The minutes of Xingye Silver&Tin's investor briefing announced on May 27 show: 1. Question: Mr. Sun! After the commissioning of Yinman Phase II, the plan is to mainly process lead-zinc-silver series ore, and the ore type and grade are expected to show relatively small changes compared to the Phase I lead-zinc system. Simply put, Zone 1 and Zone 4 are important resource replacement areas for Yinman Mining in the future, but currently they still belong to "potential zones" and cannot be directly classified into the "core rich ore" category like Orebody No. 17. Xingye Silver&Tin's response: Thank you for your attention! As of now, Orebody No. 17 is the main orebody that has been proven at Yinman. 2. Question: Hello, could you share the company's outlook on its own resources going forward and its assessment of the future market? Xingye Silver&Tin's response: Thank you for your attention! As an important participant in China's mineral resources sector and one of the world's leading silver-tin polymetallic mining enterprises, the company is firmly optimistic about its strategic layout, resource reserves, and industry prospects. 3. Question: Mr. Sun, over the past two years, the company has continuously pursued project acquisitions with an expanding financing scale. Can talent and technology be guaranteed? Can timely operations and safety be ensured? Xingye Silver&Tin's response: Thank you for your attention! In recent years, the company has prudently conducted project acquisitions and financing activities centered on its core business, with the overall expansion pace being controllable. Currently, the company has a complete talent pipeline and mature core technologies, and has established a standardized operational management and safety and environmental protection-related controls system, which can fully ensure the stable operation of all acquired projects and effectively prevent various risks. 4. Question: Mr. Sun, was your increase in shareholding in 2026 because you are optimistic about the company's several major projects this year? Xingye Silver&Tin's response: Thank you for your attention! Like other small and medium investors of the company, I am firmly optimistic about the company's potential investment value and plan to hold for the long term. 5. Question: @Director, Vice President and Board Secretary Sun Kai. Dear Secretary Sun, the company's Hong Kong IPO prospectus disclosed a 2026 tin production guidance of 5,500 mt, but Q1 production was only 777 mt, annualized at only 3,100 mt, far below the full-year guidance. May I ask: 1) Was the low Q1 production due to the technological transformation ramp-up of Yinman's copper-tin system, equipment commissioning, or low recovery rates? 2) What is the capacity release pace in subsequent quarters, and can the full-year guidance of 5,500 mt be achieved? 3) What are the timetable for reaching full production after technological transformation and the recovery rate improvement targets? Xingye Silver&Tin's response: Thank you for your attention! Based on the principles of comprehensive resource recovery and safe and efficient mining, the company simultaneously mines Orebody No. 17 and other copper-tin orebodies. For the company's production data, please refer to the periodic reports published on the company's designated information disclosure media. 6. Question: After the acquisition of Weiling Co., the company's related resources will inevitably be tilted toward that company. Please terminate the acquisition of Weiling Co. Xingye Silver&Tin's response: Thank you for your attention! Regarding the progress of the Weiling Co. project, please follow the relevant announcements disclosed by the company on designated media. 7. Question: What are the respective positioning of Xingye Silver&Tin A-shares, Xingye Silver&Tin H-shares, and Weiling Co.? Xingye Silver&Tin's response: Thank you for your attention! Regarding the progress of the Weiling Co. project, please follow the relevant announcements disclosed by the company on designated media. 8. Question: Dear Board Secretary, is the Q1 performance sustainable? What are the current capacity and inventory of silver and tin respectively? Xingye Silver&Tin's response: Thank you for your attention! In Q1 2026, the company's mined silver production was 78.95 mt and mined tin production was 777.33 mt. As of the end of Q1 2026, silver inventory was 15.04 mt and tin inventory was 83.67 mt. 9. Question: Is there a preliminary timetable for the Hong Kong listing? Can it be completed before the end of December this year? Among the company's plans, no projects have been implemented in Xinjiang yet. What kind of resources is the company planning for in the Xinjiang segment? Xingye Silver&Tin's response: Thank you for your attention! The company will release progress announcements on designated media in a timely manner based on project developments. Please stay tuned! 10. Question: Dear Board Secretary, how does the company view the sustained growth in silver and tin demand driven by AI and new energy? Tin production was 8,900 mt in 2024, but the 2026 guidance was lowered to 5,500 mt. What is the core reason? What is the pace of subsequent capacity release for the Yinman technological transformation and the Morocco project? Xingye Silver&Tin's response: Thank you for your attention! The materials related to the Hong Kong listing adopt the JORC Code, a technical standard developed by Australia. For example, the JORC Code defines "ore reserves" as the economically mineable part of measured and/or indicated mineral resources. The above standard differs to some extent from China's standards, resulting in certain deviations between the relevant data under planning and actual production and operations. Specific production data shall be subject to the data disclosed in the company's periodic reports. 11. Question: Has the land certificate and construction permit for Yinman Phase II been obtained? Please do not respond with "please follow the relevant announcements disclosed by the company on designated media." Xingye Silver&Tin's response: Thank you for your attention! Yinman Phase II is expected to commence construction on July 1. After construction begins, the company will promptly disclose relevant progress announcements. Please stay tuned! 12. Question: Last year, the company was bullish on silver prices continuing to rise and chose to stockpile. Now silver prices are under pressure and the company did not hedge. Is the company still bullish on silver?The stock price has been continuously under pressure. Will the company proactively manage this? Xingye Silver&Tin replied: Thank you for your attention! As of now, the company has not conducted any futures hedging business. The company's hedging is carried out prudently at appropriate times based on actual production and operations as well as market conditions, with strict control over transaction risks. 13. Question: What is the current tin recovery rate at Yinman? The report for the Hong Kong listing shows a significant decline in grade. Is this in line with the company's current situation? If based on that report, it seems the company does not need to proceed with the Phase II expansion of Yinman, which appears somewhat contradictory. When will all of the company's capacity reach full production? After all capacity reaches full production, what will be the approximate production of silver and tin? Atlantic Tin has a gold exploration right. Could you briefly introduce the situation of that mine? Does the company have any plans to increase its equity stake in Far East Gold in the future? Xingye Silver&Tin replied: Thank you for your attention! The technical standards used in the Hong Kong listing materials are based on the JORC Code formulated by Australia. For example, the JORC Code defines "Ore Reserves" as the economically mineable part of Measured and/or Indicated Mineral Resources. The above standards differ to some extent from China's standards, resulting in certain deviations between the relevant data in the long-term planning and actual production and operations. Specific production data shall be subject to the data disclosed in the company's periodic reports. 14. Question: Hello, Secretary of the Board. The resource volumes and capacity plans for Yinman and Yubang Mining disclosed in the Hong Kong IPO prospectus are lower than the company's previous communication figures. What is the core reason? Is it due to differences in the JORC Code methodology (only including Measured and Indicated Resources, excluding Inferred Resources)? Does it involve resource reductions, grade downgrades, or mining plan adjustments? Is there room for future resource additions or upward revisions? Xingye Silver&Tin replied: Thank you for your attention! The technical standards used in the Hong Kong listing materials are based on the JORC Code formulated by Australia. For example, the JORC Code defines "Ore Reserves" as the economically mineable part of Measured and/or Indicated Mineral Resources. The above standards differ to some extent from China's standards, resulting in certain deviations between the relevant data in the long-term planning and actual production and operations. Specific production data shall be subject to the data disclosed in the company's periodic reports. 15. Question: Mr. Sun, based on the materials disclosed for the company's Hong Kong listing, the company's production of silver and especially tin is significantly lower than previous expectations. Is this estimate, this guidance, the company's true guidance, or a theoretical guidance made by SRK based on their assessment? Does the company plan to issue a medium and long-term guidance that is in line with the company's actual production plans to clarify these expectations?Otherwise, these expectations may have a significant negative impact on the company and noticeably undermine investor confidence. In fact, this is also unfavorable for the company's listing on international capital markets for financing and further development. Xingye Silver&Tin's response: Thank you for your attention! The Hong Kong listing-related materials adopt the JORC Code established by Australia as the technical standard. For example, the JORC Code defines "Ore Reserves" as the economically mineable part of Measured and/or Indicated Mineral Resources. The above standards differ to some extent from China's standards, resulting in certain deviations between the relevant data in the long-term plan and actual production and operations. Specific production data shall be subject to the data disclosed in the company's periodic reports. 16. Question: Mr. Sun, hello. The prospectus explains that there will be discrepancies between the Competent Person's planned mineral processing production schedule and the enterprise's actual situation. Could Mr. Sun please introduce the production plan for silver and tin from 2028 to 2030? Xingye Silver&Tin's response: Thank you for your attention! The Hong Kong listing-related materials adopt the JORC Code established by Australia as the technical standard. For example, the JORC Code defines "Ore Reserves" as the economically mineable part of Measured and/or Indicated Mineral Resources. The above standards differ to some extent from China's standards, resulting in certain deviations between the relevant data in the long-term plan and actual production and operations. Specific production data shall be subject to the data disclosed in the company's periodic reports. 17. Question: Specifically regarding Yinman Mining: according to SRK's data, there will be significant grade decline in the future. In addition, the feed grade differs considerably from the company's disclosures in the 2025 annual report and previous annual reports. Is it necessary to issue a specific announcement to provide an explanation based on the different mining standards? Xingye Silver&Tin's response: Thank you for your attention! The Hong Kong listing-related materials adopt the JORC Code established by Australia as the technical standard. For example, the JORC Code defines "Ore Reserves" as the economically mineable part of Measured and/or Indicated Mineral Resources. The above standards differ to some extent from China's standards, resulting in certain deviations between the relevant data in the long-term plan and actual production and operations. Specific production data shall be subject to the data disclosed in the company's periodic reports. 18. Question: Have the specific construction commencement dates been confirmed for Yinman Phase II, Yubang Phase II, the Morocco tin mine, and the Budun Yingen mine managed by the controlling shareholder? Could you also provide the commissioning and full production timelines? Thank you. Xingye Silver&Tin's response: Thank you for your attention! Yinman Phase II is expected to commence construction on July 1; the Yubang 8.25 million mt/year project is expected to commence construction in Q3; the Atlantic Tin project has obtained all construction permits and is currently carrying out preliminary preparation work including contractor tender and equipment transportation, with construction expected to commence in mid-July; all the above projects are expected to achieve commissioning with feed materials in Q4 2028. The managed company Budun Yingen plans to commence construction in Q4, with production expected to begin in 2029. 19. Question: Director Sun, in a previous institutional survey, you clearly stated that the company's quarterly tin production of 3,600 mt can be achieved on a regular basis. Is there an opportunity to achieve this quarterly target this year? Xingye Silver&Tin's response: Thank you for your attention! Adhering to the principles of comprehensive resource recovery and safe, efficient mining, the company simultaneously mines Orebody No. 17 and other copper-tin orebodies. For the company's production data, please refer to the periodic reports published by the company on designated information disclosure media. 20. Question: Does the company have the right to abandon the acquisition of the relevant equity in Weiling Shares? Xingye Silver&Tin's response: Thank you for your attention! For the progress of the Weiling Shares project, please refer to the relevant announcements disclosed by the company on designated media. 21. Question: Director Sun, in the records of a previous institutional survey, the company responded that Yinman's quarterly tin production of 3,600 mt can be achieved on a regular basis, but it seems this has not been realized subsequently. Is there a possibility of attempting to reach this record this year? Xingye Silver&Tin's response: Thank you for your attention! Adhering to the principles of comprehensive resource recovery and safe, efficient mining, the company simultaneously mines Orebody No. 17 and other copper-tin orebodies. For the company's production data, please refer to the periodic reports published by the company on designated information disclosure media. 22. Question: Is there a plan to spin off minor metals other than silver and tin to Weiling Shares? Xingye Silver&Tin's response: Thank you for your attention! For the progress of the Weiling Shares project, please refer to the relevant announcements disclosed by the company on designated media. 23. Question: Has the matter of acquiring Weiling been terminated? Xingye Silver&Tin's response: Thank you for your attention! For the progress of the Weiling Shares project, please refer to the relevant announcements disclosed by the company on designated media. 