As of Wednesday, the spot price of SiMn 6517 (cash) in the north China market was 5,900-6,000 yuan/mt, down WoW from the previous Wednesday; the spot price of SiMn 6517 (cash) in the south China market was 6,000-6,100 yuan/mt, also down WoW from the previous Wednesday. Currently, SiMn futures and spot prices were moving sideways within a mid-range overall, and the short-term support of raw material costs for spot prices had somewhat weakened.

[SMM Silicon-Based PV Morning Meeting Summary] Polysilicon: N-type recharging polysilicon was quoted at 33-35.7 yuan/kg. Polysilicon prices remained generally weak, with sluggish market transactions. Previous order signing had concluded, and the current focus was primarily on shipments, with market participants watching for subsequent policy developments. Wafer: Market prices for 18X wafers were 0.88-0.9 yuan/piece, 210RN wafers were priced at 0.98-1.00 yuan/piece, and 210N wafers were priced at 1.18-1.2 yuan/piece. Top-tier players continued to hold prices, and improving quality to justify price increases had become the most pressing task in the wafer segment.

In May, the rare earth market entered its traditional off-season. Although occasional factors such as major producers' procurement briefly boosted rare earth prices, weak downstream demand kept prices under pressure and pulling back overall throughout May. Pr-Nd oxide and dysprosium oxide fell 11% and 11.79% respectively in May, while terbium oxide also edged down. On the supply side, however, an increasing trend emerged — domestic rare earth oxide production was up MoM across the board in May. Combined with continued inflows of ex-China sources, imports of unlisted rare earth oxides in the first four months surged 103% YoY. This supply-demand mismatch further suppressed rare earth price performance in May. Since early June, Pr-Nd oxide and other rare earth products have seen slight price rebounds, driven by major producers' restocking and futures fluctuations. However, the off-season demand shortfall persists — how will the rare earth market perform going forward? Pr-Nd Oxide Down 11% in May, Dysprosium Oxide Down 11.79%, Terbium Oxide Down 1.63% Light rare earth prices: Taking the historical price trend of Pr-Nd oxide as an example, according to SMM quotes: the average price of Pr-Nd oxide on May 29 was 687,500 yuan/mt, compared with its April 30 average price of 772,500 yuan/mt, representing a decline of 85,000 yuan/mt in May, with a monthly drop of 11%. Entering June, Pr-Nd oxide continued to rise, with an average price of 700,500 yuan/mt on June 2. Medium-heavy rare earth prices: Taking the trend of dysprosium oxide as an example, according to SMM quotes: the average price of dysprosium oxide on May 29 was 1,230 yuan/kg, compared with its April 30 average price of 1,375 yuan/kg, representing a decline of 145 yuan/kg in May, with a monthly drop of 11.79%. Entering June, dysprosium oxide prices edged up slightly, with an average price of 1,240 yuan/kg on June 2. Taking the trend of terbium oxide as an example, according to SMM quotes: the average price of terbium oxide on May 29 was 6,025 yuan/kg, compared with its April 30 average price of 6,125 yuan/kg, representing a decline of 100 yuan/kg in May, with a monthly drop of 1.63%. Entering June, terbium oxide prices rose slightly, with an average price of 6,035 yuan/kg on June 2. Oxide Production Up MoM Across the Board in May Production: Due to increased production from scrap recycling enterprises and production resumptions at some enterprises that had previously undergone equipment maintenance, production of Pr-Nd oxide and other rare earth oxides edged up in May compared with April. Imports of Unlisted Rare Earth Oxides Up 103% YoY, January-April According to data from the General Administration of Customs, China's imports of thorium ore and concentrates totaled 21,443 mt from January to April 2026, nearly flat YoY. Imports in April were 4,081 mt, up 22% MoM but up 32% YoY. From January to April 2026, China's imports of unlisted rare earth oxides reached approximately 26,123 mt, a significant YoY increase of 103%. Currently, the operating rate of ex-China rare earth mines remains relatively high, keeping actual supply in the international market at ample levels. Outlook Recently, rare earth prices rose due to futures market price fluctuations and periodic restocking by some large enterprises. However, as downstream orders were unsatisfactory, even though raw material inventory at downstream enterprises remained at relatively low levels, end-user wait-and-see sentiment was strong and enterprises showed little enthusiasm for restocking and stockpiling. It is expected that rare earth prices will be in the doldrums again until downstream orders see a notable increase and market confidence shows clear recovery. Recommended reading:

As of June 2, the operating rate of 50 major construction steel EAF steel mills nationwide was 41.2%, up 1.24% WoW; capacity utilization rate was 42.70%, up 0.73% WoW; daily average production of construction steel was 95,100 mt, up 1,600 mt WoW.

