SMM August 21 News: This week, Pr-Nd alloy prices first declined and then rebounded. At the beginning of the week, prices continued to be in the doldrums, before stopping falling and rebounding toward the weekend. As of 17:00 Friday, Pr-Nd alloy was reported at 880,000 yuan/mt, up 10,000 yuan/mt from Thursday afternoon, flat compared with Friday morning. Today, Pr-Nd alloy stopped falling and followed the upward trend driven by the sharp raise in Pr-Nd oxide prices. This was mainly due to a large enterprise's procurement of Pr-Nd oxide yesterday, which quickly tightened low-priced supply on the market. Suppliers successively raised their quotes, and alloy enterprises followed suit with upward adjustments under the support of oxide costs, making low-priced materials hard to find. However, inquiry activity in the afternoon declined from yesterday, and downstream magnetic material enterprises were cautious in procurement, with limited actual transactions following up. Reviewing the weekly trend, Pr-Nd alloy prices this week showed a pattern of "first declining then rebounding": prices moved steadily at the start of the week, then weakened slightly from Tuesday as Pr-Nd oxide prices pulled back, hitting the week's low of 870,000 yuan/mt on Thursday. Toward the weekend, driven by the large enterprise's procurement of Pr-Nd oxide, prices rebounded strongly on Friday, rising 10,000 yuan/mt in a single day. As of 17:00 Friday, Pr-Nd alloy closed at 880,000 yuan/mt, up 5,000 yuan/mt from last Friday (875,000 yuan/mt), a WoW increase of 0.57%, halting the previous several weeks of decline and turning losses into gains. From the cost side, the cash cost of Pr-Nd alloy this week fell about 1,655 yuan/mt WoW, a decrease of about 0.19%, as cost pressure continued to ease; calculated based on Friday's closing price, the net profit per mt was about 6,700 yuan/mt, significantly expanded from last week, and profitability continued to improve. During the week, downstream magnetic material enterprises remained cautious in inquiries and procurement, with sluggish market trading activity. In mid-week, raw material prices were in the doldrums; some traders sold at low prices, and although alloy enterprises lowered their quotes accordingly, they were determined to hold prices firm, which narrowed the actual declines. Toward the weekend, raw material prices stopped falling and rebounded; alloy enterprises raised quotes accordingly, low-priced materials were hard to find, and trading activity recovered somewhat. In the short term, on the demand side, the "high-temperature holidays" of end-user motor enterprises are gradually ending, and with the approach of the traditional September-October peak season, top magnetic material enterprises have favorable expectations for order production schedules. The market holds strong expectations for downstream restocking and stockpiling. However, it remains to be seen whether the peak season demand expectations will be realized, as well as the release pace of new capacity for Pr-Nd oxide on the cost side. Pr-Nd alloy prices are expected to drift higher in a range sideways.

