Next week, the Chinese market will be closed for the Dragon Boat Festival holiday. SHFE and other exchanges will not operate night sessions on Thursday evening and will be closed all day on Friday. On the macro data front, China's May total retail sales YoY, China's May industrial value-added above designated size YoY, and the US May retail sales month-on-month rate are about to be released. Additionally, a key event will be the first policy meeting of the new US Fed chair since taking office. The market expects the June interest rate to remain unchanged, with greater focus on when the US Fed will start raising rates. On the LME lead side, the Middle East conflict recently reversed again, with overseas bulls withdrawing and bears adding positions. LME lead fell below all moving averages, reaching a new low in nearly one and a half months. Meanwhile, tightness in spot cargo in markets outside China persists. LME saw a backwardation structure again, with LME Cash-3M quoted at $4.97/mt. Next week, attention will be on the impact of the US Fed meeting on the US dollar index. Lead prices are expected to continue trading in the doldrums, with LME lead trading in the range of $1,915-1,975/mt. On the SHFE lead side, next Monday is the delivery day for the SHFE lead 2606 contract. Suppliers shipping to delivery warehouses will boost expectations of rising visible inventory, especially as SHFE lead bears add positions. Open interest in the most-traded contract has reached as high as 85,000 lots, putting lead prices under pressure. Notably, in-factory inventory at primary lead enterprises has declined, and secondary lead smelters are suffering severe losses. Fundamentals provide strong support, with the spread between futures and spot prices narrowing rapidly and a premium cannot be ruled out. Downside risk to lead prices is expected to persist, but there is a chance to dip and rebound. Next week, the most-traded SHFE lead contract is expected to trade in the range of 15,850-16,300 yuan/mt. Spot price forecast: 15,900-16,150 yuan/mt. Demand side, production at lead-acid battery enterprises is relatively stable. After the lead price decline, downstream enterprises buy the dip as needed. Also, considering the potential for mid-year account closing and stocktaking in late June, some downstream players purchase in advance. Supply side, production at primary and secondary lead enterprises both increased and decreased. Supply differences are expected to be relatively small. In-factory inventories at both have fallen, reducing smelters' pressure to sell. Especially as secondary lead smelters suffer severe losses, their willingness to sell is low. Spot lead is expected to maintain small premiums (over SMM #1 lead) on shipments. If SHFE lead falls further, the possibility of spot prices exceeding futures cannot be ruled out.

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, next Monday marks the last trading day for the SHFE copper 2606 contract. According to SMM's #1 copper cathode price assessment methodology, SMM always quotes against the front-month contract. During the day, the center of copper prices moved up, and downstream procurement sentiment pulled back slightly, indicating that high prices somewhat curbed demand. Approaching delivery, suppliers showed a relatively strong willingness to deliver their open interest, keeping available cargo tight. In addition, spot inventory in the Guangdong region remained at a low level, with offers at a premium of around 200 yuan/mt, which may lend some support to premiums in the Shanghai region. Overall, premiums for Shanghai spot copper against the SHFE 2606 copper contract next Monday are expected to remain at a premium level.

This week, end-use consumption in the lead-acid battery market showed no improvement, and some enterprises even reported worse orders, making the production and sales plan for June difficult to fulfill. As it is mid-year, some enterprises implemented sales promotions for finished batteries to stimulate demand, for example, the wholesale price of the main e-bike lead-acid battery model 48V20Ah was quoted at 370 yuan per unit, and a top-tier player plans to conduct live-streaming sales promotions during the "618" event. Meanwhile, lead prices have been falling recently, and during the week, spot lead even fell below 16,000 yuan. Downstream enterprises showed moderate purchasing enthusiasm, with rigid demand shifting more to the primary lead sector, and trading activity in the spot market improved.

Domestic Selenium Market Remains Weakly Stable Amid Seasonal Lull and Increased Supply

It is learned that from June 4 to June 11, 2026, the weekly composite operating rate of lead-acid battery enterprises in five provinces tracked by SMM was 67.19%, up 1.5 percentage points WoW. In June, the off-season trend for e-bike and automobile battery markets persisted. Coupled with the semi-annual period, some large enterprises maintained stable production with slight increases to boost production and sales, though inventory pressure remained high. Following the end of holidays at lead-acid battery enterprises in Jiangxi and Jiangsu last week, these battery enterprises resumed normal production this week, which was the main factor driving the weekly operating rate rebound. In addition, lead-acid battery enterprises in Zhejiang and Jiangxi indicated that export orders for batteries improved relatively, also contributing to the production increase among lead-acid battery enterprises this week. It is also worth noting that end-use market consumption remained sluggish. Production by some enterprises served the semi-annual production and sales plan. Once this special period ends, lead-acid battery enterprises will return to the produce-based-on-sales model.

