SMM News: Following our previous analysis of the transportation and wind power sectors, this installment shifts focus to the critical demand drivers in the consumer and construction domains: White Goods , Consumer Electronics , and Real Estate-related applications (Elevators and Power Tools). While these sectors individually consume less magnetic material per unit compared to New Energy Vehicles (NEVs), their sheer aggregate volume makes them indispensable pillars of the Neodymium-Praseodymium (Pr-Nd) market. However, data from early 2026 reveals a troubling trend of stagnation and structural contraction across these traditional strongholds. I. White Goods: The Dual Pressure of Production Slumps and Material Substitution In the white goods sector, Neodymium-Iron-Boron (NdFeB) magnets are primarily utilized in two key applications: compressors for inverter air conditioners and motors for drum and impeller washing machines . 1. Air Conditioners: A Sharp Contraction in Output and Dosage According to data from the National Bureau of Statistics (NBS), China’s cumulative air conditioner production for January-February 2026 stood at 40.118 million units , a staggering 35% year-on-year (YoY) decline compared to the 61.921 million units produced in the same period of 2025. (Reason: This drastic drop is attributed to a combination of factors: firstly, an unusually mild winter across major consumption regions significantly dampened heating demand, leading to a destocking cycle among distributors. Secondly, the real estate sector’s continued downturn has severely curtailed new housing completions, directly reducing the installation of centralized and split AC systems. Lastly, high inventory levels carried over from 2025 forced manufacturers to aggressively cut production schedules in Q1 2026 to avoid capital lock-up.) Looking at the full year, SMM forecasts a marginal growth of 0.96% for 2026, with total annual production projected at 271.095 million units . (Reason: The near-flat growth outlook reflects a mature market saturation where replacement demand, rather than new installations, drives volume. While export markets offer some resilience against domestic weakness, rising trade barriers and logistical costs in key regions like Europe and North America are expected to cap significant expansion.) Applying SMM’s calculation model: Inverter Penetration: 99% NdFeB Motor Penetration: 92% Specific Consumption: Assumed at 100g/unit for 2026. Based on these parameters, the total NdFeB consumption for the air conditioner sector in 2026 is estimated at 24,691 tons , representing a 23% decrease from the 29,163 tons consumed in 2025. The core driver of this decline is twofold: first, the persistently high prices of Pr-Nd since the second half of 2025 have accelerated the industry’s cost-reduction initiatives. Second, there is a clear technological shift towards minimizing rare earth usage. The average single-unit dosage has dropped from 120g/unit in 2025 to 100g/unit in 2026 , as manufacturers optimize motor designs and, in some lower-end models, substitute with ferrite magnets or induction motor technologies where efficiency standards allow. 2. Washing Machines: A Slow Erosion of Demand For January-February 2026, China’s cumulative washing machine production was 18.58 million units , a slight 0.3% YoY decline from the 18.51 million units in the same period of 2025. (Reason: The stability in production volumes masks underlying weakness. The slight dip is primarily due to weak consumer confidence impacting discretionary spending on home appliance upgrades. Furthermore, the export market for washing machines has faced headwinds from sluggish global economic growth and intensified competition from Southeast Asian manufacturing hubs, offsetting modest domestic recovery efforts.) SMM projects a full-year growth rate of 3.1% for 2026. (Reason: This modest recovery is underpinned by government-led "trade-in" subsidy policies aimed at boosting domestic consumption of energy-efficient appliances. Additionally, product innovation in the high-end segment, such as washer-dryer combos and smart features, is expected to stimulate some replacement demand, though the overall ceiling remains low.) Demand Calculation Logic: Drum Washer Penetration: 63% (High-end, 98% use NdFeB) Impeller Washer Penetration: 28% (Mid-range, 50% use NdFeB) Specific Consumption: 290g/unit for drum washers; 240g/unit for impeller washers. Under this model, the total NdFeB demand for washing machines in 2026 is estimated at 27,204.52 tons , a 0.2% decrease from 27,262 tons in 2025. The sector is experiencing a slow but steady erosion of demand. While high-end drum washers rely heavily on efficient NdFeB motors to meet stringent energy labels, the volatility of rare earth prices is prompting manufacturers to cautiously explore alternative motor designs or reduce magnet grades in non-critical applications. Consequently, the industry has adopted a strategy of gradual reduction rather than abrupt substitution, balancing performance requirements with cost control. Outlook: The trajectory for white goods in 2026 is undeniably pessimistic. Both production volumes and technical intensity (dosage per unit) are trending downward, creating a double drag on Pr-Nd demand. II. Consumer Electronics: Volume Resilience vs. Intensity Decline The consumer electronics sector, modeled by SMM, comprises four main segments: Mobile Phones , Tablets , Desktops/Laptops , and Smartwatches . These devices utilize NdFeB primarily for acoustic components (speakers/receivers) and haptic feedback motors, with emerging uses in magnetic charging interfaces. The specific consumption is generally low, ranging from 2-5g/unit , except for desktops which average 15g/unit . Market Performance (Jan-Feb 2026): Mobile Phones: 220 million units (+6.8% YoY). Micro-computer Equipment: 41.956 million units (-31% YoY). Breakdown: 21% Tablets, 27% Desktops, 52% Laptops. Smartwatches: 8.196 million units (+7.8% YoY). (Reason: The divergence in performance is stark. Mobile phone growth is driven by the global rollout of AI-enabled handsets and the replacement cycle for 5G devices, particularly in emerging markets. Conversely, the sharp collapse in micro-computer equipment reflects the post-pandemic normalization of demand; the massive stockpiling of devices during 2020-2022 has led to a prolonged digestion phase. Additionally, extended device lifespans due to improved hardware durability have further suppressed replacement rates for PCs and tablets.) 