[Silicon Metal Market Sees Rising Bargaining Sentiment, Focus on Changes in Supply-Side Operating Rates]: This week, the silicon metal market remained in a bargaining stalemate, with the price center of some specifications edging up slightly. As of March 26, SMM east China oxygen-blown #553 silicon was at 9,100-9,300 yuan/mt, up 100 yuan/mt WoW. #441 silicon was at 9,300-9,500 yuan/mt, flat WoW, and #3303 silicon was at 10,200-10,400 yuan/mt, also flat WoW. In the futures market, affected by sentiment and expectations surrounding supply-side factors such as “self-discipline among silicon enterprises and anti-involution,” the most-traded silicon metal contract continued to hold up well over the past week, closing at 8,735 yuan/mt late on Thursday with a notable gain. In terms of quotations, silicon enterprises mostly kept shipment quotes stable, with some quotes testing slight increases; the quote center of trading firms engaging in both spot and futures market rose markedly, and low-priced cargoes disappeared. As downstream acceptance of high prices was limited, high-priced transactions in the market were difficult to conclude.

SMM News: Following our previous analysis of the transportation and wind power sectors, this installment shifts focus to the critical demand drivers in the consumer and construction domains: White Goods , Consumer Electronics , and Real Estate-related applications (Elevators and Power Tools). While these sectors individually consume less magnetic material per unit compared to New Energy Vehicles (NEVs), their sheer aggregate volume makes them indispensable pillars of the Neodymium-Praseodymium (Pr-Nd) market. However, data from early 2026 reveals a troubling trend of stagnation and structural contraction across these traditional strongholds. I. White Goods: The Dual Pressure of Production Slumps and Material Substitution In the white goods sector, Neodymium-Iron-Boron (NdFeB) magnets are primarily utilized in two key applications: compressors for inverter air conditioners and motors for drum and impeller washing machines . 1. Air Conditioners: A Sharp Contraction in Output and Dosage According to data from the National Bureau of Statistics (NBS), China’s cumulative air conditioner production for January-February 2026 stood at 40.118 million units , a staggering 35% year-on-year (YoY) decline compared to the 61.921 million units produced in the same period of 2025. (Reason: This drastic drop is attributed to a combination of factors: firstly, an unusually mild winter across major consumption regions significantly dampened heating demand, leading to a destocking cycle among distributors. Secondly, the real estate sector’s continued downturn has severely curtailed new housing completions, directly reducing the installation of centralized and split AC systems. Lastly, high inventory levels carried over from 2025 forced manufacturers to aggressively cut production schedules in Q1 2026 to avoid capital lock-up.) Looking at the full year, SMM forecasts a marginal growth of 0.96% for 2026, with total annual production projected at 271.095 million units . (Reason: The near-flat growth outlook reflects a mature market saturation where replacement demand, rather than new installations, drives volume. While export markets offer some resilience against domestic weakness, rising trade barriers and logistical costs in key regions like Europe and North America are expected to cap significant expansion.) Applying SMM’s calculation model: Inverter Penetration: 99% NdFeB Motor Penetration: 92% Specific Consumption: Assumed at 100g/unit for 2026. Based on these parameters, the total NdFeB consumption for the air conditioner sector in 2026 is estimated at 24,691 tons , representing a 23% decrease from the 29,163 tons consumed in 2025. The core driver of this decline is twofold: first, the persistently high prices of Pr-Nd since the second half of 2025 have accelerated the industry’s cost-reduction initiatives. Second, there is a clear technological shift towards minimizing rare earth usage. The average single-unit dosage has dropped from 120g/unit in 2025 to 100g/unit in 2026 , as manufacturers optimize motor designs and, in some lower-end models, substitute with ferrite magnets or induction motor technologies where efficiency standards allow. 