According to the American Iron and Steel Institute (AISI), US domestic raw steel production reached 1.872 million net tons for the week ending May 30, 2026, representing an 8.8% year-on-year increase and a 0.1% week-on-week rise. The capability utilization rate stood at 81.1%, up from 76.6% in the same period last year and slightly above the 81.0% recorded in the previous week. Adjusted year-to-date production through May 30, 2026, totaled 38.925 million net tons with an average capability utilization rate of 78.6%, marking a 6.8% increase from the 36.461 million net tons produced during the same period in 2025. Geographically, the Southern district led production with 848,000 net tons, followed by the Great Lakes (495,000 net tons) and the Midwest (321,000 net tons). The market impact indicates that the sustained growth in US steel output and robust utilization rates reflect a resilient domestic manufacturing sector; supported by localized demand and protective trade measures, North American mills continue to maintain steady supply levels despite broader global market stagnation.

Chinese Taiwan's upstream stainless steel mills raised June domestic prices, marking a seventh consecutive monthly increase. Benchmark 304 hot-rolled and cold-rolled coils rose NT$2000/ton, bringing the cumulative seven-month gain to NT$25,500/ton. The adjustment was driven by rising raw material costs and upcoming summer electricity rates, with higher molybdenum prices and a firmer May LME nickel average offsetting slight declines in Chinese ferrochrome and ferronickel. Asian cold-rolled coil export prices also rose USD120/ton over the past month, providing additional support. Despite cautious, need-based downstream procurement, markets expect stable to slightly higher near-term prices amid firm global markets and supply reductions in China.

Over the past half-century of industrialisation, the global seaborne iron ore market consolidated around a duopoly dominated by Australia's Pilbara region and Brazil's Carajás and Iron Quadrangle districts. However, driven by macroeconomic cycle evolution, a structural shift in China's growth engine, and the steel industry's irreversible push toward low-carbon and green transformation, this traditional supply map is undergoing an unprecedented reshaping. On 26 November 2025, the first commercial vessel loaded with Simandou iron ore departed from the Port of Mabarya, marking the official commissioning of Guinea's Simandou Iron Ore Project — the world's largest undeveloped high-grade greenfield iron ore deposit by reserve. This milestone signals that the African continent, long relegated to secondary status, is progressively emerging as a significant new force in the global ferrous metals market. Africa's iron ore resources are widely regarded as the third-largest iron ore supply region globally, after Brazil's Carajás and Australia's Pilbara. With an estimated 13.8% share of global iron ore resources, and representing the most significant supply-side growth driver over the next five years, shifts in African iron ore dynamics will be a key determinant of international iron ore pricing over the long term. I. Global Iron Ore Market Background According to SMM research data, global iron ore production in 2025 is estimated at approximately 2.472 billion tonnes (bt). Africa contributes roughly 95 million tonnes (Mt), representing close to 4% of global output. As major mining projects progressively come on stream, Africa's iron ore production capacity is forecast to double by 2030, reaching approximately 259 Mt. Assuming no production curtailments elsewhere, Africa's global market share could rise to nearly 10%, while the overall global iron ore supply surplus is projected to widen to approximately 220 Mt. Although the international iron ore market has already entered a prolonged loose supply cycle, the substantive supply shock from African iron ore is expected to materialise gradually over the next five years. In the near term, Africa's estimated incremental shipment of approximately 15 Mt in 2026 — bolstered by its superior high-grade characteristics — is expected to be absorbed relatively smoothly by steelmakers seeking low-carbon blending feedstocks, resulting in a relatively moderate impact on absolute benchmark pricing. The critical inflection point is projected to fall in 2028–2029. As rail and port infrastructure currently under construction in West Africa is fully commissioned, a surge in high-grade iron ore output will exert heavy downward pressure on the right-hand side of the global iron ore cost curve. This will not only systematically compress the iron ore price floor but will trigger intense structural displacement — squeezing the operating margin of low-grade, high-cost producers. The current price downcycle is expected to persist through 2028. When international ore prices breach the USD 90/tonne marginal cost support level, higher-cost non-mainstream small and mid-size mines will be forced into curtailment and exit. The resulting supply shakeout will reshape the global iron ore supply structure into a multi-oligopoly dominated by ultra-large, low-cost operations (including the new African mines), complemented by quality mid-tier producers. II. Africa's Current Market Landscape: South Africa as Dominant Producer, West Africa Expanding Aggressively Building on the global context, this section focuses on Africa's overall iron ore landscape. As the primary driver of supply growth over the next five years, Africa's iron ore production is concentrated in West Africa and South Africa, currently dominated by three key countries. South Africa South Africa is the continent's largest producer, with 2025 output reaching approximately 67 Mt and export shipments maintaining an overwhelming 65% share of total African iron ore exports. However, South Africa's iron ore sector faces structural constraints limiting its organic growth headroom. As other emerging African resource nations commission significant new projects, South Africa's share of total African export volumes is projected to face sustained compression. Mauritania Mauritania is Africa's second-largest iron ore producer, with 2025 output of 15 Mt and export volumes of approximately 12 Mt, representing approximately 12% of the African market. Strategically situated adjacent to the Atlantic Ocean with high-grade iron ore deposits deep within the Sahara Desert, Mauritania possesses highly advantageous geographic and mineralogical characteristics. Its proximity to European and Middle Eastern markets — both in urgent need of green industrial raw materials — provides ideal conditions for the country to become a hub for global green metallurgy capacity relocation. Mauritania is expected to emerge as a highly promising iron ore supply nation going forward. Sierra Leone Sierra Leone is another important regional supply pole, with projected 2025 output also reaching approximately 12 Mt, holding a stable share of approximately 12% in the African export market. Chinese-invested iron ore mines within the country are actively scaling up their operations. Trade Flow Overview Based on full-year 2024 trade data, the proportion of African iron ore shipped to China is relatively low compared to traditional mainstream ore origins, at approximately 60%. The broader Pan-Asian market — encompassing China, Japan, and South Korea — absorbs approximately 70% of total African iron ore shipments. Western European countries, led by the Netherlands and Germany, constitute Africa's core secondary destination, accounting for close to 14% of trade flows. The remaining marginal trade flows are broadly diversified, extending to emerging steelmaking capacity clusters in the Middle East, including Bahrain, Oman, and Saudi Arabia. Key Corporate Players At the corporate level, South Africa's Kumba Iron Ore and Assmang rank as Africa's largest and second-largest iron ore producers, with annual output of approximately 37 Mt and 17 Mt respectively. Kumba Iron Ore: Kumba's mining operations — including the Sishen mine — are globally recognised for producing high-grade fines (Fe >62%) and metallurgically superior premium lump ore (Fe 65.2%). Under the prevailing trend of blast furnace (BF) emission reduction, this type of direct-charge lump ore — which reduces sintering-related carbon emissions — commands strong