From June 3 to June 5, the Indonesia Critical Minerals 2026 was held at the Pullman Jakarta Central Park in Jakarta, Indonesia. The conference was organized by Shanghai Metals Market (SMM) and co-organized by the Indonesia Nickel Miners Association (APNI) , the Ministry of Foreign Affairs of the Republic of Indonesia , the National Economic Council of Indonesia , and MMR , with a strategic partnership established with the Jakarta Futures Exchange . The conference featured six dedicated forums: the main forum, the nickel and cobalt forum, the tin forum, the coal & energy transition forum, the aluminum forum, and the sub-forum, bringing together 3,500+ attendees from 45 countries and regions worldwide, with 120+ speakers sharing their insights on market prices, supply-demand patterns, industry policies, low-carbon development, and ESG construction, etc. Additionally, SMM has also meticulously arranged two rounds of panel discussions: Senior Executives' Roadmaps to Overcome Resource, Cost, Technology & ESG Challenges The "Green Premium" Myth vs. Reality: Who Will Pay for Decarbonization in the Critical Minerals Supply Chain? Conference Background In recent years, global nickel and cobalt raw material supply has frequently encountered various disruptions: Indonesia significantly lowered its nickel ore mining quota to 260–270 million mt, tightening nickel resource release at the source; the DRC continuously reduced cobalt ore export quotas, leading to a marked contraction in tradable cobalt raw materials worldwide. Multiple supply variables continued to roil nickel and cobalt commodity futures. Meanwhile, Indonesia is not only the core hub of the global nickel industry chain but also a key production area for global new cobalt supply at this stage. Its industrial control policies, commissioning pace of capacity, and industry chain layout changes directly shape the evolution of the global nickel-cobalt supply-demand pattern. Currently, the global nickel and cobalt industry is at a critical development stage featuring supply-demand restructuring, policy innovation, and value reassessment. To accurately forecast the nickel and cobalt market trends in 2026, deeply analyze the latest industrial control details in Indonesia, and help the upstream and downstream of the industry chain break down collaboration barriers, the Nickel and Cobalt Forum was launched. The forum brought together global mines, smelters, trading firms, downstream end-users, and investment and financing institutions to conduct in-depth discussions on key topics such as market supply and demand trends, policies and regulations, production technology iteration, and cross-border industrial cooperation, jointly exploring new growth drivers for high-quality industry development. Click to view the conference photo gallery June 4: Keynote Speeches Keynote Speech: Mining Regulatory Outlook: RKAB Quota Planning and Indonesia's Next-Phase Downstream Mineral Expansion Path Guest Speaker: Totoh Abdul Fatah, Secretary General of the Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources Totoh Abdul Fatah noted that RKAB is the key policy instrument for Indonesia to regulate mineral output, coordinate the orderly rollout of industries, and align with the nation's downstream industrialization priorities. Indonesia is endowed with exceptional mineral and coal resources, with significant reserves and capacity in several key strategic commodities including nickel, cobalt, copper, tin, bauxite, gold and silver, and iron ore. Leveraging these unique resource advantages, Indonesia holds a critical strategic position in the global mineral supply chain, and its value is especially prominent in the energy transition wave, providing strong support for the development of power batteries, renewable energy equipment, and high-end manufacturing. The next phase of downstream mineral development is not about curbing growth, but about improving development quality, clarifying development direction, strengthening regulatory management, and reinforcing the sustainability of growth. Future smelter layout must match ore supply capability, be aligned with resource conservation, and coordinate multiple factors including energy infrastructure readiness, environmental protection access standards, and domestic industry value addition. In light of these considerations, the Indonesian government is promoting an industrial logic shift from pure capacity expansion to strategic optimization of resource allocation, ensuring that mineral resources are precisely directed to industry segments that can maximize national economic benefits. Indonesia's downstream mineral industrialization has made concrete progress. Currently, 14 smelters are in operation, primarily producing products such as nickel oxide, pig iron, and copper cathode. Covering both existing operating plants and new projects under construction, the entire industry chain has attracted a total realized investment of $7.849 billion. Breakdown: nickel sector investment of $2.535 billion, aluminum sector $2.181 billion, iron ore projects $47 million, and copper sector $3.084 billion. This is continuously improving the supporting system of the domestic mineral industry chain. This progress demonstrates that Indonesia's downstream mineral policy has achieved tangible results. However, challenges