2026 Full-Year Forecast: SMM anticipates a 1% growth for mobile phones and micro-computers combined, and a 5% growth for smartwatches. (Reason: The muted outlook for computing devices stems from persistent macroeconomic uncertainty and corporate IT budget tightening. For smartwatches, growth is fueled by increasing health-monitoring capabilities and deeper ecosystem integration with smartphones. However, the entire sector faces a cloud of uncertainty due to escalating geopolitical tensions affecting supply chains and rising memory chip prices, which may force OEMs to revise production targets downward later in the year.) Demand Estimation: Mobile Phones: 3,109.8 tons Micro-computers: 2,018.9 tons Smartwatches: 125.06 tons Total 2026 Demand: 5,253.76 tons , a 3% decline from 5,421.19 tons in 2025. The primary driver for this decline is the continuous, albeit slow, reduction in specific consumption. As miniaturization advances and alternative magnetic materials improve, the amount of NdFeB required per device is shrinking. Despite the relatively low single-unit dosage, the massive scale of the consumer electronics industry ensures it remains a significant consumer of NdFeB. Moreover, this sector is characterized by highly standardized supply chains, where major OEMs maintain binding agreements with certified magnet suppliers, making demand relatively stable but resistant to price-driven spikes. III. Real Estate Related: Elevators and Power Tools The final segment covers industries tightly coupled with the real estate cycle: Elevators and Handheld Power Tools . 1. Elevators: Policy Support vs. Structural Headwinds In January-February 2026, elevator production reached 150,000 units , a 7.1% YoY increase . (Reason: This short-term surge is largely attributable to the acceleration of projects that were delayed in late 2025, as developers rushed to meet pre-delivery deadlines before stricter regulatory inspections took effect. Additionally, government mandates for retrofitting old residential communities with elevators in urban renewal zones provided a temporary boost to order books.) However, SMM forecasts a full-year contraction of -3% for 2026. (Reason: The long-term outlook is grim due to the fundamental slowdown in new residential construction starts, which remain at multi-year lows. The debt crisis plaguing major property developers continues to stall new project launches, directly impacting the demand for new elevator installations. While the retrofit market offers some support, it is insufficient to offset the collapse in new building commissions.) Calculation: Energy-saving Elevator Penetration: 90% Specific Consumption: 6 kg/unit (for energy-saving models). Total 2026 Demand: 7,222.6 tons , a 1.3% increase from 7,125.3 tons in 2025. (Reason for Growth: The slight increase in total tonnage despite falling production volumes is entirely driven by the rising penetration of energy-saving elevators. Stricter national energy efficiency standards (GB standards) are forcing manufacturers to adopt permanent magnet synchronous motors (PMSM) over traditional asynchronous motors, thereby increasing the average NdFeB dosage per unit even as the total number of units declines.) 2. Handheld Power Tools: A Direct Casualty of Property Slump Production of handheld power tools in Jan-Feb 2026 was 29.566 million units , down 0.24% YoY . SMM projects a -3% decline for the full year 2026. (Reason: The downturn is inextricably linked to the stagnation in the global and domestic real estate markets. Reduced renovation activities and a slowdown in infrastructure projects have dampened demand for professional-grade tools. Furthermore, high inventory levels in distribution channels across North America and Europe, resulting from over-ordering in 2024, have led to a prolonged period of destocking.) Definition & Scope: According to the National Bureau of Statistics, handheld electric tools refer to portable motor-driven tools operated by hand, including electric drills, grinders, sanders, saws, and screwdrivers . These products are highly sensitive to housing turnover and renovation rates. Demand Calculation: NdFeB Penetration: 60% Specific Consumption: 80g/unit Total 2026 Demand: 9,134 tons , a sharp 13.4% drop from 10,548 tons in 2025. The significant contraction in this sector underscores the deep correlation between the property market and industrial metal demand. As the real estate sector remains in a prolonged adjustment phase, the downstream demand for power tools—and consequently NdFeB—faces sustained pressure. Conclusion The analysis of white goods, consumer electronics, and real estate-related sectors paints a picture of structural weakness for 2026. While niche policy drivers (like energy-saving elevator mandates) provide isolated pockets of growth, the overarching trends are defined by production saturation, inventory destocking, and aggressive material substitution . The combined effect of lower production volumes and reduced single-unit dosages creates a formidable headwind for Pr-Nd prices. In the final installment of this series, we will pivot to the future: examining the burgeoning demand from Low-Altitude Economy (eVTOLs), Robotics (Industrial and Service), and the relentless expansion of Electric Two-Wheelers . These emerging sectors may hold the key to offsetting the declines observed in traditional industries and reshaping the long-term demand curve for rare earth magnets.

From January to February 2026, China's air conditioner production reached 40.118 million units, up 0.7% YoY. From January to February, national refrigerator production reached 16.643 million units, up 6.5% YoY. From January to February, national washing machine production reached 18.579 million units, down 0.8% YoY. From January to February, national color TV production reached 24.678 million units, up 2.3% YoY. In February 2026, China exported 6.84 million air conditioners, up 1.2% YoY; cumulative exports from January to February totaled 13.15 million units, down 6.5% YoY. Refrigerator exports reached 6.93 million units in February, up 26.6% YoY; cumulative exports from January to February totaled 14.91 million units, up 18.6% YoY. Washing machine exports reached 2.7 million units in February, up 18.1% YoY; cumulative exports from January to February totaled 6.1 million units, up 11.8% YoY. LCD TV exports reached 8.53 million units in February, up 34.4% YoY; cumulative exports from January to February totaled 17.69 million units, up 17.2% YoY.