market demand and a substantial price premium. Assmang: Assmang similarly holds high-quality iron ore assets, operated as a 50:50 joint venture between African Rainbow Minerals (ARM) and Assore. Its Assmang Fines and Assmang Lump products (Fe 64–65%) are also direct-charge, high-quality materials. However, the company's key bottleneck lies not at the pithead but on the rail. Heavy dependence on Transnet Freight Rail (TFR) for haulage means logistics constraints frequently cap its achievable shipment volumes. SNIM (Société Nationale Industrielle et Minière): Mauritania's state-owned mining company is Africa's third-largest iron ore producer after the two South African majors. Unlike mainstream Australian and Brazilian ores, SNIM products occupy a distinctive niche in terms of physicochemical specifications and market segment. Its most widely traded product, TZFC fines, is characterised by extremely low alumina (Al2O3) and phosphorus (P) content. As an excellent blending ore, major steelmakers regularly blend SNIM fines with high-alumina Australian fines (such as certain Pilbara blend products) to significantly dilute the impurity ratio in the burden, thereby optimising blast furnace performance metrics. III. Africa's Market Transformation: Major Producers Facing Stagnation; Emerging Projects as Primary Growth Drivers Where does future growth lie? According to SMM observations, Africa is expected to undergo a significant structural transformation within the next five years. Multiple large-scale iron ore projects across the continent are currently under construction, with scheduled commissioning prior to 2030. Based on our modelling, African iron ore supply is forecast to grow substantially from the current approximately 95 Mt to 260 Mt over five years — a cumulative increase of 85%. The market structure is also expected to shift from South Africa-dominated Western-oriented exports to a Guinea-led export paradigm. Guinea — Simandou Iron Ore Project The primary growth driver will be Guinea's renowned Simandou iron ore project, jointly developed by multiple entities and representing the world's largest undeveloped high-grade open-pit hematite deposit. The project holds reserves in excess of 5 billion tonnes (bt) and a designed production capacity of 120 Mt per annum, making it the project with the greatest strategic potential to reshape the existing iron ore market structure. Since first ore shipments in late November 2025, cumulative exports from the principal export hub — the Port of Mabarya — reached approximately 1.6 Mt through Q1 2026. Blocks 1 & 2, developed under the Winning Consortium Simandou (WCS), have successfully commenced production, with 2026 capacity expected to reach nameplate and ramp-up to 60 Mt per annum projected over the next two to three years. Blocks 3 & 4, led by Simfer (a Rio Tinto and Baowu joint venture), are forecast to commission in Q1 2026, with estimated 2026 shipments of 5 Mt and a 30-month ramp-up timeline to reach 60 Mt per annum. In aggregate, Guinea is projected to achieve 120 Mt per annum before 2030, becoming the world's second-largest single iron ore project by capacity — second only to Vale's S11D project in Brazil (designed capacity of 200 Mt post-expansion, expected by 2030). Other African Countries — Key Development Projects Other nations — including Liberia, Gabon, Sierra Leone, and the Republic of Congo — all have iron ore projects under development. Projects scheduled for commissioning before 2030 account for a combined planned capacity of approximately 46 Mt. The largest single project is ArcelorMittal Liberia's (AML) Tokadeh Phase II, expected to commission in H2 2026 and reach a nameplate capacity of 20 Mt per annum by year-end, producing iron ore concentrate with an estimated grade exceeding Fe 66%. Given that AML's European steelmaking capacity cannot absorb such a large volume increment in the near term, the majority of Tokadeh's output is expected to enter the international seaborne market, exerting pricing pressure on the iron ore concentrate segment. South Africa — Structural Constraints on Production Growth South Africa's output is expected to remain broadly stable in the 63–67 Mt range, with mild downside risk. The primary underlying cause is the country's heavy dependence on the heavy-haul Sishen–Saldanha Bay rail corridor, operated by Transnet Freight Rail (TFR). In recent years, TFR has suffered a severe reduction in effective haulage capacity due to locomotive fleet shortages, frequent cable theft incidents, and chronic infrastructure underinvestment, materially constraining the rail transport of major bulk commodities including iron ore and coal. In its FY2025 annual results published in February 2026, Kumba Iron Ore — South Africa's dominant iron ore producer — reported total finished goods inventory of 7.5 Mt, up from 6.9 Mt at end-2024. With rail haulage capacity unable to match mine production, South Africa's major iron ore producers have been compelled to stockpile large volumes at mine sites. To avoid inventory saturation, miners have been forced to proactively revise production guidance downward. While producers are actively addressing haulage constraints, the deeply entrenched structural issues on the rail network are unlikely to be resolved in the short term. Mauritania — SNIM Long-Term Strategic Growth Blueprint Post-2030, attention turns to SNIM's strategic growth roadmap. Under its Horizon 1 programme, the company plans to raise annual production capacity to 45 Mt by 2031, through the implementation of lean manufacturing practices, equipment and technology upgrades, and the co-development of new mineral reserves. Of this total, 20 Mt will be produced under SNIM's wholly owned capacity, while the remaining 25 Mt will be realised through joint ventures with international capital partners. SNIM has further set a long-term target to expand annual capacity to 80 Mt by 2045 under its Horizon 3 plan. Democratic Republic of Congo (DRC) — MIFOR (Grand Est Iron Ore Project) On 26 March 2026, the DRC and China signed a Memorandum of Understanding designating the MIFOR project as a priority flagship initiative. The deposit is estimated to hold cumulative resources of 15–20 bt, with an average grade exceeding Fe 60% — a potential scale approximately 2.5 times that of Guinea's Simandou. Phase I capital expenditure is estimated at USD 28.9 billion, encompassing the construction of a heavy-haul railway and the utilisation of Congo River navigation, ultimately linking to a deep-water port at Banana on the Atlantic coast. Phase I design capacity stands at 50 Mt per annum, with a long-term target of scaling to 300 Mt per annum. These projects collectively underscore Africa's inevitable emergence as an indispensable iron ore supply source for the global steel industry. IV. Global Steel Industry Chain Transformation: Can Africa, as a Hub for High-Grade Ore, Enable DRI Production? High-Grade Ore as a DRI Feedstock Advantage Notably, the majority of Africa's current and planned iron ore projects produce ore at average total iron (Fe) grades predominantly above 65%, with extremely low impurity content. This scarce, high-grade ore is the ideal feedstock for the Direct Reduced Iron (DRI) process. As the DRI-Electric Arc Furnace (EAF) green steel route gains traction across Europe, the Americas, and China, demand for iron ore at Fe 65% and above will grow exponentially on the demand side. This will confer a substantial 'grade premium' on major projects, including South Africa's Kumba, Guinea's Simandou, and other future African producers. Over the longer term, iron ore pricing benchmarks are inexorably shifting away from the traditional Platts 62% Fe index, and African ore producers will gain bargaining leverage when renewing long-term supply agreements, thereby reshaping the global industry chain profit distribution structure. DRI Investment Pipeline in Africa In alignment with global carbon neutrality objectives, international investors — encouraged by local governments — are actively deploying capital into high value-added downstream processing facilities, including DRI plants and high-grade pellet facilities, aimed at leveraging Africa's abundant high-grade iron ore resources and vast renewable energy potential for DRI production. According to SMM observations, Africa is projected to add