remain for the industry: not only must new smelting projects be completed and commissioned on schedule, but they also require stable supporting supply to achieve efficient operations, green and low-carbon production, and deep integration into the domestic industry chain value system. Indonesia's development direction is very clear: the downstream transformation of minerals will continue to advance, and during the implementation process, policy enforcement constraints and top-level strategic guidance will be further strengthened. The RKAB management system and ore source allocation control rules are key to building a robust and more resilient industrial ecosystem. Future smelting project planning needs to coordinate four key dimensions: sustainable resource development, supply-demand market equilibrium, ESG compliance implementation, and enhancement of national value added. Indonesia has always been open to quality investment, especially quality investment, relying on foreign capital to achieve technology transfer and localization, expand local employment, and support long-term economic growth. In other words, Indonesia's industrial development not only pursues growth, but is committed to achieving high-quality growth that is compliant, sustainable, and globally competitive. Keynote Speech: Nickel at a Crossroads：A Five-Year Outlook on Global Nickel — Navigating Policy, Supply, and Demand Shifts Speaker: Thomas Feng, Head of Industry Research, Shanghai Metals Market Feng projects that the global primary nickel market will show a supply deficit in 2026, continue the oversupply trend in 2027, and shift to a tight balance in 2029. Regarding refined nickel prices, on the cost side, global sulfur supply and demand will face a persistent deficit in the next 2–3 years. In the case of short-term strait blockades, sulfur prices remain high, strengthening the cost support for the sulfur-MHP-refined nickel chain. From a macro perspective, the U.S.-Israel-Iran conflict has triggered wild swings in energy prices, pushing up inflation expectations. In the short term, global commodity prices will face considerable fluctuations. In the long term, global geopolitical uncertainty may become the new normal in the future, increasing the volatility of refined nickel prices. Nickel Ore Upstream Repricing: Indonesia's Benchmark Price Raise, Quota Tightening, and Increased Dependence on the Philippines Indonesia Nickel Ore RKAB Quotas: Tight Balance Emerges as the 2026 Main Theme According to SMM analysis, following the Indonesian Ministry of Energy and Mineral Resources' (ESDM) official denial of market rumors that RKAB production quotas would be raised across the board by 25%–30%, the government will handle supplementary quotas under strict case-by-case reviews starting from H2 2026, evaluating each miner's compliance, capacity, and resource reserves. At its core, this constitutes a routine and orderly optimisation of the existing 260–270 million wmt quota cap, paving the way for a more stable and sustainable market environment. Supply RKAB Approval Progress: As of April, Indonesia's cumulative approved RKAB quotas stand at 240 million wmt. SMM expects that, under expectations of continued nickel ore supply tightening, supplementary quotas around mid-year 2026 will be approximately 15%. Philippine Import Driver: SMM expects that this year, Indonesia's nickel ore imports from the Philippines will rise from approximately 15 million in 2025 to 22 million. Tightness in the domestic trade nickel ore supply will accelerate supplementation through imports from the Philippines. Demand Affected by the tight sulphur supply, MHP output has fallen short of earlier expectations. As a result, Indonesia's nickel ore demand for full-year 2026 is expected to be reduced to 303 million wmt. In 2026, actual nickel ore production will remain constrained by factors such as the rainy season and the pace of RKAB quota approvals, leaving overall output below theoretical supply levels. Panel Discussion: Upstream Opportunities & Challenges for Nickel Mine Owners Moderator: Enzo Brooklyn, Senior Nickel Analyst, SMM Panelists: Luca Maiotti, Policy Analyst, Organisation for Economic Co-operation and Development (OECD) Aldo Namora, President Director, PT Ceria Metalindo Prima Jerome Baudelet, CEO, Eramet Indonesia Patrick Lim, Country Head, HyperStrong Indonesia Keynote Speech: Achieving Energy Efficiency and Operational Success: The MMD Approach at Mah Moe Speaker: Fuad Budidarma Pratama, General Manager, MMD Mining Machinery Indonesia Keynote Speech: Global Nickel Market Outlook Speaker: Ricardo Ferreira, Director of Market Research and Statistics, International Nickel Study Group (INSG) Ricardo Ferreira noted that global primary nickel production is estimated to have declined by approximately 4% YoY, measured across the full chain from raw ore mining to finished primary nickel products. Most of this decrease originated from Indonesia, while expectations also pointed to a pullback in Chinese nickel output. According to the monthly bulletin released earlier, global primary nickel already edged down by about 1% in Q1, with Indonesia down roughly 3% and China down about 1%. Keynote Speech: New Refining Technologies for Laterite Nickel and Spent Batteries Speaker: Dr. Chunwei Liu, Managing Director of Resource