Macro News 1. The spokesperson of the Ministry of Foreign Affairs announced that, at the invitation of President Kassym-Jomart Tokayev of the Republic of Kazakhstan, President Xi Jinping will attend the second China-Central Asia Summit in Astana, Kazakhstan, from June 16 to 18. 2. Li Qiang chaired a State Council executive meeting to deploy the replication and promotion of pilot measures in the China (Shanghai) Pilot Free Trade Zone, hear reports on the construction of a new model for real estate development and the promotion of high-quality housing, and study measures to optimize the centralised procurement of pharmaceuticals and medical consumables. 3. According to data from the People's Bank of China, at the end of May, the balance of broad money (M2) was 325.78 trillion yuan, up 7.9% YoY. The balance of narrow money (M1) was 108.91 trillion yuan, up 2.3% YoY. The balance of currency in circulation (M0) was 13.13 trillion yuan, up 12.1% YoY. Net cash injection in the first five months was 306.4 billion yuan. The increase in aggregate social financing in January-May was 18.63 trillion yuan, 3.83 trillion yuan more than the same period last year. RMB loans increased by 10.68 trillion yuan in the first five months. 4. On June 13, the People's Bank of China announced again that it would conduct 400 billion yuan of outright reverse repo operations on June 16 with a term of six months (182 days), indicating that the central bank would achieve a net injection for the entire month. 5. The World Trade Organization held the second annual meeting of the Council for Trade in Services in Geneva, Switzerland, on June 13. China pointed out the misleading narrative and erroneous logic of the US's "reciprocal tariff" and urged the US to comply with WTO rules, resolve differences through multilateral cooperation rather than unilateral measures, and jointly maintain the stability of the global trading system with all parties. 6. The New Zealand government's official website announced that starting from November 2025, Chinese passport holders entering New Zealand from Australia with valid Australian tourist, work, student, or family visas will be exempt from visa requirements for stays of up to three months. Industry News 1. Eight departments, including the Ministry of Industry and Information Technology, are soliciting public comments on the "Guidelines for the Security of Outbound Automobile Data (2025 Edition)". Automobile data processors shall declare a security assessment for outbound data if they provide automobile data overseas under any of the following circumstances: (1) providing important data overseas; (2) cumulatively providing personal information (excluding sensitive personal information) of more than 1 million individuals overseas since January 1 of the current year; (3) cumulatively providing sensitive personal information of more than 10,000 individuals overseas since January 1 of the current year; (4) operators of critical information infrastructure providing personal information overseas; (5) other circumstances requiring a security assessment for outbound data as specified by relevant state regulations. 2. On the 15th, the official WeChat account of the Shenzhen Municipal Committee of the Revolutionary Committee of the Chinese Kuomintang (RCCCK) published an article by He Jie, Chairman of the Shenzhen Municipal Committee of the RCCCK, discussing Shenzhen's new mission in comprehensive reform. He Jie stated that relevant departments in Shenzhen are currently formulating relevant listing rules, with the expectation of piloting the secondary listing of red-chip stocks, which will provide more convenient and efficient listing channels for science and technology innovation enterprises. He Jie emphasized that the blueprint for comprehensive reform "2.0" has already been drawn up, and the key lies in effective implementation. Many reforms are still framework-based and directional in nature, requiring integration with practical needs, particularly achieving an organic combination of "top-level design and local initiatives." 3. According to statistics from Choice, as of June 14th, 105 public offering products (with multiple share classes combined) have been liquidated since the beginning of this year. In terms of termination reasons, 83 products were terminated due to the net asset value of the fund falling below contractual limits, 21 products were terminated with the consent of the fund holders' meeting, and 1 product was terminated due to contract expiration. Among these, equity liquidations accounted for 70%, with industry-themed funds in sectors such as new energy, pharmaceuticals, and consumption becoming the "hardest-hit areas." 4. The China Securities Regulatory Commission (CSRC) issued an administrative penalty decision. During the period in question, the account group controlled by Tu Wenbin had significant capital advantages, manipulating the prices of multiple stocks through continuous trading, driving up stock prices, large-volume limit-up orders, and false order placements and cancellations. The CSRC decided to impose penalties, with the total amount of fines and confiscations reaching nearly 77 million yuan. 5. On June 15th, a reporter learned from China National Nuclear Corporation (CNNC) that yttrium-90 glass microspheres irradiated by Qinshan Nuclear Power's "Hefu No. 1" reactor were successfully removed from the reactor and passed relevant detections, marking China's successful mastery of the technology for producing yttrium-90 in commercial reactors, enabling mass production. 6. The opening forum of the Golden Goblet Film Forum at the 27th Shanghai International Film Festival was held on June 15th. Participants unanimously agreed that the current film market has reached a moment for a fresh start. Facing industry challenges, chairmen and executives of multiple listed film companies discussed solutions, with directions such as increasing non-ticket revenue, reducing the number of films produced, and lowering production costs emerging as potential solutions. Corporate News 1. Kweichow Moutai announced an adjustment to its 2024 annual profit distribution plan, increasing the dividend per share to 27.673 yuan/share. 2. On June 14th, POP MART Korea issued an announcement stating that due to concerns about potential safety accidents at recent offline sales venues, the company has decided to temporarily suspend offline sales of the entire LABUBU plush toy and LABUBU plush keychain series. 3. GAC Group issued a commitment announcement, stating that it will ensure the fulfillment of dealer rebates within two months from today. 4. Guotai Haitong Securities announced that it has received an administrative licensing decision from the People's Bank of China (PBOC) for the issuance of 15 billion yuan in science and technology innovation bonds. 5. Yong'an Pharmaceutical announced that the company's stock price has risen significantly in the short term, severely deviating from the overall market trend, and there is a high risk of speculation. 6. *ST Tongzhou announced that the company's stock will be suspended for one day on June 16, and starting from June 17, the delisting risk warning and other risk warnings will be revoked, with the stock abbreviation changing to Tongzhou Electronics. 7. Haimo Technologies announced that the controlling shareholder and actual controller are proposed to be changed to Fan Zhonghua, and the stock will resume trading from June 16. 8. *ST Haiyue announced that it will repurchase company shares worth 30 million to 50 million yuan during the delisting consolidation period. 9. Huayang New Materials issued a stock trading risk warning announcement, stating that the company does not possess the attributes of rare earth permanent magnets. 10. Honghui Fruits & Vegetables announced that the controlling shareholder is proposed to be changed to Shenze Ruitai, and the company's stock and convertible bonds will resume trading from the opening of the market on June 16. 11. Ruifeng Gaocai issued an announcement in response to rumors about the board secretary being placed under investigation, stating that the investigation does not involve the company's stock trading and that current production and operations are normal. 