2. Washing Machines: A Slow Erosion of Demand For January-February 2026, China’s cumulative washing machine production was 18.58 million units , a slight 0.3% YoY decline from the 18.51 million units in the same period of 2025. (Reason: The stability in production volumes masks underlying weakness. The slight dip is primarily due to weak consumer confidence impacting discretionary spending on home appliance upgrades. Furthermore, the export market for washing machines has faced headwinds from sluggish global economic growth and intensified competition from Southeast Asian manufacturing hubs, offsetting modest domestic recovery efforts.) SMM projects a full-year growth rate of 3.1% for 2026. (Reason: This modest recovery is underpinned by government-led "trade-in" subsidy policies aimed at boosting domestic consumption of energy-efficient appliances. Additionally, product innovation in the high-end segment, such as washer-dryer combos and smart features, is expected to stimulate some replacement demand, though the overall ceiling remains low.) Demand Calculation Logic: Drum Washer Penetration: 63% (High-end, 98% use NdFeB) Impeller Washer Penetration: 28% (Mid-range, 50% use NdFeB) Specific Consumption: 290g/unit for drum washers; 240g/unit for impeller washers. Under this model, the total NdFeB demand for washing machines in 2026 is estimated at 27,204.52 tons , a 0.2% decrease from 27,262 tons in 2025. The sector is experiencing a slow but steady erosion of demand. While high-end drum washers rely heavily on efficient NdFeB motors to meet stringent energy labels, the volatility of rare earth prices is prompting manufacturers to cautiously explore alternative motor designs or reduce magnet grades in non-critical applications. Consequently, the industry has adopted a strategy of gradual reduction rather than abrupt substitution, balancing performance requirements with cost control. Outlook: The trajectory for white goods in 2026 is undeniably pessimistic. Both production volumes and technical intensity (dosage per unit) are trending downward, creating a double drag on Pr-Nd demand. II. Consumer Electronics: Volume Resilience vs. Intensity Decline The consumer electronics sector, modeled by SMM, comprises four main segments: Mobile Phones , Tablets , Desktops/Laptops , and Smartwatches . These devices utilize NdFeB primarily for acoustic components (speakers/receivers) and haptic feedback motors, with emerging uses in magnetic charging interfaces. The specific consumption is generally low, ranging from 2-5g/unit , except for desktops which average 15g/unit . Market Performance (Jan-Feb 2026): Mobile Phones: 220 million units (+6.8% YoY). Micro-computer Equipment: 41.956 million units (-31% YoY). Breakdown: 21% Tablets, 27% Desktops, 52% Laptops. Smartwatches: 8.196 million units (+7.8% YoY). (Reason: The divergence in performance is stark. Mobile phone growth is driven by the global rollout of AI-enabled handsets and the replacement cycle for 5G devices, particularly in emerging markets. Conversely, the sharp collapse in micro-computer equipment reflects the post-pandemic normalization of demand; the massive stockpiling of devices during 2020-2022 has led to a prolonged digestion phase. Additionally, extended device lifespans due to improved hardware durability have further suppressed replacement rates for PCs and tablets.) 2026 Full-Year Forecast: SMM anticipates a 1% growth for mobile phones and micro-computers combined, and a 5% growth for smartwatches. (Reason: The muted outlook for computing devices stems from persistent macroeconomic uncertainty and corporate IT budget tightening. For smartwatches, growth is fueled by increasing health-monitoring capabilities and deeper ecosystem integration with smartphones. However, the entire sector faces a cloud of uncertainty due to escalating geopolitical tensions affecting supply chains and rising memory chip prices, which may force OEMs to revise production targets downward later in the year.) Demand Estimation: Mobile Phones: 3,109.8 tons Micro-computers: 2,018.9 tons Smartwatches: 125.06 tons Total 2026 Demand: 5,253.76 tons , a 3% decline from 5,421.19 tons in 2025. The primary driver for this decline is the continuous, albeit slow, reduction in specific consumption. As miniaturization advances and alternative magnetic materials improve, the amount of NdFeB required per device is shrinking. Despite the relatively low single-unit dosage, the massive scale of the consumer electronics industry ensures it remains a significant consumer of NdFeB. Moreover, this sector is characterized by highly standardized supply chains, where major OEMs maintain binding agreements with certified magnet suppliers, making demand relatively stable but resistant to price-driven spikes. III. Real Estate Related: Elevators and Power Tools The final segment covers industries tightly coupled with the real estate cycle: Elevators and Handheld Power Tools . 