value products" and drive the construction of a full domestic value chain "from mine to magnet." (II) Project Implementation: From Lab to Industrialization In 2026, Brazil's rare earth development took a substantive leap: MagBras Initiative : Led by CIT SENAI in Minas Gerais and coordinated by FIESC in Santa Catarina, this project united 28 companies and research bodies to deliver the first 20kg of rare earth carbonate. This marked Brazil's first autonomous, full-process production from mining to chemical compound. LabFabITr Facility : Located in Lagoa Santa, Minas Gerais, this is the Southern Hemisphere's first lab-factory dedicated to rare earth magnet and alloy R&D, providing crucial technical support for local permanent magnet manufacturing. III. Capital and Geopolitics: The $2.17 Billion Investment Gamble Between 2025 and 2029, Brazil's rare earth sector is poised for $2.17 billion in investment—a 49% surge compared to the 2024-2028 forecast. This makes it the fastest-growing segment in Brazil's mining investment portfolio. This capital influx is underpinned by the geopolitical logic of global supply chain restructuring: (I) External Demand: A "Diversified Option" Amidst US-China Tensions As competition between the US and China intensifies, Brazil's strategic value as a "non-Chinese" supplier has skyrocketed. Its policy of "global openness" avoids picking sides while leveraging domestic processing mandates to attract technology transfer—requiring foreign investors to build local processing capabilities rather than just extracting ore. (II) Internal Drive: From "Resource Nationalism" to "Technological Autonomy" Brazil's strategy transcends simple resource protection; it is an upgrade centered on "technological autonomy." For instance, MagBras targets permanent magnet manufacturing—a sector currently monopolized by China, Japan, and Germany. Success would position Brazil among the few nations mastering the "ore-to-magnet" value chain, directly integrating into the core supply chains of EVs, wind energy, and industrial robotics. IV. Challenges and Outlook: Technology, Cost, and Global Competition Despite the upside, three core challenges remain: (I) Technological Barriers Rare earth separation and magnet manufacturing are high-threshold sectors. Brazil currently relies on international partnerships (e.g., European technical support for LabFabITr) to bridge this gap. (II) Cost Pressures Brazil's low-grade ion-adsorption ores entail higher beneficiation costs compared to some high-grade Chinese deposits. Additionally, the capital and operational expenditures for domestic processing could impact international price competitiveness. (III) Global Competition With Australia, the US, and various African nations also accelerating their rare earth developments, Brazil must carve out differentiated advantages in technology, cost efficiency, and policy stability to secure its market share. V. Conclusion: Leaping from "Resource Holder" to "Supply Chain Player" Brazil's rare earth transition represents a strategic leap from a "resource exporter" to a "technology-driven industrial player." While its 21 million tonnes of reserves provide the foundation, the true value lies in its policy-driven, capital-intensive push to build a complete industrial chain. If initiatives like MagBras achieve commercial success, Brazil is on track to become the "third pole" in the global rare earth supply chain by 2030, reshaping trade dynamics and offering a new paradigm for resource-based economies worldwide.

On April 15, a delegation from SMM Information & Technology Co., Ltd. (SMM), comprising Ye Jianhua, Director and Supervisor of SMM's Industry Research Department, Feng Chundi, Expert of SMM's Industry Research Institute, and Wu Tao, SMM's Overseas Marketing Manager for Copper and Tin, visited CNMC Luanshya Copper Mines PLC for an on-site survey and consultation. The delegation received a warm welcome from the leadership of CNMC Luanshya. During the exchange, relevant executives of CNMC Luanshya provided a detailed introduction to the enterprise's development history, equity structure, mining-beneficiation-smelting production layout, mineral resource endowment, and daily operational management of overseas mines. They particularly highlighted that the company's core product, "CLM" brand copper cathode, completed LME registration and certification on December 27, 2023. Backed by stringent quality control, the product has gained recognition in the international market, effectively enhancing its global circulation and core competitiveness. The SMM survey team, drawing on industry research and market tracking experience, shared insights on the operational status of the copper industry in and outside China, price trends, policy environment, and upstream and downstream supply-demand patterns. During the discussion, both parties engaged in communication on practical issues including changes in the international copper market, mining-beneficiation-smelting production and operations, responses to raw material and finished product market fluctuations, and overseas mining management models. The communication was conducted in a pragmatic and smooth atmosphere, deepening mutual understanding and laying a solid foundation for ongoing regular exchanges and business collaboration. Brief Introduction to CNMC Luanshya Copper Mines PLC CNMC Luanshya Copper Mines PLC, referred to as "CNMC Luanshya" in Chinese and abbreviated as "CLM," is a Sino-Zambian joint venture mining company restructured and established on November 10, 2009, after China Nonferrous Metal Mining (Group) Co., Ltd. (CNMC Group) participated in an international competitive bidding and successfully acquired the controlling stake in Luanshya Copper Mine that year. The company has a registered capital of $10.01 million, of which China Nonferrous Mining Corporation Limited, a subsidiary of CNMC Group, holds 80%, and Zambia Consolidated Copper Mines Investment Holdings PLC holds 20%. The company's main business covers copper resource mining, beneficiation, and smelting. Its primary products include copper cathode and copper concentrates, with an annual copper metal production of 50,000 mt. It is a large-scale comprehensive mining enterprise integrating geological exploration, mining, beneficiation, and smelting. The company currently holds seven large-scale mining licenses covering a total area of approximately 130 square kilometers. It operates multiple production units and projects, including the Muliashi hydrometallurgy smelter, beneficiation plant, Luanshya New Mine, and open-pit mine, making it one of CNMC Group's largest and most complete copper enterprises in Zambia in terms of investment scale and industry chain coverage. From its establishment in 2009 through the end of 2025, the company had cumulatively produced over 670,000 mt of copper metal, generated cumulative revenue exceeding $4.7 billion, achieved cumulative total profits exceeding $1 billion, and returned $220 million to shareholders, contributing 90% of GDP, 90% of tax revenue, and 70% of stable employment to the Luanshya region. is scheduled to be held on September 15-16, 2026 in Lusaka, Zambia. Your participation is warmly welcomed~ Conference Contact : Wu Tao: 18270916376 jennywu@smm.cn