As the first year of the 15th Five-Year Plan, 2026 marks a critical phase for the global copper industry, characterized by supply-demand restructuring, technological innovation, and green transition. Constrained by multiple factors—including resources, costs, and geopolitics—copper supply growth is limited, while new energy, new-type power grids, and AI computing power are generating substantial copper demand. The supply-demand gap continues to widen, and copper's strategic value becomes ever more prominent. Guided by the "High-Quality Development Plan for the Copper Industry (2025–2027)," China's copper industry is accelerating its high-end, intelligent, and green transformation. Against this backdrop, , will be grandly held on 28-30 October at the Shangri-La Hotel, Nanchang, Jiangxi . SMM , in partnership with Shandong Humon Smelting Co., Ltd. , invites you to attend . The conference will focus on the high-quality development of the copper industry, gathering participants from industry, research, and finance to discuss technological innovation and resource coordination, promoting China's copper industry's shift from scale advantage to dual leadership in technology and value. Click the to register now; we look forward to meeting you at the conference. Shandong Humon Smelting Co., Ltd. ("Shandong Humon Smelting") was founded in 1988 and is dedicated to becoming a world-class precious metals smelting enterprise that ensures employee well-being, customer satisfaction, and environmental harmony. It was listed on the Shenzhen Stock Exchange on May 20, 2008 (stock code: 002237). In 2019, Jiangxi Copper Corporation became its controlling shareholder. Building on the momentum of reform and opening-up and leveraging its expertise in technological innovation, the company has steadfastly pursued market-oriented and international operations. After more than 30 years of persistent entrepreneurial efforts, it has remained China's largest gold smelter for 12 consecutive years. In 2025, it achieved operating revenue of 110 billion yuan and produced 100 mt of gold. As a pioneer and leader in pyrometallurgy, the company is rooted in fire-based processes and integrates the entire chain, developing a comprehensive "cyanide-free pyrometallurgical environmental technology system." This system has been recognized with two second prizes for National Science and Technology Progress and twelve first prizes at the provincial/ministerial level. Focusing on the transformation and upgrading of gold mining and smelting, the company has put forward the strategic vision of "Unlocking Infinite Value from Limited Resources, Leading Green Development in Gold Mining and Smelting." While producing gold and silver, it also achieves the comprehensive extraction of metals such as copper, lead, zinc, antimony, selenium, tellurium, and platinum, forming a diversified development pattern encompassing gold mining, metal smelting, international trade, and high-purity materials. Looking ahead, guided by the lines, principles, and policies of the Party and the state, the company will integrate global mineral resources to create wealth for China in this era, embarking on a new journey of high-quality, leapfrog development and striving unremittingly to become a world-class precious metals mining and smelting enterprise. Contact: Wang Lu 0535-4631040 Email: manage@hbyl.cn Address: No. 11 Jinzheng Street, Shuidao Town, Muping District, Yantai City Scan to Register SMM Conference Contact Li Chongshan 173 4975 4665 lichongshan@smm.cn

On June 26, the average warrant price was unchanged from the previous trading day, quoted at $67/mt (price range $62-72/mt); the average B/L price was unchanged from the previous trading day, quoted at $69/mt (price range $64-74/mt); the average price of EQ copper (CIF B/L) was unchanged from the previous trading day, quoted at $38/mt (price range $35-41/mt), offerings based on arrivals in early July. Intraday, the SHFE/LME price ratio pulled back, the market returned to sluggishness, with only a few spot cargo offers. Heard that EQ B/L for early July arrival traded at around $40/mt, and a small number of EQ physical transactions for late June arrival closed above $38/mt. Heard that registered B/L for early July arrival were quoted at $70-75/mt, and registered warrants for delivery in early July traded at $70/mt.

