SMM, June 18: The Regulations for the Implementation of the Mineral Resources Law of the People's Republic of China, which took effect on June 15, listed 36 types of minerals, including rare earths, tungsten, lithium, cobalt, gallium, and germanium, as national-level strategic minerals, subjecting them to full-chain, high-intensity control. The prices of Pr-Nd oxide, dysprosium oxide, and terbium oxide saw their third consecutive daily increase on June 17; Orient Zirconium issued a price adjustment notice, raising the prices of its related zirconium products effective June 18, 2026; and the favor of some market funds all contributed to the opening strength of the minor metal sector. As of around 9:57 on June 18, the minor metal industry sector rose by 3.09%. In terms of individual stocks: Orient Zirconium, Shenghe Resources, and Zhongxi Nonferrous hit the daily limit; China Rare Earth, Jintian Titanium, China Northern Rare Earth, China Tungsten High-Tech, Tin Industry Co., and Yunnan Germanium led the gains. Market News Orient Zirconium raised the prices of its related zirconium products effective June 18, 2026 On June 18, Orient Zirconium issued a product price adjustment notice. The notice indicated that based on current market conditions, Orient Zirconium decided to raise the prices of its related zirconium products starting from June 18, 2026, with the price adjustments as follows: zirconium oxychloride products (including mother liquor materials) increased by 1,500 yuan/mt; zirconium dioxide products increased by 4,500 yuan/mt; fused zirconium products increased by 2,000 yuan/mt; at the same time, the prices of other zirconium series products from Orient Zirconium will be adjusted accordingly. [Aidite: The company has already laid out a powder substitute plan and fully implemented it; the new material can replace the original imported powder] On June 17, Aidite stated on an interactive platform while answering investor questions that the company had received a notice from Japan's Tosoh regarding the suspension of zirconia powder supply. To ensure the stability of its own supply, the company had already laid out a powder substitute plan and fully implemented it; the new material can replace the original imported powder, and the entire new product line has passed rigorous customer verification. Currently, several core major clients have completed the switch and signed long-term orders at the recent dealer conference. The company will actively take a series of measures to avoid any adverse impact from the Japanese powder supply disruption. In the future, the company will seize the window of opportunity for high-quality material breakthroughs and, leveraging its technical and delivery advantages, continue to expand its market share. Spot Market Zirconium According to the SMM price assessment, on June 18, the price of zirconium oxychloride (Zr(Hf)O2≥36%) was quoted at 17,500-18,000 yuan/mt, with an average of 17,750 yuan/mt, up 5.97% from the previous trading day. The zirconium industry chain had long been under pressure, with sluggish traditional demand from ceramics and high industry inventories. Zircon sand and zirconium oxide prices persistently hovered at lows, trading was sluggish, and the market was at the bottom of the cycle. Since entering Q2 this year, driven by export controls on zirconium products to Japan, price hikes by overseas zirconium ore producers, and demand expectations for solid-state batteries, zirconium raw material prices stopped falling and stabilized, inventories destocked, and the industry moved out of the bottom range, embarking on a volatile recovery trend. Upstream zircon sand imports have tightened, overseas miners continue to raise prices, and cost support has been strengthening. Dongfang Zirconium Industry completed a round of price hikes in April and raised zirconium product prices again on June 18. For the zirconium market outlook, supported by tightening raw material supply, zirconium prices will hold up well in the short term. Going forward, attention should be paid to changes in raw material supply and downstream demand. Rare Earth In the rare earth market: Rare earth oxide prices were relatively stable overall, but downstream purchasing activity has decreased as the holiday approaches. Pr-Nd oxide and dysprosium oxide ended their three-day winning streak and both pulled back slightly on June 18, while terbium oxide prices held steady on June 18 after a previous three-day rise. Expectations for production cuts in the scrap recycling sector and news-driven factors previously drove Pr-Nd prices, dysprosium oxide, and terbium oxide higher. However, after the afternoon session on June 17, shipments of Pr-Nd oxide from traders increased slightly, and the center of the actual trading range shifted lower. For medium-heavy rare earths, oxide suppliers held firm offer prices, but actual buying from metal enterprises was limited, and downstream magnetic material enterprises showed limited acceptance of high metal prices. Affected by the stalemate in market trading, rare earth prices are expected to move sideways in the short term. Tin Additionally, in the tin market: On June 18, the average price of SMM 1# tin fell 0.93% from the previous trading day. Driven by the US Fed keeping rates unchanged but signaling a hawkish bias, with half of policymakers expecting rate hikes