Among precious and rare metals, osmium is a niche yet irreplaceable material, overshadowed by gold, silver, platinum and palladium but critical for high-end industry and scientific research thanks to its unique physical and chemical properties. This report breaks down osmium’s core attributes, supply, applications and market traits to unveil the “densest natural metal”. I. Basic Profile: A Distinct Platinum Group Metal Osmium (Os, atomic number 76) is a Group Ⅷ transition metal and part of the platinum group metals (PGMs), extremely scarce in nature. It has no independent deposits, only extracted and purified via platinum ore smelting alongside platinum, iridium, ruthenium, rhodium and palladium, ruling out large-scale standalone mining. Its standout properties: unmatched density (22.59g/cm³ at 20℃, higher than gold and platinum), exceptional heat resistance (melting point 3033℃, boiling point over 5000℃), and high hardness & corrosion resistance (Mohs hardness 7). It is highly brittle with poor plasticity, mostly used in powder or alloy forms. Key Safety Warning: Osmium oxidizes to toxic, volatile osmium tetroxide (OsO₄) when heated above 100℃ in air. Full-process operations (smelting, storage, transport, processing) require inert gas protection, raising production and application thresholds. II. Supply Landscape: Extreme Scarcity & Monopolized Output Osmium is far rarer than gold and platinum, with a crustal abundance of just 0.001ppm, one of the lowest stable elements globally. Proven recoverable reserves are extremely limited and highly concentrated. Global output hinges entirely on platinum mining and smelting, staying at a tiny scale: annual global production is roughly 1 ton (data from International Platinum Group Metals Association), while China’s annual output is less than 100kg. South Africa and Russia dominate global osmium resources and smelting capacity, forming a highly monopolized, inelastic supply market. Tight supply-demand balance persists, supporting strong price resilience and volatility. III. Core Applications: High-End & Irreplaceable Scenarios Despite low production and narrow application scope, osmium is a rigid material for high-precision sectors with no low-cost substitutes, focusing on four key fields: Special Hard Alloys: Osmium-based alloys excel in hardness, wear and corrosion resistance, used for high-precision bearings (luxury watches, instruments), premium pen nibs, medical scalpels and high-end mechanical wear parts. Industrial Catalysis: Osmium and its compounds act as high-efficiency catalysts for fine chemical and organic synthesis (hydrogenation, oxidation), boosting process efficiency and product purity with stable low-volume demand. Scientific Research: Toxic osmium tetroxide is an irreplaceable stain for electron microscopy samples in materials and life sciences; high-purity osmium powder serves as a specialty lab consumable. Aerospace & Military: Leveraging high density and thermal stability, osmium is used for specialty high-temperature components, precision guidance parts and high-end electrical contacts, with high added value and growing demand amid industrial upgrading. IV. Core Market Traits Osmium is a niche PGM marked by extreme resource scarcity, monopolized inelastic supply, rigid high-end demand and total irreplaceability. Unlike bulk commodities, its market is driven by supply shifts, high-end industrial demand and compliance costs, with a small scale and low trading frequency, remaining a critical material for high-end industry and scientific research.

In the fields of precious and rare metals, compared with well-known categories such as gold, silver, and platinum-group metals, osmium has always remained a niche yet highly distinctive presence. With its unmatched physicochemical properties, it has become an indispensable key material in high-end industry and scientific research. Even though it receives limited market attention, it still possesses irreplaceable value. This article will provide a comprehensive breakdown of osmium metal, covering its basic properties, resource supply, application scenarios, and market characteristics, to offer a full understanding of this “king of density.” I. First Encounter with Osmium: A Hardcore Outlier Among the Platinum-Group Metals Osmium, with the chemical symbol Os and atomic number 76, belongs to the platinum-group metals. It is a Group VIII transition metal on the periodic table and also one of the rarest metals found in nature. As one of the six major members of the platinum-group metal family, osmium has no independent ore deposits and is commonly associated with platinum, iridium, ruthenium, rhodium, and palladium. It can only be recovered through purification during platinum ore smelting and cannot be extracted through standalone large-scale mining. This inherent characteristic directly defines its scarcity. Osmium’s physicochemical properties are truly unique in the world of metals, with highly recognizable core characteristics: first, it has the highest density in the world. Under standard conditions at 20°C, its density reaches 22.59 g/cm³, far exceeding that of gold (19.32 g/cm³) and platinum (21.45 g/cm³). It is currently the densest naturally occurring metal known, and at the same volume, it weighs far more than various conventional precious metals. Second, it demonstrates excellent high-temperature resistance, with a melting point of 3,033°C and a boiling point exceeding 5,000°C. It remains highly stable in high-temperature environments and can adapt to various industrial and scientific applications under extreme heat. Third, it has outstanding hardness and strong corrosion resistance. With a Mohs hardness of 7, it is hard, durable, and wear-resistant, and is difficult to corrode under conventional acidic or alkaline conditions. However, its drawbacks are also quite evident: it is highly brittle and has extremely poor plasticity, making it impossible to process through conventional mechanical methods, so it is mostly used in powder or alloy form. A key safety precaution must be emphasized here: when osmium metal is heated in air to above 100°C, it slowly oxidizes to form osmium tetroxide (OsO₄). This substance is highly irritating, highly volatile, and somewhat toxic. Therefore, the entire process involving osmium, including production smelting, storage and transportation, and deep processing, must be carried out under the protection of inert gas and in strict compliance