SMM Morning Meeting Summary: Overnight, LME copper opened at $11,816/mt. After dipping to $11,798/mt in early trading, its center rose sharply to a high of $12,395/mt, then hovered at highs, and finally closed at $12,221/mt, up 3.27%. Trading volume reached 52,000 lots, and open interest stood at 292,000 lots, down 944 lots from the previous trading day, mainly reflecting bears cutting positions overall. Overnight, the most-traded SHFE copper 2605 contract opened at 95,010 yuan/mt. After the opening, its center moved higher to a high of 95,900 yuan/mt, after which copper prices maintained a fluctuating trend at highs. Near the close, it dipped to 94,530 yuan/mt and finally closed at 93,840 yuan/mt, up 2.12%. Trading volume reached 120,000 lots, and open interest stood at 198,000 lots, down 6,741 lots from the previous trading day, mainly reflecting bears cutting positions throughout the day.

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.

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

Utah paid $30 million for a bankrupt magnesium plant—but not the $100 million cleanup. Its toxic legacy seeps toward the Great Salt Lake, unpaid. Across the Atlantic, Austria’s LKR cracked magnesium’s code: alloy ZAX210 now shapes into wire for medical implants and 3D printing. Two faces of the same metal: one buried in liability, the other alight with possibility.

Driven by the widespread application of artificial intelligence and computer chips across various sectors of the economy, the semiconductor industry's revenue is expected to reach $1 trillion for the first time this year. According to forecasts by the Semiconductor Industry Association (SIA), total semiconductor sales will reach $791.7 billion in 2025 and grow by an additional 26% in 2026. SIA CEO John Neuffer stated that the semiconductor market's breakthrough of the trillion-dollar milestone has occurred much faster than anticipated, which is a positive sign for the entire business world. Strong demand for new-type data center computers has brought substantial profits to NVIDIA, Micron Technology, and other chip manufacturers. This has enabled the industry to consistently exceed growth expectations. Neuffer noted that previous forecasters believed it might take another four years for the industry to reach the trillion-dollar scale.

Intel (INTC.O) CEO Chen Liwu stated that the memory chip shortage in the computer industry is likely to persist for at least two years. He said on Tuesday, "To my knowledge, there are no mitigation measures in place at the moment." Chen Liwu mentioned that he had spoken with two key figures in the memory field, who told him, "There will be no relief until 2028." The massive infrastructure development for artificial intelligence has significantly increased the demand for memory chips, which has reduced the supply of chips available for traditional computers and smartphones. This has led to chip shortages and price increases—potentially dampening consumer willingness to purchase these products. Chen Liwu also pointed out that Nvidia, as a leading supplier of AI processors, will further drive up memory demand with its latest Rubin platform and next-generation products, noting that AI will "consume a vast amount of memory.

[SMM Tin Morning News: The most-traded SHFE tin contract opened slightly higher in the night session and maintained a high-level sideways trend, with spot cargo transaction willingness showing initial signs of rebound]

From January 28 to 29, 2026, the Rubaya coltan mining area in North Kivu Province, eastern Democratic Republic of the Congo (DRC), was hit by massive landslides triggered by persistent heavy rainfall. The disaster caused the collapse of multiple artisanal mining tunnels. All mining operations at the affected mining area have been fully suspended, and nearby residents have completed emergency evacuation.

More than 200 people were killed this week in a collapse at the Rubaya coltan mine in eastern Democratic Republic of Congo, Lumumba Kambere Muyisa, spokesperson for the rebel-appointed governor of the province where the mine is located, told Reuters on Friday.

