On April 9, 2026, the Japanese Cabinet officially approved the latest amendment to the Waste Disposal and Public Cleansing Act (commonly known as the "Waste Cleansing Act"). The core of the amendment is to upgrade metal recycling operations from a notification system to a permit system, and to impose a new obligation requiring confirmation from the Minister of the Environment for scrap metal exports.

Recent Performance of Key Iron Ore Price Spreads Since 2024, large-scale iron ore projects in and outside China have been continuously commissioned, leading to a notable increase in iron ore supply. However, the sharp decline in downstream steel demand caused the iron ore supply-demand gap to widen continuously. The iron ore supply-demand pattern shifted from tight to loose, which also led to a year-on-year decline in average iron ore prices. Nevertheless, influenced by multiple factors such as iron ore supply and demand, port inventory, and steel mill profits, the frequency of price spread fluctuations among iron ore varieties increased. SMM reviewed the recent trends of key price spreads, as detailed below: ◼ Internal Differentiation Among Medium-Grade Resources, with Price Spreads Widening Significantly Affected by long-term contract negotiations, the trade liquidity of mainstream medium-grade ore deteriorated significantly. The lack of trade liquidity in certain varieties was directly transmitted to variety price spreads, with price spread fluctuations of mainstream medium-grade ore such as MNPJ intensifying notably. Among them, the price spread between PB fines and Jimblebar fines was the most sensitive: In early September 2025, the price spread between the two was 20 yuan/mt. As news of the ban on Jimblebar fines port cargo pick-up was released, its spot price came under pressure and dropped sharply, with the price spread quickly widening to around 50 yuan/mt. In addition, affected by the reduction in tradable varieties of mainstream Australian medium-grade ore, the variety price spreads between PB fines and Newman fines, as well as MAC fines, also showed a notable narrowing trend. Source: SMM ◼ High-Grade Premium Highlighted, Price Difference Between High and Medium-Grade Ore Widening Rapidly From Q4 2025 to date, price spread fluctuations among high, medium, and low-grade ore were equally intense. After entering 2026, structural contradictions in the iron ore market became further pronounced. Affected by declining raw ore quality from northern Brazilian mining areas, IOCJ fines supply experienced a trend of contraction. Coupled with the cost-effectiveness recovery brought by earlier price weakness and the release of concentrated restocking demand from steel mills ahead of Chinese New Year, IOCJ fines prices received strong support. Meanwhile, mainstream medium-grade ore remained tight in available resources due to trade flow disruptions. Against the backdrop of a shift between high and low-grade resources, the price difference between high and medium-grade ore widened again. Reviewing the period from November 2025 to March 2026, north China entered the heating season, and environmental protection-driven production restrictions became more frequent. As Chinese New Year and the Two Sessions approached, production restrictions were further tightened, with blast furnaces at steel mills in multiple areas of Hebei shut down, leading to a notable decline in hot metal production. Notably, during this period, steel mill profits remained generally stable, and some enterprises, in pursuit of higher output, tended to increase the blast furnace blending ratio of high and medium-grade ore while correspondingly reducing procurement of low-grade ore. Driven by this structural demand shift, the price difference between medium and low-grade ore widened. Source: SMM ◼ Lump-Fines Price Spread Experienced a "V"-Shaped Trend, Declining First Then Rising Since sintering processes generate relatively high pollution emissions, environmental protection-driven production restrictions typically prioritized restricting sintering and shaft furnace production. In north China and north-east China, during heating seasons or major events, if production restriction periods are prolonged, steel mills often increase the proportion of lump ore in their mix to alleviate tight supply of sinter and pellet, thereby driving lump ore prices to rise rapidly. However, over the past three years, the impact of seasonal factors on lump ore demand has gradually weakened, mainly for three reasons: first, steel mills have successively completed ultra-low emission retrofits for flue gas, reducing overall pollution intensity; second, sintering machines in Hebei and other regions have surplus capacity, and environmental protection-driven production restrictions have mostly been limited to within one week, significantly reducing the actual impact on production; third, steel mill profits have been under pressure, reducing the pursuit of hot metal production, and the proportion of high-grade ore usage has adjusted downward accordingly. Under the combined influence of the above factors, since H2 2024, lump ore premiums have continued to decline, hitting a new low by the end of 2025. Meanwhile, the price spread between PB lump and PB fines also narrowed significantly, contracting from 195 yuan/mt to 63 yuan/mt, a decline of over 50%. Against this backdrop, the cost-effectiveness of lump ore gradually became more prominent. Combined with the extended environmental protection-driven production restriction period in northern China in November 2025, the proportion of lump ore usage began to increase. However, as lump ore premiums had remained low for an extended period, product returns were poor, and major mines correspondingly reduced lump ore production. Driven by both supply contraction and demand growth, lump ore premiums rebounded, and the lump-fines price spread widened accordingly. As of mid-March 2026, lump ore premiums have risen to a periodic high, up nearly 280% from early January. The lump-fines price spread has also gradually widened to above 100 yuan/mt. Source: SMM Key Driving Logic of Product Price Spreads Mix Adjustment Led by Steel Mill Profits (Core Driver) ◼ 1 Profit Expansion Phase: High Hot Metal Production Drives Demand for High-Grade Ore When steel mill profits widened and per-mt crude steel returns were higher, steel mills pursued pig iron production and tended to raise the grade of furnace feed. When selecting iron ore, they preferred to purchase high-grade or medium-grade ore. As shown, in H1 2025, profits of common billet at China's steel mills rebounded notably. Common billet profits reached a peak of nearly 350 yuan/mt. At this point, to boost production, steel mills moderately increased the proportion of high-grade IOCJ fines, as well as high-grade lump and pellet usage. Demand growth over a certain period stimulated high-grade ore price increases, and it was clearly evident that the price spread between high-grade and medium-grade ore began to widen. Source: SMM ◼ 2 Profit Contraction Phase: Cost Reduction and Efficiency Improvement Boost Low-Grade Ore Procurement After steel mill profits contracted, to reduce costs and improve efficiency, steel mills significantly increased their focus on cost-effectiveness across iron ore products, tending to prioritize products with higher cost-effectiveness. Within the mid-grade ore range, steel mills preferred varieties with a larger price spread relative to PB fines. Meanwhile, weakening profits meant that higher pig iron or crude steel production led to greater loss pressure. Therefore, steel mills controlled pig iron production rationally from the perspective of economic efficiency. However, given the high comprehensive costs of shutting down or reducing blast furnace loads, steel mills tended to maintain normal blast furnace operations while lowering furnace charge grade and increasing the use of low-grade ore. Under these circumstances, assuming other conditions remained unchanged, the price spread between mid- and low-grade ore tended to narrow. Taking the market around October 2025 as an example, billet profits continued to decline, and the mid-to-low-grade ore price spread narrowed accordingly. Data source: SMM Dual Transmission Paths of Seasonal Effects ◼ Seasonal factors influenced iron ore variety demand through dual paths of "end-use demand fluctuations" and "heating season environmental protection-driven production restrictions" ◼ 1. Seasonal fluctuations in end-use demand: impact on steel mill production and raw material procurement pace The shift between off-season and peak season in end-use demand created cyclical impacts on iron ore variety demand. Off-seasons were mainly concentrated in summer (June–August) and winter (November–February): high temperatures and heavy rainfall in summer suppressed construction, while hydropower replacing thermal power in south China lowered electric furnace production costs and squeezed blast furnace hot metal production; in winter, construction sites in north China shut down and steel demand contracted. During off-seasons, steel mills increased blast furnace maintenance and lowered furnace charge grade to control production, with demand for