[SMM Announcement] Addition of 99.90% Magnesium Ingot CIF (India) Price Point

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To promote international trade of magnesium ingots, assist global upstream and downstream enterprises in better grasping market dynamics, obtaining spot market information in a timely manner, reducing cross-border transaction risks and costs, and deepen research on the magnesium ingot industry chain, SMM, based on thorough market surveys, will commence publishing the 99.90% magnesium ingot CIF (India) price point starting November 4, providing a reference for the international market.

I. General Principles of the SMM Price Assessment Methodology

Shanghai Metals Market (hereinafter referred to as SMM) is a completely independent third-party service organization that does not participate in any substantive transactions. Instead, it maintains close communication with buyers or sellers of transactions as market observers or organizers and provides relevant services to the market. SMM continuously develops, reviews, and revises its methodology through communication with industry professionals, adopting the most common product specifications, trade terms, and trade conditions in the industry. Equal importance is given to normal transactions that meet the standard specifications. SMM reserves the right to exclude any price information deemed less reliable or unrepresentative from its price assessments.

SMM publishes daily spot metal prices (or indices, etc., including markets within or outside China), commonly referred to as SMM prices. SMM has established corresponding methodologies for all published SMM prices (which will be available for inquiry on SMM's official website www.smm.cn). These methodologies specify the formation and publication methods and procedures of SMM prices, which are strictly adhered to in the formation and publication of SMM prices.

To align with the actual conditions of the spot market, SMM will make necessary revisions to the SMM price assessment methodology and announce them on the SMM official website www.smm.cn 28 days prior to formal implementation. For any questions or suggestions regarding SMM prices and their methodology, please contact SMM customer service personnel (please check the contact information on the SMM official website www.smm.cn).

This document specifies the formulation standards and management methods for the 99.90% magnesium ingot CIF (India) price. The purpose of SMM establishing this standard is to create a transparent and verifiable SMM price formation mechanism, providing market participants with an important pricing indicator.

II. Formation of the SMM 99.90% Magnesium Ingot CIF (India) Price

2.1 Definition

The 99.90% magnesium ingot CIF (India) price is an assessed price formed and published by SMM according to this methodology, which can be used by trading parties as a reference for settling spot trade of 99.90% magnesium ingot CIF (India). This price reflects: the actual transaction prices of various enterprises at the time of each full working day's SMM 99.90% magnesium ingot CIF (India) spot price publication, as well as the assessed range of the most probable port spot cargo transaction prices, primarily based on the spot transaction price conditions in the India region on that day.

2.2 Price Quotation Method

SMM collects data for assessing the spot price of 99.90% magnesium ingot CIF (India) through price collection (i.e., gathering raw data information that meets SMM standards). This includes bids and offers from buyers and sellers that were not transacted on the day, as provided by price submitters, as well as actual spot transaction prices of concluded deals reported by price submitters.

2.3 Price Collection Method

In accordance with the Price Submitter Agreement, SMM price analysts will regularly (between 9:00 and 10:30 each trading day) collect relevant data for the 99.90% magnesium ingot CIF (India) spot price from designated contacts at price submitters via telephone, WhatsApp, WeChat, fax, and email. Price data submitted after 10:30 will not be used as a basis for that day’s price assessment; incomplete data lacking required minimum details will not be used even if submitted before the deadline. This price data may include transacted prices for the day, the most likely expected prices for pending transactions, offers, and counteroffers. All instant messaging content, email correspondence, and records of any face-to-face communication will be archived; details of telephone conversations will be summarized and entered into the database. The price data must represent typical, repeatable transactions between non-related market participants (financially and legally independent).

SMM price analysts must comply with relevant SMM compliance policies when reporting to their supervisors any communication from market participants that is coerced or threatening, or any attempt to influence the assessment results through inducement offers.

2.4 Product Standard

Complies with GB/T3499-2023 standard, specification Mg≥99.9%

2.5 Price Unit

$/mt (if prices are quoted in other currencies, conversion shall be based on the exchange rate reference specified in the contract between buyers and sellers)

2.6 Delivery Term

CIF main ports in India, such as Mumbai Port, Nhava Sheva Port, and Kolkata Port

2.7 Update Time

Before 14:00 Beijing time each trading day (i.e., before 11:30 AM New Delhi time)

III. Methodology Changes

All markets evolve, and SMM has a responsibility to ensure that the methodology for market reporting evolves with the market. Therefore, SMM conducts regular internal reviews of the appropriateness of the methodology based on industry feedback. For all substantive but non-urgent potential changes, SMM will follow a formal external consultation process. Then announce major changes and provide a notice period of at least 28 days, inviting industry professionals to comment, unless under special circumstances, particularly force majeure (natural disasters, war, exchange bankruptcy, etc.) leading to a shortened notice period. SMM commits to carefully reviewing all comments on proposed methodological changes, but in certain cases, it may have to proceed with methodological alterations against the wishes of some market participants. Additionally, SMM has a formal methodology consultation process.

SMM Information & Technology Co., Ltd. Magnesium Industry Research Team October 28, 2025