According to Cailian Press, the optical fiber concept rebounded amid intraday volatility, with SDGI hitting the daily limit-up after Hangdian Holding earlier touched limit-up; Zhongtian Technology, SDGI, YOFC, and TDG Holding also rose in tandem. On the news front, a research report by China Securities said that in February this year, China exported 3,779.9 mt of optical fiber worth 790 million yuan, up 63.6% and 126.8% YoY, respectively. Converted into kilometers, China’s optical fiber exports in February were about 25.2 million core-km, accounting for about 65% of China’s monthly effective optical fiber production.

On May 29, at the 2025 SMM (2nd) Rare Earth Industry Forum hosted by SMM Information & Technology Co., Ltd. (SMM), Liang Xingfang, the Deputy Director of the Shandong Rare Earth Research Institute, discussed the "Application and Industrial Production of Rare Earth Fluorides." Part 1: Characteristics and Main Applications of Rare Earth Fluorides Structural Characteristics of Rare Earth Elements 1. Scandium, yttrium, and the lanthanides share the same outermost electron configuration, resulting in similar chemical properties. 2. The number of electrons in the 4f orbital ranges from 0 to 14 from lanthanum to lutetium. 3. The 4f orbital is shielded by outer electrons, leading to energy transition differences and structural variations during electron loss, resulting in distinct properties. 4. Fluorine is one of the elements with the strongest oxidizing power. Rare earth fluorides exhibit strong ionic bond stability. Rare earth fluorides are compounds containing rare earth elements and fluorine. 1. Binary rare earth fluorides: Direct combination of rare earth elements with fluorine; 2. Complex rare earth fluorides: Doped with other elements to possess specific functions; 3. Nanoscale rare earth fluorides: Exhibit special size and surface effects. Binary rare earth fluorides High melting point; low vapor pressure; chemically stable and insoluble in water; outstanding optical properties, capable of reducing excited state energy loss and significantly enhancing upconversion luminescence efficiency. Rare earth fluorides are important materials with unique magnetic, optical, and electrical properties. 1. Optical materials: Laser crystal materials, photofunctional materials, fluorescent materials, and optical fiber materials; 2. Catalytic materials: Catalysts for petroleum cracking and environmental protection; 3. Additives for polishing materials, ceramic materials, lubricants, and anticorrosive materials; 4. Raw and auxiliary materials for preparing rare earth metals or alloys. Raw and auxiliary materials for producing rare earth metals and alloys via molten salt electrolysis and calciothermic reduction processes. The applications in high-end industries and the demand from traditional industries have promoted the development of the rare earth fluoride industry. He also elaborated on the characteristics and main applications of binary rare earth fluorides. Main Applications of Rare Earth Fluorides in the Rare Earth Industry 1. Raw and auxiliary materials for producing rare earth metals and alloys Auxiliary materials for molten salt electrolysis process: Electrolyte REF3+LiF Raw materials for calciothermic reduction process: REF3+Ca China's NdFeB production reached approximately 300,000 mt in 2024. To produce raw materials such as Pr-Nd alloy, Nd, Ce, Gd-Fe alloy, and Dy-Fe alloy, over 5,000 mt of rare earth fluorides are required. 2. The raw materials for grain boundary diffusion of NdFeB permanent magnet materials, dysprosium fluoride and terbium fluoride, are mainly restricted by Japanese patents. Part II: Industrial Production Technology of Rare Earth Fluorides It elaborates on 1. the wet process (which has been listed as an obsolete process by the Ministry of Industry and Information Technology (MIIT)), and 2. NH₄HF₂ fluorination, etc. Experience sharing on the preparation of terbium fluoride: • Mix NH₄HF₂ with terbium oxide evenly and place in a high-purity graphite crucible • Heat slowly from 0-150℃, hold at 150℃, and remove ammonia at 300℃-400℃ (can be less than 100ppm) • After NH₄HF₂ fluorination, fluorinate again at 600℃ with (argon + hydrogen fluoride) gas • Prepare terbium metal by the calcium thermal reduction method, with an oxygen content of 230ppm Suitable for preparing rare earth fluorides of high-value elements such as scandium and terbium 3. Fluorination with hydrogen fluoride gas Key points of process control: Thickness of rare earth oxide furnace charge; channel for hydrogen fluoride gas; coordination between the temperature rise regime and the hydrogen fluoride gas flow rate; the biggest issue is the poor contact between the solid and gas in the solid-gas reaction; how to keep the rare earth oxide material in motion to increase its contact surface with the hydrogen fluoride gas. Fluidization and rolling. Comparison of industrial production technologies for rare earth fluorides Part III: Problems and Directions of Current Rare Earth Fluoride Production Methods ◇ The hydrogen fluoride method, NH₄HF₂ method, and wet process each have their own advantages, depending on the product characteristics. ◇ The production equipment for dry fluorides is not entirely reasonable, and the level of intelligence is not high; there is a caking phenomenon, incomplete solid-gas reaction, and the application of fluidized beds; process control for material thickness, gas feed rate, reaction temperature, and water vapor drainage. ◇ Corrosion resistance of lining materials ◇ Rare earth fluorides are prone to forming oxyfluorides at around 780℃ They are reduced to rare earth fluorides under a hydrogen fluoride atmosphere at 1700℃. ◇ After adopting the wet dehydration process + NH₄HF₂ (or hydrogen fluoride gas method) NH₄HF₂ fluorination + hydrogen fluoride gas fluorination Rare earth fluorides with lower oxygen content can be obtained ◇ High chemical purity and outstanding physical properties High purity (4N), ultra-high purity (greater than 6N) ◇ Nanomaterials, composite rare earth fluoride materials with comprehensive functions. Click to view the special report on the 2025 SMM (2nd) Rare Earth Industry Forum

The investor relations record recently announced by Shenghe Resources shows the following: 1. What are the main considerations for the company's proposed further acquisition of Peak's equity? Shenghe Resources responded: The company adheres to rare earth business as its core, while also considering zirconium and titanium. It leverages both domestic and international resources and markets, with the vision of becoming a responsible international supplier of key raw materials. To further consolidate the company's resource base for development, optimize its global business layout, and promote the rapid implementation and development of the Ngualla rare earth mine project, through friendly consultations, Chenguang Rare Earth, a wholly-owned subsidiary of the company, has agreed with Peak and intends to sign a "Scheme Implementation Deed" with the main content being the acquisition of all ordinary shares issued by Peak to external parties. 2. What is the latest progress of the Peak acquisition project? Shenghe Resources responded: After the official disclosure of the project plan, the relevant internal teams of the company are accelerating the submission of project regulatory approval applications. The company will maintain close contact with all parties involved, respond promptly, and provide timely communication and feedback to steadily advance the implementation of this project. 3. How do you view the future development prospects of the industry? Shenghe Resources responded: The company's current main products include rare earths, zirconium, and titanium. Rare earths are important strategic mineral resources. Rare earth elements possess rich magnetic, optical, and electrical properties, and can be used in materials such as permanent magnets, catalysts, hydrogen storage, polishing, precision ceramics, fluorescence, lasers, and optical fibers. They have very wide applications in fields such as new energy, new materials, energy conservation and environmental protection, aerospace, military industry, and electronic information. With the global energy transition and the development of downstream industries such as intelligent electric vehicles and energy conservation and environmental protection, the market prospects for the rare earth industry are broad. Zirconium has excellent physical and chemical properties and is mainly applied in consumer sectors such as zirconium silicate, zirconium chemicals, fused zirconium, precision casting, and refractory materials. The demand for zirconium products in the high-end manufacturing industry is gradually increasing, with the demand for markets such as metallic zirconium, composite zirconium, and nuclear-grade sponge zirconium rising year by year. Titanium is the metal element with the lowest density among refractory metals, possessing the two major advantages of high specific strength and strong corrosion resistance. It has a wide range of applications in fields such as aerospace, military industry, marine engineering, medicine, chemical pigments, metallurgy, and electric power. 4. What is the current capacity utilization rate of the company? Shenghe Resources responded: The capacity utilization rates of the company's rare earth smelting and separation, as well as metal processing, remain at a high level. 5. What is the company's current overall operating performance? Shenghe Resources responded: The company continues to strengthen market tracking and analysis, and scientifically formulates and implements business strategies. Since the beginning of this year, the company has demonstrated strong overall profitability, with a significant increase in gross profit margin compared to the same period last year. Taking the rare earth metal processing segment as an example, the company's production costs and material ratios are at the leading level in the industry, with indicators such as production volume, qualification rate, and labor efficiency all showing substantial improvements compared to the same period last year. Shenghe Resources disclosed its 2025 Q1 report on April 30, showing that in the first quarter of this year, the company achieved a total operating revenue of 2.992 billion yuan, up 3.66% YoY; and a net profit attributable to shareholders of 168 million yuan, turning from a loss YoY. Regarding the reasons for the increase in net profit, Shenghe Resources explained: Compared to the same period last year, the prices of major rare earth products have rebounded significantly this year, leading to an increase in sales gross profit, along with the reversal of some inventory impairment losses. Shenghe Resources' 2024 annual report shows that in 2024, the company achieved a total operating revenue of 11.371 billion yuan, down 36.39% YoY; and a net profit attributable to shareholders of 207 million yuan, down 37.73% YoY. The main reason for the substantial decline in net profit attributable to shareholders of publicly listed firms compared to last year is that in 2024, the market prices of major rare earth products declined significantly YoY, and the market prices of zirconium-titanium products were in the doldrums, resulting in a decrease in the average selling price and sales gross profit of the company's major products compared to the same period last year, leading to a decrease in the company's profit for this reporting period compared to the same period last year. Regarding the reasons for the change in operating revenue, Shenghe Resources stated that it was mainly due to the impact of market conditions in 2024, which led to a significant decline in the selling prices of rare earth and zirconium-titanium products compared to the previous year. Meanwhile, the scale of the company's trading business also decreased compared to the previous year. Regarding the company's business plan, Shenghe Resources stated in its 2024 annual report that in 2025, the company will strive to leverage the synergies among its various business segments, fully utilize its mineral resource advantages, tap into potential, continuously improve production and operation efficiency, and enhance the company's development quality. In 2025, the company plans to achieve a total operating revenue of 15 billion yuan for the whole year. The above targets are only the company's planned arrangements, which are significantly influenced by market supply and demand, and there is uncertainty about whether they can be completed as scheduled. In 2025, the company will orderly advance the Leshan 15,000 mt/year polishing powder project, overseas rare earth and zirconium-titanium resource projects, as well as other investment projects of the company. Through new construction, technological transformation, quality improvement, and efficiency enhancement, the company will continuously enhance its market competitiveness. Minsheng Securities issued a research report commenting on Shenghe Resources on May 21, pointing out that the company announced that its wholly-owned subsidiary, Ganzhou Chenguang Rare Earth New Materials Co., Ltd., intends to acquire 100% of the equity of Peak Rare Earths Limited. Peak is an Australian publicly listed firm headquartered in Perth, Western Australia, and listed on the Australian Securities Exchange (code: PEK). Its core asset is the Ngualla rare earth mine project in Tanzania (with an equity interest of 84%). Basic Information on Ngualla Rare Earth Mine: The Ngualla rare earth mine is located near Ngwala village in the Song region of Tanzania, approximately 1,000 kilometers west of Dar es Salaam (the former capital) and 150 kilometers from the city of Mbeya (near the Zambian border). It is one of the world's largest, highest-grade, and lowest-cost rare earth deposits. Mine Benefit Analysis: Upon completion of the acquisition, the company will hold 100% equity in Peak and an 84% stake in the core asset, the Ngualla rare earth mine project. The transaction is expected to be completed in early October 2025, with a total acquisition cost of AUD 158 million (RMB 743 million). According to Peak's FEED study, the total capital expenditure for the Ngualla mine is estimated at USD 287 million, including USD 182 million in direct capital expenditure and USD 105 million in indirect capital expenditure. The Ngualla project has a lifespan of 24 years, with an expected average annual REO production of 16,200 mt. The mine's annual operating cost is USD 64 million, and the total operating cost, including transportation expenses, is USD 76.7 million. Based on an annual REO production of 16,200 mt, the unit REO cost is USD 4,735/mt. Ngualla demonstrates excellent financial robustness, with all-in