[SMM Tin Midday Review: Newly Appointed Fed Chairman Reaffirmed Inflation Bottom Line Upon Taking Office, the Most-Traded SHFE Tin Contract Opened Higher Then Pulled Back]

SMM, May 22: Cobalt product prices showed mixed performance this week. Refined cobalt spot prices rose by 2,000 yuan/mt over the week, with downstream buyers still purchasing as needed. Cobalt salt performance was relatively weak, with cobalt sulphate, cobalt chloride, and Co3O4 spot prices all recording varying degrees of decline. The overall market performance was sluggish, still awaiting feedback from subsequent downstream production schedules... SMM compiled the price fluctuations of cobalt products this week, as follows: : According to SMM spot prices, refined cobalt spot prices fluctuated upward this week. As of May 22, refined cobalt spot prices rose to 424,000-430,000 yuan/mt, with an average price of 427,000 yuan/mt, up 2,000 yuan/mt from May 15, a gain of 0.47%. Fundamentals: Supply side, mainstream smelters maintained stable quotes this week, with trader spot-futures price spreads stable at parity to a premium of 8,000-10,000 yuan/mt. Demand side, downstream alloy and magnetic material enterprises continued purchasing as needed, maintaining control over raw material inventory levels. The metal price spread between refined cobalt and low-priced cobalt salts remained at a low level, and cobalt salts were difficult to sell, making enterprises reluctant to re-dissolve cobalt salts to produce refined cobalt. The market is likely to continue its volatile pattern in the short term, and price rises still depend on effective support from cobalt salt prices. Cobalt salts ( and ): : According to SMM spot prices, cobalt sulphate spot prices continued to edge down this week. As of May 22, cobalt sulphate spot prices fell to 92,000-95,000 yuan/mt, with an average price of 93,500 yuan/mt, down 1,000 yuan/mt from 94,500 yuan/mt on May 15, a decline of 1.06%. According to SMM, on the supply side of cobalt sulphate this week, mainstream brand price centers shifted down to 92,000-95,000 yuan/mt; some smelters and traders, under capital turnover pressure, again made concessions on shipments, with low-priced sources dropping to 88,000-89,000 yuan/mt. Demand side, downstream enterprises still primarily consumed earlier inventory, with weak procurement enthusiasm, only making small just-in-time procurement for restocking. Some downstream sources reported that LCO production schedules fell short of expectations, and they maintained a wait-and-see stance before orders were confirmed. Cobalt sulphate prices are likely to continue fluctuating in the short term, with subsequent recovery still dependent on the release of downstream restocking demand. : According to SMM spot prices, cobalt chloride spot prices also declined this week. As of May 22, cobalt chloride spot prices fell to 112,000-115,500 yuan/mt, with an average price of 113,750 yuan/mt, down 1,750 yuan/mt from 115,500 yuan/mt on May 15, a decline of 1.52%. From the spot market perspective, according to SMM, cobalt chloride market transactions were mediocre this week. Supply side, top-tier players continued to hold prices firm, refusing to sell at low prices, providing strong support for cobalt chloride prices; while small and medium-sized producers, constrained by capital recovery and performance pressure, proactively lowered quotes, but even with price cuts, transactions were difficult to conclude, leading to continued price declines. Demand side, downstream enterprises, affected by weak demand and inventory accumulation, maintained persistently low purchase willingness. SMM believes that current cobalt chloride prices already have strong support, with limited possibility of further decline, and holds an optimistic view on the market outlook. From a cost perspective, prices are expected to rebound subsequently, but upside room is limited, with the estimated period around June. : According to SMM spot prices, Co3O4 spot prices showed a volatile downward trend this week. As of May 22, Co3O4 spot prices fell to 353,000-363,000 yuan/mt, with an average price of 358,000 yuan/mt, down 5,500 yuan/mt from 363,500 yuan/mt on May 15, a decline of 1.51%. According to SMM, the Co3O4 spot market continued its sluggish pattern this week. Supply side, enterprises found it difficult to maintain high prices and lowered prices to ship, but even so, product inventory continued to accumulate. Demand side, downstream LCO material enterprises still primarily relied on client-supplied materials plus long-term contracts, with spot order procurement volumes continuing to decline; meanwhile, affected by weak demand, some enterprises proactively