On July 3, JL MAG Rare-Earth's share price rose, closing 3.79% higher at 34.25 yuan per share. On the news front, JL MAG's H1 performance forecast released on July 1 showed: net profit attributable to parent for H1 2026 is expected to be 400 million to 460 million yuan, up 31.17% to 50.84% YoY. Regarding the reasons for performance changes, JL MAG stated in an announcement: 1. In H1 2026, the management adhered to the annual operating policy of "adhering to compliance and regulations, being customer-oriented, focusing on the magnetic materials main business, constructing 20,000 mt of new capacity on schedule, actively deploying embodied robot motor rotors, and reaching new heights." Through measures including technological innovation, organizational optimization, digitalization, and lean management, the company ensured full contract fulfillment and delivery to customers while achieving steady business growth. The company continued to strengthen its leading position in new energy and environmental protection sectors and actively explored emerging markets, with revenue expected to increase by about 30% YoY. Specifically, revenue from the NEV and auto parts sector rose about 30% YoY; in the robot and industrial servo motor sector, revenue rose about 90% YoY, with small-batch deliveries of embodied robot motor rotors already underway. 2. During the reporting period, non-recurring gains and losses are expected to impact net profit by approximately 32.00 million yuan, compared to 70.9405 million yuan (after tax) in the same period last year. 3. In this reporting period, due to A-share and H-share equity incentives as well as H-share convertible bond issuance, total related share-based payment expenses and financial expenses amounted to about 121 million yuan. There were no such expenses in the same period last year. A recent JL MAG announcement shows: to implement the company's development strategy and strengthen comprehensive competitiveness, it plans to acquire a 9.24% equity stake in Baotou Rare Earth Products Exchange Co., Ltd. held by China Northern Rare Earth, through public listing and transfer on the Inner Mongolia Property Rights Exchange Center . According to the valuation report issued by Northern Yashi Asset Evaluation Co., Ltd., as of the valuation date December 31, 2025, the total equity value of the exchange under the market approach was 239.00 million yuan, representing an appreciation of 27.8551 million yuan, or 13.19%, over the net asset book value of 211.1449 million yuan. The expected transaction price for the subject equity is 22.0836 million yuan. Under the Shenzhen Stock Exchange ChiNext Listing Rules and the company's articles of association, this external investment falls within the CEO's approval authority. This investment does not constitute a related party transaction, nor does it constitute a material asset restructuring as defined in the *Administrative Measures for the Material Asset Restructuring of Publicly Listed Firms*. Regarding the company's main business and product applications, JL MAG Rare-Earth introduced in its 2025 annual report: The company is a high-tech enterprise integrating R&D, production, and sales of high-performance NdFeB permanent magnet materials, magnetic assemblies, embodied robot motor rotors, and comprehensive utilization of rare earth recycling. It is a leading supplier of rare earth permanent magnet materials in the new energy and environmental protection sectors. The company’s products are widely used in NEVs and auto parts, energy-saving variable-frequency air conditioners, wind power generation, robotics and industrial servo motors, 3C, low-altitude aircraft, energy-saving elevators, rail transit, and other fields, and it has established long-term and stable cooperative relationships with industry leaders both in and outside China in these sectors. The company actively positions itself in the robotics field. On one hand, it collaborates with internationally renowned technology companies to conduct R&D and capacity building for embodied robot motor rotors, with small-batch product deliveries already made. On the other hand, through direct investment or participation in industry funds, it strategically lays out key links in the relevant industry chain to accelerate industrial synergy and commercialization. Regarding the operating plan for 2026, JL MAG Rare-Earth introduced in its 2025 annual report: The company's operating policy for 2026: "Adhere to legal compliance, adhere to client orientation, focus on the magnetic material main business, build 20,000 mt of new capacity on schedule, actively position embodied robot motor rotors, and scale new peaks." Based on this operating policy and under the premise of legal compliance, the company will focus on advancing the following tasks: 1. Orderly release of capacity under construction. In 2026, some of the company's projects under construction will gradually release capacity. The specific release progress will consider factors such as equipment commissioning and market demand, advancing the commissioning and ramp-up of new capacity in an orderly manner. 