[SMM Magnesium Market Analysis: Coal Cost Transmission Imbalance, Weakened Integrated Cost Advantages, and Continued Convergence of Regional Magnesium Ingot Cost Gaps] Recently, energy cost fluctuations in the magnesium industry far exceeded ferrosilicon price fluctuations. The influence of coal prices on magnesium prices increased significantly, and the cost structure of magnesium ingots underwent a notable shift.

The ferrosilicon and other items project (BG2026050107) has met the procurement conditions, and suppliers are now openly invited to participate in the negotiation procurement activity. Project Introduction 1.1 Project Name: Ferrosilicon and Other Items Project (BG2026050107) 1.2 Client: Raw Material Procurement Department, Procurement Center, Bensteel Sheets & Plates Co., Ltd. 1.3 Agency: Ansteel Tendering Co., Ltd. Benxi Branch 1.4 Project Funding: Self-funded 1.5 Project Overview: See the public attachments of the entrustment application 1.6 Platform and Website: Ansteel Smart Tender and Bid Platform (http://bid.ansteel.cn/TPBidder) Procurement Scope and Related Requirements 2.1 Procurement Scope: See the public attachments of the entrustment application 2.2 Delivery Date: July 31, 2026 2.3 Delivery Location: Benxi, etc. 2.4 Product Quality Standards or Key Technical Performance Indicators: See attachments Supplier Qualification Requirements 3.1 Supplier Qualification Requirements: See attachments Click to View Tender Details:

The Low-Carbon Ferrosilicon B project is ready for procurement, and suppliers are hereby openly invited to participate in the negotiation procurement activity. Project Introduction 1.1 Project Name: Low-Carbon Ferrosilicon B Project 1.2 Client: Raw Material Procurement Management, Raw and Fuel Material Procurement Center, Ansteel Co., Ltd. 1.3 Agency: Ansteel Tendering Co., Ltd. 1.4 Project Funding: Self-funded 1.5 Project Overview: See the public attachment of the entrustment application attachment for details 1.6 Platform and Website: Ansteel Smart Tender and Bid Platform (http://bid.ansteel.cn/TPBidder) Procurement Scope and Related Requirements 2.1 Procurement Scope: See the public attachment of the entrustment application attachment for details 2.2 Delivery Date: July 10, 2026 2.3 Delivery Location: Anshan City, Liaoning Province 2.4 Product Quality Standards or Key Technical Performance Indicators: None Supplier Qualification Requirements 3.1 Supplier Qualification Requirements: See attachment Click to view tender details:

The Low-Carbon Ferrosilicon C and Other Projects have met the procurement conditions, and suppliers are now publicly invited to participate in the negotiation procurement activity. Project Overview 1.1 Project Name: Low-Carbon Ferrosilicon C and Other Projects 1.2 Client: Raw Material Procurement Management, Raw and Fuel Material Procurement Center, Ansteel Co., Ltd. 1.3 Agency: Ansteel Tendering Co., Ltd. 1.4 Project Funding: Self-funded 1.5 Project Description: Please refer to the public attachments of the entrustment application 1.6 Platform and Website: Ansteel Smart Tender and Bid Platform (http://bid.ansteel.cn/TPBidder) Procurement Scope and Related Requirements 2.1 Procurement Scope: Please refer to the public attachments of the entrustment application 2.2 Delivery Date: July 10, 2026 2.3 Delivery Location: Anshan City, Liaoning Province 2.4 Product Quality Standards or Key Technical Performance Indicators: None Supplier Qualification Requirements 3.1 Supplier Qualification Requirements: See attachments Click to View Tender Details:

SMM May 25 News: Driven by rising market expectations for coal policy changes and concerns over tightening supply, bullish sentiment was released in a concentrated manner. Coking coal and coke futures hit the daily limit up on May 25 and remained locked at the limit. As of the close of the daytime session on May 25, the most-traded coking coal and coke futures contracts were locked at the daily limit with gains of 7.97% and 7.99%, respectively. The limit-up moves in coking coal and coke lifted the broader ferrous metals and related raw material sectors, with the ferrosilicon continuous most-traded contract rising 3.97% on May 25. Supported by the strengthening prices of raw materials such as coal and ferrosilicon, magnesium ingot prices moved higher, with magnesium ingots gaining over 2% in a single day on May 25. Bullish sentiment in the market had already begun to emerge last Sunday. Rising Coal and Ferrosilicon Prices Highlight Cost Support for Magnesium Ingots Spot market: Primary magnesium smelting is highly dependent on raw materials such as coal and ferrosilicon, with a clear cost transmission chain. As coal prices continued to rise, cost pressure on upstream magnesium enterprises increased significantly. Some upstream enterprises reported that they had already raised their quotations to 16,700 yuan/mt last Sunday. On May 25, although morning inquiries were lukewarm, supported by the rigid cost underpinning from rising raw material prices, most producers still held firm at 16,700 yuan/mt, with a strong willingness to hold prices firm. By region, magnesium ingot prices across China were generally raised by 350 yuan/mt. Mainstream quotations for magnesium ingots (9990) in Fugu, Shenmu, and Inner Mongolia were 16,700 yuan/mt, while quotations in Wenxi were 16,900 yuan/mt. Currently, relevant policies for the coal mine market have not yet been officially implemented. The industry as a whole maintains a cautious wait-and-see stance, and the pace and impact of subsequent policy implementation deserve close attention. Outlook Looking at this round of magnesium price increases, the core driving factor was the rise in raw material costs such as coal and ferrosilicon, representing a typical cost-push price increase rather than one driven by improvements in supply-demand fundamentals. From the current magnesium market fundamentals perspective, the overall oversupply pattern has not shown significant improvement. Although downstream demand demonstrated a certain degree of resilience, end-use demand showed no notable incremental growth, while supply within the market also showed no obvious contraction, leaving fundamentals lacking strong upward support. Overall, the short-term raw material price increases effectively underpinned magnesium prices, supporting magnesium prices to hold up well. However, constrained by the weak supply-demand pattern, the rebound room for magnesium prices in this round is relatively limited. Going forward, it is essential to continue closely monitoring price fluctuations in coal and ferrosilicon raw materials and the implementation of coal mine-related policies, while paying close attention to the release of downstream demand and changes in market supply, in order to assess the pace and upside room for subsequent magnesium price movements. Recommended Reading:

1 Procurement Conditions The purchaser of this procurement project, Ferrosilicon and Other Items (BG2026040318)/Low-Aluminum Ferrosilicon (BGBCGFHGXHD260506285829), is the Raw Material Procurement Department of the Procurement Center of Bensteel Sheets & Plates Co., Ltd. The project funds are self-raised. This project has met the procurement conditions, and an open inquiry and comparison is now being conducted. 2 Project Overview and Procurement Scope 2.1 Project Name: Ferrosilicon and Other Items (BG2026040318)/Low-Aluminum Ferrosilicon 2.2 Conversion to other procurement methods upon procurement failure: conversion to direct procurement, conversion to negotiated procurement 2.3 The procurement content, scope, and scale of this project are detailed in the attachment "Material List Attachment.pdf". 3 Bidder Qualification Requirements 3.1 Joint venture bidding is not permitted for this procurement. 3.2 This procurement requires bidders to possess the following qualification requirements: (1) Business license for trading enterprises (2) Business license for manufacturing enterprises 3.3 This procurement requires bidders to meet the following registered capital requirements: Registered capital for manufacturing enterprises: 10,000,000.0 yuan and above Registered capital for trading enterprises: 10,000,000.0 yuan and above 3.4 This procurement requires bidders to possess the following performance requirements: See attachment 3.5 This procurement requires bidders to possess the following capability requirements, financial requirements, and other requirements: Financial requirements: See attachment Capability requirements: See attachment Other requirements: Performance bond - See attachment 3.6 For projects that are required by law to undergo tender and bid, bids from persons subject to enforcement for breach of trust shall be invalid in this procurement. 4 Obtaining Procurement Documents 4.1 All parties interested in bidding shall log in to the Ansteel Smart Tender and Bid Platform at http://bid.ansteel.cn to download the electronic procurement documents from 08:00 on May 7, 2026 to 08:00 on May 15, 2026 (Beijing time, the same hereinafter). Click to view tender details:

[SMM Flash News] Gansu Baomei Xitie Alloy ignited a 40,500 kVA ferrosilicon furnace with a daily production capacity of approximately 110 tons, supporting the 300,000-ton magnesium alloy project of Baowu Magnesium Industry in Gansu, backing the long-term plan of 500,000 tons, ensuring self-sufficiency in raw materials for magnesium smelting, and reducing costs.

Ahead of the Labour Day holiday, the magnesium market saw a recovery in trading activity during the first half of this week, with spot prices holding up well and magnesium prices rising for two consecutive days. Current market support mainly came from the continued release of pre-holiday rigid stocking demand from end-users, with downstream procurement pace following in an orderly manner, effectively revitalizing trading activity in the market. On the other hand, rising coal and ferrosilicon futures prices on the raw material side also provided certain cost support for the magnesium market. Supported by multiple positive factors, suppliers generally maintained firm pricing sentiment, low-priced spot cargo in the market gradually diminished, and the overall magnesium market showed a generally stable with slight rise trend. Magnesium prices rose for two consecutive trading days Spot price side: magnesium ingots and magnesium alloys continued the upward trend from the 28th. Specifically, the SMM 99.90% magnesium ingot (Fugu, Shenmu) price on April 29 was 16,600-16,700 yuan/mt, with an average price of 16,650 yuan/mt, up 0.3% from the previous trading day. The core driver behind this two-day consecutive rise in magnesium prices was pre-holiday restocking demand from downstream end-users. As the Labour Day holiday approached, considering the holiday factor, downstream deep-processing and manufacturing enterprises initiated stockpiling operations in advance, and market procurement enthusiasm improved compared to the previously sluggish conditions. Most downstream enterprises abandoned their earlier wait-and-see sentiment and entered the market to purchase based on their rigid production needs, proactively locking in spot inventory to hedge against post-holiday supply fluctuation risks. The sustained concentrated restocking demand rapidly consumed previously accumulated low-priced inventory in the market, with low-priced resources basically digested and cleared, the market price floor continued to rise, directly driving magnesium prices to raise consecutively. Overall trading activity and transaction sentiment in the market improved during the first half of this week. Outlook Based on the current supply and demand performance in the market, the concentrated release of pre-holiday restocking demand effectively reversed the previously weak market sentiment, boosting confidence among traders and producers to a certain extent. However, from the market pace perspective, after a round of concentrated restocking, downstream stocking demand had been gradually released, and the pre-holiday restocking trend was basically coming to an end. As the Labour Day holiday approached, market procurement activities gradually ceased, and concentrated trading momentum was expected to pull back. Based on current market conditions, domestic magnesium prices were expected to remain generally stable in the short term. In the long term, the domestic magnesium market needs to focus on two aspects going forward: first, the maintenance arrangements and production pace changes of domestic magnesium ingot producers — if mainstream smelters arrange concentrated equipment maintenance and production cuts later, this will directly compress overall market supply, alter the current supply-demand balance, and drive price fluctuations; second, the recovery of demand in markets outside China — currently, ex-China magnesium product demand remained generally stable but weak, and whether export orders can steadily increase and whether export markets can recover will directly affect domestic magnesium ingot exports, becoming an important factor influencing medium and long-term magnesium price trends.