Rare earth permanent magnet concept stocks have been repeatedly active. As of Friday's close, BGRIMM Technology, which focuses on the R&D, production, sales, and services of mining and metallurgical equipment as well as magnetic materials, achieved five consecutive daily limit-ups. Huayang New Materials, whose subsidiary's business scope includes the recycling and utilization of high-magnetic rare earth materials, recorded three consecutive daily limit-ups. On the news front, the Ministry of Commerce stated that it reviews export license applications for rare earth-related items in accordance with laws and regulations, has approved a certain number of compliant applications, and will continue to strengthen the approval process for compliant applications. Ma Yan, an analyst at Caida Securities, pointed out in a research report on April 1 that assuming shipments of humanoid robots reach 890,000 units by 2030, the demand for rare earth permanent magnet materials in the humanoid robot sector is projected to reach 3,115 mt. The explosive growth in the market size of humanoid robots is expected to bring broad incremental space to the rare earth permanent magnet industry . Li Chao and Wang Qinyang, analysts at Guojin Securities, pointed out in a research report on February 20 that rare earth permanent magnets, as excellent magnets that currently balance performance and cost, are the top choice for magnetic components in humanoid robots and magnetic materials for low-altitude aircraft , and the dividends from industry chain integration are expected to gradually materialize. Emphasis should be placed on the layout opportunities brought about by "supply-side reform," integration, and the catalyzing effect of humanoid robots. Choice data shows that rare earth permanent magnet concept stocks that received institutional surveys in the past two months (April 14 - June 14) include Sinomine Resource Group, Shenghe Resources, JL MAG Rare-Earth, Xiamen Tungsten, Yahua Group, Zhenghai Magnetic Material, DMEGC, Lizhong Group, Zhongju Hi-Tech, Zhong Ke San Huan, Longi Magnet, China Northern Rare Earth, Xinlaifu, China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd., Goldwind Science&Technology, Instyle, GEM, Wuchan Zhongda Group, NCS Testing Technology Co., Ltd., Jintian Copper, Yian Technology, Advanced Powder Materials, and Sinosteel NMC . The specific situations are as follows: Among the above-mentioned rare earth permanent magnet concept stocks that received institutional surveys, publicly listed firms that have clearly responded regarding their "rare earth permanent magnet" related business situations mainly include Shenghe Resources, JL MAG Rare-Earth, Xiamen Tungsten, Zhenghai Magnetic Material, Zhong Ke San Huan, Longi Magnet, China Northern Rare Earth, Instyle, GEM, and Jintian Copper . Shenghe Resources disclosed an investor relations activity record on June 10, stating that the company maintains a close and good market cooperation relationship with major domestic rare earth concentrate suppliers . In addition, the company has signed long-term supply agreements for rare earth concentrates with Sichuan Hedi Mining, US MP Materials, Peak Rare Earths, and others, establishing a diversified supply channel for rare earth concentrates and providing sufficient raw material guarantees for the company's downstream businesses such as rare earth smelting and separation. Additionally, the imports of ore from Myanmar have been significantly influenced by the local situation, exhibiting fluctuating characteristics. The company will continue to closely monitor the situation of ore from Myanmar. During a survey conducted by institutions on June 13, JL MAG Rare-Earth stated that after the implementation of export control measures on medium-heavy rare earth-related items, the company had initiated export declaration work in accordance with relevant national regulations. It had also successively obtained export licenses issued by national authorities. The export regions include the US, Europe, and Southeast Asia, among others. The company exports magnetic materials, components, and motor rotors in compliance with laws and regulations. The company has established production facilities in Ganzhou, Jiangxi, a major production area for heavy rare earths, and in Baotou, Inner Mongolia, a major production area for light rare earths. The company has established long-term strategic cooperative relationships with major suppliers of rare earth raw materials, including China Northern Rare Earth Group and China Rare Earth Group. In 2024, the procurement amount from these two groups accounted for 63% of the company's total annual procurement. On May 21, Xiamen Tungsten disclosed the record of investor relations activities, indicating that since the second half of 2024, rare earth prices have generally shown a steady upward trend. If this trend continues, the price center of rare earths will gradually rise, and the fluctuation range will narrow compared to the past. In terms of magnetic material capacity layout, Jinlong Rare Earth has achieved an annual production capacity of 12,000 mt at its Changting base and is currently planning new capacity projects