24. Question: Has the company already dispatched personnel to take over the production and operations of Jiayu Mining? Xingye Silver&Tin's response: Thank you for your attention! For the progress of the Weiling Shares project, please refer to the relevant announcements disclosed by the company on designated media. 25. Question: After acquiring Weiling Shares, our company will become an AAH (Xingye Weiling H) publicly listed firm. What is the company's positioning for the three listing platforms? Xingye Silver&Tin's response: Thank you for your attention! For the progress of the Weiling Shares project, please refer to the relevant announcements disclosed by the company on designated media. 26. Question: In the company's 2025 annual report, the company stated "solidly advancing the subsequent acquisition and integration of Weiling Shares," but Weiling Shares has been subject to a delisting risk warning. What is the purpose of our acquisition of Weiling? Xingye Silver&Tin's response: Thank you for your attention!For updates on the progress of Weiling shares project, please refer to the relevant announcements disclosed by the company on designated media. Xingye Silver&Tin's Q1 report showed that from January to March 2026, the company achieved operating revenue of 2.13 billion yuan, up 85.32% YoY; net profit attributable to shareholders of the publicly listed firm was 1.338 billion yuan, up 257.32% YoY. As of March 31, 2026, the company's total assets were 19.689 billion yuan, and net assets attributable to shareholders of the publicly listed firm were 10.825 billion yuan. Operating revenue breakdown: From January to March 2026, the proportion of operating revenue from the company's main mineral products to total operating revenue was as follows: ore-derived silver (1.41 billion yuan, 66.21%), ore-derived tin (234 million yuan, 10.99%), ore-derived zinc (228.12 million yuan, 10.71%), ore-derived lead (71.85 million yuan, 3.37%), ore-derived antimony (53.1 million yuan, 2.49%), ore-derived gold (51.02 million yuan, 2.40%), ore-derived iron (44.17 million yuan, 2.07%), ore-derived copper (35.65 million yuan, 1.67%), and ore-derived indium (524,100 yuan, 0.02%). Among them, ore-derived tin and ore-derived silver combined accounted for 77.19% of total operating revenue. Xingye Silver&Tin's Q1 report stated that operating profit for the current period increased 238.16% compared with the previous period, total profit increased 236.36%, and net profit attributable to the parent company's shareholders increased 257.32%. The main reasons were: During the reporting period, the selling prices of the company's main mineral products such as silver and tin rose YoY; Yubang Mining's capacity was gradually released, with ore-derived silver production and sales increasing significantly YoY; and the transfer of 60% equity in Shuangyuan Non-ferrous realized investment income of 321 million yuan. Xingye Silver&Tin's 2025 annual report showed that in 2025, the company achieved operating revenue of 5.555 billion yuan, up 30.09% YoY; total profit of 2.096 billion yuan, up 18.75% YoY; and net profit attributable to shareholders of the publicly listed firm of 1.704 billion yuan, up 11.40% YoY. Xingye Silver&Tin's announcement showed that in 2025, the proportion of operating revenue from the company's main mineral products to total operating revenue was as follows: ore-derived silver (2.176 billion yuan, 39.17%), ore-derived tin (1.65 billion yuan, 29.70%), ore-derived zinc (975.87 million yuan, 17.57%), ore-derived lead (220.95 million yuan, 3.98%), ore-derived iron (180.38 million yuan, 3.25%), ore-derived copper (133 million yuan, 2.39%), ore-derived antimony (100.36 million yuan, 1.81%), ore-derived gold (82.34 million yuan, 1.48%), and ore-derived bismuth (16.67 million yuan, 0.30%). Among them, ore-derived tin and ore-derived silver combined accounted for 68.86% of total operating revenue. Regarding the company's main business and key performance drivers, Xingye Silver&Tin stated in its 2025 annual report: The company is a large mining group primarily engaged in the exploration, mining, and ore processing of non-ferrous metals and precious metals. As of the disclosure date of this report, the company had over 20 subsidiaries, of which 8 were operating mining companies, namely Yinman Mining, Qianjinda Mining, Yubang Mining, Rongguan Mining, Xilin Mining, Rongbang Mining, Ruineng Mining, and Bosheng Mining. Atlas Tin SAS under Atlantic Tin was in the construction phase for the Achmmach tin mine. Tanghe Times Mining was in a suspended construction phase, while Yitong Mining and Yunnan Xigui were in the exploration phase. Hainan Fund was primarily engaged in equity investment management; Xingye Gold (Hong Kong) was primarily engaged in metals and mining trading, corporate M&A, and was responsible for expanding markets outside China and acquiring quality mineral resources ex-China; Hainan Guomao and Tianjin Guomao were primarily engaged in non-ferrous metal mineral product sales and partial raw material procurement; Xingye Ruijin was primarily engaged in process research, technology R&D and upgrading in areas such as exploration, mining and processing, and comprehensive tailings recovery and utilization. Tibet Shannan Antimony Gold, Tibet Xinda Mining, and Xing'an League Fuxingtun Mining served as the company's regional resource integration platforms. During the reporting period, the company successfully acquired 85% equity in Yubang Mining. According to data compiled by the Silver Institute as of the end of 2023, Yubang Mining's monomer silver mine ranked first in Asia and fifth globally. This acquisition further strengthened the company's resource advantages and laid a solid resource foundation for sustainable development. Meanwhile, using its subsidiary Xingye Gold (Hong Kong) as the investment vehicle, the company increased investment in mineral resources outside China and successfully acquired 100% equity in Atlantic Tin. This acquisition was an important step in implementing the company's "going global" strategy. According to the classification standards for large-scale tin mines in the "Standards for Classification of Mineral Resource Reserve Scales" (DZ/T 0400-2022), the Achmmach tin mine owned by Atlantic Tin currently amounts to the equivalent of 5 large deposits. Through this integration of tin ore resources outside China, the company further improved its international tin ore layout and also reserved important strategic resources for long-term development. The company's main performance was derived from non-ferrous metal mining and processing operations. During the reporting period, revenue from non-ferrous metal mining and processing accounted for 99.64% of total operating revenue in 2025. Key factors affecting the operating performance of the mining and processing segment included production and sales volumes of major products, market prices, and costs of non-ferrous metal and precious metal mining and processing operations. Regarding the business plan, Xingye Silver&Tin stated in its 2025 annual report: 2026 is the concluding year of the company's "Second Three-Year" plan. The Board of Directors will closely focus on the theme of high-quality development, fully implement established work objectives, continue to deepen the philosophy of "Trust and Collaboration," and make an all-out push to achieve the closing targets of the "Second Three-Year" plan, with emphasis on the following areas of work: 1. Uphold the bottom line of safety and environmental protection. Using 2026 as the "Year of Safety Management Implementation," the company will comprehensively enforce safety responsibilities, consolidate the achievements of the "Year of Collective Safety Vigilance," strengthen risk anticipation and process control, resolutely prevent all types of safety and environmental protection incidents, and achieve safe, steady, green, and low-carbon development. 2. Advance key project construction at full speed, strengthen full-process management of project budgets, schedules, and quality, and coordinate the implementation of projects including the 2.97 million mt expansion of Yinman Mining, the 8.25 million mt expansion of Yubang Mining, the Morocco project, and the Budun Yingen Mining (under trusteeship) project, ensuring on-schedule completion, reaching full production, and releasing capacity benefits. 3. Continue to intensify exploration and reserve expansion efforts, properly balance production operations with geological exploration, steadily advance exploration of existing mines and surrounding areas, accelerate the conversion and upgrading of resource volumes, and continuously strengthen the resource foundation. 4. Deepen industrial synergy and resource integration. Leveraging the core regional advantages in Inner Mongolia, the company will steadily expand its resource layout outside China; adhering to silver and tin as the main business direction, it will enrich and optimize resource varieties. The company will solidly advance the subsequent acquisition and integration of Weiling shares, actively track quality mineral project opportunities in and outside China, and enhance overall competitiveness through synergistic industrial M&A. 5. Further strengthen institutional enforcement and internal control management, drive the effective implementation of various systems, processes, and control requirements, and enhance the company's refined management capabilities; strengthen enforcement capacity building to ensure production plans, comprehensive budgets, and various work deployments are fully implemented, and promote deep integration of corporate culture with business management. 6. Advance Hong Kong stock listing preparations at full speed, accelerate the establishment of a dual capital market platform at home and abroad, enhance cross-border capital operation capabilities, provide stronger financial support for the company's resource integration and strategy implementation, and drive the company's high-quality sustainable development to new heights. Reviewing the 2025 price performance of spot silver: the average price of SMM 1# silver (Ag99.99%) on December 31, 2025 was 18,430 yuan/kg, compared with 7,440 yuan/kg on December 31, 2024, representing an increase of 10,990 yuan/kg, or 147.71%. Recently, spot silver prices have been fluctuating. On May 27, the morning quote for SMM 1# silver (Ag99.99%) was 18,654–18,684 yuan/kg, with an average price of 18,669 yuan/kg, up 0.54% from the previous trading day. Compared with the average price of 18,430 yuan/kg on December 31, 2025, the price edged up by 239 yuan/kg, a gain of 1.3%. Regarding the outlook for precious metals, some institutions' views are as follows: FXTM Senior Research Analyst Lukman Otunuga stated: "As hopes for a US-Iran peace deal waver, gold prices have pulled back and are approaching the $4,450 support level. In addition, market expectations for a US Fed rate hike are steadily building amid conflict-driven price pressures, which is also exerting further downward pressure on gold prices." "Ultimately, if more signs emerge that price pressures are rising, it could further reinforce market bets that the US Fed will keep interest rates higher for longer, which would expose gold to greater downside risk." (Jin10 Data APP) CITIC Futures stated: Renewed tensions in US-Iran geopolitics have dampened risk appetite, while rising oil prices have reignited inflation concerns and strengthened market bets on a US Fed rate hike within the year, with multiple factors dragging silver prices lower. On one hand, US economic data still showed resilience, with the latest Chicago Fed National Activity Index for April at 0.14, significantly better than the previous reading of -0.15. The US May Conference Board Consumer Confidence Index and Present Situation Index both pulled back from prior readings, but the confidence index still beat market expectations. Combined with renewed US-Iran tensions pushing oil prices higher and sparking inflation concerns, market pricing for a year-end US Fed rate hike has strengthened. On the other hand, spot silver's fundamental drivers remained weak, with London market silver lease rates running at persistently low levels. In the short term, silver is expected to maintain a fluctuating trend, with overall capital interest still relatively low. Attention should be paid to US-Iran negotiation progress and strait navigation resumption. If US-Iran negotiations progress smoothly, this could drive a short-term silver rebound, but interest rate expectations will continue to suppress the trend. If geopolitical tensions escalate again and push oil prices higher, caution is warranted regarding further medium-term suppression of silver's industrial products elasticity and potential supply disruptions. Over the long term, weakening US dollar credibility, safe-haven demand, and investment demand provide solid support for silver prices. (Jin10 Data APP) A CITIC Securities research report noted that the resilience of the global economy is being tested by the Middle East conflict, with a glimmer of hope for the resumption of navigation through the Strait of Hormuz. The US economy may continue to grow mildly but unevenly this year, the pace of the EU's weak recovery is being delayed, and Japan's private-sector demand will inevitably be disrupted by energy shortages. High oil prices are already pushing up global inflation, with headline inflation rates in Europe and the US likely to fluctuate at highs this year, while Japan's headline inflation rate may continue its mild performance. The US Fed may not cut interest rates at all this year, while potential rate hikes by the ECB and BOJ are imminent, and the "unrestrained" fiscal stance of Japanese and European political circles may constitute a source of market risk this year. We maintain our view that US equities will outperform US bonds and that the US dollar index has support, and gold prices are expected to break free from their predicament as tail risks of inflation dissipate. ANZ analyst Kumar, Soni recently stated that inflation expectations, rising US Treasury yield, and a stronger US dollar are unfavourable factors putting gold prices under pressure. These factors will persist until we can clearly determine how long this conflict will last. Gold has fallen more than 14% since the outbreak of war in late February. OANDA Senior Market Analyst Kelvin Wong stated that since early March, the overall trend of the 10-year US Treasury yield has remained in a medium-term upward phase. Therefore, at this juncture, gold bulls may not be as aggressive in pushing prices higher. Gold is expected to continue weakening over the next few trading days, with resistance at $4,645 and support at $4,456. (Jin10 Data) Goldman Sachs stated that central banks are expected to increase gold purchases, helping gold prices rebound by year-end. Analysts Thomas, Lina and Struyven, Daan stated in a research report published on May 15 that the average monthly central bank gold purchases in 2026 are expected to rise to 60 mt. Based on the revised accumulation model, the 12-month average of central bank gold purchases in March reached 50 mt, compared with a previous figure of 29 mt. Citing internal surveys, the analysts noted that central banks have long-term rigid allocation demand for gold, and recent changes in the geopolitical landscape are likely to continue driving countries to accelerate asset diversification. JPMorgan lowered its 2026 average gold price forecast from $5,708 per ounce to $5,243 per ounce. As demand is expected to re-accelerate in H2 2026, the base case still projects gold prices reaching $6,000/ounce by year-end.

