[SMM Announcement] New Price Points for Magnesium Ingot CFR (Japan) and Magnesium Ingot CIF (South Korea)

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To promote international trade of magnesium ingots, help upstream and downstream enterprises worldwide better grasp market dynamics, obtain spot market information in a timely manner, reduce risks and costs of cross-border transactions, and deepen research on the magnesium ingot industry chain, SMM will add and release price points for magnesium ingot 9990 CFR (Japan) and magnesium ingot 9990 CIF (South Korea) starting from July 11th, based on thorough market surveys, to provide authoritative references for the international market.

I. General Rules of SMM Price Assessment Methodology

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

To align with the actual situation of the spot market, SMM will make necessary revisions to its SMM price assessment methodology 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 spot prices of magnesium ingot CFR (Japan) and magnesium ingot CIF (South Korea). 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 Spot Prices for Magnesium Ingot CFR (Japan) and Magnesium Ingot CIF (South Korea)

2.1 Definition

The spot prices for magnesium ingot CFR (Japan) and magnesium ingot CIF (South Korea) are assessment prices formulated and released by SMM based on this methodology, which can be used by both trading parties as a reference basis for spot trade settlement of magnesium ingot CFR (Japan) and magnesium ingot CIF (South Korea). This price reflects the actual transaction prices of enterprises when the spot prices of SMM magnesium ingot CFR (Japan) and magnesium ingot CIF (Korea) are released each full business day, as well as the estimated range of the most likely transaction prices for port spot cargoes. This price is primarily based on the spot transaction price conditions in Japan and Korea on that day.

2.2 Method of quotation generation

SMM collects data information for evaluating the spot prices of magnesium ingot CFR (Japan) and magnesium ingot CIF (Korea) through price collection (i.e., gathering raw data information that meets SMM standards). This includes unexecuted quotes from buyers and sellers provided by price submitters (i.e., data providers) on that day, as well as the actual transaction prices of spot cargoes provided by price submitters.

2.3 Method of price collection

SMM, in accordance with the price submitter agreement, will have price analysts regularly (between 9:00-10:30 each trading day) collect relevant data information on the spot prices of magnesium ingot CFR (Japan) and magnesium ingot CIF (Korea) from the price collection contacts of price submitters via phone, WhatsApp, WeChat, fax, and email. Price data information submitted after 10:30 will not be used as the basis for daily price evaluation. Incomplete data lacking the required minimum information details will not be incorporated, even if submitted before the deadline. This price data information may include executed prices on that day, the most likely pending transaction prices, offers, counteroffers, etc. All instant messaging content, email communication content, 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 information must be from typical, repeatable transactions between non-affiliated market participants (financially and legally independent).

SMM price analysts must comply with relevant SMM compliance regulations when reporting to their supervisors any forced or threatened communications from market participants, or any induced offers that attempt to influence the evaluation results.

2.5 Product standards

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

2.6 Pricing unit

US dollars per metric ton (if the price is in another currency, it will be converted according to the exchange rate reference price specified in the buyers and sellers' contract)

2.7 Delivery method

Magnesium ingot CFR (Japan): Yokohama Port and Nagoya Port in Japan, excluding insurance;

Magnesium ingot CIF (Korea): Gwangyang Port in Korea

2.8 Update time

11:00-11:30 AM each trading day

3. Methodology changes

All markets are subject to change, and SMM has the responsibility to ensure that the methodologies for market reports evolve in tandem with the market. Therefore, SMM will conduct internal reviews of the methodology's appropriateness periodically based on industry feedback. For all substantive but non-urgent potential modifications, SMM will follow a formal external consultation process. It will then announce significant changes and provide a notice period of at least 28 days, inviting industry participants to comment, unless there are special circumstances, particularly force majeure (natural disasters, wars, exchange bankruptcies, etc.) that result in a shortened notice period. SMM undertakes to carefully review 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. Additionally, SMM has a formal methodology consultation process.

SMM Information & Technology Co., Ltd. Magnesium Industry Research Team July 4, 2025