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SMM Dec. 18: Silicon Metal: Spot silicon metal prices were basically stable this week. As of Dec. 18, SMM oxygen-blown #553 silicon in east China was at 9,100-9,300 yuan/mt, flat WoW; #441 silicon was at 9,300-9,500 yuan/mt, flat WoW; #421 silicon (used in silicone) was at 9,800-10,200 yuan/mt, flat WoW; and #3303 silicon was at 10,200-10,500 yuan/mt, flat WoW. In the futures market, the most-traded SI contract closed at 8,645 yuan/mt on Dec. 18, up 360 yuan/mt WoW. Futures prices fluctuated upward this week, but some silicon enterprises' willingness to sell remained weak. Downstream users mainly digested low-priced inventories, and trading volume turned lower WoW. On the supply side, some silicon enterprises in the north intended to cut production, but no cuts have been implemented yet, and the operating rate remained stable. Follow-up changes in operating rates need attention. On the demand side, polysilicon weekly production was basically stable. Polysilicon production in December is scheduled at around 114,000 mt, down slightly MoM from November, resulting in limited change in demand for silicon metal. The weekly production schedule for silicone saw minor fluctuations WoW. In early December, monomer plants successively reduced production, and the schedule decreased MoM from November. Consumption of silicon metal in December may decrease by around 5,000 mt. The operating rate of aluminum-silicon alloy enterprises remained stable. Secondary aluminum enterprises in Chongqing, which cut production last week due to air pollution, maintained reduced output this week. Downstream demand for aluminum alloys showed marginal weakening, and the operating rate is expected to be generally stable with a slight fall. Silicon metal futures prices saw an upward correction this week, but still fell short of enterprise expectations, leading to weak selling willingness. Downstream digestion of inventories and a strong wait-and-see sentiment kept the spot market in a stalemate recently, with prices under pressure both up and down. Polysilicon: The polysilicon price index was 52.09 yuan/kg this week. N-type recharging polysilicon was quoted at 49.8-55 yuan/kg, and granular polysilicon at 49-51 yuan/kg. Market trading was extremely limited this week. Several polysilicon plants planned to significantly increase polysilicon prices, with some market rumors of new quotes at 65 yuan/kg. However, it is important to note that no actual transactions have been concluded yet. The market mainly executed historical orders, with the current mainstream shipment price center for historical orders at 51-53 yuan/kg. Future market prices will depend on downstream price trends and actual transaction settlements. Wafer: Overall wafer prices held steady this week. N-type 183 wafers were priced at 1.15-1.2 yuan/piece, 210R wafers at 1.20-1.25 yuan/piece, and 210mm wafers at 1.45-1.5 yuan/piece. Driven by rising battery prices, wafer prices showed an upward trend this week, with the top two enterprises suspending shipments of low-priced orders. The actual transaction situation still depends on downstream acceptance. Additionally, after the association announced the 2026 quota, it is highly likely that wafer enterprises will face higher inventory pressure in the medium and long term, while ensuring reasonable production profits. For more detailed market information and dynamics, or if you have other information needs, please call 021-51666820.

SMM December 18 News: This week, rose slightly, were basically flat, continued to rise. Recently, lithium carbonate prices were significantly affected by market sentiment, but the underlying supply and demand did not change much. LFP black mass prices per % lithium rose this week along with the increase in lithium chemicals prices. Upstream grinding enterprises, after observing lithium carbonate supply-demand and policies, were relatively optimistic about future prices. Although prices adjusted with futures, the upward momentum was strong. Taking LFP pole piece black mass as an example, the current price is 3,750-3,950 yuan/mtu, up WoW. Taking ternary black mass as another example: the current nickel and cobalt payables for ternary pole piece black mass are 75.5-77.5%, up 0.25% WoW, while lithium payables are 73-75%, basically flat MoM. The main reason was that cobalt sulphate prices continued to rise this week: most enterprises had relatively limited cobalt inventory, and after clearing old stock, they had to purchase new goods from smelters, pushing prices higher. cobalt sulphate and lithium carbonate gradually passed costs through to the ternary and ends, driving up the payables and prices for both ternary and LCO black mass.         SMM New Energy Research Team Wang Cong 021-51666838 Ma Rui 021-51595780 Feng Disheng 021-51666714 Lyu Yanlin 021-20707875 Zhou Zhicheng 021-51666711