SMM August 21, 2026 — China's praseodymium-neodymium (NdPr) oxide market followed a "weakened first, recovered later" pattern this week (August 17-21). From Monday to Thursday, spot prices drifted lower under pressure from volatile futures and cautious downstream purchasing, with the average price easing from around CNY 722,000/mt (about 107,400/mt) to roughly CNY 718,000/mt (106,800/mt). On Friday, major producers re-entered the market to buy, sentiment improved markedly and holders raised offers across the board, lifting the average price to CNY 726,500/mt (about $108,100/mt) — a sharp one-day rebound. (Exchange rate: 1 USD = 6.72 CNY, August 21, 2026) 1. Weekly market review NdPr oxide prices fell early in the week before rebounding on Friday. On Monday, the market opened stable: the quoted range held at CNY 720,000-724,000/mt (107,100-107,700/mt), flat with the previous Friday, though trading was thin. On Tuesday, futures volatility dragged spot offers down after midday and the market broke below the CNY 720,000/mt threshold, with the average easing to CNY 718,000/mt. Wednesday saw a stable but weak session at CNY 718,000-720,000/mt. On Thursday, prices continued to edge lower, hitting a weekly low of CNY 718,500/mt on average, with the range narrowing to CNY 717,000-720,000/mt. On Friday, major buyers' entry into the market quickly absorbed low-priced cargo, holders raised offers across the board and the average price jumped to CNY 726,500/mt, in a range of CNY 725,000-728,000/mt (107,900-108,300/mt) — a single-day gain of about CNY 8,000/mt (+1.1%) that largely recouped the week's losses. 2. Key drivers 1. Futures volatility remains the main transmission channel for spot sentiment. From the start of the week through midweek, fluctuations in NdPr oxide futures repeatedly shaped spot sentiment; Tuesday's afternoon pullback in the futures market directly dragged spot offers lower and turned the mood bearish. On Friday, news of major buyers' procurement pushed futures up and spot followed. Futures-spot linkage was the dominant price driver this week. 2. Cautious downstream buying met with traders' low-price sales. From Monday to Thursday, metal producers showed little appetite to purchase, inquiries were scarce and trading remained subdued, while some traders kept selling at low prices and capped any rebound. Once low-priced cargo tightened on Friday, holders' willingness to sell cheap fell sharply. 3. Major buyers' procurement was the turning point. On Friday, large producers entered the market for NdPr oxide, inquiries picked up notably, holders raised offers and low-priced cargo became hard to find — the direct catalyst behind the market's shift from weak to firm. 4. Upstream and downstream diverged. Rare earth ore circulation remained sluggish overall and ore prices kept easing, while the oxide segment stabilized and recovered on support from major buyers. Demand from magnet material makers was mixed through the week — "clearly improving" feedback on Monday faded thereafter, and by Friday buyers turned cautious again — suggesting downstream transmission is not yet solid. 3. Outlook In the near term, major buyers' procurement provides solid support for NdPr oxide prices: low-priced cargo has tightened, holders are quoting firmly, and the price center is likely to hold above CNY 725,000/mt. Two risks need watching, however. First, inquiry activity had already cooled by Friday afternoon, magnet makers remained cautious and actual transaction follow-through was limited. Second, futures volatility could return — if futures pull back, spot prices face downside risk again. Key factors to track: whether major buyers sustain their purchasing, the durability of the recovery in magnet material orders, and the direction of NdPr oxide futures. Until demand forms a clear uptrend, prices are expected to remain range-bound with a modestly firmer bias.

[SMM Analysis: July Imports Fell to a Year-to-Date Low; High-Grade NPI Cargoes May Be Delayed in Arrivals] According to customs data, China’s high-grade NPI imports in July 2026 extended the downward trend, falling for the third consecutive month and hitting a year-to-date low.

