Yunnan Germanium Recycling Project Targets Feedstock Security for Strategic Metal Supply

Germanium Scrap

Yunnan Germanium recycling project plans will strengthen China’s largest germanium producer’s control over feedstock as demand from downstream high-end manufacturing remains strategically important. The company plans to invest 200.66mn yuan in a fully automated facility to process germanium-bearing waste slag.

The Yunnan Germanium recycling project will have capacity to process 150,000 t/yr of germanium-bearing waste slag. The company has not disclosed the construction timetable or launch date.

The Yunnan Germanium recycling project is designed to improve germanium resource utilisation and support raw material supply for downstream deep-processing products. This matters because germanium is a strategic minor metal used in defence, infrared optics, fibre optics, semiconductors and high-performance electronics.

The project also reflects a broader industry shift. Producers of critical and minor metals are increasingly trying to secure secondary feedstock as primary supply becomes more politically controlled and price volatility rises.

Recycling Capacity Reduces Dependence on External Raw Materials

Yunnan Germanium said partial reliance on externally sourced raw materials exposes it to germanium price volatility. Prices are influenced by global supply-demand conditions and demand from high-end manufacturing sectors.

The new recycling line should help reduce that exposure. By processing waste slag, the company can recover more germanium units from secondary material and support its downstream production chain.

This is strategically important because Yunnan Germanium already consumes significant germanium internally. In 2025, the company produced 29.7t of raw-material-grade germanium metal equivalent for external sales, excluding 68.95t used for internal consumption and third-party processing.

That internal use shows how the company is moving more material into higher-value products rather than selling all output into the merchant market. Recycling can strengthen that model by expanding available feedstock.

Yunnan Germanium also plans to diversify external suppliers of germanium-bearing waste slag. It will seek medium- to long-term supply agreements with quality provisions and emergency replenishment clauses.

The company also plans to build a raw material inventory reserve and a price-alert mechanism. It will adjust production and inventory strategies when germanium prices move by more than 10%.

These measures show a more disciplined approach to minor-metal procurement. In markets such as germanium, small disruptions can produce large price movements because supply is concentrated and liquidity is limited.

Export Controls Increase Strategic Value of Germanium Recovery

Germanium has become more strategically sensitive since China placed the metal under strict dual-use export controls in September 2023. China accounts for an estimated 60-70% of global germanium capacity.

This gives Chinese producers significant influence over global availability. It also makes domestic resource recovery more valuable, especially when export controls, defence demand and semiconductor-related applications increase policy attention.

Yunnan Germanium’s revenue rose to 1.07bn yuan in 2025 from 767mn yuan in 2024. Higher prices for key products, including raw-material-grade germanium, supported the increase despite lower external raw metal output.

The company’s recycling investment therefore supports both security and profitability. More stable feedstock access can improve operating flexibility when prices rise or external raw material supply tightens.

For downstream customers, the project may improve Yunnan Germanium’s ability to supply deeper-processed products. These include materials linked to optics, fibre communication, photovoltaics, infrared systems and compound semiconductors.

The broader market implication is clear. Germanium supply security will depend not only on mine output or primary production, but also on recycling, waste recovery, inventory control and long-term feedstock agreements.

The Metalnomist Commentary

Yunnan Germanium’s recycling plan shows that strategic minor metals are moving toward closed-loop resource control. In germanium, the advantage will belong to producers that can combine primary supply, secondary recovery and downstream processing under one feedstock strategy.

China Rare Earth Mining Regulations Tighten as Beijing Targets Illegal Supply

China Rare Earth Mining

China rare earth mining regulations are set to become more detailed as Beijing moves to strengthen control over mining, smelting, recycling and trading activity. The industry and information technology ministry has released a draft plan that would impose administrative penalties of up to 5mn yuan for violations.

China rare earth mining regulations already place rare earth production under a state quota system. The latest proposal would clarify penalty levels for companies that mine, smelt, process or trade rare earth materials outside approved channels.

China rare earth mining regulations are strategically important because China remains dominant across global rare earth mining, separation, metal production and magnet supply. Stronger enforcement could tighten unofficial supply and improve state oversight of material flows.

The draft plan released on 28 April sets clearer benchmarks for discretionary penalties. It is aimed at illegal mining, unauthorised smelting, quota breaches, unapproved feedstock use and failures in reporting or traceability.

Quota Enforcement Extends Across Mining, Smelting and Recycling

The draft plan targets enterprises that produce rare earth products beyond state-allocated mining quotas. Companies that conduct smelting without approved quotas would also face fines.