with operational standards. These exceptionally high compliance and control requirements further raise the barriers to osmium’s production and application. II. Extreme Scarcity: Osmium’s Resource Endowment and Supply Landscape Osmium is far rarer than commonly recognized precious metals such as gold and platinum, and it can be regarded as a “niche treasure” in the precious metals sector. Relevant data show that the average abundance of osmium in the Earth’s crust is only about 0.001 ppm, making it one of the least abundant stable elements in the crust. Globally, identified recoverable reserves are extremely limited, and resource distribution is highly concentrated, without the formation of widely distributed ore deposits. Supply side, the scarcity of osmium is even more pronounced. As there are no standalone mines, global osmium production is entirely dependent on platinum ore mining and smelting, with capacity remaining at an extremely low level year-round. Global annual production is about 1 mt (data from the International Platinum Group Metals Association), while China’s annual production is less than 100 kg, with supply far below that of other platinum group metals. From the global supply landscape, traditional major platinum group metal-producing countries such as South Africa and Russia control the vast majority of the world’s osmium resources and smelting capacity. Industry supply shows a highly monopolized pattern, with extremely low supply elasticity. Minor changes in mining progress, geopolitical conditions, environmental protection-related controls policies, and platinum group metal smelting capacity all directly affect global osmium supply. This dual characteristic of “inherent resource scarcity + constrained supply” has kept the osmium market in a long-term tight supply-demand balance and has also given it strong price resilience and fluctuation elasticity, securing a unique position in the rare metals market. 3. Exclusive to High-End, Cutting-Edge Applications: Core Application Scenarios of Osmium Although osmium has limited production and a relatively narrow range of applications, its exceptional physical and chemical properties have enabled it to take root precisely in high-end niche fields, making it an irreplaceable core material in many advanced applications. Downstream demand is concentrated and highly rigid, with no low-cost substitutes currently available. Its core applications are mainly concentrated in four major fields: 1. Special Hard Alloys: Core Raw Material for High-End Wear-Resistant Components Osmium-based alloys made by melting osmium with metals such as iridium and platinum combine ultra-high hardness, wear resistance, and corrosion resistance, making them key core materials for high-end precision instruments. These alloys are widely used in high-precision bearings for high-end watches and precision instruments, premium fountain pen nibs, professional turntable styluses, medical precision scalpels, and high-end wear-resistant mechanical components. They can significantly improve component service life and durability, making them suitable for long-term, high-load, high-wear operating environments, and they are core wear-resistant materials in the high-end manufacturing sector. 2. Industrial Catalysis: Dedicated High-Efficiency Additive for Fine Chemicals Osmium and its compounds have excellent catalytic activity and serve as dedicated catalysts in certain fine chemical and organic synthesis reactions. Especially in special chemical processes such as hydrogenation and oxidation reactions, they offer high catalytic efficiency and strong reaction selectivity, effectively optimizing process flows and improving product purity and yield. Although the unit consumption of osmium catalysts is extremely low, they are rigid process necessities and are difficult to replace with other common metal catalysts, resulting in relatively strong downstream demand stability. 3. Scientific Research and Detection: Essential Specialty Consumable for Laboratories Although osmium tetroxide is toxic, it has irreplaceable value in scientific research. It is a high-quality staining agent for biological samples and microscopic material sections under electron microscopes, significantly enhancing the clarity and contrast of observed samples, and is an indispensable experimental reagent in frontier research fields such as materials science and life sciences. Meanwhile, high-purity osmium powder was also widely used in high-end scientific research experiments and the R&D of specialized new materials, serving as a niche but essential consumable for major research institutes and high-end laboratories. 4. High-End Specialized Fields: Core Components for Military and Aerospace Applications Leveraging its core advantages of high density, high-temperature resistance, and high stability, osmium was also applied in specialized high-temperature components for aerospace and military applications, precision guidance components, as well as niche scenarios such as high-end electrical contacts and wear-resistant coatings. These applications were all concentrated in cutting-edge, high-precision sectors. Although the volume of each individual application was small, the product value-added was extremely high. Moreover, with the technological iteration and development of high-end manufacturing and the military and aerospace industries, related demand had the potential for steady growth. IV. Summary of the Core Characteristics of the Osmium Metal Market Overall, as a rare category among platinum group metals, osmium had highly distinctive core characteristics: extreme scarcity on the resource side, highly monopolized supply with insufficient elasticity; application-side concentration in high-precision, cutting-edge fields, with rigid and irreplaceable demand; and unique physicochemical properties, combining both advantages and application barriers. Unlike the market-driven fluctuation logic of conventional bulk commodities, the osmium market was significantly affected by factors such as supply-side changes, downstream demand from high-end industries, and compliance costs. The overall market size was small, and trading frequency was relatively low, placing it in the category of niche rare precious metals. Its core value always revolved around the two key points of “scarcity” and “irreplaceability,” making it an indispensable key metal material in high-end industrial and scientific research fields.

