The record of investor relations activities of Yunnan Copper from June 11 to June 13, 2025, recently released by Yunnan Copper, shows: Regarding the company's basic information, Yunnan Copper introduced: Yunnan Copper was listed on the Shenzhen Stock Exchange in 1998. Its main businesses cover copper exploration, mining, beneficiation, smelting, extraction and processing of precious metals and minor metals, sulfur chemical industry, and trade. It is an important production site for copper, gold, silver, and sulfur chemicals in China. Among them, the capacity for copper cathode is 1.4 million mt. The company is the only publicly listed firm in the copper industry of Chalco and China Copper. In Q1 2025, the company produced 348,900 mt of copper cathode, up 48.15% YoY; 5.80 mt of gold, up 95.63% YoY; 128.48 mt of silver, up 54.31% YoY; 1.3872 million mt of sulphuric acid, up 23.61% YoY; and 13,900 mt of copper in copper concentrates, down 15% YoY. At the end of Q1 2025, the company's total assets were 49.256 billion yuan, with an asset-liability ratio of 62.39%. It achieved an operating revenue of 37.754 billion yuan, up 19.71% YoY; a total profit of 922 million yuan, up 14.11% YoY; a net profit attributable to publicly listed firms of 560 million yuan, up 23.97% YoY; and a basic earnings per share of 0.2793 yuan, up 23.97% YoY. II. Q&A Session 1. In the face of the sluggish processing fee situation this year, what measures has the company taken to respond? Yunnan Copper stated: On the one hand, the company has strategically planned for "digital and intelligent transformation, expanding resources, refining mines, optimizing smelting, solidifying secondary (copper), and meticulously managing minor (metals)", and increased the extraction of urban mines and minor metals. On the other hand, in 2025, the company focuses on the key work of extreme operation, striving to promote high-quality development of the company, and advancing cost reduction with iron determination. After several years of cost reduction, quality improvement, and efficiency enhancement, the costs of the company's main products have certain competitiveness. In addition, the company has increased the profit contribution of by-products such as sulphuric acid, molybdenum, selenium, tellurium, platinum, palladium, and rhenium to enhance the company's comprehensive competitiveness. 2. What is the expected impact of the current smelting processing fees on the company's profits? Yunnan Copper stated: Since this year, long-term contracts and spot TC have seen significant declines compared to last year. The company has offset the adverse impact of the decline in processing fees through measures such as cost reduction, expanding procurement channels, and increasing direct supply of ore from mines. In addition, the company focuses on the layout of secondary copper and minor metals, while continuing to increase the profit contribution of by-products such as sulphuric acid, molybdenum, selenium, tellurium, platinum, palladium, and rhenium to offset the profit pressure caused by the decline in processing fees. 3. What is the approximate sales volume and price of sulphuric acid for the company this year? Yunnan Copper Science & Technology Development Co., Ltd. stated: Sulphuric acid is a by-product of the company's copper smelting process, and its price varies due to regional factors. In Q1 this year, the average price of sulphuric acid in major regions increased significantly YoY. The company actively seized market opportunities, contributing positively to its performance. 4. What efforts has the company made in resource acquisition? Yunnan Copper Science & Technology Development Co., Ltd. stated: The company attaches great importance to the replacement of mine resources and has increased capital investment to carry out comprehensive geological studies of various mining areas and exploration work in the deep and peripheral parts of mines. In 2024, the company invested 65 million yuan in exploration activities and exploration work in the deep and peripheral parts of mines, adding 91,800 mt of inferred and above copper resource metal content, achieving the annual target and realizing annual reserve increases greater than mine output consumption for four consecutive years. In addition, on the basis of managing existing mines and smelters well, the company actively focuses on high-quality copper resource projects. 5. The company announced its intention to issue shares to purchase a 40% stake in Liangshan Mining held by Yunnan Copper Group. What is the current progress, and what advantages will it bring to the company? Yunnan Copper Science & Technology Development Co., Ltd. stated: On May 13, 2025, the company issued the "Announcement on Suspension of Trading for the Purpose of Planning to Issue Shares to Purchase Assets and Raise Supporting Funds", indicating that the company is planning to issue shares to purchase a 40% stake in Liangshan Mining Co., Ltd. held by Yunnan Copper (Group) Co., Ltd. and raise supporting funds. Currently, the company and relevant parties are actively promoting various aspects of this transaction. Liangshan Mining is a copper resource production and smelting enterprise spanning the copper mining, beneficiation, and smelting industries, covering copper, iron, and sulphuric acid products. Liangshan Mining owns high-quality copper resources such as the Lala Copper Mine and Hongnipo Copper Mine, currently capable of producing approximately 13,000 mt of copper concentrates, 119,000 mt of copper anodes, and 400,000 mt of industrial sulphuric acid annually. Liangshan Mining is one of the core copper resource production and smelting bases under China Copper Corporation. As of the end of March 2025, the high-quality copper mine resources it holds, including the Hongnipo Copper Mine, Lala Copper Mine, and Hailin Copper Mine, have a copper metal reserve of 779,700 mt, with an average copper grade of 1.16%, higher than the current average copper grade of 0.38% at Yunnan Copper Science & Technology