2. Continuous improvement of R&D capabilities. 3. Continuous optimization of the product mix. The company will continue to enrich its product matrix for different application scenarios based on client needs, enhancing product structure resilience and client stickiness. Meanwhile, it will steadily advance the layout of projects such as magnetic assemblies and embodied robot motor rotors, equip dedicated production lines and professional teams, and drive the upgrade of small-batch pilot lines to large-scale, standardized manufacturing and quality systems. 4. Continuous improvement of operational capabilities. 5. Strengthening capital expenditure efficiency. 6. Improving incentive mechanisms and shareholder returns. 7. Advancing the construction of the ESG system. Regarding potential risks the company may face, when introducing the risk of rare earth raw material price fluctuations, JL MAG Rare-Earth stated: Rare earth metals are the main raw materials for producing NdFeB magnets. China is an important global supply base for rare earth raw materials, and wild swings in rare earth raw material prices will adversely affect the company's production and sales in the short term. Mitigation measures: The company has built production plants in Ganzhou, Jiangxi, the main production area for heavy rare earth, and in Baotou, Inner Mongolia, the main production area for light rare earth. The company has established long-term cooperative relationships with major rare earth raw material suppliers, including China Northern Rare Earth Group and China Rare Earth Group. Meanwhile, through measures such as procuring rare earth raw material in advance based on orders on hand, establishing price adjustment mechanisms with key clients, optimizing formulations, and improving processes, the company strives to reduce the adverse impact of rare earth raw material price fluctuations on its operating performance. A review of Pr-Nd alloy’s price performance in H1 this year shows : The average price of Pr-Nd alloy on June 30 was 905,000 yuan/mt. Compared with its average price of 735,000 yuan/mt on December 31, 2025, the increase in H1 this year was 23.13%. The annual daily average price of Pr-Nd alloy in H1 this year was 904,650.86 yuan/mt. Compared with its annual daily average price of 529,559.83 yuan/mt in H1 2025, the semiannual daily average price rose by 375,091.03 yuan/mt, up 70.83% YoY. According to SMM quotations: On July 3, the Pr-Nd alloy price was 920,000-930,000 yuan/mt, with an average of 925,000 yuan/mt, up 1.09% from the previous trading day. Currently, rare earth market prices overall are showing a broad upward trend. Driven by a marked increase in market trading activity on July 2, low-priced supply of Pr-Nd oxide tightened, and suppliers of oxides raised their quotations one after another. However, overall inquiry activity in the market declined somewhat compared with yesterday, and actual transactions were not ideal. In the metal market, supported by oxide costs, prices also rose. However, downstream magnetic material enterprises made fewer inquiries, and metal enterprises were not very proactive in offering quotations, resulting in a generally sluggish trading atmosphere and relatively strong wait-and-see sentiment. In the short term, affected by the tightening of low-priced supply in the market, Pr-Nd product prices are expected to drift higher amid consolidation. Recommended reading:

[SMM Magnesium Express]Recently, Borlex Intelligent held an opening ceremony for its exhibition center and a magnesium alloy forming technology tasting session in Taizhou, Zhejiang, with a focus on semi-solid injection molding technology. This process involves heating magnesium alloy particles to a semi-solid state before directly injecting and molding them, eliminating oxidation and porosity defects at the source and significantly improving product yield to over 95%. The company has previously launched the world-leading 4,000-ton ultra-large magnesium alloy semi-solid injection molding equipment and led the development of relevant industry standards. As semi-solid molding technology continues to gain traction, the application penetration of magnesium alloy in automotive lightweighting, aerospace, and 3C electronics sectors is expected to further increase.

Since the start of the year, growth in the European solar market has slowed markedly. SMM expects total new solar installations in the European market to fall to around 68.5GW in 2026, a year on year decline of about 2 percent. Alongside softening demand, multiple EU level supply chain restriction policies continue to advance, including the Net Zero Industry Act (NZIA), the Industrial Accelerator Act (IAA), and restrictive measures targeting inverters from so called high risk countries.