The rules would also cover comprehensive recycling firms that use rare earth ore as feedstock without authorisation. This is important because recycling and secondary processing can become loopholes if ore origin and flow reporting are weak.

Companies that buy, process or sell illegally produced rare earth ore or smelting products would also be penalised. This widens enforcement from producers to the broader trading and processing chain.

Firms that fail to comply with rare earth flow reporting and traceability requirements would face penalties. Companies that refuse or obstruct government supervision and inspection would also be targeted.

This shows that Beijing is not only regulating output volumes. It is building a more detailed control system around material origin, movement, processing rights and end-market access.

Rare earth traceability is becoming more important because these materials are strategic inputs for electric vehicles, wind turbines, robotics, defence systems, aerospace, electronics and high-end manufacturing.

The policy also strengthens China’s ability to monitor both primary and secondary supply. That matters as rare earth scrap recycling grows and as downstream magnet demand continues to increase.

State Control Reinforces China’s Strategic Rare Earth Position

China has tightened control over rare earth resources for more than a decade. The sector has been consolidated under several large state-owned groups to reduce illegal mining, improve environmental oversight and strengthen industrial coordination.

The State Council issued comprehensive rare earth regulations on 29 June 2024 covering mining, smelting, processing, recycling, trading and imports and exports. Those rules took effect on 1 October 2024, but did not define detailed penalty levels.

The latest draft fills that gap. It turns broad regulatory control into a more enforceable administrative system with clearer financial consequences.

China’s two major rare earth groups, Northern Rare Earth and China Rare Earth, now control domestic resources after China Rare Earth consolidated Xiamen Tungsten and Guangdong Rare Earth. Mining, smelting and separation quotas are allocated only to these groups and their affiliates.

Private firms and individuals are prohibited from processing rare earths. This gives Beijing a high level of control over domestic supply channels and industrial output.

From 2025, China also included imported rare earth ore in its quota system. This expanded oversight beyond domestic mining and gave the government more control over imported feedstock entering Chinese smelting and separation plants.

The move is strategically significant. China is treating rare earths as controlled industrial resources rather than ordinary commodities. Production discipline, traceability and export controls are now part of the same policy framework.

For global buyers, tighter regulation could reduce illegal or informal supply flows. It may also increase dependence on approved producers and make rare earth availability more closely tied to Chinese quota and export policy.

The Metalnomist Commentary

China’s rare earth enforcement push shows that Beijing wants full visibility over every stage of the value chain. For western buyers, the risk is clear: rare earth supply is becoming more regulated, more traceable and more politically controlled at the source.

South32 Manganese Ore Export Prices Fall as China Demand Weakens

South32 Manganese Ore

South32 manganese ore export prices to China have fallen for June shipments as weak alloy demand, ample port inventories and cautious buying pressure the import market. The Australian diversified metals producer lowered offers for both Australian and South African manganese ore, according to Chinese importers.

South32 manganese ore export prices for Australian 42% lumpy ore fell to $5.40/mtu cif China for June delivery. This was down by $0.50/mtu from May.

South32 also reduced its offer for South African 37% manganese ore to $5/mtu cif China. This was down by $0.40/mtu from the previous month.

South32 manganese ore export prices are an important signal for the wider manganese chain because China remains the largest global buyer of seaborne ore. When Chinese alloy plants slow purchases, overseas miners often need to adjust export offers to maintain sales momentum.

Chinese Alloy Weakness Cuts Restocking Appetite

Chinese importers have shown limited interest in restocking manganese ore because inventories remain sufficient and alloy prices are weakening. This has reduced spot buying urgency before the Labour Day holiday on 1-5 May.

Many alloy plants postponed ore feedstock purchases while waiting for clearer market direction after the holiday. This cautious behaviour has weakened the negotiating position of overseas ore suppliers.

The pressure is also visible in Chinese port prices. Australian 44-46% lumpy manganese ore fell to 43-47 yuan/mtu delivery ex quay on 28 April, down from 47-50 yuan/mtu on 31 March.

The decline shows that domestic buyers are not only resisting new import offers. They are also repricing available port material lower as downstream demand fails to improve.

Manganese ore demand is closely linked to ferro-manganese and silico-manganese production. These alloys are used in steelmaking, where manganese improves strength, deoxidation and performance.

When steel consumption slows, alloy plants reduce purchasing activity. This immediately affects ore demand because manganese alloy producers are the main consumers of imported ore.

Steel Demand Remains the Main Constraint

The deeper issue is weak steel demand in China. Slower economic growth and subdued construction activity have limited recovery in steel consumption, leaving alloy producers cautious about raw material buying.