1. Elevators: Policy Support vs. Structural Headwinds In January-February 2026, elevator production reached 150,000 units , a 7.1% YoY increase . (Reason: This short-term surge is largely attributable to the acceleration of projects that were delayed in late 2025, as developers rushed to meet pre-delivery deadlines before stricter regulatory inspections took effect. Additionally, government mandates for retrofitting old residential communities with elevators in urban renewal zones provided a temporary boost to order books.) However, SMM forecasts a full-year contraction of -3% for 2026. (Reason: The long-term outlook is grim due to the fundamental slowdown in new residential construction starts, which remain at multi-year lows. The debt crisis plaguing major property developers continues to stall new project launches, directly impacting the demand for new elevator installations. While the retrofit market offers some support, it is insufficient to offset the collapse in new building commissions.) Calculation: Energy-saving Elevator Penetration: 90% Specific Consumption: 6 kg/unit (for energy-saving models). Total 2026 Demand: 7,222.6 tons , a 1.3% increase from 7,125.3 tons in 2025. (Reason for Growth: The slight increase in total tonnage despite falling production volumes is entirely driven by the rising penetration of energy-saving elevators. Stricter national energy efficiency standards (GB standards) are forcing manufacturers to adopt permanent magnet synchronous motors (PMSM) over traditional asynchronous motors, thereby increasing the average NdFeB dosage per unit even as the total number of units declines.) 2. Handheld Power Tools: A Direct Casualty of Property Slump Production of handheld power tools in Jan-Feb 2026 was 29.566 million units , down 0.24% YoY . SMM projects a -3% decline for the full year 2026. (Reason: The downturn is inextricably linked to the stagnation in the global and domestic real estate markets. Reduced renovation activities and a slowdown in infrastructure projects have dampened demand for professional-grade tools. Furthermore, high inventory levels in distribution channels across North America and Europe, resulting from over-ordering in 2024, have led to a prolonged period of destocking.) Definition & Scope: According to the National Bureau of Statistics, handheld electric tools refer to portable motor-driven tools operated by hand, including electric drills, grinders, sanders, saws, and screwdrivers . These products are highly sensitive to housing turnover and renovation rates. Demand Calculation: NdFeB Penetration: 60% Specific Consumption: 80g/unit Total 2026 Demand: 9,134 tons , a sharp 13.4% drop from 10,548 tons in 2025. The significant contraction in this sector underscores the deep correlation between the property market and industrial metal demand. As the real estate sector remains in a prolonged adjustment phase, the downstream demand for power tools—and consequently NdFeB—faces sustained pressure. Conclusion The analysis of white goods, consumer electronics, and real estate-related sectors paints a picture of structural weakness for 2026. While niche policy drivers (like energy-saving elevator mandates) provide isolated pockets of growth, the overarching trends are defined by production saturation, inventory destocking, and aggressive material substitution . The combined effect of lower production volumes and reduced single-unit dosages creates a formidable headwind for Pr-Nd prices. In the final installment of this series, we will pivot to the future: examining the burgeoning demand from Low-Altitude Economy (eVTOLs), Robotics (Industrial and Service), and the relentless expansion of Electric Two-Wheelers . These emerging sectors may hold the key to offsetting the declines observed in traditional industries and reshaping the long-term demand curve for rare earth magnets.

[Weak Market Sentiment Weighed on Both Spot Silicon Metal and Polysilicon Prices]: This week, the silicon metal market moved lower after a stalemate, with weak market sentiment, some downstream procurement demand released, and cautious trading sentiment. SMM east China oxygen-blown #553 silicon stood at 9,000-9,200 yuan/mt, down 100 yuan/mt WoW. At the beginning of the week, silicon metal market prices remained in a stalemate, while the most-traded contract fluctuated around 8,550-8,750 yuan/mt, with downstream procurement mainly focused on factory cargoes. Later, affected by macro factors and capital sentiment, futures prices declined continuously and closed at 8,285 yuan/mt on Thursday. As spot-futures traders' price advantages became apparent, shipments increased, downstream procurement sentiment diverged, and the market saw transactions based on immediate needs.

Copper and broader base metals have eased from recent highs as China’s share of global metal demand growth has declined significantly compared to pre-pandemic years and speculative positions in Shanghai unwound. Shanghai futures briefly hit record highs above RMB 114,000/t, but open interest and prices have since fallen, also pushing down London prices.

In January, the silicon metal market experienced a relatively loose supply-demand balance, with a theoretical inventory buildup of approximately 30,000 mt. In February, both supply and demand contracted simultaneously, and the market is expected to show a tight balance or minor destocking. The current high industry inventory still requires time to be digested, and the sustainability of destocking remains a key variable affecting price trends and market sentiment.