slowed down their long-term contract cargo pick-up pace. Looking ahead, the subdued Co3O4 market is expected to persist for an extended period, but the price outlook remains positive, though support comes more from the cost side, with supply-demand and procurement factors having relatively limited impact. Regarding raw material cobalt intermediate products: According to SMM spot prices, cobalt intermediate product spot prices remained stable this week. As of May 22, cobalt intermediate product (CIF China) spot prices held steady at $25.8-26.2/lb, with an average price of $26/lb. According to SMM, on the supply side of cobalt intermediate products this week, suppliers maintained firm bullish expectations, with quotes consistently held above $26/lb. Demand side performance was stable; affected by weak cobalt salt prices, downstream smelters only made just-in-time procurement, with some non-standard products transacting near $25/lb. On the quota front, 2025 Q4 miner quota approvals were largely completed, while Q1 quota approvals were slower due to procedural constraints; coupled with tight logistics capacity in the DRC, where cobalt cargo had lower transportation priority, the arrival of large-volume shipments to China may be further delayed . In the short term, dragged by weak demand, prices are likely to remain stable, but after downstream orders materialize and restocking demand is released, intermediate product prices still have upside room for recovery. News: According to Webstock Inc., on May 18, Ilya Epikhin, Global Head of Natural Resources at consulting firm Arthur D. Little, stated that 2027 could see the first deep-sea mineral extraction, with copper, cobalt, and nickel being "mined" from the ocean for the first time. It is reported that polymetallic nodules on the seabed (containing 28%-30% manganese, 1% copper, 1% nickel, 0.2%-0.7% cobalt) are found at depths of 4,000-6,000 meters, with concentrations ranging from 5-15 kg per m², with the Clarion-Clipperton Zone in the North Pacific being the world's most resource-rich area for nodules. Corporate developments: On May 12, XTC New Energy Materials (Xiamen) was asked about the impact of cobalt raw material price increases on the company. XTC New Energy Materials (Xiamen) responded that the company is one of the world's largest cobalt consumers, maintaining long-term close cooperation with upstream enterprises, with stable cobalt raw material supply. In the 3C consumer electronics sector, clients focus more on LCO performance, so the negative impact of cobalt raw material price increases on the company's operations is relatively small. In terms of inventory management, the company adheres to a "short lead time, fast turnover" business strategy, building a robust raw material supply chain. Public information shows that XTC New Energy Materials (Xiamen)'s main products include LCO, ternary cathode material (including high-nickel ternary), and LFP, with its ternary cathode material firmly positioned in the industry's first tier. In 2025, the company actively seized demand growth opportunities from national device trade-in subsidy policies and increased battery capacity in 3C consumer devices driven by AI functions, closely addressing core client needs, fully leveraging its leading high-voltage LCO technology advantages, supplying first-tier smartphone and laptop brands, achieving full-year LCO sales of 65,300 mt (of which 4.5V and above high-voltage products accounted for 58%), with sales up 41.31% YoY. Tengyuan Cobalt mentioned its existing capacity in a previously released investor activity record. It stated that as of the end of Q1 2026, the company had capacity of 31,500 mt in metal content for cobalt products (including 8,000 mt in metal content for refined cobalt), 10,000 mt in metal content for nickel products, 10,000 mt in metal content for manganese products, 60,000 mt for copper products, 20,000 mt for ternary cathode precursor, 10,000 mt for Co3O4, and 5,000 mt for lithium carbonate. Additionally, when investors asked about the company's outlook on cobalt market trends this year, Tengyuan Cobalt stated that the strategic value and demand potential of cobalt are being redefined, with its resource attributes being continuously strengthened. Furthermore, as AI drives the emergence of new sectors such as humanoid robots, low-altitude economy, and robotic dogs, the accelerated industrialisation of ternary solid-state batteries will become the core new engine for cobalt demand growth, opening up medium and long-term, certain, and substantial incremental cobalt demand. Combined with cobalt's essential demand attributes, its growth potential will continue to shift upward.