Without a stronger steel recovery, manganese alloy prices are likely to remain under pressure. This limits the ability of alloy plants to pay higher ore prices, even when miners try to defend margins.

South32’s price cut also reflects wider seaborne competition. Mining firms outside China need to respond when Chinese buyers have enough stock and are unwilling to chase cargoes.

Australian high-grade lumpy ore usually commands stronger interest because of its quality and processing value. However, even higher-grade material can weaken when alloy margins are poor and port inventories are sufficient.

South African ore also remains exposed to Chinese demand swings. Lower-grade material can face sharper price pressure when buyers reduce procurement and focus only on immediate needs.

For the manganese market, the June price cut suggests that miners are prioritising volume discipline and customer access over holding elevated offers. The next price direction will depend on whether Chinese alloy plants return after the holiday with real restocking demand.

If steel demand remains weak, manganese ore prices could face further downside pressure. If alloy prices stabilise and inventories fall, importers may resume buying, but recovery is likely to be gradual.

The Metalnomist Commentary

South32’s price cut shows that the manganese market is being driven by demand absorption, not supply shortage. Until Chinese steel and alloy demand improves, seaborne manganese ore suppliers will remain exposed to cautious restocking and lower port prices.

Yongshan Lithium Molybdenum Output Falls as Concentrate Supply Tightens

Yongshan Lithium

Yongshan Lithium molybdenum output declined in 2025 as tight molybdenum concentrate supply reduced production of ferro-molybdenum alloy and roasted concentrate. The Jilin-based metals producer reported lower output and sales across its molybdenum business.

Yongshan Lithium molybdenum output fell despite firmer molybdenum prices and continued demand from high-quality special steel. Feedstock availability became the main constraint, limiting the company’s ability to maintain production volumes.

Yongshan Lithium molybdenum output reflects a wider pressure point in China’s molybdenum market. Alloy producers need concentrate feedstock, but tight supply and higher unroasted concentrate prices increased procurement pressure during the year.

The company, also known as Jixiang Molybdenum or New China Dragon Molybdenum, produced 17,631t of ferro-molybdenum alloy in 2025, down 22% from a year earlier. Sales fell by 23% to 18,018t.

Concentrate Tightness Hits Ferro-Molybdenum Production

Yongshan’s ferro-molybdenum alloy production was directly affected by constrained concentrate supply. The company purchased concentrate and alloy from other plants during the year to support regular production and sales.

This shows how dependent ferro-molybdenum producers remain on reliable upstream feedstock. Even when downstream demand is firm, alloy plants cannot maintain output without stable concentrate availability.

Roasted molybdenum concentrate output fell more sharply. Yongshan produced 29,679t in 2025, down 34% from a year earlier, because unroasted concentrate feedstock prices trended higher.

Sales of roasted concentrate dropped by 55% to 6,894t. The steep fall suggests that more material was needed internally or that market conditions made external sales less attractive.

Molybdenum concentrate is the key input for ferro-molybdenum, which is used in special steel, stainless steel, energy equipment, chemical processing, aerospace and defence-related applications. Tight concentrate supply therefore affects the entire alloy value chain.

Higher Prices Support Market but Not Volumes

China’s ferro-molybdenum market remained supported by tight feedstock and stronger consumption from high-quality special steel producers. Average domestic prices for 60% ferro-molybdenum alloy rose by 5.2% in 2025 to 246,307 yuan/t ex-works.

Roasted concentrate prices also increased. Average prices for 57% grade roasted concentrate rose by 6.1% year on year to 3,939 yuan/mtu.

The price gains show that molybdenum demand remained resilient in higher-value steel applications. However, Yongshan’s results also show that higher prices do not automatically translate into higher output when feedstock supply is constrained.

The company plans to optimise its molybdenum product structure in 2026. It aims to phase out low-margin and low-value-added products while advancing energy-saving and cost-reduction initiatives.

This is a logical response to a tighter raw material environment. When concentrate is expensive and difficult to secure, producers must prioritise higher-margin products and improve operating efficiency.

Yongshan formally changed its name from Jixiang Molybdenum in July 2024, reflecting a stronger focus on the lithium industry. Even so, molybdenum remains an important part of its industrial metals base.

The Metalnomist Commentary

Yongshan’s weaker molybdenum output shows that China’s alloy chain is being constrained upstream, not only by end-use demand. In a tight concentrate market, the competitive advantage will shift toward producers with secure feedstock, higher-value alloy products and stronger cost control.

LB Titanium Dioxide Output Falls as Sponge and Battery Materials Expand

LB Titanium

LB titanium dioxide output fell in 2025 as weaker prices, slower demand and rising trade barriers pressured the global pigment market. China’s largest titanium producer reported titanium dioxide production of 1.28mn t, down 1.5% from a year earlier.