According to the Miningnews.net website, Tesoro Gold announced that its La Brea project at El Zorro in Chile is a "large gold ore deposit." All initial drill holes at the project "intersected broad alteration zones with gold anomalies." The drilling, located 15 km north of the 2 million-ounce Ternera deposit, comprised five holes and completed 1,117 meters. Tesoro stated that the work at La Brea shares characteristics similar to the early drilling discoveries at Ternera. The drill intersections were as follows: ◎At a depth of 71.4 meters, it intersected 1.12 meters of ore with a gold grade of 1.6 grams per mt; ◎At a depth of 51.4 meters, it intersected 0.6 meters of ore with a grade of 4.2 grams per mt; ◎At a depth of 76.3 meters, it intersected 4.2 meters of ore with a grade of 0.56 grams per mt, including a 0.9-meter-thick ore body grading 1.92 grams per mt. "This reminds us of the early drilling at Ternera, where initial holes encountered variable ore bodies, and subsequent drilling revealed a 2 million-ounce deposit," said Tesoro manager Reeves Zeff. "Clear evidence indicates that El Zorro has the geological conditions to host multiple deposits, and today's results suggest the potential for a series of discoveries in the future." Tesoro plans to drill 38,000 meters at the El Zorro project, with 26,000 meters allocated for infill and step-out drilling, followed by a pre-feasibility study and 12,000 meters of drilling at untested targets.