I.AI Computing Power Expansion Opens Growth Space for Copper Global computing power infrastructure and data center construction have seen simultaneous explosive growth, with intensive commissioning of intelligent computing and supercomputing projects across regions, generating an entirely new incremental demand curve for copper semis. According to SMM projections, global new installations is expected to achieve a CAGR of 24% from 2025 to 2030, with the fastest pace of new deployment occurring in 2025 and 2026. New installations in 2026 are expected to grow 65% MoM, and by 2027, the growth rate of new installations is projected to pull back to 28.77%, followed by a year-by-year deceleration in 2028-2030. By region, global new installations of computing power are mainly concentrated in two major markets: the US and China. Leveraging its scale-leading cloud operators, highly efficient facility operation systems, and a well-established global AI industry ecosystem, the US continues to lead in deployment scale. In China, leading cloud producers such as Alibaba and Tencent continue to increase capital expenditure on computing power infrastructure, while the national computing power network is formally incorporated into the top-level planning of the "Six Networks" and the "East Data, West Computing" projects are being rolled out and commissioned in batches, leading to a steady rise in the market share of domestic intelligent computing centers. SMM analysis indicates that the CAGR of new copper consumption for global computing power from 2025 to 2030 is 21%, slightly lower than the growth rate of new installations. The core reason is the gradual release of medium and long-term technological effects that reduce copper usage. Looking at individual years, copper consumption growth is 54.94% in 2026, pulling back to 27.58% in 2027, and the growth of new copper consumption is also expected to exhibit a gradual slowdown trend from 2028 to 2030. II. Unit Copper Consumption in Computing Power Centers Shows a Phased Trend of First Increasing then Decreasing SMM's calculation by region shows that the comprehensive copper consumption per unit of global computing power centers will present a characteristic of first increasing then decreasing from 2025 to 2030. In the short term, new computing power is mainly through the construction of entirely new campuses, with supporting power, grounding, and other infrastructure built from scratch, coupled with high-density cabinets driving a rapid rise in the penetration rate of liquid cooling systems. Multiple factors jointly push comprehensive unit consumption upwards in 2025-2026. In the medium and long term, as 800V high-voltage DC power distribution is popularized at scale, the required thickness and cross-section of copper conductors under equivalent power scenarios will decrease significantly.Meanwhile, high-speed NVLink copper cables will face substitution by fiber optic interconnects. Coupled with the iteration of liquid cooling heat dissipation materials and technological breakthroughs in aluminum as a substitute for copper processes, the industry's comprehensive unit consumption will enter a downward trajectory. However, constrained by the pace of industrial technology penetration, SMM's calculations show no significant decline in unit consumption in 2027-2028, as consumption reduction and copper-increase factors offset each other, keeping unit consumption stable. The downward trend will only become significantly prominent after 2029. It is worth noting that comprehensive unit consumption is a weighted average calculated by SMM based on the deployment scale of computing power in the US, China, and the rest of the world. There is clear differentiation in unit consumption among data centers in different regions, with the unit copper consumption ranked as: Rest of the World > China > US, where the scale effect of large clusters effectively lowers unit copper intensity. III. Breakdown of Core Copper Usage in Computing Power Centers Computing centers fall into three categories: general-purpose IDCs, intelligent computing centers, and supercomputing centers. This article uses intelligent computing centers, which currently hold the highest market share and fastest growth rate, as the calculation sample to break down the copper consumption structure: The power supply and distribution system is the largest copper-consuming segment in a computing center, accounting for 66% of total copper consumption according to SMM calculations. It primarily handles medium- and high-voltage power conversion and ensures uninterrupted power supply for equipment rooms. Medium- and low-voltage distribution cabinets, UPS, and busways are the core copper-consuming equipment. In the short term, high-power cabinets continue to boost demand for copper semis in power distribution, while in the medium and long term, after the popularization of lithium battery UPS and high-voltage DC solutions, unit copper consumption in the distribution segment will trend steadily