LB titanium dioxide output declined even as sales edged higher to 1.26mn t. Domestic sales accounted for 45% of volumes, while international sales made up 55%, showing that overseas markets remain critical to the company’s TiO2 business.

LB titanium dioxide output came under pressure from structural oversupply. New capacity entered the market, prices weakened and several domestic producers cut operating rates to protect margins.

The company also pointed to anti-dumping duties imposed by the EU, Brazil, Saudi Arabia and the Eurasian Economic Union, along with higher US tariffs on Chinese material. These measures have fragmented trade flows and made the global titanium dioxide market more difficult for Chinese exporters.

Titanium Sponge Offers a Stronger Counterweight

LB’s titanium sponge business moved in the opposite direction. Titanium sponge output rose by 2.3% on the year to 71,300t, while sales increased by 0.9% to 67,500t.

The stronger sponge result matters because titanium sponge sits closer to aerospace, industrial titanium mill products and high-performance alloy supply chains. It gives LB a more diversified titanium platform beyond pigment markets.

Titanium sponge prices were also firmer. Domestic 99.7% grade sponge prices averaged 49,665 yuan/t ex-works in 2025, up from 48,270 yuan/t a year earlier.

LB has 80,000 t/yr of titanium sponge capacity, the largest globally. That scale gives the company a major position in a market where feedstock security, product quality and downstream demand from titanium processors remain strategically important.

Titanium concentrate output fell by 3% to 1.45mn t, but LB did not sell concentrate externally. All concentrate was consumed internally to produce titanium dioxide and titanium sponge.

This internal use highlights the company’s integrated titanium value chain. LB can direct feedstock toward different downstream products depending on market conditions, although weak TiO2 demand still affects overall profitability.

Iron ore concentrate output fell more sharply, dropping by 18% to 3.04mn t. Sales decreased by 2.1% to 2.94mn t, showing softer performance in another mineral by-product stream.

Iron Phosphate Growth Signals Battery Materials Diversification

LB’s battery materials business showed much stronger momentum. Iron phosphate output jumped by 72% to 97,600t, while sales rose by 59% to 96,000t.

The growth was driven by firm demand from the lithium-ion battery sector. Iron phosphate is a key precursor for lithium iron phosphate cathode materials, which are widely used in electric vehicles and energy storage systems.

This diversification is strategically important. Titanium dioxide remains LB’s largest product line, but the pigment market is facing oversupply, trade restrictions and weaker pricing. Battery materials offer a different growth channel tied to China’s expanding LFP ecosystem.

LB has 100,000 t/yr of iron phosphate capacity and 50,000 t/yr of LFP capacity. It also has 25,000 t/yr of graphite anode capacity and 50,000 t/yr of graphitisation capacity.

That product base positions LB across titanium, zirconium and battery materials. The company is no longer only a titanium dioxide producer, even though it remains the world’s largest TiO2 producer with 1.51mn t/yr of capacity.

The 2025 results show a clear split in the business. Titanium dioxide is under pressure from oversupply and trade action. Titanium sponge is holding stronger. Iron phosphate is growing with battery demand.

For LB, the industrial challenge is to manage a mature pigment business while expanding higher-growth materials platforms. Its integrated mineral base gives it flexibility, but market conditions across TiO2, sponge and battery materials are moving in different directions.

The Metalnomist Commentary

LB’s results show how Chinese titanium producers are moving beyond pigment exposure into sponge and battery materials. The strategic value lies in feedstock integration, because companies that can shift internal mineral flows between TiO2, titanium sponge and battery precursors will be better positioned in volatile markets.

Golden Dragon Magnet Output Expansion Strengthens Baotou NdFeB Capacity

Golden Dragon, Rare Earths

Golden Dragon magnet output is set to expand as the Chinese rare earths and magnet producer prepares trial production at the second phase of its Baotou plant in Inner Mongolia. The new phase is scheduled to start trial operations in December.

Golden Dragon magnet output at the second phase will add 5,000 t/yr of high-performance neodymium-iron-boron magnetic materials. The first phase began trial operations in September 2025 and is already running at full capacity of 5,000 t/yr.

Golden Dragon magnet output growth will lift the company’s Baotou high-performance NdFeB magnet capacity to 10,000 t/yr once the second phase is operating. The expansion reinforces Baotou’s role as a key rare earth magnet manufacturing hub in northern China.

The company also operates 15,000 t/yr of rough NdFeB magnet production capacity at its Changting facility in Longyan, Fujian province.

Baotou Expansion Adds High-Performance Magnet Capacity

The Baotou expansion strengthens Golden Dragon’s position in high-performance NdFeB magnets. These materials are critical for electric vehicles, wind turbines, energy-saving motors, robotics, consumer electronics and advanced industrial equipment.

High-performance NdFeB magnets require stable access to rare earth feedstocks such as neodymium and praseodymium. In higher-temperature applications, dysprosium and terbium can also be important to improve magnetic performance and durability.

Golden Dragon’s expansion is therefore not only a capacity addition. It reflects China’s effort to maintain scale and technical leadership in downstream rare earth applications.

The second phase also improves Golden Dragon’s ability to serve customers that require more consistent magnet quality and larger supply volumes. This is particularly important in sectors such as EV motors and wind power, where qualification and long-term supply reliability matter.

As a wholly owned subsidiary of Xiamen Tungsten, Golden Dragon benefits from its parent company’s broader rare earth and metals platform. That connection supports feedstock access, downstream integration and customer development.

EVs, Wind Turbines and Electronics Support Demand

Golden Dragon has been expanding magnet production in response to rapid growth across key application sectors. Demand continues to rise from wind turbines, consumer electronics, energy-saving motors, home appliances and new energy vehicles.

The demand outlook is especially important for high-performance NdFeB magnets. EV traction motors and direct-drive wind turbines require powerful, compact and efficient magnetic materials.

Energy-saving motors and smart appliances are also increasing magnet consumption. As efficiency standards rise, manufacturers need stronger magnetic materials to improve performance and reduce energy use.

Xiamen Tungsten’s 2025 results show the strength of this broader materials platform. The company’s revenue rose by 30.79% on the year to 46.26bn yuan, while profit increased by 34.89% to 2.3bn yuan.

Revenue from Xiamen Tungsten’s rare earths sector rose by 10% to 6bn yuan in 2025. This reflects continued demand for rare earth materials and magnet-related products despite growing competition in the sector.

For China’s rare earth value chain, Golden Dragon’s Baotou expansion reinforces a strategic advantage. China remains dominant not only in rare earth separation, but also in downstream magnet manufacturing, where industrial scale and customer qualification are difficult to replicate quickly.

The Metalnomist Commentary

Golden Dragon’s Baotou expansion shows that China is still building strength at the most valuable end of the rare earth chain. The strategic issue for global buyers is not only rare earth supply, but access to qualified magnet capacity at industrial scale.

China Antimony Market Stabilises as Chenzhou Mining Output Halts Tighten Supply Risk

Antimony

China antimony market conditions have stabilised after prices fell from late March, as production suspensions by major producer Chenzhou Mining raised expectations of tighter domestic supply. The market is now balancing potential output losses against weak downstream demand.

The China antimony market had been under pressure from soft buying in flame retardants and solar glass. But safety-related production halts at Chenzhou Mining subsidiaries have limited further downside and encouraged sellers to watch market developments more closely.

The China antimony market remains fragile because the supply shock is occurring in a demand environment that is still weak. Prices may hold steady in the near term, but a strong rebound looks difficult unless downstream consumption improves.

Chenzhou Mining subsidiaries Xinlong Mining and Zhazixi Mining suspended production and began safety inspections after fatal accidents at two sites. Xinlong Mining has 5,000 t/yr of antimony concentrate capacity, while Zhazixi Mining has 6,000 t/yr of antimony metal capacity.

Output Suspensions Create Short-Term Supply Support

The restart timeline for the suspended operations remains unclear. Some market participants expect the stoppages to last at least one month, potentially cutting overall domestic supply by around 15%.

That scale is important for antimony because China remains a central producer and processor of the metal. Any disruption at a major domestic producer can quickly affect market sentiment, especially when inventories are not evenly distributed across producers and traders.

Antimony metal prices have stabilised at 158,000-162,000 yuan/t ex-works after falling by 9,000 yuan/t since 31 March. Sellers are now less willing to cut offers aggressively while they wait to see how long the production suspensions last.

The supply issue also matters beyond China. Antimony is used in flame retardants, lead alloys, ammunition, cables, batteries, solar glass and other industrial applications. It has become more strategically sensitive as governments reassess critical mineral supply chains.

However, production halts alone do not guarantee a price rally. The market needs stronger buying interest to convert supply risk into sustained upward price movement.

Weak Demand Limits Price Recovery

Demand from flame retardant and solar glass sectors remains soft. This continues to offset the impact of lower production and keeps buyers cautious.