high-grade iron ore weakening accordingly. During peak seasons (spring March–May, autumn September–October), downstream construction activity was released intensively, steel mills actively ramped up production, and furnace charge grade rose in tandem, strengthening demand for high-grade fines, lump ore, and pellet, supporting their premium performance. In summary, seasonal fluctuations in end-use demand drove cyclical changes in iron ore variety demand by influencing steel mill production and furnace charge grade selection. Transmission logic: end-use demand fluctuations → steel mill production adjustments → changes in total iron ore procurement volume → corresponding shifts in variety demand structure Data source: SMM Data source: SMM ◼ 2. Environmental protection-driven production restrictions during the northern heating season: direct disruption to furnace charge structure and variety premiums Heating season environmental protection-driven production restrictions primarily targeted steel mills in north China, spanning November to April of the following year . During this period, if air quality failed to meet standards, local environmental protection authorities would initiate production restriction measures, prioritizing restrictions on sintering machines and shaft furnaces, leading to tighter supply of sinter and pellet. To maintain blast furnace operations, steel mills were forced to increase the proportion of lump ore in their charge mix, driving a seasonal strengthening of lump ore demand, which in turn supported lump ore premiums and a rise in the lump-fines price spread. Transmission logic: environmental protection policy → sinter machine production restrictions → forced adjustment of furnace charge structure → stronger demand for lump ore and pellet ore → premium fluctuations Data source: SMM Coke prices affected the iron ore product mix through dual channels of fuel costs and profit margins ◼ 1 High coke prices suppressed lump ore demand As raw material directly charged into furnaces, lump ore consumed more coke than sinter and pellet ore, so steel mills typically controlled the lump ore charging ratio at around 10%. During periods when coke prices fluctuated at highs, steel mills tended to reduce lump ore proportions to control fuel costs. Before H1 2024, coke prices fluctuated at highs, and the lump ore usage ratio continued to decline, falling to a low of 9.8%. However, as coke prices underwent nearly a year of decline and entered a low range, combined with relatively low lump ore premiums and the push from environmental protection-driven production restriction policies, the lump ore charging ratio gradually rebounded, once exceeding 11%. Data source: SMM ◼ 2 Demand for high-silicon fines suppressed The higher the silicon content in iron ore, the greater the blast furnace slag volume and the higher the coke ratio. Therefore, low-silicon smelting is a key direction for blast furnace process optimization and a critical lever for cost reduction and efficiency improvement. Among current iron ore products on the market, mainstream mid-grade ore Si content mostly ranges from 4-6%. Brazilian high-silicon BRBF has relatively high Si content at 10-12%. Therefore, Australian ore is mostly used as the primary material, while Brazilian ore and non-mainstream ore serve as auxiliary materials. When coke prices were at highs, the cost disadvantage of high-silicon resources became prominent, and steel mills tended to reduce Brazilian high-silicon BRBF, Indian fines, and South African fines, shifting to mid-to-high-grade fines with lower silicon content (such as PB fines and IOCJ fines). Going forward, the iron ore oversupply pattern will become more prominent, while under overcapacity pressure in China's steel sector, steel mill profits will remain poor. Therefore, cost reduction and efficiency improvement will be a long-term direction, driving stronger demand for low-silicon, low-aluminum products. Consequently, mainstream mid-grade ore will remain the product with the best market circulation. Data source: SMM ◼ 3 Rising share of mid-to-low-grade fines under low profits High coke and ore prices squeezed steel mill profits, and steel mills no longer pursued hot metal production maximization, instead increasing mid-to-low-grade fines usage and lowering charging grade to control costs. Based on historical data, such situations occurred in Q3 2024 and Q2 2025. Auxiliary Variables: Inventory, Substitution, and Preferences ◼ 1 Product substitution effect: mid-grade inter-substitution and "high-low blending" substitution In the product mix of steel mill sinter, "high-low blending" and "mid-grade blending" are commonly mentioned concepts, with the core principle being to select the optimal products based on the cost-effectiveness of different iron ore varieties. Under normal circumstances, steel mills use MNPJ (i.e., mainstream medium-grade ore types such as Mac fines, Newman fines, PB fines, and Jimblebar fines) as primary materials, or adopt a high-low grade combination of " IOCJ fines + super special fines " as primary materials, and adjust auxiliary material ratios based on the acidity and alkalinity of the primary materials. Using mainstream medium-grade ore types as primary materials is the more common practice. When mainstream medium-grade ore types are periodically less cost-effective — for example, when the combined cost of "IOCJ fines + super special fines" is lower than that of medium-grade PB fines — some steel mills periodically switch to high-low grade combinations as primary materials to reduce costs. As shown in the chart, during March to April of 2024 and 2025, the cost-effectiveness advantage of high-low grade combinations was significantly superior to that of medium-grade ore, and therefore some steel mills in regions such as Hebei and Shanxi predominantly chose high-low grade combinations as primary materials during these periods. Data source: SMM ◼ 2. Inventory Structure Drives Price Spreads among Varieties: Inventory Changes and Price Transmission Logic Inventory is the most intuitive reflection of short-term supply-demand imbalances in the iron ore market. When supply is loose or demand weakens, port inventory continues to rise, and inventory levels generally exhibit a negative correlation with prices. Once inventory accumulates to a certain level, it tends to exert significant downward pressure on prices. Over the past two years, the inventory and price trends of Ukrainian concentrate (hereinafter "Ukrainian concentrate") have well validated this pattern. In November 2023, Ukrainian concentrate shipments gradually resumed, but as steel mills still had concerns about the stability of its supply, actual usage did not increase significantly, leading to continued port inventory accumulation. By May 2024, SMM ten-port inventory data by variety showed that Ukrainian concentrate inventory exceeded 3 million mt , exerting significant downward pressure on prices, with Ukrainian concentrate prices falling from 1,200 yuan/mt at the beginning of the year to 900 yuan/mt. Meanwhile, the price spread between Ukrainian concentrate and PB fines also narrowed from 160 yuan/mt to 80 yuan/mt, and its cost-effectiveness advantage gradually emerged, driving a notable increase in steel mill demand. Entering early 2026, affected by a decline in Ukrainian concentrate supply, port inventory retreated from highs to around 1.1 million mt, and tightening supply supported a notable rebound in Ukrainian concentrate prices, with the price spread versus PB fines also widening from 80 yuan/mt to around 100 yuan/mt . Data source: SMM Variety Cost-Effectiveness Assessment Model and Selection Strategy ◼ 1. Horizontal Comparison: Micro-Indicator Assessment among Same-Grade Varieties. In recent years, global mainstream iron ore supply entered a resource transition period, with notable structural adjustment characteristics. On one hand, some aging mines faced resource depletion , with declining mining grades; on the other hand, new mines were still in the capacity ramp-up stage , and the transition between old and new resources still required time. As a result, quality indicators of multiple mainstream varieties were broadly downgraded. Among them, medium-grade ore indicators represented by PB fines and Newman fines weakened; due to declining raw ore quality in Brazil's northern system, not only did IOCJ fines production contract, but the proportion of high-silicon special IOCJ fines output also rose, with silicon content increase being particularly notable beyond the decline in iron grade. Against this backdrop, steel mills tended to assess the most cost-effective varieties by calculating comprehensive price spreads. From the perspective of minor indicator adjustment values, the smaller the adjusted price spread relative to the MMI 61% index, the better the variety met steel mill demand. Based on Q1 averages, Jimblebar fines offered the best cost-effectiveness, followed by PB fines, Mac fines, Newman fines, and BRBR. However, since Jimblebar fines could not be traded or delivered, PB fines remained the optimal choice among medium-grade ores. Data source: SMM ◼ 2. Vertical Comparison: Historical Percentile Timing of High, Medium, and