According to precious metals and refinery services provider Heraeus, the gold price continues to show a consolidation phase. Following record highs at the end of December, the market is currently moving sideways within a clearly defined trading range rather than forming a pronounced upward or downward trend.

【SMM News Flash】The European Union is considering further intensifying trade sanctions against Russia. Market sources revealed that the EU is contemplating a ban on imports of Russian platinum group metals and copper as part of new sanctions measures. Market sources indicated that, if the restrictions gain support from member states, they may cover elements such as iridium, rhodium, platinum, and copper. EU sanctions require unanimous approval from all member states, and the new package is expected to be adopted this month.

Against the backdrop of a reshaped supply-demand pattern, accelerated technological innovation, and an urgent need for green transformation in the global copper industry, the CCAE 2025 SMM (14th) Copper Industry Annual Conference & the 2nd Copper-Based New Materials Industry Chain Development Conference of Shanxi Province , jointly organized by Zhongtiaoshan Nonferrous Metals Group Co., Ltd./North Copper Co., Ltd. and SMM, will be grandly held in Yuncheng, Shanxi, from October 15-17, 2025 . Themed " "Smart Innovation in Copper-Based New Materials, Green Initiatives for a New Industrial Future" , the conference will focus on technological breakthroughs, market trends, policy coordination, and international cooperation within the copper industry chain. It will feature keynote speeches, industry matchmaking, project signings, and technology exhibition sessions. We invite leading enterprises, research institutions, financial institutions, and industry experts from both domestic and overseas markets to participate and jointly explore new paths for collaborative development within the industry chain. Click on the registration form to immediately register for the conference. We look forward to meeting you there. Zhongtiaoshan Nonferrous Metals Group Co., Ltd. (hereinafter referred to as Zhongtiaoshan Group), established in 1956, was a key project under China's "First Five-Year Plan." It is a major copper conglomerate in North China, integrating geological exploration, mining, beneficiation, smelting, deep processing, machinery manufacturing, construction materials, international trade, scientific research and design, and comprehensive utilization of tailings, with copper as its main business and multiple industries operating in parallel. It has undertaken key (copper industry) scientific research projects during the "Sixth Five-Year Plan," "Seventh Five-Year Plan," "Ninth Five-Year Plan," and "Tenth Five-Year Plan" periods, serving as an important breeding ground, practice site, and technological source for China's copper industry. Its largest holding subsidiary, North Copper Co., Ltd. (hereinafter referred to as North Copper, stock code 000737), was successfully listed on the Shenzhen Stock Exchange in December 2021. In 2023, it was elected as the "chain leader" enterprise for the "copper-based new materials" key industry chain in Shanxi Province, shouldering the significant mission of "leading and promoting the high-quality development of the copper industry in Shanxi Province." As one of China's important copper production bases, Zhongtiaoshan Group currently has total assets of 20.758 billion yuan, owner's equity of 6.606 billion yuan, and a liability ratio of 68.17%. It has 45 subsidiary (branch) companies, including 23 subsidiaries and 22 branches, with over 10,300 employees. Its main products and capacities include 10.5 million mt of mining, 11.5 million mt of beneficiation, 55,000 mt of copper in copper concentrates, 350,000 mt of copper cathode, 30,000 mt of high-performance rolled copper strip, 5,000 mt of high-precision rolled copper foil, 15 mt of gold ingots, 275 mt of silver ingots, 1.5 million mt of cement, and 20,000 mt of wear-resistant materials. It also comprehensively recovers valuable metal elements such as platinum, palladium, selenium, tellurium, bismuth, rhodium, and iridium. It ranks among the top 10 in China's copper industry in terms of copper mining, beneficiation, and smelting capacity. Product Images Contact Information Shanxi Beitong New Material Technology Co., Ltd. is a wholly-owned subsidiary of North Copper, established in January 2020 and located in Yuncheng City, Shanxi Province. It is a technology-based enterprise integrating the R&D, production, and sales of high-performance copper and copper alloy plate/sheet, strip, and foil materials. The product quality meets advanced industry standards, and the company has successively obtained ISO9001 Quality Management System, ISO14001 Environmental Management System, ISO45001 Occupational Health and Safety Management System, IATF16949 Automotive Quality Management System, and ISO50001 Energy Management System certifications. Its products are mainly applied in high-end fields such as power transmission, consumer electronics, new energy, 5G communication, AI