[SMM Announcement] New Price Point for Magnesium Ingot 9990 CIF (Netherlands)

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To promote the international trade of magnesium ingots, assist upstream and downstream enterprises worldwide in better grasping market dynamics, obtaining timely spot market information, reducing cross-border transaction risks and costs, and deepening research on the magnesium ingot industry chain, SMM, based on comprehensive market surveys, will introduce a new price point for magnesium ingot 9990 CIF (Netherlands) starting from June 19th, providing authoritative references for the international market.

I. General Principles of SMM Price Assessment Methodology

Shanghai Metals Market (hereinafter referred to as SMM) is a completely independent third-party service institution that does not participate in any substantive transactions. Instead, it maintains close communication with buyers or sellers in transactions as a market observer or organizer, and provides relevant services to the market. SMM continuously formulates, reviews, and revises its methodologies through communication with industry insiders, adopting the most common product specifications, trade terms, and trade conditions in the industry. It also attaches equal importance to normal transactions that meet specification standards. SMM reserves the right to exclude any price information deemed to be of poor reliability or non-representative from its quotation assessments.

SMM publishes daily metal spot prices (or indices, etc., including prices for the Chinese market or markets outside China), commonly referred to as SMM prices. SMM has formulated corresponding methodologies for all SMM prices it publishes (which will be published on SMM's official website, www.smm.cn, for inquiry). The methodologies stipulate the methods and procedures for the formation and publication of SMM prices, and SMM strictly adheres to the provisions of these methodologies in forming and publishing SMM prices.

To align with the actual situation of the spot market, SMM will make necessary revisions to its SMM price assessment methodologies and announce them on SMM's official website, www.smm.cn, 28 days prior to their official implementation. If you have any questions or suggestions regarding SMM prices or their methodologies, please contact SMM's customer service personnel (please inquire about the contact information on SMM's official website, www.smm.cn).

This document stipulates the formulation standards and management methods for the magnesium ingot 9990 CIF (Netherlands) price. The purpose of SMM in formulating these standards is to establish a transparent and verifiable SMM price formulation mechanism, providing market participants with an important pricing indicator.

II. Formation of SMM Magnesium Ingot 9990 CIF (Netherlands) Price

2.1 Definition

The magnesium ingot 9990 CIF (Netherlands) price is an assessed price formulated and published by SMM in accordance with this methodology, which can be used by both parties to a transaction as a reference for settling spot trade transactions for magnesium ingot 9990 CIF (Netherlands). This price reflects the actual transaction prices of enterprises and the assessed range of the most likely transaction prices for port spot cargoes at the time of SMM's publication of the magnesium ingot 9990 CIF (Netherlands) spot price for each full working day. This price is mainly based on the spot transaction price conditions in Europe on that day.

2.2 Methodology for Price Quotation

SMM collects data for assessing the spot price of magnesium ingot 9990 CIF (Netherlands) through price collection (i.e., gathering raw data information that meets SMM standards), including unexecuted quotes from buyers and sellers provided by price submitters (i.e., data providers) on the same day, and actual transaction prices for spot cargoes provided by price submitters, among others.

2.3 Methodology for Price Collection

In accordance with the agreement with price submitters, SMM index analysts regularly collect relevant data on the spot price of magnesium ingot 9990 CIF (Netherlands) from the price collection contacts of price submitters via phone, WhatsApp, WeChat, fax, and email between 9:00 and 10:30 on each trading day. Price data submitted after 10:30 will not be used as the basis for price assessment on the same day. Incomplete data lacking the required minimum information details will not be included, even if submitted before the deadline. This price data may include executed prices on the same day, the most likely expected prices to be executed, offers, counteroffers, etc. All instant messaging content, email communications, and records of any face-to-face communications will be archived; details of phone communications will be summarized and entered into the database. This price data must represent typical, repeatable transactions between non-affiliated market participants (financially and legally independent).

SMM index analysts must comply with relevant SMM compliance policies when reporting to their supervisors any communications from market participants that involve coercion or threats, or any induced offers that attempt to influence the assessment results.

2.5 Product Standard

Conforming to GB/T3499-2023 standard, with a specification of Mg≥99.9%

2.6 Pricing Unit

US dollar per metric ton (If the price is quoted in other currencies, it will be converted according to the reference exchange rate specified in the contract between the buyers and sellers.)

2.7 Delivery Method

Rotterdam Port, Netherlands

2.8 Update Time

11:00-11:30 AM on each trading day

III. Methodology Changes

All markets are subject to change, and SMM is responsible for ensuring that the methodologies for market reports evolve in tandem with the market. Therefore, SMM conducts regular internal reviews of the appropriateness of its methodologies based on industry feedback. For all potential substantive but non-urgent modifications, SMM will follow a formal external consultation process. Major changes will then be announced, with a notice period of at least 28 days, inviting industry participants to provide comments, unless there are special circumstances, particularly force majeure events (natural disasters, wars, exchange bankruptcies, etc.) that necessitate a shorter notice period. SMM is committed to carefully reviewing all comments on proposed methodology changes, but in some cases, it may have to make changes to the methodology against the wishes of some market participants. In addition, SMM has a formal methodology consultation process.

SMM Information & Technology Co., Ltd. Magnesium Industry Research Team June 13, 2025