Low-Grade Price Spreads Beyond the horizontal comparison of price spreads among varieties of similar grades, vertically examining price spread changes among high, medium, and low-grade ores was equally important. By analyzing historical percentiles of the price difference between high and medium-grade ore and the price difference between medium and low-grade ore, the relative valuation of each grade could be assessed to guide variety switching and timing. Price difference between high and medium-grade ore: when at historical highs, the high-grade premium was excessive, and switching to medium-grade was advisable under profit pressure; when at historical lows, high-grade cost-effectiveness stood out, and moderate allocation increases were appropriate. Beyond premiums, using IOCJ fines and PB fines as benchmarks and calculating based on their indicator costs, the neutral value of the price spread between the two was 100 yuan/mt. When the spread exceeded 100 yuan/mt, PB fines offered better cost-effectiveness; when below 100 yuan/mt, IOCJ fines were more cost-effective. Price difference between medium and low-grade ore: when at historical highs, low-grade advantages were evident, suitable for cost reduction during thin-margin periods; when at historical lows, medium-grade cost-effectiveness improved, allowing flexible adjustments. Using PB fines and SSF as benchmarks and calculating based on their indicator costs, the price spread between the two ranged from 100-120 yuan/mt, with a midpoint of 110 as the neutral value. When the spread exceeded 110 yuan/mt, super special fines offered better cost-effectiveness; when below 110 yuan/mt, PB fines were more cost-effective. Combining the historical percentiles of both, allocation windows for each grade could be captured based on profit cycles to achieve cost optimization. Data source: SMM ◼ 3 Morphology Comparison: Arbitrage Logic of Fines-Lump Price Spread and Lump Ore Premium. Taking the price spread between PB lump and PB fines as an example, influenced by steel mill profits and coke prices, the fines-lump price spread exhibited notable fluctuations. Historical data showed the price spread between PB lump and PB fines ranged approximately 80–500 yuan/mt. In H1 2021, driven by high steel mill profits and supply-demand mismatch, the fines-lump price spread once approached the historical high of nearly 500 yuan/mt. In recent years, as steel mill profits narrowed, the price spread contracted significantly. In 2025, the fines-lump price spread operated within a range of 70–220 yuan/mt, with an annual average of approximately 128 yuan/mt. In early 2026, the lump ore premium fell to $0.04/dmt, and the price spread narrowed to 65 yuan/mt. Given that China's overcapacity landscape has not fundamentally changed, steel mill profits are expected to remain basically flat with 2025, and the fines-lump price spread is likely to maintain the current range. Based on this assessment: When the lump-fines price spread exceeds 120 yuan/mt, PB fines offer better value; When the lump-fines price spread falls below 120 yuan/mt, PB lump offers better value. Steel mills can choose accordingly based on their own conditions. Data source: SMM ◼ 4 Substitution Comparison: Cost-Effectiveness Competition between Lump Ore and Pellet Generally, when steel mill profits are favourable, steel mills consider increasing the usage ratio of lump ore and pellet. Typically, the combined usage share of lump ore and pellet ranges between 20%–30%. In actual ore blending decisions, steel mills' price spread analysis between lump ore and pellet falls into two categories: inland steel mills usually compare the price spread between domestic pellet and lump ore such as PB lump and Newman lump; while coastal port steel mills focus more on the price spread between imported pellet and corresponding lump ore. In recent years, with the increase in China's pellet capacity and the decline in imported pellet volumes, the weighting of price spread comparison between same-grade lump ore and domestic pellet has further increased. Historical data showed the price spread between 62% grade pellet in Qingdao and PB lump ore at Qingdao port ranged approximately 40–260 yuan/mt, with an annual average price spread of approximately 108 yuan/mt in 2025. Considering steel mills' actual cost accounting, the price spread equilibrium point between pellet and lump ore is generally set at 120 yuan/mt. When the pellet-lump price spread exceeds 120 yuan/mt, lump ore offers better value; When the pellet-lump price spread falls below 120 yuan/mt, pellet offers better value. Steel mills can choose accordingly based on their own raw material conditions, logistics structure, and production requirements. Data source: SMM Carbon Neutrality as a Two-Way Driver: Steel Industry Restructuring Shifts Iron Ore Demand ◼ The rapid advancement of industrialisation has significantly intensified the impact on the global climate, making the urgency of achieving carbon neutrality increasingly pressing. Particularly over the past five years, major economies represented by China and the EU have not only defined their respective emission reduction targets but also successively introduced legally binding regulations, marking a shift in global climate governance from consensus to action. Going forward, China's Ecological Environment Code and the EU's European Climate Law and "Fit for 55" package will become the two major institutional benchmarks for global climate governance. China's carbon market and the EU's CBAM, from the two dimensions of domestic carbon pricing and cross-border carbon adjustment respectively, form core policy tools for effectively controlling carbon emissions. Source: SMM ◼ Driven by both domestic and international legislation, the steel industry will undergo an evolution in emission reduction pathways: process transformation from long-process to short-process steelmaking; low-carbon transition driving non-blast furnace ironmaking development and carbon constraints driving furnace charge structure upgrades. These pathways will collectively reshape the demand structure of iron ore, manifested as strengthened preference for high-grade, low-impurity iron ore concentrates and premium mainstream ore types, while demand for traditional sintering fines tends to narrow. ◼ 1. Process restructuring: the shift from long-process to short-process steelmaking will drive increased demand for mainstream varieties and high-grade ore Under the global backdrop of "carbon neutrality" goals, the steel industry is regarded as one of the key areas for industrial emission reduction. The traditional long process (blast furnace-converter process), due to its reliance on coke and iron ore, is considered a major source of high carbon emissions and has become a key target for regulation and transformation. Many countries have begun shifting toward the more environmentally friendly short process (steel scrap-electric furnace process), but this transition has been relatively slow in China. On one hand, electric furnace steelmaking is largely limited to rebar production; on the other hand, steel scrap supply is constrained. Additionally, considering factors such as melting costs and losses in steel scrap smelting, pig iron costs should be higher than steel scrap prices by 100-150 yuan/mt for steel scrap to be more cost-effective; if the price spread is below this level, pig iron offers better value. In 2025, the price spread between hot metal costs and steel scrap fluctuated in a range of -100-210. Pig iron costs were mostly more favorable than steel scrap, so the share of blast furnace steelmaking in China stayed high. Source: SMM In China, apart from profitability, short-process electric furnaces are also constrained by high electricity prices, steel scrap price fluctuations, and cost disadvantages , resulting in slow capacity growth. Although the national carbon market is already operational, current carbon prices have not been effectively incorporated into trading, which is not enough to drive a large-scale shift from long-process to electric furnaces, and enterprises mostly adopt gradual adjustments . Source: SMM Based on current policy and market conditions, before China's steel industry is formally included in the national carbon market trading and during the early stage of the EU's CBAM policy implementation, the blast furnace-converter long process will remain the dominant mode of global steel production over the next five years. However, under the dual pressures of domestic steel capacity capping and rising carbon prices in the future, China's electric furnace short process is entering a historic development opportunity, with its share of steelmaking set to gradually increase. By 2030, the share of electric furnace steelmaking is expected to reach around 35%. In the long term, this trend will gradually suppress iron ore demand, causing it to weaken. Against the backdrop of oversupply, competition among iron ore varieties will intensify, and therefore high cost-effective varieties with low silicon and aluminum content will become the optimal choice for steel mills. Undoubtedly, mainstream medium and high-grade ore such as PB fines, Mac fines, Newman fines, IOCJ fines, BRBF, and Simandou fines all belong to relatively high-quality varieties. ◼ 2 Low-carbon transition driving non-blast furnace ironmaking development, demand for high-grade iron ore concentrates with Fe content above 65% expected to continue rising Currently, global DRI production accounts for only 10% of total global production. As low-carbon technologies such as hydrogen-based DRI accelerate in application, DRI production share is expected to rise to 13% by 2030. In comparison, China's non-blast furnace ironmaking share is even smaller, with mass production not yet achieved and only leading steel enterprises in the trial production stage. Under current carbon neutrality requirements, China's non-blast furnace ironmaking is facing significant development opportunities. According to incomplete statistics, announced non-blast furnace ironmaking capacity totaled approximately 18 million mt, of which only 2 million mt were under construction, with the remaining 16 million mt of projects still in early stages, carrying relatively high risk coefficients. Whether these projects materialize depends on multiple factors including funding, market conditions, decarbonization policies, and government support, resulting in significant uncertainty regarding future commissioning time. Future projects will primarily be gas-based; current major DRI equipment uses coke oven gas (COG), but in the medium and long-term will gradually shift to green hydrogen. Data source: World Steel Association Data source: SMM Currently, the core requirements for DRI raw materials are "high grade, low impurities," with Fe grade ≥66% and SiO2+Al2O3 ≤3.5%. China's concentrates generally have relatively high silicon content, with some exceeding 10%. Therefore, only a few low-silicon concentrates can be used to produce direct reduced pellet feed. Ex-China high-grade concentrates offer a wider range of options. Data source: SMM As DRI production grows, demand for high-quality iron units is also increasing, leading to a structural rise in the share of high-grade iron ore and pure iron raw materials. As shown in the chart, varieties within the red box all have Fe content above 66%, with Si+Al content around 3.5%; these include some high-grade iron ore concentrates from China, Brazilian pellet feed concentrates, Peruvian concentrates, and emerging Simandou fines, all of which can serve as DRI raw materials. Data source: SMM ◼ 3. Carbon constraints drive furnace charge structure upgrades, with pellet replacing sinter becoming key to carbon reduction, and pellet-making concentrates with grades above 62% set to see significant growth. As China's steel industry pursues structural adjustment, optimization, and green, low-carbon, high-quality development, pellet ore as a premium raw material for blast furnaces has been increasingly favoured by the industry, driving the rapid development of the pellet sector. The energy consumption of the pellet production process is approximately 50% of that of the sinter production process. According to CISA's 2025 statistics, the average energy consumption of the sintering process among its member units was 48.5 kg/mt, while the average energy consumption of the pellet process was 25.23 kg/mt, indicating lower energy consumption in pellet production. Due to the different heat supply methods in pellet roasting compared to sintering, SO2, NOX, and CO2 emissions after combustion are much lower than those from the sintering process. In addition, pellet ore generates much less dust than sinter, making the pellet process more environmentally friendly. The emission comparison between the sintering process and the pellet process is shown in the chart below: Data source: SMM ◼ A high proportion of pellet ore in furnace charge is the direction and demand of current blast furnace charge structure development Compared with other countries in the world, China's blast furnace charge structure is dominated by sinter with a low pellet ratio , while blast furnaces in North America and Europe primarily use high proportions of pellets, with some blast furnaces reaching 100%. For example: SSAB's blast furnace in Sweden had a pellet ratio of 97.2%, Dofasco in Canada achieved 100% all-pellet smelting, and USS No. 14 blast furnace had a pellet ratio of 80%, etc. According to CISA's 2025 statistics, the average fuel ratio per unit of ironmaking at China's key steel enterprises was 523-525 kg/mt, approximately 70 kg higher than the average fuel ratio of European and American blast furnaces. The reason is that China's blast furnace charge is dominated by sinter, with sinter iron grade at around 54-57%, while pellet ore iron grade is above 62%. High sinter usage leads to high slag volume and high energy consumption in blast furnaces. Therefore, against the backdrop of carbon reduction, increasing the proportion of pellet ore usage is imperative. Data source: SMM ◼ Currently, there are three main types of pellet production equipment in China: shaft furnaces, chain grate-rotary kilns, and travelling grates . In recent years, pellet equipment with a single-unit capacity below 1.2 million mt/year (excluding ferroalloy and foundry pig iron pellets) has been classified as a restricted category; therefore, capacity replacement of pellet equipment continues, with new pellet projects predominantly using travelling grates, with single production line capacity mostly at 5 million mt. As a result, current pellet production is mainly based on rotary kilns and travelling grates. These two types of equipment have less stringent raw material requirements compared to shaft furnaces, allowing the blending of multiple ore types such as magnetite, hematite, and limonite. However, it must be concentrate, with a particle size requirement generally of -200 mesh, 70% or above. Commonly used varieties include: domestic concentrate, Ukrainian concentrate, Brazilian concentrate, Middle Eastern concentrate, Chilean concentrate, Australian concentrate, Sierra Leonean concentrate, etc. As the proportion of pellet usage increases in the future, demand for concentrate with grades of 62% and above will continue to expand. ◼ Overall, before 2030, as carbon neutrality policies and Europe's CBAM are still in the early stages of implementation, carbon emission costs have not yet become significantly prominent. Meanwhile, China's steel production is trending downward, while iron ore supply is accelerating, steel mill profits are under pressure, and cost reduction and efficiency improvement remain the industry's mainstream strategy. Therefore, procurement will continue to focus on low- and medium-grade iron ore, demand for non-mainstream ore varieties will remain robust, the price spread among high-, medium-, and low-grade ore will be difficult to widen, and premiums for lump ore and pellets will also stay at current low levels. ◼ After 2030, market requirements for green steel will gradually increase, the share of electric furnace steelmaking and non-blast furnace steelmaking will rise, and overall iron ore demand will decline notably. Although blast furnace capacity will decrease, operating rates may improve, driving down sinter demand while pellet demand increases significantly. This shift will lead to a sharp decline in fines demand and an expansion of market share for mainstream medium-grade ore; meanwhile, demand for high-quality concentrate will rise, pushing the price difference between high and medium-grade ore wider, and pellet premiums will also continue to climb. Additionally, although lump ore demand has some growth potential, the increase will be limited under carbon emission constraints, and lump ore premium elasticity will diminish accordingly.

Recently, the Shanghai Municipal National Development and Reform Commission (NDRC) issued a notice on the *Key Work Arrangements for Carbon Peaking, Carbon Neutrality, Energy Conservation and Emission Reduction in Shanghai for 2026*. The document stated that Shanghai would promote the diversified development of local renewable energy sources such as wind and solar power, with the city adding 600,000 kW of new PV installations. Two batches of standalone ESS power station projects would be advanced. The results of competitive bidding on mechanism-based electricity prices for new energy incremental projects would be publicly announced. Huangpu District would be organized to carry out the national carbon peaking pilot program. Chongming District would be supported in steadily advancing the national pilot program for ecological product value realization mechanisms. The *Shanghai Action Plan for Accelerating Green and Low-Carbon Transformation (2024–2027)* would be implemented, promoting the deployment of 15 key application scenarios for green and low-carbon transformation. The construction of national-level zero-carbon industrial parks would be supported, and a number of municipal-level zero-carbon industrial parks would be developed.

[SMM Analysis] Why Has LME Lead Shifted Back to Backwardation for the First Time in Nearly a Year? SMM, April 21 — Since late March, London lead prices have stabilized after bottoming out, gradually holding above the $1,900/mt level and entering an upward trend, attempting to approach the $2,000/mt mark.