SMM June 2: Dealers in Zhejiang reported that end-use consumption in the e-bike lead-acid battery market was sluggish, with slow battery absorption. Currently, battery inventories exceeded one month. In addition, the recent battery wholesale market had a strong promotional atmosphere. For example, the wholesale price of the main model 48V12Ah was 275 yuan/set, and some brands began "buy * get * free" campaigns. Manufacturers in Jiangxi reported that replacement demand in the e-bike lead-acid battery market was weak, and dealers showed low purchasing enthusiasm. Coupled with high finished product inventories, factory production lines were maintained at around 70% in recent days and plan to stay at this level for 1-2 days. Manufacturers in Henan reported that the off-season trend in the e-bike lead-acid battery market remained unchanged, with OEM battery orders for complete vehicles also being mediocre. Currently, factories produced based on sales, with production line operating rates at around 80%, and raw material lead was purchased as needed.

[SMM Rare Earth Permanent Magnets News Flash] According to the SMM survey, NdFeB blank production in May 2026 was 32,727 mt, with an industry average operating rate of 76.56%, up 0.38% MoM and 14% YoY. Production in June is expected to be 32,402 mt, flat MoM.

According to the latest SMM data, the secondary lead industry faced worsening difficulties of high costs and losses, with the price spread between raw materials and finished products continuing to narrow, enterprise losses widening, and operating rates declining accordingly.

During the survey period (May 26–June 1), the rebar rolling line operating rate in the Central China region remained stable, while the capacity utilization rate edged up.