[SMM Tin Midday Review: Rebound in US Dollar Index Weighs on Metal Prices; SHFE Tin Prices May Fluctuate Around 264,000 Yuan/mt in Afternoon] The most-traded SHFE tin contract (SN2507) opened at 264,430 yuan/mt this morning, slightly higher than the previous trading day's closing price of 263,690 yuan/mt, and then hovered at highs. By midday, prices fluctuated around 264,000 yuan/mt, with relatively cautious market trading and a slight reduction in open interest, reflecting intensified competition between bulls and bears at the current price level. Divergence in Global Economic Outlook: US May non-farm payrolls data exceeded expectations, weakening expectations for US Fed interest rate cuts. The rebound in the US dollar index weighed on metal prices. Meanwhile, the World Bank lowered its 2025 global economic growth forecast to 3.5%, putting pressure on the outlook for industrial metal demand.

On June 13, at the 2025 SMM (13th) Minor Metal Industry Conference - Rare and Scattered Metals Forum (Indium, Germanium, Gallium, Bismuth, Selenium, Tellurium), hosted by Shandong Humon Smelting Co., Ltd. and SMM Information & Technology Co., Ltd., Long Wensheng, General Manager of Changsha Aochang Nonferrous Metals Co., Ltd., elaborated on "The Current Application Status and Future Prospects of Minor Metal Selenium.

At the 2025 Indonesia Mining Conference & Critical Metals Forum - Nickel, Cobalt, and NEV Session, STJ Budi Santoso, Master of Geology and Chairman of the Indonesian Association of Geologists (IAGI), shared insights on the topic " Exploration Experts Share: Developing Indonesia's Critical Mineral Reserve Potential and Enhancing Downstream Industry Capabilities as Top Priorities ." The Role and Challenges of Exploration Drivers of Exploration: Current and Future State of the Mining Industry Since Q4 2020, most commodity prices have risen, with some reaching multi-year highs. Global metal demand doubles every 20 to 30 years, and media projections suggest cumulative copper demand from 2017 to 2042 could reach 689Mt. Exploration spending is expected to increase by 65% by 2027. Greater Exploration Challenges Current exploration data indicates that the discovery depth for base metals is twice that of gold, while the unit discovery cost for gold mines has doubled over the past decade. For base metals, assuming an exploration budget of $5 million, the probability of a moderate discovery in any given year is less than one in thirty. Thus, exploration is a high-risk/high-reward activity. Exploration Challenge: Discovery-to-Production Ratio Rough estimates show that only 11 of the 229 oil fields discovered since 1990 are currently in production. Exploration Challenge: Time from Discovery to Production Readiness On average, mines take 16.3 years from discovery to production. Despite shorter construction times, the lengthy processes of exploration, permitting, and financing prolong the timeline for mine commissioning. Factors affecting the lead time of geological resource exploration include: Exploration, permitting, and studies; Financing and permitting for open-pit/underground development; Commodity prices. Exploration Challenge: Timing of Exploration and Discovery in Indonesia Most, if not all, existing mineral discoveries are results of exploration under the Work Contract (CoW) and Mining License (KP) systems. Whether the current licensing regime and its subsequent mechanisms can match or surpass these outcomes remains debatable. So far, this seems unlikely. Discovery-to-Production Cycle: Roles of Government and Industry Exploration Overview and Indonesia’s Mineral Resource Inventory Compilation of Indonesian Metal Occurrences, Mineralized Zones, and Mines Consensus on Exploration: Since the 1980s, exploration has primarily been conducted by foreign exploration and mining companies—preparation time; Not all projects have or will have economic viability—high risk, low success rate; Exploration success is measured and reflected through discoveries—a frequently misunderstood aspect; A comprehensive and sustained approach is needed—based on geological surveys, technology, and trust-building; Exploration/mining is a high-risk, long-term business—requiring commitment; Assurance is needed: long-term regulatory certainty—exploration as a critical aspect of sustainable mining. Resources and Reserves of Major Commodities in Indonesia, 2019-2023 Status of Resources and Reserves of Metals in Indonesia Is the current situation sustainable, or is there potential for growth? Conduct systematic and comprehensive exploration, and keep discovering! Nickel Reserves and Consumption in Indonesia: A Case Study of Nickel in 2020 Conclusion Exploration is a high-risk, long-term business that requires a systematic and comprehensive approach, as well as long-term commitment and perseverance. It is a crucial and urgent pillar for the development of a sustainable downstream industry in mining. Without exploration, there will be no resource reserves, and without reserves, sustainable downstream development cannot be achieved. Indonesia is rich in critical and strategic mineral resources. However, as the resources of existing mines gradually deplete, the acceleration of exploration efforts has become increasingly urgent and important. The government authorizes geological agencies to participate in inventory work during the preliminary investigation phase, providing regional 3G data (geological, geophysical, and geochemical) as well as high-quality regional and local prospect maps, due to the economic value of geological information. To achieve reliable inventory, a comprehensive system for reporting exploration results, resources, and reserves must be established, including the following elements: 1. Competent Persons (CPI, CP) with technical expertise and bound by professional ethics. 2. Reputable reporting guidelines/standards, such as the KCMI guidelines and SNI. 3. A spirit of good mining practices, encompassing requirements for environmental protection, Environment, Social, and Governance (ESG), and Sustainable Development Goals (SDGs).