A Hunan-based producer said domestic demand is weak and that some producers still hold hundreds of tonnes of metal stocks. This suggests that inventories are still available, even if fresh supply becomes tighter.

Most antimony metal and trioxide producers appear to be facing similar conditions. Buyers are not rushing to restock because downstream consumption has not improved enough to justify aggressive procurement.

This creates a holding pattern. Sellers have a reason to resist further price cuts because supply may tighten. Buyers have a reason to wait because demand remains weak and existing stocks are still available.

For the antimony value chain, the next price signal will come from the duration of Chenzhou Mining’s suspensions. A short halt may only stabilise the market. A longer shutdown could gradually reduce available supply and strengthen sellers’ position.

Still, demand recovery remains the decisive factor. Without stronger orders from flame retardants, solar glass or other industrial users, the China antimony market is likely to remain stable rather than sharply higher.

The Metalnomist Commentary

The antimony market is showing how supply shocks behave differently when demand is weak. Chenzhou Mining’s output halts have created a floor, but the market needs real downstream restocking before supply risk becomes a stronger price driver.

Hoshine Silicon Output Falls as China Photovoltaic Demand Slows

Hoshine

Hoshine silicon output fell sharply in 2025 as weaker photovoltaic demand weighed on China’s largest silicon metal producer. The company produced around 1.45mn t of silicon metal during the year, down 22.3% from 2024.

Hoshine silicon output declined as downstream polysilicon and photovoltaic markets lost momentum. Sales also fell by 10.1% on the year to 1.11mn t, reflecting softer consumption from key solar supply-chain customers.

Hoshine silicon output remains important because the company is a major force in China’s silicon metal market. Its production trends provide a clear signal for supply conditions across aluminium alloys, organosilicon, polysilicon and photovoltaic materials.

China’s wider silicon metal production also weakened. National output fell by 11% on the year to around 4.20mn t in 2025, showing that the slowdown was not limited to one producer.

Polysilicon Weakness Hits Silicon Metal Demand

Polysilicon production fell sharply in 2025, reducing one of the key demand channels for silicon metal. China produced around 1.33mn t of polysilicon during the year, down 27.8% from 2024.

This decline reflects pressure across the solar manufacturing chain. Photovoltaic growth continued, but the pace slowed compared with the previous year.

China’s newly installed photovoltaic capacity reached around 31.7GW in 2025, up 14% from a year earlier. However, this was well below the 28% growth recorded in 2024.

That slowdown matters for silicon producers. Silicon metal is a critical feedstock for polysilicon, which is then used in solar wafers, cells and modules.

When polysilicon output falls, demand for silicon metal weakens quickly. Producers then face lower sales, inventory pressure and weaker pricing power.

Hoshine’s 2025 results show how tightly silicon metal is linked to solar-sector cycles. Even large producers with scale advantages are exposed when downstream photovoltaic demand slows.

Capacity Remains Large Despite Softer Market Conditions

Hoshine still operated at high capacity utilisation despite lower output. The company has 1.22mn t/yr of designed silicon metal capacity, with utilisation reaching 119.2% in 2025.

This indicates that Hoshine continued producing above nameplate capacity, even as output fell from the previous year. The company remains a dominant supplier in China’s silicon metal market.

Hoshine also had 1.73mn t/yr of designed organosilicon capacity by the end of 2025. Organosilicon remains another major downstream channel for silicon metal, serving construction, electronics, automotive, industrial and consumer applications.

The company also had 50,000 t/yr of polysilicon capacity and a further 350,000 t/yr under construction. This shows that Hoshine is still investing in downstream integration despite short-term market weakness.

The expansion strategy carries both opportunity and risk. Integrated silicon-to-polysilicon capacity can improve value capture when solar demand recovers. However, it can also increase exposure to oversupply if polysilicon markets remain weak.

For China’s silicon industry, the key issue is balance. Producers must manage large capacity bases while downstream photovoltaic growth becomes less explosive than in previous years.

The Metalnomist Commentary

Hoshine’s lower silicon output shows that solar-sector growth is no longer strong enough to absorb every upstream expansion. China’s silicon market now faces a more selective phase where cost control, downstream integration and demand timing will determine profitability.

Huahong Rare Earth Output Rises as NdFeB Scrap Recycling Supports Magnet Demand

Huahong Rare Earth

Huahong rare earth output increased sharply in 2025 as stronger demand from new energy vehicles, industrial automation and energy-saving motors lifted China’s rare earth recycling and magnet supply chain. Zhejiang Huahong Technology produced 8,794t of rare earth oxides during the year, up 71% from 2024.

