June 12 spot price of SMM rare earths

Coherent reported fiscal Q4 2026 Datacenter & Communications revenue of $1.615 billion, up 18.6% QoQ and 58.6% YoY, accounting for approximately 79% of total revenue. The company cited accelerating customer demand as AI datacenter architectures transition from copper to optical connectivity and said it is prioritizing manufacturing capacity expansion. Coherent’s technical materials identify indium phosphide as an important platform for native laser integration and high-bandwidth 400G-per-lane optical systems. SMM views the expansion of AI optical connectivity as supportive of medium-term InP and high-purity indium demand. However, Coherent did not disclose InP product shipments, preventing a quantitative estimate of the corresponding increase in indium consumption.

[Supply-demand tug-of-war continues, magnesium prices in the doldrums today] Mainstream quotations from producers centered around 15,800 yuan/mt. Some enterprises proactively lowered their offers to facilitate transactions, with actual deals concluded at as low as 15,750 yuan/mt. However, most producers showed no willingness to sell below 15,800 yuan/mt, as sentiments of holding prices firm and conceding prices coexisted.

[SMM International Analysis: Strategic Attributes of Magnesium Metal Continue to Stand Out, Global Primary Magnesium Supply-Demand and Trade Landscape Restructuring Advances] The competitive focus of global magnesium trade has shifted from "who has the resources" to "who has the capability." Even if new capacity outside China comes online as scheduled, it can only provide limited supplementation at the primary magnesium stage, while China's industry chain advantages in mid-to-high-end segments such as alloying, die-casting, and end-user components are difficult to replicate in the short term. China's magnesium industry is upgrading from the "ballast" of global supply to the "chain leader" of the global industry chain.