Development Co., Ltd. In 2024, it successfully bid for and obtained the exploration rights to the Hailin Copper Mine in Huili City, Sichuan Province, with a mining area of 48.34 square kilometers, further enhancing the resource reserve potential of Liangshan Mining. In addition, the copper mining costs of the mines owned by Liangshan Mining are relatively low, demonstrating good cost competitiveness. The sulphuric acid sales prices in south-west China, where Liangshan Mining is located, are also relatively favorable. This time, the company intends to acquire a 40% stake in Liangshan Mining held by its controlling shareholder, Yunnan Copper Group, which can further resolve horizontal competition and ensure the faithful implementation of relevant commitments. Meanwhile, Liangshan Mining boasts significant resource advantages and a solid profitability foundation, with a return on net assets higher than the industry average. Upon completion of the Hongnipo Copper Mine, it will reach a medium-to-large scale among copper mines, further enhancing its profitability. After the injection of Liangshan Mining into Yunnan Copper, it can effectively increase the publicly listed firm's equity copper resource reserves, enhance the overall asset and profit scale as well as the industry position of the publicly listed firm, facilitate the full play of business synergies by the publicly listed firm, strengthen the reserve of high-quality resources and capacity layout, enhance comprehensive strength and core competitiveness, and promote the high-quality development of the publicly listed firm. In addition, this acquisition is a specific measure taken by the company to implement the relevant opinions of the SASAC of the State Council on improving and strengthening the market value management of listed firms controlled by central state-owned enterprises, and to carry out M&A and restructuring activities that are conducive to enhancing the investment value of listed firms, which is conducive to safeguarding the rights and interests of the listed firm and all its shareholders. 6. What is the construction status of the Hongnipo Project of Liangshan Mining? Yunnan Copper stated: The Hongnipo Copper Mine is currently in the construction phase. The total identified ore reserves amount to 41.606 million mt, with an average copper grade of 1.42% and a copper metal content of 592,900 mt. The company will closely monitor the project's construction progress and strictly fulfill its information disclosure obligations in accordance with relevant regulations such as the "SZSE Listing Rules". Please stay tuned for the company's announcements. According to the record of Yunnan Copper's investor relations activities on March 26, 2025 (Interpretation Meeting Series I for the 2024 Annual Report) previously announced by Yunnan Copper: In 2024, Yunnan Copper adhered to the guidance of Party building, continued to strive and forge ahead, comprehensively implemented the decisions and deployments of the company's Party committee and board of directors, overcame unfavourable factors such as a significant decline in TC and the shutdown of the old facilities of Xinan Copper, and maintained a stable operating situation. The company produced 1.206 million mt of copper cathode, 12.71 mt of gold, 348.99 mt of silver, and 4.8286 million mt of sulphuric acid throughout the year. As of year-end 2024, its total assets amounted to 43.557 billion yuan, with an asset-liability ratio of 57.66%. It achieved operating revenue of 178.012 billion yuan, total profit of 2.316 billion yuan, net profit attributable to the publicly listed firm of 1.265 billion yuan, and basic earnings per share of 0.6312 yuan. The company intends to distribute a cash dividend of 2.4 yuan (tax included) for every 10 shares to all shareholders, without converting capital reserves into share capital. What is the construction progress of the relocation project of the Xinan Copper Branch previously announced by the company? Yunnan Copper previously responded during an institutional survey: The electrolysis system of the upgrade and renovation project for the relocation of Xinan Copper was commissioned with load at the end of June 2024, and the pyrometallurgy system entered the load commissioning phase in mid-October 2024, successfully producing copper anodes. As of now, the overall project for the relocation and upgrade of Xinan Copper has been fully completed and is currently in the load commissioning phase. This project is conducive to optimizing the company's smelting layout and production processes, achieving efficient comprehensive utilisation of resources, reducing production costs, and enhancing the company's overall competitiveness, aligning with the company's development needs for green, low-carbon, large-scale, short-process, low-cost, and digital intelligence. When asked about the company's progress in resource acquisition in 2024, Yunnan Copper previously responded during an institutional survey: The company attaches great importance to the replacement of mine resources, increasing capital investment to carry out comprehensive geological studies of various mining areas and exploration work in the deep and peripheral parts of mines. In 2024, the company invested 65 million yuan in exploration, conducting multiple mineral exploration activities and exploration work in the deep and peripheral parts of mines, adding 91,800 mt of inferred and above copper metal resources, achieving the annual target, and achieving annual reserve increases greater than mine production and consumption for four consecutive years. As of the end of 2024, the company held 964 million mt of copper ore resources, with a copper metal content of 3.6509 million mt and an average copper grade of 0.38%. Among them, Diqing Nonferrous held 846 million mt of copper ore resources, with a copper metal content of 2.8037 million mt and an average copper grade of 0.33%. When analyzing the company's core competitiveness, Yunnan Copper mentioned that its good resource reserves