SMM April 17 News: Metals Market: Overnight, domestic base metals generally rose. SHFE copper fell 0.06%. SHFE aluminum rose 0.97%, SHFE lead fell 0.98%. SHFE zinc rose 0.08%. SHFE tin rose 0.05%. SHFE nickel rose 0.11%. In addition, the most-traded alumina futures rose 0.42%, and the most-traded casting aluminum futures rose 0.72%. Overnight, ferrous metals all rose. Iron ore rose 0.45%, stainless steel rose 1.39%, rebar rose 0.42%, and hot-rolled coil rose 0.33%. Coking coal and coke: coking coal rose 0.28%, coke rose 0.74%. Overnight, overseas metals generally rose. LME copper fell 0.26%. LME aluminum rose 0.55%, LME lead fell 0.99%. LME zinc rose 0.6%. LME tin rose 1.31%. LME nickel rose 0.41%. Overnight Precious Metals : COMEX gold fell 0.26%, COMEX silver fell 1.47%. Overnight SHFE gold rose 0.17%, SHFE silver fell 1.43%. As of 7:02 AM on April 17, overnight closing prices: Macro Front China: [Ministry of Finance and Ministry of Housing and Urban-Rural Development: Launching 2026 Central Fiscal Support for Urban Renewal Action] The General Office of the Ministry of Finance and the General Office of the Ministry of Housing and Urban-Rural Development issued a notice on launching the 2026 central fiscal support for urban renewal action. The notice stated that the Ministry of Finance and the Ministry of Housing and Urban-Rural Development will select, through competitive evaluation, certain cities with strong foundational conditions, high enthusiasm, and distinctive features, to integrate various resources at the city level, explore the establishment of guarantee mechanisms for funding, land use, finance, and other key factors, and form a coordinated effort. The central government will provide fixed-amount subsidies to selected cities. Selected cities will formulate urban renewal work plans, coordinate the use of central and local funds, significantly improve urban infrastructure levels, enhance the living environment in old districts, refine laws and regulations, planning standards, investment and financing mechanisms, and related supporting policies, and explore replicable and scalable mechanisms and models for urban renewal. In 2026, the scope of central fiscal support for urban renewal covers prefecture-level and above cities, with no more than 15 cities to be selected. [State Administration for Market Regulation: Dynamically Adjusting CCC Certification Catalog to Avoid Low-Price, Low-Quality Involution-Style Competition] The State Administration for Market Regulation (SAMR) deployed a nationwide special campaign to safeguard the bottom line of CCC certification, strengthening CCC certification supervision across the entire chain and in all dimensions to create a safe and reassuring consumer environment. Compulsory product certification, commonly known as CCC certification, is a conformity assessment system with market access nature established by the Chinese government in accordance with WTO rules and international practices. Products listed in the CCC certification catalog must obtain certification before they can be shipped, imported, or sold. This special campaign emphasized strictness. Comprehensive supervisory inspections will be conducted on designated certification bodies, focusing on key areas such as power banks, e-bikes, and gas-burning appliances, with effectiveness spot checks. The campaign will further advance the pilot reform of CCC certification marks, precisely crack down on fraudulent CCC certification marks, and strengthen product quality responsibility traceability. A SAMR official stated that, to further strengthen source governance of product quality and safety, the CCC certification catalog will be optimized with dynamic management, and research will be conducted to bring products involving industrial safety, public safety, and personal health safety under CCC certification management. In response to issues arising after some products in the CCC certification catalog adopted self-declaration evaluation, such as some enterprises failing to fulfill quality responsibilities and false commitments leading to declining product quality, SAMR has switched 16 product categories, including small-power motors and automotive safety glass, to third-party certification management. Certification and detection institutions are required to conduct cost accounting and charge reasonable fees based on publicly disclosed standards after accounting, to avoid low-price, low-quality involution-style competition. (CCTV News) [National Energy Administration Deploys Nationwide Special Campaign to Improve Power Supply Quality] Recently, the National Development and Reform Commission (NDRC) and the National Energy Administration issued a notice, organizing local government departments, power grid enterprises, user enterprises, industry associations, and other parties to work in coordination. Focusing on new requirements for power supply quality arising from the transformation and upgrading of traditional industries, the cultivation and expansion of emerging industries, and the forward-looking development of future industries, the campaign centers on addressing key issues such as voltage sags. Targeting full coverage of terminal monitoring for new quality productive forces-related enterprises sensitive to power quality, and significantly reducing the impact of voltage sags on key power supply lines on the production and operations of new quality productive forces-related enterprises, a series of specific measures were proposed. The special campaign for power supply quality improvement will be implemented over three years, with all tasks to be fully completed by the end of 2028, driving stronger power supply assurance capabilities for high-quality development of new quality productive forces, broader coverage, more effective support, and more efficient service response, striving to address the "lingering concerns" of new quality productive forces development and providing safer and more efficient energy and power support for high-quality economic and social development. (National Energy Administration) [Chinese Research Team Pioneers Green Extraction Technology for Critical Metals] A research team composed of Researcher Gao Jun and Professor Li Chaoxu from the Qingdao Institute of Bioenergy and Bioprocess Technology, Chinese Academy of Sciences, and the National Key Laboratory of Solar Energy Photoelectric Conversion and Utilization, together with Researcher Jiang Lei from the Technical Institute of Physics and Chemistry, Chinese Academy of Sciences, successfully developed a universal heavy metal ion membrane separation method inspired by biological calcium ion channels. This method can efficiently, greenly, and selectively extract uranium, copper, gold, and other heavy metal resources critical to new energy, and is expected to solve the long-standing challenges of high pollution, low efficiency, and high energy consumption in traditional heavy metal resource extraction technologies. (CCTV News) [Nanjing: Expanding Housing Provident Fund Cross-Regional Loan Coverage to All of Anhui Province] The Nanjing Housing Provident Fund Management Center issued a notice to optimize housing provident fund usage policies. It specified that the scope of housing provident fund cross-regional loans will be expanded to cover all of Anhui province. Building on the existing 17 cities in Jiangsu and Anhui provinces, the cross-regional loan coverage will be extended to all of Anhui province. Housing provident fund contributors in all 29 cities across Jiangsu and Anhui provinces can apply for housing provident fund loans from the Nanjing Housing Provident Fund Management Center when purchasing property in Nanjing. Nanjing housing provident fund contributors purchasing owner-occupied housing in any city in Anhui province can process housing provident fund purchase withdrawals and loan repayment withdrawals in accordance with Nanjing's relevant policies, without restrictions based on the contributor's workplace or household registration location. [Zhengzhou: Adjusting the Upper Age Limit for Housing Provident Fund Personal Housing Loan Borrowers] The Zhengzhou Housing Provident Fund Management Center issued a notice on adjusting the upper age limit for housing provident fund personal housing loan borrowers. After deliberation, it was decided to adjust the upper age limit. For employees with delayed retirement applying for housing provident fund personal housing loans, subject to a maximum loan term of no more than 30 years, the loan maturity age for males is extended from the original 65 to 68, and for females from the original 60 to 63. This notice takes effect from the date of issuance. Matters not covered herein shall be governed by existing policies, and where the state has other provisions, those provisions shall prevail. US Dollar: Overnight, the US dollar index rose 0.12% to 98.2. US Fed Governor Miran stated that, given the inflation situation that existed before the Middle East conflict, he may again lower his interest rate cut expectations for this year. Miran said: "If I were writing my dot on the dot plot now, I would lean toward 3 cuts, maybe 4. I haven't decided yet." In March, Miran projected four 25-basis-point interest rate cuts this year, but he indicated that the pace of cuts could slow down as price trends became "less favorable." Former US Treasury Secretary Paulson called on the US government to develop a contingency plan to prevent a potential collapse in demand for US Treasuries. He warned that such a scenario would