SMM News, May 27: Metals market: As of the midday close, most domestic base metals rose, while SHFE copper edged down. SHFE aluminum rose 0.8%. SHFE lead rose 0.33%, SHFE zinc fell 0.72%. SHFE tin rose 0.63%. SHFE nickel rose 1.91%. In addition, the most-traded casting aluminum futures rose 0.52%, the most-traded alumina contract rose 0.96%. The most-traded lithium carbonate contract fell 1.09%. The most-traded silicon metal contract rose 0.47%. The most-traded polysilicon futures contract fell 2.17%. Ferrous metals mostly fell. Iron ore fell 0.19%, rebar fell 0.69%, hot-rolled coil fell 0.44%, and stainless steel rose 1.49%. Coking coal and coke: the most-traded coking coal contract fell 1.48%, and the most-traded coke contract fell 1.77%. Overseas base metals, as of 11:38, LME metals rose across the board. LME copper rose 0.6%. LME aluminum rose 0.39%. LME lead rose 0.05%. LME zinc rose 0.4%. LME tin rose 1.24%. LME nickel rose 0.32%. Precious metals, as of 11:38, COMEX gold rose 0.08%, COMEX silver rose 0.63%. Domestic precious metals: the most-traded SHFE gold contract fell 1.05%, the most-traded SHFE silver contract fell 0.73%. In addition, as of the midday close, the most-traded platinum futures contract fell 1.15%, and the most-traded palladium futures contract fell 0.98%. As of the midday close, the most-traded Europe containerized freight index contract rose 0.77%, closing at 2,949 points. As of 11:38 on May 27, midday futures quotes for selected contracts: Spot Cargo and Fundamentals Alumina: SMM statistics show that the scale of alumina projects under construction and under planning in Guinea has exceeded... Macro Front China: [NBS: From January to April, profits of China's above-scale industrial enterprises rose 18.2%; non-ferrous metals sector profits surged 117.8%] NBS data showed that from January to April, total profits of China's above-scale industrial enterprises reached 2.44 trillion yuan, up 18.2% YoY. From January to April, the mining sector posted profits of 361.84 billion yuan, up 26.0% YoY; the manufacturing sector posted profits of 1.80 trillion yuan, up 20.4%; and the electricity, heat, gas, and water production and supply sector posted profits of 272.01 billion yuan, down 1.9%. From January to April, profitability of major industries was as follows: non-ferrous metals smelting and rolling processing (up 1.2x YoY), computer, communications, and other electronic equipment manufacturing (up 1.1x), chemical raw materials and chemical products manufacturing (up 73.4%), coal mining and washing (up 21.0%), textile (up 11.2%), petroleum and natural gas extraction (up 8.1%), petroleum, coal, and other fuel processing (turned from loss to profit), general equipment manufacturing (down 0.6%), electricity and heat production and supply (down 2.5%), special equipment manufacturing (down 7.2%), electrical machinery and equipment manufacturing (down 11.4%), agricultural and sideline food processing (down 11.8%), automobile manufacturing (down 16.8%), non-metallic minerals products (down 50.7%), and ferrous metals smelting and rolling processing (down 51.5%). [PBOC Conducts 177.6 Billion Yuan in Open Market Reverse Repo Operations with Net Injection of 127.6 Billion Yuan in a Single Day] The PBOC conducted 177.6 billion yuan in 7-day reverse repo operations in the open market at an operation rate of 1.40%, unchanged from the previous day. 50 billion yuan in reverse repos matured today. US Dollar: As of 11:38, the US dollar index fell 0.05% to 99.1. According to Nikkei, Fed's Kashkari stated that the US Fed may implement a "series" of interest rate hikes in response to inflation concerns triggered by the Middle East situation. During the late-April FOMC meeting, the US Fed kept interest rates unchanged. Kashkari and two other officials dissented against the decision to include language in the Fed's statement hinting at future monetary easing. In a written interview, Kashkari said: "I think the next rate adjustment could be an interest rate cut, or it could be a rate hike." He used this to express his differing views. Kashkari said the outcome would depend on inflation trends, which depend on whether the Strait of Hormuz would reopen soon or remain effectively closed due to further damage to infrastructure in the region, the latter of which would exacerbate the global energy shortage. Kashkari said the concern was that long-term inflation expectations of enterprises and households "could become unanchored." He said the FOMC "may well need to respond forcefully," and rate hikes, or even a series of rate hikes, could be necessary measures. According to CME "FedWatch": the probability of the US Fed keeping rates unchanged through June was 99.2%, with a 0.8% probability of a cumulative 25-basis-point interest rate cut. The probability of the US Fed keeping rates unchanged through July was 88.6%, with an 11.3% probability of a cumulative 25-basis-point rate hike and a 0% probability of a cumulative 25-basis-point interest rate cut. (Jin10 Data) A CITIC Securities research report noted that the resilience of the global economy is being tested by the Middle East conflict, while a glimmer of hope for the resumption of navigation through the Strait of Hormuz has emerged. The US economy is likely to continue growing mildly but unevenly this year, the pace of the EU's weak recovery is being delayed, and Japan's private-sector demand is inevitably subject to disruptions from energy shortages. High oil prices are already pushing up global inflation, with headline inflation rates in Europe and the US likely to fluctuate at highs this year, while Japan's headline inflation rate may continue its mild performance. The US Fed may not cut interest rates at all this year, while potential rate hikes by the European and Japanese central banks are imminent, and the "unrestrained" fiscal stances of Japanese and European political circles could constitute a source of market risk this year. We maintain our view that US equities will outperform US Treasuries and the US dollar index will find support, while gold prices are expected to break out of their current range as tail risks to inflation dissipate. Other currencies: The Reserve Bank of New Zealand (RBNZ) kept rates unchanged for the third consecutive meeting, opting to continue observing the impact of the global energy shock on domestic consumption and medium-term inflation. The RBNZ's Monetary Policy Committee on Wednesday held the Official Cash Rate (OCR) at 2.25%, in line with market expectations. The RBNZ's latest projections show a rising likelihood of at least two 25bp rate hikes before year-end. In its post-meeting statement, the RBNZ said: "Taken together, the OCR will likely need to be raised sooner and by more than projected in the February Monetary Policy Statement." "The pace of hikes will depend on the relative impact of persistent wage and pricing behavior versus weakening economic activity on medium-term inflation pressures." Following the statement, NZD/USD rose. (Jin10 Data) Bank of Japan (BoJ) Governor Ueda Kazuo said vigilance is needed regarding the impact of surging oil prices on underlying inflation trends, but did not clearly signal how this factor would influence next month's policy meeting outcome. Ueda said on Wednesday: "Japan's experience shows that oil price shocks are never just oil price shocks; they actually test the entire inflation mechanism." Reviewing the impact of oil crises since the 1970s, he noted: "We are in fact experiencing the fifth oil price shock." "If a temporary shock alters wages, inflation expectations, and corporate pricing behavior, it may evolve into persistent inflation." Ueda did not directly signal the future policy path, but as his remarks reflected concerns over the impact of high oil prices, markets may further strengthen speculation about the prospect of a rate hike at the BoJ's June meeting. Overnight swap market pricing shows traders currently assign roughly a 75% probability to a 25bp rate hike by the BoJ next month. (Jin10 Data) Australia's April core inflation rate remained above the upper bound of the Reserve Bank of Australia's (RBA) target range, further reinforcing market expectations that the RBA will maintain its hawkish stance after consecutive rate hikes this year. Data on Wednesday showed the closely watched core inflation gauge—the annual trimmed mean inflation rate excluding volatile items—rose 3.4% YoY, in line with economists' expectations. The RBA targets keeping inflation near the midpoint of its 2%-3% target band. Interest rate swap markets currently price the probability of another rate hike in August at around 50%, down from 64% before the data release. Under the dual pressure of high borrowing costs and surging fuel prices driven by the Iran war, the Australian economy is beginning to show signs of weakness. The unemployment rate in April rose to a four-and-a-half-year high, while approximately one-third of enterprises reported declining revenue over the past four weeks, and half reported rising operating costs. The market widely expects that after raising rates at all three meetings earlier this year, the Reserve Bank of Australia will hold the cash rate unchanged at 4.35% in June. Sue-Ellen Luke, head of price statistics at the Australian Bureau of Statistics, said: "Automotive fuel prices currently remain 23.5% higher than before the outbreak of the Middle East conflict. The impact of rising oil prices is also reflected in goods and services with higher transportation and logistics costs." (Jin10 Data) Data: Today will see the release of the RBNZ interest rate decision as of May 27, Switzerland's May ZEW Investor Confidence Index, US weekly ADP employment change for the week ending May 9, and the US May Richmond Fed Manufacturing Index, among other data. In addition, attention should be paid to: Bank of Japan Governor Ueda Kazuo delivering a speech at a monetary policy conference hosted by the BOJ; the RBNZ releasing its interest rate decision and monetary policy statement; RBNZ Governor Breman holding a monetary policy press conference. Crude oil: As of 11:38, both benchmarks declined, with WTI down 2.03% and Brent down 1.75%. Oil prices fell in Asian early trading as traders weighed the prospects of a US-Iran deal. Front-month Brent crude declined. Despite a resurgence in hostilities, hopes remain for an agreement to reopen the Strait of Hormuz. Tehran signaled that the attacks would not derail negotiations, while US Secretary of State Rubio said it would take a few days to finalise a potential deal. Uncertainty remains high. Kieran Tomkins of Capital Economics noted that while crude oil options data suggest investors expect prices to pull back over the next three months, their conviction is unusually low. He said options indicate investors see a swift resumption of supply through the strait as the most likely outcome, but their implied expectations suggest a 37% probability that oil prices will exceed $100 per barrel in three months. (Zhitong Finance) On the evening of May 26 local time, the Public Relations Department of the Islamic Revolutionary Guard Corps (IRGC) Navy announced that over the past 24 hours, 25 vessels including oil tankers, container ships, and other commercial vessels passed through the Strait of Hormuz with permission, under the coordination and security guarantee of the IRGC Navy. Meanwhile, the IRGC Navy stated that it is exercising "effective and authoritative" control over the Strait of Hormuz, and any act of aggression will be met with a severe response. (CCTV News) (Jin10 Data APP) Spot market overview: ► ► ► ► ► ► ► ► ► ► ► ► ►