12. Haers stated on an interactive platform that its past cooperation with POP MART has been terminated, and the scope of the previous cooperation did not include Labubu. Global Markets 3. According to CCTV News, US President Trump stated on social media in the early hours of the 15th (Eastern Time) that "the United States has nothing to do with tonight's attacks on Iran" and warned that if Iran attacks the US in any form, the US armed forces will "respond with full force on an unprecedented scale." In addition, Trump claimed that the US could "easily facilitate an agreement to end this bloody conflict," but did not elaborate on how the agreement would be reached. 4. On Friday last week, US stocks opened lower and continued to decline, with all three major indices falling more than 1%. The Dow Jones Industrial Average fell 1.32% for the week; the Nasdaq Composite fell 0.63% for the week; and the S&P 500 index fell 0.39% for the week. Most large-cap tech stocks declined, with Intel falling more than 3% and Nvidia falling more than 2%; Tesla rose approximately 2%. The energy sector bucked the trend and surged, with Houston Energy rising more than 119% and US Energy rising more than 55%. Drone manufacturer Airo's US IPO closed up 140% on its first day. Oracle rose more than 7% for the week, nearly 24%, marking its best weekly performance since 2001. Most popular Chinese ADRs closed lower, with the Nasdaq Golden Dragon China Index falling 2.74%. Fangdd Network fell more than 9%, WeRide fell more than 7%, Kingsoft Cloud fell more than 6%, XPeng Motors fell more than 5%, Alibaba, Bilibili, and Li Auto all fell more than 3%, and JD.com, Pinduoduo, and Baidu all fell more than 2%. Investment Opportunities Reference 1. Xiaomi Auto unveils solid-state battery patent; institutions say eVTOL + humanoid robots open up incremental space for solid-state batteries Intellectual property information from Tianyancha shows that recently, Xiaomi Auto Technology Co., Ltd. applied for a patent titled "Solid-state battery composite electrode, preparation method, and solid-state battery comprising the composite electrode," which has been made public. The abstract indicates that the solid-state battery composite electrode disclosed in the patent effectively shortens the transmission path of metal ions in thick electrodes and accelerates the transmission rate of metal ions between electrodes, featuring high electrode loading and C-rate performance. Dongxing Securities stated that with the gradual entry of fields such as eVTOL and humanoid robots into a phase of rapid growth, along with the release of technological solutions and industrialisation application timelines for all-solid-state batteries by various enterprises, driven by sustained new demand, the application and implementation of solid-state battery technology is expected to accelerate, with the industrialisation process already showing an accelerating trend. Battery enterprises with a first-mover advantage in solid-state battery technology and leading application deployment will primarily benefit. Sihan Industry Research Institute believes that AI is empowering industrial transformation, with eVTOL and humanoid robots opening up incremental space for solid-state batteries. 2. AI inference demand is accelerating, and this solution has become a focus for self-development among major cloud providers According to media reports, while GPUs have advantages in general-purpose accelerated computing scenarios, they face challenges such as high costs and power consumption in specific scenarios, prompting buyers to seek alternative types of chips for support. Customised ASIC chips have become a focal point of attention. Recently, NVIDIA introduced NVLink Fusion, directly targeting Broadcom's high-growth market: AI custom chips. This also means there are new entrants in the ASIC chip market. As AI models become increasingly powerful, the demand for AI inference is accelerating, with ASIC customised solutions offering better energy efficiency and cost advantages becoming a focus for self-development among major cloud providers, with upgraded versions typically released every 1-2 years. Guojin Securities believes that compared to GPUs, ASICs can be custom-developed for specific business scenarios, and the substantial demand for inference computing power and cost reduction will effectively drive the growth of ASIC demand. They are optimistic about ASIC design service companies, Ethernet white-box switch producers, Ethernet switching chip producers, AEC producers, and PCB producers. 3. Against the backdrop of strong supply constraints and a concentrated industry structure, these chemicals are currently in a price upcycle Institutions have pointed out that as temperatures rise, the demand for refrigerant maintenance is gradually becoming robust, with genuine sales boosting channel price confidence. Downstream air conditioner production schedules from June to August remain high on a YoY basis, with the demand side continuing to provide positive feedback. The long-term bullish trend for refrigerants remains unchanged. Against the backdrop of equal domestic and international trade quotes for mainstream refrigerants, the performance release certainty of refrigerant-related producers has strengthened. Founder Securities pointed out that refrigerants are one of the largest and most widely applied segments in the fluorochemical industry. The Montreal Protocol has driven the generational transition of refrigerants. Currently, the refrigerant industry is in a phase of accelerated reduction of second-generation refrigerants, quota freezing of third-generation refrigerants, and patent protection for fourth-generation refrigerants. Against the backdrop of strong supply constraints and a concentrated industry structure, second- and third-generation refrigerants are currently in a price upcycle. The downstream air conditioning and automotive industries are expected to maintain growth trends, with third-generation refrigerants expected to see both volume and price increases. In addition, fluorine-containing fine chemicals are a niche but high-quality segment within the fluorine chemical industry, characterized by high product barriers and added value, with significant growth in market demand in recent years. With the development of emerging industries such as new energy and electronics, their market size continues to expand. 4. Institutions Say Defense and Military Demand Expected to Recover, with Long-Term Growth Certainty in Relevant Sectors Research reports from institutions indicate that, as 2025 marks the final year of the "14th Five-Year Plan" and the planning year for the "15th Five-Year Plan," demand in the defense and military sector is expected to recover. Research reports from Northeast Securities point out that, at the current juncture, as the "14th Five-Year Plan" enters its final year, disruptive factors in the military industry have largely been eliminated, and downstream demand is showing restorative growth. Meanwhile, with the impending 2027 construction target, medium and long-term goals also provide clear guidance for the industry's development: to basically achieve the modernization of national defense and the military by 2035, and to comprehensively build the People's Liberation Army into a world-class military by 2050. Along with the recovery in demand and the gradual optimization of capacity structure, the defense and military sector is expected to see significant improvement, with high safety margins and long-term growth certainty.

Copper Pipe & Tube Enterprises' Operating Rate in May Was 81.76%

Guosen Securities released a research report stating that the production schedule data for domestic air conditioner sales in the first half of 2025 (H1) continued to rise. From January to February, production was reduced to accommodate exports, while production gradually increased in March. In addition to seasonal stockpiling factors, the program of large-scale equipment upgrades and consumer goods trade-ins also significantly contributed to this growth. In May, as the 618 shopping festival period approached and demand peaked, the production schedule showed strong growth. Driven by the high summer temperatures in the second quarter (Q2), refrigerant consumption entered the peak season, and trading activity gradually increased against the backdrop of low inventory levels. Looking ahead to the third quarter (Q3), with the continued implementation of the "trade-in policy" and enterprises entering maintenance cycles after high-load production in the first half of the year, it is expected that market prices will exhibit a monthly stepped increase in Q3, and the market is anticipated to further strengthen under mild stimulus.