Huahong rare earth output growth was also supported by tighter rare earth supply conditions in China. Stricter government controls on mining, processing and production capacity helped lift prices and encouraged stronger output from qualified oxide and magnet producers.

Huahong rare earth output is strategically important because the company recovers rare earth oxides from neodymium-iron-boron scrap. This recycling route gives China another feedstock source for magnet production at a time when primary supply, mining quotas and scrap availability remain sensitive.

Sales of rare earth oxides rose by 57% to 9,165t in 2025, while inventories increased by 7% to 359t. The figures show that downstream demand remained strong enough to absorb most of the company’s higher oxide output.

NdFeB Scrap Recycling Gains Value Under Tighter Rare Earth Supply

Huahong operates three production bases for NdFeB scrap recycling: Ji’an Xintai, Jishui Jincheng and Jiangxi Wanhong. Together, these sites have 12,000 t/yr of rare earth oxide capacity using neodymium-iron-boron scrap as feedstock.

This recycling capacity matters because magnet scrap is becoming a strategic rare earth resource. NdFeB magnets contain neodymium, praseodymium and, in higher-performance grades, heavy rare earths such as dysprosium and terbium.

Recovering these materials from scrap can reduce dependence on mined feedstock and improve supply efficiency. It also supports China’s circular rare earth strategy, especially as demand from electric vehicles, robotics and industrial motors rises.

Market participants said some oxide plants are facing shutdowns or output restrictions because their capacity exceeds government standards. Tighter mining quotas, limited spot availability and higher NdFeB scrap costs have also created pressure in the oxide market.

These conditions favour producers with approved capacity and secure scrap channels. Huahong’s stronger oxide output suggests that recycled feedstock is becoming more important in balancing China’s rare earth supply chain.

The company’s revenue rose by 41% to 7.83bn yuan in 2025, while profit increased by 157% to 204mn yuan. The profit growth shows how higher rare earth prices and stronger magnet demand improved margins across the business.

High-Performance Magnet Demand Drives Capacity Expansion

Huahong’s rare earth magnetic materials output rose by 27% to 15,791t in 2025. Sales increased by 19% to 14,035t, while inventories rose by 29% to 1,042t.

The growth reflects rising demand for high-performance magnets in new energy vehicles, industrial robots, automation systems and energy-saving motors. These sectors require magnets with stronger magnetic performance, thermal stability and reliability.

China produced 16.6mn new energy vehicles in 2025, up 29% from a year earlier. NEV sales rose by 28% to 16.5mn units, supporting demand for high-performance NdFeB magnets used in traction motors, pumps, sensors, braking systems and other vehicle components.

Huahong said high-performance NdFeB magnetic materials accounted for around 42% of China’s total magnet output last year. That share is likely to remain important as vehicles become more electrified, automated and motor-intensive.

Industrial robots also supported magnet demand. Global industrial robot output exceeded 600,000 units in 2025, with compound annual growth above 10%. Robotics growth increases demand for compact, efficient and high-torque motor systems.

Huahong plans to start trial operations at the first phase of its Baotou facility in May-June 2026. The first phase will add 10,000 t/yr of high-performance magnet capacity.

Once the first phase comes on line, Huahong’s total high-performance magnet capacity will reach 20,000 t/yr. This positions the company more deeply in the downstream magnet chain, not only in rare earth oxide recycling.

The expansion shows how China’s rare earth industry is moving toward integrated recycling, oxide production and magnet manufacturing. Companies with access to scrap feedstock and downstream magnet capacity may be better positioned as rare earth supply becomes more regulated.

The Metalnomist Commentary

Huahong’s growth shows that rare earth recycling is no longer a secondary supply story. As NEV and robotics demand rises, NdFeB scrap recovery is becoming a strategic feedstock route for China’s high-performance magnet industry.

China Copper Trading Slows as Invoice Crackdown Hits Market Liquidity

China Copper

China copper trading has slowed as tax authorities intensify enforcement against circular invoicing and fraudulent metals trades. The crackdown is targeting the so-called invoice-driven economy, where companies use invoices to support fabricated or partly fabricated transactions.

China copper trading has been affected more than other non-ferrous metals because copper carries strong financial attributes. Many traders use copper invoices to support bank financing, revenue reporting and liquidity management.

China copper trading is now facing tighter scrutiny after eight government bodies, including the State Taxation Administration, held a meeting in Beijing on 16 April to co-ordinate action against tax-related crimes. Since then, inspections of trading firms have intensified nationwide.

The enforcement push is not designed to restrict normal physical trade. However, it can still reduce market activity if companies lose invoice quotas or if compliant sales become harder to process.