have "extremely serious" consequences. Paulson said: "We need an emergency response plan that is targeted and short-term, prepared in advance, and ready to be activated once a tipping point is reached." Paulson noted that if the $31 trillion US Treasury market were to malfunction, it would be fundamentally different from the financial crisis he dealt with during his tenure two decades ago. "It was already bad then, but the government still had fiscal space to address the credit crisis. But if a US public debt crisis occurs, hitting a tipping point where the government tries to issue Treasuries but the US Fed is the only buyer, and Treasury prices fall while interest rates rise, that would be a very dangerous situation." For years, US budget experts have warned of a potential "doom loop": as government debt continues to expand, investors demand higher yields, driving up government interest expenses and further widening the fiscal deficit. In an extreme scenario, if the Treasury cannot raise enough funds to pay interest or principal, the market generally believes the US Fed would have to step in as an emergency buyer. Paulson said, "Once it happens, the shock will be very severe, so we must be prepared for this possibility." According to the CME FedWatch tool: the probability of a 25-basis-point rate hike by the US Fed in April was 0.5%, with a 99.5% probability of holding rates unchanged. The probability of a cumulative 25-basis-point rate cut by June was 1.4%, with a 98% probability of holding rates unchanged and a 0.5% probability of a cumulative 25-basis-point rate hike. (Jin10 Data) Additionally, on the data front, US initial jobless claims fell last week, indicating that labour market conditions remained stable, although employers remained cautious about hiring new workers as the Middle East conflict cast a shadow over the economy. The latest data showed that US initial jobless claims for the week ending April 11 fell by 11,000 to 207,000, below the market expectation of 215,000. Initial jobless claims this year have remained within the range of 201,000 to 230,000. While layoffs remained low, the oil price shock from the US-Israeli war against Iran may have hindered hiring. Economists noted that the labour market had already been in a state of stagnation before the war broke out, attributing it to the uncertainty brought by Trump's sweeping import tariffs and mass deportations. Economists said the Middle East conflict was just another layer of uncertainty for businesses. (Jin10 Data) Macro Front: Today, data including the eurozone February seasonally adjusted current account and the eurozone February seasonally adjusted trade balance will be released. Also worth watching: 2027 FOMC voter and San Francisco Fed President Daly will deliver a speech. Crude Oil: Overnight, both oil futures rose, with WTI up 1.72% and Brent up 3.46%. The market was concerned about whether renewed US-Iran peace negotiations could ease supply disruptions. The US launched an operation codenamed "Economic Fury" against Iran, imposing maximum economic pressure. The Iranian armed forces stated that Iran's military was fully prepared for defense. (Jin10 Data) US President Trump said he expected a deal with Iran to be announced soon, claiming the deal would bring the US "free oil" and "free passage through the Strait of Hormuz." When asked about the economy and oil prices, Trump said current oil prices were lower than previously expected. He said: "If you look at oil prices and what we're paying, it's about half of what people originally expected, provided you do what I had to do." He added: "I think the negotiations are going very well right now. If a deal is reached, it will be announced soon, and it will give us free oil and free passage through the Strait of Hormuz. Everything will be fine. I think oil prices will be even lower than before." (Jin10 Data) CITIC Securities pointed out that the US-Israel-Iran conflict has effectively created three fault lines: oil price shocks on the energy front, physical disruptions on the supply front, and leverage games on the geopolitical front. The market's pricing of oil price shocks largely reflects cost-side pressure transmitting downstream, but this framework follows the old logic of a closed economy. Under global exposure, as ex-China supply capability is impaired by cost-side shocks, Chinese enterprises may see medium and long-term opportunities for margin expansion. As the world shifts from "efficiency first" to "security first," recurring conflicts will inevitably pose ongoing challenges to supply chains. Following three medium and long-term themes—accelerated electrification, order diversion and substitution, and supply chain diplomacy—actively going long on the resilience of China's supply chain will be an important investment theme for global investors to hedge against fluctuations and navigate through cycles.

Vietnam is strengthening enforcement and environmental regulations in the lead recycling industry, introducing stricter technology standards that require cleaner, low-emission circular processes and tighter hazardous waste control under Circular 09/2026/TT-BNNMT. Authorities have also taken legal action against operators involved in serious pollution cases, including in Hưng Yên, while small-scale facilities in areas such as Đông Mai (Văn Lâm) are being required to relocate to industrial zones with centralized waste treatment systems.

Scientists at the University of Cambridge have developed a solar‑powered reactor that uses acid recovered from spent car batteries to break down hard‑to‑recycle plastics and produce clean hydrogen fuel and valuable chemicals. The novel “solar‑powered acid photoreforming” process could offer a cheaper, more sustainable way to tackle plastic pollution and generate renewable energy

The 2026 SMM (21st) Lead & Zinc Conference and Industry Expo opened grandly at Howard Johnson Agile Plaza in Chengdu, Sichuan during March 25–27 2026. Organized by SMM, the event brought together global enterprises, professional experts and industry peers from across the entire lead and zinc supply chain. Participants focused on industry hot topics, analyzed market trends and explored development strategies, establishing a highly efficient platform for communication and collaboration to support high-quality growth of the sector. To further strengthen the overseas delegation’s comprehensive understanding of China’s lead and zinc industrial chain and build closer connections between international industry peers and key producers in China, SMM led a high-level overseas delegation on a multi-day industrial tour starting on the afternoon of March 27. The delegation included representatives from global giants, such as Nyrstar, a top European lead and zinc smelting firm, Nexa Resources, a South American giant in lead-zinc mining and smelting, and Befesa, a pioneer in zinc recycling. During the tour, the delegation visited 8 Chinese enterprises. including: COSCO Shipping Sichuan Chengtun Zinc & Germanium Technology Sichuan Kunshun Zinc Industry Yunnan Luoping Zinc & Electricity Hongzhou Hongqian Nonferrous Chemical Yunnan Zhenxing Industrial Group Mengzi Mining & Metallurgy Danxia Smelter of Shenzhen Zhongjin Lingnan Nonfemet The delegation members went deep into production sites, held in-depth discussions and exchanges, and gained a full picture of China’s lead and zinc industry in terms of production operations, technological innovation, capacity scale and market layout, greatly enhancing their insight into and understanding of the entire industrial chain. SMM has systematically compiled detailed information of all enterprises that were visited during this tour, with details below: COSCO Shipping On the afternoon of March 27, the delegation visited COSCO Shipping for an exchange, where they received a warm welcome from the company's leadership. Both sides engaged in discussions on topics such as equipment transportation and technological upgrades. Sichuan COSCO Shipping Logistics Supply Chain Management Co., Ltd. is a wholly-owned subsidiary of COSCO Shipping Logistics Supply Chain Co., Ltd., registered and established in Chengdu, Sichuan Province, with an investment of 30 million yuan. COSCO Shipping Logistics Supply Chain Co., Ltd. is affiliated with China COSCO Shipping Corporation Limited and serves as a core member of the "shipping, ports, and logistics" segment of COSCO Shipping Group, as well as an important component of its global digital supply chain system. The company operates warehouse space exceeding 6 million m², including 19 futures delivery warehouses. China COSCO Shipping Corporation Limited is a globally leading shipping enterprise group, with a combined fleet capacity of 130 million DWT across 1,535 vessels, ranking first in the world. Sichuan COSCO Shipping Logistics Supply Chain Management Co., Ltd. holds business qualifications and an operational scope covering multiple transportation modes including sea, land, air, and rail, providing comprehensive logistics services spanning both international and Chinese markets. Since entering the non-ferrous metals delivery warehouse business in 2016, the company has adhered to the principle of "client-centered and market-oriented," continuously enhancing its service capabilities and achieving steady business growth. Currently, at key logistics periods such as Shanghai Baoshan, Shanghai Yangshan, and Yixing in Jiangsu, the company successfully operates delivery warehouses designated by the Shanghai Futures Exchange for