sustaining costs (AISC) maintained at a low level. According to the company's analysis, even as rare earth prices rise from USD 60/kg to USD 120/kg, the increase in Ngualla's costs remains insignificant. Therefore, the project can generate favorable profits even when rare earth prices are low. The company has formed a relatively complete industry chain, spanning from rare earth beneficiation, smelting and separation to deep processing, with abundant rare earth resource reserves. With the future commissioning of the company's existing projects and mines such as Ngualla, the company's rare earth production is expected to increase year by year. Coupled with the gradual stabilization and rebound of rare earth prices, the company's future performance is promising. Risk Warnings: Risks include the project acquisition and construction progress falling short of expectations, significant volatility in rare earth prices, and operational risks in overseas markets. It can be seen from Shenghe Resources' Q1 report this year and its 2024 annual report that changes in rare earth prices are closely related to the performance of rare earth enterprises. 》Click to view the SMM Rare Earth Industry Chain Database Taking the historical price trend of Pr-Nd oxide as an example: The price of Pr-Nd oxide generally increased in Q1 2025 compared to the end of 2024. Reviewing the price trend of SMM Pr-Nd oxide in Q1, it can be observed that the average price of Pr-Nd oxide on March 31 this year was RMB 444,500/mt, an increase of RMB 46,500/mt compared to the average price of RMB 398,000/mt on December 31, 2024, representing a Q1 increase of 11.68%. Comparing the daily average price of Pr-Nd oxide in Q1 2025 (RMB 429,605.26/mt) with that in Q1 2024 (RMB 381,646.55/mt), it can be seen that the daily average price in Q1 this year increased by 12.57% YoY. Reviewing the historical trend of the SMM average price of Pr-Nd oxide in 2024, we can see that the average price on December 31, 2024, was 398,000 yuan/mt. Compared to the average price of 442,500 yuan/mt on December 29, 2023, the average price in 2024 fell by 44,500 yuan/mt, representing a decline of 10.06%. The annual daily average price of Pr-Nd oxide in 2024 was 391,871.9 yuan/mt. Compared to the annual daily average price of 529,274.79 yuan/mt in 2023, the annual daily average price fell by 137,402.89 yuan/mt, a YoY decline of 25.96%. According to SMM quotes, the average price of SMM Pr-Nd oxide on May 26 was 435,000 yuan/mt, up 6,000 yuan/mt from the previous trading day, representing an increase of 1.4%. It is reported that recently, most rare earth mine suppliers are still reluctant to sell their inventory, with low enthusiasm for shipping goods, making it difficult for separation plants to purchase raw materials. Influenced by the recent procurement tenders from major producers with relatively high tender prices, the confidence of some suppliers in refusing to budge on prices has increased, leading to a tightening of low-priced supplies in the market, which in turn has supported the rise in rare earth prices. Currently, there is a strong wait-and-see sentiment in the market, with downstream buyers being cautious in purchasing. For the future market, it is necessary to continue to monitor the sustainability of tenders from major producers and whether there will be a significant increase in downstream demand.

[SMM Analysis: Germanium Prices Continue to Decline] SMM, March 7: Recently, domestic germanium market prices have continued to pull back. Low-priced resources of germanium dioxide and germanium ingots have been emerging in the market, with germanium dioxide prices driving the weakening of germanium ingots. Overall, the germanium market prices have shown a continuous pullback trend. Currently, the average price of germanium ingots is 15,450 yuan/kg, and the average price of germanium dioxide is 9,550 yuan/kg.

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2504 contract opened at 23,730 yuan/mt. At the beginning of the session, SHFE zinc briefly climbed, reaching a high of 23,795 yuan/mt. Subsequently, bears increased their positions, driving SHFE zinc downward below the daily average line, hitting a low of 23,570 yuan/mt near the session's end, and finally closing down at 23,615 yuan/mt...

[SMM Morning Meeting Summary: New Round of Tariffs Sparks Market Concerns, LME Zinc Center Shifts Downward] Overnight, LME zinc opened at $2,836/mt. At the beginning of the session, LME zinc fluctuated along the daily average line. By the European trading session, bears entered the market, causing LME zinc to quickly decline to a low of $2,807/mt. Later, as bears took profits and exited, LME zinc rebounded during the night session, reaching a high of $2,845.5/mt. Subsequently, the 5-day moving average exerted pressure, and the LME zinc center gradually pulled back, dropping to around $2,816/mt for consolidation, eventually closing down at $2,836/mt...