SMM May 22 update: The "Regulations for the Implementation of the Mineral Resources Law of the People's Republic of China" was recently promulgated and will take effect from June 15, 2026. The tight supply situation on the raw material side remained unchanged. Pr-Nd oxide saw a notable increase on May 21, boosted by major manufacturers' procurement, but underwent a slight correction on May 22 under the influence of inquiries pushing for lower prices. Nevertheless, the recovery in market confidence provided some support for Pr-Nd prices. Demand side, the NEV, wind power, and humanoid robot industries continued to develop favorably, and the market expected promising growth in high performance NdFeB demand. Additionally, after the previous period of adjustment, some market funds flowed back into the rare earth permanent magnet sector, driving a notable rise in the rare earth permanent magnet concept on May 22. As of the close on May 22, the rare earth permanent magnet concept rose 3.14%. In terms of individual stocks: Xiangtan Electric Manufacturing hit the daily limit, while Advanced Technology & Materials, Hanghua Co., Huaxin Technology, Innuovo Technology, and Orient Zirconic Industry led the gains. News [Li Qiang Signs State Council Decree Promulgating the "Regulations for the Implementation of the Mineral Resources Law of the People's Republic of China"] Premier Li Qiang recently signed a State Council decree promulgating the "Regulations for the Implementation of the Mineral Resources Law of the People's Republic of China" (hereinafter referred to as the "Regulations"), which will take effect from June 15, 2026. The Regulations aim to ensure the effective implementation of the revised Mineral Resources Law, promote the rational development and utilization of mineral resources, strengthen the protection of mineral resources and the ecological environment, drive high-quality development of the mining industry, and safeguard mineral resource security. The Regulations consist of 8 chapters and 79 articles, mainly covering the following contents. First, further improving the mining rights system, with specific provisions on the establishment, transfer by tender, renewal, and assignment of mining rights. Second, refining systems related to mineral resource exploration and extraction, including establishing and improving technical standards and normative systems for basic geological surveys, clarifying procedures for applying for exploration permits and mining permits, strengthening land use guarantees for mining, promoting comprehensive utilization of mineral resources, and clarifying the legal effect of mineral resource reserve reports. Third, refining systems related to ecological restoration in mining areas, clarifying that mining right holders are responsible for ecological restoration in mining areas, detailing the contents that ecological restoration plans for mining areas should specify, and stipulating the completion deadlines and acceptance procedures for ecological restoration in mining areas. Fourth, further improving mineral resource reserve and emergency response systems, clarifying the principles to be followed in building a strategic mineral resource reserve system, further refining systems related to strategic mineral resource product reserves, capacity reserves, and production site reserves, and improving emergency response measures for mineral resources. Fifth, further improving the supervision and management system, refining the evaluation system for mineral resource development and utilization levels, implementing registration and tiered and classified supervision for entities engaged in mineral resource exploration, and clarifying dispute resolution mechanisms between mining right holders. Legal responsibilities were improved, specifying that violations involving strategic mineral resources shall be subject to heavier penalties within the statutory range. (Xinhua News Agency) Pr-Nd oxide price pulled back slightly on May 22; dysprosium oxide and terbium oxide prices remained stable Spot market: On May 22, the average price of Pr-Nd oxide edged down 0.57% from the previous trading day. Dysprosium oxide and terbium oxide prices remained flat compared to the previous trading day. Currently, rare earth market prices showed a slight correction. Focusing on the Pr-Nd market, mid-week, magnetic material enterprises conducted a round of concentrated procurement, but as the weekend approached, their inquiry activities decreased significantly, with most inquiries pushing for lower prices. Affected by this, the metal market inquiries came under pressure, and some metal enterprises slightly lowered their quotes. The oxide market was also affected; impacted by metal enterprises' price-pushing inquiries, some traders lowered their quotes. However, market confidence recovered somewhat in the short term, and suppliers had low willingness to sell at lower prices, so the overall decline in Pr-Nd products remained limited. Turning to the medium-heavy rare earth market, although market inquiry activities decreased, suppliers showed little willingness to sell at lower prices. Prices of products such as dysprosium and terbium therefore showed no significant fluctuations, maintaining overall stable operation. Overall, as downstream inquiry activities decreased near the weekend with price-pushing inquiries, Pr-Nd product prices saw a slight correction, while medium-heavy rare earth market prices remained relatively firm with stable overall operation. In the short term, as market trading activity picks up, Pr-Nd product prices are expected to move sideways. Institutional Views Guojin Securities research report noted: Rare earth: From the beginning of the year to date, the price center has been continuously rising, which we believe is likely highly correlated with supply-side policy documents issued from 2024 to 2025, as industry supply-side reform continues to advance. Full-year exports in 2025 were -1% YoY, while exports from early 2026 to date increased significantly, indicating that ex-China restocking demand remains substantial. The rare earth sector will continue to see dual appreciation in valuation and earnings, and 2026 is also a critical year for resolving horizontal competition among key targets. Resource side, we recommend attention to China Rare Earth (medium-heavy rare earth leader, biggest beneficiary of supply reform), China Rare Metals and Rare Earth (undervalued, high-growth South China rare earth leader), China Northern Rare Earth (light rare earth leader, significant cost advantages), Bao Gang United Steel (beneficiary of dual supply reform in rare earth and steel); magnetic material segment beneficiary: JL MAG Rare-Earth (magnetic material leader, robotics contributing growth potential). Other related targets include Zhenghai Magnetic Material and Ningbo Yunsheng. According to a Huaxi Securities research report: per the U.S. Geological Survey (USGS), rare earths are relatively abundant in the Earth's crust, but mineable reserves are less than most other mineral products. In 2025, global rare earth reserves were estimated at 85 million mt (in rare earth oxide equivalent, same below), of which China's reserves were 44 million mt, accounting for 51.76%. Production side, global rare earth production in 2025 was 380,000 mt, of which China's production was 270,000 mt, accounting for 71.05%. Midstream, 90% of smelting and processing demand in 2025 was handled by China. Downstream, according to Frost & Sullivan's forecast, global rare earth permanent magnet production in 2025 was 310,200 mt, of which sintered NdFeB production was 296,700 mt (95.65%); China's rare earth permanent magnet production was 284,200 mt (91.62% of global production), of which sintered NdFeB production was 271,800 mt (95.64%). Overall, global rare earth resources are highly concentrated, and China ranks first globally in both rare earth production and reserves. On November 7, 2025, the Ministry of Commerce and the General Administration of Customs jointly announced that from that date until November 10, 2026, six export control measures involving superhard materials, rare earth-related items, lithium batteries, and artificial graphite anode materials would be temporarily suspended, indicating some easing in China-US relations. The US government is actively rebuilding its domestic rare earth industry chain, with US magnet manufacturer eVAC recently shipping its first batch of NdFeB permanent magnets from its Sumter, South Carolina plant. However, in the short term, global rare earth permanent magnet production remains highly concentrated in China. Considering that ex-China capacity release still requires time and given the scale of China's new capacity, China remains the only country in the world with production capabilities across the entire rare earth industry chain for all product categories. The overall scale of the Western rare earth industry chain is far below that of China, with incomplete industry chains and obvious shortcomings. Looking ahead, although downstream new orders remain weak with most enterprises primarily digesting existing orders, some small and medium-sized enterprises' raw material inventory is approaching low levels, highlighting rigid restocking demand. According to a CITIC Securities research report, in 2025 and Q1 2026, earnings growth in the metals sector generally accelerated, with tungsten, lithium, lead-zinc, and rare earth magnetic materials leading the gains, while aluminum, copper, nickel-cobalt-tin-antimony, and gold performed relatively weakly since the beginning of the year. Current metals sector valuations remain at reasonable levels, with aluminum, copper, nickel-cobalt-tin-antimony, and gold valuations at relatively low levels, and valuation rebounds are still expected. Industry dividends pulled back slightly, but forecast dividend yields for some individual stocks still exceed 5%. Looking ahead to 2026, with liquidity shocks easing, supply disruptions occurring frequently, and certain downstream sectors sustaining relatively high prosperity, it is recommended to continue focusing on allocation opportunities in lithium, copper, rare earth, strategic metals, aluminum, and gold sectors. Recommended Reading:

SMM News, May 21: Metals market: As of the midday close, most base metals on the domestic market rose. SHFE copper gained 1.33%, SHFE aluminum rose 0.33%, SHFE lead climbed 1.55%, SHFE zinc advanced 1.47%, and SHFE tin surged 3.21%. SHFE nickel fell 0.57%. In addition, the most-traded casting aluminum futures rose 0.39%, the most-traded alumina contract gained 0.37%, the most-traded lithium carbonate contract rose 1.18%, the most-traded silicon metal contract climbed 0.35%, and the most-traded polysilicon futures rose 0.37%. Ferrous metals mostly rose. Iron ore fell 0.5%, rebar edged up, hot-rolled coil gained 0.23%, and stainless steel rose 0.41%. Coking coal and coke: the most-traded coking coal contract rose 0.33%, and the most-traded coke contract was flat at 1,774.5 yuan/mt. Overseas base metals: as of 11:32, LME metals generally fell. LME copper dropped 0.15%, LME aluminum was flat at 3,629 yuan/mt, LME lead rose 0.71%, LME zinc fell 0.1%, LME tin declined 0.53%, and LME nickel dropped 0.92%. Precious metals: as of 11:32, COMEX gold rose 0.12% and COMEX silver fell 0.26%. Domestic precious metals: the most-traded SHFE gold contract gained 0.89% and the most-traded SHFE silver contract rose 1.85%. In addition, as of the midday close, the most-traded platinum futures rose 0.74% and the most-traded palladium futures gained 0.47%. As of the midday close, the most-traded Europe containerized freight index contract rose 7.66% to 2,957.5 points. As of 11:32 on May 21, midday futures quotes for selected contracts: Spot cargo and fundamentals Nickel: On May 21, SMM #1 refined nickel prices rose 1,550 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,200 yuan/mt, down 250 yuan/mt from the previous trading day. Domestic mainstream brand electrodeposited nickel premiums ranged from -600 to 500 yuan/mt. Macro front China: [NDRC: To improve policy measures on fair competition, investment and financing, promotion of sci-tech innovation, and business regulation] Li Hui, Director of the Private Economy Development Bureau of the National Development and Reform Commission (NDRC), stated at a press conference held by the State Council Information Office that the NDRC will better leverage its coordination function in promoting private economy development, organize and carry out specific measures outlined in the action plan for safeguarding the private economy through the rule of law, and strengthen the implementation of the Private Economy Promotion Law. The NDRC will improve supporting systems and refine policy measures on fair competition, investment and financing, promotion of sci-tech innovation, and business regulation. It will continue to work with relevant departments to publish typical cases to illustrate the law through cases, conduct assessments of policy implementation effectiveness, promote direct and swift access to enterprise-friendly policies, and guide enterprises in enhancing their governance capabilities. [China's Enterprise Credit Index Reached 162.41 in April This Year, Maintaining a Positive Trend] According to the State Administration for Market Regulation, China's Enterprise Credit Index stood at 162.41 in April this year, up 0.15 points from March, with enterprise credit levels maintaining a positive trend. In April, the top 5 industries by credit index ranking were finance, electricity/heat/gas and water production and supply, education, manufacturing, and water conservancy/environment and public facilities management. Compared with the previous month, the indices for information transmission/software and information technology services, finance, and health and social work showed relatively notable increases, achieving positive growth for three consecutive months, with credit development trends continuing to improve. (CCTV News) [Qiushi Commentary Article: How to Thoroughly Address "Involution-Style" Competition in Manufacturing] The article pointed out that thoroughly addressing "involution-style" competition requires institutional innovation to drive competition toward quality upgrading. Only when government behavior is regulated and market mechanisms are streamlined can enterprises shift from low-price disorderly competition to value-based competition. A unified national market should be built to break down market segmentation, policies hindering fair competition should be resolutely eliminated, outdated capacity should be phased out in an orderly manner in accordance with laws and regulations to prevent "bad money driving out good," and competitive enterprises should be allocated resources commensurate with their competitiveness. Performance assessment reform should be used to correct government behavior, shifting assessment focus toward "quality" indicators such as development quality, technological innovation, and industrial coordination, aligning local government incentives with high-quality development, and curbing the impulse for homogeneous investment attraction at the source. Evaluation mechanism reform should be used