downward. SMM estimates that AI server hardware infrastructure accounts for 18% of copper consumption, undertaking all tasks of computing power, storage, and network interaction. It integrates core components such as GPUs, motherboards, and server power supplies, and the stable operation of the hardware directly determines the computing power output of the cluster. High-end AI server PCBs and internal interconnection copper wires are the main sources of copper consumption in this segment. The liquid cooling system accounts for 11% of copper consumption. The closed-loop liquid cooling cycle meets the heat dissipation demands of high-power AI chips, with cold plates, CDU heat exchange units, and circulating copper pipe & tube serving as the main copper-consuming components. Liquid cooling penetration during 2025-2026 will boost demand for copper pipe & tube and copper plate/sheet and strip, and once copper-aluminum composite heat dissipation materials mature, the copper intensity for heat dissipation will gradually decline. Network communication, grounding protection, and supporting auxiliary systems together occupy the remaining 5% of copper consumption , covering sub-scenarios such as high-speed interconnection cabling and equipment room grounding and lightning protection copper grids. The current optical fiber interconnection industry chain continues to expand production, with optical fiber enterprises seeing simultaneous improvements in orders and profitability, indirectly confirming the overall high prosperity of AI computing power construction. In the long term, optical fiber will also continue to divert demand from high-speed copper cables. IV. Comprehensive Analysis of the Proportions of Different Copper Semis Breaking down the copper consumption structure of computing centers comprehensively by semi-finished copper product category, cables and copper busbars are the core consumables throughout the construction process. SMM analysis shows that cables account for 40% of the total copper consumption in a computing center, acting as the “blood vessels” permeating every link, with core applications in high-voltage access, low-voltage distribution, power transmission, high-speed communication copper cables, building wiring, as well as grounding and lightning protection cables. Copper busbar (24% of total copper consumption), the "backbone" for high-current power distribution in data centers, is mainly used in high- and low-voltage power distribution cabinets, transformer copper busbars, UPS systems, etc.Copper plate/sheet and strip (17%) is mostly used in transformer windings and liquid cooling cold plate substrates, performing dual functions of power transformation and heat dissipation. Copper pipe & tube (11% of total copper consumption) is a dedicated consumable for liquid cooling systems, mostly used in circulation piping, CDU heat exchange units, and precision air conditioning heat exchange pipes. The large-scale expansion of liquid cooling will boost demand for copper pipe & tube in the short term. Copper foil (4%) covers application scenarios including servers, switches, and various PCB circuit boards. Industry demand is concentrated on HVLP ultra-low profile high-end copper foil. Although the copper consumption per GW is relatively small, the incremental elasticity driven by AI computing power expansion is extremely strong. Currently, copper foil enterprises are accelerating the switch of capacity from ordinary electronic copper foil to high-end HVLP capacity, while copper clad laminate (CCL) producers have full order books and processing fees are being raised continuously, indicating that the prosperity of computing hardware demand has been verified across the entire industry chain. In summary, the rapid expansion of computing centers directly drives the growth in demand for related copper semis. At the same time, high-density AI computing clusters significantly raise the requirements for power supply supporting facilities, and the overall electricity consumption scale of the industry surges simultaneously. The demand for power infrastructure construction derived from computing expansion has become a key focus for long-term tracking and research in the future. While computing demand expands, the industry's development also faces external constraints. Currently, the grid connection approval process has a relatively long queuing period, and the market is generally concerned that transmission, distribution, and generation-side capacity bottlenecks may drag down the implementation pace of computing projects. However, according to SMM forecasts, no substantial power supply gap risk is expected for the industry over the next five years. It will still be necessary to closely track the approval progress and commissioning pace of various transmission and distribution supporting projects. SMM will also continue to follow the relevant industry dynamics and copper demand changes. For detailed data, please contact Cynthia Wang of the SMM Copper Research Team at 15762822325.