SMM News, May 21： Since mid-March, China's tungsten market has ended a year-long sharp rally and entered a high-level correction phase with prices trending steadily lower. Market sentiment has shifted from exuberance to caution, with periodic supply-demand adjustments and fading market mood becoming core drivers of price movements.

[Secondary Lead Production Update] It is reported that a secondary lead smelter in the Philippines (with a monthly production of approximately 1 kt) has been shut down for about 2 months due to tight raw material supply and the need for technological transformation, and the date to resume production is yet to be determined.

[SMM Brass Billet News Flash] This week (5.15-5.21), the brass billet industry remained in the doldrums, with an operating rate of 52.14%, down 0.2 percentage points WoW. The market has entered the traditional consumption off-season, compounded by tight raw material supply, wild swings in copper prices, and sluggish end-use demand, putting sustained pressure on enterprises' production and operations.

According to the latest customs data, China imported 447,700 mt in physical content of zinc concentrates in April 2026, down 17.95% MoM from March (97,900 mt in physical content) and down 9.49% YoY. Cumulative zinc concentrate imports from January to April totaled 2.0021 million mt in physical content, up 16.92% YoY cumulatively.

[Lead-Acid Battery Enterprise News] Yesterday, Tianneng Holding Group and Clarios signed a strategic cooperation agreement. The two parties will deepen cooperation around the "dual carbon" goals in areas such as raw material supply chain synergy, waste battery recycling, and full life cycle management, joining forces to drive new development in the circular industry. In addition, Zhang Tianren, Chairman of Tianneng Group, and Huang Yuan, President of Clarios Asia, jointly attended the signing ceremony.