On April 27, the Zhengzhou Commodity Exchange (ZCE) issued a notice on the adjustment of trading margin standards and price change limits for certain futures contracts during the 2026 Labor Day holiday period. The original text is as follows: Notice on the Adjustment of Trading Margin Standards and Price Change Limits for Certain Futures Contracts During the 2026 Labor Day Holiday Period To all member units: In accordance with Article 8 of the Zhengzhou Commodity Exchange Measures for Risk Control and Management of Futures Trading, after deliberation, the following adjustments will be made to the trading margin standards and price change limits for certain futures contracts during the 2026 Labor Day holiday period: I. Effective from the settlement on April 29, 2026, the trading margin standard for flat glass and soda ash futures contracts will be 12%, with a price change limit of 10%, except that the flat glass futures 2605 contract will have a trading margin standard of 13% and a price change limit of 11%; the trading margin standard for methanol, PTA, paraxylene, caustic soda, propylene, staple fiber, bottle-grade PET, urea, ferrosilicon, silicon-manganese, and red dates futures contracts will be 10%, with a price change limit of 9%, except that the methanol futures 2605 contract will have a trading margin standard of 16% and a price change limit of 14%, the methanol futures 2606, 2607, 2608, and 2609 contracts will have a trading margin standard of 13% and a price change limit of 11%, the PTA futures 2605 contract will have a trading margin standard of 15% and a price change limit of 13%, the PTA futures 2606, 2607, 2608, and 2609 contracts will have a trading margin standard of 13% and a price change limit of 11%, the paraxylene futures 2605 contract will have a trading margin standard of 15% and a price change limit of 13%, the paraxylene futures 2606, 2607, 2608, and 2609 contracts will have a trading margin standard of 13% and a price change limit of 11%, the caustic soda futures 2605 contract will have a trading margin standard of 15% and a price change limit of 13%, the caustic soda futures 2606 and 2607 contracts will have a trading margin standard of 12% and a price change limit of 10%, the propylene futures 2605 contract will have a trading margin standard of 15% and a price change limit of 13%, the propylene futures 2606, 2607, 2608, and 2609 contracts will have a trading margin standard of 13% and a price change limit of 11%, the staple fiber futures 2605 contract will have a trading margin standard of 14% and a price change limit of 12%, the staple fiber futures 2606, 2607, 2608, and 2609 contracts will have a trading margin standard of 13% and a price change limit of 11%, the bottle-grade PET futures 2605 contract will have a trading margin standard of 14% and a price change limit of 12%, the bottle-grade PET futures 2606, 2607, 2608, and 2609 contracts will have a trading margin standard of 13% and a price change limit of 11%; the trading margin standard for rapeseed meal, rapeseed oil, peanut, white sugar, and cotton futures contracts will be 9%, with a price change limit of 8%; the trading margin standard for cotton yarn futures contracts will be 7%, with a price change limit of 6%. II. After the resumption of trading on May 6, 2026, from the settlement of the first trading day on which no limit-up or limit-down unilateral market occurs in the contract with the largest open interest of each product, the trading margin requirement for apple futures contracts shall be 9%, with a price limit of 8%, except that the price limit for the Apple Futures 2605 contract shall be 13%; the trading margin requirement for jujube futures contracts shall be 8%, with a price limit of 7%; the trading margin requirement for propylene futures 2607, 2608, and 2609 contracts shall be 11%, with a price limit of 9%; the trading margin requirements and price limits for futures contracts of other products shall be restored to pre-adjustment levels. Where the trading margin requirements and price limits executed in accordance with relevant rules are higher than the above standards, the relevant rules shall prevail. All member firms are requested to strengthen capital and position risk management, and to remind investors to enhance risk awareness and strengthen risk prevention. This notice is hereby given. Appendix: Adjustments to Trading Margin Requirements and Price Limits During the 2026 Labor Day Holiday Zhengzhou Commodity Exchange Apr 2026

According to the latest data released by the General Administration of Customs, SMM statistics showed that China's SiMn and FeMn exports in March 2026 totaled 6,161.003 mt, up 213.48% MoM and up 579.32% YoY. Total SiMn and FeMn exports from China from January to March reached 10,665.897 mt, up 116.0% YoY. In March, China's SiMn market first saw a cost rise, which laid the foundation for firm export offers and increased export willingness among enterprises.