[SMM Analysis: Downstream Demand Recovers, EMM Spot Price Fluctuates Upward] Supply side, most EMM plants slightly increased production, while EMM plants in Guizhou slightly reduced production due to furnace maintenance. Overall, EMM production in December is expected to increase MoM. Demand side, due to favorable market news, other manganese alloy products experienced tight spot supply and rapid price increases in December, leading downstream demand to favor EMM procurement and boosting purchasing enthusiasm for EMM. In summary, driven by the boost from other manganese alloys and the effective digestion of previous inventories by manganese plants, EMM prices in December fluctuated upward. Entering January 2025, EMM prices are expected to continue fluctuating upward. Supply side, some EMM plants plan to suspend production for maintenance, and EMM supply is expected to decrease slightly in the future. Demand side, downstream steel mills are expected to stockpile ahead of the Chinese New Year, leading to a slight recovery in EMM demand. In conclusion, supported by the stockpiling demand from downstream steel mills, EMM prices are expected to continue fluctuating downward in the future.

[SMM Analysis: Cautious Purchasing by Downstream Steel Mills, SiMn Alloy Spot Prices Fluctuate Downward] In the spot market, there remains a certain cost difference between the northern and southern regions. In December, due to pre-Chinese New Year stockpiling demand from alloy plants, the purchasing enthusiasm for manganese ore was relatively high. Coupled with a slight rise in overseas manganese ore quotes, miners showed strong sentiment to stand firm on quotes, leading to a slight rise in the manganese ore spot market. As manganese ore inventory at southern ports remained relatively low, spot quotes in the southern manganese ore market were firm. Additionally, the impact of high electricity costs in the south resulted in the northern region maintaining cost advantages compared to the southern region. Supply side, northern SiMn alloy plants, benefiting from lower production costs, saw some previously ignited plants start production, with production expected to increase slightly. In contrast, southern SiMn alloy plants, facing significant production pressure, showed a stronger willingness to reduce or halt production. Overall, the increase in production is expected to outweigh the reduction, leading to an overall increase in SiMn alloy production. Demand side, in December, some steel mills showed pre-Chinese New Year stockpiling demand, with downstream steel mills demonstrating strong purchasing enthusiasm for SiMn alloy. However, they tended to bargain down purchasing prices for SiMn alloy. Overall, the supply surplus in the SiMn alloy market remains unchanged. Coupled with the pressure from steel mills bargaining down prices, SiMn alloy spot prices fluctuated downward. Additionally, according to SMM, entering January, some SiMn alloy plants are expected to undergo year-end maintenance. Furthermore, southern SiMn alloy plants are expected to halt production due to production pressure. On the demand side, downstream steel mills are expected to engage in pre-Chinese New Year stockpiling. Overall, supported by downstream demand, SiMn alloy prices are expected to fluctuate upward in the future market.

[SMM Commentary: GRINM and BYD Sign Strategic Cooperation Agreement to Jointly Promote NEV Industry Upgrading] On December 25, GRINM and BYD signed a strategic cooperation agreement at BYD's headquarters in Pingshan, Shenzhen. Attending the ceremony were Zhao Xiaochen, Party Secretary and Chairman of the Group, Wang Chuanfu, Chairman and President of BYD, and Wang Limin, Chief Expert of the Group.

[SMM Analysis: A Brief Overview of New Requirements for Lithium Battery Recycling Whitelist Enterprises] SMM, December 27: The Ministry of Industry and Information Technology has revised the "Normative Conditions for the Comprehensive Utilisation of Waste Power Batteries of New Energy Vehicles (2019 Edition)" (hereinafter referred to as the "Normative Conditions") and formulated the "Normative Conditions (2024 Edition)," which was released on December 16, 2024 (Announcement No. 42 of 2024 by the Ministry of Industry and Information Technology of the People's Republic of China). The purpose of this revision is to strengthen the management of the comprehensive utilisation industry for waste power batteries of new energy vehicles and to improve the level of comprehensive utilisation of waste power batteries. The Normative Conditions provide detailed requirements for comprehensive utilisation enterprises, including specific regulations on enterprise layout and project site selection, comprehensive utilisation capacity, product quality, environmental protection, production safety and personal health, social responsibility and vocational education, as well as supervision and management.

[SMM Analysis: Review of This Week's Scrap Spot Price Trends, 2024.12.23-2024.12.27] This week, prices in the recycled scrap market remained basically stable. Material side, lithium carbonate prices showed sideways movement this week, with relatively weak impact on scrap prices. In the LFP sector, as the end of December approached, demand from the ESS sector slightly declined. However, due to some enterprises stocking up before the year-end, despite lithium chemicals production costs still incurring losses, the price center of LFP pole piece powder lithium remained fluctuating around 2,800-2,900 yuan. In the ternary sector, nickel sulphate prices continued the slight rise from last week, while cobalt sulphate prices dropped slightly. Coupled with the sideways movement in lithium carbonate prices, the coefficient of ternary pole pieces remained basically stable this week. Supply and demand side, sentiment to stand firm on quotes for unbroken battery scrap remained strong. However, influenced by losses and uncertainties in Q1, most enterprises showed low willingness to accept high-priced black mass. Even as the year-end approached, they were reluctant to stockpile excessively, maintaining just-in-time procurement for processing and production. It is expected that in the short term, scrap prices will remain stable within a range, despite fluctuations in raw material prices.

[SMM Analysis: Stable Raw Material Market, Mild Rebound in Tungsten Prices] The APT market has entered a new round of long-term contract delivery period, and suppliers are showing reluctance to sell due to a slight mismatch between raw material prices and their spot prices, with low enthusiasm for active quotations in the bulk market. Meanwhile, as the year-end stocking period approaches, APT smelters are gradually increasing their operating rates, with procurement demand for raw materials expected to follow. In the tungsten powder market, inquiries have increased, but as most restocking plans in the cemented carbide market are scheduled for January, the recent slight rise in tungsten prices has not effectively boosted the circulation volume in the tungsten powder market.

[SMM Analysis: Rapid Development of the Wind Power Industry—Can It Provide Strong Support for the Rare Earth Permanent Magnets Industry?] On December 20, the National Energy Administration released national power industry statistics for January-November. By the end of November, the total installed power generation capacity nationwide reached approximately 3.23 billion kW, up 14.4% YoY.

[SMM Tungsten Weekly Review: Weekly Summary of the Tungsten Market] At this stage, the tight supply on the mining side of the tungsten market provides strong support for tungsten prices, but the limited demand on the consumption side hinders the continuous upward trend of tungsten prices. It is expected that before the New Year's holiday, under the continuation of the current situation, tungsten prices will continue to show an upward sentiment but with limited transaction realization.

[SMM Survey: How Environmental Protection Regulations Directly Impact Secondary Lead Production - Revealing the Current Status of Raw Material Inventory!] SMM, December 27: It is worth noting that due to the frequent environmental protection warnings recently, the consumption of raw material inventory by enterprises has been slow, leaving it slightly abundant. As shown in the chart below, based on the current production conditions of smelters, the existing raw material inventory exceeds the historical dynamic average by approximately six days...

[SMM Analysis: Downstream Demand Rebounds, Natural Graphite Imports and Exports Increased in November] SMM, December 27: In November 2024, China's flake graphite imports reached 3,159 mt, up 663% MoM, up 58% YoY...