Around May 23, 2026, import and export data for cobalt and lithium battery industry chain-related products in April were released in a concentrated manner. Data showed that China's spodumene imports in April reached 758,000 mt in physical content, down 9.5% MoM and up 21.7% YoY. Lithium carbonate imports, China imported 32,650 mt of lithium carbonate in April, up 9% MoM and up 15% YoY.......SMM compiled the import and export data for battery materials, as detailed below: Upstream Lithium Concentrates In April 2026, China's spodumene imports reached 758,000 mt in physical content, down 9.5% MoM and up 21.7% YoY, equivalent to approximately 63,000 mt of LCE. Customs data showed that April spodumene imports pulled back MoM from March, reaching 758,000 mt in physical content. By source country, Australian ore port arrivals returned to a relatively normal level, with over 350,000 mt arriving this month, up 38.9% MoM; Zimbabwe's earlier shipments arrived at port this month at 102,000 mt, down 9.2% MoM; South Africa and Nigeria saw some contraction in monthly port arrivals, while ore from Mali had almost no notable port arrivals this month due to shipping schedule impacts. Notably, spodumene powder sold by Brazil in early 2026 arrived at port this month, driving a significant increase in port arrivals from this country. Additionally, after SMM screening, the month's incoming ore was equivalent to 63,000 mt of LCE. Among the incoming ore, lithium concentrates accounted for 67%, edging down MoM, mainly because apart from Australia , ore from other source countries contained some relatively low-grade ore. Source: China Customs, compiled by SMM Spodumene concentrates (CIF China) spot pricing, according to SMM spot pricing, spodumene concentrates (CIF China) spot prices fluctuated upward in April. As of April 30, spodumene concentrates (CIF China) spot prices rose to $2,540/mt, up $221/mt from the month-end price of $2,313/mt in March, a gain of 9.81%. According to SMM, lithium carbonate prices continued to rise in April, and spodumene concentrates prices rose in tandem with salt prices, with gains exceeding those of lithium carbonate itself, causing non-integrated enterprises that purchase externally spodumene concentrates to suffer losses, with spot profitability remaining in deficit. In April, spot circulation of lepidolite concentrates relatively eased. Meanwhile, as lithium carbonate prices rose, processing fees for non-integrated enterprises also increased accordingly, preserving a certain profit margin for their processing operations and enabling these enterprises to achieve spot profitability. However, recently, spodumene concentrates prices adjusted in tandem with lithium carbonate price fluctuations, and the price center shifted downward. According to SMM's latest findings, disrupted by rumors of production resumptions at Jiangxi mines this week, lithium carbonate futures and spot prices declined, further dragging down the overall price center. Currently, lithium mines showed a weak willingness to make shipments, and transactions were mostly concentrated between traders and buyers. Port lithium ore inventory continued to decline. Going forward, attention should still be paid to the potential tight lithium ore supply triggered by high operating rates in the lithium chemicals industry. Lithium ore prices were expected to continue to hold up well. Lithium Carbonate According to customs data, China imported 32,650 mt of lithium carbonate in April, up 9% MoM and up 15% YoY. Of this, 21,000 mt was imported from Chile (65% of total imports), 9,555 mt from Argentina (29%), and 1,100 mt from Indonesia (3%). From January to April, China's cumulative lithium carbonate imports reached 116,000 mt, up 47% YoY cumulatively. In April, China exported 370 mt of lithium carbonate, down 17% MoM and down 50% YoY. From January to April, China's cumulative lithium carbonate exports totaled 1,886 mt, up 7% YoY cumulatively. In April, China imported 17,942 mt of lithium sulfate, up 9% MoM and up 296% YoY. From January to April, China's cumulative lithium sulfate imports reached 58,900 mt, up 121% YoY cumulatively. According to SMM spot quotes, spot lithium carbonate prices generally trended upward in April. As of April 30, the spot lithium carbonate price rose to 177,000 yuan/mt, up 14,000 yuan/mt from 163,000 yuan/mt on March 31, a gain of 8.59%. According to SMM analysis, China's lithium carbonate prices followed a "V-shaped" trend in April, first declining then rising, with the monthly average price up 6% MoM. In the first ten days, geopolitical disruptions in the Middle East intensified global risk-averse sentiment, causing non-ferrous metals and lithium carbonate prices to fluctuate downward. In the mid-to-late period, driven by Zimbabwe's export ban, Jiangxi mine license renewals, and rising costs, prices began to rebound and fluctuate upward, with the price center shifting notably higher by month-end. Upstream and downstream purchasing remained stagnant, with the psychological price spread widening week by week. Upstream producers held prices firm and held back from selling, maintaining high offer prices, while downstream buyers made just-in-time procurement only, with psychological price levels concentrated at 155,000-175,000 yuan/mt, restocking on dips only when prices fell rapidly. In April, spot battery-grade lithium carbonate prices dropped to around 155,500 yuan/mt in the first ten days, then rallied all the way to 177,000 yuan/mt by month-end. As of May 29, domestic spot battery-grade lithium carbonate was quoted at 174,000-181,000 yuan/mt, with an average price of 177,500 yuan/mt. Lithium Hydroxide According to customs data, in April 2026, China imported 6,689 mt of lithium hydroxide, up 9% MoM and up four times YoY. Of this, 2,252 mt were imported from South Korea, accounting for 34% of total imports; 1,706 mt came from Indonesia, accounting for approximately 25% of imports; and the remaining 40% came from Australia and Chile. In April, China exported 5,535 mt of lithium hydroxide, up 76% MoM and up 31% YoY, of which 3,915 mt were exported to South Korea and 864 mt to Japan. Continued sluggish ternary cathode material output outside China limited the absorption capacity for lithium hydroxide in markets outside China, resulting in a slight surplus in markets outside China, which in turn widened the price spread between domestic and overseas markets. Meanwhile, as suppliers outside China had previously signed long-term supply agreements with domestic traders, they were able to continuously dump lithium hydroxide into the Chinese market. Under the combined effect of these factors, the trade pattern of lithium hydroxide continued to reverse (shifting from net exports to net imports). Source: China Customs, compiled by SMM Battery Materials LiPF6 According to China Customs data, in April 2026, China's cumulative LiPF6 exports totaled approximately 868 mt, down approximately 80.9% MoM, while cumulative imports were approximately 96 mt. Export side, China's LiPF6 exports in April 2026 were approximately 868 mt, down approximately 80.9% MoM from March and down approximately 33.2% YoY. Specifically, as the LiPF6 export VAT rebate policy was officially abolished starting April 1, 2026, enterprises rushed to export in advance in March, and