at its Changting and Baotou bases. Upon full commissioning of these two projects, Jinlong Rare Earth's magnetic material capacity will reach 22,000 mt. At the performance briefing on May 15, Zhenghai Magnetic Material, when answering the question "What rare earth permanent magnet projects are currently under construction?", stated that the construction of the third phase of 6,000 mt capacity at the company's Nantong base will adjust the investment pace and method in a timely manner based on changes in the external economic environment. The company's sales of high-performance NdFeB permanent magnet materials have achieved seven consecutive years of growth. During a survey conducted by institutions on May 23, Zhong Ke San Huan stated that the current export control measures on medium-heavy rare earth-related items mainly involve the company's NdFeB permanent magnet material products containing dysprosium and terbium. Exporting these products requires declaration and approval before they can be exported. The company has proactively taken measures to initiate export declarations in accordance with relevant regulations at the earliest opportunity, and has already obtained export licenses for a small number of orders. The company's main products are NdFeB permanent magnet materials, which are currently widely used in automobiles (including NEVs), consumer electronics, industrial robots, computers, energy-efficient home appliances, wind power, industrial motors, and other fields. Longi Magnet disclosed the record of investor relations activities on May 27, stating that building a capacity of 60,000 mt for permanent ferrite magnetic tiles has always been a medium and long-term goal . The company will make more optimizations in capacity layout integration, existing capacity utilization, and efficiency improvement, striving to increase capacity through low-cost expansion methods and controlling the pace of capacity release based on downstream demand. The technological transformation and upgrading work at the production sites in Lujiang, Jinzhai, and Vietnam have all shown initial results, and the expected capacity this year will reach 50,000 mt. China Northern Rare Earth stated during an institutional survey on May 21 that the company holds an optimistic view on the future price trend of rare earths . Currently, the upstream supply of rare earths is showing a steady growth trend, thanks to the country's scientific planning and rational development of rare earth resources, as well as the continuous progress in rare earth mining technology. Although the release speed of downstream consumer demand has not met expectations to a certain extent, the fluctuation range of mainstream product prices has significantly narrowed, indicating that the supply-demand relationship is gradually moving towards balance. This balance not only helps stabilize market expectations but also provides a solid foundation for the healthy development of the rare earth industry. On the demand side, the continuous growth in demand for rare earth products in fields such as new energy and high-tech has become a strong driving force for the development of the rare earth industry. During an institutional survey on June 12, Instyle stated that the company's products are mainly delivered through domestic bonded zones and domestic sales channels, and do not involve direct exports to the United States. Export control measures affect businesses involving products containing medium-heavy rare earths dysprosium and terbium, and the company has been handling relevant procedures in compliance with national laws, regulations, and customer order requirements . The company's core competitive advantages mainly lie in its advantages in magnetic circuit design and production manufacturing processes, its advantages in high-quality customer resources, and its advantages in having the origin of rare earths and lower electricity costs in Baotou. GEM stated at the earnings presentation on May 6 that the company has currently conducted technological reserves in the recycling of permanent magnetic materials in the dismantling and recycling field and has reserved the wet process for recycling and synthesizing rare earth oxides. The company has been continuously monitoring the market for rare earth permanent magnets and actively developing the recycling and utilization of rare and scattered metals such as germanium, gallium, indium, and rare earths, as well as expanding the recycling of energy metals like nickel, cobalt, and lithium. Jintian Stock disclosed the record of investor relations activities on May 23, stating that the company has been engaged in the magnetic materials business since 2001. Currently, the company has two magnetic material production sites in Ningbo and Baotou . The first phase of the Baotou site has been put into operation, and the company's annual capacity for rare earth permanent magnets has increased by 4,000 mt on the original basis. The company's rare earth permanent magnet products are widely used in multiple high-end fields, including NEVs, wind power generation, high-efficiency energy-saving motors, robots, consumer electronics, and medical devices.