Secondary Aluminum Raw Materials: The domestic aluminum scrap market fluctuated in tandem with primary aluminum this week, with the price center hovering at highs. As of December 18, the SMM A00 aluminum price closed at 21,730 yuan/mt, down 160 yuan/mt WoW. Major categories of aluminum scrap followed the adjustment, with shredded aluminum tense scrap (including freight) quoted at 18,000-18,550 yuan/mt (ex-tax) and baled UBC at 16,250-16,750 yuan/mt (ex-tax). On one hand, some secondary aluminum alloy scrap utilization enterprises reported that they are expected to begin Chinese New Year stockpiling soon and are currently conducting concentrated procurement of aluminum scrap raw materials, thus accelerating the procurement pace for aluminum tense scrap. However, repeated environmental protection-driven production restrictions in regions such as Chongqing, Henan, and Hebei affected the operating rates of scrap utilization enterprises, leading to a slight weakening in downstream aluminum scrap demand. On the other hand, imported and domestic aluminum scrap raw materials remained tight, traders maintained low inventory levels, and the slight dip in aluminum prices at the beginning of the week prompted some aluminum scrap suppliers to hold prices firm and be reluctant to sell. Downstream alloy enterprises reported difficulty in sourcing low-priced raw materials. Regarding the price difference between primary metal and scrap, the price difference between A00 aluminum and shredded aluminum tense scrap closed at 1,924 yuan/mt on December 18, while the price difference for bare bright aluminum wire in Jiangsu was 901.9 yuan/mt. The aluminum scrap market is expected to continue fluctuating at highs next week, with the mainstream range for shredded aluminum tense scrap (including freight) projected at 18,000-18,500 yuan/mt (ex-tax). The tight supply situation for aluminum scrap is difficult to change in the short term, and shortages of imported raw materials are providing a floor for prices. Pre-Chinese New Year stockpiling is about to begin, with concentrated raw material procurement by some scrap utilization enterprises offering some support for scrap demand. However, repeated environmental protection-driven production restrictions in central and south-west China mean market participants remain cautious. Overall, the tug-of-war between sellers and buyers in the aluminum scrap market is expected to continue next week. Close attention should be paid to fluctuations in primary aluminum prices, the implementation of environmental protection-driven production restrictions, and changes in the procurement pace of downstream enterprises, while remaining vigilant against the risk of a high-level correction. Secondary Aluminum Alloy: The secondary aluminum alloy market generally maintained a pattern of high volatility this week. In the futures market, the most-traded cast aluminum alloy contract first declined then rose, mainly fluctuating around the 21,000 yuan/mt level during the week. In the spot market, as of today, the SMM ADC12 price was quoted at 21,650 yuan/mt, cumulatively down 100 yuan/mt from last Friday. Cost is the core support for the current ADC12 price. Although the A00 aluminum price showed volatile movements, first declining then rising during the week, aluminum scrap prices demonstrated significant resistance to decline due to persistently tight supply: traders held prices firm and were reluctant to sell when aluminum prices fell, but quickly followed price increases during rebounds. This kept production costs for secondary aluminum plants persistently high, thereby supporting the firm ADC12 price. The theoretical profit/loss for the ADC12 industry has now rebounded above the break-even line, with profitability improving compared to the previous period. On the demand side, new orders from downstream die-casting enterprises showed weakness. Although there is some year-end demand for periodic volume pushes, signs of an overall demand slowdown are gradually becoming apparent. Coupled with sharp fluctuations in aluminum prices, downstream procurement has become more cautious, mostly purchasing as needed, leading to generally average overall market transactions. Supply side, the operating rate of leading enterprises in the secondary aluminum industry remained stable at 59.8% this week, with orders and production at large plants remaining relatively stable. However, environmental protection-related controls were reinstated in Chongqing, suppressing the recovery of local enterprises' operating rates. Inventory side, according to SMM statistics, the social inventory of secondary aluminum alloy ingots in mainstream domestic consumption areas was 53,400 mt on December 18, a decrease of 1,256 mt from last Thursday, continuing a slight destocking trend. ADC12 prices are expected to continue fluctuating at high levels in the short term, with limited room for both increases and decreases. Support below comes from the rigid cost floor provided by tight aluminum scrap supply, while pressure above stems from marginally weakening demand and the wait-and-see sentiment among downstream players triggered by aluminum price volatility. Subsequent attention should focus on raw material availability, regional environmental protection policies, and changes in downstream orders. (Data Source Statement: Except for publicly available information, other data are processed by SMM based on public information, market communication, and relying on SMM's internal database model, for reference only and do not constitute decision-making advice.)

Today, the most-traded BC copper 2601 contract opened at 83,130 yuan/mt. In the night session, after opening, it initially touched a high of 83,780 yuan/mt. Subsequently, as bulls increased their positions, the center of copper prices fluctuated downward throughout the session. After the day session opened, it touched a low of 82,580 yuan/mt and then fluctuated rangebound, finally closing at 83,080 yuan/mt, up 60 yuan/mt, a gain of 0.07%. Open interest reached 3,584 lots, an increase of 159 lots from the previous trading day, while trading volume reached 5,835 lots, up 177 lots from the previous session. On the macro front, based on labor market performance, Governor Waller advocated for continuing to advance interest rate cuts, as the US Fed is still weighing economic conditions against inflation in future rate decisions. On the fundamentals side, supply of imported material remained tight, while domestic arrivals were normal, leading to an overall contraction in supply. Demand side, end-use industry demand remained sluggish, with no significant boost in purchasing sentiment. Inventory side, as of Thursday, December 18, SMM nationwide copper inventories in mainstream areas increased slightly by 0.79% WoW from Monday. SHFE copper contract 2601 closed at 92,450 yuan/mt. Based on the BC copper 2601 contract's closing price of 83,080 yuan/mt, its post-tax price is 93,880 yuan/mt, resulting in a price spread of -1,430 yuan/mt between the SHFE copper 2601 contract and the BC copper contract. The spread remained inverted and widened compared to the previous day.