Extraction, Botree Recycling Technologies Distribution of Laterite Nickel Ore Resources Laterite nickel ore accounts for 55% of global nickel resources and is the main source of nickel for industrial production worldwide. With the continuous development and promotion of high-nickel batteries, market demand for nickel—and consequently for laterite nickel ore processing—has grown significantly. Geographic concentration: Mainly distributed in tropical countries within 30° north and south of the equator. Three core regions: Southeast Asia: Indonesia, the Philippines (major laterite nickel ore producing areas). Americas: Cuba, Brazil. Oceania: Australia, New Caledonia. Panel Discussion: Nickel Price Volatility, Product Spreads, and Policy Shifts: What Will Define the Market in the next 5 years? Moderator: Slupek Kamila, Secretary-General, INSG Panelists: Jim Lennon, Analyst, Macquarie Septian Hario Seto, Member, National Economic Council Republic of Indonesia Denis Sharypin, Strategic Marketing Director, Norilsk Nickel Edric Koh, Head of Corporate Sales, Asia, London Metal Exchange Mark Selby, CEO & Director, Canada Nickel Company Keynote Speech: Korean Battery Supply Chain Strategy and Indonesia's Role Speaker: James (IKHWAN) Choi, Country Manager, Korea Office, SMM Korea Office Keynote Speech: Retreat or Evolve? The Counter-Attack of High-Nickel Batteries under the LFP Siege: Solid State, 4680, and the "Range Anxiety" Premium Speaker: Jared Zhu, Head of Consulting, Renewable Energy & Non-ferrous Metals, Shanghai Metals Market Jared noted that LFP batteries have steadily increased their market share in power battery and energy storage markets in recent years. With the rapid development of emerging sectors such as humanoid robots, industrial robots, and electric vertical take-off and landing vehicles (eVTOL), ternary batteries, leveraging their performance advantages, are more competitive than LFP batteries. Solid-state batteries are regarded by the industry as a must-win field for future competition, but it is worth noting that this new technology, capable of rewriting industry rules, still has a long development cycle before full commercialization. Positioning in the LFP Era LFP Accelerates Replacement of Ni-Co-Mn in Energy Storage and EVs, Leading in Scale and Growth SMM forecasts the global share of EV power battery types from 2026 to 2027, expecting LFP batteries to account for around 68% in 2026, with that ratio rising to about 70% in 2027. For ESS battery types, from 2022 to 2025, the share of LFP batteries in global ESS batteries continued to rise, and in 2026, it is expected to increase to around 99%. Keynote Speech: QMAG - Market Leader of Calcined Magnesia for Nickel/Cobalt MHP Production Speaker: Christoph Beyer, Managing Director of Queensland Magnesia (QMAG) Dr. Keynote Speech: Cobalt in Focus: Powering the Next Chapter of Critical Minerals Speaker: Dinah McLeod, Director General, Cobalt Institute June 5: Nickel and Cobalt Forum Keynote Speeches Keynote Speech: Balancing Risk and Reward: Investing in Indonesia's Nickel and Cobalt Value Chain Speaker: Izzie Huo, Senior Research Fellow, Shanghai Metals Market Panel Discussion: Too Much Nickel? Balancing Oversupply Risks with Long-Term Investment in Indonesia Moderator: Jean Tang, Commercial Director, Shanghai Metals Market Panelists: Ali Safdar, Managing Director & Partner, BCG (Boston Consulting Group) Arif Perdana Kusumah, Chairman, Forum Industri Nikel Indonesia (FINI) Ditya Maharhani Harninda, Senior Vice President Corporate Banking 2, PT Bank Negara Indonesia Tbk (Persero) Keynote Speech: Valve Solutions for Severe Service in HPAL Speaker: Changsong Deng, President of International Business Division, ANTIWEAR Keynote Speech: Breaking the Import Dependency: Economics and Feasibility of Pyrite-based Acid Production for Indonesia's HPAL Supply Chain Speaker: Bede Beresford Evans, President Director, PT Sumbawa Timur Mining Keynote Speech: Key Technology and Economic Analysis of AI Power Microgrid Solutions in Mining Speaker: Frank Qi, CEO, Ai Power (Suzhou) Technology Co., Ltd. Keynote Speech: Value of Analytical Solutions in Mining Processes Speaker: Toh Tiong Yen, Sales Manager, Malvern Panalytical Keynote Speech: New Caledonia's Nickel Landscape Speaker: Gabriel Bensimon, Special Advisor to the President of the Government on Nickel and Mining-Related Matters, The Gouvernment of New Caledonia Keynote Speech: Global Flow of Nickel from Mining to End-Use Speaker: Dr. Steukers Veronique, President, Nickel Institute Primary nickel production is now dominated by Indonesia. In 2025, Indonesia produced around 50% of the world's primary nickel, compared to just 6% a decade earlier. Primary nickel production in the rest of the world declined. In 2025, primary nickel production in the rest of the world, excluding Indonesia and China, accounted for just over 20% of the global total, down from 65% a decade earlier. Indonesia and China are the core driving forces shaping the global nickel supply chain landscape. From the perspective of nickel product circulation structure, NPI, backed by Indonesia's capacity advantage, firmly dominates the circulation mainstream; in terms of global nickel raw material supply by grade, Class 2 nickel accounts for approximately 58%, Class 1 nickel for just under 30%, and nickel chemical products for the remaining around 13%. Panel Discussion: Meet the future of ESG: Standard, Challenges and Opportunities in Mining and Processing Moderator: Katz Benjamin, Policy Analyst, OECD Panelists: Dr. Chris Schlekat, Executive Director of NIPERA, Nickel Institute Ning Wang, Manager, Sustainable Development Department, China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters Yumo Li, Head of ESG Office in Tsingshan Board, Tsingshan Holding Group Vinícius Mendes Ferreira, Executive Advisor for Nickel Downstreaming, PT Vale Indonesia Fan Li, Sustainability and ESG Services Manager, dss+ Tom Fairlie, Senior Sustainability Manager, Cobalt Institute

On June 9, a fire broke out at Greenbushes Chemical-Grade Beneficiation Plant 3 (CGP3). The fire was quickly extinguished with no casualties, CGP1 and CGP2 continued normal operations, and IGO confirmed the next day that its FY2026 concentrate guidance of 1.375 million to 1.425 million mt remained unchanged. CGP4 is planned to commence in 2027. Judging solely by the announcement, this was a well-handled operational incident. However, the location of the fire warrants closer attention: CGP3 is not existing capacity but incremental capacity being ramped up at the far left of the global cost curve – with a total investment of about AUD 880 million, designed to add approximately 500,000 mt/year of concentrate capacity, and which only achieved first feed in December 2025 and was originally expected to reach full production by mid-this year. The damage assessment is still ongoing, repair costs and timetable are yet to be quantified, and the so-called "guidance maintained" is based only on information from the initial stage of the incident. What merits tracking going forward is not the guidance itself, but whether the timing of reaching full production will be delayed. At the world's lowest-cost mine, a new production line has had a minor incident – should the market be concerned? Today, I aim to break down and clarify this mechanism by analyzing the role of Australian ore in the lithium price formation. Note: Clarification on the timeline for CGP3 reaching full production. At its FY26 Q2 results briefing in late January 2026, IGO stated that CGP3 achieved first feed in December 2025 and that ramp-up to nominal capacity would take approximately five months. Some English transcripts recorded management's remarks as "completing ramp-up before the end of the calendar year" (end of the calendar year). However, based on the timing of first feed, five months corresponds to mid-2026, i.e., before the end of the Australian financial year (FY26), which is consistent with the company's previously disclosed guidance of "reaching full production in mid-2026." The transcript likely mistook "end of the financial year" for "end of the calendar year." This article adopts the "mid-2026 full production" timeline. This timing implies that the June 9 CGP3 fire occurred a few weeks before the originally scheduled full production, and the actual impact will be confirmed in IGO's Q4 report (expected in late July). Greenbushes: A Benchmark at the Bottom of the Cost Curve Greenbushes' most fundamental advantage lies first in its ore grade. It is one of the world's largest and highest-grade hard-rock lithium mines in production, with raw ore grade roughly double the industry average. For spodumene mines, grade directly determines mining and processing efficiency. To produce one tonne of SC6 concentrates, Greenbushes needs to process significantly less raw ore than typical mines, giving it natural cost advantages in mining, beneficiation, energy consumption, and tailings management. Building on its high-grade ore, Greenbushes also benefits from economies of scale. The mine site now hosts multiple beneficiation plants with a combined nominal processing capacity of approximately 6.5 million mt/year, supporting a maximum lithium concentrate capacity of up to 1.5 million mt; once CGP3 has fully ramped up, it will add roughly 500,000 mt of additional concentrate capacity. With the mine life further extended to 2045, Greenbushes not only possesses low-cost advantages but also strong long-term supply capability. This is why Greenbushes has demonstrated significant resilience during the lithium price downturn. From 2024 to 2025, as lithium prices continued to pull back, many high-cost Australian mines and Chinese lepidolite projects faced pressure to suspend or cut production, yet Greenbushes maintained relatively sound profitability and continued to advance the CGP3 expansion. It represents not the industry's average cost, but the most competitive end of the global hard-rock lithium ore cost curve. Therefore, Greenbushes serves as a useful benchmark for observing the industry bottom. When lithium prices fall, high-cost capacity exits first, while low-cost capacity continues to produce. The closer prices move to Greenbushes' cost range, the fewer marginal units of capacity can sustain normal operations in the market, and the nearer supply exits are to completion. Greenbushes Has the Largest Production, but Limited Free-Float Volume Although Greenbushes has a very large production scale, relatively little of its concentrates can enter the spot market directly. Greenbushes is operated by Talison Lithium, whose shareholders include TLEA and Albemarle, with TLEA