this year, nonferrous metals fell overall and tin prices also pulled back. Currently, on the fundamental side: (1) Supply side: In June, most smelters focused on maintaining stable production. (2) Demand side: Downstream purchases were cautious, buying according to orders. Spot market: Overall trading sentiment in the spot market was light. Although tin prices have pulled back, they remain at relatively high levels and the holiday is approaching. Additionally, as the electronics industry enters its traditional off-season, downstream enterprises such as solder makers are only purchasing on a "buy on dips for essential needs" basis. Institutional Views Guojin Securities’ research report on June 14 showed: Rare Earth: Dysprosium oxide may benefit from the boost by MLCC, with a significant rebound trend from price lows. From the start of the year, the price center has continued to rise. We believe this is likely related to supply-side documents released in 2024-2025, with ongoing supply-side reform in the industry. Exports fell 1% YoY for full-year 2025, while exports from early 2026 to date have increased significantly, indicating strong restocking demand outside China. The rare earth sector will continue to see dual improvements in valuation and performance, and 2026 is also a key year for resolving industry competition among key targets. On the resource side, attention is recommended for China Rare Earth (medium-heavy rare earth leader, biggest beneficiary of supply-side reform), Zhongxi Nonferrous (undervalued, high-growth South China rare earth leader), and China Northern Rare Earth (light rare earth leader, with significant cost advantages); other related targets include Bao Gang United Steel, JL MAG Rare-Earth, etc. Tin: It believes that invisible inventory of tin ingots is gradually drying up, so tin prices are expected to strengthen under the backfill of macro liquidity or spillover from tech markets. The supply-demand pattern for tin will improve in the long term. Tungsten: This period, tungsten prices continued their rebound trend. It believes that against the backdrop of increased strategic stockpiling outside China, tungsten may have higher priority; tungsten's supply-demand fundamentals have seen strong resonance. Molybdenum: The destocking of imported ore has been significant, and domestic molybdenum prices have stabilized and rebounded. Steel procurement volume remains robust, destocking along the industry chain is progressing, and the deadlock of molybdenum prices with "volume but no price" is gradually being broken, with the upward channel becoming clearer. Molybdenum is also a military metal, with persistently low inventory, and increased defense spending outside China may further boost molybdenum prices. Huafu Securities’ research report on June 14 showed: Other Minor Metals: Industry leaders' long-term contract performance was impressive, and market sentiment in tungsten clearly stabilized. The tungsten market overall has walked out of a mild recovery, with the previous consolidation at lows being reversed somewhat. Industry leaders' long-term contract transactions were impressive, serving as a key driver for the upward movement in futures, and overall market sentiment clearly stabilized. However, the spot and scattered cargo atmosphere remained mediocre, with no widespread price-following adjustments upstream or downstream, and the rebound pace was gentle, with the market overall in a stage of steady recovery. Open Source Securities' 2026 mid-year investment strategy for the metals industry showed: Copper: Supply side, most miners outside China still face declining grades and recovery rates, and disruptive factors persist (Ivanhoe’s KK copper mine, Codelco’s El Teniente copper mine). While Chinese enterprises are increasing output, the overall increase is limited. Under an optimistic scenario, global supply growth may be below 2% in 2026-2027. Demand side, H1 electricity demand in China and the US maintained high growth rates, which may contribute marginal increments to copper demand. Open Source Securities believes that the supply-demand structure contradiction for copper will further highlight in 2026, supporting the rise in copper price center. Lithium: On the supply side of the lithium industry, capital spending cuts and the gradual formation of supply discipline, coupled with frequent disruptions, have led to a marked decline in supply elasticity compared with the past. Meanwhile, sustained strong demand from the energy storage sector is improving the structure of lithium demand, while industry inventory pressure is easing marginally. Lithium prices are expected to see a phased recovery. Enterprises with advantages in resource security, low costs and integrated layout are likely to show stronger earnings recovery than the industry average. Lithium mines and lithium chemicals companies with high resource self-sufficiency and strong cost control deserve attention. Tungsten: As an advantaged strategic metal in China, tungsten mine supply is constrained by resource depletion, environmental protection and other factors. Together with the total mining volume control implemented by the state, tungsten mine production release is limited. On the demand side, emerging sectors are boosting tungsten demand, which is expected to support tungsten prices over the long term. Recommended reading:

[SMM Zirconium Flash News] Shenghe Resources' Niyati Zirconium-Titanium Mine in Tanzania will expand production to 300,000 tons per year of heavy minerals in 2026. Its Fungoni Project has stably reached 150,000 tons per year, the construction of the Tajiri Concentrator has accelerated, and it is planned to be put into operation within the year, with overseas zirconium-titanium production capacity continuing to be released.

SMM April 29: Driven by positive news including the slight edge up in Pr-Nd oxide spot prices on April 29, upbeat Q1 results from multiple rare earth enterprises such as China Northern Rare Earth, China Southern Rare Earth Group, and China Rare Earth, and favour from some market funds, the rare earth permanent magnets concept saw a notable rally on April 29. As of the close on April 29, the rare earth permanent magnets concept rose 4.41%. In terms of individual stocks, China Northern Rare Earth, Huahong Technology, China Rare Earth, Shenghe Resources, and Yahua Group hit the daily limit, Ximag Technology surged over 16%, and Sinomine Resource Group, China Southern Rare Earth Group, Xiamen Tungsten, and JL MAG Rare-Earth were among the top gainers. News [31 World Firsts: China's Mineral Resource Inventory Released] On April 29, the Ministry of Natural Resources released China's latest mineral resource inventory. China ranks first in the world in reserves of 14 minerals including rare earth , tungsten, tin, molybdenum, antimony, gallium, germanium, indium, fluorite, and graphite. In 2025, China ranked first globally in production of 17 minerals including coal, vanadium, titanium, zinc, rare earth , tungsten, tin, molybdenum, antimony, gallium, indium, gold, and tellurium. Currently, China's mineral production and smelting and processing scale ranks first globally, with the national mining output value reaching approximately 32.7 trillion yuan in 2025, accounting for over 23% of GDP. The significant growth in resource reserves has laid a solid foundation for resource self-sufficiency and controllability. [Ministry of Natural Resources: Investment in Mineral Exploration to Continue Increasing during the 15th Five-Year Plan Period] On April 29, Xiong Zili, Director of the Geological Exploration Management Division of the Ministry of Natural Resources, stated that during the 15th Five-Year Plan period, the state will continue to thoroughly implement a new round of strategic actions for mineral exploration breakthroughs. The Ministry of Natural Resources is expected to further improve the coordinated system for exploration, production, supply, reserves, and sales of strategic mineral resources, and strengthen security risk monitoring and early warning for strategic mineral resources. In terms of key priorities, efforts will focus on scarce strategic minerals such as copper, iron, lithium, cobalt, and nickel, while consolidating the resource position of advantageous minerals such as rare earth , tungsten, and tin. In terms of spatial layout, land-sea coordination will be strengthened, with active expansion of survey, exploration, and development space, and intensified basic geological survey efforts. The goal is to identify a number of mineral deposits ready for development by 2030 and form new capacity as soon as possible. [Inner Mongolia: Aiming to Cultivate Three Trillion-Yuan Industrial Clusters by the End of the 15th Five-Year Plan] On April 21, the Information Office of the Inner Mongolia Autonomous Region People's Government held a special press conference themed "Launching the 15th Five-Year Plan and Striving to Write a New Chapter of Chinese-Style Modernization in Inner Mongolia on the New Journey," introducing and interpreting the relevant contents of the Outline of the 15th Five-Year Plan for National Economic and Social Development of the Inner Mongolia Autonomous Region. Bao Gang, Deputy Secretary of the CPC Inner Mongolia Autonomous Region Committee and Chairman of the Autonomous Region People's Government, stated that Inner Mongolia strives to cultivate and form three trillion-yuan-level industrial clusters in new materials, new-type chemicals, and digital industries, as well as rare earth, non-ferrous metals, PV, and other nine 100-billion-yuan-level industry chains by the end of the "15th Five-Year Plan" period. [China Northern Rare Earth: Q1 Net Profit 918 Million Yuan, up 113.12% YoY] China Northern Rare Earth announced that its Q1 2026 revenue was 11.859 billion yuan, up 27.69% YoY; net profit was 918 million yuan, up 113.12% YoY. [China Rare Earth & Vanadium: Q1 Net Profit 171 Million Yuan, up 261.55% YoY] China Rare Earth & Vanadium announced that its Q1 2026 operating revenue was 1.535 billion yuan, up 1.90% YoY. Net profit was 171 million yuan, up 261.55% YoY. During the reporting period, the company strengthened market analysis, further coordinated rare earth business procurement and sales synergies, and steadily improved rare earth product performance, achieving expected profits. Meanwhile, it continued to strengthen the governance of loss-making enterprises, with loss-making enterprises achieving YoY loss reduction. The company's associated enterprise Dabaoshan Company maintained stable and high production, with copper, sulfur, and tungsten products achieving YoY increases in both production and sales volumes and prices. Enterprise profitability increased, and the investment income recognized by the company under the equity method also increased. [China Rare Earth: 2025 Net