On May 29, at the 2025 SMM (2nd) Rare Earth Industry Forum hosted by SMM Information & Technology Co., Ltd. (SMM), Su Zhanpeng, an analyst from SMM's Rare Earth Division, shared insights on the transformation of the NdFeB industry driven by policies, the restructuring of supply and demand, and strategies for enterprises to break through. NdFeB permanent magnets dominate the permanent magnet materials market, with high-performance NdFeB leading the industry's development. Overview of Magnetic Materials: Currently, magnetic materials are mainly divided into two categories: permanent magnet materials and soft magnetic materials. Permanent magnet materials possess enduring magnetism and are the most widely used magnetic materials. Among them, NdFeB alloys and ferrite permanent magnet materials hold significant positions in the technological field. On the other hand, although soft magnetic materials can be magnetized under the influence of an external magnetic field, their magnetism is unstable and easily lost due to external factors. Compared to ferrite, NdFeB exhibits higher BH and coercivity, enabling it to provide stronger magnetic performance in a smaller volume. Meanwhile, NdFeB permanent magnets, with their high energy density and stability, are irreplaceable in high-end industrial, new energy, and consumer electronics applications, while ferrite, due to its performance limitations, is mostly used in low-power, low-cost, low and mid-end applications. Overview of NdFeB Permanent Magnet End-Use Markets The end-use markets for NdFeB permanent magnets are mainly concentrated in six areas: consumer electronics, NEVs, clean energy, new-type fields, energy-efficient elevators, and energy-efficient home appliances. Among these, emerging markets such as NEVs, energy-efficient home appliances, wind power generation, and industrial robots account for the majority of the market share. In 2025, the increasing penetration of NEVs, the rise of emerging economies such as humanoid robots and the low-altitude economy, and the national subsidy policies in the home appliances and consumer electronics sectors will continue to inject new vitality into the future market of NdFeB. However, due to adjustments in the real estate market and technological breakthroughs in wind power raw materials, the demand for NdFeB in energy-efficient elevators and wind power generation has decreased. Analysis and Forecast of NdFeB End-Use Demand Affected by export controls, rare earth permanent magnet exports in April 2025 decreased by 45% YoY. In April 2025, rare earth permanent magnet exports were affected by export controls, decreasing by 45% YoY and 51% MoM. However, the cumulative export volume from January to April increased by 2% YoY. Due to the newly implemented export control measures in April, there has been a certain impact on export trade, resulting in a need for improvement in recent export conditions. With the smooth recovery of exports of magnetic materials that do not contain medium-heavy rare earth and the sequential approval of licenses for those that do, rare earth permanent magnet exports will show a trend of recovery, but it will be difficult to restore the original export volume in the short term. China's NEV production in 2025 is expected to reach 17.89 million units, up approximately 29% YoY. According to CAAM data, full-year 2024 NEV production and sales reached 12.888 million and 12.866 million units respectively, up 34.4% and 35.5% YoY. China's NEV market maintained growth momentum in 2024, with sales accounting for 40.9% of total auto sales. NdFeB demand from NEVs reached 57,000 mt, up 38% YoY. In 2025, NEV policies will feature "central coordination + local refinement", promoting market penetration through consumption subsidies, technical support, and public sector pilots. NEV production is expected to maintain rapid growth, with China's output projected at 17.89 million units (up 29% YoY), market penetration likely exceeding 55%, and total NdFeB demand reaching 75,000 mt. China's new wind power installations in 2025 are forecast at 87GW, up 8% YoY. Per National Energy Administration statistics, China added 80.454GW of wind capacity in 2024 (up 6% YoY), with NdFeB demand at 9,735 mt (YoY growth rate down 21%). Due to cost constraints, the penetration rate of direct-drive motors has declined annually, leading to reduced NdFeB demand from China's wind installations in 2024. As a key end-use sector for rare earths, although demand growth from wind power has slowed recently, it remains a major long-term driver for sustained rare earth demand. Projections indicate China will add 87GW of wind capacity in 2025 (up 9% YoY), requiring 8,341 mt of NdFeB. China's 2025 air conditioner production is expected to reach 320 million units, up 18% YoY. NBS data shows China produced 270 million air conditioners in 2024 (up 10% YoY), with NdFeB demand at 21,000 mt (YoY growth rate 26%). Since September 2024, government trade-in subsidies combined with promotional events like "Double 11" and year-end sales have boosted the home appliance market. In 2025, the home appliance sector will demonstrate positive development trends driven by recovering demand, technological innovation, and policy support. Expanded trade-in subsidies will significantly boost air conditioner production and sales. Output is projected at 330 million units (up 25% YoY), generating 26,000 mt of NdFeB demand. It is projected that the production of energy-efficient elevators will reach 1.41 million units in 2025, down 3% YoY. According to the latest data from the National Bureau of Statistics (NBS), in 2024, the national production of elevators, escalators, and lifts was 1.458 million units, a 5.8% decrease YoY. The demand for NdFeB was 7,508 mt, with the YoY growth rate of demand declining by 6%. In 2024, the adjustment of the real estate market had a certain impact on the demand for new elevator installations. In 2025, the demand for elevators in infrastructure, industrial sectors, and retrofitting projects in old residential communities is expected to grow significantly. In particular, the export market in countries along the "Belt and Road" initiative provides new growth opportunities for Chinese elevator enterprises. It is projected that the production of energy-efficient elevators will reach 1.41 million units in 2025, down 3% YoY, and the demand for NdFeB will reach 7,368 mt. It is projected that the production of mobile phones will reach 1.85 billion units in 2025, up 10% YoY. According to the latest data from the NBS, in 2024, China's mobile phone production was 1.68 billion units, up 7.3% YoY, and the demand for NdFeB reached 3,362 mt, up 7.3% YoY. In 2024, the "national subsidy" policy implemented by the state provided generous purchase subsidies to consumers, significantly stimulating market demand. With the recovery of the mobile phone industry and technological innovation, the rare earth industry will gain new development opportunities. The increase in market demand for mobile phones will drive the expansion of capacity and technological progress in the rare earth industry. It is projected that the production of mobile phones will reach 1.85 billion units in 2025, up 10% YoY, and the demand for NdFeB is expected to reach 3,698 mt. It is projected that the production of industrial robots in China will reach 941,000 units in 2025, up 55% YoY. According to the latest data from the NBS, in 2024, the cumulative production of industrial robots in China was 608,000 units, up 41.4% YoY, and the demand for NdFeB was 12,147 mt, with a YoY growth rate of 41%. With the deepening implementation of the national "Intelligent Manufacturing 2035" action plan, combined with special government subsidies for robot industry clusters and the outbreak of emerging application scenarios, the acceleration of industrial automation transformation has been further promoted, leading to a continuous expansion in the demand for industrial robots. 