The US Department of Defense recently awarded a $2 million contract to ReElement Technologies to support the expansion of its rare earth element separation capacity at its facility in Marion, Indiana. The two-year grant was actually awarded on September 3, 2025, but its announcement was delayed until this week due to a government shutdown. The funding will be specifically used to purify rare earths from ore, recycled magnets, and scrap, as part of the US Department of Energy’s "Mine-to-Magnet" program, which aims to build a domestic rare earth supply chain to reduce reliance on China. ReElement employs a unique chromatography refining technology to produce high-purity rare earth oxides for use in defense and commercial permanent magnets.

The US Department of Defense recently announced a $2 million contract collaboration with ReElement Technologies, with the funds specifically designated to support the company in expanding its rare earth element separation capacity at its facility in Marion, Indiana. Although the two-year grant was actually awarded on September 3, 2025, its announcement was delayed until this week due to a government shutdown. The funding will be used exclusively for purifying rare earth elements from ore, recycled magnets, and scrap, as part of the US Department of Energy’s "Mine-to-Magnet" initiative, which aims to build a domestic rare earth supply chain and reduce reliance on China. ReElement employs a unique chromatographic refining technology capable of producing high-purity rare earth oxides, which can be used in both national defense and commercial permanent magnet applications.

The US Department of Defense awarded $2 million to ReElement Technologies to help expand its rare earth element separation capacity at its Marion, Indiana plant. The two-year grant, although awarded on September 3, was delayed due to the federal government shutdown at the end of 2025 and was only announced this week. The move by the US Department of Defense aims to strengthen the US's access to raw materials produced domestically and by allies, reducing reliance on China-dominated supply chains. The funds will be invested in ore processing, magnet recycling, and scrap processing.

[Price Review] Driven by CME’s seven consecutive emergency margin hikes on silver futures to 18%, a liquidity squeeze and exchange-mandated cooling measures together steered the overheated silver price back to earth. This week the silver market moved sideways after wild swings. On the SHFE side, the exchange released on Wednesday the “Automatic Conversion Standard for Hedging Position Quotas”; although the TD price on the SGE did not narrow versus the SHFE silver 2602 contract, the backwardation structure of the SHFE calendar spread kept converging and the risk of a speculative short squeeze declined. This week the SGE deferred-fee direction again stayed “short pays long”, and traders holding longs still found it hard to pick up physical metal through SGE delivery. As for the gold/silver ratio, silver’s plunge far outpaced gold’s, sending the ratio from the prior 47× low to near the 70 handle, a two-and-a-half-month high, showing silver’s volatility during deleveraging was markedly above gold’s. By 12 February, as silver rebounded, the ratio pulled back to roughly 60×; with short-term speculative money out, the ratio is expected to consolidate in a range. [Key Data] Bullish: US Dec retail sales m/m 0%, below both prior and expectations Bearish: US Jan unemployment 4.3%, below prior and expectations US Jan seasonally adjusted non-farm payrolls 130,000, above prior and expectations US week to 6 Feb EIA crude inventory: 8.53 million barrels, above prior and expectations Data and macro headlines to watch next week include: This Friday the US will release the Jan non-farm payrolls and unemployment, but note the BLS has warned the report could be delayed due to the partial government shutdown. Several Fed officials will speak, including Atlanta Fed President Bostic on the economic outlook. [Price Forecast] Domestic markets entered a holiday lull this week. Overseas liquidity over the holiday left short-term speculative money cautious about re-entering silver, awaiting either the full deflation of price froth or the removal of margin-hike risk controls. Post-holiday silver is expected to search for a new equilibrium after the wild swings. A possibly soft US data set this week and lingering worries over Fed independence have weakened the US dollar index, briefly lifting precious metals. Although supply-demand fundamentals still lend medium- and long-term support, sentiment-driven spikes and the ever-present threat of rapid pullbacks keep silver in a high-risk, high-volatility environment. Overall, post-holiday silver is likely to hover at highs; stay alert to liquidity risk amid elevated volatility. 》Check SMM precious-metals spot quotes