approximately 20 Mt of DRI capacity by 2030. The largest single project is a Libyan integrated DRI complex, jointly developed by Turkish steelmaker Tosyali and the Libyan National Steel Company, with a total design capacity of 8.1 Mt. China's Decarbonisation Push and the Global Green Steel Transition As China advances its dual carbon targets — carbon peaking by 2030 and carbon neutrality by 2060 — the domestic steelmaking sector is undergoing significant adjustment. The traditional carbon-intensive Blast Furnace–Basic Oxygen Furnace (BF-BOF) long route faces increasingly stringent capacity replacement policies and environmental regulations. Simultaneously, the global trade system is accelerating the imposition of carbon costs, most notably through the EU Carbon Border Adjustment Mechanism (CBAM), compelling global steel supply chains to accelerate the transition from the source toward a low-carbon, ultimately zero-carbon 'green steel' era. In the context of this irreversible transition, the DRI-EAF short-route process has become the most commercially viable decarbonisation pathway. To meet surging global demand for green steel, market projections indicate that global DRI designed production capacity will need to expand by hundreds of millions of tonnes during the 2030s. This scale of expansion will profoundly alter the global steel supply structure: the share of traditional hot metal (pig iron) production will progressively decline, while low-carbon DRI supply will directly determine the competitiveness of major economies in the global green steel market. In particular, 'hydrogen metallurgy' — using green hydrogen to replace natural gas and coking coal as the reductant in iron ore reduction — is widely recognised by the industry as the core technology for achieving ultimate zero-carbon steelmaking. Africa as the Future 'Green Iron' Production Hub Represented by world-class high-grade iron ore projects such as Guinea's Simandou, the progressive commissioning of these mega-mines is expected to inject over 100 Mt of high-grade iron ore per year into the global market, substantially alleviating the global scarcity of DRI-grade ore. More critically, North Africa and West Africa possess world-leading solar and wind energy potential, enabling large-scale, low-cost green hydrogen production in situ. This perfect combination of 'high-grade ore + low-cost green hydrogen' is increasingly inclinng multinational capital and steel majors toward establishing DRI production lines directly on African soil — reducing iron ore to low-carbon Hot Briquetted Iron (HBI) on-site for ocean transport to EAF facilities in Asia and Europe. Africa is thus formally transitioning from its historical role as a raw material exporter to become an indispensable link in the green iron production chain of the future.

[SMM Aluminum Express News] Aughinish Alumina, Ireland’s only alumina producer and owned by Rusal, is facing renewed scrutiny after data showed 83% of Ireland’s alumina exports in Q1 2026 were shipped to Russia, compared with just 0.6% to EU countries. The figures challenge earlier claims that most production served European and global markets and have intensified debate over whether the refinery should be included in the EU’s next Russia sanctions package.

The global secondary copper industry is at a critical stage characterized by tightening resources, green transformation, and intensifying global competition. As environmental protection policies continue to tighten and the energy crisis deepens, secondary copper, with its significant environmental and economic advantages, plays an increasingly prominent role in alleviating tight supply of primary copper and promoting low-carbon development. Currently, the global copper industry chain faces multiple pressures including fragile supply, demand transformation, and low-carbon upgrading. Major economies have successively included copper in their critical minerals lists, and international competition over secondary copper resources is becoming increasingly fierce. Optimizing the industry chain structure, improving recycling efficiency, and harmonizing global standards have become urgent priorities for the industry. To help the industry gain a comprehensive understanding of global policy trends and market landscapes, SMM and Uchida Corporation have joined hands to produce the , focusing on industry development directions and conveying market insights, aiming to provide practitioners with an authoritative and professional industry distribution guide. (Click the link to receive for free:) Focusing on Resource Recycling, Connecting Global Markets Basic Information · Company Name: Uchida Corporation · Headquarters: Itami City, Hyogo Prefecture, Japan · Established: 2013 Main Business Recovery, sorting, processing, and sales of stainless steel, copper, aluminum, and other non-ferrous and special metals, as well as international procurement and export trade. Core Business Activities · Dismantling project contracting · Participation in large-scale bidding projects · Recovery of industrial metal scrap generated by recycling and dismantling companies · Bulk metal exports to clients outside China · Global metal raw material procurement and trade Production and Processing Capacity · Factory Facilities: 2 metal recycling plants, 1 copper wire nodules processing plant · Monthly Processing Capacity: Copper: approximately 300 mt Stainless steel: approximately 500 mt Aluminum: approximately 200 mt Total: over 1,000 mt Qualifications and Licenses · ISO9001 (Quality) · ISO45001 (Occupational Health and Safety) · ISO14001 (Environment) · Hyogo Prefecture Specified Construction Business License (Special-7) No. 303544 · Hyogo Prefectural Public Safety Commission License: Metal Scrap Dealer · Hyogo Prefectural Public Safety Commission License: Machinery and Tools Dealer · Industrial Waste Collection and Transportation License International Trade and Export Advantages · Leveraging high-grade recycled metal resources from Japan, maintaining long-term stable exports to Asian and European and US markets · Establishing an international procurement network to achieve multi-channel supply of recycled metal raw materials · Strictly implementing quality sorting and processing standards to meet ex-China clients' requirements for composition and specifications · Providing one-stop trade services from sourcing and processing to logistics Business Philosophy With efficiency and environmental protection at its core, leveraging a comprehensive qualification system, promoting cross-border resource recycling, and creating long-term sustainable value for clients. Uchida Corporation SMM Joint Production Contact Liu Mingkang 156 5309 0867 liumingkang@smm.cn

SMM May 26 News: Metals Market: Overnight, domestic base metals generally rose. SHFE copper was up 0.39%. SHFE aluminum was down 0.29%, and SHFE lead was down 0.27%. SHFE zinc was up 0.62%. SHFE tin was up 0.52%. SHFE nickel was up 0.42%. In addition, the most-traded alumina futures contract was up 4.82%, while the most-traded casting aluminum continuous contract was down 0.26%. Overnight, ferrous metals showed mixed performance. Iron ore was down 0.94%, stainless steel was up 0.13%, rebar was down 0.75%, and hot-rolled coil was down 0.73%. Coking coal and coke: the most-traded coking coal futures contract was up 9.05%, and the most-traded coke futures contract was up 5.04%. Overseas metals: The London Metal Exchange (LME) was closed on May 25 for the UK bank holiday and will resume trading on May 26. Overnight Precious Metals : COMEX gold was up 1.11%, and COMEX silver was up 2.89%. Overnight, SHFE gold continuous contract was up 0.71%, and SHFE silver continuous contract was up 1.62%. UBS Group analyst Staunovo Giovanni noted: "Currently, financial asset movements are heavily influenced by oil prices, and gold is naturally no exception." Staunovo further explained: "Falling oil prices are bullish for gold, as the market expects lower oil prices to impact the US Fed's monetary policy." He added that this trend is expected to continue in the near term. (Jin10 Data) As of 7:17 AM on May 26, overnight closing prices: Macro Front China: [National Energy Administration: As of End of April, China's Cumulative Installed Power Generation Capacity Reached 3.99 Billion kW, Up 14.2% YoY] The National Energy Administration