to rectify competitive behavior, reversing the "price-only" tendency, establishing comprehensive evaluation mechanisms centered on technology, quality, and service, making premium quality at premium prices a market consensus, and guiding resources toward enterprises with strong innovation capabilities and high product value-added. The PBOC conducted 100 billion yuan of 7-day reverse repo operations in the open market at an interest rate of 1.40%, unchanged from the previous day. Today, 500 million yuan of reverse repos matured. US Dollar: As of 11:32, the US dollar index rose 0.05% to 99.19. The US Fed meeting minutes showed that participants anticipated elevated energy prices would continue to exert upward pressure on headline inflation in the near term. Participants generally expected that the impact of tariffs on core goods inflation would gradually diminish over the course of this year. However, some participants noted that tariff rates could rise further above current levels, resulting in greater upward pressure on inflation. Several participants emphasized that, after inflation had remained above 2% for several consecutive years, elevated inflation could have a greater influence on wage- and price-setting decisions. Almost all participants noted that the conflict in the Middle East could persist for an extended period, or even if the conflict ended, oil and other commodity prices could remain elevated for longer than expectations. In such a scenario, participants anticipated that factors such as supply chain disruptions, elevated energy prices, or the pass-through of higher input costs to other prices would continue to push inflation higher. The vast majority of participants noted that the time required for inflation to return to the Committee's 2% target could be longer than they had previously expected, and that risks had increased. The US Fed meeting minutes showed that regarding the monetary policy outlook, participants generally believed that persistently elevated inflation and uncertainty about the duration and economic impact of the Middle East conflict could necessitate maintaining the current policy stance for longer than expectations. Some participants emphasized that it might be appropriate to lower the target range for the federal funds rate once clear signs emerged that the pullback trend in inflation had steadily resumed, or signs of greater softness in the labour market appeared. However, most participants noted that if inflation remained persistently above 2%, some tightening measures might be necessary. To address this scenario, many participants indicated that they would prefer to remove language from the post-meeting statement that implied the Committee's future rate decisions might lean toward easing. Participants noted that monetary policy was not predetermined and that future policy decisions would be made on a meeting-by-meeting basis. According to the CME "FedWatch" tool: the probability of the US Fed maintaining rates unchanged through June was 97.3%, with a cumulative probability of a 25-basis-point interest rate cut at 2.7%. The probability of the US Fed maintaining rates unchanged through July was 87.2%, with a cumulative probability of a 25-basis-point interest rate cut at 2.4%, and a cumulative probability of a 25-basis-point rate hike at 10.4%. (Jin Shi Data) On the data front: Data to be released today include US initial jobless claims for the week ending May 16, US April annualized housing starts, US April building permits, US May Philadelphia Fed Manufacturing Index, US May S&P Global Manufacturing PMI preliminary reading, US May S&P Global Services PMI preliminary reading, Eurozone May Manufacturing PMI preliminary reading, Eurozone March seasonally adjusted current account, Eurozone May Consumer Confidence Index preliminary reading, France May Manufacturing PMI preliminary reading, Germany May Manufacturing PMI preliminary reading, UK May Manufacturing PMI preliminary reading, UK May Services PMI preliminary reading, UK May CBI Industrial Orders balance, and Australia April seasonally adjusted unemployment rate. In addition, attention should also be paid to the following: Bank of England Governor Bailey delivered a speech, and China's refined oil products were set to enter a new round of price adjustment window. Crude oil: As of 11:32, oil prices in both markets rose, with WTI up 0.94% and Brent up 0.83%. Supply concerns driven by market worries over the uncertain prospects of a US-Iran peace deal continued to support oil prices. In addition, declining US crude oil inventory also lent support to oil prices. EIA report: Commercial crude oil inventory, excluding the Strategic Petroleum Reserve, fell by 7.863 million barrels to 445 million barrels, a decline of 1.74%. The weekly EIA crude oil inventory drawdown for the week ending May 15 was the largest since the week of February 13, 2026. A research report from CITIC Securities noted that global oil inventory was declining sharply, intensifying the risk of energy shortages. The US-Israel-Iran conflict disrupted passage through the Strait of Hormuz, causing global oil inventory to plummet at a record pace and heightening the risk of summer energy shortages. The market temporarily cushioned the pressure by relying on previously surplus inventory, exemptions from Russian oil sanctions, and strategic petroleum reserve releases by multiple countries, while high oil prices also triggered a contraction in global oil demand. International oil prices are currently fluctuating at elevated levels, US refined product prices have hit multi-year highs, oil supplies in multiple energy-importing regions in Asia are on the verge of shortages, dragging down regional economic growth. Oil prices may still have significant upside room, and accelerating the development of renewable energy has become a long-term measure for countries to guard against energy risks. Sultan Al Jaber, CEO of the Abu Dhabi National Oil Company (ADNOC) of the UAE, said on the 20th that the UAE was building an east-west oil pipeline bypassing the Strait of Hormuz. The project was nearly 50% complete and is expected to be completed and operational by 2027. According to the UAE's Gulf News, Al Jaber said at an online event hosted by the US think tank Atlantic Council that a large volume of global energy transportation still relied on a few critical maritime chokepoints, and the UAE hoped to reduce its dependence on the Strait of Hormuz and enhance the security of energy exports through this project. (Xinhua) Goldman Sachs stated that as the Middle East war continued and supply remained constrained, global crude oil and refined product inventory was being depleted at a record pace this month. Goldman Sachs analysts noted in a report dated May 20 that since the beginning of May, visible inventory had been declining at a record rate of 8.7 million barrels per day, nearly double the average pace since the outbreak of the conflict. They stated, "The physical market continues to tighten, and oil exports through the Strait of Hormuz are estimated to remain at only 5% of normal levels." Goldman Sachs analysts noted that two-thirds of the inventory decline in May was driven by a reduction in so-called "oil on water," with exports falling more than imports. The import slump is now "spreading from Asia to Europe," they noted, with European jet fuel imports 60% below the 2025 average. (Jin10 Data) Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ► ►

SMM May 21 News: Spot prices of tin, tantalum, and Pr-Nd oxide rose, and high molybdenum prices helped drive the minor metal sector higher. As of 10:22 on May 21, the minor metal sector was up 2.41%. In terms of individual stocks: Eastern Tantalum and China Tungsten High-Tech gained over 6%, while Haotong Technology, Tin Industry Co., Eastern Zirconium, Jinduicheng Molybdenum, and Huaxi Nonferrous led the gains. This rally was directly driven by improving spot market fundamentals, compounded by a weakening US dollar, strengthening strategic resource attributes, and emerging demand (AI, semiconductors, PV), which continued to fuel market expectations of a tight supply-demand balance in minor metals. Some market capital showed increased willingness to flow in, driving a rebound in the minor metal sector. Spot Market Tantalum The quoted price of tantalum ingot (Ta≥99.95%) on May 20 was 6,600-6,700 yuan/kg, with an average price of 6,650 yuan/kg, up 1.53% from the previous trading day. Recently, the tantalum market reached a turning point, with tantalum prices successfully hitting bottom, stabilizing, and initiating a rebound, with the industry's upward trend gradually becoming clearer. Currently, low-priced supplies within the industry chain are being circulated and cleared at an accelerated pace, quoted prices across all product categories are rising in tandem, and the overall market is steadily improving. Driven by expectations of positive news, some smelters proactively tightened their shipment pace and suspended external quotations. Available low-priced supplies in the market were essentially exhausted, and bullish sentiment among traders and suppliers continued to intensify. Combined with steadily rising upstream tantalum ore raw material costs providing strong support, tantalum oxide and tantalum ingot prices are expected to continue their steady rise going forward. Tin On May 21, the average price of SMM 1# tin rose 3.82% from the previous trading day. As tin prices rose, wait-and-see sentiment in the market intensified, and market transactions were sluggish. Currently, from a fundamental perspective: Supply side, most smelters maintained stable production as their main focus in May; Demand side, downstream purchasing remained cautious, with most purchases made according to order requirements. Rare Earth Spot market, on May 21, supported by demand from major manufacturers' procurement, the average price of Pr-Nd oxide rose 1.81% from the previous trading day. Yesterday afternoon, inquiry and procurement activities from magnetic material enterprises increased significantly, which directly boosted market trading activity. Affected by this, Pr-Nd oxide futures prices stopped falling and recovered today, and some Pr-Nd oxide traders chose to hold back from selling, which in turn pushed up Pr-Nd oxide spot prices as well. However, as downstream inquiry prices were relatively low, actual transaction performance was mediocre. In the short term, driven by the continued increase in downstream inquiry and procurement activities, Pr-Nd product prices are expected to move sideways and hold up well. Institutional Views Guojin Securities pointed out in a research report on May 18: Rare earths: From the beginning of the year to date, the price center has been continuously raised, which we believe is likely highly correlated with supply-side policy documents released from 2024 to 2025, as industry supply-side reform continues to advance. Full-year exports in 2025 were down 1% YoY, while exports since the beginning of 2026 have increased significantly, indicating that ex-China restocking demand remains substantial. The rare earth sector will continue to see dual upgrades in valuation and earnings, and 2026 is also a critical year for key targets to resolve horizontal competition issues. Tin: Guojin Securities believes that tin ingot invisible inventory is gradually drying up, and therefore tin prices are expected to strengthen amid macro liquidity replenishment or technology sector spillover effects. The tin supply-demand pattern is expected to improve over the long term. Molybdenum: Molybdenum concentrates were priced at 5,210 yuan/mtu this period, up 10.50% MoM; ferromolybdenum was priced at 324,000 yuan/mt this period, up 9.46% MoM. Imported ore has been drawn down to a significant extent, and domestic molybdenum prices have stabilized and rebounded. Steel bidding volumes remained robust, with destocking across the industry chain, gradually breaking the deadlock of "volume without price" in molybdenum, and the upward channel has become further confirmed. Molybdenum is also a defense metal, with inventory persistently low, and increased ex-China national defense spending may further boost molybdenum prices. Tantalum: The tantalum industry is expected to benefit from the upward cycle driven by high-end demand boost. Related targets: Eastern Tantalum, Xinjinlu, Jiangwu Equipment. CITIC Securities issued a research report on May 13, stating that in Q1 2025 and Q1 2026, earnings growth in the metals sector generally accelerated, with tungsten, lithium, lead-zinc, and rare earth magnetic materials leading the gains, while aluminum, copper (copper: BK1615 3,885.79, 0.58%), nickel-cobalt-tin-antimony, and gold have performed relatively weakly since the beginning of the year. Current metals sector valuations remain at reasonable levels, with aluminum, copper, nickel-cobalt-tin-antimony, and gold valuations at relatively low levels, and valuation rebounds remain promising. Industry dividends pulled back slightly, but projected dividend yields for some individual stocks still exceed 5%. Looking ahead to 2026, with liquidity shocks easing, supply disruptions occurring frequently, and select downstream sectors sustaining relatively high prosperity, it is recommended to continue focusing on allocation opportunities in lithium, copper, rare earths, strategic metals, aluminum, and gold sectors. Guotai Haitong Securities believes that rare earth prices have been gradually consolidating at lows since 2024, with the slowdown in domestic quota allocation continuing, and while expectations for ex-China rare earth development have been fermenting, actual progress may fall short of expectations. On the demand side, NEVs, home appliances, wind power, and other sectors have maintained the fundamental demand base, while humanoid robots represent a long-term upside option, and the curtain on a supply-demand reversal has already been gradually rising. As a strategic commodity in China, rare earth is expected to see a double boost in both earnings and valuation. Recommended reading:

When asked, "What were the sales volume and pricing of copper foil produced by your company in April 2026?" North Copper responded on May 19 via the investor interaction platform: The company's copper foil sales are performing well with balanced production and sales; the product is priced and sold on a market-based basis according to market supply and demand. North Copper also responded on May 19: The company's share price fluctuations are influenced by a combination of factors including the macro environment, market sentiment, capital flows, and the company's own performance. The recent share price fluctuations have been largely in line with the trend of publicly listed firms in the copper sector. The company has always focused on enhancing intrinsic value as the core of its market capitalization management, and is committed to the long-term alignment of corporate value and market performance through focusing on core business growth, optimizing governance structure, strengthening information disclosure, and implementing shareholder return plans. The content of the earnings briefing announced by North Copper on May 8 showed: 1 What is the current construction progress of the new 10kt rolled copper foil production line, and in which month of 2026 is it expected to be completed? North Copper responded: Some production lines of the company's 50,000 mt/year high performance rolled copper strip and foil and 2 million m² CCL project have reached the intended usable condition. The main products include high performance copper and copper alloy strip and rolled copper foil, of which copper alloy strip capacity is 25,000 mt/year and rolled copper foil capacity is 5,000 mt/year. 2 What caused the negative operating cash flow, and what is the impact on the company going forward? North Copper responded: The negative net cash flow from operating activities in Q1 was mainly due to two reasons: first, rising non-ferrous metal prices led to higher overall value of copper raw materials, increasing capital occupation; second, under the impact of geopolitical factors, international shipping rerouting and tight domestic railway dispatching caused copper raw material arrivals at the plant to be delayed versus plan, extending the capital turnover period. The company's current cash flow level can effectively support daily operations and debt repayment. Going forward, the company will take targeted measures to improve the situation. 3 Questions regarding the progress of Hujiaoyu mine asset injection. Specifically: Has the preliminary preparation work for the asset injection (such as auditing, valuation, and plan evaluation) been initiated? Does the company plan to complete this asset injection within 2026? Are there any material obstacles or uncertainties in the process that need to be disclosed to investors? Beyond strictly fulfilling the commitment to inject within 24 months, does the company's management have a clear goal and timetable to "strive for early completion"? What specific stage has the related work progressed to? North Copper responded: Hujiaoyu Mining Company, a subsidiary of the company's controlling shareholder Zhongtiaoshan Group, obtained the mining permit for newly added reserves on March 27, 2026. Preliminary work for obtaining the mine safety production permit is currently being actively advanced, and the conditions for injection into the publicly listed firm are not yet met. The company will initiate the asset injection process in a timely manner after all the above mining permits are obtained, fulfilling the relevant commitments. 4 After the completion of the 50,000 mt rolled copper foil and strip project, are there any further plans for new copper foil capacity construction and expansion? North Copper responded: Some production lines of the company's 50,000 mt/year high performance rolled copper strip and foil and 2 million m² CCL project have not yet been completed, and capacity has not been fully released. There are currently no new copper foil capacity expansion plans. 5 How does the company's management plan to manage market capitalization? North Copper responded: In accordance with the requirements of Regulatory Guidelines for Listed Companies No. 10 — Market Capitalization Management, the company will make comprehensive utilization of lawful and compliant methods, promote positive interaction between value and market capitalization through improving operational quality, strengthening information disclosure, and deepening investor communication, continuously improve and strengthen market capitalization management, and carry out scientific, effective, and compliant market capitalization management practices. 6 Given the strong Q1 2026 results, the share price has underperformed peers with weaker results. Does the company have any undisclosed adverse events? North Copper responded: In addition to operating performance, the company's share price is also influenced by various factors including the international situation, policy environment, financial market liquidity, capital market atmosphere, and investor psychological expectations. The company strictly fulfills its information disclosure obligations in accordance with relevant laws and regulations, and there are no material matters that should have been disclosed but were not. 7 What new progress will the company make in smart mines and digital factories this year? North Copper responded: The company will continue to advance the construction of smart mines and digital factories, deepen and expand new scenarios for digital-intelligent integration applications, and accelerate the implementation of the Tongkuangyu mine smart mine project. Within the year, the company plans to complete the installation of system equipment for the data center, integrated management and control hall, and other facilities. The digital-intelligent building is expected to be completed and put into operation. The 5G smart communication hub, industrial-grade ring network, and LHD operation positioning and metering projects are expected to achieve phased results, effectively enhancing the digital-intelligent level and operational efficiency of mining operations. 8 What are the main directions of R&D expenditure? North Copper responded: The company's R&D expenditure is focused on six core areas: resource reserve expansion and production increase, efficient mining and beneficiation technologies, smelting technology innovation, high-end copper-based materials, comprehensive utilization of resources, and intelligent mining. North Copper's Q1 2026 report released on April 29 showed: In Q1, the company achieved revenue of 10.044 billion yuan, up 46.89% YoY; net profit attributable to the parent company's shareholders was 615 million yuan, up 65.74% YoY. Regarding the reason for the revenue increase, North Copper stated in its Q1 report: It was mainly due to increased product sales volume and price increases. In addition, North Copper's 2025 annual report showed: The company achieved revenue of 27.916 billion yuan in 2025, up 15.80% YoY; net profit attributable to the parent company's shareholders was 791 million yuan, up 29.01% YoY. Major product production in 2025: copper cathode 300,300 mt, sulphuric acid 766,000 mt, gold ingots 6.4 mt, and silver ingots 68.5 mt. North Copper stated in its 2025 annual report: The company is primarily engaged in copper mining, ore beneficiation, smelting, and rolling processing. It currently has captive mines with annual ore processing of 9 million mt and self-produced copper metal content of 43,000 mt, copper smelting capacity of 320,000 mt, gold ingots 10.8 mt, silver ingots 170 mt, and sulphuric acid 1.22 million mt. It also recovers valuable metals including platinum, palladium, selenium, and bismuth through comprehensive utilization. Copper deep-processing products include high performance copper and copper alloy strip and rolled copper foil, of which copper alloy strip capacity is 25,000 mt/year and rolled copper foil capacity is 5,000 mt/year. The company has established an integrated industry chain from mining, ore beneficiation, smelting to rolling processing. The company's "Zhongtiaoshan" brand Grade-A copper is registered on the Shanghai Futures Exchange and the Shanghai International Energy Exchange, and the "Zhongtiaoshan" brand gold and silver ingots are registered on the Shanghai Futures Exchange. The company's mineral exploration status disclosed in North Copper's 2025 annual report showed: The company completed the detailed exploration project for deep replacement resources at the Tongkuangyu copper mine (below the 80m elevation), with the following main work completed: exploration tunnels 140.6 m, drilling chambers 12/2,823.6 m³, drilling 12 holes (including 3 hydrogeological holes), drilling volume 7,268.62 m, 1:2000 specialized hydrogeological and environmental geological survey 6 km², geophysical logging 2,065.61 m, and pumping tests on 3 holes; 8,091 sample analyses and tests, 46 sets of rock and ore tests, 99 bulk density samples, 20 copper phase analyses, 10 complete chemical analyses, and 12 complete water quality analyses. On February 20, 2025, the Shanxi Mining Association organized and completed the supervision and field acceptance of the detailed exploration project, issuing the supervision report and field acceptance report. In early March, the company completed the compilation of the Detailed Hydrogeological and Environmental Survey Report for the Deep Part of Tongkuangyu Mine. On March 17, the report was reviewed and approved by experts organized by the Shanxi Mining Association. In May, the company completed the compilation of the Detailed Exploration Report for Deep Replacement Resources at Tongkuangyu Copper Mine, Yuanqu County, Shanxi Province (hereinafter referred to as the Report). On May 23, the report was reviewed and approved by experts organized by the Shanxi Mining Association, and review opinions were issued. According to the Report, as of December 31, 2024, within the 80m to -325m elevation range of the Tongkuangyu mining area, the cumulative identified industrial ore body (No. 5) copper ore resources totaled 103.718 million mt, with an average grade of 0.84% and metal content of 869,600 mt. Associated gold metal content was 8,930 kg with an average grade of 0.09 g/t; associated molybdenum metal content was 3,727 mt with an average grade of 0.011%. Low-grade copper ore resources totaled 34.625 million mt, with an average grade of 0.25% and metal content of 88,200 mt. The explored resources reached a large scale, achieving significant exploration results and providing solid resource support for the company's industry chain layout. Regarding the company's copper ore resource reserves, North Copper disclosed in its annual report that as of the end of 2025, the Tongkuangyu mine retained copper ore resources of 4.664 million mt above the 80m elevation, with copper metal content of 1.2501 million mt. Meanwhile, below the 80m elevation at the bottom of the company's existing Tongkuangyu mine mining rights, the cumulative identified industrial ore body (No. 5) copper ore resources totaled 3.718 million mt, with an average grade of 0.84% and metal content of 869,600 mt. Regarding the 2026 production and operation plan, North Copper mentioned in its 2025 annual report: Major product production targets: copper cathode 300,000 mt, sulphuric acid 800,000 mt, gold ingots 6 mt, and silver ingots 60 mt, to maximize economic benefits. Regarding the outlook for copper, some institutions hold the following views: Tony Sage, CEO of Critical Metals, noted in a recent report that market participants remain bullish on the copper price outlook, driven by long-term demand from AI infrastructure, power grid modernization, and the global energy transition, coupled with supply constraints. He added that in the long run, the copper market may face a potential supply deficit, which will provide support for copper prices. (Jin10 Data) A CITIC Securities research report noted that as Freeport once again delayed the production resumptions schedule for its Indonesian project and comprehensively lowered its production guidance for 2026-2027, global major miners' 2026 production expectations have officially entered a decline, and the potential impact of subsequent extreme weather may further amplify supply disruptions. We expect that the solid supply-demand fundamentals demonstrated by the better-than-expected destocking in China, along with easing macro headwinds, will support copper prices to stabilize at $13,000/mt in 2Q26, while the gap between supply-demand expectations could drive copper prices to challenge previous highs. We are optimistic about the allocation opportunity in the copper sector where earnings elasticity and valuation elasticity resonate.