Canadian copper explorer Gladiator Metals has raised more than C$35 million through a private placement led by BlackRock. Following the financing, the company expects its cash position to increase to approximately C$50 million, providing full funding for its 2026–2027 exploration program at its flagship copper project in the Whitehorse Copper Belt of Yukon, Canada. Gladiator plans to expand its drilling fleet from three to six rigs and focus on resource growth at the Cowley Park and Cub East prospects. BlackRock’s participation as a sign of continued institutional interest in high-quality copper exploration assets amid expectations of long-term copper demand growth.

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:

South America remains the cornerstone of global copper supply, with Chile and Peru collectively accounting for more than one-third of global mined copper production. As electrification, grid modernisation, renewable energy deployment and AI-driven infrastructure investment continue to reinforce long-term copper demand growth, policy developments across the region are becoming increasingly important determinants of future supply availability.

A Reuters analysis suggests that expectations for AI-driven copper demand may be overstated. Although AI data centers consume more copper than conventional facilities, project deployment faces bottlenecks including power availability, grid connections, logistics and labor constraints. Advances in fiber-optic and high-voltage technologies may also reduce copper intensity. AI remains supportive for copper demand, but perhaps not to the extent many bulls anticipate.

India’s cable and wire industry is expected to achieve around 30% revenue growth in the coming fiscal year, supported by infrastructure investment, manufacturing expansion, and construction activity. Industry groups said higher copper and aluminum prices are increasing costs but also lifting selling prices. Continued investments in grid modernization and renewable energy are expected to drive stronger copper consumption. Analysts see India emerging as a major contributor to global copper demand growth.

CopperTech Metals filed for a U.S. IPO on June 2 as it seeks to benefit from rising global copper demand. The company, formed around Vedanta’s Konkola Copper Mines operations in Zambia, reported revenue of $1.33 billion for fiscal 2026, up sharply from $398 million a year earlier. CopperTech said IPO proceeds will support production expansion and exploration activities tied to growing demand from AI data centers, energy transition projects, and defense industries. Investors increasingly see future copper supply as a strategic growth theme.