intelligence, aerospace, and graphene film preparation. The company will be based on its position as the "chain leader" enterprise in the copper-based new material industry chain, a key industry chain in Shanxi Province under Zhongtiaoshan Group, and will contribute to the creation of an advanced manufacturing cluster for copper-based new materials in North China. Focusing on the extension of North Copper's copper deep-processing industry chain, the company adheres to the mission and vision of becoming a first-class benchmark enterprise in the copper processing industry, and is fully committed to promoting the high-end development of its copper-based new material industry. Scan the QR Code to Register Immediately SMM Conference Contact Person Li Chongshan 173 4975 4665 lichongshan@smm.cn

After a decade of "simmering," platinum has entered a mode of rushing to buy amid continuous price rise relative to gold, with prices hitting new highs. Through interviews with multiple sources, a reporter from Cailian Press learned that compared to gold's stellar performance in recent years, platinum's former "value trough" is attracting capital inflows. Driven by expectations of supply contraction, jewelers using it as a "flat substitute" for gold, and a significant increase in medium and long-term hydrogen energy demand, the industry generally holds a relatively optimistic outlook for platinum prices in the long term. In the A-share market, shares of platinum industry chain companies such as Sino-Platinum Metals Co., Ltd. (600459.SH), Haotong Technology (301026.SZ), and Huayang New Materials (600281.SH) have strengthened recently, all hovering near their two-year highs. Platinum prices hit a nearly 10-year high Since June, platinum prices have entered a rally mode. According to data from the Chicago Mercantile Exchange, as of June 10, 2025, PLc1 broke through $1,200 per ounce, reaching a nearly 10-year high. As of June 11, the Pt99.95 on the Shanghai Gold Exchange rose by approximately 22% this week. PLc1 price trend. Source: Investing.com "It can be understood as a catch-up rally," Xu Yongqi, chief analyst of metal and new materials at Hua'an Securities, told the reporter. Over the past decade, platinum prices have generally fluctuated considerably. Compared to the strong price trends of gold and silver in recent years, platinum has to some extent formed a "value trough," attracting capital inflows. Zhu Zhigang, director of the Platinum Committee of the Guangdong Gold Association, said in an interview with Cailian Press that the sharp rally in platinum prices in a short period suggests speculative sentiment. Meanwhile, against the backdrop of high gold prices, some upstream merchants in the jewelry market are intentionally increasing efforts to promote platinum as a substitute for gold. A relevant executive from a large domestic jeweler told Cailian Press that since the second half of 2024, the company has been vigorously promoting the sales of platinum series products, as platinum offers higher gross margins compared to gold products. From a fundamental perspective, the continuous pullback in inventory is an important support for the rise in platinum prices. Data from the World Platinum Investment Council (WPIC) shows that global above-ground platinum stocks are expected to fall to 67 mt in 2025, meeting only three months of market demand. In the first quarter of 2025, global total platinum supply fell by 10% YoY to 45 mt, while demand increased by 10% YoY to 71 mt over the same period. In terms of platinum demand structure, automotive catalysts account for 40%, jewelry accounts for 25%, industrial uses (excluding the automotive industry) account for 20%, and investment demand accounts for 9%. Three major A-share platinum industry chain companies In the futures market, shares of Sino-Platinum Metals Co., Ltd., Haotong Technology, and Huayang New Materials in the A-share platinum industry chain have strengthened recently, all hovering near their two-year highs. It should be noted that currently, there are no domestic A-share companies primarily engaged in platinum ore business. One of the main businesses of the aforementioned three companies is the recycling, processing, and manufacturing of platinum group metals (platinum, ruthenium, rhodium, palladium, osmium, and iridium). A representative from Sino-Platinum Metals Co., Ltd. told a Cailian Press reporter that the company is not a mineral resources company. As the prices of the relevant precious metal raw materials have been hedged, their price changes have relatively small impact on the company. The company's main profits come from the processing fees of various precious metal-related products. In fact, Sino-Platinum Metals Co., Ltd. is a new materials company. In terms of capacity, Sino-Platinum Metals Co., Ltd. has the largest platinum group metal recycling and utilization base in China, with an annual capacity of around 10 mt currently, equivalent to the output of a medium-sized mine. The actual recycling volume in 2024 was nearly 15 mt. A company representative told a Cailian Press reporter that after the second phase