SMM December 18 news:        The most-traded SHFE zinc 2601 contract opened at 23,050 yuan/mt. After opening, a tug-of-war between longs and shorts kept the price fluctuating rangebound around 22,990 yuan/mt, during which it touched a low of 22,965 yuan/mt, and finally closed up at 23,030 yuan/mt, an increase of 60 yuan/mt, or 0.26%. Trading volume decreased to 92,275 lots, and open interest fell by 6,324 lots to 52,902 lots. SHFE zinc recorded a bullish candlestick, with the 5/10-day daily average lines exerting pressure above, while the 20/60-day daily average lines provided support below. According to data released by SMM today, domestic inventory continued to decline, but consumption was mostly rigid demand. SHFE zinc maintained a fluctuating trend. Attention can be paid to the US CPI data performance in the evening.

SMM Dec 28 News: Time flies, and the end of 2025 is approaching. This year marks a concentrated production ramp-up period for overseas zinc concentrates, with overall global zinc concentrate production up over 600,000 mt in metal content YoY. Overseas zinc concentrate contributed 550,000 mt in metal content of this growth. The significant increase in supply has noticeably eased the global zinc concentrate balance compared to last year, and the overall center of zinc concentrate TCs has rebounded from 2024. As 2026 approaches, how will the global zinc concentrate supply-demand structure evolve next year? How will TCs move？ Supply side: Overseas zinc concentrates. Entering 2026, although mines like Oz and Kipushi continue to ramp up production, output from Antamina, Red Dog, and Mount Isa is expected to decline. Overall, overseas zinc concentrate production is projected to increase by about 100,000 mt in metal content YoY, with a significant slowdown in growth. Domestic zinc concentrates, however, tell a different story. As previously commissioned mines gradually release production and new mines come online, the next three years will be a period of production release for domestic zinc concentrates. China's zinc concentrate production is expected to grow by nearly 200,000 mt in metal content in 2026. Overall, global zinc concentrate production is forecast to increase by approximately 300,000 mt in metal content in 2026. From 2027 to 2030, global zinc concentrate supply growth will continue, but the pace is expected to gradually slow down. Demand side: With domestic smelters continuing to ramp up and the recovery of domestic TCs, China's refined zinc production increased by over 600,000 mt YoY in 2025. However, as the benchmark hit a new low, overseas smelters saw a YoY decline in production due to raw material and profit constraints. Entering 2026, as new capacity at domestic smelters continues to ramp up, China's refined zinc production is expected to keep growing. With the benchmark's recovery, overseas smelter production is projected to see a slight rebound next year. Overall, global refined zinc production is forecast to increase by about 400,000 mt YoY in 2026. From a supply-demand perspective, both supply and demand for global zinc concentrates are expected to increase in 2026, but demand growth is projected to be more significant, leading to a slightly tight global zinc concentrate market. Domestically, although Chinese zinc concentrate production is also rising, influenced by the recovery of overseas smelters, China's imports of zinc concentrates are unlikely to see significant growth next year. Considering that refined zinc growth is mainly driven by domestic production, the domestic zinc concentrate market is expected to be relatively tight in 2026. Regarding TCs, due to the expected tightness of domestic ore next year, the center for domestic and imported zinc concentrate TCs faces a risk of further decline, while the center for imported zinc concentrate TCs is also unlikely to see growth. (The above information is based on market collection and comprehensive evaluation by the SMM research team. The information provided in this article is for reference only. This article does not constitute direct advice for investment research and decision-making. Customers should make cautious decisions and should not replace their independent judgment with this information. Any decisions made by customers are not related to SMM.)