Profit 173 Million Yuan, Turning from Loss to Profit YoY] China Rare Earth released its 2025 annual report, achieving operating revenue of 3.182 billion yuan, up 5.11% YoY; net profit attributable to shareholders of the publicly listed firm was 173 million yuan, turning from a net loss of 287 million yuan in 2024 to profitability. The company proposed to distribute a cash dividend of 0.29 yuan per 10 shares to all shareholders, with no bonus shares and no capital reserve conversion to share capital. The company's Q4 net profit was -20 million, and Q3 net profit was 30 million. Based on this calculation, Q4 net profit turned from profit to loss QoQ. The analyst consensus forecast for Q4 net profit was 169 million, while the calculated Q4 net profit was -20 million, with performance falling below expectations. [JL MAG Rare-Earth: Q1 Net Profit 193 Million Yuan, up 20.09% YoY] JL MAG Rare-Earth announced that its Q1 2026 operating revenue was 2.036 billion yuan, up 16.05% YoY. Net profit attributable to shareholders of the publicly listed firm was 193 million yuan, up 20.09% YoY. Basic earnings per share were 0.14 yuan/share, up 16.67% YoY. Many enterprises reported positive Q1 results, which was closely linked to the notable rise in Pr-Nd oxide prices in Q1. A review of SMM's Q1 Pr-Nd oxide price trend shows that the average price of Pr-Nd oxide on March 31 was 721,500 yuan/mt, an increase of 115,000 yuan/mt compared with its average price of 606,500 yuan/mt on December 31, 2025, representing a Q1 increase of 18.96%. The average price of Pr-Nd oxide in Q1 this year was 745,955.36 yuan/mt, compared with its Q1 2025 average of 429,605.26 yuan/mt, up 316,350.1 yuan/mt YoY, a YoY increase of 73.64%. Pr-Nd Oxide Price Rose Nearly 1% on April 29 Spot market. On April 29, Pr-Nd oxide was quoted at 770,000-775,000 yuan/mt, with an average price of 772,500 yuan/mt, up 0.98% from the previous trading day. As the holiday approached combined with news-driven factors, wait-and-see sentiment was strong in the Pr-Nd oxide market. Upstream suppliers maintained firm offers, but downstream metal plants had limited acceptance of high-priced supplies, and market trading was sluggish. Absent major news, rare earths are expected to move sideways in the short term. Institutional Views Huayuan Securities stated that Pr-Nd oxide prices moved sideways. Over the past two weeks, Pr-Nd oxide rose 2.44% to 776,000 yuan/mt, dysprosium oxide rose 0.36% to 1.375 million yuan/mt, and terbium oxide rose 0.41% to 6.11 million yuan/mt. Supply side, policy and supply side tightness provided support, with spot supply of Pr-Nd oxide remaining tight and upstream suppliers showing low willingness to sell at low prices. Demand side, downstream magnetic material enterprises had weak orders and low purchase willingness, with overall trading sluggish. The Q2 rare earth concentrates transaction price between China Northern Rare Earth and Bao Gang United Steel rose 44.61% QoQ, supporting the upward shift of the rare earth price center. Recommended stocks: Rising Nonferrous Metals, China Rare Earth, China Northern Rare Earth, JL MAG Rare-Earth, Ningbo Yunsheng, Zhenghai Magnetic Material, etc. A CITIC Securities research report noted that China's strengthened rare earth export controls have led to shortages and significant price increases for some rare earth oxides outside China, and since advanced ceramics production relies on rare earth oxides, Japanese and American producers that previously dominated the high-end ceramics market face risks of raw material price hikes and even supply disruptions. This ongoing situation is expected to accelerate Chinese high-end ceramics producers' efforts to go global and capture market share, ushering in a historic opportunity. Investors are advised to watch other high-end ceramics producers with export capabilities. Xiangcai Securities noted that rare earth supply is tightening at an accelerating pace — separation enterprises are successively implementing production cuts, scrap enterprises face output fluctuations due to environmental protection inspections, and expectations for declining actual Pr-Nd supply are clear. Meanwhile, downstream magnetic material enterprises maintain stable long-term contract orders with inventory at low levels, and willingness to lock in orders and replenish as needed has strengthened, with notable short-term demand release. Combined with the reinforced strategic value positioning of the industry and liquidity easing support, the sector's price resilience is prominent, and rare earth prices are expected to continue their rising trend going forward. Bank of America strategist Michael Hartnett stated that investors should pile into commodity markets in the coming years, as this asset class will benefit from global geopolitical and macro-economic turmoil. Middle East wars and the AI race have heightened focus on supply chains, with governments working to limit the impact of surging energy and other natural resource prices on industries and consumers, while seeking to secure supplies of critical minerals such as rare earths vital to manufacturing and technology. For the remainder of this decade, as investors seek to hedge against risk, inflation, and a weakening US dollar, commodities will replace equities as the big winner of the "buy anything but bonds" trade. Fiscal overextension means "a bear market rally in government bonds is more likely than a bull market" in the years ahead. Recommended reading:

Shenghe Resources Holding Co., Ltd. (600392.SH) disclosed its 2025 annual performance forecast, expecting net profit attributable to owners of the parent company to be 790 million–910 million yuan for the full year of 2025, an increase of 582.8035 million–702.8035 million yuan compared with the same period last year, up 281.28%–339.20% YoY.

Hainan Chensheng Rare Earth Metals Co., Ltd. was established, with Li Yamin as its legal representative and a registered capital of 20 million yuan. Its business scope includes the smelting of rare and rare earth metals; manufacturing of non-ferrous metal alloys; manufacturing of metal materials; processing of non-ferrous metal rolling; R&D of new material technologies, among others. According to Qichacha's equity structure analysis, the company is indirectly wholly owned by Shenghe Resources (600392).

Shenghe Resources (600392.SH) stated on the investor interaction platform that the Ngualla rare earth ore project in Tanzania, operated by its controlling subsidiary Peak Resources, has proven rare earth reserves of 18.5 million mt with an average grade of 4.8%, equivalent to 887,000 mt of REO. The company's rare earth smelting and separation capacity is subject to the approval and announcement by the competent industry authority, and its total rare earth metal capacity is approximately 34,000 mt.

Shenghe Resources (600392.SH) disclosed on the investor interaction platform that its majority-owned subsidiary Peak's Ngualla rare earth mine project in Tanzania has proven rare earth reserves of 18.5 million mt, with an average grade of 4.8%, translating to an REO content of 887,000 mt.

Recently, Trump's attempts to acquire Greenland have grown increasingly assertive. From his initial public statement on January 7, 2025, to a year-long posture of firmness, followed by last week’s tariff hike on Europe after the setback in purchasing the island, the situation escalated into a military standoff between the US and Denmark this week, reaching a peak in tension. Although we have no intention of delving into the political or military aspects of the incident and hope that politics remains merely politics, history shows that political maneuvering is often underpinned by the resources contained within the land. In today’s world, rare earth resources have become a key strategic asset that the US seeks to control. In today’s article, we examine the resource plunder behind the island purchase controversy.

On January 18, 2026, at 15:03, a significant explosion occurred at the rare earth steel plate plant of Bao Gang United Steel. As a key enterprise in China’s rare earth industry, the incident sparked global concerns about rare earth supply and raised expectations of a new round of price increases. However, a comprehensive analysis of the accident’s nature, industry chain structure, and market mechanisms indicates that the impact on rare earth supply is limited and unlikely to substantially affect price trends.

On October 15, Shenghe Resources (600392) issued an earnings forecast, projecting that its net profit attributable to shareholders of the publicly listed firm for the first three quarters of 2025 would range between 740 million yuan and 820 million yuan, up 696.82%–782.96% YoY. During the reporting period, influenced by factors such as changes in the supply-demand pattern of the market, the overall market demand for major rare earth products improved, and product prices rose YoY.