released national electricity statistics for January-April. As of the end of April, China's cumulative installed power generation capacity reached 3.99 billion kW, up 14.2% YoY. Among them, solar power installed capacity was 1.25 billion kW, up 26.2% YoY; wind power installed capacity was 660 million kW, up 22.0% YoY. From January to April, the cumulative average utilization hours of national power generation equipment were 925 hours, down 84 hours from the same period last year. US Dollar: Overnight, the US dollar index fell 0.34% to 98.98. The US dollar and oil prices pulled back as the market hoped for a peace deal to end the Iran conflict, easing concerns about rising inflation and interest rates "staying high for longer." Despite both the US and Iran downplaying the likelihood of a near-term deal, market sentiment remained optimistic. Additionally, according to the CME "FedWatch": the probability of the US Fed keeping rates unchanged through June was 99.9%, with a 0.1% probability of a cumulative 25 basis point interest rate cut. The probability of the US Fed keeping rates unchanged through July was 90.3%, with a 9.6% probability of a cumulative 25 basis point rate hike and a 0.1% probability of a cumulative 25 basis point interest rate cut. (Jin10 Data) BlackRock stated that under new US Fed Chair Warsh's leadership, the US Fed may have sufficient reason to support an interest rate cut rather than a hike. Navin Saigal, BlackRock's Asia-Pacific head of global fixed income, responded to a question about the probability of a rate hike under Warsh's tenure: "If I had to choose between a hike and a cut, I think there are actually ample factors to support a cut." "Looking ahead, the labour market is expected to face some pressure, which may signal that the US Fed will either hold steady or cut interest rates." Saigal's remarks contrasted with the prevailing expectations of bond investors, who bet that Warsh would prioritize safeguarding the US Fed's credibility in fighting inflation over accommodating US President Trump's calls for lower interest rates. Current pricing shows the market is nearly certain the US Fed will raise interest rates before December. On the macro front: Data to be released today include the UK May CBI retail sales balance, US March FHFA house price index MoM, US March S&P/CS 20-city non-seasonally adjusted home price index YoY, US May Conference Board consumer confidence index, and US May Dallas Fed business activity index. In addition, attention should be paid to: Xiaomi Group's earnings call. Crude Oil: Overnight, both oil futures fell sharply, with WTI crude down 6.52% and Brent crude down 6.56%. Rising expectations of US-Iran peace talks drove crude oil prices sharply lower. According to Xinhua News Agency, Trump posted on social media on Monday the 25th that negotiations with Iran were progressing well, emphasizing that either "a great and meaningful deal" would be reached with Iran, or "there would be no deal." According to CCTV News, an Iranian delegation appeared in Qatar on Monday the 25th, including senior members of Tehran's negotiating team, which was viewed by the US side as a positive signal. Bloomberg's Garfield Reynolds noted that US crude oil inventories were declining at an unprecedented pace, highlighting the importance of a US-Iran deal this weekend for global markets. However, both the US and Iran remained cautious about the prospects for a deal. An Iranian Foreign Ministry spokesperson said that many issues in the potential bilateral memorandum had reached preliminary conclusions, but this did not mean Tehran was close to signing an agreement. (Wallstreetcn)

Recently, Hyperstrong, a leading provider of energy storage system solutions and technical services, and SMA Solar Technology AG, a globally renowned provider of photovoltaic and energy storage solutions, jointly announced that they have formally signed a global strategic cooperation agreement. According to the agreement, building on their existing strong cooperation, the two parties will further promote collaboration on large-scale energy storage projects in global markets.

SMM May 15 update: Cobalt product prices remained generally stable this week, with only refined cobalt and cobalt chloride prices edging down slightly, though overall fluctuations were relatively small. Among them, cobalt chloride market activity declined further, with scarce inquiries becoming a common feedback... SMM compiled the spot price fluctuations of cobalt products this week, as follows: : According to SMM spot quotes, spot refined cobalt prices edged down 500 yuan/mt this week before stabilizing temporarily. As of May 15, spot refined cobalt was quoted at 421,500-428,500 yuan/mt, with an average price of 425,000 yuan/mt, down 0.12% from 425,500 yuan/mt on May 8. Fundamentals side, supply side, according to SMM, smelter quotes remained stable, while traders lowered the spot-futures price spread of mainstream brands to a premium of 7,000-8,000 yuan/mt to recoup funds. Demand side, downstream alloy and magnetic material enterprises continued purchasing as needed, strictly controlling raw material inventory levels. Price spread structure side, the metal price spread between refined cobalt and lower-priced cobalt salts continued to stay at a relatively low level, limiting enterprises' enthusiasm for producing refined cobalt through the re-dissolution process. In the short term, SMM expects refined cobalt prices to continue consolidating, with future upside still dependent on effective price boosts from cobalt salts. Cobalt salts ( and): : According to SMM spot quotes, spot cobalt sulphate prices continued to hold stable this week. As of May 15, spot cobalt sulphate remained steady at 93,200-95,800 yuan/mt, with an average price of 94,500 yuan/mt. According to SMM, on the cobalt sulphate supply side this week, mainstream brand quote centers remained in the 93,000-96,000 yuan/mt range. Boosted by the rebound in refined cobalt prices, some smelters and traders that had previously offered discounts to facilitate shipments raised their quotes slightly, and low-priced cargoes below 90,000 yuan/mt decreased significantly. Demand side, downstream enterprises still focused on digesting earlier inventory, with low enthusiasm for purchasing, and only a few with rigid demand restocked small volumes at lower prices. Notably, some Co3O4 enterprises increased their inquiry frequency recently, with purchasing sentiment showing signs of recovery. Production schedule side, both ternary and LCO enterprises saw restorative MoM growth in May production schedules. It is expected that as downstream restocking demand gradually releases going forward, cobalt sulphate prices are likely to see a phased rebound and recovery. : According to SMM spot quotes, cobalt chloride spot prices edged down by 100 yuan/mt at the beginning of the week and then stabilized. As of May 15, cobalt chloride spot prices stood at 114,000–117,000 yuan/mt, with an average price of 115,500 yuan/mt, down 0.09% from May 8. Spot market: According to SMM, cobalt chloride market activity further declined this week, with scarce inquiries being a common feedback. Supply side, some top-tier players notably slowed down their shipment pace recently, with liquidity pressure emerging and quotes slightly softening; meanwhile, small and medium-sized producers had already proactively lowered prices earlier due to capital recovery and shipment pressure, and their current quotes have gradually stabilized with extremely limited room for further reduction. Demand side, downstream Co3O4 enterprises, constrained by their own significant shipment pressure, showed weak willingness to purchase cobalt chloride; in contrast, cathode material and battery cell segments, due to continued inventory depletion, recently began to release some restocking intentions. Overall, the market still lacked directional breakthrough momentum. Although sporadic low-price transactions occurred, they were unlikely to substantially impact overall pricing, constrained by enterprises' performance targets, capital conditions, and shipment volumes. Currently, downward momentum is insufficient, and raw material costs provide relatively strong bottom support. Cobalt chloride market is expected to remain largely stable in the near term, with substantive changes potentially