are one of its core competitiveness factors: The company attaches great importance to the replacement of mine resources, increasing capital investment to carry out comprehensive geological studies of various mining areas and exploration work in the deep and peripheral parts of mines. The company's main mines, including the Pulang Copper Mine, Dahongshan Copper Mine, and Yangla Copper Mine, are mainly distributed in the Sanjiang Metallogenic Belt, with favourable metallogenic geological conditions and potential for further prospecting. In 2024, the company invested 65 million yuan in exploration, conducting multiple mineral exploration activities and exploration work in the deep and peripheral parts of mines, adding 91,800 mt of inferred and above copper metal resources, achieving the annual target, and achieving annual reserve increases greater than mine production and consumption for four consecutive years. As of the end of 2024, the company held 964 million mt of copper ore resources, with a copper metal content of 3.6509 million mt and an average copper grade of 0.38%. Among them, Diqing Nonferrous held 846 million mt of copper ore resources, with a copper metal content of 2.8037 million mt and an average copper grade of 0.33%. The 2025 financial budget plan disclosed by Yunnan Copper in its 2024 annual report indicates the following production plans for the company's main products in 2025: The company expects to produce 54,600 mt of copper in copper concentrates, 1.52 million mt of copper cathode, 16 mt of gold, 680 mt of silver, and 5.364 million mt of sulphuric acid throughout the year. The investment plan for 2025 is 1.617 billion yuan, covering fixed asset investments, digital projects, and geological exploration projects. During a survey, Yunnan Copper stated that in Q1 this year, the average price of sulphuric acid in major regions increased significantly YoY. The company actively seized market opportunities, contributing positively to its performance. 》Click to view SMM spot copper prices 》Subscribe to view historical SMM spot metal price trends Reviewing the sulphuric acid price trend in Q1, it can be seen that: In Q1, both domestic and overseas demand was strong, leading to an increase in the price of smelting acid. As of March 28 (week), the average weekly price of smelting acid (sulphuric acid) in Yunnan was 780 yuan/mt, up 280 yuan/mt from the average weekly price of 500 yuan/mt on December 27, 2024 (week). From the perspective of the average price increase, the Q1 increase was 56%. According to SMM, domestically, in Q1, sulphuric acid prices were supported by "spring ploughing" and the cost of raw materials. Overseas, demand was relatively strong in Q1, with export prices also rising to a relatively high level in recent years. After reaching a high average annual price of 780 yuan/mt, with the end of spring ploughing, the operating rates of downstream fertilizer enterprises declined, and domestic demand weakened. Domestic sulphuric acid prices began to weaken from mid-to-late April. In early May, influenced by the end of the spring ploughing season, sulphuric acid prices in many parts of the country were still in the process of pulling back, with significant declines particularly in the south China market, while prices in the northern market remained relatively stable overall. In mid-May, domestic sulphuric acid prices showed mixed performance, mainly due to the continuous release of fertilizer export information and the gradual implementation of related policies, leading to a gradual rebound in downstream demand. Sulphuric acid prices in the south stopped falling and stabilized. After entering late May, sulphuric acid prices in many parts of the country rose again. Since June, sulphuric acid prices in Yunnan have remained stable at the beginning of the month. However, recently, influenced by the escalating geopolitical conflicts and the resulting uncertainties, domestic sulphur and sulphuric acid prices have both risen significantly in the past week, with sulphuric acid prices showing a 15.38% increase in the week ending June 13, with its average price (as of the week ending June 13) rising to 600 yuan/mt.

On May 29, at the 2025 SMM (2nd) Rare Earth Industry Forum hosted by SMM Information & Technology Co., Ltd. (SMM), Yang Jiawen, an analyst from SMM's Rare Earth Division, shared insights on the topic of "Interpretation and Outlook of China's Rare Earth Industry Data for 2024-2025." Analysis of Rare Earth Resource Demand in 2024-2025E China's Rare Earth Exports ►SMM Analysis From January to April 2025, China's cumulative rare earth exports reached 18,962.3 mt, up 5.1% YoY. Currently, large magnetic material enterprises have gradually obtained export licenses, and it is expected that the release of rare earth export licenses will further accelerate over time. On May 12, China and the United States reached an agreement, with the US agreeing to suspend the implementation of a 24% tariff for an initial 90-day period, while reserving the right to impose the remaining 10% tariff on Chinese goods specified in Executive Order 14257 in accordance with regulations, and canceling the tariff hikes on these goods from April 8-9. Downstream Demand for Pr-Nd Oxide ►SMM Analysis In 2025, due to restrictions on NdFeB magnetic material exports, the overall downstream demand for Pr-Nd oxide throughout the year will show a downward trend, with May-June being the low point for exports. However, domestic end-user industries still maintain a relatively high demand for Pr-Nd oxide, with annual Pr-Nd demand expected to increase by 5.4% YoY. Currently, the largest end-use sector for domestic Pr-Nd oxide demand remains the NEV industry. The rising global EV penetration rate is driving demand for permanent magnet motors. The amount of NdFeB used per vehicle is approximately 2-5 kg, directly boosting Pr-Nd consumption. Analysis of Rare Earth Resource Supply in 2024-2025E It is expected that rare earth mining quotas will remain flat YoY in 2025 ►SMM Analysis Based on