2025 is regarded as the first year of mass production for humanoid robots, and the high growth prospects of this industry have created new growth opportunities for the rare earth permanent magnets market. It is projected that the production of industrial robots in China will reach 941,000 units in 2025, up 55% YoY, and the demand for NdFeB is expected to reach 18,828 mt. Review and Forecast of NdFeB Supply It is projected that China's rare earth mining quotas will remain unchanged in 2025. On February 19, 2025, the Ministry of Industry and Information Technology (MIIT) issued the "Administrative Measures for the Regulation of Total Rare Earth Mining and Smelting and Separation" and the "Administrative Measures for the Traceability of Rare Earth Product Information."According to the "Administrative Measures for Total Volume Control", the scope of rare earth ore products in China explicitly includes imported ores from overseas, monazite by-product ores, etc. For the first time, imported resources have been incorporated into smelting and mining quotas for total volume control. It is projected that the rare earth smelting and separation quota will reach 350,000 mt in 2025. On April 4, 2025, the state announced the implementation of export control policies for medium-heavy rare earth, which partially impacted the NdFeB market. Based on the analysis of the current market situation, SMM expects that rare earth mining quotas in 2025 may remain flat. This includes 251,000 mt of rock-type rare earth and 19,000 mt of ion-adsorption type rare earth. NdFeB production in 2025 will continue to rise due to supply and demand dynamics. As the largest producer of rare earth permanent magnet materials, China has maintained a steady growth trend in both production and consumption of rare earth permanent magnet materials in recent years. In 2024, China's rare earth permanent magnet material production was approximately 246,500 mt, up 14% YoY. It is expected that production will reach 265,000 mt in 2025. In 2025, several top-tier enterprises have expansion plans, including those in Zhejiang, Jiangxi, Inner Mongolia, Beijing, etc. However, due to the impact of export controls, rare earth permanent magnet exports have decreased, affecting NdFeB production and potentially delaying enterprise expansion plans. China's Rare Earth Supply-Demand Pattern and Market Outlook Monthly NdFeB Supply-Demand Balance and Future Projections The supply-demand gap widened in November-December 2024, mainly due to the concentrated release of end-use demand at year-end, such as wind power projects pushing for annual installation targets at year-end. Downstream end-user production increased, leading to a surge in NdFeB demand. In January-February 2025, end-use demand decreased following the concentrated release in Q4 2024 and the approaching Chinese New Year, with magnetic material enterprises reducing their operations. From April to July 2025, exports plummeted due to export controls. Additionally, May is a traditional off-season, and magnetic material enterprises took fewer orders due to end-use demand, resulting in lower supply. As end-use demand recovered in June, the supply-demand gap continued to widen. Starting from August 2025, export license approvals were gradually granted, leading to a rebound in exports. In September, influenced by the end-use market's advance stockpiling for production, demand surged. Review and Causes of NdFeB Price Trends from 2024 to 2025 Taking 52UH as an example, as of December 31, 2024, the price of 52UH blanks was reported at 390 yuan/kg, up 25 yuan/kg from 365 yuan/kg at the beginning of the year, representing a 6.8% increase. As the most widely used blank grade in NEVs, the price of 52UH is influenced by end-use supply and demand and raw material prices, showing an overall upward trend. However, under the impact of the export control policy announced in April 2025, export orders decreased significantly, causing prices to pull back. With the implementation of policies and the increase in end-use demand, it is expected that prices will rise slightly in the later period. Outlook for Rare Earth Development Trends in 2025 Demand Side: 1. Affected by export control policies, the exports of rare earth permanent magnets have significantly decreased. Despite the sequential approval of export licenses, it will be difficult to restore the original export volume in the short term. 2. In 2025, China's NEV industry will enter a critical stage of high-quality development, with significant breakthroughs expected in industry scale, technological innovation, market penetration, and other aspects. 3. In 2025, new installations of wind power will continue to grow due to the influence of green transformation and low-carbonization. However, due to technological iterations in raw materials, the demand for NdFeB in onshore wind power projects will decrease. Nevertheless, with the development of offshore wind power, the demand for NdFeB will surge. In the long run, it will remain the main driving force for the sustained growth of rare earth demand. 4. In 2025, the home appliance industry will show a positive development trend driven by the recovery of market demand, technological innovation, and policy support, leading to a continuous increase in the demand for NdFeB. 5. In 2025, energy-saving elevators will be affected by adjustments in the real estate market, but the demand for elevators in infrastructure, industrial sectors, and the installation of elevators in old residential communities will increase significantly, resulting in a relatively small decrease in the demand for NdFeB. 6. In 2025, with the recovery of the mobile phone industry and technological innovation, the increase in mobile phone market demand will drive the expansion of capacity and technological progress in the rare earth industry. 7. The application of humanoid robots in manufacturing, healthcare, services, security, and other fields continues to expand, and is expected to become a new growth point for rare earth downstream demand. This trend will become more pronounced in 2025 and the coming years. Supply Side: 1. The rare earth mining quotas for 2025 have not yet been issued. Affected by export control policies and combined with the current market situation, it is expected that the mining quotas for 2025 will remain flat YoY. 2. The implementation of the "Administrative Measures for the Regulation of Total Rare Earth Mining and Smelting and Separation" and the "Administrative Measures for the Traceability of Rare Earth Product Information" will enhance the transparency of the circulation of rare earth products. Additionally, for the first time, overseas rare earth ores will be included in the smelting and separation quotas, facilitating macroeconomic regulation. The smelting and mining quotas will increase. 3. Affected by export controls, the exports of rare earth permanent magnets are restricted. However, driven by the increase in domestic end-use market demand, the production of NdFeB will increase, and the production of NdFeB in 2025 will increase slightly. 》Click to view the special report on the 2025 SMM (2nd) Rare Earth Industry Forum

[SMM Analysis: NdFeB Production May Increase Slightly in 2025, with Rising Demand from NEVs, Home Appliances, and Robots as Highlights] Su Zhanpeng, an analyst from SMM's Rare Earths Division, shared insights into the transformation of the NdFeB industry driven by policies, the restructuring of supply and demand, and strategies for enterprises to break through. In 2025, the home appliance industry, driven by a rebound in market demand, technological innovation, and policy support, is showing a positive development trend, with a continuous increase in demand for NdFeB. The application of humanoid robots in manufacturing, healthcare, services, security, and other fields is expanding, and they are expected to become a new growth point for demand in the downstream rare earths sector. This trend will become more pronounced in 2025 and the coming years. Benefiting from increased demand in the domestic end-use market, which drives an increase in NdFeB production, NdFeB production will increase slightly in 2025.

