[SMM announcement] notice on the addition of ferroniobium 60A and ferroniobium 60B price points

Dear users,

Hello!

In order to facilitate the upstream and downstream enterprises of ferroniobium to better control the changes of ferroniobium market and reflect the price of the spot market in time, reduce the transaction risk and transaction cost of ferroniobium market, and constantly improve and deepen the research of niobium industry chain, SMM plans to release the prices of ferroniobium 60A and ferroniobium 60B for market reference after a period of precipitation and market research.

I. General principles of SMM Price Methodology

Shanghai Nonferrous Network (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 pricing standards for Chinese ferroniobium 60A and ferroniobium 60B. The purpose of SMM in formulating this standard is to establish a transparent and verifiable SMM pricing mechanism.

II. SMM the formation of the price of Chinese ferroniobium 60A and ferroniobium 60B

2.1 definition

The price of SMM ferroniobium 60A and ferroniobium 60B is formed and published by SMM according to this methodology and can be used by both parties as a reference for spot trade settlement of ferroniobium 60A and ferroniobium 60B. The price is mainly based on the daily national ferroniobium 60A, ferroniobium 60B export price, including taxes, capital occupation costs and other related trade expenses.

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

Price of ferroniobium 60A, ferroniobium 60B

2.3 the method of quoting:

SMM collects the data information used to evaluate the prices of ferroniobium 60A and ferroniobium 60B by means of standard acquisition (that is, collecting the original data information in accordance with the SMM standard), including the quotations of buyers and sellers that have not been completed on the same day provided by the bid acquisition unit (that is, the data provider), the spot actual 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 about the prices of ferroniobium 60A and ferroniobium 60B from the bid collection units by telephone, QQ, Wechat, fax and e-mail (between 09:30 and 11:00 on each trading day). 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 ferroniobium 60A and ferroniobium 60B (GB/T 7737-2007) for various indexes of ferroniobium 60A and ferroniobium 60B.

2.6 pricing units and forms of expression:

Ferroniobium 60A: yuan / ton; presented in interval form, including tax price (including 13% VAT)

Ferroniobium 60B: yuan / ton; presented in interval form, including tax price (including 13% VAT)

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 Update time:

11:00-11:30 every trading day

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.

Niobium Research team of Shanghai Nonferrous Network Information Technology Co., Ltd.

January 21, 2022