an analysis of current market conditions, SMM expects that rare earth mining quotas in 2025 will reach 270,000 mt, remaining flat YoY. This includes 266,000 mt of rock-type rare earth ore and 19,000 mt of ion-adsorption type rare earth ore. Smelting and separation quotas will reach 340,000 mt, up 34% YoY. From the perspective of smelting and separation, the "Interim Measures for the Administration of Total Volume Control of Rare Earth Mining and Smelting and Separation (Draft for Public Comment)" clearly states that organizations and individuals without rare earth quotas are prohibited from engaging in rare earth mining and smelting and separation production activities. This means that the smelting and separation of imported ore will be included in the quota management scope. Rare Earth Metal Ore Imports in 2025 May Decline Significantly YoY ►SMM Analysis From January to April 2025, China's rare earth metal ore imports amounted to 17,614 mt, down 5% YoY. In April, imports reached 3,763 mt, up 18% MoM but down 24% YoY. In mid-to-late April, MP announced that it would halt rare earth ore exports to China, yet 3,744 mt of rare earth metal ore had already entered China that month. Almost all of China's imported rare earth metal ore originates from MP's mine in the US. As the US develops its own rare earth industry chain, rare earth metal ore imports from the US declined to 55,000 mt in 2024. Based on the current expansion plans in the US, this volume is expected to further decrease to 43,000 mt in 2025. Unlisted rare earth oxide imports in China resume growth in 2025 ►SMM Analysis From January to April 2025, China's unlisted rare earth oxide imports reached approximately 12,849 mt, marking a 30% YoY decline. In April alone, imports were about 6,536 mt, up roughly 4% YoY and approximately 204% MoM. In 2025, 70% of China's unlisted rare earth oxide imports originated from Myanmar. Due to local political and weather factors, the stability of these rare earth mineral resource imports is uncertain, and related news can cause fluctuations in domestic oxide prices. China's mixed rare earth carbonate imports see significant YoY growth in 2025 ►SMM Analysis From January to April 2025, China imported 3,412 mt of mixed rare earth carbonate, a 30% YoY increase. In April, imports were 1,144 mt, down 26% MoM but up 173% YoY. Due to policy advancements in Malaysia and the launch of new rare earth mining projects, mixed rare earth carbonate imports are expected to increase significantly YoY in 2025. It is reported that the Malaysian authorities aim for the rare earth industry to contribute approximately US$2.2 billion to the country's GDP by 2025 and attract investments from China and the US to jointly establish an integrated rare earth industry chain. China's thorium ore sand imports see a significant YoY increase in 2025 ►SMM Analysis From January to April 2025, cumulative imports of thorium ore sand and its concentrates reached 48,501 mt, up only 1% YoY. Imports in the same period amounted to 21,366 mt, a 146% YoY increase, primarily sourced from South Africa. It is understood that due to the reduction in MP's mine output in the US, some companies have opted to import more monazite to fill the gap in light rare earth ore supply. It is projected that China's total thorium ore sand imports will reach 90,171 mt in 2025, an 86% YoY increase. Pr-Nd supply slightly decreases in 2025, with a notable increase in the proportion of recycled output Supply-demand balance and prices of Pr-Nd oxide from 2024 to 2025E The supply-demand pattern of Pr-Nd oxide is expected to remain relatively balanced from 2025 to 2027 This analysis combines data on China's national Pr-Nd oxide supply, national Pr-Nd oxide demand, and the supply-demand balance of Pr-Nd oxide in China from 2021 to 2027E. In 2025, the overall supply of Pr-Nd oxide is expected to be tight, with a supply gap of approximately 3,000 mt. In 2025, the overall supply of Pr-Nd oxide is expected to be tight. From January to February, during the Chinese New Year period, the operating rate of end-use industries is low, and downstream demand is relatively weak during this time. Price Review and Forecast of Pr-Nd Oxide and Pr-Nd Alloy from 2025 to 2026 ►SMM Analysis Considering the above, in 2025, the final year of the "14th Five-Year Plan," the development of various downstream sectors in the rare earth industry is expected to accelerate, with humanoid robots and aircraft expected to become new growth points for downstream demand. Rare earth mining quotas are also expected to increase slightly to meet the growing downstream demand for rare earths. Guided by national policies, the domestic supply of rare earth raw materials is expected to become more standardized and stable, and the supply-demand pattern of the entire rare earth industry is expected to become more balanced. It is anticipated that rare earth prices will generally fluctuate upward in 2025. 》Click to view the special report on the 2025 SMM (2nd) Rare Earth Industry Forum

[SMM: Rare Earth Prices May Fluctuate Upward Overall in 2025, with Pr-Nd Oxide Supply Expected to Remain Tight] Yang Jiawen, an analyst from the SMM Rare Earth Division, shared insights on the theme of "Interpretation and Outlook of China's Rare Earth Industry Data for 2024-2025". Taking the above factors into account, 2025, as the final year of the "14th Five-Year Plan", is expected to witness more rapid development in various downstream sectors of rare earths. Humanoid robots and aircraft are anticipated to become new growth points for downstream demand in rare earths. Rare earth mining quotas are also expected to continue increasing slightly to meet the growing downstream demand for rare earths. Guided by national policies, the domestic supply of rare earth raw materials will become more standardized and stable, and the supply-demand pattern of the entire rare earth industry will be more balanced. It is expected that rare earth prices will generally hold up well with a fluctuating upward trend in 2025.