In April 2025, China's air conditioner production reached 30.833 million units, up 1.6% YoY. In the same month, refrigerator production was 8.179 million units, down 10.7% YoY. Washing machine production stood at 9.651 million units, up 2.6% YoY, while color TV production was 16.074 million units, down 9.8% YoY. In April 2025, China exported 7.51 million air conditioners, up 12.1% YoY. From January to April, cumulative exports reached 29.71 million units, up 17.3% YoY. In April, refrigerator exports were 6.93 million units, down 2.8% YoY. From January to April, cumulative exports reached 26.8 million units, up 7.6% YoY. Washing machine exports in April were 2.92 million units, up 10.9% YoY. From January to April, cumulative exports reached 11.2 million units, up 4.6% YoY. In April, LCD TV exports were 8.6 million units, down 7.6% YoY. From January to April, cumulative exports reached 32.09 million units, up 1.2% YoY.

★Macro★ 01 ★★★ LPR for loans over 5 years drops by 10 basis points; 1 million yuan mortgage over 30 years reduces by 20,000 yuan The latest Loan Prime Rate (LPR) was released today, with the five-year LPR lowered to 3.5% from 3.6%. For a commercial loan of 1 million yuan with a 30-year term and equal principal and interest repayments, the 10 basis point drop in LPR will reduce the monthly payment by 56 yuan, accumulating to a total reduction of 20,000 yuan over 30 years. 02 ★★ NDRC: Most policies to stabilize employment and economy will be implemented by the end of June The National Development and Reform Commission (NDRC) held a May press conference. At the conference, Li Chao, Deputy Director of the Policy Research Office of the NDRC and spokesperson for the Commission, stated that on the basis of accelerating the implementation of existing policies, the NDRC has collaborated with relevant departments to expedite the introduction of several measures to stabilize employment, stabilize the economy, and promote high-quality development. Currently, relevant departments are urgently implementing these measures, with most policy initiatives planned to be in place by the end of June. Meanwhile, the NDRC will continue to strengthen policy pre-research and reserves on a regular and open-ended basis, continuously improving the policy toolkit for stabilizing employment and the economy to ensure timely implementation when needed. 03 ★★ NDRC: Aims to issue the full list of "two major" construction projects for this year by the end of June The NDRC held a May press conference on May 20. Li Chao, Deputy Director of the Policy Research Office of the NDRC and spokesperson for the Commission, stated that the NDRC aims to issue the full list of "two major" construction projects for this year by the end of June, ensuring high standards in organization and implementation. 04 ★★ Zhao Chengfeng of NDRC: Central budgetary investment plan for 2025 urban renewal projects to be issued by the end of June Zhao Chengfeng, Head of the Fixed Asset Investment Department of the NDRC, stated at a press conference held by the State Council Information Office that the NDRC will continue to advance various urban renewal initiatives and increase central investment support. This year, a special central budgetary investment has been established specifically for urban renewal to support the construction of public infrastructure and public service facilities related to urban renewal. In addition to supporting projects such as the renovation of old urban residential communities and urban village renovation, the scope of support has been expanded to include projects for the transformation and upgrading of dilapidated urban housing, old neighborhoods, and old factory districts. Currently, the NDRC is organizing plan submissions and project evaluations, and plans to issue the central budgetary investment plan for 2025 urban renewal projects by the end of June this year. ★Industries and Downstream Sectors★ 01 Xi Jinping: To Advance Chinese-style Modernization, We Must Continue to Excel in Manufacturing On the afternoon of the 19th, General Secretary Xi Jinping visited Luoyang Bearing Group Co., Ltd. in Henan Province for a field trip. He toured the company's intelligent factory, learned about the performance and applications of various bearing products, inspected the intelligent production lines, and had a cordial conversation with the company's employees. Xi Jinping said that we have adhered to developing the real economy, transitioning from relying on imports for matches, soap, and iron in the past to becoming the world's largest manufacturing country with the most comprehensive industrial categories. This path has been the right one. We must continue to excel in manufacturing, persist in self-reliance and self-improvement, master key core technologies, promote the integration of industry, academia, and research, and cultivate a large number of high-quality talents. Only in this way can Chinese-style modernization be truly achieved. 02 In April 2025, major excavator manufacturers sold 22,142 excavators, up 17.6% YoY According to statistics from the China Construction Machinery Industry Association, in April 2025, major excavator manufacturers sold 22,142 excavators, up 17.6% YoY. Of these, domestic sales reached 12,547 units, up 16.4% YoY, and exports amounted to 9,595 units, up 19.3% YoY. From January to April 2025, a total of 83,514 excavators were sold, up 21.4% YoY. Domestic sales reached 49,109 units, up 31.9% YoY, and exports amounted to 34,405 units, up 9.02% YoY. In April 2025, 25 electric excavators were sold (1 unit below 6 mt, 2 units in the 10-18.5 mt range, 18 units in the 18.5-28.5 mt range, 1 unit in the 28.5-40 mt range, and 3 units of 40 mt and above). 03 China's automobile production reached 2.604 million units in April According to data from the National Bureau of Statistics (NBS), by industry, in April, 36 out of 41 major industrial categories maintained year-on-year growth in added value. Among them, the automobile manufacturing industry grew by 9.2%. By product, in April, 341 out of 623 industrial products above designated size saw year-on-year growth in production. Among them, automobile production reached 2.604 million units, up 8.5% YoY, including 1.228 million NEVs, up 38.9% YoY. From January to April, automobile production reached 10.116 million units, up 11.1% YoY, including 4.395 million NEVs, up 43.7% YoY. 04 China's production figures for four major home appliances in April released According to data from the National Bureau of Statistics (NBS), in April 2025, China's air conditioner production reached 30.833 million units, up 1.6% YoY. The cumulative production from January to April reached 105.314 million units, up 7.2% YoY. In April, the national production of refrigerators reached 8.179 million units, down 10.7% YoY. The cumulative production from January to April was 32.204 million units, down 0.7% YoY. In April, the national production of washing machines reached 9.651 million units, up 2.6% YoY. The cumulative production from January to April was 39.188 million units, up 10.9% YoY. In April, the national production of color TVs reached 16.074 million units, down 9.8% YoY. The cumulative production from January to April was 59.666 million units, down 3.9% YoY. 05 [SMM Shenyang HRC Inventory] This week, the HRC inventory in Shenyang was 99,000 mt. This week, the HRC inventory in Shenyang was 99,000 mt, down 5,300 mt or 5.08% WoW, and down 70,000 mt or 41.42% YoY. 06 [SMM Zhangjiagang HRC Inventory] This week, the inventory in Zhangjiagang continued to decline steadily. This week, the HRC inventory in Zhangjiagang was 349,000 mt, down 22,000 mt or 5.93% WoW. It increased by 10.44% on a solar calendar YoY basis and by 12.58% on a lunar calendar YoY basis. 