[SMM Announcement] New price points for chloride-process titanium dioxide and chloride-process titanium dioxide FOB

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To facilitate better control of fluctuations in the titanium dioxide market and timely reflection of spot market prices by upstream and downstream enterprises in the titanium dioxide industry, reduce transaction risks and costs in the titanium dioxide market, and continuously improve and deepen research on the titanium dioxide industry chain, SMM, after a period of accumulation and market surveys, will newly release the FOB price points for chloride-process titanium dioxide and chloride-process titanium dioxide starting from June 19th for market reference.

I. General Principles of SMM Price Assessment Methodology

Shanghai Metals Market (hereinafter referred to as SMM) is a completely independent third-party service organization that does not participate in any substantive transactions. Instead, it maintains close communication with buyers or sellers in transactions as a market observer or organizer and provides relevant services to the market. SMM continuously formulates, reviews, and revises its methodologies through communication with industry insiders, adopting the most common product specifications, trade terms, and trade conditions in the industry. It also attaches equal importance to normal transactions that meet specification standards. SMM reserves the right to exclude any price information deemed to be of poor reliability or non-representative from its quotation assessments.

SMM releases daily spot metal prices (or indices, etc., including prices in the Chinese market or markets outside China), commonly referred to as SMM prices. SMM has formulated corresponding methodologies for all SMM prices it releases (which will be published on SMM's official website, www.smm.cn, for inquiry). The methodologies stipulate the methods and procedures for the formation and release of SMM prices, and SMM strictly adheres to these methodologies in forming and releasing SMM prices.

To align with the actual situation of the spot market, SMM will make necessary revisions to its SMM price assessment methodology and announce them on SMM's official website, www.smm.cn, 28 days prior to their official implementation. If you have any questions or suggestions regarding SMM prices or their methodologies, please contact SMM's customer service personnel (please inquire about contact information on SMM's official website, www.smm.cn).

This document stipulates the formulation standards and management methods for the FOB spot prices of chloride-process titanium dioxide. The purpose of SMM in formulating these standards is to establish a transparent and verifiable SMM price formulation mechanism, providing market participants with an important pricing indicator.

II. Formation of SMM FOB Prices for Chloride-Process Titanium Dioxide

2.1 Definition

The SMM FOB spot prices for chloride-process titanium dioxide are assessment prices formulated and released by SMM in accordance with this methodology, which can be used by both parties to a transaction as a reference basis for the settlement of FOB spot trades of chloride-process titanium dioxide. This price reflects the actual transaction prices of enterprises and the estimated range of the most probable ex-factory spot transaction prices for SMM chloride-process titanium dioxide (TiO₂) and chloride-process TiO₂ FOB spot prices released on each full business day. It is primarily based on the nationwide spot transaction price conditions on that day.

2.2 SMM's newly added price points for titanium dioxide

Chloride-process TiO₂ and chloride-process TiO₂ FOB

2.3 Methodology for generating quotations

SMM collects data information for evaluating the prices of chloride-process TiO₂ and chloride-process TiO₂ FOB through price collection (i.e., gathering raw data information that meets SMM standards). This includes unexecuted quotes from buyers and sellers provided by price submitters (i.e., data providers) on the same day, as well as the actual transaction prices of spot cargoes that have been executed, also provided by price submitters.

2.4 Methodology for price collection

SMM price analysts regularly (between 9:30 AM and 11:00 AM on each trading day) collect relevant data information on the prices of chloride-process TiO₂ and chloride-process TiO₂ FOB from price submitters via phone, QQ, WeChat, fax, and email. This price data information may include prices that have been executed on the same day, the most probable pending transaction prices expected by enterprises, offers, etc. All instant messaging content, email communication content, and records of any face-to-face communications will be archived; details of phone communications will be summarized and entered into the database. This price data information must represent typical, repeatable transactions that occur between non-affiliated market participants (financially and legally independent). SMM price analysts must adhere to the Compliance Policy when reporting to their supervisors any communications from market participants that involve coercion or threats, or any attempts to influence the evaluation results through induced offers. Once the price is published, SMM will not make any corrections or adjustments on the same day.

2.5 Product standards

Conform to the requirements of the GB/T1706-2006 standard for various indicators of chloride-process TiO₂.

2.6 Pricing unit

Chloride-process TiO₂: yuan/mt; presented in a range format, it is a tax-inclusive price (including 13% VAT);

Chloride-process TiO₂ FOB: US dollar/mt; presented in a range format.

2.7 Delivery method

Chloride-process TiO₂: self pick-up from in-plant inventory

Chloride-process TiO₂ FOB: FOB at Chinese ports - Guangzhou Port, Shanghai Port, and Tianjin Port

2.8 Update time

11:00 AM - 11:30 AM on each trading day

III. Methodology Changes

All markets are subject to change, and SMM has the responsibility to ensure that the methodologies for market reports evolve in tandem with the market. Therefore, SMM will conduct internal reviews of the appropriateness of its methodologies on a regular basis based on industry feedback. For all potential substantive but non-urgent modifications, SMM will follow a formal external consultation process. It will then announce significant changes and provide a notice period of at least 28 days, inviting industry participants to comment, unless there are special circumstances, particularly force majeure (natural disasters, wars, exchange bankruptcies, etc.) that result in a shortened notice period. SMM undertakes to carefully consider all comments on proposed methodology changes, but in some cases, it may have to make changes to the methodologies against the wishes of some market participants. Additionally, SMM has a formal methodology consultation process.

SMM Information & Technology Co., Ltd. Titanium Industry Research Team June 13, 2025