of the Yimen Precious Metal Recycling and Processing Project reaches full production, the company will have an annual platinum group metal capacity of about 20 mt. The project has recently entered the final stage of trial production and is gradually transitioning to mass production. Haotong Technology's production has been unstable in recent years, with precious metal recycling production volumes of approximately 110 mt, 234 mt, and 64 mt from 2022 to 2024. Previously, the company stated on an investor interaction platform that it produces platinum, palladium, rhodium, silver, gold, iridium, and ruthenium metals. To avoid excessive exposure of company information and prevent competitors from understanding the company's situation, it has not disclosed specific production data. According to public information, as of the end of 2023, Haotong Technology's processing capacity of spent catalysts containing precious metals was approximately 2,600 mt. The first phase of Haobo New Materials' precious metal secondary resource comprehensive utilization project was designed to process 3,000 t/a of spent automotive catalysts, while the second phase was designed to process 12,000 t/a of spent automotive catalysts and 3,000 t/a of spent agents containing palladium, etc. Haotong Technology previously mentioned in an announcement that the originally planned construction capacity of the aforementioned first-phase project was mainly positioned for spent automotive catalyst recycling. At this stage, a centralized and standardized raw material market for spent automotive catalyst recycling has not yet formed, and the overall development of this market has fallen short of expectations, resulting in the underutilization of some of the company's completed capacities. The company has postponed the date for the entire project to reach the intended usable state to September 30, 2026. An industry chain representative told a reporter that the recycling of platinum group metal scrap is dominated by a seller's market, in a state of full competition. The industry adopts a tendering system, with basically one tender per order. Regarding Huayang New Materials, the company has an annual production capacity of 2,500 kg for platinum mesh products and an annual disposal capacity of 1,000 mt for spent catalysts containing precious metals. The long-term bullish trend remains. Zhu Zhigang stated that if the platinum price can steadily break through the high-pressure level of $1,200/ounce, there is still room for further upside in the future market. Otherwise, it may fall back to around $1,000/ounce again. Meanwhile, attention should also be paid to gold prices, as the price trends of the two metals show a certain degree of convergence. In terms of end-use consumption, industry chain insiders told a Cailian Press reporter that, based on the Shenzhen Shuibei Jewelry Trading Market, platinum series products are currently concentrated in the hands of mid-to-upstream wholesalers, and it will take time for these products to reach end-use consumption, with lower acceptance compared to gold. It is worth noting that platinum inventories among leading jewelry retailers are currently low. Taking Chow Tai Seng (002867.SZ) and CHJ Jewellery (002345.SZ) as examples, as of year-end 2024, platinum products accounted for less than 0.5% of their raw material inventories. An industry insider told a Cailian Press reporter that some upstream enterprises in the jewelry market are actively increasing their marketing efforts for platinum products. Once the market reaches a consensus on buying amid continuous price rise, low inventories will struggle to fully meet demand in the short term, potentially continuing to stimulate platinum price increases. Xu Yongqi stated that, from a fundamental perspective, platinum is in a trend of tight supply and strong demand. Global capital expenditures in the mining sector have declined in recent years, and production has pulled back. In the medium and long-term, global demand for platinum related to hydrogen is expected to grow significantly. Compared to gold or other rare minor metals, the current price increase of platinum is not high. After a decade of stagnation, platinum prices are likely to rise overall in the next three to five years, with the potential to reach $2,000 per ounce. An industry chain insider told a Cailian Press reporter that there is still a certain gap between some of the core technologies of domestic hydrogen fuel cells and those of leading countries such as Japan. The platinum-carbon catalyst in hydrogen fuel cells plays a crucial role in catalyzing discharge, with platinum accounting for about half of the catalyst cost. With the development of China's hydrogen energy industry, there is expected to be a significant increase in platinum demand in the long term. WPIC forecasts that the total platinum supply in 2025 will be at its lowest level in five years, with the expected shortage expanding to 30 mt, marking the third consecutive year of shortage. It is projected that by 2030, global platinum demand from hydrogen energy applications will increase from 1% to 11%.