Ferrochrome Price Review Ferrochrome prices saw no adjustments this week. As of August 21, 2026: Inner Mongolia high‑carbon ferrochrome is RMB 7,850‑8,000 /50‑metric‑ton base unit; Sichuan and Northwest China high‑carbon ferrochrome is RMB 7,950‑8,050 /50‑metric‑ton base unit; East China high‑carbon ferrochrome is RMB 8,300‑8,400 /50‑metric‑ton base unit; Kazakh high‑carbon ferrochrome is RMB 9,200‑9,300 /50‑metric‑ton base unit; The high‑carbon ferrochrome steel tender expectation index registered RMB 8,030.23 /50‑metric‑ton base unit, with mainstream market expectations pointing to flat or modestly lower prices. Demand Side The downstream stainless steel market trended weakly this week. Futures slipped, and spot prices followed suit. Although the traditional peak consumption season of “Golden September & Silver October” is approaching, market confidence remains subdued. Steel mills show low willingness for pre‑stockbuilding, and there has been no material recovery in inquiries and procurement for ferrochrome. Most market participants take a wait‑and‑see approach and will formulate plans after major steel mills release tender prices next month. Supply Side Domestic ferrochrome production presents widening north‑south divergence. Smelters in southern regions such as Guangxi and Guizhou have cut output amid cost‑margin inversion, dragging down regional ferrochrome output. Inner Mongolia in the north maintains stable operation with output staying at high levels, and overall ferrochrome supply remains ample. On the import front, insufficient production resumption in South Africa and high costs in Zimbabwe keep imports low, exerting little near‑term market impact. Overall, supply surplus is the core theme, and ferrochrome prices are expected to run soft in the short term. Chrome Ore Price Review As of August 21, 2026, Tianjin Port quotations: South African 40‑42% chrome concentrate ore at RMB 53.5‑54.5 /dmtu; Zimbabwean 48‑50% chrome concentrate ore at RMB 58.5‑60 /dmtu; Turkish 40‑42% chrome lumpy ore at RMB 70‑71 /dmtu, flat week‑on‑week. Overseas offers: South African 40‑42% chrome concentrate ore at USD 285 /ton, flat week‑on‑week; Zimbabwean 48‑50% chrome concentrate ore at USD 365‑375 /ton, up USD 5 week‑on‑week; Turkish 40‑42% chrome lumpy ore at USD 340‑350 /ton, up USD 10 week‑on‑week. Supply Side Chrome ore port inventories fluctuate around the extremely high level of 5 million tonnes, keeping supply loose. South African chrome ore fines are sufficiently available. Major overseas mines have kept offers unchanged for two consecutive rounds, underpinning price floors while capping the upside for chrome ore prices. Supply of mainstream‑origin chrome ore and high‑grade chrome ore concentrates is tight. Rising ocean freight rates push up transportation costs; forward prices from overseas mines remain firm, increasing cost pressure for traders and reinforcing their price‑holding sentiment. Supported by the above factors, spot quotations remained stable this week amid stalemated bargaining between buyers and sellers, with limited physical concluded trades. Demand Side Entering a new round of steel tender bidding cycle, wait‑and‑see sentiment prevails across the market. Ferrochrome smelters stay prudent and avoid long‑term stockbuilding. In addition, ferrochrome supply surplus weighs on ferrochrome prices. Smelters are under heavy production‑cost pressure and inventory‑liquidation pressure, showing limited willingness to purchase raw‑material chrome ore, and no large‑scale bulk buying has taken place. Only sporadic small‑volume deals were closed this week, preventing sharp price swings.

Grain-Oriented Silicon Steel Price Dynamics Shanghai B23R085 Grade: 11,900-11,900 yuan/mt Wuhan 23RK085 Grade: 11,300-11,300 yuan/mt This week, China's grain-oriented silicon steel market was in the doldrums. Prices in mainstream markets in Shanghai and Wuhan remained stable, with no public price adjustment operations, and overall transaction performance was average. Supply side, production schedules of mainstream steel mills remained stable. After the August EXW base price of grain-oriented silicon steel was raised by 50 yuan/mt, mainstream steel mills such as Baosteel and Shougang Group have released September futures price policies, with the base price of grain-oriented silicon steel raised by another 50 yuan/mt, marking two consecutive months of EXW price increases (Sina Finance). Raw material costs combined with the September price hike policies further strengthened cost bottom support, and steel mills' willingness to hold prices firm was strong, providing strong support for spot market prices. However, the current period is the traditional off-season for demand, and the positive impact of steel mills' price increases is blocked from being transmitted downstream, with spot prices lacking momentum to follow up and being unable to drive spot prices to rise. Demand side, under high-temperature weather, the transformer industry enters a traditional off-season, and the pace of power grid tender projects landing is relatively slow. End-user transformer enterprises adopt conservative procurement strategies, mostly maintaining only essential scattered replenishment, with insufficient willingness for active batch stockpiling. Market communication atmosphere is sluggish, and industry participants are generally cautious. Overall, supply and demand continue to compete. Two consecutive rounds of EXW price increases by steel mills in August and September, combined with raw material costs, effectively limit the room for deep price declines. However, there is no clear signal of demand recovery in the short term. It is expected that grain-oriented silicon steel will remain stable next week, continuing the pattern of in-the-doldrums consolidation, with market transactions still dominated by essential demand. The market will continue to monitor the progress of power grid tender fulfillment, downstream transformer enterprise production schedules, and fluctuations in raw material costs. Data Source Statement: (Except for publicly available information, all other data in this report are derived from public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, NBS data, customs import/export data, various data released by major associations and institutions, etc.), market communication, and relying on SMM's internal database models, comprehensively analyzed and reasonably inferred by the research team. This report is for reference only and does not constitute decision-making advice. SMM reserves the right of final interpretation of this statement and reserves the right to adjust and modify the content of the statement based on actual circumstances.