Next week, key economic data includes the US December retail sales month-on-month rate, US January unemployment rate, US January seasonally adjusted non-farm payrolls, and CPI and PPI data from both China and the US. After a three-day partial government shutdown in early February due to funding problems, the US House of Representatives passed a government funding bill on the 3rd, resolving the impasse. Delayed data releases are scheduled for next week. On the LME lead front, precious and non-ferrous metals continued their decline from the previous week. Overseas lead inventory surged by nearly 30,000 mt, pushing LME lead prices lower, with the LME Cash-3M contango widening to -$51.98/mt at one point. Additionally, the US dollar index fluctuated with a rebound, putting pressure on non-ferrous metals, and recurring overseas geopolitical issues are expected to keep LME lead in the doldrums next week, trading between $1,925-2,000/mt. For SHFE lead, next week marks the final week before the Chinese New Year holiday. Both supply and demand in the lead market are declining, compounded by logistics suspensions and factory holidays, leading to sluggish market transactions. While smelters are clearing inventory, lead ingot stocks are being transferred to downstream enterprises and social warehouses. There is a risk of further increases in social warehouse inventory, which may weigh on lead prices, keeping them in the doldrums. The most-traded SHFE lead contract is expected to trade between 16,350-16,850 yuan/mt next week. Spot price forecast: 16,350-16,600 yuan/mt. Next week, the last batch of lead-acid battery enterprises will enter holiday mode, leading to a further decline in lead consumption and increasingly sluggish spot transactions. Meanwhile, maintenance or production cuts at secondary and primary lead smelters are increasing. With most enterprises having already cleared inventory ahead of the holiday, pre-holiday inventory buildup pressure at smelters is relatively small. Spot discounts are unlikely to widen and may narrow slightly. Lead ingot inventory accumulation will be more evident during the Chinese New Year holiday period. .

[Price Review] This week, the silver market experienced historic and extreme volatility. The LBMA silver price first recorded its largest single-day drop in history on January 30, then plunged over 15% during trading on February 2, breaking below the $72/oz level, rebounded slightly, and weakened again. This round of volatility was triggered by hawkish policy concerns following the news of "Wash being nominated as the next Fed Chairman," leading to a price collapse as speculative bulls rushed to exit, creating a scenario of longs squeezing longs. In the SHFE silver market, the previously rare backwardation structure narrowed this week as the premium of the Shanghai market over LBMA widened, and imported silver ingots and crude silver raw materials slowly flowed into the market. However, spot market availability remained tight. The direction of the deferred fee on the gold exchange has consistently been short paying long since December 25, 2025, and the total physical delivery volume remained low. Regarding the gold/silver ratio, it widened significantly during the silver crash, approaching 60 times, and as of February 4, the LBMA gold/silver ratio rebounded slightly to 55 times, significantly deviating from previous lows. Silver exhibited much higher volatility than gold during the deleveraging process. [Price Forecast] Given the current high-risk environment of extreme volatility in precious metals, speculative funds may continue to enter the market next week. After the violent price swings, silver prices will seek a new equilibrium as the market digests US Fed policy expectations and the repricing of physical and paper silver. From a fund flow perspective, after taking profits, long funds turned to short positions. Some market traders mentioned the possibility of cash settlement being initiated if COMEX physical delivery defaults occur. The pattern of declining inventory and tight supply has not fundamentally reversed. Domestically, physical prices showed unusual premiums compared to both the gold exchange and SHFE prices, with suppliers noticeably reluctant to sell. Spot premiums are expected to see limited declines before the Chinese New Year holiday. As downstream industries gradually shut down for the holiday and just-in-time procurement concludes, silver price premiums may gradually pull back. Subsequent attention should remain on geopolitical disturbances and guidance from US Fed officials' speeches regarding real interest rate expectations. [Key Data] Bullish: US January ISM Manufacturing PMI came in at 52.6, higher than the previous value and expectations. US January ADP Employment Change came in at 22,000, lower than the previous value and expectations. US EIA Crude Oil Inventories for the week ending January 30 came in at -3.455 million barrels, lower than the previous value and expectations. Bearish: Eurozone January Services PMI Final came in at 51.6, lower than the previous value and expectations. Key data and macro news releases to watch next week include: This Friday, the US will release the January Nonfarm Payrolls report and unemployment rate data, but special note is required as the US Bureau of Labor Statistics has warned that partial government shutdown may cause delays in this data release. Several US Fed officials are scheduled to speak intensively, including Atlanta Fed President Bostic, who will speak on the economic outlook.