SMM May 13 News: Metals market: As of the midday close, base metals in the domestic market generally rose. SHFE copper gained 1.63%. SHFE aluminum rose 0.3%. SHFE lead fell 0.15%. SHFE zinc gained 1.46%. SHFE tin rose 0.08%. SHFE nickel edged down. In addition, the most-traded casting aluminum futures rose 0.15%, the most-traded alumina futures fell 0.71%. The most-traded lithium carbonate futures fell 3.55%. The most-traded silicon metal futures fell 2.74%. The most-traded polysilicon futures fell 0.62%. Ferrous metals mostly fell. Iron ore was flat at 817.5 yuan/mt. Rebar fell 0.7%. Hot-rolled coil fell 0.57%. Stainless steel rose 0.16%. Coking coal and coke: the most-traded coking coal contract fell 2.51%, and the most-traded coke contract fell 1.28%. Overseas base metals, as of 11:41, LME metals rose across the board. LME copper gained 0.6%. LME aluminum rose 0.24%. LME zinc gained 0.4%. LME lead rose 0.3%. LME tin gained 1.29%. LME nickel rose 0.87%. Precious metals, as of 11:41, COMEX gold rose 0.48%, and COMEX silver gained 1.99%. Domestic precious metals: the most-traded SHFE gold contract fell 0.55%, and the most-traded SHFE silver contract rose 1.1%. In addition, as of the midday close, the most-traded platinum futures edged down, and the most-traded palladium futures fell 1.03%. As of the midday close, the most-traded Europe containerized freight index contract rose 3.17%, closing at 2,539.5 points. As of 11:41 on May 13, midday futures quotes for selected contracts: Spot and Fundamentals Copper: Looking ahead to tomorrow, copper prices continue to fluctuate at highs, downstream purchasing sentiment remains subdued, intraday buying and selling sentiment both pulled back, and spot discounts continued to widen. According to SMM, downstream orders continued to decline from the previous day... Macro Front [China-US Economic and Trade Consultations Begin in South Korea] At noon local time on May 13, the economic and trade teams of China and the US began China-US economic and trade consultations at Incheon International Airport in Seoul, South Korea. (Xinhua) Domestic: [PBOC Reverse Repo Operations Achieved Net Withdrawal of 25.5 Billion Yuan on the Day] The PBOC conducted 500 million yuan of 7-day reverse repo operations today. As 26 billion yuan of 7-day reverse repos matured today, a net withdrawal of 25.5 billion yuan was achieved on the day. US dollar: As of 11:41, the US dollar index rose 0.01%, at 98.31. The US CPI rose faster than expected in April, further intensifying concerns about the impact of inflation on the US economy. The Bureau of Labor Statistics reported on Tuesday that, after seasonal adjustment, the overall CPI rose 0.6% MoM and 3.8% YoY. The monthly increase was in line with expectations, but the YoY increase was 0.1 percentage point higher than market expectations. Core CPI, excluding food and energy, rose 0.4% and 2.8% respectively, indicating that although inflation remained well above the US Fed's 2% target, pressure mainly came from non-core areas, especially energy. Energy prices rose 3.8%, once again becoming one of the main drivers of rising inflation; food prices also rose 0.5%. For the full year, energy prices rose 17.9% and food prices rose 3.2%. Gasoline price index was up 28.4% YoY. Although energy, especially gasoline, was the main news focus, inflationary pressures also came from multiple other areas. Housing costs rose 0.6%, tariff-sensitive apparel prices rose 0.6%, airfares rose 2.8% with a YoY increase of 20.7%. Tariffs also appeared to have affected other areas, with household furnishings and related expenditures rising 0.7%. (Jin10 Data) According to the CME "Fed Watch": the probability of the US Fed maintaining rates unchanged through June was 97.1%, with a 2.9% probability of a cumulative 25 basis point interest rate cut. The probability of the US Fed maintaining rates unchanged through July was 96%, with a 3.9% probability of a cumulative 25 basis point interest rate cut. (Jin10 Data) A CITIC Securities research report stated that US April inflation continued to run hot, the spillover effects of the Middle East conflict persisted, and compensatory increases in rent inflation pushed up core readings. High inflation continued to erode the real purchasing power of US households, with low-income households facing stronger cost shocks, and real hourly wages YoY turned negative for the first time in three years. We believe the risk of a second wave of US inflation is relatively small, but high oil prices will constrain the room for inflation to pull back within the year. Under the base case scenario, the US Fed is still expected to cut interest rate by 25bps within the year. US Treasuries are currently more suited for trading opportunities. After the strong earnings season nears its conclusion, US equities should be watched for short-term risks of profit-taking. The US dollar index may remain in the doldrums below 100 rather than on a sustained downtrend. Other currencies: According to a latest estimate by the OECD, the Bank of Japan's benchmark interest rate is expected to reach 2% by the end of 2027. The report noted that, assuming inflation remains around 2%, the current interest rate is still close to the lower bound of the neutral rate range for the economy. The report also recommended that the Bank of Japan should continue to gradually raise interest rates to prevent the economy from overheating. The Bank of Japan previously estimated that Japan's nominal neutral interest rate was between 1.1% and 2.5%, but noted that there was significant uncertainty regarding the specific level. (Jin10 Data) On the macro front: Data to be released today include France's Q1 ILO unemployment rate, France's April CPI MoM final reading, eurozone Q1 GDP YoY revised reading, eurozone Q1 seasonally adjusted employment QoQ final reading, eurozone March industrial output MoM, US April PPI YoY, and US April PPI MoM. In addition, attention should be paid to: Chicago Fed President Goolsbee participating in a Q&A session hosted by a local chamber of commerce; 2028 FOMC voter and Boston Fed President Collins delivering a speech at the Boston Economic Club; Vice Premier He Lifeng leading a delegation to South Korea from May 12–13 for trade consultations with the US side; and US President Trump's state visit to China. Crude oil: As of 11:41, oil prices in both markets fell, with WTI down 1.03% and Brent down 1.06%. Iran presented its "entry ticket" for nuclear talks with the US, including unfreezing assets and recognizing sovereignty over the Strait of Hormuz. Trump stated: "When negotiating with Iran, I don't consider the financial situation of the American people. I don't consider anyone." Meanwhile, the US Secretary of Defense said the Iran ceasefire agreement remained in effect. (Jin10 Data) American Petroleum Institute (API) data showed that US crude oil inventory fell for the fourth consecutive week last week, while gasoline inventory increased. US API crude oil inventory for the week ending May 8 was -2.188 million barrels, versus expectations of -1.654 million barrels and a prior reading of -8.141 million barrels. US API gasoline inventory for the week ending May 8 was 502,000 barrels, versus expectations of -2.549 million barrels and a prior reading of -6.107 million barrels. The EIA Short-Term Energy Outlook report indicated that if the Strait of Hormuz were closed through the end of June, crude oil prices would be $20/barrel higher than the current forecast, which assumes reopening by the end of May. (Jin10 Data) Spot Market Overview: ► ► ► ► ► ► ► ► ►

[JPMorgan: Overall Auto Market Recovery Remains Weak, BYD's Full-Year Sales Still Expected to Grow Against the Trend] JPMorgan stated that despite cooling demand in the overall EV market, BYD is expected to achieve positive sales growth for the full year, benefiting from improved expectations in the Chinese market and aggressive global expansion. In a research report released after post-holiday communication and survey with BYD's management, the investment bank's analysts noted that BYD expects domestic sales to reach 3.5 million to 4 million units this year. This performance guidance implies that its China domestic market growth could reach up to 13%, far exceeding market analysts' previous widespread expectations of flat sales or even a slight decline.

SMM May 11 News: Metals market: As of the midday close, domestic market base metals mostly rose. SHFE copper was up 1.01%, SHFE aluminum up 0.86%, SHFE lead edged down slightly, SHFE zinc fell 0.6%, SHFE tin was up 0.38%, and SHFE nickel up 0.86%. In addition, the most-traded casting aluminum futures rose 1.09%, the most-traded alumina contract fell 0.81%, the most-traded lithium carbonate contract rose 3.1%, the most-traded silicon metal contract rose 1.66%, and the most-traded polysilicon futures fell 2.8%. Ferrous metals mostly rose. Iron ore was up 0.86%, rebar up 0.52%, hot-rolled coil up 0.46%, and stainless steel down 0.07%. Coking coal and coke: the most-traded coking coal contract rose 0.85%, and the most-traded coke contract rose 1.65%. Overseas market base metals, as of 11:46, LME metals were nearly all up. LME copper rose 0.59%, LME aluminum up 0.67%, LME zinc down 0.31%, LME lead edged up slightly, LME tin up 1.16%, and LME nickel up 1.29%. Precious metals, as of 11:46, COMEX gold fell 0.77% and COMEX silver rose 0.66%. Domestic market precious metals: the most-traded SHFE gold contract fell 0.96%, and the most-traded SHFE silver contract rose 0.68%. In addition, as of the midday close, the most-traded platinum futures rose 0.14%, and the most-traded palladium futures fell 0.62%. As of the midday close, the most-traded Europe containerized freight index contract rose 5.07% to 2,474.5 points. As of 11:46 on May 11, midday futures quotes for selected contracts: Spot and Fundamentals Lead: An SMM survey showed that in April, refined lead supply from secondary lead enterprises edged up MoM, mainly driven by production resumptions at previously idled enterprises and restocking of raw materials to boost output... Macro Front China: [NBS: April CPI Up 1.2% YoY, PPI Up 2.8% YoY, PPI Growth Expanded] NBS data showed that in April 2026, the national consumer price index rose 1.2% YoY. Among them, urban areas were up 1.2% and rural areas up 1.0%; food prices fell 1.6%, while non-food prices rose 1.8%; consumer goods prices rose 1.4%, and services prices rose 0.9%. On average from January to April, the national CPI was up 0.9% YoY. In April, the national CPI rose 0.3% MoM. Among them, urban areas were up 0.3% and rural areas up 0.1%; food prices fell 1.6%, while non-food prices rose 0.7%; consumer goods prices rose 0.1%, and services prices rose 0.5%. In April 2026, national industrial producer ex-factory prices rose 2.8% YoY and 1.7% MoM. Industrial producer purchase prices rose 3.5% YoY and 2.1% MoM. For the January–April average, industrial producer ex-factory prices were up 0.2% from the same period last year, and industrial producer purchase prices were up 0.5%. Dong Lijuan, Chief Statistician of the Urban Division of the National Bureau of Statistics (NBS), interpreted the April 2026 CPI and PPI data. The main characteristics of PPI MoM movements this month were as follows: First, international input factors drove up prices in China's petroleum-related industries. Rising international crude oil prices drove up prices in domestic petroleum-related industries. Specifically, prices in the petroleum and natural gas extraction industry rose 18.5% MoM, petroleum, coal, and other fuel processing industry prices rose 16.4%, chemical raw materials and chemical products manufacturing prices rose 8.3%, chemical fiber manufacturing prices rose 5.6%, and rubber and plastics products industry prices rose 1.7%. Second, increased demand in some domestic industries drove prices higher. Rapid growth in computing power demand and accelerated electrification pushed optical fiber manufacturing prices up 22.5% MoM, external storage devices and components prices up 3.2%, and non-ferrous metal smelting and rolling processing industry prices up 0.2%. Restocking demand for thermal coal was released, combined with increased non-power coal demand from chemical and metallurgical industries, driving coal mining and washing industry prices up 1.9%. Continued advancement of manufacturing equipment upgrades drove increased steel demand, pushing ferrous metals smelting and rolling processing industry prices up 0.6%. Third, competition order in the Chinese market continued to improve, with prices in related industries rising or declines narrowing. Efforts to address "involution-style" competition continued to show results, with lithium-ion battery manufacturing prices up 1.6% MoM, new energy vehicle manufacturing prices down 0.1%, with the decline narrowing by 0.7 percentage points from the previous month. The PBOC conducted 500 million yuan in 7-day reverse repo operations today. As no reverse repos matured today, a net injection of 500 million yuan was achieved. US dollar: As of 11:46, the US dollar index was up 0.24% at 98.08. Data from the US Department of Labor showed that US April non-farm payrolls added 115,000 jobs, far exceeding expectations, thanks to strong corporate earnings and enterprises' effective response to supply chain disruptions triggered by the Iran war. The unemployment rate held steady at 4.3%, in line with economists' expectations. From trade to immigration to tax policy, changes across various fronts posed challenges for enterprises, but most did not resort to large-scale layoffs. At the same time, enterprises appeared to take various intertwined headwinds