Dear Users, Greetings! Thank you for your continued attention and support for Shanghai Metals Market (SMM)! The SMM Crude Lead Delivered Duty Paid Port Price has now been officially launched. The price assessment methodology is described as follows. I. SMM Price Assessment Methodology General Provisions Shanghai Metals Market (hereinafter referred to as SMM) is a fully independent third-party service provider. SMM does not participate in any substantive transactions but maintains close communication with buyers or sellers in its capacity as a market observer or organizer, and provides relevant services to the market. Through communication and exchanges with industry professionals, SMM continuously develops, reviews, and revises its methodology, adopting the most common product specifications, trade terms, and trade conditions in the industry, and giving equal attention to all normal transactions that meet specification standards. SMM reserves the right to exclude from its price assessments any price data or information deemed less reliable or unrepresentative. SMM reports daily spot transaction prices in China's spot market, commonly referred to as SMM prices. SMM prices are generated strictly in accordance with defined methodologies. SMM has methodology definitions for all metal product prices it reports. All methodologies and definitions are published on SMM's official website (www.smm.cn) so that all market participants can understand the processes and standards of SMM price reporting. The SMM price assessment methodology serves as the basis and foundation for the generation of SMM prices. To reflect the actual conditions of the spot market, SMM will make necessary revisions to its price assessment methodology. Any changes to the price assessment methodology will be published on SMM's official website at least 30 days in advance. Any questions or suggestions regarding SMM prices or the price assessment methodology may be directed to SMM client services as published on the website. This document specifies the standards and management methods for the formulation of the SMM Crude Lead Delivered Duty Paid Port Price. The purpose of establishing this standard is to create a transparent and verifiable SMM pricing mechanism and to provide market participants with an important pricing benchmark. II. Formation of the SMM Crude Lead Delivered Duty Paid Port Price 2.1. Definition The SMM Crude Lead Delivered Duty Paid Port Price is an indicative price formed and published by SMM in accordance with this methodology, which can be used by both parties to a transaction as a reference for the settlement of imported recycled crude lead spot trades. This price reflects: the duty-paid self pick-up price of imported recycled crude lead at major seaports on each business day in China's spot market; major seaports include Shanghai, Ningbo, Guangzhou, etc.; lead content ≥98%, with defined antimony and tin content (tin 0.1–0.25%; antimony 0.1–0.35%). 2.2. Introduction to Price Formation SMM collects data for evaluating imported secondary crude lead spot prices through price collection (i.e., collecting raw data information that meets SMM standards), including quotations from buyers and sellers for transactions not concluded on the previous day provided by price submitters (i.e., data providers), actual spot transaction prices, expected quotations or % change for imported secondary crude lead on the day, etc. The SMM crude lead CIF duty-paid price aims to guide the quotation range of the imported secondary crude lead market for the day. The data collection and evaluation (calculation) of the SMM crude lead CIF duty-paid price, as well as daily management, are carried out by the SMM secondary lead business team (consisting of three members: Position A, Position B, and a price manager). 2.3. Generation of Pricing Methodology SMM price collection personnel collect prices from price collection contacts at price submitters every day from 9:00 to 11:30 (each trading day, consistent with SHFE trading days) via telephone, QQ, and WeChat, gathering intended prices, transaction prices, and related data for imported secondary crude lead at China's major seaports (price data submitted after 11:30 will not be used as a basis for the day's price evaluation). All instant messaging content, email communications, and records of any face-to-face communications will be archived, and details of telephone communications will be summarized and entered into the database. All paper records must be signed by price collection personnel and retained permanently. SMM price analysts collect price data in accordance with price collection standards, and combine the preliminary price data results with the corresponding market's spot conditions, futures conditions, policies, industry status, market transactions, supply and demand relationships, inventory levels, as well as other significant political, economic, and natural factors, to ultimately derive a preliminary raw dataset. SMM price analysts must comply with relevant SMM compliance policies when reporting to their supervisors any communications from market participants that are coerced or threatened, or any induced offers attempting to influence evaluation results. 2.4 Price Publication The SMM crude lead CIF duty-paid price is published at 11:40 Beijing time on each trading day on the SMM official website in both Chinese and English. (Excluding China's statutory holidays and weekends.) The deadline for price collection is 11:30 AM, and the 10-minute period between 10:30 and 10:40 is used for data verification and evaluation to calculate the final published secondary lead spot price. SMM encourages price submitters not to wait until the final deadline to submit data, in order to ensure that SMM price analysts have sufficient time to verify the data before incorporating it into the valuation process. The release time may also be affected by various emergencies and force majeure factors, such as power outages and natural disasters. If such situations occur, SMM will make every effort to publicly inform the market of the delayed price release time as early as possible. Prices published by SMM are available to any client who has subscribed to SMM services. Prices published by SMM are copyright-protected and may not be distributed or used for commercial gain by any third party that has not entered into an explicit agreement with SMM. III. Methodology Changes All markets evolve, and SMM has a responsibility to ensure that its market-specific methodologies evolve in tandem. Therefore, based on industry feedback, SMM will periodically conduct internal reviews of the appropriateness of its methodologies and make modifications to all substantive but non-urgent potential issues. SMM will follow a formal external consultation process before publishing significant changes, providing a notice period of at least 28 days and inviting industry participants to comment, unless special circumstances, particularly force majeure (natural disasters, wars, exchange bankruptcies, etc.), necessitate a shortened notice period. SMM is committed to carefully reviewing all comments submitted regarding methodology changes, but in certain cases, it may be necessary to make changes to the methodology against the wishes of some market participants. In addition, SMM has a formal methodology consultation process. We are fully aware of the importance of price information to industry development and will therefore continue to invest resources to ensure that the guidance prices we publish maintain a high level of accuracy and timeliness. We also welcome valuable opinions and suggestions from users to work together with us in promoting the healthy and sustainable development of the lead alloy market. Best regards! SMM Industry Research - Lead & Zinc Category Apr 2026

In recent years, spot premiums in the European zinc market have shown significantly greater volatility amid fluctuations in energy costs, regional supply-demand mismatches, frequent temporary smelter curtailments, and shifts in inter-regional trade flows. As one of Europe’s most important hubs for non-ferrous metals logistics, warehousing and spot trade, Rotterdam has long played a key role in the distribution, storage and circulation of imported refined zinc in Europe......

Jakarta, April 14, 2026 – Indonesia's Ministry of Energy and Mineral Resources (ESDM) officially issued Ministerial Decree No. 144.K/MB.01/MEM.B/2026, revising the calculation formula for the Nickel Ore Benchmark Price (HPM). The regulation will officially take effect on April 15, 2026, marking a significant shift in resource valuation policy for Indonesia, the world's largest nickel producer. The new decree revised the previous Decree No. 268.K/2025, with core changes aimed at reflecting the true commercial value of nickel ore and its associated minerals: 1. Adjustment of the Correction Factor (CF): · The correction factor for 1.6% grade nickel ore was significantly raised from the original 17% to 30%. · For every 0.1% increase or decrease in nickel grade, the correction factor will be adjusted inversely by 1%. 2. Inclusion of Associated Mineral Value: · The new formula for the first time explicitly incorporated associated minerals such as cobalt (Co), iron (Fe), and chromium (Cr) into the HPM calculation. · Cobalt: Included when content >= 0.05%, with the correction factor (CF) set at 30%. · Iron: Included when content <= 35%, with the correction factor (CF) set at 30%. · Chromium: The correction factor set at 10%. 3. New Pricing Formula: HPM Nickel Ore = [(Nickel HMA * %Ni * CF) + (Cobalt HMA * %Co * CF) + (Iron HMA * %Fe * CF * 100) + (Chromium HMA * %Cr * CF * 100)] * (1-MC) (Note: MC refers to moisture content) Assumptions: · Average grade: moisture content 35-40%, cobalt content 0.07% (HPAL ore), iron content 25% (saprolite ore), chromium content 3%. Based on SMM's estimates, HPM prices have the most obvious room for upward movement. · Here, HPAL ore refers to nickel ore with a grade of 1.3% and below, while saprolite ore refers to nickel ore with a grade above 1.3%.Since HPAL ore has a higher cobalt grade and iron content generally above 35%, the HPM formula for HPAL ore here only considers nickel, cobalt, and chromium, with iron not priced in. · Since saprolite ore has a lower cobalt grade and iron content generally below 35%, the HPM formula for saprolite ore here only considers nickel, iron, and chromium, with cobalt not priced in. Note: This is only a scenario assumption based on publicly available information and does not constitute actual market action advice. Please refer to actual conditions. Driven by the dynamic adjustment mechanism of the benchmark price, the nickel ore benchmark price center shifted significantly upward, providing a higher pricing anchor for mine-side sales. Overall, the CF (adjustment coefficient) for 1.6% grade nickel ore increased from 17% to 30%, driving a significant rise in the benchmark price, reflecting a policy and market reassessment of the value of medium-to-high-grade ore. As the CF increased, the linkage between ore prices and nickel content further strengthened, and price elasticity amplified accordingly. On the other hand, under the current pricing system, by-product value has been fully incorporated into consideration. In particular, the cobalt pricing mechanism provided significant support for low-grade ore (such as limonite). Benefiting from the increase in cobalt prices and its recovery value, the economics of limonite improved notably, and its price performance showed a more prominent upward trend compared to the past, gradually changing the market's traditional perception of it as a "low-value resource." Based on SMM prices, Indonesia's local laterite nickel ore at 1.2% grade (delivered price) averaged $30.5/wmt, far below the new HPM benchmark price of $40.18/wmt. The CIF price of 1.2% grade HPAL nickel ore may subsequently rise to $48.18 (40.18+8)/wmt. Indonesia's local laterite nickel ore at 1.5% grade (delivered price) averaged $70.7/wmt, above the new HPM benchmark price of $57.13/wmt, so theoretically absolute price fluctuations would not be as drastic. Assuming the tax cost increase driven by the HPM benchmark price rise is fully passed through to downstream, the absolute price of saprolite nickel ore may rise to $72.47/wmt after the new HPM benchmark price takes effect. **MHP** According to SMM estimates, taking 1.2% grade nickel ore as an example, based on the benchmark price as of April 1, the new nickel ore HPM is expected to be raised to $40.18/wmt, compared with the previous nickel ore HPM of $16/wmt. Currently, SMM's latest Indonesia's local laterite nickel ore 1.2% (port arrival price) average price is $30.5/wmt, lower than the new HPM. Assuming the HPM benchmark price serves as the minimum price floor for mines, after factoring in freight costs, the selling price of 1.2% grade HPAL ore after April 15 would be $48.18/wmt. Based on this estimate, the cost of producing MHP from externally purchased HPAL ore (after cobalt credit) will rise to approximately $17,760/mt Ni, an increase of approximately $2,600/mt Ni. **NPI** According to SMM estimates, based on the benchmark price as of April 1, taking 1.5% grade nickel ore price as an example, the nickel ore HPM price under the old formula was $26.66/wmt, while the nickel ore HPM price calculated under the new formula is $57.13/wmt, still lower than the current 1.5% Indonesia's local port arrivals under domestic trade price of $70.7/wmt. Assuming the tax cost increase resulting from the HPM price hike is fully passed through to downstream, the absolute nickel ore price is forecast to rise to approximately $72.47/wmt after the new policy is implemented. Based on this estimate, this adjustment will push the full cost of NPI up to $15,741.51/mt Ni, an increase of $570.48/mt Ni from the current level, representing a rise of approximately 3.76%, which is expected to provide further upward support for NPI prices. **Refined Nickel** On the basis of the above-mentioned increases in MHP and high-grade nickel matte raw material costs, the cost of producing refined nickel from integrated high-grade nickel matte is estimated at approximately $21,773/mt Ni, an increase of $622/mt Ni compared with before the HPM formula adjustment; the cost of producing refined nickel from integrated MHP (after cobalt credit) is estimated at approximately $20,560/mt Ni, an increase of $2,652/mt Ni compared with before the HPM formula adjustment. In addition, based on the LME spot settlement price on April 14 and the nickel intermediate product transaction coefficients (91.5% for MHP and 92.5% for high-grade nickel matte), the spot cost of producing refined nickel from externally purchased high-grade nickel matte is $18,705/mt Ni, and the spot cost of producing refined nickel from externally purchased MHP is $19,378/mt Ni. Both costs are higher than the current LME nickel prices, indicating relatively strong cost support. In summary, Indonesia's ESDM reform of the HPM benchmark price formula represents a systematic restructuring of the pricing system, upgrading nickel ore pricing from "single nickel element pricing" to "nickel + cobalt + iron + chromium multi-element comprehensive pricing," reshaping the nickel ore cost basis from multiple dimensions. In the short term, the policy landing beyond expectations has already driven nickel prices to rise significantly, with market sentiment leaning bullish; however, medium and long-term impacts depend on cost pass-through efficiency, the pace of high inventory digestion, and downstream demand absorption capacity. Going forward, close attention is still needed on the actual implementation by Indonesian mine enterprises, smelter procurement price negotiation outcomes, and the substantive magnitude of price increases for intermediate products such as MHP and NPI. Risk warning: According to ESDM Ministerial Decree NO.144.K/MB.01/MEM.B/2026, the benchmark ore price (HPM) is the minimum selling price for metal mineral sales. If metal minerals are sold below the HPM price, the HPM must still be used as the basis for calculating tax obligations and as the benchmark price for levying production fees (royalties). Therefore, the above costs are calculated based on the assumption that the wet-process ore selling price is no lower than the new HPM benchmark price. The resulting integrated MHP (after cobalt credit) production cost of refined nickel is relatively high. However, the actual selling price of nickel ore will need to be negotiated between mines and smelters, and there is a possibility that the final transaction price may be lower than the new HPM benchmark price.