SMM May 23 News: Recently, Zhuzhou Smelter Group Co., Ltd. released its performance announcements for Q1 2025 and the full year of 2024. In Q1 2025, the company achieved a total revenue of 4.803 billion yuan, up 8.5% YoY. Net profit attributable to shareholders of the publicly listed firm reached 277 million yuan, up 74.07% YoY. Regarding the reasons for the YoY increase in Q1 performance, Zhuzhou Smelter Group stated that precious metals, represented by gold, fluctuated at highs and continuously hit new highs in Q1 this year, bringing a profit-boosting effect to the company. Currently, the global precious metals market is influenced by expectations of interest rate cuts in developed economies, geopolitical risks, and growth in industrial demand, leading to a sustained upward trend in the prices of gold, silver, and other precious metals. The company significantly improved its unit output value and profit contribution by extracting precious metals through mining and refining externally purchased raw materials. According to public information, Zhuzhou Smelter Group is mainly engaged in the smelting, processing, and sales of zinc, lead, and their alloys, while also involved in comprehensive recovery of rare and precious metals, R&D of new materials, and other fields. The company's main smelting products include zinc ingots, hot-dip galvanizing alloys, foundry zinc alloys, lead ingots, lead-based alloys, gold, silver, etc. By-products include sulphuric acid, copper matte, antimony white powder, etc. Mineral products include copper concentrates and gold-sulfur concentrates, as well as minor products such as bismuth ingots, tellurium ingots, cadmium ingots, and indium ingots. On the evening of April 10, Zhuzhou Smelter Group released its 2024 annual report. According to the announcement, in 2024, the company achieved a total operating revenue of approximately 19.759 billion yuan, up 1.82% YoY. Net profit attributable to shareholders of the publicly listed firm, excluding non-recurring gains and losses, reached approximately 730 million yuan, up 29.71% YoY. The net cash flow generated from operating activities was 1.107 billion yuan, up 60.32% YoY, indicating high operational quality. Zhuzhou Smelter Group stated that the company's operating performance demonstrated strong resilience. Despite the continued sluggishness of processing fees in the market, the smelting segment achieved the annual profit target, while the mining segment achieved increased profits and revenue. Production volumes of copper, lead, and zinc concentrates, gold, and other products all reached new highs, with significant growth in total annual profit and net profit. According to the annual report data, in 2024, Zhuzhou Smelter Group produced approximately 640,000 mt of zinc and zinc alloys and approximately 640,000 mt of sulphuric acid, and completed the production of approximately 100,000 mt of lead and lead alloys, remaining in the first tier of domestic lead and zinc production. Meanwhile, the company achieved a gold production of 3,710.30 kg, up 8.05% YoY, and gold sales of 4,074.96 kg, up 36.42% YoY. Taking the lead and zinc industry as an example, reviewing the market situation over the past year, the supply of lead and zinc concentrates was tight in 2024, with processing fees for lead and zinc concentrates falling repeatedly throughout the year, all dropping below historical lows. According to SMM historical price data, domestic zinc concentrate TCs plummeted to 1,450 yuan/mt (metal content) on August 2, 2024, while imported zinc concentrate TCs fell to -$40/dmt on August 16, 2024, both hitting record lows. In 2024, due to ore shortages and narrowing profit margins, domestic smelters even called for "joint production cuts." Regarding lead concentrate TCs, they also continued to decline amid tight lead concentrate supply in the market. On July 26, 2024, the average domestic lead concentrate TC fell to 550 yuan/mt (metal content), hitting a record low. The lowest imported lead concentrate TC reached -$50/dmt on the same day, also marking a historic low for negative TCs. Even in July 2024, due to insufficient lead concentrate supply, scrap batteries temporarily became a common raw material for secondary lead smelters and some primary lead smelters. The lead paste extracted from dismantled scrap batteries by primary lead smelters became a major source of raw material supplementation. Against this backdrop, Zhuzhou Smelter Group still achieved its annual profit targets on the smelting side, increased profits and revenue on the mining side, and set new production records for copper, lead, and zinc concentrates, as well as gold. Its risk-resistance capabilities are beyond doubt. As a byproduct of lead-zinc ore smelting, gold performed exceptionally well in 2024, with precious metal prices surging strongly throughout the year. International gold and silver prices repeatedly hit record highs. Driven by stronger-than-expected US economic performance and the market's "Trump trade," the US dollar index surged after Trump's election victory, while the RMB depreciated sharply against the US dollar amid potential tariff pressures. Overall, gold and silver prices underperformed overseas markets during the year, with SHFE gold rising approximately 30% and SHFE silver increasing around 32%. However, after entering 2025, the tight supply of zinc concentrates has significantly eased. As of May 16, domestic zinc concentrate TCs have rebounded to 3,300-3,700 yuan/mt (metal content), with an average price of 3,500 yuan/mt (metal content). This represents a 2,050 yuan/mt (metal content) increase from the previous historic low of 1,450 yuan/mt (metal content), marking a 141.38% surge. 》Click to view SMM spot quotes for zinc products In fact, as early as October 2024, with the rebound in SMM's seven-port inventory and a slight increase in domestic imported ore circulation, domestic zinc concentrate supply received some supplementation. Moreover, zinc prices remained high in October, driving up mine profits. Coupled with gradual improvements in raw material inventories at some domestic smelters, the market sentiment was strongly bullish. Based on these factors, some smelters negotiated with mines to raise domestic TCs, leading to a slight rebound in TCs across multiple regions in China in October. After that, domestic smelters continued to operate at low capacity utilization rates, and the days of raw material inventories at smelters continued to recover. In December, domestic zinc concentrate TCs increased slightly on a MoM basis, reversing the previous trend of consecutive declines. In January 2025, the pressure on smelters' raw materials continued to ease. Coupled with the sustained high zinc