07 [SMM HRC Arrivals] Arrivals in mainstream markets decreased significantly. SMM Steel News on May 20: According to SMM statistics, the estimated total resource shipments in mainstream markets this week were 207,500 mt, a decrease of 37,000 mt compared to the shipment level last week. 08 [SMM Electric Furnace Operating Rate] Two electric furnace plants resumed production as scheduled, with the national operating rate rising to 38.46%. According to the SMM survey, as of May 20, the operating rate of 50 electric furnace steel mills mainly producing construction materials nationwide was 38.46%, up 1.3% from the previous period. The capacity utilisation rate was 39.72%, up 1.08% WoW. The daily average production of construction materials was 88,400 mt, an increase of 2,400 mt WoW. ★Other Hot Topics★ ⭕ [Six Major State-Owned Banks Collectively Lower Deposit Interest Rates Today, All One-Year Fixed Deposit Rates Reduced by 15 Basis Points] Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Postal Savings Bank of China, and Bank of Communications all announced today that they have lowered their deposit interest rates, with the reductions being consistent across the board. The specifics are as follows: ①Bank of China lowered its RMB deposit interest rates on May 20. The demand deposit interest rate was lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with terms of three months, six months, one year, and two years were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for fixed deposits with terms of three years and five years were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for time deposits with lump-sum deposit and withdrawal in installments, lump-sum deposit and lump-sum withdrawal in installments, and principal deposit with interest withdrawal were all lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%. ② On May 20, the Agricultural Bank of China reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%. ③ On May 20, the Industrial and Commercial Bank of China reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%. ④ On May 20, the China Construction Bank reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%. ⑤ On May 20, the Postal Savings Bank of China reduced the RMB deposit interest rates for multiple terms, with the demand deposit rate lowered to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, three-year, and five-year terms were all lowered to 0.65%, 0.86%, 0.98%, 1.25%, and 1.30%, respectively. ⑥ The Bank of Communications reduced the RMB deposit interest rates, with the demand deposit rate lowered by 5 basis points to 0.05%. The interest rates for fixed deposits with lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all lowered by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The interest rates for three-year and five-year terms were both lowered by 25 basis points to 1.25% and 1.3%, respectively. The interest rates for fixed deposits with small lump-sum deposit for withdrawal by installments, lump-sum deposit for small withdrawal by installments, and lump-sum deposit with interest withdrawal at maturity for all three terms were lowered by 15 basis points. The interest rate for 7-day notice deposits was lowered by 15 basis points to 0.3%. ⭕ [Thailand: Removal of Incentives for the Steel Manufacturing Industry] Nari Tesdirasudi, Secretary General of the Thailand Board of Investment (BOI), stated to the media on the 19th that the BOI has introduced four new measures aimed at enhancing the competitiveness of small and medium-sized enterprises (SMEs) in Thailand, mitigating risks arising from US trade policies, and integrating Thai enterprises into the global supply chain. ⭕ [Commencement of the 3-Million-Ton Short-Process Project by Yonggang Steel in Kazakhstan] Recently, the groundbreaking ceremony for the 3-million-ton short-process integrated steel mill project of the Yonggang Steel Group in Kazakhstan, which was overall designed by Shougang Engineering, was held in the Zhebekjoly Special Economic Zone, Jambyl Province, Kazakhstan. ⭕ [Australia Initiates Second Sunset Review Anti-Dumping Investigation on Wire Rods from China] On May 19, the Australian Anti-Dumping Commission issued Notice No. 2025/040, announcing the initiation of a second sunset review anti-dumping investigation on wire rods imported from China, in response to an application submitted by InfraBuild (Newcastle) Pty Ltd, an Australian domestic enterprise. The dumping investigation period for this case spans from April 1, 2024, to March 31, 2025, while the injury investigation period commenced on April 1, 2020. ⭕[South Africa Issues Final Safeguard Measure Determination on Imported Flat-Rolled Products] On May 16, 2025, the WTO issued a notification stating that the South African International Trade Administration Commission (ITAC), acting on behalf of the Southern African Customs Union (SACU), which includes Namibia, South Africa, Lesotho, Swaziland, and Botswana, has issued a final determination in the safeguard measure case concerning certain flat-rolled products of iron, non-alloy steel, or other alloy steel. The decision is to impose safeguard duties on the products in question at rates of 13% in the first year, 11% in the second year, and 9% in the third year, for a duration of three years. The South African tariff codes for the products in question are 7208.10, 7208.25, 7208.26, 7208.27, 7208.36, 7208.37, 7208.38, 7208.39, 7208.4, 7208.51, 7208.52, 7208.53, 7208.54, 7208.9, 7211.14, 7225.3, 7225.4, 7225.99, and 7226.99. The safeguard measures in this case do not apply to grain-oriented electrical silicon steel.

[SMM Analysis] According to SMM data, the estimated operating rate of copper pipe & tube producers in May 2025 was 80.07%, down 3.65 percentage points WoW and 3.25 percentage points YoY. According to SMM data, the operating rate of copper pipe & tube producers in March was 85.23%, up 14.95 percentage points WoW and down 0.74 percentage points YoY.