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In recent years, Indonesia has solidified its position as a global supply and export hub for the stainless steel industry. With the continuous upgrade of local production capabilities, the export volume of 304L series stainless steel has seen significant growth. Due to its superior intergranular corrosion resistance and weldability, 304L is increasingly demanded in the chemical, energy, and high-end manufacturing sectors across Asia, Europe, and the Middle East. To better reflect the supply-demand fundamentals of the low-carbon stainless steel market and to provide global traders and downstream users with more precise settlement references and risk management tools, SMM has decided to expand its overseas price assessment portfolio. Effective December 26, 2025 , SMM will officially launch the following two new price points: "304L/NO.1 Coil-ME, FOB Indonesia, USD/mt" and "304L/2B Coil-ME, FOB Indonesia, USD/mt" . The details of the new price points are as follows: 1. Product Name: 304L/NO.1 Coil-ME, FOB Indonesia, USD/mt Quality: Standard thickness 4mm, thickness range 4.0-8.0mm, width 1520mm, Mill Edge, conforming to ASTM A480/A480M. Brand Listing: ITSS, GCNS, OSS Definition: FOB Indonesia main ports Unit: USD/tonne Quantity: Min 20 tonnes Timing: 1-3 Months Publication Time: Daily, by 11:00 am Jakarta Time (Working Days) Payment Terms: L/C / TT at sight in USD, or other payments normalized. 2. Product Name: 304L/2B Coil-ME, FOB Indonesia, USD/mt Quality: Standard thickness 2mm, thickness range 1.5-2.0mm, width 1240mm, Mill Edge, conforming to ASTM A480/A480M. Brand Listing: Yongwang, Ruipu, IMR ARC Steel Definition: FOB Indonesia main ports Unit: USD/tonne Quantity: Min 20 tonnes Timing: 1-3 Months Publication Time: Daily, by 11:00 am Jakarta Time (Working Days) Payment Terms: L/C / TT at sight in USD, or other payments normalized. For any inquiries, please contact the SMM Nickel & Stainless Steel Industry Research Department.   SMM Nickel & Stainless Steel Industry Research Department December 18, 2025

On December 18, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,050-8,250 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,100-8,300 yuan/mt (50% metal content); in east China, the quotation was 8,300-8,400 yuan/mt (50% metal content), up 50 yuan WoW; for imported material, the quotation for South African high-carbon ferrochrome was 8,200-8,400 yuan/mt (50% metal content), while the quotation for Kazakh high-carbon ferrochrome was 9,000-9,100 yuan/mt (50% metal content), flat WoW. The ferrochrome market held up well during the day, with retail quotations continuing to rise, while steel mill purchase prices fell MoM. TISCO announced tender prices for high-carbon ferrochrome for December 2025 and January 2026 at 8,195 yuan and 7,995 yuan, respectively, down 100 yuan and 200 yuan MoM, largely in line with market expectations. Despite the decline in steel mill purchase prices, the retail market showed upward momentum due to tight supply and cost support, with producers maintaining firm pricing intentions. The ferrochrome market is expected to remain stable in the short term, with attention on the direction of new tender prices from other mainstream steel mills. Raw material side, on December 18, 2025, spot 40-42% South African fines at Tianjin Port were quoted at 51-52.5 yuan/mtu; 40-42% South African raw ore was quoted at 46.5-48 yuan/mtu; 46-48% Zimbabwean chrome concentrate fines were quoted at 52.5-53.5 yuan/mtu; 48-50% Zimbabwean chrome concentrate ore was quoted at 54-55 yuan/mtu; 40-42% Turkish chrome lump ore was quoted at 57-59 yuan/mtu; 46-48% Turkish chrome concentrate fines were quoted at 60-61 yuan/mtu, up 0.5 yuan WoW; for futures, 40-42% South African fines were quoted at $263-265/mt. The chrome ore market was generally stable with slight rise during the day, with quotations for mainstream chrome ore continuing to increase amid tight supply, while spot transactions for South African fines gradually moved towards the higher end of the range. Rising retail prices for downstream ferrochrome and tender prices largely meeting expectations boosted inquiry activity and market confidence at the ore end. For futures, the latest quotation from the main mine for 40-42% South African fines remained flat at $263/mt, highlighting firm pricing intentions and providing some support to market prices, with most traders following suit. The chrome ore market is expected to operate steadily in the short term, awaiting tender prices from other mainstream steel mills.