awaiting late May . : According to SMM spot quotes, Co3O4 spot prices continued to hold stable this week. As of May 15, Co3O4 spot prices remained steady at 360,000–367,000 yuan/mt, with an average price of 363,500 yuan/mt. Spot market: According to SMM, the Co3O4 market continued its previously sluggish pattern this week. Top-tier players slightly lowered their quotes, but cost support for Co3O4 remained effective, underpinned by periodically tight supply of cobalt intermediate products and firm cobalt chloride prices. Downstream LCO material enterprises continued to purchase as needed, restocking in small quantities mainly based on orders on hand, with market inquiry activity maintained at a moderate level. Looking ahead, end-use demand performance remains the key variable determining cathode material purchasing intensity. Given that market expectations for May are generally optimistic, attention should be paid to whether demand recovery can break the prolonged stable pattern and bring about periodic fluctuations. As for raw material cobalt intermediate products: According to SMM spot quotes, cobalt intermediate products (CIF China) spot prices held stable at 25.8–26.2 $/lb this week, temporarily unchanged from May 8. According to SMM, on the supply side, most suppliers held an optimistic outlook for the market, with offers continuing to hold firm above $26/lb. The demand side saw little change; as cobalt salt prices lacked upward momentum, the market maintained only small-volume purchasing as needed, with bid prices fluctuating around approximately $25.8/lb. Regarding shipments, DRC-origin cargoes remained stranded at South African ports and in overland transit. Only a few miners completed small-batch vessel bookings in April, with arrivals expected to begin in June; however, due to tight shipping capacity in Africa, the remaining large-volume cargoes may be delayed until July for concentrated arrivals. Looking ahead, as downstream orders gradually become clearer and restocking demand is progressively released, cobalt intermediate product prices still have room for upward recovery. On the news front, on May 13, Hanrui Cobalt released its investor relations activity record. When asked about the company's cobalt powder business, Hanrui Cobalt stated that the company is a major global cobalt powder supplier, ranking among the top three in global market share. It is currently steadily increasing the product share in high-end cemented carbide and battery sectors, with client recognition continuing to strengthen. Cobalt salt gross margins have been continuously improving, and as the market recovers, capacity is released, and the product mix upgrades, profitability is expected to gradually recover. Regarding the outlook for cobalt price trends in 2026, Hanrui Cobalt stated that cobalt price trends are influenced by multiple factors. From a supply and demand perspective, with the implementation of the cobalt export quota system in the DRC, the world's largest cobalt-producing country, cobalt supply has contracted significantly, and overall supply and demand are currently in a tight balance. In addition, on May 12, SMM Vice President Shirley Wang attended the Cobalt Institute annual conference held in Madrid, Spain, and delivered a keynote speech in the opening session on the current status and outlook of China's cobalt market. Regarding cobalt price trends, she stated that although theoretical calculations suggest that in Q2 to Q3 2026, the concentrated arrival of previously backlogged cobalt intermediate products will cause the cobalt raw material supply-demand balance to temporarily reverse into an inventory buildup state, putting downward pressure on cobalt prices, the limited volume of available cobalt intermediate products in the market—constrained by inventory levels and market sales pace—will provide strong support for cobalt prices. Prices are expected to edge up after several months, but with a clear upward ceiling. She also noted that raw material inventory levels, other raw material supply (such as MHP and refined cobalt), and the shipment pace of cobalt intermediate products are the biggest uncertainty factors affecting price trends.

Recently, China’s domestic rhenium market has seen a mild price correction, with prices of raw materials and metal products weakening in tandem. In contrast, overseas rhenium prices have moved higher against the domestic trend, highlighting a clear divergence between domestic and overseas markets. At present, the industrial chain remains in an obvious price game. Upstream sellers hold a cautious shipping attitude and mainly conclude small-volume rigid-demand deals, while downstream buyers stay on the sidelines with a strong willingness to press prices and test the bottom. Overall market trading activity is sluggish, and rhenium prices are expected to move in a range-bound consolidation in the short term. Differing from the downward trend in the domestic market, the overseas rhenium market has maintained a steady upward momentum with continuous gains in overseas quotations. Currently, the overseas price of ammonium rhenate has climbed to around USD 5,300, and the overseas price of rhenium pellets has risen synchronously to USD 375 per troy ounce. Supported by relatively resilient overseas demand and tight supply circulation overseas, rhenium product prices have kept advancing. A stark contrast has formed between domestic and overseas market trends, and the price spread pattern has also changed accordingly. From the perspective of industrial chain fundamentals, the price game atmosphere in the rhenium market remains intense, presenting a two-sided pattern of cautious holding by sellers and price bottom-hunting by buyers. Domestic copper and molybdenum producers are generally prudent in shipments, holding positive expectations for future prices and reluctant to release large volumes of goods at blindly low prices. Most players adopt a strategy of small-batch and demand-based partial shipments, with overall supply release remaining restrained. Downstream metal processors and end-user enterprises hold a low-price procurement mentality. Amid the market correction, their wait-and-see sentiment has intensified, and they are unwilling to build large inventories. Buyers continue to test sellers’ room for price concessions, and purchase-on-demand has become the mainstream market pattern. Overall, the domestic rhenium market lacks major positive catalysts at this stage, leaving raw material and product prices room for weak range-bound volatility in the short term. High overseas market prices offer limited support to domestic prices. The upstream-downstream price game is unlikely to ease in the near term. Without the concentrated release of new rigid demand and price support from the raw material end, domestic rhenium prices are projected to maintain a weak range-bound trend. Market transactions will continue to be dominated by small rigid-demand orders. It is necessary to keep track of the transaction rhythm between upstream and downstream players, changes in raw material inventories, and the transmission impact of overseas price movements on the domestic market. Looking at the domestic raw material market, the price center of rhenium raw materials has moved down recently. Major domestic copper-molybdenum smelters offer rhenium products mainly at CNY 26,000–27,000 per kilogram, with most market transactions settled within this range. Meanwhile, market supply structure has become differentiated. Some small and medium-sized producers adopt low-price shipments to capital 回收，with actual transaction prices falling to CNY 24,000–25,000 per kilogram. The circulation of low-price supplies has dragged down spot market prices and further deepened the correction of raw material prices. The metallic rhenium market adjusted in line with raw material trends. Rhenium pellet prices edged down alongside raw materials, with mainstream current transaction prices standing at around CNY 46,000 per kilogram. On the whole, the metal end shows a strong correlation with raw material price movements. In the absence of major positive drivers, downstream consumption is confined to industrial rigid demand, which is insufficient to drive a steady rebound in product prices. Market quotations adjust flexibly following spot trading sentiment.