Grain-Oriented Silicon Steel Price Dynamics Shanghai B23R085 grade: 12,200-12,200 yuan/mt Wuhan 23RK085 grade: 11,700-11,700 yuan/mt Spot prices for cold-rolled grain-oriented silicon steel edged higher this week, with moderate trading activity in the market. Following the full implementation of earlier price hike policies by steel mills, the market digestion pace remained smooth. Traders held a strong sentiment to hold prices firm, pushing the center of spot quotations slightly higher. Demand side, just-in-time procurement by transformer and power equipment enterprises remained normalized. While end-users restocked in batches as needed, some enterprises locked in forward raw materials in advance, releasing a small amount of restocking demand, providing sufficient just-in-time demand support. Supply side, production pace at various steel mills was stable, with mainstream specification resources being released normally. Overall supply was ample, with no significant pressure from either inventory buildup or rapid destocking. Looking ahead, mainstream steel mills still show willingness to hold prices firm. Additionally, with power grid investment under the "15th Five-Year Plan" ramping up, orders from UHV and data center substation projects continue to be released, and medium and long-term downstream demand expectations continue to improve. Overall, spot prices lack downward momentum in the near term, supported by both raw material costs and terminal orders. Next week, the spot market for cold-rolled grain-oriented silicon steel is expected to maintain a generally stable with slight rise trend. Data Source Statement: Except for publicly available information, all other data is processed by SMM based on public information, market communication, and SMM's internal database models, for reference only, and does not constitute decision-making advice. Note: This article is original content belonging to this official account. For reprinting, whitelisting, cooperation, and other requests, please contact us. Without permission, the above content may not be reprinted, modified, used, sold, transferred, displayed, translated, compiled, disseminated, or disclosed to third parties or licensed for use by third parties in any form. Otherwise, once discovered, Shanghai Metals Market will pursue legal liability for infringement, including but not limited to requiring the assumption of contractual breach liability, return of unjust enrichment, and compensation for direct and indirect economic losses.

[Expectations for US Fed Interest Rate Hikes Delayed, Short-Term Weakness in Aluminum Prices Hard to Break] In China, the proportion of liquid aluminum continued to rise, and warehouse withdrawals of aluminum ingots hit a four-year high in the past week. The further acceleration of the destocking pace has been the biggest highlight recently, but the absolute inventory level remains in a high range. Recently, with the continued narrowing of the geopolitical risk premium coupled with expectations for new project startups outside China, macro headwinds still dominate. LME aluminum is under significant pressure in the short term, and domestic aluminum prices are expected to follow LME aluminum and remain in the doldrums.

[SMM Tin Morning Brief: 400,000 Curse Hard to Break, Wait-and-See Sentiment Heavy in Tin Market Pre-Holiday]

★Macro★ 01 ★★ [State-owned Major Bank's 5-Year Personal Certificate of Deposit 'Reappears' with Annualized Interest Rate of 1.6%] Although over the past two years, mainstream major state-owned banks and joint-stock banks ceased issuing certificates of deposit with terms over 3 years. But just as H2 began, a state-owned major bank reintroduced them. On July 1, Bank of China announced on its official website that it would issue the first tranche of personal certificates of deposit for 2026, offering seven terms: 1-month, 3-month, 6-month, 1-year, 2-year, 3-year, and 5-year. As long-term certificates of deposit issued by nationwide commercial banks have largely disappeared from the market, the issuance by Bank of China this time means that 5-year certificate of deposit products from state-owned major banks 'reappear.' 