The cobalt sulphate market cooled slightly this week, with trading volume decreasing compared to last week. Supply side, smelters continued to hold prices firm: quotations for MHP and recycled cobalt sulphate maintained at 91,000–92,000 yuan/mt, while intermediate product quotations held at 95,000 yuan/mt. Demand side, downstream inquiries decreased, with only rigid demand restocking maintained. Two main reasons contributed: first, after continuous stockpiling in previous weeks, many enterprises had completed their stockpiling targets; second, as it is currently the financial reporting season, enterprises need to control their capital and inventory for financial reporting purposes, resulting in relatively weak willingness for additional stockpiling beyond rigid demand restocking. Overall, the cobalt sulphate market price is expected to maintain a fluctuating trend within December, and after January, as downstream enterprises restart the next round of procurement, prices are expected to return to an upward trajectory. SMM New Energy Research Team Cong Wang 021-51666838 Rui Ma 021-51595780 Disheng Feng 021-51666714 Yanlin Lü 021-20707875 Wenhao Xiao 021-51666872 Haohan Zhang 021-51666752 Zihan Wang 021-51666914 Jie Wang 021-51595902 Yang Xu 021-51666760 Lianting Yang 021-51595835 Zhaoyu Wang 021-51666827

This week, the cobalt intermediate products market continued its strong trend, maintaining a pattern of "price without market." Supply side, mainstream spot cargo offers remained anchored around $25.0/lb, with some Q2 2026 futures offers around $27/lb. Demand side, against the backdrop of losses, smelters continued to restock based on rigid demand. According to the latest enterprise export progress, pilot enterprises may achieve exports by December month-end or early January, while the export process for other enterprises remained relatively slow, with a relatively small possibility of exports within 2025. Considering the approximately three-month transportation cycle, cobalt intermediate products from the DRC are expected to arrive at ports successively in March and April next year. The logic of structurally tight raw material supply remained unchanged, providing continued support for intermediate product prices to rise. SMM New Energy Research Team Cong Wang 021-51666838 Rui Ma 021-51595780 Disheng Feng 021-51666714 Yanlin Lü 021-20707875 Wenhao Xiao 021-51666872 Haohan Zhang 021-51666752 Zihan Wang 021-51666914 Jie Wang 021-51595902 Yang Xu 021-51666760 Lianting Yang 021-51595835 Zhaoyu Wang 021-51666827

This week, the spot price of domestic refined cobalt fluctuated upward. Supply side, supported by raw material costs, smelters continued to hold prices firm. In the trader segment, after continuous sales in recent months, the circulating inventory was relatively limited. Coupled with the approaching year-end, enterprises had requirements to control capital occupation and positions, leading to a weakened willingness to sell, with efforts focused only on maintaining core customers. Demand side, there was no significant change, maintaining the pace of just-in-time procurement. Currently, the price of cobalt salts is close to 450,000 yuan/mt in metal content. The price spread between cobalt salts and refined cobalt, after deducting the cost of reverse melting, offers a relatively reasonable profit. It is expected that, barring any additional changes in the fundamental supply-demand dynamics of refined cobalt itself, prices will maintain a fluctuating trend in the short term. Subsequent price increases still need to wait for cobalt salt prices to rise and drive metal prices to follow. SMM New Energy Research Team Wang Cong 021-51666838 Ma Rui 021-51595780 Feng Disheng 021-51666714 Lyu Yanlin 021-20707875 Xiao Wenhao 021-51666872 Wang Zhaoyu 021-51666827 Zhang Haohan 021-51666752 Wang Zihan 021-51666914 Wang Jie 021-51595902 Xu Yang 021-51666760 Yang Lianting 021-51595835