prices in Q4 2024, smelters were able to negotiate with mines to increase zinc concentrate TCs, leading to a significant increase in domestic zinc concentrate TCs in January. While domestic TCs were rising, smelters showed low purchase willingness for imported zinc ore TCs, which also prompted a noticeable rebound in imported zinc ore TCs. In February, domestic zinc concentrate TCs continued to rise, mainly due to the Chinese New Year holiday, during which some enterprises conducted maintenance and took holidays, leading to a decrease in overall production. This boosted the continuous rebound in both domestic and imported TCs. Additionally, smelters continued to refuse to budge on prices to achieve profitability. The days of raw material inventories at domestic smelters remained at around 28 days, indicating a relatively high level of raw material stocking. Coupled with the intermittent opening of the import window, the port arrivals of zinc concentrates increased, and port inventories once surged to over 400,000 mt, replenishing smelters' raw material inventories and maintaining them at a high level overall. Under the combined influence of these factors, the supply of zinc concentrates in February was loose, and TCs continued to rise. Entering March, driven by the supplement of imported ore and the expectation of the gradual resumption of production at domestic mines, domestic smelters continued to raise their TCs quotes. As of March 28, domestic zinc concentrate TCs increased to 3,400 yuan/mt (metal content). In the past two months, the increase in domestic zinc concentrate TCs has significantly slowed down. SMM learned that although some smelters will conduct maintenance in May and smelters continue to refuse to budge on prices, considering profit factors, miners have a strong willingness to keep zinc concentrate TCs flat in May. Under continuous negotiations between the two parties, the increase in zinc concentrate TCs in May compared to April is limited. Looking ahead, despite the significant increase in overseas zinc mine output this year, there is no obvious increase in domestic zinc mine output except for Huoshaoyun. Moreover, with improved profits, smelters are highly motivated to produce, and new smelters put into operation in Q2 in China are also gradually ramping up production. With both supply and demand increasing, there may be limited room for future increases in domestic zinc concentrate TCs, and it is necessary to continuously monitor the subsequent inflow of imported zinc ore. In addition, the announcement also mentioned that the company has a lead-zinc-copper mining and beneficiation capacity of 860,000 mt, with relatively high lead-zinc geological grades, making it a well-endowed mine in China with a certain advantageous position. From the perspective of resource value, lead-zinc mines are rich in gold and silver, with high value per ton of ore. According to the data from the annual reserve report of the Shuikoushan Lead-Zinc Mine mining right, the Kangjiawan mining area under the Shuikoushan Lead-Zinc Mine mining right has a reserved resource volume of 11.807 million mt and a reserve volume of 4.953 million mt, placing its overall mine value among the top in the country. The company has a production capacity of 860,000 mt for lead-zinc-copper mining and beneficiation, 680,000 mt for zinc products, and 100,000 mt for lead products. It also comprehensively recovers various rare and precious metals such as copper, gold, silver, bismuth, indium, cadmium, and tellurium. Relying on the copper-lead-zinc industrial base, it has significant industrial synergy advantages. In 2025, the company aims to produce 643,000 mt of zinc and zinc alloy products, 103,500 mt of lead and lead alloy products, 860,000 mt of raw ore from mines, 3.8 mt of gold, and 295 mt of silver. In terms of mines, the company holds the mining rights for the Shuikoushan Lead-Zinc Mine and the Baifang Copper Mine, operating three mines (the Kangjiawan Mine and the Lead-Zinc Mine both fall under the Shuikoushan Lead-Zinc Mine mining rights) and one beneficiation plant, with an annual raw ore mining and beneficiation capacity of 860,000 mt. In zinc smelting, it has a zinc smelting capacity of 300,000 mt, a deep-processing capacity of 380,000 mt for zinc-based alloys, and a total zinc product capacity of 680,000 mt, ranking among the top in the country. In lead smelting, it operates two lead and precious metal smelters, with a production capacity of 100,000 mt for lead smelting, 4,500 kg of gold, and 470 mt of silver.

After a panic-driven plunge in early April, SHFE copper quickly rebounded, reclaiming the 75,000-point level from an 8-month low in just one trading session, and continued to rise thereafter, filling the significant gap above. Recently, domestic spot copper concentrate TCs have continued to decline, and news of copper mine suspensions in Peru has emerged. Will the tight ore supply further support copper prices? Over the past two weeks, the destocking of domestic refined copper social inventories has accelerated. What are the main factors driving this? How long will the destocking trend last? Considering the current macro and supply-demand dynamics, can the rebound in copper futures be sustained? Webstock Inc.'s [Institutional Diagnosis] section invites SHFE copper futures experts to provide in-depth analysis. [Institutional Diagnosis]: Recently, domestic spot copper concentrate TCs have continued to decline, and news of copper mine suspensions in Peru has emerged. Will the tight ore supply further support copper prices? Wang Yunfei, Head of Investment Consulting Department at Shanjin Futures: Ore supply has recently experienced another phase of tightness. Currently, we believe the main impact remains at the sentiment level, as the effect of specific mine production cuts on the full year still requires further comprehensive observation of supply conditions. From our perspective, against the backdrop of high smelting output, we remain cautious about the supply disruptions caused by the mine level. Overall, we consider the reliability of this support to be unstable. Xiao Jing, Senior Researcher at SDIC Futures Research Institute: In Q1 and throughout April, the supply side has felt the impact of the mine-smelting game, with copper concentrate TCs deepening in negative territory to -$30, continuously providing bullish trading themes for the market. Since March, there have been numerous unexpected incidents at both the mine and smelter levels. In addition to the recent suspension of operations at Peru's Antamina copper mine due to an accident, overseas smelters such as Glencore's Chilean smelter and Southern Mexico Group's smelter have also reported production cuts or suspensions. The low TCs reality, along with themes such as early maintenance or sudden interruptions at smelters like Tongling Nonferrous, has been consistently reflected in the high average copper prices in Q1. However, the extremely low TCs have not led to effective production cuts at smelters. Domestically, for example, against the backdrop of sulfuric acid, by-products, and recycled copper scrap supplementation, SMM's domestic refined copper production in Q1 increased by 9.4%, adding over 270,000 mt, nearing 3.2 million mt. Meanwhile, statistical agencies generally revised down the MoM decline in domestic copper production in April. From a smelter production perspective, the impact of extremely low TCs on production in the first four months has been quite limited. Currently, it is expected that in May and June, as the peak season ends, consumption cools, and average prices decline, if TCs still show no signs of bottoming out, and imported copper scrap raw materials remain tight, smelters may take more proactive measures in maintenance and production cuts. This year, the cumulative growth rate of domestic smelter supply output will likely follow a similar trend to last year, gradually converging. We believe the price support from mine or smelting themes will weaken. Firstly, the impact of the suspension of Peru's major mine on actual production is relatively limited, as the ore processing system may continue to operate. Secondly, as we enter mid-year, the outline of the full-year copper concentrate supply will become more certain after dynamic adjustments. Currently, major copper-producing countries such as Chile, Peru, Congo, and Zambia have clear incremental targets for 2025. As domestic peak season consumption comes to an end, and the global economic growth outlook is significantly disrupted by US tariffs, the market will shift more pricing components to demand in May and June. Liu Chao, Senior Nonferrous Metals Researcher at BOC International Futures Research and Consulting Department: Peru's Antamina mine produced 435,400 mt of copper in 2023. The mine is jointly owned by Glencore, BHP, Teck Resources, and Mitsubishi Group, with a copper grade of 1.23% and a zinc grade of 1.03%. Due to the mine's significant global share of metal production, the sudden accident has caused some disruption to copper and zinc supply, driving copper prices higher again. The duration of the mine's suspension has not yet been finalized, and the short-term impact continues. In the long term, copper concentrate TCs continue to decline, and mine supply tightness is intensifying. Current copper concentrate TCs are significantly lower than the full-year long-term contract TCs, and the suspension of copper mines further strengthens the expectation of tight supply, supporting copper prices. Zhong Yuan, Investment Consulting Department at Anliang Futures: If we view TCs as an asset price, similar to stock prices that accelerate sharply before ending, the continuous decline of TCs in negative territory in 2025 is the final stage of the bullwhip effect transmission in the industry chain. At this stage, positive news for copper mines may reinforce the downward trend of TCs. Conversely, if positive news emerges and TCs do not fall, it may signal a bottoming out. [Institutional Diagnosis]: Over the past two weeks, the destocking of domestic refined copper social inventories has accelerated. What are the main factors driving this? How long will the destocking trend last? Wang Yunfei, Head of Investment Consulting Department at Shanjin Futures: We believe the recent continuous decline in refined copper inventories is mainly due to two reasons: First, the transfer of inventories under the tariff backdrop. From the inventory distribution, the proportion of domestic inventories in the global total has been declining recently, while US copper inventories have risen significantly. The transfer of inventories has undoubtedly accelerated the decline in domestic inventories. Second, the front-loading effect of domestic power copper consumption. Although the planned growth rate of power investment in 2025 appears to slow compared to 2024, data up to Q1 shows that the actual growth rate is significantly better than the same period in 2024, thus providing a significant boost to copper demand. The current destocking trend may slow down in the latter part of Q2. On one hand, the rush export effect brought by tariffs will fade, and overseas inventories will gradually face demand tests. On the other hand, the actual demand growth in China, especially in the power sector, may gradually slow down, and the off-season effect is expected to cool overall demand. Xiao Jing, Senior Researcher at SDIC Futures Research Institute: The reciprocal tariff turmoil had a significant systemic impact on LME copper during the Qingming Festival holiday, with substantial losses for overseas long-positioned funds. In contrast, the early-month copper price slide provided a favorable opportunity for domestic mid- and downstream players to restock. After SHFE copper quickly stabilized near 71,000, the price rebound was mainly supported by peak season consumption. During this period, spot price adjustments led the gains, and the Shanghai-Guangdong premium widened. By late April, SMM's domestic social inventories had also accelerated their decline to below 200,000 mt, close to the destocking levels of 2022 and 2023. Strong domestic consumption is mainly due to: 1) In response to Trump policy risks, the output inertia of various manufacturing sectors has been strong since Q4 last year, and most key tracked industrial products maintained high output and export growth rates in Q1; 2) This year's power grid investment has been strong, with the sector's investment growth rate reaching 24% in Q1, significantly boosting copper wire and cable demand; 3) Under the expectation of US tariffs on the copper industry, US copper prices hit highs, and the US-LME price spread widened, continuously attracting cross-border transfers of copper spot logistics, including from China. Under multiple factors, this year's peak season copper consumption has been strong. Looking ahead, the relatively resilient domestic sector remains the power grid, while other electromechanical products, as the largest export area to the US, face higher uncertainty. In March, the convergence of home appliance product growth rates was already observed, which will negatively impact copper consumption. We initially believe destocking may continue until mid-May, around the 150,000 mt level. Liu Chao, Senior Nonferrous Metals Researcher at BOC International Futures Research and Consulting Department: The decline in copper concentrate inventories