02 ★★ [Central Bank: Net Injection of 200 Billion Yuan via Medium-Term Lending Facility (MLF) in June] The People's Bank of China (PBOC) announced on its official website today the liquidity injection through various central bank tools for June 2026. Data showed that in June, net injection via MLF was 200 billion yuan, net injection via standing lending facility (SLF) was 0 yuan, and net injection via other structural monetary policy tools was -137.2 billion yuan. Meanwhile, in open market operations, in June, net injection via government bond trading in the open market was 10 billion yuan, net injection via 7-day reverse repo was 582.6 billion yuan, net injection via central treasury cash management was 0 yuan, and net injection via reverse repos of other tenors was 300 billion yuan. ★Industry and Downstream★ 01 ★★ [NDRC's Liu Gang Leads Team to China Iron and Steel Association for Work Survey] To gain an in-depth understanding of the steel industry's development, on June 29, Liu Gang, Deputy Director of the NDRC Price Monitoring Center, led a team to CISA to conduct a work survey, and held discussions with Diao Li, Deputy Secretary General and Director of the Information and Statistics Department of CISA, as well as Li Xiaochuan and Li Baojun, Deputy Directors of the Information and Statistics Department. The two sides, considering the new characteristics of steel industry development at this stage, conducted in-depth exchanges on aspects such as price trends across the industry chain's upstream and downstream, compilation of price indices, and optimization of monitoring indicators. 02 ★★ [2025 Annual Dual-Credit Calculation Results for Chinese Passenger Vehicle Enterprises Released] Four departments, including the Ministry of Industry and Information Technology, the Ministry of Commerce, the General Administration of Customs, and the State Administration for Market Regulation, recently jointly announced the 2025 average fuel consumption and NEV credit status of Chinese passenger vehicle enterprises. In 2025, a total of 108 passenger vehicle enterprises in China produced/imported 24.629 million passenger vehicles (including passenger NEVs, excluding export passenger vehicles), with an actual average fuel consumption under WLTC conditions of 3.38 liters per 100 kilometers, average carbon dioxide emissions of 80.22 grams per kilometer, positive fuel consumption credits of 53.553 million points, negative fuel consumption credits of 9.412 million points, positive NEV credits of 21.94 million points, and negative NEV credits of 1.599 million points. 03 ★★ [Changsha One Commercial-Residential Plot Sold at Reserve Price of 165 Million Yuan] On July 2, Changsha auctioned one commercial-residential plot in Furong District, with a planned GFA of 28,109.20 sq m (commercial-residential ratio of 1:9), a plot ratio of 5, a starting price of 165 million yuan, and a starting floor price of 5,884 yuan per sq m. Finally, the local private enterprise Hunan Dayou Real Estate Development Co., Ltd. won the plot at the reserve price of 165 million yuan. 04 ★★ [Nanjing One Residential Plot Sold at Reserve Price of 570 Million Yuan] On July 2, Nanjing auctioned one residential plot in the Qilin Area of Jiangning District, with a planned GFA of 56,779 sq m, a plot ratio of 2.4, a starting price of 570 million yuan, and a starting floor price of 10,041 yuan per sq m. Finally, Nanjing Science and Technology Innovation Investment Co., Ltd. won the plot at the reserve price of 570 million yuan. 05 ★★ [South Korea Imposes Anti-Dumping Duties on Carbon Steel and Alloy Steel HRC Involving China] According to China Trade Remedies Information, on June 23, South Korea's Ministry of Economy and Finance issued Order No. 35, officially imposing anti-dumping duties on carbon steel and alloy steel HRC originating from China and Japan, with the duty rate for Chinese products ranging from 28.16% to 33.10%; meanwhile, it approved the price undertakings proposed by three Japanese enterprises and six Chinese enterprises, and will not impose anti-dumping duties on enterprises that comply with the price undertakings. The announcement took effect on the date of its issuance. ★ Other Hot Topics ★ ⭕ [China's State Flood Control and Drought Relief Headquarters Launches Level-IV Emergency Response for Flood and Typhoon Prevention in Hainan, Guangxi, and Guangdong] According to meteorological forecasts, the tropical depression over the South China Sea is expected to develop into a typhoon on July 2, make landfall on the eastern coast of Hainan Island on the afternoon or evening of July 3, and then make a second landfall on the coast of Guangxi or northern Vietnam on the afternoon or evening of July 4. As a result, it is expected that from July 3 to 5, parts of Hainan Island, Guangdong, and Guangxi will experience heavy to torrential rain, with localized areas seeing extremely heavy downpours. In accordance with the relevant provisions of the National Flood Control and Drought Relief Emergency Plan, the State Flood Control and Drought Relief Headquarters decided to launch a Level-IV emergency response for flood and typhoon prevention in Hainan, Guangxi, and Guangdong at 12:00 on July 2, and dispatched a working group to Hainan for frontline guidance and assistance. ⭕ [US Treasuries Rise as Weak Employment Report Dampens Rate Hike Expectations] US Treasuries rose after a weaker-than-expected US employment report prompted traders to scale back expectations of interest rate hikes by the US Fed in the coming months. The two-year US Treasury yield, which is most sensitive to monetary policy changes, fell 6 basis points to 4.11%, while the 10-year yield fell 2 basis points to 4.46%. Interest rate swaps showed that traders expected the probability of the US Fed raising interest rates at its meeting later this month to be around 20%, down from 33% before the data release. The market was pricing in fewer than two 25-basis-point rate hikes by March 2027. ⭕ [US June Nonfarm Payrolls Increased by 57,000, Far Below Market Expectations] US nonfarm payrolls increased by 57,000 in June (estimate: 113,000; prior: 172,000). Private payrolls rose by 49,000 (prior: 97,000; estimate: 107,000). Manufacturing payrolls increased by 3,000 (prior: a decrease of 2,000), matching expectations; the forecast range of 15 surveyed economists was a decline of 1,000 to an increase of 10,000. ⭕ [Saudi Arabia's Crude Oil Exports Approach Pre-War Levels] Saudi Arabia's crude oil exports are near pre-war levels; as of Wednesday, the kingdom exported 6.3 million barrels per day over a six-day period. *This report is an original work and/or compilation work exclusively created by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys the copyright, protected by the Copyright Law of the People's Republic of China and other applicable laws, regulations, and international treaties. Without written permission, no entity may reproduce, modify, sell, transfer, display, translate, compile, disseminate, or otherwise disclose the above content to any third party or license any third party to use it. Otherwise, once discovered, SMM will pursue legal action for infringement, including but not limited to claims for contractual breach liability, restitution of unjust enrichment, and compensation for direct and indirect economic losses. 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Otherwise, upon discovery, SMM will take legal action to pursue infringement liability, including but not limited to demanding assumption of contractual breach liability, return of unjust enrichment, and compensation for direct and indirect economic losses. The views in this report are based on information gathered from the market and a comprehensive assessment by SMM's research team. The information provided in this report is for reference only, and risks are assumed by the user. This report does not constitute direct investment research advice. Clients should make decisions prudently and not replace their own independent judgment with this report. Any decisions made by clients are unrelated to SMM. Furthermore, any losses and liabilities arising from unauthorized and illegal use of the views in this report are unrelated to SMM. SMM reserves the right to modify and the final interpretation of the terms of this statement. ​

[SMM Aluminum Weekly Review: Macro Headwinds Remain Dominant; Short-term Aluminum Prices Need More Support]

SMM July 2 News: Today the SHFE aluminum 2608 contract opened at 22,450 yuan/mt, reached a high of 22,595 yuan/mt, a low of 22,375 yuan/mt, and closed at 22,400 yuan/mt, down 85 yuan/mt from the previous trading day, a decline of 0.38%. Trading volume was 201,300 lots, open interest 280,800 lots, with a daily position change of -6,149 lots. Price remained well below MA5 (22,595), MA10 (23,146.5), MA30 (23,940.83), and MA60 (24,381.92), and the moving average system maintained a standard bearish alignment, with no reversal in the downtrend. On the MACD indicator, DIFF (-504.66) and DEA (-357.65) continued to diverge downward, and the histogram expanded to -294.03, signaling intensifying bearish momentum. Volume of 201,300 lots was below MA5 volume (279,600 lots), marking three consecutive days of contraction, with market trading becoming sluggish. The daily position change of -6,149 lots indicated continued fund outflows. SMM Commentary: Indirect technical talks between the US and Iran made progress, with discussions centering on fund repatriation and strait security. Consultations on the nuclear issue are about to begin. The geopolitical risk premium continued to narrow, while disputes over management rights of the Strait of Hormuz persisted, leaving uncertainty over the resumption of navigation through the strait. The Fed’s hawkish pivot boosted the US dollar index, pressuring nonferrous metal prices. Under macro headwinds, aluminum prices in and outside China fell. In the short term, bearish factors dominated, and aluminum prices were expected to remain in the doldrums. Today the alumina 2609 contract opened at 2,781 yuan/mt, reached a high of 2,803 yuan/mt, a low of 2,733 yuan/mt, and closed at 2,734 yuan/mt, down 52 yuan/mt from the previous trading day, a decline of 1.87%. Trading volume was 245,200 lots, open interest 304,500 lots, with a daily position change of +18,216 lots. Price had completely fallen below MA5 (2,786), MA10 (2,828.4), MA30 (2,885.07), and MA60 (2,820.37), with the moving averages spreading in a bearish alignment and the downtrend accelerating. On the MACD, DIFF (-13.64) turned negative and fell below DEA (2.59), and the histogram expanded to -32.46, indicating a clear strengthening of bearish momentum. Volume of 245,200 lots exceeded MA5 volume (211,900 lots), with the heavy-volume decline accompanied by a daily inflow of 18,216 lots, showing strong willingness by bears to actively add positions and press prices lower. SMM Commentary: According to SMM statistics, as of last Thursday, total domestic alumina inventory edged down WoW. Looking at the inventory structure, raw material inventory at aluminum smelters continued to destock slightly, but restocking willingness was weak due to significant recent price fluctuations and market divergence on the outlook, with end-users mainly on the sidelines. In-factory inventory at alumina refineries decreased, mainly affected by phased maintenance at some plants in the north, which prioritized consuming in-factory inventory amid production constraints. This impact is expected to gradually fade after maintenance ends next week. Port inventory continued to build up, with high port arrivals from outside China supplementing spot supply with imported resources and adding market pressure. Overall, the oversupply pattern remained unchanged. Prior to the implementation of Guinea’s bauxite quota policy, the market lacked clear bullish drivers. Next week, inventory is expected to shift from weak destocking to moderate buildup, with the supply-demand balance remaining loose and alumina prices continuing to be in the doldrums. [The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make decisions prudently and not use this as a substitute for their own independent judgment. Any decisions made by clients are unrelated to Shanghai Metals Market.]

July 2, 2026 Guangdong region: This week, premiums and discounts bottomed out and then rebounded. At the beginning of the week, due to mid-year financial constraints at enterprises, suppliers actively cut prices to monetize, but downstream buyers were reluctant to purchase, causing premiums to continue to decline. After the contract rollover, suppliers stopped cutting prices, and spot premiums surged. As of Thursday, high-quality copper was quoted at 50 yuan/mt, down 40 yuan/mt from last Thursday; standard-quality copper was quoted at a premium of 0 yuan/mt, down 20 yuan/mt from last Thursday; SX-EW copper was quoted at a discount of 60 yuan/mt, down 20 yuan/mt from last Thursday. On Thursday, the price spread for standard-quality copper premiums between Shanghai and Guangdong was 0 yuan/mt, which was relatively small and led to no inter-regional shipments. According to SMM statistics, as of Thursday, total inventory in Guangdong warehouses stood at 31,700 mt, up 11,100 mt from last Thursday, with warrant holdings totaling 5,800 mt, up 3,134 mt from last Thursday. Specifically, this week's warehouse arrivals were 20,900 mt/week, up 3,300 mt/week from last week, significantly above the annual average of 14,000 mt/week. Mid-year, smelters faced pressure to monetize and actively shipped out, and with downstream consumption weak, deliveries to warehouses increased. Warehouse withdrawals were 10,100 mt/week, down 2,200 mt from last week, below the annual average of 14,200 mt/week, mainly due to weak downstream consumption this week. Looking ahead to next week, it is reported that arrivals of both domestic and imported copper will be limited, while downstream consumption is expected to gradually recover. Inventory is likely to decline again, and spot premiums are expected to gradually pick up. (The above information is based on market collection and the comprehensive assessment of the SMM research team. The information provided is for reference only. This article does not constitute direct investment research decision advice. Clients should make decisions prudently and not use this as a substitute for independent judgment. Any decisions made by clients are unrelated to Shanghai Metals Market.)