[Qinghai Province: Construction of Golmud Salt Lake Green Industrial Park to Extend the Green Electricity–Aluminum–Deep Processing Aluminum Industry Chain] The General Office of the People's Government of Qinghai Province issued the "Several Measures for a 'Good Start' in Q1 2025 in Qinghai Province." It proposed promoting high-end, intelligent, and green transformation. Actions for optimizing and upgrading traditional industries and digital transformation of manufacturing industries will be implemented. The Golmud Salt Lake Green Industrial Park will be constructed to extend the green electricity–aluminum–deep processing aluminum industry chain. Support will be provided for in-depth cooperation among upstream and downstream enterprises in the PV and lithium battery industries, as well as for the development of new material industries such as high-performance carbon fiber, copper foil, and optical fiber. The allocation of funds for industrial transformation and upgrading will be accelerated, supporting technological transformation and equipment renewal projects of companies such as Times New Energy, Salt Lake Magnesium, and Huanghe Xinye. (Cailian Press)

SMM January 15: Macro factors, on November 15, with approval from the State Council, the Ministry of Commerce, in conjunction with the Ministry of Industry and Information Technology, the General Administration of Customs, and the State Cryptography Administration, issued Announcement No. 51 of 2024, releasing the "Export Control List of Dual-Use Items of the People's Republic of China." This list, effective from December 1, 2024, includes items related to antimony, germanium, gallium, magnesium-based biomaterials, among others. In early December, the Ministry of Commerce announced that, in accordance with the relevant provisions of the "Export Control Law of the People's Republic of China" and other laws and regulations, to safeguard national security and interests and fulfill international non-proliferation obligations, it decided to strengthen export controls on related dual-use items to the US. The announcement specifies the following: 1. Prohibition of exports of dual-use items to US military users or for military purposes. 2. In principle, no licenses will be granted for the export of dual-use items related to gallium, germanium, antimony, and superhard materials to the US; stricter end-user and end-use reviews will be implemented for the export of dual-use graphite items to the US. Any organization or individual from any country or region that violates the above regulations by transferring or providing related dual-use items originating from the People's Republic of China to US organizations or individuals will be held legally accountable. This announcement took effect upon its release. According to customs data, gallium exports in 2023 were approximately 41.2 mt, while customs data for January-November 2024 showed gallium exports of about 22.2 mt. It is expected that the full-year customs data for 2024 will show a significant decline compared to 2023. The policy announcements in November-December indicate that China's export control measures for metals such as gallium and germanium will remain stringent and may become even stricter. This suggests that the overall export volume of metals like gallium and germanium in the future (2025) may see a certain degree of decline. Fundamentals, supply side, in Q4 2024, germanium ore supply remained tight. Although there was a slight increase compared to Q3, the increase was relatively small. The main sources of raw materials remained constrained, with limited ore output. Some enterprises in south China planned to increase production in Q4, but progress was minimal due to raw material shortages. The nationwide germanium market production in 2024 is estimated at 150-160 mt, a decline compared to 2023. However, from the perspective of large manufacturers' inventories, levels remained medium to high, primarily allocated for fulfilling long-term contract obligations and future supply chain needs, with external sales still being conservative. The same applies to small and medium-sized manufacturers. From the perspective of downstream enterprises, inventory levels showed signs of bottoming out, and downstream stocking willingness was strong, particularly among manufacturers of lenses and optical components. Demand side, the infrared optics sector accounted for approximately 40%, with overall demand in 2024 increasing significantly, though it slightly declined near year-end in Q4. The semiconductor sector accounted for about 10%, with overall demand in 2024 showing significant growth and stable demand in Q4. The telecommunications fiber optics sector accounted for about 40%, with overall demand in 2024 remaining stable without significant growth, and Q4 demand falling short of expectations. Other sectors, such as PV and industrial production, accounted for about 10%, with Q4 demand declining. Imports and exports, customs data showed germanium exports of approximately 6.376 mt in Q3. In Q4, exports for October-November were about 3.467 mt, indicating that Q4 germanium exports are expected to decline compared to Q3. Prices, after reaching a peak of approximately 19,000 yuan/kg in Q3, market prices stabilized in Q4 as the supply and demand fundamentals adjusted. By late November to early December, as downstream demand declined, prices showed a pullback trend, though the extent of the pullback was moderate. By the end of December, germanium ingot prices were around 17,500 yuan/kg. Market outlook, due to the robust consumption growth in germanium's major downstream industries, particularly the strong growth expectations for germanium demand in the infrared and telecommunications fiber optics sectors, germanium prices are expected to remain favorable in the long term. The price range is likely to operate between 16,000-25,000 yuan/kg. Future focus, with the development of high-data computing and transmission industries such as autonomous driving and AI, germanium fiber optics, as an important material in the optical fiber communication field, play an irreplaceable role in enhancing fiber optic refractive index and optimizing transmission performance. The replacement of standard optical fibers with germanium fiber optics may lead to significant germanium demand, potentially impacting germanium market prices.

Quartz sand plays a crucial role in the glass manufacturing industry, serving as one of the primary raw materials essential for producing various types of glass products. Its significance spans from the creation of container glass to high-performance specialty glass utilized in electronics and solar applications. The demand for high purity quartz sand has been escalated due to the increasing quality standards imposed by glass manufacturers, prompting an exploration into the pricing strategies relevant to this critical resource. Understanding the dynamics of quartz sand pricing is vital for industry stakeholders aiming to navigate a competitive market landscape and achieve sustainable profitability.