On May 16, at the 2025 SMM (6th) Silver Industry Chain Innovation Conference , hosted by SMM Information & Technology Co., Ltd. (SMM), co-organized by Ningbo Haoshun Precious Metals Co., Ltd. and Quanda New Materials (Ningbo) Co., Ltd., and strongly supported by sponsors including Fujian Zijin Precious Metals Materials Co., Ltd., Huizhou Yian Precious Metals Co., Ltd., Jiangsu Jiangshan Pharmaceutical Co., Ltd., Zhengzhou Jinquan Mining and Metallurgical Equipment Co., Ltd., Hunan Shengyin New Materials Co., Ltd., Zhejiang Weida Precious Metals Powder Materials Co., Ltd., Guangxi Zhongma Zhonglianjin Cross-border E-commerce Co., Ltd., Suzhou Xinghan New Materials Technology Co., Ltd., Yongxing Zhongsheng Environmental Protection Technology Co., Ltd., IKOI S.p.A, Hunan Zhengming Environmental Protection Co., Ltd., Kunshan Hongfutai Environmental Protection Technology Co., Ltd., and Shandong Humon Smelting Co., Ltd., SMM silver analyst Wang Huilin discussed the topic of "Evolution of Silver Supply and Demand and Price Outlook." 1. Current Status of Silver Mine and Refined Silver Supply In 2024, global silver-bearing mineral reserves totaled 640,000 mt in metal content. Silver associated with polymetallic ores accounts for more than two-thirds of the world's silver mineral resources. The self-sufficiency rate of domestic silver concentrates is approximately 50%, with imported silver concentrate processing trade being the main trade mode. In 2024, the total imports of silver concentrates reached nearly 1.68 million mt, with silver mine resources in South America being the primary source of domestic silver concentrate imports. Distribution of Domestic Refined Silver Production In 2024, SMM 1# silver production exceeded 17,000 mt, with large-scale silver smelting capacity concentrated in Henan, Yunnan, Shandong, and other regions. SMM 1# silver production is expected to continue to record positive growth in 2025. The main sources of mineral silver supply are by-products associated with lead concentrates and copper concentrates. ►SMM Analysis • Normalization of lead smelting losses, prioritization of by-product revenue Lead smelters prioritize high silver-content raw materials for comprehensive recovery to increase profit output and offset losses from lead treatment charges (TC). • Decline in silver recovery from imported copper ores The continuous decline in imported copper ore TC in 2025 has affected the supply of copper smelting raw materials, with the main YoY decline in refined silver production in the first half of 2025 coming from precious and rare metal recovery in copper smelters. Distribution of Recycled Silver Recovery Capacity According to SMM estimates, with the construction of new silver recovery capacity, the estimated annual production of recycled silver in 2025 has exceeded 5,000 mt. ►SMM Analysis • Traditional recycled silver recovery capacity: Distributed in Hunan, Zhejiang, and Guangdong, with raw materials mainly consisting of metallurgical slag and other electronic and electrical materials. • High-value precious and rare metal recovery capacity: Recovery of catalysts and various silver-based new materials containing platinum, rhodium, palladium, etc., with comprehensive recovery of multiple precious and rare metals. • Emerging recycled silver recovery capacity: Able to rely on the rapid development of the PV industry chain, with a focus on solar cells, silver paste, wiping cloths, etc. The increase in recycled silver from the PV industry component recycling market brings long-term supply pressure. It analyzed this from the perspectives of the expected market size and growth rate of PV silver recycling from 2022-2050, as well as the estimated proportion of waste component sources. 2. Industrial Demand and Future Trends of Silver The two end-use sectors with the most significant growth in silver end-use consumption are PV and NEVs. The analysis incorporates data on PV installed capacity and projections from 2010-2030, solar cell production and projections from 2020-2030, the expected share of different solar cell technologies from 2024-2030, and NEV sales data from 2015-2025E. ►SMM Analysis Despite the current technological trends of silver reduction and substitution, the silver paste consumption per GW for mainstream Topcon solar cells remains at 11-13 mt/GW. Therefore, it is estimated that silver consumption from domestic solar cell production will exceed 6,000 mt in 2025. Silver's industrial demand has a wide range of end-use applications, with consumption demand outside of PV and NEVs remaining relatively stable. The industrial demand for silver is gradually increasing, with global industrial demand accounting for approximately 62% of total demand in 2025. Among the global silver consumption demand, China is the major silver consumer. In 2025, domestic silver consumption demand is expected to reach approximately 19,000 mt, accounting for over 40% of global consumption demand. 