The 2026 SMM Hong Kong Metals Forum , organized by Shanghai Metals Market (SMM) and sponsored by China Securities International as platinum sponsor, wrapped up successfully at Novotel Hong Kong Century on May 6. With over 300 registrations and 200 on-site attendees, the forum focused on the theme "New Metals Cycle: Prices, Power & Global Wrestling". The event featured keynote speeches by industry experts and SMM analysts, covering base metals, new energy materials, and strategic revaluation of minor and precious metals. Two high-level panel sessions were held, exploring hot topics such as geopolitics, supply-demand fluctuations, CBAM impacts, and market opportunities. It also served as an efficient platform for networking and cooperation across entire industry chains. SMM Opening Address SMM Chairman Adam Fan SMM Chairman Adam Fan stated in the opening address that it was a great honor to gather with elites from all sectors of the industry at this forum. The world is currently at a critical development period, and the exchange of industry ideas is not only an industry necessity but also an inevitable requirement for global development. Adam reviewed the century-long legacy of the London Metal Exchange, which has weathered nearly 150 years of global changes and industry evolution, fully demonstrating that although market structures may change, the fundamental need for risk management and reliable price discovery remains constant. At the same time, Adam candidly acknowledged that global markets are currently mired in a pattern of deep fluctuations. Geopolitical conflicts, supply chain fragmentation, and the compounding crises of energy and food, overlaid with de-globalization and rising trade protectionism, have intensified market uncertainty and inflationary pressures, posing severe challenges to global economic growth and industrial cooperation. Against this backdrop, SMM has steadfastly upheld its mission, refusing to be a bystander to the trend of industry fragmentation, and is committed to serving as a bridge for global industrial connectivity amid a landscape of division. SMM is dedicated to promoting dialogue and exchange, breaking down industry and regional barriers, and bringing together regulators, traders, and producers from around the world to discuss industry development. SMM upholds the principle of information transparency, continuously providing accurate, real-time market data to help the industry see through market fog and clarify market distortions. SMM deepens pragmatic cooperation by building a neutral and professional platform for exchange and matchmaking, driving all parties to pursue collaborative development based on shared interests and transcending political differences. Adam emphasized that information sharing and open collaboration would be leveraged to mitigate market risks and strengthen overall industry resilience, and called on the industry to seize the opportunity of this forum to jointly explore solutions, transforming current challenges into momentum for driving integrated and robust development of the global metals industry. Speech by Platinum Sponsor Wang Guangxue, Member of the Executive Committee of China Securities Co., Ltd. and Chairman of China Securities Futures Co., Ltd. Wang stated that as a vital bridge connecting the capital market and the real economy, China Securities has always been committed to serving the high-quality development of the metals industry. Leveraging the comprehensive financial strengths of CITIC Group, the company has built a full-chain integrated service system covering securities, futures, investment, and research. The company has been deeply engaged in the commodities sector, continuously providing forward-looking research to anticipate market trends, utilizing futures instruments to build robust risk barriers, and empowering industrial upgrading through capital services. It will fully leverage CITIC Group's full-license resource advantages and the strategic value of Hong Kong as an international financial center to continuously strengthen its cross-border comprehensive financial services capabilities. The company aims to tailor integrated risk management and asset allocation solutions at home and abroad for enterprises across the metals industry chain, precisely helping enterprises hedge against price fluctuation risks, and enabling them to operate steadily and advance with high quality in complex market environments. Structural Shifts: Rethinking Commodity Benchmarks in an Era of Persistent Inflation and Rivalry Speaker: Tian Yaxiong, Co-Head of R&D Department, China Securities Futures Tian shared professional research findings and cutting-edge market insights on hot topics including the market outlook for global metals and the deep impact of geopolitics on commodity trends. SMM Industry Analysis: Market Outlook and Pre-seminar Sharing for Base Metals and New Energy Materials (Copper, Aluminum, Nickel, Cobalt, Lithium, and Tin) & How SMM Empowers Your Commodity Trading & Analysis Speakers: Dr. Yanchen Wang, Managing Director of SMM Global UK Ltd.; Thomas Feng, Head of Industry Analysis at SMM Dr. Wang first analyzed the macroeconomic landscape. At the beginning of this year, the manufacturing PMIs of major economies performed quite well, actually exceeding 50%. Without the conflict, demand this year would have been quite strong. However, at the end of February, the US-Iran conflict broke out, and the International Monetary Fund subsequently revised down its global economic growth expectations. He pointed out that China's exports remain one of the three pillars that are still functioning well to date. Regarding automobile consumption, he noted that for the EV market, the positive factor for the auto industry also lies in exports. In Q1 this year, export performance was indeed very strong. If you look at EV exports alone, they actually grew nearly 160% YoY. Driven mainly by growth in global markets, he remains optimistic about the auto industry this year. In Europe, gasoline and diesel prices have risen significantly due to the US-Iran conflict, and EV demand is expected to benefit from this factor. He believes the power sector continues to maintain strong growth. Based on power grid and power generation investment data from the first two months, combined with State Grid Corporation of China's earlier announcement that fixed asset investment during the "15th Five-Year Plan" period is expected to reach 4 trillion yuan, this indicates that electricity demand will drive strong growth. State Grid Corporation of China will build more ultra-high voltage transmission projects, which will undoubtedly support aluminum demand and also copper demand. Aluminum: Wang noted that base metal prices experienced wild swings since the beginning of this year. He also discussed that China's aluminum smelters continued to raise operating rates due to favorable profitability; aluminum demand pulled back in Q1, and high prices drove inventory higher; approximately 950,000 mt of new aluminum smelting capacity in Indonesia may come online in 2026, with some investors watching Angola; and aluminum semis and wheel hub exports maintained growth in Q1. Copper: After copper prices experienced a pullback and adjustment in March, downstream procurement demand in China was rapidly released, providing strong support for copper prices to rebound. Copper prices rose sharply, with the market downplaying geopolitical risks. China's copper cathode demand was robust, and inventory continued to decline. China's copper scrap market was not truly facing a spot shortage issue. The outlook for copper cathode demand is positive. China remains dependent on copper concentrate imports. Spot copper concentrate TCs showed no signs of bottoming out. By-product revenue sustained smelter profits. He also analyzed the DRC sulphuric acid market conditions, the expected slowdown in global refined production growth, and