[SMM Announcement] Announcement on the Addition of Domestic Lanthanum Chloride Price Points

Dear User:

Hello!

To facilitate better control of rare earth-related market fluctuations for upstream and downstream enterprises in the rare earth industry, promptly reflect spot market price trends, reduce transaction risks and costs in the rare earth-related markets, and continuously improve and deepen research on the rare earth industry chain, SMM, after a period of consolidation and market surveys, plans to begin publishing lanthanum chloride prices starting January 5 for market reference.

I. General Principles of SMM Price Assessment Methodology

Shanghai Metals Market (hereinafter referred to as SMM) is a fully independent third-party service organization that does not participate in any substantive transactions. Instead, it maintains close communication with buyers or sellers in transactions as market observers or organizers and provides relevant services to the market. Through communication with industry professionals, SMM continuously develops, reviews, and revises its methodology, adopting the most common product specifications, trade terms, and trade conditions in the industry, and giving equal importance 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 metal spot prices (or price indices, including the Chinese market, markets outside China, and global markets), commonly referred to as SMM prices. For each SMM price published, SMM has established a corresponding methodology (all of which will be available for reference on SMM's official website, www.smm.cn). The methodology specifies the methods and procedures for generating and publishing SMM prices, which are produced and released strictly in accordance with the methodology's provisions.

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 before formal implementation. If you have any questions or suggestions regarding SMM prices or their methodology, please contact SMM customer service (contact information can be found on the SMM official website, www.smm.cn).

This document specifies the standards for setting domestic lanthanum chloride prices. The purpose of establishing this standard by SMM is to create a transparent and verifiable mechanism for SMM price assessment.

II. Formation of SMM Lanthanum Chloride Prices

2.1 Definition of SMM Lanthanum Chloride Prices

The SMM lanthanum chloride spot price is an indicative price formed and published by SMM in accordance with this methodology, which can be used by both trading parties as a reference for settling lanthanum chloride spot trades. This price reflects the delivery-to-factory price range of the seller most likely to be achieved at the time of SMM lanthanum chloride spot price publication on each full working day. The price is primarily based on the spot transaction price conditions in the domestic Chinese market on the given day, including 13% VAT, and represents the tax-inclusive delivery-to-factory prices from producers or traders.

2.2 SMMNew Lanthanum Chloride Price Points as Follows:

Lanthanum Chloride

2.3 Method of Quotation Generation

SMM collects data for assessing lanthanum chloride prices through price collection (i.e., gathering raw data information that meets SMM standards), including unexecuted buyer and seller quotations provided by price submitters on the day, as well as actual spot transaction prices from concluded deals reported by price submitters.

2.4 Price Collection Method

SMM price analysts regularly collect data related to domestic lanthanum chloride prices from price submitters via phone, QQ, WeChat, fax, and email during each trading day (between 9:30 AM and 11:00 AM). This price data may include executed prices for the day, enterprises' expectations of the most likely pending transaction prices, and offers. All instant messaging content, email communications, and records of any face-to-face interactions are archived; details of phone conversations are summarized and entered into a database. The price data must represent typical, repeatable transactions between non-related market participants (financially and legally independent).

SMM price analysts must comply with the Compliance System when reporting any forced or threatened communications from market participants, or any induced offers attempting to influence the assessment results. Once the price is published, SMM will not make corrections or adjustments on the same day.

2.5 Product Specifications:

TREO 45% min, LaCl3/REO 99.9% min.

2.6 Unit of Account and Presentation

Lanthanum Chloride: yuan/mt; presented as a range, tax-inclusive (including 13% VAT) delivery-to-factory price.

2.7 Quantity

Based on a minimum unit of 1 mt.

2.8 Delivery Method:

Delivery-to-factory.

2.9 Payment Terms:

Payment conditions under negotiated transaction agreements, calculating draft discount prices to facilitate SMM's uniform use of cash delivery-to-factory price quotations.

2.10 Update Time:

10:50-11:10 AM on each trading day.

2.11 Packaging Method:

Negotiated packaging forms: e.g., 25 kg or 50 kg per packaging unit.

III. Methodology Changes

All markets are evolving, and SMM has a responsibility to ensure that the methodologies for its market reports evolve alongside the markets. Therefore, SMM will conduct regular internal reviews of the appropriateness of its methodologies based on industry feedback. For all substantial but non-urgent potential 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 comment, unless special circumstances, particularly force majeure (such as natural disasters, war, exchange bankruptcy, etc.), necessitate a shorter notice period. SMM is committed to carefully reviewing all comments on proposed methodology changes; however, in some cases, it may be necessary to proceed with methodology changes against the wishes of some market participants. Additionally, SMM has a formal methodology consultation process.

SMM Information & Technology Co., Ltd. Rare Earth Research Team

Jan 2026