Today, the most-traded BC copper contract 2603 opened at 92,930 yuan/mt, fluctuating considerably at the start of the session. During daytime trading, it immediately touched a high of 93,770 yuan/mt, after which the center of copper prices gradually shifted downward, probing a low of 92,080 yuan/mt, then fluctuated upward and finally closed at 93,200 yuan/mt, a gain of 3.61%. Open interest reached 5,624 lots, down 222 lots from the previous trading day, while trading volume reached 88.05 million lots, showing a reduction in bear positions. From a macro perspective, Trump's plan to introduce a strategic reserve for critical minerals, coupled with a proposal from the Nonferrous Metals Association to include copper and copper concentrates in the reserve allocation, provided upward momentum for copper prices. At the same time, Trump signed a bill to end the partial US government shutdown, easing some market uncertainty. On the fundamentals, supply side, spot supply of copper cathode narrowed overall during the day, with limited spot cargo resources available in the market, and some brands held in warrant form. Supply side, spot circulation resources for copper cathode were tight, and available supply for sale narrowed, with some brands existing as warrants. Demand side, affected by the rebound in copper prices and the approaching Chinese New Year holiday, overall performance was weak. SHFE copper contract 2603 closed at 105,160 yuan/mt. Based on the BC copper contract 2603 price of 93,200 yuan/mt, its after-tax price is 105,316 yuan/mt, resulting in a price spread of -156 between SHFE copper 2603 and BC copper. The spread remained inverted and continued to widen.

SMM Nickel February 4 News: Macro and Market News: (1) To maintain ample liquidity in the banking system, the People's Bank of China conducted 800 billion yuan in outright reverse repo operations today, using a fixed amount, interest rate tender, and multiple-price winning method, with a maturity of three months (91 days). (2) The US House of Representatives voted to pass a funding bill for several federal government departments for the remainder of the fiscal year, resolving the partial government shutdown that began on January 31. US President Trump subsequently signed the bill. Spot Market: On February 4, the SMM #1 refined nickel price was 136,100-147,100 yuan/mt, with an average price of 141,600 yuan/mt, up 2,550 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 9,000-9,800 yuan/mt, with an average premium of 9,400 yuan/mt, up 150 yuan/mt from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -400-400 yuan/mt. Futures Market: The most-traded SHFE nickel contract (2603) opened higher and rose during the session, closing the morning session at 136,570 yuan/mt, up 2.94%. The previous sharp decline in macro panic sentiment eased, and the non-ferrous metals sector saw a technical rebound overall. Expectations for reduced nickel ore quotas in Indonesia persist, and nickel prices are expected to rebound in the future.

SMM Morning Meeting Minutes: LME copper opened at $13,270/mt overnight, initially testing the low at $13,252/mt, after which copper prices fluctuated upward, hitting a high of $13,526/mt and hovering at highs, eventually closing at $13,410/mt, up 3.95%. Trading volume reached 38,000 lots, down 10,550 lots from the previous session; open interest stood at 326,000 lots, down 1,276 lots from the previous session, reflecting overall bear position reduction. The most-traded SHFE copper contract 2603 opened at 104,950 yuan/mt overnight, initially testing the high at 105,800 yuan/mt, after which the center declined to test the low at 104,440 yuan/mt, fluctuating rangebound overall, and eventually closed at 105,180 yuan/mt, up 3.49%. Trading volume reached 129,000 lots, down 246,000 lots from the previous session; open interest stood at 192,000 lots, up 35 lots from the previous session, reflecting overall bull position increase.

[SMM Lead Morning Meeting Minutes: Pre-Holiday Market Trading Weakens, Lead Prices Expected to Remain in the Doldrums] The US House of Representatives passed a funding agreement negotiated by President Trump and Senate Democrats. Recently, the lead market has been increasingly influenced by the Chinese New Year atmosphere, with downstream lead-acid battery enterprises successively preparing to suspend operations for the holiday, leading to a decline in trading activity in the lead market...