SMM May 28 update: The minor metal sector strengthened on May 28. As of the close on May 28, the minor metal sector rose 3.44%. In terms of individual stocks: Sino-Platinum Metals, Yunnan Germanium Industry, and China Molybdenum hit the daily limit, while China Minmetals Rare Earth, China Tungsten And Hightech, China Northern Rare Earth, and China Rare Earth led the gains. On the news front: According to authoritative local media in Zimbabwe and Xinhua News Agency, the Zimbabwean government recently issued the Mineral Classification and Declaration, explicitly listing lithium and other high-value minerals as "critical minerals" subject to equity and export controls. The critical minerals involved include 14 types: lithium, nickel, cobalt, graphite, copper, rare earth elements, chromium, platinum group metals (PGMs), manganese, antimony, uranium, ruthenium, tungsten, and niobium. The market is focused on the impact of tightening resource-country policies on global supply chains, with sentiment warming for minor metal varieties such as antimony and tungsten. Spot market Tungsten According to SMM pricing, on May 28, the average price of wolframite concentrates (≥65%) was 415,500 yuan/standard tonne (65%WO3 basis), up 1.22% from the previous trading day. Notably, after wolframite concentrates previously experienced a 61.88% decline over more than two months, driven by increased purchasing demand in the tungsten market, tungsten prices saw a rebound over two trading days. Currently, transactions in the tungsten concentrates market have improved, suppliers are bullish and hold back from selling, high-grade ore sees an upward shift in transaction center, while medium and low-grade ore circulates more but price increases appear lackluster. Downstream APT industry operating rates have slightly improved, but with limited new orders in the industry, smelters are cautious in restocking, with only small volumes of spot orders and large orders transacted in the market. Regarding the tungsten outlook, in the short term, driven by orderly inventory destocking, the return of downstream rigid demand, and the formation of pricing consensus among industry leaders, the tungsten market has overall entered a consolidation-at-lows and recovery phase. Going forward, key attention should be paid to the execution of long-term contracts and the pace of end-use demand recovery. According to SMM surveys, downstream cemented carbide alloy enterprises have seen inventory drop to low levels, with expectations of rigid restocking demand, but influenced by the market not yet being fully stabilized, enterprises remain cautious in procurement, generally adopting a small-order purchasing model. If upstream raw material inventory continues to be cleared and supply-demand imbalances are alleviated, tungsten prices are expected to enter a stabilization and consolidation phase in June-July. In the medium and long-term, the gap in Q3 mining quota transitions may lead to a contraction in market supply, coupled with expectations of the traditional September-October peak season, the industrial supply-demand structure will continue to optimize, thereby providing bullish support for tungsten prices. Rare Earths After the rally on May 27, the average price of Pr-Nd oxide on May 28 fell 1.79% from the previous trading day, and inquiries in the rare earth oxide market were sluggish on the 28th. Affected by futures price fluctuations combined with periodic restocking by some major producers, Pr-Nd oxide prices fluctuated frequently this week. Upstream and downstream players continued their stalemate, with suppliers maintaining relatively firm offers overall, while downstream metal producers maintained a strong wait-and-see sentiment and showed low purchase willingness at high prices. Absent other news-driven factors, Pr-Nd oxide is expected to remain in the doldrums in the short term before any significant change in the supply-demand relationship. Institutional Views Huafu Securities noted in its research report dated May 24, when commenting on other minor metals: rare earths performed weakly, while tantalum pentoxide surged during the week. In the rare earth market, end-use demand from downstream magnetic material sectors remained weak, with no large-scale concentrated restocking observed — only sporadic rigid-demand small orders were transacted, and the demand side consistently failed to provide effective support for the market. Market sentiment fluctuated significantly, with frequent tug-of-war between longs and shorts. Overall industry confidence was insufficient, with a notable stalemate between upstream and downstream on offer and bid prices, and significant divergence within the industry regarding the outlook for subsequent market trends. On Friday, the market maintained a wait-and-see attitude, awaiting changes in the magnetic material restocking pace and a recovery in downstream demand. Individual stocks: for antimony, Hunan Gold, Huaxi Nonferrous, and Huayu Mining are recommended; for molybdenum, China Moly, China Gold, and CMOC; for tungsten, Jiaxin International Resources, China Tungsten High-Tech, Xiamen Tungsten, and Zhangyuan Tungsten; for rare earths, China Rare Earth, China Northern Rare Earth, JL MAG Rare-Earth, and Xiamen Tungsten. Kaiyuan Securities' mid-year 2026 investment strategy for the metals sector indicated: Copper: Supply side, most ex-China miners continued to face declining ore grades and recovery rates, with disruption factors persisting (Ivanhoe's Kamoa-Kakula copper mine, Codelco's El Teniente copper mine). Although China's domestic enterprises added incremental capacity, the overall increase was limited. Under optimistic assumptions, global supply growth from 2026 to 2027 may fall below 2%. Demand side, power demand in both China and the U.S. maintained high growth rates in H1, which is expected to contribute marginal incremental copper demand. Kaiyuan Securities believes that the supply-demand structural imbalance for copper will become more pronounced in 2026, supporting a rise in the copper price center. Lithium: Supply side, capital expenditure in the lithium industry contracted and supply discipline gradually took shape. Combined with frequent disruptions, supply elasticity in the lithium industry has declined notably compared to before. Meanwhile, energy storage demand sustained high prosperity, driving gradual improvement in the lithium demand structure and marginal easing of inventory pressure. Lithium prices are expected to see a phased recovery. Lithium enterprises with resource security, low-cost advantages, and integrated layouts are expected to see earnings recovery elasticity outperforming the industry average. Lithium mine and lithium chemicals companies with high resource self-sufficiency rates and strong cost control capabilities are worth watching. Tungsten: As a strategic metal where China holds a dominant position, tungsten ore supply is constrained by resource depletion, environmental protection, and other factors. Combined with the government's total volume control on tungsten ore mining, tungsten ore production release remains limited. Demand side, emerging sectors are boosting tungsten demand, which is expected to provide long-term support for tungsten prices. According to a CITIC Securities research report, the current metals sector valuation remains at a reasonable level, with aluminum, copper, nickel-cobalt-tin-antimony, and gold valuations at relatively low levels, and a valuation rebound is still anticipated. Sector dividends have pulled back slightly, but the projected dividend yields of some individual stocks still exceed 5%. Looking ahead to 2026, liquidity shocks are expected to ease, supply disruptions are expected to occur frequently, and certain downstream sectors are expected to sustain relatively high prosperity. It is recommended to maintain a focus on allocation opportunities in lithium, copper, rare earths, strategic metals, aluminum, and gold sectors. Recommended Reading: