[announcement] (SMM) of SMM adds spot prices of bauxite CIF in Guinea, Indonesia and Malaysia

SMM, Feb. 2

Dear users,

Hello!

In order to facilitate bauxite and downstream enterprises to better control the changes in the imported bauxite market, and to reflect the spot price of imported bauxite in a timely and comprehensive manner, SMM actively investigated the market and after a period of accumulation, decided to add SMM Guinea bauxite CIF price, Indonesian bauxite CIF price and Malaysia bauxite CIF price from February 1st.

I. General principles of SMM Price Methodology

Shanghai Nonferrous net (hereinafter referred to as SMM) is a completely independent third-party service organization, which does not participate in any physical transaction, but maintains close communication with the buyer or seller of the transaction as a market observer or organizer, and provides relevant services for the market. By communicating with industry insiders, SMM continuously develops, reviews and revises its methodology, adopts the most common product specifications, terms and conditions of trade in the industry, and attaches equal importance to normal transactions that meet specification standards. SMM reserves the right to exclude any price information deemed to be unreliable or unrepresentative from its quotation judgment.

SMM publishes daily spot metal prices (or price indices, including the Chinese market, non-Chinese markets and global markets), often referred to as SMM prices. SMM has formulated the corresponding methodology for the published SMM prices (all will be published on SMM's official website www.smm.cn for inquiry). The methodology stipulates the methods and procedures for the generation and release of SMM prices, and produces and publishes SMM prices in strict accordance with the provisions of the methodology.

This document sets out the standards for SMM Guinea alumina CIF prices, Indonesia bauxite CIF prices and Malaysia bauxite CIF prices. The purpose of SMM in establishing this standard is to establish a transparent and verifiable SMM pricing mechanism.

II. SMM formation of spot prices of Guinea bauxite CIF, Indonesian bauxite CIF and Malaysia bauxite CIF

2.1 definition

SMM Guinea bauxite CIF, Indonesian bauxite CIF and Malaysia bauxite CIF spot prices are indicative prices that are generated and issued according to this methodology and can be used by both parties as a reference for bauxite spot settlement. The quotation frequency is daily and reflects the mainstream trading price of bauxite. At that time, SMM price members can inquire about historical prices on Synchronize.

2.2 Price generation method

SMM obtains the spot price information of Guinea aluminum mine CIF, Indonesia aluminum mine CIF and Malaysia aluminum mine CIF through the standard adoption method. The standard adoption standard includes, but is not limited to, the actual spot price of the day provided by the acquirer, and the price information of SMM Filter which deviates from the market, resulting in a relatively fair and reasonable mainstream quotation.

2.3 Standard acquisition method

SMM analysts collect spot polysilicon price information from the bid acquisition contact on a regular basis (every trading day) by telephone, QQ, Wechat, fax and e-mail, which can include the price that has been closed on the day, the most likely pending price expected by the enterprise, the offer, and so on. All instant messaging content, email communication content and any face-to-face communication records will be archived; phone communication details will be recorded and entered into the database.

SMM analysts are required to comply with the "compliance system" when reporting to their supervisors any forced or threatened communication from market participants, or any induced offer that attempts to influence the assessment. The spot price ranges of SMM Guinea Aluminium CIF, Indonesian Aluminium CIF and Malaysia Aluminium CIF are announced on SMM's official website on the 12CIF of each trading day. After the price is released, SMM will not revise or adjust it on the same day.

The spot price range of SMM polysilicon is announced on the official website of SMM on the 12 00 of each trading day. After the price is released, SMM will not revise or adjust it on the same day.

2.4 Product standards

GB/T 24483-2009 "Bauxite"

2.5 pricing units and forms of expression

The US dollar per dry ton is presented in the form of a range, excluding tax.

2.6 place of delivery

China's main ports: Yantai Port, Qingdao Port, Lianyungang Port, Huanghua Port, Caofeidian Port.

2.7 Price Point

Guinean bauxite CIF, Indonesian bauxite CIF, Malaysian bauxite CIF.

III. Change of methodology

All markets are changing, and SMM is responsible for ensuring that the methodology for market reporting changes with market Synchronize. As a result, SMM conducts regular internal reviews of the appropriateness of the methodology based on industry feedback. SMM will follow the formal external consultation process for all substantive and non-urgent potential changes. Major changes are then announced and at least 28 days' notice is given, inviting comments from the industry, unless special circumstances, especially force majeure (natural disasters, wars, exchange bankruptcies, etc.) shorten the notice period. SMM promises to scrutinize all comments about proposed methodological changes, but in some cases it may have to change the methodology against the wishes of some market participants. In addition, SMM has a formal methodological consultation process.

Welcome more related enterprises to participate in the industry chain and support SMM to better serve silicon-related enterprises. If you have any questions, please feel free to send feedback to Li Hao 021-51666863.

Shanghai Nonferrous net Aluminum and Silicon Research Group

February 2, 2021