jointly held by Tianqi Lithium and IGO. The spodumene concentrates produced at the mine are primarily allocated under shareholder offtake arrangements, flowing to lithium chemical production lines within the shareholder systems of Tianqi, Albemarle, and others, and are not normally offered for direct sale to the market. Viewed through the framework of [Resources – Designed Capacity – Actual Production – Saleable Volume – Available Spot Volume], Greenbushes is a very typical case. Its actual production ranks among the world's largest, but since most of its concentrates are locked up within its shareholder system, the volume truly available for market-based transactions is relatively limited. This also means Greenbushes' influence on market prices is mostly indirect. On one hand, it defines the scale of global low-cost lithium resource supply, which has an important impact on the lithium chemical cost curve; on the other, its operating costs, offtake pricing, and expansion pace also serve as key references for long-term lithium ore contract negotiations and price assessments. By contrast, what really influences spot lithium ore prices in the short term are typically the marginal resources not fully locked up by shareholder offtake agreements and needing to find buyers on the market. These include some Australian mines, African lithium ore, and saleable cargo held by traders. Therefore, while the addition of approximately 500,000 mt of concentrate capacity at Greenbushes will alter medium and long-term supply-demand expectations, its short-term impact on the spot market may not be particularly pronounced. In contrast, the suspension or resumption of a marginal mine with an annual output of over 100,000 mt that primarily sells on the open market could rapidly influence spot quotes and market sentiment. It is well known that short-term prices are not entirely determined by total output; rather, they depend more on the volume of material freely available for trading in the market. For example, lithium carbonate's price elasticity hinges more on the current available volume in the market. The mine with the largest output does not necessarily hold the most direct pricing power in the spot market; what truly dictates short-term marginal prices are typically resources that are available, negotiable, and require immediate transaction. However, shareholder offtake does not mean such concentrates are completely isolated from the market. When smelters within the frameworks of shareholders like Tianqi and Albemarle reduce their operating rates, or when some smelting lines operate erratically, concentrates originally intended for internal consumption may indirectly enter the market through toll processing, resales, or inventory adjustments. These cargoes are usually not publicly tallied but affect the actual circulating volume in the lithium ore market. Their tracking requires assessment by combining shareholder smelter operating rates, concentrate inventory, toll processing arrangements, and import flows. In analyzing Australian ore supply, such shadow spot cargoes are often harder to observe than a mine's nominal production, yet can significantly influence the market during specific phases. SC6 and Lithium Chemicals: Transmission Direction Reversed Once Within a Year The price transmission relationship between Australian ore concentrates (SC6, CIF China) and China's lithium chemicals has completed a full round trip over the past year. In H1 2025, ore prices followed the downtrend. In Q1, Australian mines aggressively cut costs but did not reduce production, showing a strong willingness to sell. SC6 fell all the way to around $620/mt, and the lower concentrate prices, in turn, pressured lithium chemicals downward, forming a spiral. The market's concern at the time was: When would mines finally be willing to cut? The situation reversed starting at the end of Q3. The announcement of Yichun's plan to cancel 27 mining rights, along with the suspension at Jianxiawo, tightened expectations for domestic resource supply. Lithium chemical prices moved first, and SC6 followed with an uptrend that proved even more elastic—by December, the average price had already returned to around $1,300/mt. Formula pricing, linked to lithium chemical prices, allowed the mining side to capture the bulk of the upside gains, while the tolling margins of Chinese smelters were instead compressed. Meanwhile, the impairment and expansion adjustments at the Kwinana project reflect that lithium chemical conversion in Australia continues to face high hurdles in terms of cost control, production ramp-up, and operational stability. TLEA's Kwinana lithium hydroxide plant was fully impaired in mid-2025, with the second-phase construction halted, and IGO has clearly shifted its priority to mining. The role of Australian ore in the industry chain has been refixed as a supplier of concentrates, and the linkage between SC6 and Chinese lithium chemical prices will only tighten going forward, not decouple. The implied smelting margin—calculated by multiplying SC6 by the processing coefficient and comparing it to spot lithium chemical prices—has turned negative, meaning Chinese smelters using externally purchased ore are losing cash. Either ore prices must pull back or lithium chemical prices must rise; one of the two is inevitable. This indicator is the most powerful gauge of whether mines or lithium chemicals hold more pricing power. Australian Mine Production Resumptions: Price Breaks Through the Ceiling The key words for Australian ore in 2024-2025 were market exits, while in 2026 they have become revivals. Lithium prices have been climbing steadily since the beginning of the year, with futures prices once surpassing 200,000 yuan/mt, triggering a series of production resumptions in May and June: Project Action Timing Notes Bald Hill (MinRes) Resumed production after an 18-month shutdown Announced in May, first concentrates expected in Jul Restart cost approximately A$20 million Ngungaju Plant (PLS) Restart Planned for Jul Resuming roughly 200,000 mt/year Finniss (Core Lithium) FID approved, financing secured Targeting first ore in Q3 Financing approximately $205 million Kathleen Valley (Liontown) Evaluating expansion In progress — Mt Cattlin (Rio Tinto) Remains shut down From Mar 2025 to present Restart conditions not yet clarified Looking at these cases together, the real threshold for resuming production is more complex than simply having prices exceed cash costs. Bald Hill took only about two months from announcement to first ore because it had maintained a production-ready state throughout the shutdown, and MinRes's own mining services division could internally mobilize all operations—mining, crushing, and transport—without needing to wait for external contractors. Assets of this type are the quickest-responding supply when prices rise. Finniss, by contrast, was an entirely different situation: it first sold inventory to Glencore in exchange for liquidity, then cobbled together three financing instruments—convertible bonds, debt, and a share placement—before reaching FID. For mines with fragile balance sheets, resuming production is not an operational decision but a financing event; what low-price cycles destroy is not resources, but financing capacity. The market consequences of the resumption wave are already visible. Lithium carbonate hit a two-year high of 200,500 yuan/mt on May 13, then pulled back to the 160,000–170,000 yuan range in June, partly because the market saw resumption supply coming back. The logic is straightforward: when prices rise, idle capacity resumes production, supply expectations increase, and prices pull back. That list of idle capacity in Australia, when sorted, essentially forms the supply curve above lithium prices. The CGP3 fire and this wave of production resumptions are actually two sides of the same market: disruption to the incremental supply at the far left of the cost curve is bullish, while idle capacity at the right end accelerating its return is bearish. Looking at lithium prices this year from the resource perspective, equilibrium is being sought between these two forces. Lithium prices in 2026 are expected to fluctuate more frequently, but one-sided market moves will be shorter. After prices rise, what truly caps the height of the rally is the speed at which idle capacity re-enters the market. Projects under care and maintenance or on standby, such as Bald Hill, Finniss, and Ngungaju, essentially constitute elastic supply above lithium prices. When lithium prices return above the cash costs of these projects and stay there long enough, mines have the incentive to resume production. But production resumptions do not happen instantly. From the announcement of a restart to the rehiring of personnel, equipment maintenance, resumption of mining and processing, inventory buildup, and finally, the entry of concentrates into the market, it typically takes from two months to several quarters. This time lag is the window during which supply disruptions can drive prices higher. The suspension at Jianxiawo and the CGP3 fire at Greenbushes were able to affect market sentiment not because of a sudden global shortage of lithium resources, but because of a reduction in short-term available supply while idle capacity had yet to return. Compared to the previous cycle, it is worth noting that the window for risk premiums arising from resource-side disruptions is shortening. A growing number of mines are opting for care and maintenance rather than permanent closure; mining service companies, traders, and downstream enterprises are also participating in restart financing and offtake arrangements. As long as prices return above the break-even line, some idle capacity can resume more quickly. This means that in the future, lithium prices may still rise rapidly following supply disruptions, but the duration and height of one-sided market moves will be more easily constrained by production resumption expectations. Prices may not necessarily become more stable, but supply feedback could be faster. SMM New Energy Analyst Yang Le

Antimony prices maintained a steep downward trend this week. Entering the first half of June, overall market trading activity remained sluggish. End buyers stayed largely on the sidelines, purchasing only to meet immediate demand with a cautious stance. Nevertheless, certain enterprises faced mounting mid-year sales pressure and ramped up shipments. Recent selling prices from suppliers, particularly for antimony oxide, saw substantial price concessions. Suppliers prioritized moving inventory, which drove a rapid slump in market prices.