[SMM Nickel Flash] The average SMM price of 10-12% high-grade NPI fell WoW by 1 yuan/nickel unit to 1,082.5 yuan/nickel unit (ex-factory, tax included), while the average price of Indonesia's NPI FOB index fell WoW by $0.02/nickel unit to $136.58/nickel unit. The high-grade NPI market generally remained stable, and after the transaction center stabilized, the market entered a state of back-and-forth negotiations between upstream and downstream, with prices under pressure in the short term.

SMM Nickel News, April 3: Macro and market news: (1) Iran and Oman were drafting an agreement aimed at implementing "passage regulation" for vessels transiting the Strait of Hormuz, while emphasizing that vessel passage would not be restricted. (2) The US officially adjusted tariffs on steel, aluminum, and copper, and also announced a plan to impose additional tariffs on pharmaceuticals from enterprises that had not reached agreements or had not reshored to the domestic market. Spot market: On April 3, the SMM price of #1 refined nickel rose by 200 yuan/mt from the previous trading day. Spot premiums, Jinchuan #1 refined nickel averaged 3,650 yuan/mt, unchanged from the previous trading day; China mainstream electrodeposited nickel brands were at -600-400 yuan/mt. Futures market: The most-traded SHFE nickel contract (2605) moved sideways, closing at 134,260 yuan/mt as of this morning session, up 0.07%. In the short term, tighter Indonesian policies and cost support built a solid bottom for nickel prices, but high inventory and weak end-use demand capped upside room. The core trading range of the most-traded SHFE nickel contract is expected at 133,000-143,000 yuan/mt.

SMM Nickel News, April 2: Macro and market news: (1) On the evening of April 1 local time, Trump delivered a speech, claiming on his own that the military campaign against Iran had achieved a “rapid, decisive, and overwhelming victory.” The US’ core strategic objectives in the military campaign against Iran were “close to completion.” Trump also said that stronger firepower strikes against Iran would be carried out in the coming weeks. (2) US ADP employment increased by 62,000 in March, above market expectations of 40,000 and broadly flat from 63,000 in the previous month, indicating steady growth in US private-sector employment in March. Spot market: On April 2, the SMM price of #1 refined nickel fell by 1,650 yuan/mt from the previous trading day. In terms of spot premiums, Jinchuan #1 refined nickel averaged 3,650 yuan/mt, unchanged from the previous trading day; China’s mainstream electrodeposited nickel brands were at -600-400 yuan/mt. Futures market: The most-traded SHFE nickel contract (2605) fluctuated lower and closed the morning session at 133,870 yuan/mt today, down 0.87%. In the short term, tighter Indonesian policies and cost support have built a solid bottom for nickel prices, but high inventory and weak end-use demand are capping upside room. The core trading range of the most-traded SHFE nickel contract is expected to be 133,000-143,000 yuan/mt.