3. Current Development Status of Silver Nitrate, Silver Powder, and Silver Paste in China 3.1 Silver Nitrate Market - Changes in Domestic Silver Nitrate Capacity and Expectations for New Projects ►SMM Analysis Ø The rigid demand for silver nitrate driven by PV installations and other new energy sectors is the primary factor driving the expansion of silver nitrate capacity. Ø With qualifications prioritized, after the concentrated release of capacity, the commissioning progress of newly approved projects has slowed down. Following the rapid expansion of silver nitrate capacity, industry competition has intensified, and operating rates have declined. ►SMM Analysis Ø The growth in silver nitrate production is correlated with the expansion of downstream silver powder and silver paste. However, the growth in silver nitrate production has not kept pace with the progress of capacity investment, leading to a decline in the industry's overall operating rate. 3.2 Silver Powder Market - Domestic Demand for Silver Powder In 2022, silver powder localisation occurred, and the demand for imported silver powder weakened. ►SMM Analysis Ø The substitution process of domestically produced silver powder has accelerated. Imported silver powder still holds certain advantages in technical parameters, with Japan's DOWA being the world's largest supplier of silver powder for PV silver paste. Ø The import of domestic high-end silver powder products still primarily comes from Japan, the US, and South Korea. Domestic silver powder capacity is mainly distributed in regions such as Hunan, Jiangsu, and Hubei. In 2025, there are still expectations for the expansion of domestic silver powder capacity, with an increase close to 20%, primarily driven by new projects in Hunan and Hubei. Monthly Supply-Demand Balance of Silver Paste Estimated Based on Solar Cell Production • Produce based on sales, with short inventory cycles and high long-term storage costs. •The formulation of silver paste needs to be customized according to user requirements, typically containing 90-92% silver, with the remaining portion consisting of organic carriers, glass oxides, and a small amount of other additives. 4. Silver Supply-Demand Balance and Price Outlook Supply-Demand Balance Table for Silver Ingots (Domestic) China has consistently been a silver exporter. In 2024, the net exports of unwrought silver with a purity of ≥99.99% from China were 3,982 mt. From January to November 2025, the exports of unwrought silver with a purity of ≥99.99% from China were 3,606 mt. Supply and Demand in the Silver Spot Market – SMMTD Premiums and Discounts Data Points Medium and long-term silver prices are expected to fluctuate upward, with bullish factors outweighing bearish ones. 》Click to view the special report on the 2025 SMM (6th) Silver Industry Chain Innovation Conference

Gwede Mantashe, South Africa's Minister of Mineral Resources and Energy, issued a statement in Cape Town on the 20th, stating that the South African Cabinet had formally approved the Critical Minerals and Metals Strategy and decided to solicit public comments on the Mineral Resources Development Bill (MRDB) 2025. He indicated that the release of these two policy documents marked a crucial step forward for South Africa in enhancing policy and regulatory certainty and unlocking the country's potential in the global minerals market. According to reports, the strategy comprehensively evaluates the "criticality" of minerals based on eight indicators, conducting research on 21 minerals across dimensions such as export potential, job creation, supply risk, sales performance, and substitutability. Mantashe stated that critical minerals play a pivotal role in global green transformation, energy security, and high-end manufacturing. The strategy formulated by the South African government explicitly identifies platinum, manganese ore, iron ore, coal, and chrome ore as highly critical minerals; gold, vanadium, palladium, rhodium, and rare earths as moderately-to-highly critical minerals; and copper, cobalt, lithium, graphite, nickel, titanium, phosphate, fluorite, zirconium, uranium, and aluminum as moderately critical minerals. The statement noted that the list would be continuously reviewed and updated based on factors such as market conditions, exploration progress, technological advancements, substitution possibilities, recycling, and geopolitical dynamics. South Africa will advance its critical minerals strategy through six pillars: geoscience exploration; localization and value chain extension; R&D investment and skills development; infrastructure and energy security; fiscal instruments and financial support; and policy and regulatory harmonization. To support the implementation of the strategy, the South African government simultaneously announced the Mineral Resources Development Bill (MRDB) 2025 and solicited public comments. The bill aims to enhance mining governance, combat illegal mining, and promote the legal and compliant development of small and medium-sized miners by streamlining the permitting process, coordinating with environmental and water resource regulations, and introducing a dedicated permitting system for small-scale and artisanal mining.