copper, nickel, zinc, and other products. It has become one of the three major non-ferrous metals warehouses of SHFE and was honored with the title of "Top Ten Designated Non-Ferrous Metals Delivery Warehouses" by the Shanghai Futures Exchange for two consecutive years. Sichuan Chengtun Zinc & Germanium Technology Co., Ltd. On March 28, the delegation visited Sichuan Chengtun Zinc & Germanium Technology Co., Ltd. (Shimian City). Both sides engaged in in-depth exchanges on the development of the zinc smelting industry, with a focus on thorough discussions regarding product processing, production techniques, capacity scale, market trends, and the current challenges facing the industry. Sichuan Chengtun Zinc & Germanium Technology Co., Ltd. was established on December 6, 2015, with a registered capital of 1.6 billion yuan. The company has an annual capacity of 300,000 mt of electrolytic zinc, 150,000 mt of sulphuric acid, 400,000 mt of electrolytic zinc waste residue processing, and 40 mt of high-purity germanium dioxide. On January 16, 2019, the company was approved by the China Securities Regulatory Commission and merged into the publicly listed firm Chengtun Mining Group Co., Ltd. The company's main business includes smelting and R&D of zinc-germanium series products, as well as comprehensive recovery of multiple metals. It has formed a complete industry chain from zinc concentrates entering the plant to finished products leaving the plant. Its production lines include zinc calcine, electrolytic zinc, electrolytic zinc waste residue processing, and comprehensive recovery of rare and precious metals. Sichuan Kunshun Zinc Industry Co., Ltd. (Shimian City) On March 28, the delegation headed to Sichuan Kunshun Zinc Industry Co., Ltd. (Shimian City) for a visit and exchange, where they received a warm reception from the enterprise. Both parties held in-depth discussions and exchanges on zinc smelting, covering topics such as production costs, production and market landscape, raw material procurement and processing, industry chain competitive advantages, and distinctive process technologies. Sichuan Kunshun Zinc Industry Co., Ltd. is a specialized and green environmental protection enterprise jointly invested and established by Sichuan Metallurgical Holding Group Co., Ltd. and Shimian Dongshun Zinc Industry Co., Ltd. to implement the national green production philosophy, actively develop the circular economy, and promote the comprehensive utilization of solid waste resources. It integrates solid waste treatment, recycling, and resource regeneration. The company primarily uses high-tech methods to carry out clean utilization and harmless treatment of heavy metal-containing waste generated by industries such as metallurgy and chemicals, eliminating the environmental impact of heavy metal solid waste at the source. The company was established in 2021 and is located in Zhuma Industrial Park, Shimian County, Ya'an City, Sichuan Province, covering an area of 65 mu with a total investment of 180 million yuan. The company has built a 3.5m × 50m Waelz rotary kiln production line, equipped with advanced and well-established low-grade zinc oxide production technology, achieving a resource recovery utilization rate of over 95% and effectively managing waste gas, noise, solid waste, and groundwater risks. It is also equipped with supporting facilities including desulphurization, denitrification, and flue gas defogging towers, as well as a wastewater treatment station, raw material warehouse, raw material pre-washing workshop, water slag processing workshop, biomass semi-gasification furnace, zinc crystallized salt workshop, production safety and environmental protection center, and laboratory for detection and testing. The company holds qualifications for treating hazardous waste categories including HW12, HW17, HW23, HW48, and HW49, with an annual capacity to process 100,000 mt of zinc-containing waste. Its main products include low-grade zinc oxide and zinc crystallized salt. The company has always upheld the green and environmentally friendly development philosophy, adhering to the fundamentals of "being responsible for the environment, for clients, and for employees," guided by technological innovation, and targeting the "reduction, recycling, and detoxification" of solid waste pollution prevention and control. The company is committed to building a modern "solid waste" management and disposal service provider, actively carrying out emergency environmental protection disposal, proactively assuming social service functions, and making positive contributions to promoting the circular economy development in Sichuan and strengthening the ecological civilization construction of lucid waters and lush mountains! Yunnan Luoping Zinc & Electricity Co., Ltd. (Qujing City) On March 30, the delegation visited Yunnan Luoping Zinc & Electricity Co., Ltd. (Qujing City) for exchanges. During the meeting, both sides conducted in-depth discussions on key topics including magnesium removal process optimization, production management organization, and raw material substitution plans, and put forward constructive suggestions on improving the plant environment. Yunnan Luoping Zinc & Electricity Co., Ltd. was established to fully leverage Luoping's local hydropower and lead-zinc mineral resource advantages. In accordance with the "ore, electricity, and smelting integration" development strategy proposed by the Luoping County Party Committee and County Government, and the overall requirements of the Municipal Party Committee and Municipal Government for the reform of industrial enterprises across the city, the company was registered and established at the Yunnan Provincial Administration for Industry and Commerce on December 21, 2000. It was listed on the Shenzhen Stock Exchange A-share market in 2007 and is a state-controlled enterprise under Luoping County. The company's assets are an optimized combination of three components: hydropower, lead-zinc mines, and zinc smelting. In terms of company assets, they are primarily composed of three advantageous resources of Luoping: mineral, hydropower, and zinc smelting. These mainly include six production units: Luoping County Fule Lead-Zinc Mine with an annual processing capacity of 100,000 mt of raw ore, Lazhuang Power Plant with annual power generation of 250 million kWh (installed capacity of 60,000 kW), a zinc smelter with an annual output of 120,000 mt of electrolytic zinc, a zinc powder plant with an annual output of 12,000 mt of ultra-fine zinc powder, a comprehensive utilization plant with an annual processing capacity of 129,500 mt of zinc slag, and a sulphuric acid plant with an annual output of 140,000 mt of sulphuric acid, achieving a total annual industrial output value exceeding 2 billion yuan. The company has six wholly-owned subsidiaries. The company's main businesses include hydropower generation, mining of lead, zinc, and other non-ferrous metals, as well as the production and sales of zinc smelting and its extended products. It is currently the only publicly listed firm in China's zinc smelting industry that integrates mining, power generation, chemical processing, and smelting. Its products include zinc sulphide concentrates, lead concentrates, zinc ingots, industrial sulphuric acid, ultra-fine zinc powder, cadmium, germanium concentrates, silver concentrates, copper concentrates, zinc alloys, industrial and residential electricity, edible oils and fats, among others. Its main product, "Jiulong" brand zinc ingots, is popular in non-ferrous product markets in and outside China thanks to its superior product quality and corporate reputation. Honghe Prefecture Hongqian Non-ferrous Chemical Joint-Stock Co., Ltd. On March 31, the delegation visited Honghe Prefecture Hongqian Non-ferrous Chemical Joint-Stock Co., Ltd. for exchanges. The two sides held in-depth discussions on topics including the economic benefits of smelting by-products, energy utilization efficiency, the current status of enterprise development, and future cooperation intentions. Honghe Prefecture Hongqian Non-ferrous Chemical Joint-Stock Co., Ltd. was established on August 1, 2007, with a registered capital of 50 million yuan. The total investment in project construction was 475.5543 million yuan. The company currently has over 600 employees and covers an area of 443 mu. The plant is located in the Heishenmiaobo Industrial Zone, situated in the central area of the Gejiu-Kaiyuan-Mengzi urban cluster. The company is a new-type joint-stock enterprise centered on crude lead smelting, integrating sulphur dioxide acid production, waste heat power generation, lead electrolysis, and recovery of precious and rare metals such as gold, silver, antimony, and bismuth, with further extension into deep processing of lead-series products including red lead, massicot, electrode plates, and storage batteries. It is a benchmark enterprise among private lead smelters in the city, featuring a relatively large scale, advanced technology, compliance with environmental protection standards, comprehensive utilization of resources, and a complete industry chain. The company pioneered the application of new technologies to upgrade and transform the traditional crude lead smelting model among private enterprises in the city. The company has formulated the working philosophy of "prioritizing environmental protection, ensuring safety, attracting talent, enforcing strict management, and enhancing efficiency," and continues to drive high-quality development. In April 