SMM Nickel News, April 1: Macro and market news: (1) China and Pakistan proposed a five-point initiative on restoring peace and stability in the Gulf and Middle East region: first, immediately cease hostilities; second, launch peace talks as soon as possible; third, ensure the safety of non-military targets; fourth, ensure the security of shipping lanes; fifth, ensure that the UN Charter takes precedence. (2) Trump said the US would end the war against Iran within "two to three weeks" and may reach an agreement with Iran before then. Spot market: On April 1, the SMM price of #1 refined nickel rose by 200 yuan/mt from the previous trading day. Spot premiums, Jinchuan #1 refined nickel averaged 3,650 yuan/mt, down 100 yuan/mt from the previous trading day; China mainstream electrodeposited nickel brands were at -600-400 yuan/mt. Futures market: The most-traded SHFE nickel 2605 contract moved sideways in early trading and closed the morning session at 135,500 yuan/mt, down 0.1%. Supply side, tightening nickel ore has evolved into dual cost support from "ore + taxation," providing solid support for the bottom of nickel prices, but weak end-use demand and continued inventory accumulation still capped upside room for nickel prices. Nickel prices are expected to maintain fluctuating trend in the short term, with the core trading range of the most-traded SHFE nickel contract at 133,000-143,000 yuan/mt.

SMM Nickel News, March 31: Macro and market news: (1) The State Administration for Market Regulation issued a notice on further implementing the Anti-Unfair Competition Law of the People's Republic of China. The notice mentioned comprehensively addressing "involution-style" competition. It said various anti-unfair competition measures would be used in a coordinated manner to focus on preventing and curbing "involution-style" competition in key industries and sectors such as the platform economy, PV, lithium battery, and NEV. (2) Iran's parliamentary National Security Commission passed a bill proposing to charge fees on vessels transiting the Strait of Hormuz. The plan included implementing financial arrangements and a charging system in Iranian rial, and banning US and Israeli vessels from passing through the Strait of Hormuz. Spot market: On March 31, the SMM price of #1 refined nickel fell by 750 yuan/mt from the previous trading day. In terms of spot premiums, the average price premium of Jinchuan #1 refined nickel was 3,750 yuan/mt, down 1,000 yuan/mt from the previous trading day; the spot premiums for mainstream domestic brands of electrodeposited nickel were in the range of -800-400 yuan/mt. Futures market: The most-traded SHFE nickel contract (2605) continued to decline in early trading and closed the morning session at 134,370 yuan/mt, down 1.13%. Supply side, tightening in nickel ore has evolved into dual cost support from "ore + taxes," providing solid support for the bottom of nickel prices, but weak end-use demand and continued inventory accumulation still capped upside room for nickel prices. Nickel prices are expected to maintain a fluctuating trend in the short term, with the core trading range of the most-traded SHFE nickel contract at 133,000-143,000 yuan/mt.

SMM Nickel News, March 30: Macro and Market News: (1) "No Kings" rallies broke out across the US in opposition to Trump. US voters' dissatisfaction with Trump hit a record high. (2) US President Trump told the UK's Financial Times on the 29th that indirect talks between the US and Iran through intermediary Pakistan were "going well." But when asked whether a ceasefire agreement could be reached and the Strait of Hormuz reopened in the coming days, Trump did not disclose specific details. Spot Market: On March 28, the SMM price of #1 refined nickel fell by 1,300 yuan/mt from the previous trading day. In terms of spot premiums, the average price of Jinchuan #1 refined nickel was 4,750 yuan/mt, down 150 yuan/mt from the previous trading day; China's mainstream electrodeposited nickel brands were at -600-400 yuan/mt. Futures Market: The most-traded SHFE nickel contract (2605) maintained a rangebound fluctuation and closed at 136,130 yuan/mt as of the end of this morning's session, down 0.23%. Supply side, tightening nickel ore has evolved into dual cost support from "ore + taxes," providing solid support for the bottom of nickel prices, but weak end-use demand and continued inventory accumulation still capped upside room for nickel prices. Nickel prices were expected to maintain a fluctuating trend in the short term, with the core trading range of the most-traded SHFE nickel contract at 133,000-143,000 yuan/mt.

On March 28, the SMM price of #1 refined nickel fell by 1,300 yuan/mt from the previous trading day. Spot premiums, Jinchuan #1 refined nickel averaged 4,750 yuan/mt, down 150 yuan/mt from the previous trading day; China’s mainstream brands of electrodeposited nickel were at -600-400 yuan/mt.