how a refined market supply deficit should support higher copper prices. He also mentioned that the AI industry maintained strong development momentum, bringing new growth momentum to copper demand. Tin: He elaborated from the following perspectives: Myanmar tin production — slow recovery, upward trajectory, 2025-2027E; Indonesia tin ore RKAB quotas — expected to ease slightly in 2026; DRC — major mine production remained stable, but the M23 movement added uncertainty; global tin prices — supply determines the floor, macro factors drive fluctuations; the global tin market is expected to maintain a tight balance, with new mining capacity expected to be concentrated for release in 2028. Thomas Feng shared insights on nickel, cobalt, and lithium: emerging from the trough and entering a new cycle. ►New energy demand landscape: from EV popularization to energy storage deployment. First, he reviewed and provided an outlook on the global NEV market: NEV demand no longer maintains a one-sided high-growth trajectory, but instead exhibits characteristics of regional differentiation, structural divergence, and intensifying cyclical volatility; development paces in China, Europe, and the US have shown notable differences; performance trends of BEVs, PHEVs, and commercial vehicles have diverged; and the impact of inventory and price cycles on industry operations is increasing significantly. Second, in his review and outlook of the global energy storage market, he noted that the global energy storage market will remain concentrated in three key regions: China, the US, and Europe. Driven by 2030 climate goals, emerging markets such as the Middle East, Australia, and Southeast Asia are showing strong growth in demand for large-scale energy storage. Benefiting from cost advantages and improved safety performance, LFP battery market share is expected to continue climbing. ►Lithium: Reshaping the Supply-Demand Pattern in a New Cycle Global lithium carbonate market: shifting from overall surplus to structural tightness, with prices in a post-trough reassessment and recovery phase. Lithium hydroxide supply and demand maintained a tight balance: production on the supply side was driven by demand, the market share of ternary power batteries was squeezed, and room for growth was limited. The concentration of lithium resource supply declined, with marginal growth rates slowing down simultaneously. Significant demand growth drove the continued expansion of resource projects. ►Nickel: Navigating Policy Changes and Narrowing Oversupply Indonesia's nickel ore HPM adjustment: aimed at enhancing the economic value of non-nickel resources. The discussion covered scenario analysis of nickel ore prices following the implementation of the new policy, and the impact analysis of nickel ore benchmark price adjustments on MHP full costs. Indonesia's nickel ore RKAB quota: a tight balance is expected to set the tone for 2026. Global primary nickel is expected to remain in persistent oversupply. Regarding the logic behind refined nickel price trends, it was noted that policy and macro factors jointly amplified price fluctuations, while cost support elevated the long-term price floor. ►Cobalt: Shifting from Surplus to Shortage after the DRC Export Ban——Long-Term Uncertainty Remains Following the DRC policy announcement, cobalt product prices in China rose rapidly. However, high prices suppressed downstream demand, putting prices under pressure. Starting from H2 2025, the Chinese market continued destocking. Amid raw material shortages, enterprises began using MHP and recycled materials as production substitutes. MHP and recycling are expected to continue growing rapidly, effectively bridging the cobalt hydroxide gap. Cost pressure transmitted in both directions: LCO doping/ternary substitution restarted, and consumer cobalt demand is expected to decline by 10%. As persistently high cobalt prices suppress demand, if China secures 90% of the DRC quota, supplemented by MHP and recycling supply, inventory buildup could occur as early as 2026. Panel Discussion: Global Metals Market Outlook——Geopolitics Disruption, Macro Cycles and the Return of Commodity Volatility •Copper and Aluminum Price Rise, 2024-2026 •Precious Metals Storm: Silver Swung Wildly, Gold Hit Record Highs — Interest Rate Cycles, Safe-Haven Demand, and Industrial Logic •Precious Metals and Industrial Metals: Are Commodities Entering a New Cycle •Focus on Critical Minerals: Emerging Region Supply Rise and Policy Shifts, Green Transition Co-Shaping a New Narrative •Chinese Market: The 15th Five-Year Plan Moderator: Yanchen Wang, Managing Director, SMM Global UK Ltd. Panelists: Yahong Tian, Co-Head of R&D, CITIC Futures Henry Van, Head of Industrial Metals Analysis, Trafigura Sharon Ding, Head of China Basic Materials, UBS Justin William Hughes, Commodity Derivatives Distribution, Optiver Xie Shaobo, Head of China, Appian Mining Fund & independent non-executive Director, Zijin Gold International Panelists noted aluminum has great upside—its 10% price rise lags its 4%-5% supply contraction (vs. oil’s 60% price surge on 10% supply drop), with valuation recovery incomplete. They were more optimistic about copper demand, driven by real downstream demand rather than speculation; aluminum semis’ upside is underappreciated due to high oil prices. Long-term, copper and gold are key for mining investment, with scarce high-quality copper mines and solid gold fundamentals. They also discussed US tariffs, China’s metal demand resilience and overseas mining investment. Overseas mining success hinges on resource-to-reserve certainty; West Africa, Latin America, DRC and Zambia are new hotspots, while Australian/Canadian listed miners are undervalued. Enterprises must plan prudently based on risk tolerance. Geopolitical conflicts (e.g., Iran) may trigger energy crises, but current inflation control and China’s high metal consumption share weaken demand impact. Long-term, energy crises will boost electrification, expanding copper/aluminum demand. Investment depends on risk appetite and fundamental grasp. SMM Industry Analysis: Strategic Re-valuation of Minor Precious and Minor Metals in 2026 — The Case of Silver and Tungsten Silver: Market Supply-Demand Balance and Macroeconomic Volatility: Evolution and Shift in Industrial Demand, Particularly Driven by the PV Sector Tungsten: Strategic Status Upgrade - Supply Constraints and High-End Demand Driving the 2026 Price Rally Speaker: Juno Zhu, Senior Analyst of Minor and Precious Metals, SMM Juno shared insights on the strategic revaluation of tungsten and silver. Tungsten: Tungsten prices have surged over 500% since 2025; China holds over 50% of global tungsten reserves, contributes nearly 80% of global production, and possesses a complete industrial value chain; China's tungsten supply constraints in 2025: H1 mining quotas declined 6.45% YoY; global new project stagnation: limited capacity expansion in 2026, with ex-China mine development cycles of 3–5 years; domestic tungsten downstream applications: significant growth in cutting tools and PV tungsten wire in 2025; European market: persistent raw material shortages, with Rotterdam tungsten prices surging since February 2025; China's tungsten product exports: transitioning from primary products to deep-processed products; SMM analysis: the tungsten market supply-demand gap is expected to persist but narrow in 2026; prices are expected to consolidate at highs after overheating cools. Silver: Silver price fluctuations in 2026: an unexpected surge from Q4 2025 to Q1 2026, where frenzied investment demand and capital liquidity completely overshadowed the impact of the industrial off-season. Shift in trade dynamics in Q1 2026: SGE-LBMA premiums reversal and a surge in imports. Demand spike in Q1 2026: the PV industry started with a recovery, and an investment boom generated a phased demand peak. PV market outlook: policy shifts