is closely related to supply in South America. During the domestic summer, which is winter in South America, copper concentrate production declines, and domestic imported ore port arrivals decrease, leading to a drop in domestic ore inventories. It is expected that domestic ore shortages will persist until late August, when rising temperatures in South America will increase copper mine operating rates, boosting domestic ore supply. Zhong Yuan, Investment Consulting Department at Anliang Futures: Currently in the traditional peak season, periodic destocking is normal, but the statistics I have seen do not show a significant or accelerated destocking trend. Based on experience, destocking will likely continue at least until the end of the 2505 contract. [Institutional Diagnosis]: Currently, copper prices are still in a corrective rebound phase. Considering the current macro and supply-demand dynamics, can the rebound in copper futures be sustained? Wang Yunfei, Head of Investment Consulting Department at Shanjin Futures: From a macro perspective, there are no positive factors on the demand side. The slow progress of US tariff negotiations and the impact of rate hikes on demand will gradually manifest. Domestically, although policies are in place, their implementation remains highly restrained, and we believe this approach will not change in the short term, so a surge in demand is unlikely. On the supply side, although ore supply is tight, smelting output remains high. As long as there is no significant downward adjustment in annual mine output expectations, the full-year refined copper supply-demand balance is unlikely to show a deficit. Therefore, we conclude that copper prices have largely entered a phase of considerable fluctuation, with current prices at the upper end of the range, making further rebound unlikely. Xiao Jing, Senior Researcher at SDIC Futures Research Institute: SHFE copper extended its gains this week, but the most-traded contract has not yet effectively filled the Qingming Festival gap, indicating significant pressure at the gap level. The SHFE copper rebound is largely complete, and the market will likely return to fluctuation, while remaining vigilant against sudden statements from the US government. The impact of systemic shocks has shifted from short-term bursts to medium-term pressure, suggesting a need for greater imagination regarding overseas uncertainties. Copper remains an industrial metal, and with a shift in consumption expectations, it is more likely to be configured as a risk asset. Liu Chao, Senior Nonferrous Metals Researcher at BOC International Futures Research and Consulting Department: Current macro tariff wars and trade barriers have led to a downward revision of global economic growth, reducing overall demand. The pullback in the US dollar and China's policy front-loading have strengthened demand expectations, amplifying market uncertainty. On the fundamental side, US-China tariff increases have significantly impacted imported copper scrap, reducing domestic copper scrap supply. Supply shortages and insufficient demand have made the strong fluctuation characteristics of copper prices evident, and this structure is expected to continue. Zhong Yuan, Investment Consulting Department at Anliang Futures: For the full year of 2025, copper prices are likely to fluctuate considerably, with anything above 80,000 defined as a bubble! Therefore, after copper prices rebound to key levels, the momentum may be hindered!

Domestic TCs remained stable, but import offers increased. Weekly zinc concentrate TCs held steady, with the SMM Zn50 domestic weekly TC average unchanged at 3,450 yuan/mt (metal content) WoW, and the SMM Zn50 import weekly TC average unchanged at $35/dmt WoW.

[Boliden Completes Acquisition of Two European Mines from Lundin Mining] On April 16, Boliden announced the completion of its acquisition of two Lundin Mining assets, the Neves-Corvo copper-zinc mine in Portugal and the Zinkgruvan zinc mine in Sweden. The transaction, valued at a total consideration of USD 1.4 billion, was finalized and paid on April 16, 2025. Following the completion of all necessary regulatory approvals, both mines have now officially been integrated into the Boliden Group as of the same date. According to SMM sources, Boliden has already begun receiving output from both mines. There has been personnel transition activity between Zinkgruvan and Boliden's mines, and the handover is reported to be proceeding smoothly, with no significant impact on mine output expected during the transition period. In 2024, Zinkgruvan produced approximately 82 kt of zinc in concentrate, 31 kt of lead in concentrate, and 4 kt of copper in concentrate. Neves-Corvo produced around 110 kt of zinc in concentrate, 64 kt of lead in concentrate, and 28 kt of copper in concentrate. According to SMM estimates, with the restart of the Tara mine and the addition of these two new operations, Boliden's self-owned zinc in concentrate output could reach 440kt in 2025, with lead output reaching 100 kt - both representing near doubling year-over-year increases, and significantly improve feedstock self-sufficiency for its smelters. Copper concentrate production will also see a notable boost.

【4.3 Morning Meeting Minutes】 The average price of SMM 8-12% high-grade NPI was 1,030.5 yuan/mtu (ex-factory, tax included), unchanged from the previous working day. Supply side, domestically, the replenishment of nickel ore from the Philippines remains weak, smelter profits have slightly recovered, and production growth is limited. In Indonesia, the ramp-up of nickel mines still requires time to materialize, with current premiums at high levels. Although there is additional ramp-up production, capacity release is relatively limited, and the supply of Indonesian NPI has slightly increased.

【4.2 Morning Meeting Minutes】Recently, the production of MHP has fallen short of expectations, and the supply-demand gap is expected to further widen, leading to a continued increase in the MHP price coefficient. Nevertheless, the production cost of refined nickel may limit the extent of its rise. Supply side, some nickel salt smelters have already stopped quoting prices due to critically low inventories.

【4.1 Morning Meeting Minutes】Current market transaction prices: For pyrometallurgical ore, the weekly price of SMM's Indonesia local ore at 1.6% is $51/wmt. For hydrometallurgical ore, the weekly price of SMM's Indonesia local ore at 1.2% is $26/wmt. Indonesia's pyrometallurgical nickel ore may see another price increase in April, with a premium of $23-25 currently under negotiation for April. The CIF price of hydrometallurgical ore may remain temporarily stable but fluctuate downward.