[SMM Analysis: July Copper Foil Imports and Exports Both Down MoM but Still High Growth YoY] According to data from the General Administration of Customs, China's copper foil (HS codes: 74101100, 74102190) imports in July 2026 were 7,908.95 mt, up 22.2% YoY and down 7.06% MoM; cumulative imports from January to July 2026 were 53,039.26 mt, up 13.64% YoY......

SMM August 21 news: This week, the rebound in lead prices drove a marginal recovery of losses for secondary lead. As of August 21, the comprehensive profit/loss of SMM large-scale secondary lead enterprises was -263 yuan/mt, and that of small and medium-scale enterprises was -443 yuan/mt. Tight supply of scrap batteries pushed up raw material costs, limiting profit recovery. Downstream has not seen a substantial peak season, with just-in-time procurement as the main method. Primary lead diverted demand, resulting in mediocre performance in spot transactions. Looking ahead to next week, lead prices are expected to consolidate at highs. If scrap battery prices follow the rise, coupled with downstream still maintaining large discounts and just-in-time procurement of secondary refined lead spot orders, SMM believes that the expectation for further narrowing of the loss range for secondary lead smelters is limited.

SMM August 21 News: This week, the scrap battery market remained stable overall, with a few smelters slightly raising their purchase quotations by 20-100 yuan/mt, mainly for EV batteries; the tight supply of scrap batteries persisted throughout the week without improvement. As the traditional "September-October peak season" approaches, the sentiment of major store operators to hold back from selling gradually intensified, with available cargo being scarce. Both recyclers and smelters reported that daily average purchase volume dropped by about 20-30% recently, and recyclers generally maintained a fast-in fast-out purchasing and sales model. On the smelter side, raw material arrivals were generally stable but showed regional divergence, with areas offering higher purchase prices seeing relatively better arrivals. As lead prices stabilized and rose, losses at secondary lead smelters narrowed, and operating rates rebounded; however, lingering losses limited the upside room for scrap battery purchase prices. Downstream lead-acid battery consumption improved somewhat but remained dominated by just-in-time procurement. Overall, scrap battery prices moved sideways this week under the influence of secondary lead losses and tight supply. Next week, scrap battery prices are expected to continue moving sideways, with focus on the extent of demand realization during the traditional "September-October peak season," the release of store supply, and the progress of the rebound in secondary lead smelter operating rates.

The average price of SMM 10-12% high-grade NPI fell by 5.6 yuan/nickel unit WoW to 1,127.4 yuan/nickel unit (ex-factory, tax included), while the average price of the Indonesia NPI FOB index dropped by 0.61 $/nickel unit WoW to 145.91 $/nickel unit. This week, overall trading in the spot market for high-grade NPI remained mediocre, with insufficient market activity and the market continuing to operate under pressure in a deadlock.

As of this Friday, the north China market SiMn 6517 (cash) was 5,700-5,750 yuan/mt, flat WoW from last Friday; the south China market SiMn 6517 (cash) was 5,750-5,800 yuan/mt, flat WoW from last Friday; the south China market SiMn 6014 (cash) was 5,350-5,450 yuan/mt, flat WoW from last Friday. Recently, SiMn futures have consolidated on a strong note and drifted higher, with the pessimistic sentiment fading somewhat while wait-and-see sentiment still dominates.