in stride. Robust consumer demand meant that despite news of high-profile layoffs at well-known companies, low hiring was often accompanied by relatively low levels of layoffs. Data from the Department of Labor and human resources firm ADP earlier this week showed that the job market was stabilizing. Strong hiring in healthcare and social assistance also underpinned overall employment figures. US equities at or near record highs boosted confidence among corporate CEOs. The full impact of the conflict with Iran and the resulting rise in energy prices had yet to manifest in the labour market. Rising US oil prices had put greater pressure on lower-income households, which could dampen travel and services spending, in turn dragging on hiring in sectors such as retail and leisure. The impact of higher oil prices was particularly severe for airlines. However, these effects had yet to show up clearly in monthly employment data. According to the CME "Fed Watch": the probability of the US Fed holding rates unchanged through June was 93.8%, with a 6.2% probability of a cumulative 25 basis point interest rate cut. The probability of the US Fed holding rates unchanged through July was 88.8%, with a 10.8% probability of a cumulative 25 basis point cut and a 0.3% probability of a cumulative 50 basis point cut. (Jin10 Data) Goldman Sachs expects the US Fed to cut interest rates by 25 basis points each in December 2026 and March 2027, compared with its previous forecast of cuts in September and December this year. A CITIC Securities research report noted that US nonfarm payrolls in April 2026 came in above expectations, while the unemployment rate of 4.3% was in line with expectations. We believe April data better reflected the current state of the US job market than the previous two months: first, one-off factors diminished in April; second, the enterprise response rate was higher in April; and third, the Birth-death model impact was the smallest among the last four data releases. Demand side, the US labour market in April exhibited overall resilience with marginally increasing layoff pressure. Supply side, the labour force participation rate and employment-population ratio declined, but the prime-age (25–54) participation rate remained stable, suggesting it was not a large-scale exit of core labour force but rather aging and retirement factors dragging down the overall participation rate. Regarding US Fed monetary policy, we maintain our previous view: after Waller takes over, if the Iran situation eases and oil prices pull back, driving inflation expectations lower, the base case for H2 is one interest rate cut of 25 bps. Other currencies: Bearish yen positions decreased significantly after Japanese authorities intervened to support the yen, highlighting how official action curbed this crowded trade. According to data from the US Commodity Futures Trading Commission (CFTC), leveraged funds reduced their net short positions on the yen in the week ending May 5. Currently, their net short position in the Japanese yen stood at 61,340 contracts, valued at approximately $4.9 billion, hitting the lowest level in nearly a month. Meanwhile, asset management firms also cut 13,839 short contracts, bringing their open interest down to 10,653 contracts. "Given the intervention risk and strong official warnings, chasing yen shorts near the 160 level has become unattractive," said Stefan Rittner, Senior Portfolio Manager at Allianz Global Investors. He held a neutral stance on the USD/JPY exchange rate. However, he noted that "despite the yen's already cheap valuation, persistent structural headwinds limit the scope for a sustained rebound"; moreover, further intervention risks are expected to rise once the USD/JPY rate approaches its previous highs again. (Jin10 Data) On the macro front: Data to be released today include US April existing home sales annualized total and China's April M2 money supply year-on-year. In addition, attention should be paid to: US Treasury Secretary Bessent's visit to Japan, where he will meet with the Japanese Prime Minister, the central bank governor, and the Finance Minister. Crude oil: As of 11:46, oil prices in both markets surged significantly, with WTI up 4.65% and Brent up 4.17%. Renewed tensions between the US and Iran supported oil prices. According to Xinhua News Agency, US President Trump posted on social media on May 10, expressing dissatisfaction with Iran's response, calling it "completely unacceptable." This statement cast a shadow over the already fragile Middle East ceasefire situation. Oil prices jumped sharply after the news broke. (Wallstreetcn) Data from shipping intelligence firm Kpler showed that two more fully loaded crude oil tankers switched off their trackers while passing through the Strait of Hormuz last week to evade Iranian attacks. Data indicated that the very large crude carrier "Basrah Energy" loaded 2 million barrels of Upper Zakum crude oil from ADNOC's Zirku terminal on May 1 and passed through the Strait of Hormuz on May 6. The vessel discharged its cargo at the Fujairah tanker terminal on May 11. It remained unclear which company chartered the tanker owned and managed by shipping company Sinokor. ADNOC and its buyers had recently dispatched tankers through the Strait of Hormuz on multiple occasions to transport crude oil, in response to the issue of stranded oil in the Persian Gulf caused by Middle East conflicts. Another very large crude carrier, Kiara M, switched off its transponder and departed the Persian Gulf on Sunday, carrying 2 million barrels of Iraqi crude oil. The discharge destination of this San Marino-flagged tanker remained unclear. (Jin Shi Data) Spot Market Overview: ► ► ► ► ► ► ► ► ► ►

SMM May 7: Metals market: As of the midday close, base metals in the domestic market showed mixed performance. SHFE copper rose 0.43%, SHFE aluminum fell 1.76%, SHFE lead fell 0.36%, SHFE zinc rose 0.41%, SHFE tin rose 3.16%, and SHFE nickel fell 3.33%. In addition, the most-traded casting aluminum futures fell 1.85%, the most-traded alumina contract rose 0.49%, the most-traded lithium carbonate contract rose 0.08%, the most-traded silicon metal contract rose 2.03%, and the most-traded polysilicon futures rose 4.79%. Ferrous metals showed mixed performance. Iron ore rose 0.55%, rebar rose 0.68%, hot-rolled coil rose 0.29%, and stainless steel fell 1.12%. Coking coal and coke: the most-traded coking coal contract fell 1.22%, and the most-traded coke contract fell 1.2%. Overseas base metals, as of 11:41, LME metals mostly fell. LME copper fell 0.22%, LME aluminum fell 1.16%, LME lead rose 0.23%, LME zinc fell 0.29%, LME tin fell 1.71%, and LME nickel fell 0.13%. Precious metals, as of 11:41, COMEX gold rose 0.39% and COMEX silver rose 1.35%. Domestic precious metals: the most-traded SHFE gold contract rose 1.11%, and the most-traded SHFE silver contract rose 3.43%. In addition, as of the midday close, the most-traded platinum futures rose 3.21%, and the most-traded palladium futures rose 1.71%. As of the midday close, the most-traded Europe containerized freight index contract fell 3.35%, closing at 2,355.5 points. As of 11:41 on May 7, midday futures quotes for selected contracts: Spot cargo and fundamentals Nickel: On May 7, SMM #1 refined nickel prices fell 5,050 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,150 yuan/mt, down 100 yuan/mt from the previous trading day... Macro front China: [PBOC reverse repo operations resulted in a net drain of 99.2 billion yuan for the day] The PBOC conducted 27 billion yuan of 7-day reverse repo operations today. As 126.2 billion yuan of 7-day reverse repos matured today, a net drain of 99.2 billion yuan was achieved for the day. [HKEX CEO: LME warehouses in Hong Kong nearing full capacity] HKEX CEO Bonnie Y. Chan said that the storage capacity of a series of LME-approved warehouses in Hong Kong was nearing saturation. The LME began approving metal warehouses in Hong Kong last year. Speaking at a seminar during LME Asia Week in Hong Kong, Chan said the LME currently had 15 warehouses in Hong Kong, compared with just 4 a year ago. She called this an important milestone in establishing physical market connectivity. LME and Hong Kong Exchanges will explore more collaborative projects, including futures and RMB-denominated products, to build a comprehensive commodities ecosystem in Asia. (Jin10 Data) US dollar: As of 11:41, the US dollar index fell 0.01% to 98.01. Chicago Fed President Goolsbee said on Wednesday that the war with Iran increasingly appeared to be an inflationary shock to the economy. Although the impact on employment and economic growth was not yet evident, concerns about supply chain disruptions and sustained price increases were intensifying. "This is not yet a 'stagflation' shock," meaning the kind that hits the job market while pushing up inflation and forces the US Fed to decide which of its policy objectives faces greater risk, Goolsbee said after attending the Milken Institute conference in Los Angeles. "This is just an inflation shock. And the longer this persists, the more uneasy I become." According to CME "FedWatch": the probability of the US Fed keeping rates unchanged through June was 93.5%, with a cumulative 25-basis-point interest rate cut probability of 6.5%. The probability of the US Fed keeping rates unchanged through July was 86.5%, with cumulative probabilities of a 25-basis-point cut at 13.0% and a 50-basis-point cut at 0.5%. (Jin10 Data) Other currencies: On the first day of resumed trading in the Japanese market, the yen broadly stabilized against other G10 currencies and Asian currencies. However, analysts noted that the yen's downside room against the US dollar is likely to be limited due to potential foreign exchange intervention by Japanese authorities. Analysts at Maybank stated in a foreign exchange research report that the unpredictability of Japanese authorities' actions would limit the upside room for USD/JPY in the short term. Given that three suspected interventions have already occurred after the currency pair breached the 157.00 level, the market is now increasingly wary of pushing the dollar above that level. (Jin10 Data) Data: China's April foreign exchange reserves (TBD), US April Challenger enterprise layoffs, US initial jobless claims for the week ending May 2, US March construction spending MoM, US April New York Fed 1-year inflation expectations, Eurozone March retail sales MoM, France March trade balance, and Switzerland April seasonally adjusted unemployment rate are scheduled for release today. In addition, 2027 FOMC voter and Chicago Fed President Goolsbee will participate in a panel discussion at a conference. Crude oil: As of 11:41, oil prices in both markets rose, with WTI up 0.86% and Brent up 0.87%. The market weighed the prospects of a Middle East peace agreement. A decline in US crude oil inventory last week supported oil prices. US EIA Cushing, Oklahoma crude oil inventory for the week ending May 1 was -648,000 barrels, compared to the previous value of -796,000 barrels. US EIA crude oil inventory for the week ending May 1 was -2.313 million barrels, versus expectations of -3.291 million barrels and a previous value of -6.234 million barrels. US EIA Strategic Petroleum Reserve inventory for the week ending May 1 was -5.224 million barrels, compared to the previous value of -7.121 million barrels. According to federal data released Wednesday, US energy inventories continued to decline rapidly due to supply shocks caused by the Middle East war, highlighting the tightening supply problem as the energy crisis continued to spread. According to data from the US Energy Information Administration (EIA), refined product inventories, including diesel, plunged by 1.3 million barrels last week to the lowest level since April 2003. These inventories are currently 11% below the five-year seasonal average. Due to refinery shutdowns, diesel prices recently hit record highs in Wisconsin, Illinois, and Michigan. (CNN) According to a person familiar with the matter, the Trump administration is exploring the use of oil resources beneath US military bases and other Department of Defense sites to replenish the nation's dwindling emergency reserves. The source said no decision has been made on this potential move. This comes as the US government has pledged to explore innovative ways to replenish the Strategic Petroleum Reserve, which was further depleted during the Iran war. (Jin10 Data) According to a foreign media survey, OPEC's crude oil production fell to a 36-year low last month as the ongoing Iran war continued to obstruct Persian Gulf exports and forced more oil fields to shut down. The survey showed that OPEC's April crude oil production decreased by 420,000 barrels per day to 20.55 million barrels per day, the lowest level since 1990, mainly dragged down by further production declines in Kuwait and Iran. The survey showed that Kuwait saw the largest production drop last month, with daily output falling by 470,000 barrels to 800,000 barrels per day, less than one-third of pre-war levels. The country's exports have fallen to just 22,000 barrels per day. Iran followed, with production declining by 180,000 barrels per day to 3.05 million barrels per day, doubling the cumulative production cuts since the war began. OPEC also suffered another blow last week. The UAE announced its withdrawal from the organization, following years of friction with the group's leader Saudi Arabia over production limits. The April survey still included UAE data, as the UAE's withdrawal did not officially take effect until May 1. (Bloomberg) Spot market overview: ► ► ► ► ► ► ► ► ►