[SMM announcement] announcement of quotation for new series of molybdenum concentrate, molybdenum oxide, ferromolybdenum, ammonium molybdate, molybdenum bar, etc.

SMM, July 12th

Dear users,

Hello!

In order to facilitate molybdenum upstream and downstream enterprises to better control the changes in the molybdenum market and reflect the price of the spot market in time, reduce the transaction risk and transaction cost of the molybdenum market, and constantly improve and deepen the research of the molybdenum industry chain, after a period of precipitation and market research, SMM plans to release the prices of 45% molybdenum concentrate, molybdenum oxide, molybdenum 60, ammonium tetramolybdate, ammonium heptamolybdate, molybdenum bar and wire-drawn molybdenum bar from July 19. For market reference.

I. General principles of SMM Price Methodology

SMM (hereinafter referred to as SMM) is a completely independent third-party service organization, which does not participate in any substantive 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.

In order to meet the actual situation of the spot market, SMM will make necessary amendments to the SMM price methodology and announce it on the official SMM website before its formal implementation. If you have any questions or suggestions about SMM price and its methodology, please contact SMM customer service personnel (please check the contact information on SMM's official website www.smm.cn).

This document sets out the price standards for 45% molybdenum concentrate, molybdenum oxide, molybdenum 60, ammonium tetramolybdate, ammonium heptamolybdate, molybdenum bar and brushed molybdenum bar. The purpose of SMM in establishing this standard is to establish a transparent and verifiable SMM pricing mechanism.

Second, the formation of the spot price of SMM molybdenum concentrate 45%, molybdenum oxide, molybdenum 60, ammonium tetramolybdate, ammonium heptamolybdate, molybdenum bar and wire-drawn molybdenum bar.

2.1 definition

The prices of SMM molybdenum concentrate 45%, molybdenum oxide, molybdenum 60, ammonium tetramolybdate, ammonium heptamolybdate, molybdenum bar and wire-drawn molybdenum bar are formed and issued by SMM according to this methodology and can be used by both parties as a reference basis for spot trade settlement of 45% molybdenum concentrate, molybdenum oxide, molybdenum 60, ammonium tetramolybdate, ammonium molybdate, molybdenum bar and wire-drawn molybdenum bar. The price is mainly based on the daily spot transaction price situation across the country, including taxes, capital occupation costs and other related trade expenses.

2.2 the new tantalum-related price points for SMM are as follows:

45% price of molybdenum concentrate

Molybdenum oxide price

Ferromolybdenum 60 price

Price of ammonium tetramolybdate

Price of ammonium heptamolybdate

Molybdenum bar price

Wire drawing molybdenum bar price

A total of 7 quotation points.

2.3 method of quotation generation

SMM collects the data information used to evaluate the spot price of 45% molybdenum concentrate, molybdenum oxide, molybdenum iron 60, ammonium tetramolybdate, ammonium molybdate, molybdenum bar and wire-drawn molybdenum bar by collecting standards (that is, collecting raw data information in accordance with the SMM standard), including the quotations of buyers and sellers that have not been concluded on the same day provided by the bid acquisition unit (that is, the data provider), the spot transaction price provided by the bid acquisition unit, and so on.

2.4 the method of adopting the standard

SMM price analysts regularly collect data and information on the spot prices of 45% molybdenum concentrate, molybdenum oxide, ferromolybdenum 60, ammonium tetramolybdate, ammonium heptamolybdate, molybdenum oxide, molybdenum bar and wire-drawn molybdenum bar from the mining standard units on a regular basis (between 09:30 and 11:00 on each trading day) by means of telephone, QQ, Wechat, fax and e-mail. The price data information may include the price that has been closed on that day, the most likely price to be closed 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 summarized and entered into the database. The price data information must be a typical, repeatable transaction between non-affiliated market participants (financially and legally independent).

SMM price 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 outcome of the assessment. After the price is released, SMM will not revise or adjust it on the same day.

2.5 Product standards:

It meets the requirements of molybdenum concentrate (YS/T 235-2016) for 45% of the indexes of molybdenum concentrate.

It meets the requirements of molybdenum oxide (YB/T 5129-2012).

It meets the requirements of ferromolybdenum (GB/T 3649-2008) for each index of ferromolybdenum 60.

It meets the requirements of ammonium molybdate (GB/T 3460-2017) for ammonium tetramolybdate and ammonium heptamolybdate.

It meets the requirements of molybdenum strip and molybdenum slab (GB/T 3462-2017).

It meets the requirements of molybdenum bars and molybdenum bars (GB/T 4188-2017) for wire drawing molybdenum bars.

2.6 pricing units and forms of expression

Molybdenum concentrate 45%: RMB / tonnage; presented in interval form, including tax price (including 13% VAT)

Molybdenum oxide: RMB yuan / tonnage; presented in interval form, including tax price (including 13% VAT)

Ferromolybdenum 60: RMB / base ton; presented in interval form, including tax price (including 13% VAT)

Ammonium tetramolybdate: RMB / ton; in interval form, including tax price (including 13% VAT)

Ammonium heptamolybdate: RMB / ton; presented in interval form, including tax price (including 13% VAT)

Molybdenum bar: RMB / kg; presented in interval form, including tax price (including 13% VAT)

Brushed molybdenum bar: RMB / kg; presented in interval form, including tax price (including 13% VAT)

Online update time: 11:30-12:00 every trading day

2.7 method of delivery:

Pick up the goods from the factory warehouse

2.8 terms of payment:

The bank will remit money in cash and arrive on the same day.

2.9 forms of expression:

Presented in the form of interval, including tax price (including 13% VAT)

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.

Molybdenum Research team of SMM Information & Technology Co., Ltd.

July 12, 2021