in 2026 are expected to curb demand growth, with overall silver consumption remaining stable. Silver demand outlook for 2026: industrial fundamentals provide support, while investment surges serve as a tactical highlight. Silver supply outlook for 2026: mild annual growth and an expanding secondary supply share are expected to drive a tight balance in the market. Market outlook: short-term trends are expected to revert to industrial fundamentals, while the medium and long-term trajectory is expected to fluctuate at highs driven by safe-haven demand. Panel Discussion: Metals in a Fragmented World: Trading Opportunities in the Age of Instability (Physical Trading and Hedging) •Shifting Liquidity Landscape across LME, CME, and SHFE •Shipping Risks and Sanctioned Metals: Implications for LME Inventory Structure •How European CBAM is Reshaping Global Metals Trade Flows •Is the Metals Market Entering an "Era of Geopolitical Risk Premiums" •Internationalization of SHFE & GFEX: Opportunities and Challenges for Global Investors Moderator: Jean Tang, Commercial Director, SMM Panelist: Anant Jatia, Founder and Chief Investment Officer, Greenland Investment Management Bella Yu, General Manager of Marketing Department, Liyang Unilink E-commerce Co., Ltd. David Wilson, Director of Commodity Strategy, BNP Paribas Duncan Hobbs, Research Director, Concord Resources Nicholas Snowdon, Head of Metals and Mining Research, Mercuria Energy Trading SA Sabrina Qian, Director of Geared broking desk, IFCHOR GALBRAITHS Anant Jatia stated: CBAM represents a major policy shift in Europe's metals sector. It is not merely about raising trade costs, but will profoundly reshape global metal trade flows and pricing logic. CBAM officially took effect in January this year, initially covering categories such as steel and aluminum semis, with its core mechanism incorporating carbon emission intensity costs into Europe's metal pricing system. High-carbon-emission producers will need to bear additional carbon allowance costs, significantly weakening their export competitiveness to Europe, while green capacity powered by clean energy will gain a clear advantage in the European market and capture greater market share. Following the policy's implementation, the landed cost of metals in the European market will rise, sustaining a long-term regional premium similar to the aluminum premium structure in the US market. Compared with the market differentiation among LME-registered brands following CBAM's implementation, what deserves more attention are the entirely new market opportunities it creates. By sourcing low-carbon, high-quality materials, market participants can potentially capture green premiums, while the mechanism will also transform metal trading models and the global trade flow landscape. The panelists also discussed the changing liquidity landscape across LME, CME, and SHFE. They noted that liquidity in the commodity market is becoming increasingly fragmented, with copper and other products now tradable across multiple global futures exchanges. Price discovery is no longer concentrated in a single market, and the traditional pattern of one market leading gains and others following has reversed, with multi-exchange rotation driving price movements becoming the norm. Factors such as geopolitical policies and tariff adjustments have given rise to regional pricing divergence, with price movements in some markets increasingly driven by capital flows and sentiment. Policy and geopolitical events have also significantly affected the spread between futures and spot prices of metals, creating opportunities for cross-market arbitrage. Meanwhile, policies related to critical minerals supply security, regional supply shocks, and geopolitical disruptions have widened the dislocation between regional fundamentals and price signals. The metals market has entered a window of structural arbitrage opportunities, and this trend is expected to persist. Cross-market arbitrage continues to provide liquidity support to exchanges, a phenomenon broadly observed across both industrial and precious metals. In addition, the panelists engaged in in-depth discussions on the differences between exchange liquidity and industrial liquidity, as well as factors influencing metal price trends, including fundamentals, geopolitical developments, energy costs, and commodity transportation costs. Opening Remarks for Coffee Break Xu Tao, CEO of CSCI In his address, Xu Tao stated that Hong Kong serves as a vital hub in the global metals pricing and trading system, playing a key role in the aggregation of LME delivery resources and the internationalization of RMB-denominated commodities. Going forward, China Securities International will continue to leverage its role as a bridge for cross-border business, deepen collaboration with CSC Futures, and provide clients at home and abroad with efficient and professional comprehensive financial services in commodities, contributing to a higher level of opening-up of China's financial markets. Networking (Coffee Break) Acknowledgments The 2026 SMM Hong Kong Metals Forum was successfully held with special thanks to the Platinum Sponsor, China Securities International, for its strong support, as well as sincere gratitude to Liyang Unilink E-commerce Co., Ltd. for its significant contribution to the forum. Going forward, China Securities and China Securities International will continue to leverage the unique geographical and resource advantages of Hong Kong as an international financial center, deepen strategic cooperation with authoritative industry platforms such as SMM, and continuously improve the "onshore + offshore" integrated bulk commodity comprehensive service system, precisely empowering enterprises to seize market opportunities and hedge operational risks, contributing professional expertise to advancing the internationalization of China's bulk commodity market and enhancing the industry's global competitiveness. Liyang Unilink E-commerce Co., Ltd. (formerly Wuxi Stainless Steel Electronic Trading Center) has been engaged in new energy materials and critical metals supply chain services for over 20 years. Through its digital platform and offline service network, the company provides upstream and downstream clients with full-process online services including price negotiation, contract signing, contract execution, payment settlement, cargo delivery, processing, quality inspection, and after-sales services. With transparent pricing, 100% fulfillment guarantee, and strict quality control, it has established stable cooperation with over 30,000 industrial clients. In the field of critical strategic metal resources, Unilink has built a supply chain service system covering 14 critical metal varieties including indium, bismuth, nickel, cobalt, and lithium. Spot delivery volumes of indium and bismuth each account for over 90% of China's consumption. For new energy materials, spot delivery volumes of nickel, cobalt, and lithium on Zhonglian Jin's platform account for 30%, 90%, and 20% of China's consumption respectively, while daily sulfur trading volume exceeds 80,000 mt. Unilink implements a service model of "payment upon delivery, cargo pick-up upon payment," effectively shortening delivery cycles, reducing enterprise operating costs, and helping upstream and downstream clients achieve stable and efficient material scheduling. Zhonglian Jin strictly adheres to national industrial policies and resource management requirements, consistently focusing on serving the real economy, fully ensuring the security and smooth operation of bulk commodity supply chains, and promoting efficient resource allocation. It has ranked among China's Top 500 Service Enterprises and China's Top 20 Growing Internet Enterprises for two consecutive years. With that, the 2026 SMM Hong Kong Metals Forum came to a successful conclusion! Thank you for your help and support for this forum~