SMM News on May 26: On May 26, the main silicon metal futures contract continued to decline after the opening bell, hitting a record low of 7,605 yuan/mt during the session. By the end of the daytime trading session, the main contract closed at 7,610 yuan/mt, down 3.67%. In terms of spot prices, silicon metal spot quotes also continued to fall. As of May 26, oxygen-blown #553 silicon (east China) spot quotes fell to the range of 8,500-8,700 yuan/mt, with an average price of 8,600 yuan/mt, also hitting a record low. 》Click to view SMM's spot quotes for silicon products Regarding the reasons behind the continuous decline in silicon metal futures and spot prices, SMM believes it is mainly related to the weak fundamental performance of silicon metal oversupply. According to SMM's supply-demand balance calculations, the surplus of silicon metal in Q1 was around 45,000 mt. From April to May, the market showed a situation of weak supply and demand, with the supply-demand balance shifting towards a slight destocking, but the magnitude was relatively small, having little impact on the supply-demand structure. In June, with the resumption of production and an increase in supply from some capacities on the supply side, the balance may once again shift towards inventory buildup. Specifically, on the supply side, according to SMM's understanding, entering June, a major plant in Xinjiang is expected to resume production. Additionally, as Yunnan and Sichuan enter the rainy season, local silicon enterprises may also resume production one after another. Although it is expected that the operating rates of local enterprises may decrease compared to previous years, the resumption of production by enterprises will still generate a certain increase in supply. Therefore, SMM expects that supply will show an increasing trend in June, July, and August. On the cost side, according to SMM's understanding, the prices of silicon coal and electrodes on the cost side have both decreased compared to the previous period. However, due to the simultaneous decline in silicon metal prices, the losses of silicon enterprises have not been alleviated. As of the end of April 2025, SMM's monthly operating rate for metal silicon fell to 51.23%, which is at a relatively low level in recent years. In contrast to the increase in supply on the supply side, the performance on the demand side has been largely stable. According to SMM's survey last week, the operating rate of polysilicon remained basically stable, with individual silicon powder tender orders being released. Subsequent attention should be paid to the transaction situation of silicon powder. In terms of silicone, the operating rate increased slightly on a WoW basis last week, with some monomer enterprises completing maintenance of their facilities. The industry's operating rate is expected to rise to above 60%. For aluminum-silicon alloy enterprises, the operating rate remained stable last week, with silicon metal being purchased as needed. SMM expects that there will not be many outstanding expected performances on the demand side in the future, with a relatively stable performance and a not-so-large increase in demand. In terms of inventory, due to the sharp decline in silicon metal prices last week, with prices continuously hitting record lows, market transaction sentiment improved somewhat. Therefore, social inventory decreased last week. SMM's statistics show that the total social inventory of silicon metal in major regions was 582,000 mt on May 22, down 17,000 mt WoW. Among them, social general warehouses held 130,000 mt, a decrease of 2,000 mt WoW. Social delivery warehouses held 452,000 mt (including unregistered warrants and spot cargo), an increase of 15,000 mt WoW. However, considering that inventory levels remain near highs in recent years, the brief and relatively small destocking cannot provide significant support to silicon metal prices. 》Click to view SMM database Overall, the current high inventory situation of silicon metal cannot be alleviated temporarily, and the imbalance between supply and demand still exists. The expected increase in supply over the next few months and the mediocre performance on the demand side will lead to a supply surplus in the silicon metal market. Therefore, SMM expects that the momentum for silicon metal prices to stop falling and rebound in the short term is slightly insufficient, and prices are expected to continue fluctuating at lows. Subsequently, attention should be paid to the possibility of production cuts by large plants on the supply side amid the backdrop of silicon metal prices continuing to hit new lows. Institutional Comments Zhongcai Futures stated that, from a fundamental perspective, large plants in Xinjiang may gradually resume production, the operating rate of silicon plants in north-west China remains stable, and some silicon plants in Yunnan have resumed production. Overall, the decline