SMM December 18 News: Electrolyte market prices held steady this week, with the average prices for ternary, LFP, and LMO electrolytes at 36,750 yuan/mt, 35,250 yuan/mt, and 28,250 yuan/mt, respectively. Cost side, although the prices of key raw materials such as LiPF6, VC, and FEC remained high, electrolyte enterprises faced a lag in cost pass-through and downstream enterprises' reluctance to accept high raw material prices, leaving some orders under pressure of losses. Against this backdrop, electrolyte enterprises significantly scaled back their raw material purchase willingness, continuously weakening the support for the rise in raw material prices. Meanwhile, some traders sold materials at low prices, leading to low-priced transactions in the market, further curbing the upward momentum of electrolyte prices and keeping them stable in the short term. Demand side, battery cell enterprises maintained a steady production pace this month, with output levels remaining high and no significant reductions, providing strong support for the demand of electrolytes and their upstream raw materials. Supply side, although the difficulty in passing costs downstream dampened the production enthusiasm of some electrolyte enterprises, the industry overall continued to operate under the "produce based on sales" model. Considering the supply-demand pattern and cost-side pressures, electrolyte prices are expected to remain stable in the short term.     SMM New Energy Research Team Wang Cong 021-51666838 Ma Rui 021-51595780 Feng Disheng 021-51666714 Lü Yanlin 021-20707875 Zhou Zhicheng 021-51666711 Xu Mengqi 021-20707868 Hu Xuejie 021-20707858 Chen Bolin 021-51666836 Wang Yizhou 021-51595909

Spot lithium carbonate prices showed a strong trend of "continuous one-sided rise" this week. The SMM average price of battery-grade lithium carbonate increased from 95,150 yuan/mt at the beginning of the week (December 15) to 97,550 yuan/mt on Thursday (December 18), a cumulative increase of 2,400 yuan/mt; the average price of industrial-grade lithium carbonate rose from 92,650 yuan/mt to 94,950 yuan/mt, a cumulative increase of 2,300 yuan/mt. The futures market performed even more strongly, with the price range for the most-traded contract shifting significantly higher in a sideways movement, breaking strongly from 97,300-101,200 yuan/mt at the start of the week to 104,700-109,900 yuan/mt. This round of price action was primarily driven by market sentiment, with the direct trigger being the announcement issued by the Yichun Natural Resources Bureau in Jiangxi regarding the revocation of 27 mining rights. Although this announcement sparked market concerns about lithium resource supply, it is important to note that the involved lithium-bearing porcelain clay ore mines (such as the Shiziling Mine) had actually ceased production before 2025 and were not continuously supplying lithium resources to the market. Therefore, this event has no substantive impact on the stability of current and subsequent lithium carbonate supply. The abnormal price increase mainly reflects fluctuations in sentiment and is weakly linked to industry fundamentals. From the perspective of actual market transactions, the current price level has clearly exceeded the acceptable range for most downstream material plants, resulting in very few market transactions, primarily supported by just-in-time procurement from some enterprises. From a supply-demand perspective, supply-side lithium chemical plant production remained stable, and domestic lithium carbonate production in December was still expected to maintain approximately 3% MoM growth. Demand-side, the robust performance of the NEV and ESS markets continued to provide underlying support for demand, but battery cell and cathode material production schedules in December were expected to show a slight MoM decline. Overall, the industry maintained a pattern of "steady supply increase and demand holding steady at high levels," with the destocking trend expected to continue but at a slower pace. It is noteworthy that the market exhibited significant "divergence between futures and spot prices" and emotional characteristics this week. The rapid price increase had severely suppressed spot transactions, while the futures market showed irrational gains, creating a certain divergence from spot fundamentals, calling for all parties to rationally assess the actual supply and demand situation.