[SMM Global Steel Enterprise Special Report] A Detailed Analysis of US "Steel King" Nucor: 100% Electric Arc Furnace Forging High Profits, Vertical Integration Mitigating Cost Fluctuations Nucor Corporation is a company incorporated in Delaware in 1958. The company and its subsidiaries are engaged in the manufacture of steel and steel products. It also produces and procures ferrous and non-ferrous metal materials, primarily for use in its steelmaking operations. Most of its operating facilities and clients are located in North America. Its operations include international trading and sales companies responsible for buying and selling steel and steel products manufactured by the company and others. Nucor is also the largest recycler in North America, using steel scrap as the primary raw material for producing steel and steel products. In 2025, it recycled approximately 20 million gross tons of steel scrap. Operating Performance Data source: Nucor Corporation Annual Report、SMM Reasons behind the performance changes: ① Decline in gross profit: The primary reason for the decline in gross profit in 2025 was the compression of profit margins in the steel products segment. Due to lower average selling prices, gross profits from the grating and decking, building systems, and rebar fabrication businesses under this segment all experienced significant declines. ② Steel mill segment growth: In contrast, gross profit in the steel mill segment increased, primarily driven by higher sales and improved steel industry spreads. ③ Investment expenditures: Over the past three years, Nucor invested approximately $9.73 billion in capital expenditures and acquisitions, aiming to expand its product portfolio and enhance operational flexibility. Segments, Major Products, and Marketing Nucor reports its results in three segments: the steel mills segment, the steel products segment, and the raw materials segment. The steel mills segment is Nucor's largest segment, accounting for 62% of the company's sales to external clients for the fiscal year ended 2025. It primarily sells its products to steel service centers, manufacturers, and fabricating enterprises located in the US, Canada, and Mexico. In 2025, the steel mills segment sold approximately 19,848 kt of products to external clients. Data source: Nucor Corporation Annual Report、SMM The Steel Products segment primarily produces high-value-added downstream construction and industrial components, holding leading positions across the U.S. in multiple sub-segments including steel joists, prefabricated metal buildings, and insulated metal panels. It accounted for 29% of the Company's net sales to external clients for the year ended 2025. In 2025, total sales of major products in the Steel Products segment were approximately 1.478 million mt, including approximately 658,000 mt of steel joists and joist girders, approximately 436,000 mt of steel deck, and approximately 384,000 mt of metal building systems. Although physical sales volume (tonnage) was far below that of the Steel Mills segment, the per-mt selling price and profit margin were much higher than those of basic steel, and the segment also ranked first in market share across the U.S. in multiple areas. Data source: Nucor Corporation Annual Report、SMM The Raw Materials segment is the cornerstone of Nucor's vertical integration strategy, primarily operated through its wholly-owned subsidiary The David J. Joseph Company (DJJ), and manages DRI production facilities in Louisiana and Trinidad. By blending DRI with steel scrap, it supports electric arc furnace (EAF) production of higher-grade sheets & plates while ensuring cost advantages and supply security of raw materials. It accounted for 9% of the Company's net sales to external clients for the year ended 2025. In 2025, approximately 20 million gross tons of steel scrap were recycled and processed. Data source: Nucor Corporation Annual Report、SMM Clients and Markets Data source: Nucor Corporation Annual Report、SMM Major Development Projects in Recent Years The vast majority (91%) of Nucor's capital was allocated to internal construction (CapEx), strengthening core competitiveness through technology upgrades (such as electric arc furnaces and micro mills); a small portion was used for strategic acquisitions to achieve "outward expansion" into high-margin downstream areas. Through acquisitions such as SWDP, the company quickly entered high-barrier, high-growth sub-segments including data centers and green energy, making its business structure more resilient to cyclical downturns. Data source: Nucor Corporation Annual Report、SMM Core Logic of Vertical Integration for Cost Reduction: Raw Material Supply Structure Data source: Nucor Corporation Annual Report、SMM Core Risk Factors The greatest risk facing Nucor is a combination of internal and external challenges — internally, cost fluctuations in steel scrap and energy; externally, the impact of low-priced imported steel resulting from global (especially China's) overcapacity. Specifically: 1. Core Industry Risks ① Severe global supply-demand imbalance: Global steel surplus capacity reached 704 million net mt in 2025 (8 times US annual production). It is expected to further increase to 795 million mt by 2027. ② Regional impact: China's annual production has exceeded 1 billion mt in each of the past 8 years, and Chinese steelmakers continue to invest in new capacity in Southeast Asia and Africa. ② Import shock: This surplus leads to a flood of low-priced steel into the US market, creating significant downward pressure on Nucor's product prices, sales, and profit margins. 2. Production Cost Risks ① Steel scrap price sensitivity: Nucor uses 100% electric arc furnaces (EAF), with steel scrap being the largest cost item. Steel scrap prices fluctuate significantly and are beyond Nucor's control. ② Supply chain uncertainty: Although Nucor has achieved a degree of self-sufficiency through its DRI plants and DJJ recycling system, pig iron and iron ore pellets still rely on international procurement, facing geopolitical risks (e.g., Ukraine, Russia, Brazil). 3. Operational Challenges ① Energy-intensive nature: Steelmaking relies on large amounts of electricity (for melting) and natural gas (for heating and DRI production). ② Cost pass-through: Energy prices are affected by demand, the regulatory environment, and transmission infrastructure (pipelines/power grid), and cost surges may erode profits. 4. Compliance and ESG Risks ① Emission reduction pressure: The steel industry faces intense scrutiny due to greenhouse gas (GHG) emissions. ② Policy risk: Although Nucor's emission intensity is far lower than its blast furnace peers, increasingly stringent environmental protection laws and regulations may increase capital expenditures or restrict operations at existing facilities. 5. End-Use Market Risks ① Industry cyclicality: The steel industry is highly correlated with the macro economy. ② End-use market fluctuations: Nucor's largest market is non-residential construction. If this sector (e.g., commercial offices, industrial facilities) contracts due to high interest rates or economic recession, it will directly impact Nucor's performance severely. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. The copyright, trademark rights, domain name rights, commercial data information property rights, and other related intellectual property rights of all content contained in this report (including but not limited to information, articles, data, charts, pictures, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, etc.) are owned or held by SMM or its related right holders. 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For any unauthorized use, SMM will legally pursue the legal responsibilities of the infringer, demanding that they bear legal responsibilities including but not limited to contractual breach liability, returning unjust enrichment, and compensating for direct and indirect economic losses. Data Source Statement: (Except for publicly available information, other data in this report are derived from publicly available information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, brokerage reports, data from the National Bureau of Statistics, customs import and export data, various data published by major associations and institutions, etc.), market exchanges, and comprehensive analysis and reasonable inferences made by the research team based on SMM's internal database models. This information is for reference only and does not constitute decision-making advice. 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[Guangxi Liuzhou Earthquake Has No Impact on Zinc Industry for Now] At 00:21 on May 18, a magnitude 5.2 earthquake struck Liunan District, Liuzhou City, Guangxi, with a focal depth of 8 kilometers. A magnitude 3.3 earthquake struck again at 07:41. As Guangxi is an important zinc raw material supply region, according to SMM, the earthquake has had no impact on zinc smelter production for now, and enterprise production is operating normally.

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