Leveraging the dual-carbon strategy and the development trend of circular economy, China's recycled metal industry has achieved a globally leading scale while facing numerous developmental challenges. To help enterprises seize policy and market opportunities, and address industry challenges, SMM will host the 2026 SMM Recycled Metal Industry Summit Forum & Special Session on Casting Technology in Ningbo, Zhejiang Province on July 16-17, 2026 . Shandong Luyou Renewable Resource Equipment Co., Ltd. and Shandong Huaxuan Intelligent Technology Co., Ltd. cordially invite you to jointly witness and participate in building an international platform for exchange, cooperation, resource sharing, and collaborative innovation, contributing to the construction and improvement of a global resource recycling system and the transition to a green economy. Click to register now. Booth Number: E5 Shandong Luyou Renewable Resource Equipment Co., Ltd. , established in 2008, currently has fixed assets of 680 million yuan, covers an area of 480 mu, and employs over 600 staff. Luyou Equipment Group specializes in producing bridge-cut-off aluminum alloy crushers, aluminum crushers, wheel crushers, various mixed aluminum crushers, eddy current separators, stainless steel separators, and X-ray sorting machines. The company provides on-site planning and design solutions, adhering to the philosophy of "quality builds brands, service enhances brands, brands compete in markets, and sales speak for themselves" to offer comprehensive services to the aluminum scrap processing industry. Main Products : 400-3000 medium and heavy-duty steel scrap gantry shears, 150-type wheeled scrap grabbers, automobile dismantling lines, retired refrigerator dismantling lines, mining equipment: hammer crushers, European-style jaw crushers, vertical shaft sand makers, steel scrap crushers, car shell crushers, car frame crushers, metal balers, bale breakers, waste paper balers, chippers, pig iron chip briquetters, wrought iron chip crushers, roller crushers, and large, medium, and small environmental dust collectors—over 100 varieties of steel scrap processing and decomposition equipment. Luyou people uphold the quality policy of scientific management, meticulous operation, continuous improvement, and pioneering innovation , following quality commitments, service commitments, and credibility commitments, with customer satisfaction as our goal, striving to become a professional, reliable, and guaranteed steel scrap equipment producer. Contact Information Phone: 17080000000 SMM Conference Contact Zhang Xiaoyao +86 15729506965 zhangxiaoyao@smm.cn

SMM Morning Meeting Summary: Overnight, LME copper opened at $13,424/mt, swung wildly in early trading and touched a low of $13,398/mt, then the price center fluctuated upward, and near the close it rose to a high of $13,612.5/mt before finally closing at $13,575/mt, up 0.94%. Trading volume reached 21,100 lots, and open interest stood at 265,000 lots, a decrease of 2,125 lots from the previous trading day, indicating bears reduced positions. Overnight, the most-traded SHFE copper 2607 contract opened at 103,280 yuan/mt, dipped to 103,010 yuan/mt right at the open, then fluctuated upward and touched a high of 103,850 yuan/mt near the close, finally settling at 103,540 yuan/mt, up 0.13%. Trading volume reached 30,100 lots, and open interest amounted to 152,400 lots, a decrease of 8 lots from the previous trading day, indicating bears reduced positions.