electrolyte enterprises outside China built up certain inventory, leading to MoM declines in China's exports to multiple major destination countries in April. Exports to Poland were 337.5 mt (down approximately 80.4% MoM), South Korea 81.804 mt (down approximately 92.56% MoM), Czech Republic 150 mt (down approximately 67.43% MoM), and the US 101.908 mt (down approximately 61.7% MoM). Only exports to Japan increased — 191.37 mt (up approximately 50.77% MoM). Artificial Graphite In April 2026, China's artificial graphite imports were 757 mt, up 12.4% MoM and down 32.9% YoY. Average import price side, in April 2026, the average import price of artificial graphite in China was 75,941 yuan/mt, up 23.1% MoM and up 14.6% YoY. In April 2026, China's artificial graphite exports totaled 45,895 mt, up 22.3% MoM but down 21% YoY. In terms of average export price, in April 2026, the average export price of China's artificial graphite was 9,214 yuan/mt, down 6.6% MoM but up 0.26% YoY. Exports from the top five exporting provinces rose 21% MoM from the previous month, with two provinces seeing export volume increases of over 35% MoM, and another province recording a 20% MoM increase. Import market, orders from downstream power battery enterprises in China gradually recovered in April. Combined with the phased tightness in spot capacity of leading anode enterprises, restocking demand was released, boosting artificial graphite imports to rebound from weakness on a MoM basis. However, import volumes remained down YoY, primarily because China's anode industry had ample overall capacity with supply still in surplus, domestic self-sufficiency continued to strengthen, and the industry's reliance on imported raw materials and finished products steadily declined. Flake Graphite In April 2026, China's flake graphite imports totaled 3,178 mt, down 19% MoM and down 45% YoY. Data source: China Customs, SMM In April 2026, China's flake graphite exports totaled 4,093 mt, down 50% MoM and down 54% YoY. Export market, the flake graphite export tax rebate policy was officially canceled this month, directly squeezing profit margins for foreign trade enterprises and significantly dampening overall export willingness. Meanwhile, the approval pace for flake graphite export licenses slowed down, hindering foreign trade shipments processes. Coupled with weak ex-China end-use demand, multiple bearish factors combined to directly drive a sharp decline in industry export volumes. The import market also continued to weaken. Goods originally intended for exports shifted to domestic sales circulation, with increasingly abundant local supply sources in China. Market enthusiasm for import procurement was insufficient, ultimately causing imports to decline in tandem this month. Phosphate Ore On May 20, 2026, according to customs data, China's phosphate ore imports totaled 207,000 mt in April 2026. April imports rose 13.5% from 182,000 mt in March. Total import value in April was $19.741 million, up 35.7% MoM from $14.552 million in March. The average unit price was $95.5/mt, up 19.6% from $79.9/mt in March. Import commentary: In May, Egypt's phosphate ore exports faced "policy tightening and weakening demand."On May 13, Egypt's Ministry of Petroleum and Mineral Resources announced that it would no longer sign any new phosphate ore export contracts. Previously, Egyptian Prime Minister Mustafa Madbouly stated clearly at a meeting on May 10 that the government was pushing for a transition from raw material exports to the manufacturing of high-value-added products such as phosphate fertiliser. Already signed long-term contracts would not be affected. This is expected to push up import prices and may affect imports. Cobalt Cobalt Hydrometallurgy Intermediate Products In April 2026, China's cobalt hydrometallurgy intermediate products imports were approximately 1,247 mt in physical content, down 26% MoM and down 98% YoY. Among them, imports from the DRC were approximately 945 mt in physical content, down 43% MoM and down 98% YoY. In April 2026, the average import price of China's cobalt hydrometallurgy intermediate products was $17,187/mt in physical content, up 2.63% MoM. It was learned that most miners had completed the Q4 2025 quota approvals, but the Q1 2026 quota approvals slowed down again due to sampling, detection and other procedural issues. In addition, transportation capacity in the DRC was tight. Fleets, driven by economic considerations, prioritised the transport of oil products and chemicals that were in production shortage, followed by other metals with shorter turnover cycles, and cobalt among non-ferrous metals came last, meaning cobalt faced significant transportation capacity issues. Constrained by the above factors, miners mainly focused on building in-transit inventory and had not yet arranged concentrated vessel bookings, and the arrival of large batches of intermediate products at ports may continue to be delayed. Unwrought Cobalt In April 2026, China's unwrought cobalt imports were approximately 1,334 mt, up 39% MoM and up 59% YoY. In April, refined cobalt imports mainly came from Indonesia, Russia, and Madagascar, with imports of 462 mt, 457 mt, and 182 mt respectively. The main reason for the increase this month was that domestic smelters lacked intermediate product raw materials and imported cobalt slabs and cobalt briquettes for re-dissolution to ensure normal production. In terms of average import prices, the average import price of China's unwrought cobalt in April 2026 was $52,724/mt, up 4.72% MoM. Cumulative imports from January to April 2026 totalled 5,916 mt, up 153% YoY cumulatively. Export side, China's unwrought cobalt exports in April 2026 were approximately 218 mt, down 47% MoM and down 95% YoY. By country, China's exports to the US dropped significantly, with April exports to the US at 35 mt, down 87.5% MoM. The main reason was that demand for alloy-grade refined cobalt in the US pulled back in April, and ex-China branded refined cobalt was already sufficient to meet regional demand, with some refined cobalt traders redirecting their destinations from the US back to China. Average export price, the average export price of China's unwrought cobalt in April 2026 was $54,590/mt, up 5.80% MoM. Cumulative exports from January to April 2026 totaled 1,792 mt, down 76% YoY.

SMM June 1 News: Dealers in Jiangxi reported that end-use consumption in the automotive storage battery market was poor, making it difficult to boost battery sales. Current battery inventory stood at approximately one and a half months. Prices of certain battery models declined recently, with the main model 6-QW-60Ah priced at 220-240 yuan/unit. Manufacturers in Anhui reported that replacement demand in the automotive storage battery market was sluggish, with dealers only purchasing as needed. To avoid inventory buildup, factory production line operating rates remained below 80%, and raw material lead was primarily procured through long-term contracts. Manufacturers in Guangdong reported that the automotive storage battery market was in the off-season. Additionally, due to the price spread between domestic and overseas markets for lead, battery exports lacked a competitive edge, and battery orders remained persistently weak, with current factory operating rates at 70-80%.