2007, the company commissioned China ENFI Engineering Technology Co., Ltd. to conduct a feasibility study on the lead smelting technological transformation project, and determined a comprehensive industrial facility technological transformation project with a total investment of 490 million yuan and an annual capacity of 60,000 mt of crude lead. On December 21, 2009, the "Demonstration Project of Oxygen-Enriched Bottom-Blowing Lead Smelting Technology with Annual Output of 60,000 mt of Crude Lead" was designated by the Provincial Department of Science and Technology as a 2009 Yunnan Provincial Science and Technology Innovation Project. In 2010, it was further designated as a key industrial project by the provincial, prefectural, and municipal governments. On November 14, 2011, the company obtained ISO9001:2008 quality management system certification. On March 7, 2012, "HSPb99.94PCT" was successfully registered on the London Metal Exchange. In 2019, the company successively passed the safety completion acceptance and environmental impact assessment completion acceptance, fully achieving compliant operations and sustainable development. Yunnan Zhenxing Industrial Group Co., Ltd. On March 31, the delegation headed to Yunnan Zhenxing Industrial Group Co., Ltd. for a visit and exchange. Both parties conducted in-depth discussions on topics including Yunnan Province's mineral resource endowment, smelting industry development trends, corporate business strategies, and technological innovation applications, jointly assessing the current status and prospects of the industry and analyzing the challenges and opportunities ahead. Yunnan Zhenxing Industrial Group Co., Ltd. (hereinafter referred to as "the Group") was founded in 1996 and is located in the Chongposhao New Materials Industrial Park, Shadian Sub-district Office, Gejiu City. The Group currently has 7 subsidiaries, 2 holding companies, and 1 equity-participation company, with approximately 3,000 employees. Its capacity reaches annual output of crude lead (100,000 mt), electrolytic lead (60,000 mt), zinc ingot (20,000 mt), lead-acid battery plates (9 million sets), lead-acid batteries (6 million units), superphosphate (350,000 mt), sulphuric acid (200,000 mt), and monoammonium phosphate (MAP) (60,000 mt). The Group has established five major production sites and five major product brands covering crude lead raw material, lead-zinc smelting, power supply manufacturing, fertilizer and chemical production, and resource recovery. It has formed an internal industrial cycle spanning lead ore mining—lead-zinc smelting—lead-based alloy melting—battery manufacturing—waste battery recycling—precious metals production, making it one of the few private non-ferrous enterprises in China with a complete lead industry chain. Since 2013, the Group has been consecutively recognized as one of the Top 100 Non-Public Enterprises in Yunnan Province. In 2025, it ranked 41st among the "Top 100 Non-Public Enterprises in Yunnan Province" and was selected for the first time into the "Top 20 Private Enterprises in Innovation Capability," ranking 7th. Yunnan Shadian Lead Industry Co., Ltd., a subsidiary controlled by the Group, ranked 71st. The Group has received nearly 100 honors at various levels, including "High-tech Enterprise," "Outstanding Private Technology Enterprise," "Enterprise with Harmonious Labor Relations," "Provincial Model Collective for Ethnic Unity and Progress," and "Key Enterprise for Industrial Development in Honghe Prefecture" in Yunnan Province. The Group's Yunsha brand lead ingot was successfully registered on the London Metal Exchange in 2007 and on the Shanghai Futures Exchange in 2020. In 2021, the Group was rated AAA in enterprise credit rating in the national non-ferrous metals industry. In August 2024, it was designated as a "Qiangyuan Zhuqi" Industry-Finance Service Base by the Shanghai Futures Exchange. Looking ahead, the Group will pursue the philosophy of "seeking survival, pursuing development, and accelerating enterprise transformation and upgrading," adhering to the working approach of "rooting in Honghe, basing in Yunnan, radiating to surrounding regions, and expanding across China." It will thoroughly implement strategies of enterprise management transformation, technology-driven development, talent empowerment, and sustainable development, striving to achieve significant increases in capacity and production of major products by 2035, with gross industrial output value up YoY, and to build itself into a 10 billion green lead-zinc comprehensive recycling technology enterprise. Mengzi Mining and Metallurgy Co., Ltd. On March 31, SMM and the field trip delegation headed to Mengzi Mining and Metallurgy Co., Ltd. for a visit and exchange. Both parties engaged in in-depth discussions on the entire zinc smelting process, covering topics including production technology, raw material supply, product sales, environmental protection governance, and future development plans, aiming to share experience, address industry pain points, and jointly clarify the direction of development. Mengzi Mining and Metallurgy Co., Ltd. was established in 1996. It is a resource-based mining and metallurgy enterprise integrating R&D, exploration, mining, mineral processing, smelting, and trading, with a focus on comprehensive utilization of resources. The company is one of the few comprehensive private enterprises in the non-ferrous metal industry that possesses an entire industry chain and operates independent trading and supply chain business platforms. It is among the top 100 enterprises in Yunnan Province and a key enterprise in Honghe Prefecture. Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. — Danxia Smelter On April 2, the SMM delegation visited Zhongjin Lingnan's Danxia Smelter for a survey and field trip to the core plant area. In-depth discussions were held on production operations, technological R&D, and raw material procurement, covering key topics such as production capacity, technical cooperation, and raw material procurement strategies. Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. (hereinafter referred to as "Zhongjin Lingnan") was established in September 1984 and listed on the Shenzhen Stock Exchange in January 1997 (stock code: 000060). It is an internationalized entire industry chain resource company primarily engaged in lead, zinc, and copper mining, mineral processing, and smelting, as well as comprehensive recovery of rare, scattered, and precious metals. It is a publicly listed firm controlled by Guangsheng Holdings Group, a key wholly state-owned enterprise under Guangdong Province. Zhongjin Lingnan's business covers segments including mines, smelting, new materials, and supply chains. It has 23 directly affiliated enterprises, wholly-owned and controlled subsidiaries. Major operating entities include Fankou Lead-Zinc Mine, Shaoguan Smelter, Danxia Smelter, Zhongjin Copper Co., Guangxi Mining Co., Perilya Limited in Australia, Zhongjin Technology Co., and Huajiari Co. The company has an annual output of 300,000 mt of lead and zinc metal content in concentrates, 450,000 mt of smelted lead and zinc products, 450,000 mt of copper cathode, 21,000 mt of aluminum extrusion, 20,000 mt of battery zinc powder, and 5,400 mt of composite metal materials. Among these, its battery zinc powder ranked first in Chinese market share, nickel-metal hydride and nickel-cadmium battery electrode sheets & plates materials ranked first in Chinese market share, and thermal bimetal ranked first in Chinese market share. The 2026 field trip brought together some global lead and zinc industry leaders for an inspiring and highly productive journey across China’s leading smelters and enterprises. The warm welcome, operational excellence, and innovative technologies on display made this event a resounding success — and we extend our deepest gratitude to all the companies and participants who made it happen. Looking ahead – Save the date for 2027: We are excited to announce that the 2027 SMM (22nd) Lead & Zinc Conference and Industry EXPO will take place from March 17–19, 2027 in Kunming, Yunnan, China . This premier event will once again bring together the global lead-zinc community for high-level networking, insight sharing, and industrial exploration. Interactive call – We want to hear from you: As we plan the field trip for the 2027 conference, we’d love your input. Which smelters or companies would you most like to visit for technical exchange and on-site learning? Please share your suggestions in the comments below — your feedback will help shape the 2027 experience. Let us know where the industry should go next!

The Thai Ministry of Industry recently intercepted 714 illegal waste containers at Laem Chabang Port and initiated repatriation procedures, while simultaneously shutting down over 100 non-compliant and high-pollution dismantling plants in Q1 2026. Since the global supply chain restructuring in 2025, Thailand has emerged as a critical hub with an annual copper scrap export volume of 332,000 physical tonnes. Should Thailand’s environmental oversight remain under high-pressure, the market widely expects the Asian copper scrap supply side to face increasing tightness.

A U.S. startup called Valor is developing electrochemical liquid extraction technology to recover copper and other metals from ores and electronic waste. The process aims to reduce energy use and pollution compared with conventional smelting. The company plans to build its first commercial facility in Houston.