in supply pressure will gradually ease. On the demand side, polysilicon production in May declined slightly MoM. In June, with the resumption of production by some polysilicon plants, production may increase slightly. Some silicone enterprises have resumed production, and their operating rates have increased. The operating rates of secondary aluminum alloy enterprises continue to decline, constrained by insufficient orders and losses. Overall, south-west China is about to enter the rainy season, and some enterprises have resumed production slightly. Recently, the market has heard that large plants in Xinjiang plan to resume production in May and June. Currently, it is difficult for silicon metal demand to pick up. If the resumption of production by large plants materializes, the surplus pressure on silicon metal will further increase. In the short term, silicon metal is expected to maintain a doldrums trend, and attention should be paid to the strategy of shorting on rallies. Industrial Futures stated that the weak trend in silicon metal futures is difficult to reverse, and the overall strategy remains bearish. In terms of silicon metal supply, the number of furnaces in operation has declined, and overall production has weakened slightly. Factories in south-west China have started and stopped operations, while the number of furnaces in operation in Xinjiang has increased. The pressure on the supply side of the market remains relatively large in May. On the demand side, polysilicon enterprises in south-west China have relatively weak willingness to resume production and are expected to start production in July. There may be equal or reduced substitution, which will have a relatively small boosting effect on silicon metal demand. The operating rates in the silicone industry have recovered slightly, with silicone plants in Shandong and Zhejiang completing maintenance and increasing production. Overall, in the short term, demand-driven growth is insufficient, and silicon prices remain under pressure. Subsequently, attention should be paid to the furnace operation situation in south-west China during the rainy season. SDIC Futures stated that, on the supply side, according to SMM, large plants in Xinjiang plan to resume production in June, coupled with the resumption of production by silicon plants in the Sichuan production area, the expected supply volume will further increase. SMM's latest total social inventory stands at a high of 582,000 mt. Against the backdrop of weak main demand, there are signs of a recovery in operating rates across various silicon metal production areas. It is expected that prices will continue to fluctuate at lows in the short term, but the downward trend is difficult to reverse. Xinhu Futures stated that polysilicon prices are under weak pressure and remain stable on a MoM basis. Some enterprises have reduced their operating rates and production, while downstream procurement remains relatively cautious, with ongoing negotiations between buyers and sellers. Silicone prices have stabilized, and the industry has plans to reduce operating rates and refuse to budge on prices. In the short term, the rush to export in downstream industries provides some support for demand, but the current supply and demand situation in the industry still appears loose. Aluminum alloy prices are running smoothly, with average sales performance. The operating rates of primary aluminum alloy production have declined somewhat, while those of secondary aluminum alloy production have remained stable. Industry inventory has decreased on a MoM basis, with a certain decline in warrant volumes, and factory inventories continue to shift to the market. With expectations of growth in industry supply, the risk of inventory buildup in the industry increases, putting continued pressure on silicon prices. In the short term, the futures market is expected to remain in the doldrums, and it is recommended to hold short positions and continue to pay attention to the calendar spread strategy. Guangzhou Futures stated that, from a fundamental perspective, as the rainy season gradually approaches in the southwest region, enthusiasm for production resumptions has decreased compared to previous years, but there is still room for production resumptions. At the same time, the release of some new capacity and potential production resumption plans by large factories in the north are expected to increase supply. Given the persistent weakness in demand, inventory pressure remains significant, which may continue to suppress the rebound potential of the futures market. Strategically, the approach of selling on rallies should be maintained.

The sharp fluctuations in nickel prices in May were mainly due to macro disturbances. After excluding abnormal disturbances in the candlestick, SHFE nickel futures prices mainly showed a slow decline under the dual pressures of "weak fundamentals" and "high inventory".