PT Indonesia Morowali Industrial Park (IMIP) has reinforced its sustainability framework by integrating advanced Continuous Emission Monitoring Systems (CEMS) and wastewater tracking (Sispek) directly with Indonesia’s Ministry of Environment (KLH) servers. As of early 2026, 37 tenants have completed independent external safety audits (SMK3) to ensure high operational standards. Beyond environmental compliance, IMIP is scaling up human capital investment through vocational partnerships with top universities like ITB and UGM, alongside international training programs in China, positioning the park as a benchmark for responsible and tech-driven nickel downstreaming.

On March 31, 2026, the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released China’s PMI. In response, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics, provided an interpretation. In March, the manufacturing PMI, the non-manufacturing business activity index, and the composite PMI output index all returned to expansion territory, registering 50.4%, 50.1%, and 50.5%, respectively, up 1.4, 0.6, and 1 percentage points MoM, indicating a rebound in the level of economic prosperity in China. China PMI Performance in March 2026 I. Performance of China’s Manufacturing PMI In March, the manufacturing PMI stood at 50.4%, up 1.4 percentage points MoM and above the threshold, indicating a rebound in the prosperity level of the manufacturing sector. By enterprise size, the PMI of large enterprises was 51.6%, up 0.1 percentage points MoM and above the threshold; the PMI of medium-sized and small enterprises was 49.0% and 49.3%, respectively, up 1.5 and 4.5 percentage points MoM, but still below the threshold. By sub-index, among the five sub-indices comprising the manufacturing PMI, the production index and the new orders index were both above the threshold, while the raw material inventory index, the employment index, and the supplier delivery time index were all below the threshold. The production index was 51.4%, up 1.8 percentage points MoM, indicating faster manufacturing production activity. The new orders index was 51.6%, up 3.0 percentage points MoM, indicating a marked improvement in the prosperity level of market demand in the manufacturing sector. The raw material inventory index was 47.7%, up 0.2 percentage points MoM, indicating that the decline in inventories of major raw materials in the manufacturing sector narrowed somewhat. The employment index was 48.6%, up 0.6 percentage points MoM, indicating a rebound in the employment climate of manufacturing enterprises. The supplier delivery time index was 49.5%, up 0.4 percentage points MoM and below the threshold, indicating that delivery times of raw material suppliers in the manufacturing sector lengthened compared with the previous month. II. Performance of China’s Non-Manufacturing PMI In March, the non-manufacturing business activity index was 50.1%, up 0.6 percentage points MoM and above the threshold, indicating some improvement in the prosperity level of the non-manufacturing sector. By industry, the business activity index of the construction sector was 49.3%, up 1.1 percentage points MoM; the business activity index of the services sector was 50.2%, up 0.5 percentage points MoM. From the perspective of the services sector, the business activity index for industries such as railway transportation, telecommunications, radio, television and satellite transmission services, monetary and financial services, and insurance all remained in the relatively high expansion territory above 55.0%; the business activity index for industries such as retail, accommodation, catering, and real estate all stayed below the critical point. The new orders index was 45.0%, down 0.2 percentage points from the previous month, indicating that market demand in the non-manufacturing sector pulled back somewhat. By industry, the new orders index for construction was 43.5%, up 1.3 percentage points from the previous month; the new orders index for services was 45.3%, down 0.4 percentage points from the previous month. The input price index was 52.3%, up 1.4 percentage points from the previous month, indicating that the overall price level of inputs used in the operating activities of non-manufacturing enterprises continued to rise. By industry, the input price index for construction was 52.7%, up 3.6 percentage points from the previous month; the input price index for services was 52.2%, up 1.0 percentage points from the previous month. The selling price index was 49.9%, up 1.1 percentage points from the previous month, but still below the critical point, indicating that the decline in the overall selling price level in the non-manufacturing sector narrowed. By industry, the selling price index for construction was 49.3%, up 1.7 percentage points from the previous month; the selling price index for services was 50.0%, up 1.0 percentage points from the previous month. The employment index was 45.2%, down 0.8 percentage points from the previous month, indicating that employment conditions among non-manufacturing enterprises pulled back. By industry, the employment index for construction was 39.1%, down 3.4 percentage points from the previous month; the employment index for services was 46.2%, down 0.4 percentage points from the previous month. The business activity expectations index was 54.2%, down 0.8 percentage points from the previous month, but still above the critical point, indicating that non-manufacturing enterprises remained optimistic about market development. By industry, the business activity expectations index for construction was 50.5%, down 0.4 percentage points from the previous month; the business activity expectations index for services was 54.8%, down 1.0 percentage points from the previous month. III. Performance of China’s Composite PMI Output Index In March, the composite PMI output index was 50.5%, up 1.0 percentage points from the previous month and above the critical point, indicating that the overall business activity level of production and operations among enterprises in China improved. China’s PMI Returned to Expansion Territory in March — Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics, Interprets China’s PMI for March 2026 On March 31, 2026, the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released China’s PMI. In this regard, Huo Lihui, Chief Statistician of the Service Survey Center of the National Bureau of Statistics, provided an interpretation. In March, the manufacturing PMI, the non-manufacturing business activity index, and the composite PMI output index all returned to expansion territory, coming in at 50.4%, 50.1%, and 50.5%, respectively, up 1.4, 0.6, and 1.0 percentage points from the previous month, indicating a rebound in the overall economic prosperity level in China. I. The Manufacturing PMI Rose to Expansion Territory In March, as enterprises accelerated the resumption of work and production after the Chinese New Year and market activity increased, the manufacturing PMI came in at 50.4%, returning to expansion territory. (I) Production and demand expanded simultaneously. The production index and the new orders index stood at 51.4% and 51.6%, respectively, up 1.8 and 3.0 percentage points from the previous month, and both rose into expansion territory. Manufacturing enterprises stepped up production activities, and market demand improved markedly. By industry, the production index and new orders index for such industries as agricultural and sideline food processing, non-ferrous metal smelting and rolling processing were both above 55.0%, and production and demand in related enterprises were released relatively quickly; the two indices for such industries as textile and apparel, chemical fibers, and rubber and plastic products remained below the critical point, with relatively weak market activity. Driven by the recovery in production and demand, enterprises’ purchase willingness strengthened, and the purchasing volume index was 50.9%, up 2.7 percentage points from the previous month. (II) The PMI of large, medium-sized, and small enterprises all rebounded. The PMI of large enterprises was 51.6%, up 0.1 percentage points from the previous month, with the prosperity level rising steadily; the PMI of medium-sized and small enterprises was 49.0% and 49.3%, respectively, up 1.5 and 4.5 percentage points from the previous month, with the prosperity level improving significantly. (III) The three key industries expanded relatively quickly. The PMI of high-tech manufacturing was 52.1%, up 0.6 percentage points from the previous month, and remained above the critical point for 14 consecutive months, indicating continued positive development momentum in the industry; the PMI of equipment manufacturing and the consumer goods industry was 51.5% and 50.8%, respectively, up 1.7 and 2.0 percentage points from the previous month, and both rose to expansion territory; the PMI of high energy-consuming industries was 48.9%, up 1.1 percentage points from the previous month, with the prosperity level showing some rebound. (IV) Price indices rebounded significantly. Affected by factors such as the continued rise in prices of some bulk commodities in the recent period and the acceleration of enterprise procurement activities, the purchase price index of major raw materials and the ex-factory price index stood at 63.9% and 55.4%, respectively, up 9.1 and 4.8 percentage points from the previous month, and the overall price level in the manufacturing market rebounded markedly. By industry, the two price indices for such industries as petroleum, coal and other fuel processing, and chemical raw materials and chemical products were both above 70.0%, and the overall level of purchase and sales prices in related industries rose significantly. (5) Market expectations remained stable with a slight increase. The index of expectations for production and business activities was 53.4%, up 0.2 percentage points MoM, indicating that manufacturing enterprises became somewhat more confident about near-term market developments. By industry, the index of expectations for production and business activities in sectors such as special-purpose equipment, automobiles, railway, shipbuilding, aerospace equipment, and other industries remained in a relatively high expansion range above 56.0%, and the related enterprises were more optimistic about future industry development. The survey results also showed that, affected by factors such as the current geopolitical conflicts in the Middle East, prices of related raw materials such as petroleum and chemicals rose sharply. Coupled with higher logistics freight rates, the proportion of enterprises reporting high raw material costs and high logistics costs both increased MoM this month. II. The Non-Manufacturing Business Activity Index Rebounded In March, the non-manufacturing business activity index was 50.1%, up 0.6 percentage points MoM, indicating an improvement in the prosperity level of the non-manufacturing sector. (1) The service sector business activity index rose above the threshold. The service sector business activity index was 50.2%, up 0.5 percentage points MoM. By industry, the business activity indexes for railway transportation, telecommunications, broadcasting, television and satellite transmission services, monetary and financial services, and insurance all remained in a relatively high expansion range above 55.0%, with total business volume growing relatively fast; after Chinese New Year, the business activity indexes for retail, accommodation, catering, and other industries related to residents' travel and consumption fell below the threshold, and market activity weakened somewhat. In terms of market expectations, the service sector business activity expectations index was 54.8%, continuing to remain at a relatively high level, indicating that service sector enterprises remained optimistic about near-term market developments. (2) The construction sector business activity index improved. As construction projects across various regions gradually resumed work after the holiday, the construction sector business activity index was 49.3%, up 1.1 percentage points MoM. In terms of market expectations, the construction sector business activity expectations index was 50.5%, above the threshold, indicating that construction enterprises remained confident about future industry development. III. The Composite PMI Output Index Rose Above the Threshold In March, the composite PMI output index was 50.5%, up 1.0 percentage points MoM, indicating that the overall level of production and business activity across China's enterprises continued to improve. The manufacturing production index and the non-manufacturing business activity index, which together constitute the composite PMI output index, were 51.4% and 50.1%, respectively.

Affected by the supply-demand relationship, MHP and high-grade nickel matte nickel prices rose this week

[SMM Tin Morning Update: SHFE Tin Prices Opened Slightly Higher in the Night Session and Then Consolidated at High Levels; As Prices Rebounded, Spot Cargo Transactions Gradually Cooled]

NBS data showed that in February, the manufacturing PMI was 49.0%, down 0.3 percentage points from the previous month, indicating a pullback in the manufacturing sector’s prosperity level. In February, the non-manufacturing business activity index was 49.5%, up 0.1 percentage points from the previous month, indicating an improvement in the non-manufacturing sector’s prosperity level. In February, the composite PMI output index was 49.5%, down 0.3 percentage points from the previous month, indicating that overall production and business activities of enterprises in China slowed down from the previous month. Huo Lihui, Chief Statistician of the NBS Service Sector Survey Center, interpreted China’s PMI for February 2026. Performance of China’s PMI in February 2026 I. Performance of China’s Manufacturing PMI In February, the manufacturing PMI was 49.0%, down 0.3 percentage points from the previous month, indicating a pullback in the manufacturing sector’s prosperity level. By enterprise size, the PMI for large enterprises was 51.5%, up 1.2 percentage points from the previous month and above the threshold; the PMIs for medium- and small-sized enterprises were 47.5% and 44.8%, down 1.2 and 2.6 percentage points from the previous month, respectively, and below the threshold. By sub-index, among the five sub-indices that make up the manufacturing PMI, the production index, new orders index, raw material inventory index, employment index, and supplier delivery time index were all below the threshold. The production index was 49.6%, down 1.0 percentage points from the previous month, indicating that manufacturing production activities slowed down. The new orders index was 48.6%, down 0.6 percentage points from the previous month, indicating a decline in the prosperity of market demand in the manufacturing sector. The raw material inventory index was 47.5%, up 0.1 percentage points from the previous month, indicating that the decline in inventories of major raw materials in the manufacturing sector narrowed slightly. The employment index was 48.0%, down 0.1 percentage points from the previous month, indicating a slight pullback in the employment prosperity of manufacturing enterprises. The supplier delivery time index was 49.1%, down 1.0 percentage points from the previous month, indicating that delivery times of raw material suppliers in the manufacturing sector slowed compared with the previous month. II. Performance of China’s Non-Manufacturing PMI In February, the non-manufacturing business activity index was 49.5%, up 0.1 percentage points from the previous month, indicating an improvement in the non-manufacturing sector’s prosperity level. By industry, the construction business activity index was 48.2%, down 0.6 percentage points from the previous month; the services business activity index was 49.7%, up 0.2 percentage points from the previous month. From the perspective of service industries, the business activity indices for industries such as accommodation, catering, and culture/sports/entertainment were all in a high prosperity range above 60.0%; the business activity indices for industries such as capital market services and real estate were all below the threshold. The new orders index was 45.2%, down 0.9 percentage points MoM, indicating a pull back in non-manufacturing market demand. By industry, the new orders index for the construction industry was 42.2%, up 2.1 percentage points MoM; the new orders index for the services industry was 45.7%, down 1.4 percentage points MoM. The input prices index was 50.9%, up 0.9 percentage points MoM, indicating an overall increase in the price level of inputs used by non-manufacturing enterprises for business operations. By industry, the input prices index for the construction industry was 49.1%, down 2.9 percentage points MoM; the input prices index for the services industry was 51.2%, up 1.5 percentage points MoM. The selling price index was 48.8%, unchanged from the previous month and still below the threshold, indicating that the overall level of non-manufacturing selling prices was lower than in the previous month. By industry, the selling price index for the construction industry was 47.6%, down 0.6 percentage points MoM; the selling price index for the services industry was 49.0%, up 0.1 percentage points MoM. The employment index was 46.0%, down 0.1 percentage points MoM, indicating a slight pull back in the employment prosperity of non-manufacturing enterprises. By industry, the employment index for the construction industry was 42.5%, up 1.4 percentage points MoM; the employment index for the services industry was 46.6%, down 0.4 percentage points MoM. The business activity expectations index was 55.0%, down 1.0 percentage point MoM and still in a relatively high prosperity range, indicating that non-manufacturing enterprises remained confident in market development. By industry, the business activity expectations index for the construction industry was 50.9%, up 1.1 percentage points MoM; the business activity expectations index for the services industry was 55.8%, down 1.3 percentage points MoM. III. Performance of China’s Composite PMI Output Index In February, the composite PMI output index was 49.5%, down 0.3 percentage points MoM, indicating that overall production and business activities of enterprises in China slowed down compared with the previous month. In February, the manufacturing PMI pulled back, while the non-manufacturing business activity index rebounded slightly. —Huo Lihui, Chief Statistician of the NBS Service Survey Center, interprets China’s PMI for February 2026 On March 4, 2026, the NBS Service Survey Center and the China Federation of Logistics and Purchasing released China’s PMI. In this regard, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics (NBS), provided an interpretation. In February, affected by factors such as the Chinese New Year holiday, the manufacturing PMI was 49.0, down 0.3 percentage points MoM; the non-manufacturing business activity index was 49.5, up 0.1 percentage points MoM; and the composite PMI output index was 49.5, down 0.3 percentage points MoM. I. The Manufacturing PMI Pulled Back In February, the manufacturing PMI was 49.0, with the prosperity level down from the previous month. Judging from historical data, the PMI in the month that includes the Chinese New Year mostly shows some fluctuations. In particular, this year’s Chinese New Year holiday was extended and fell entirely in mid-to-late February, which had some impact on enterprises’ production and operations, and overall market activity in manufacturing declined. (1) Both supply and demand slowed down. The production index and the new orders index were 49.6 and 48.6, down 1.0 and 0.6 percentage points MoM, respectively, indicating a pullback in manufacturing production and market demand. By industry, the production index and new orders index for industries such as agricultural and sideline food processing and computers, communications and electronic equipment were both above the critical point, with supply and demand prosperity remaining in expansion; in industries such as textiles, apparel and accessories and automobiles, both indices remained below the critical point, with weak market activity. (2) The PMI for large enterprises continued to expand. The PMI for large enterprises was 51.5, up 1.2 percentage points MoM, with production and operations remaining in expansion; small and medium-sized enterprises were more affected by the Chinese New Year holiday, with PMIs of 47.5 and 44.8 this month, down 1.2 and 2.6 percentage points MoM, respectively, and their prosperity levels pulled back. (3) Growth momentum in high-tech manufacturing continued to emerge. The high-tech manufacturing PMI was 51.5, remaining in expansion territory and significantly higher than the overall manufacturing level, indicating a favorable development trend in related industries; the consumer goods industry PMI was 48.8, up 0.5 percentage points MoM, with a rebound in the prosperity level; the PMIs for equipment manufacturing and high energy-consuming industries were 49.8 and 47.8, down 0.3 and 0.1 percentage points MoM, respectively, with their prosperity levels pulling back. (4) Enterprise expectations improved. The index of expectations for production and business activities was 53.2, up 0.6 percentage points MoM, indicating that manufacturing enterprises’ confidence in market development after the Chinese New Year strengthened. By industry, the index of expectations for production and business activities in industries such as general equipment and railway, ship, aerospace and aviation equipment was above 56.0, in a relatively high prosperity range, and related enterprises were more optimistic about near-term industry development. II. Non-Manufacturing Business Activity Index Edged Up Slightly In February, the non-manufacturing business activity index stood at 49.5%, up 0.1 percentage point from the previous month, indicating some improvement in the overall prosperity level of the non-manufacturing sector. (I) The service sector’s prosperity level rebounded. The service sector business activity index was 49.7%, up 0.2 percentage point from the previous month. By industry, driven by the Chinese New Year holiday effect, business volumes grew relatively quickly in industries related to residents’ travel and consumption; among them, the business activity indices for accommodation, catering, and culture, sports and entertainment all remained in the high-prosperity range above 60.0%, while those for retail and air transport rose to above 52.0%. Meanwhile, the business activity indices for capital market services and real estate remained at low levels, with subdued market activity. From the perspective of market expectations, the service sector business activity expectations index was 55.8%, remaining in a relatively high-prosperity range, indicating that service sector enterprises remained optimistic about near-term market developments. (II) The construction sector’s prosperity level declined. Affected by factors such as employees of enterprises returning to their hometowns in large numbers during the Chinese New Year holiday and the suspension of construction at some projects, the construction sector business activity index fell to 48.2%, down 0.6 percentage point from the previous month, and the construction sector’s prosperity level continued to pull back. From the perspective of market expectations, the construction sector business activity expectations index was 50.9%, up 1.1 percentage points from the previous month, returning above the threshold, indicating that construction sector enterprises’ confidence in future industry development had somewhat recovered. III. Composite PMI Output Index Pulled Back In February, the composite PMI output index was 49.5%, down 0.3 percentage point from the previous month, indicating that overall production and business activities of enterprises in China slowed down somewhat MoM. The manufacturing production index and the non-manufacturing business activity index, which make up the composite PMI output index, were 49.6% and 49.5%, respectively.

[SMM Analysis: Review and Post-Holiday Outlook of the High-Grade NPI Market During the 2026 Chinese New Year Holiday] Looking ahead, from a macro perspective, influenced by Indonesia's quota tightening policy, nickel prices are expected to enter a pattern of high-level wide swings after the Chinese New Year holiday, which will drive high-grade NPI prices.

SMM Nickel Market News on February 24: Macro and Market News: (1) On February 23, US media reported that the US government is considering imposing new tariffs on approximately six industries on the grounds of "national security." The proposed tariffs may cover large-scale batteries, cast iron and iron fittings, plastic pipes, industrial chemicals, as well as power grid and telecommunications equipment. These new tariffs will be implemented separately from the recently announced global 15% tariff measures. (2) A spokesperson for the Ministry of Foreign Affairs announced: At the invitation of Premier Li Qiang of the State Council, German Chancellor Merz will pay an official visit to China from February 25 to 26. Spot Market: On February 24, the price range for SMM #1 refined nickel was 137,300-147,700 yuan/mt, with an average price of 142,500 yuan/mt, up 2,400 yuan/mt from the previous trading day. The spot premium quotation range for Jinchuan #1 refined nickel was 8,300-9,500 yuan/mt, with an average premium of 8,900 yuan/mt, up 50 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: On the first trading day after the Chinese New Year holiday, the nickel market got off to a good start. The most-traded SHFE nickel contract (2603) opened higher and continued to rise, showing strong performance. By the end of the morning session, it was quoted at 138,590 yuan/mt, up 1.77%. During the holiday, LME nickel prices rose slightly, and the SHFE nickel market saw a catch-up rally today. During the holiday, a landslide occurred at the IMIP industrial park in Indonesia, resulting in casualties and further intensifying market concerns over supply disruptions. In the short term, the most-traded SHFE nickel contract is expected to break through the 140,000 yuan/mt level again, but upside potential remains constrained by high inventory.

【SMM Morning Brief Nickel 2.24】During the 2026 Chinese New Year holiday (February 15 to February 23), the domestic SHFE nickel market was closed, while LME nickel prices showed a rebound. The nickel sulphate market was relatively quiet during the holiday, with purchasing and sales activities largely halted. On the production side, some producers maintained operations, while others suspended production for maintenance.

Review and Post-Holiday Outlook of the Nickel Intermediate Product Market During the 2026 Chinese New Year Holiday

[SMM Analysis: Review and Post-Chinese New Year Outlook of the High-Grade NPI Market During the 2026 Chinese New Year Holiday] Looking ahead, from a macro perspective, the tightening of Indonesian quotas is expected to lead to high nickel prices with wide swings following the Chinese New Year holiday, which will drive up high-grade NPI prices.