According to an analysis of 2024 data by independent research providers MERICS and Rhodium Group, despite Chinese companies increasingly avoiding the UK, Germany, and France, China's direct investment in Europe saw its first growth in seven years in 2024, driven by EV and battery projects in Hungary. The data showed that China's total foreign direct investment (FDI) in the EU and the UK surged by 47% last year, reaching 10 billion euros. This figure broke the previous downward trend that had persisted for several consecutive years. Max Zenglein, chief economist at MERICS, said that the EU remains attractive to Chinese investors. China's direct investment in Europe is primarily driven by large companies. CATL, Tencent, Geely, Envision Technology, and battery maker Gotion High-tech accounted for nearly half of the total investment. Overall, in the face of increasing political scrutiny and trade tensions, Chinese companies have shifted their focus from mergers and acquisitions (M&A) to greenfield investments in recent years. Greenfield investments, also known as new-build investments, refer to enterprises established by investment entities such as multinational corporations in the host country, where all or part of the asset ownership belongs to foreign investors. Such investments directly lead to an increase in the host country's production capacity, output, and employment. The data showed that China's greenfield investments in Europe last year increased by 21% compared to 2023, marking the third consecutive year of growth. Although M&A investments reached 4.1 billion euros last year—a sharp increase of 114%—their base was relatively low. The report revealed that seven out of China's top ten investments in Europe last year involved the EV and battery supply chain. Four of these involved Hungary. The largest investment remains CATL's 7.5 billion-euro battery factory in Hungary, announced in 2022 (which is accounted for in greenfield investments in batches during the construction period). The report stated, "CATL once again became the largest investor in 2024, accounting for 16% of the total investment, primarily from its battery plant under construction in Hungary." It added that the battery giant has been China's largest investor in Europe over the past five years. Hungary has been China's closest partner in Europe in recent years , attracting 31% of China's investment in Europe last year, easily surpassing traditional European powers Germany, France, and the UK. These three European powers collectively accounted for 20% of all Chinese investment in Europe last year, down from the 52% average of the previous four years. Last week, the Hungarian government also signed a strategic cooperation agreement with BYD. BYD announced that it will open its European headquarters and R&D center in Hungary and expand its existing assembly plant in the Central European hub. In terms of mergers and acquisitions (M&A), the most representative investment was undoubtedly Tencent's acquisition of Polish video game developer Techland for 1.5 billion euros. However, it is expected that overall M&A activities will remain sluggish. As Chinese enterprises' R&D capabilities have strengthened, the motivation for M&A has weakened. Yan Dong, the Vice Minister of Commerce of China, stated on May 9 that by the end of 2024, EU enterprises had cumulatively invested over $150 billion in China, while China had cumulatively invested nearly $110 billion in direct investments in Europe. China-EU investment cooperation has entered a "two-way fast lane," with great potential for the future. Yan Dong pointed out that currently, the world is undergoing accelerated changes over a century, with multiple risks and challenges overlapping. Unilateralism and protectionism are severely impacting international rules and order, making the strategic significance and global influence of the healthy and stable development of China-EU relations even more prominent. China is willing to work with the EU to implement the important consensus reached by leaders of both sides, promote the improvement of bilateral trade and investment efficiency, properly handle economic and trade differences through dialogue and consultation, maintain the security and stability of industrial and supply chains, expand cooperation in green and digital fields, jointly uphold multilateralism and free trade, strengthen coordination on multilateral issues such as climate change and WTO reform, inject more stability and positive energy into China-EU relations, and contribute to global economic recovery.

[SMM: Industrial demand and ETF investment demand may support silver prices to fluctuate upward in the medium and long-term] SMM silver analyst Wang Huilin discussed the topic of "Evolution of Silver Supply and Demand and Price Outlook". According to SMM's estimates, with the construction of new silver recycling capacity, the estimated annual production of recycled silver in 2025 has exceeded 5,000 mt. Despite the current technological trends towards silver reduction and substitution, the silver paste consumption per GW of mainstream Topcon solar cells remains at 11-13 mt/GW. Therefore, the estimated silver consumption from domestic solar cell production in 2025 exceeds 6,000 mt. Industrial demand for silver is gradually increasing, with global industrial demand for silver accounting for approximately 62% of total demand in 2025.