Copper Finance Channels Face Tighter Tax Scrutiny

The invoice-driven economy refers to irregular practices built around fapiao issuance. These can include fake transactions, inflated trade flows, tax rebate abuse and revenue manipulation.

Some companies have used these invoices to improve apparent financial performance. Others have used them to support bank loans or bond issuance by showing higher trading volumes.

Tax authorities are now cutting invoice quotas for companies that issue non-compliant invoices. In severe cases, quotas can be reduced to zero, effectively stopping firms from conducting trading activity.

This directly affects metals traders. Without sufficient invoice capacity, even legitimate transactions may be delayed or cancelled because invoices are required to complete normal commercial sales.

Copper is especially exposed because it is often used in financing structures. Its high value, liquidity and benchmark status make it attractive for invoice-backed funding.
As inspections spread, some downstream copper consumers are shifting away from traders and buying spot material directly from smelters. This reduces the role of intermediary trading firms in the physical market.

Traders’ spot offers have become firmer because sales volumes have fallen sharply. This does not necessarily mean physical copper demand is stronger. It reflects tighter trading channels and reduced willingness to sell under compliance pressure.

The crackdown could also reduce spot availability. If traders cannot issue enough invoices, some material may not move even when buyers and sellers are willing to transact.

Export Controls and Compliance Pressure Spread Beyond Copper

The compliance push is not limited to copper. China’s customs authorities have also increased enforcement against companies without export qualifications that forge or illegally purchase customs clearance certificates.

Magnesium traders said this enforcement is expected to reduce lower-priced material in the export market. Illegal magnesium exports typically evade value-added tax and income tax, allowing prices to sit $80-100/t below authorised trade.

The authorities began targeting these violations last October. The latest enforcement suggests China is tightening control over both domestic invoicing and export documentation.

This matters for industrial metals because trade flows often depend on paperwork as much as physical availability. Invoices, tax records, customs certificates and export qualifications are now becoming more important parts of market access.

For compliant producers and traders, stricter enforcement could improve market discipline. It may reduce unfair competition from firms using illegal invoicing or tax evasion to offer lower prices.

For buyers, the impact may be more complicated. Reduced informal trade can tighten availability, lift transaction costs and push more demand toward qualified suppliers.
The broader market meaning is clear. China’s metals trade is becoming more compliance-driven. This may reduce speculative or financing-led activity, but it can also lower liquidity in the short term.

For copper, the immediate effect is weaker trading activity and a shift toward smelter-direct purchasing. For magnesium and other export markets, the effect may be less low-priced material and tighter documentation requirements.

The Metalnomist Commentary

China’s invoice crackdown shows that metals liquidity can tighten even without a physical supply shock. Copper’s financing role makes it especially vulnerable, and the wider compliance push could reshape how traders, smelters and exporters manage metal flows.

CMOC Copper Output Rises as DRC Mines Strengthen China Supply

CMOC

CMOC copper output increased in the first quarter of 2026 as higher production from the company’s Democratic Republic of Congo copper-cobalt mines lifted supply. The Chinese diversified metals producer produced 187,880t of copper in January-March, up 10% from a year earlier.

CMOC copper output was supported by stronger production at the Tenke Fungurume and Kisanfu mines. These assets are central to China’s copper and cobalt feedstock security because they supply large volumes of cathode and intermediate material from one of the world’s most important copper-cobalt districts.

CMOC copper output is expected to remain a major market focus this year. The company is targeting 760,000-820,000t of copper production in 2026, after producing 741,100t in 2025.

The result reinforces the DRC’s role as China’s largest imported copper cathode source. China imported 275,359t of copper cathode from the DRC in the first quarter, equal to 37.5% of total imports.

Tenke and Kisanfu Anchor CMOC’s Copper Growth

CMOC’s first-quarter copper growth reflects the scale and strategic importance of its DRC operations. Tenke Fungurume and Kisanfu remain core assets for the company’s copper-cobalt portfolio.

The company plans to expand output at Kisanfu by adding 100,000 t/yr of copper cathode capacity. Completion is targeted for 2027.

The expansion could also lift cobalt capacity. CMOC has not disclosed the planned increase, but market participants expect Kisanfu’s cobalt capacity to rise by more than 30,000 t/yr.

This matters because copper and cobalt are increasingly linked in DRC project economics. Higher copper output can bring additional cobalt units into the market, depending on ore composition, processing rates and export rules.

The London Metal Exchange approval of CMOC’s TFM-1 copper cathode brand adds another layer of market significance. The brand, produced at Tenke Fungurume, was approved for listing on 27 March and has a registered production capacity of 270,000 t/yr.

Exchange approval improves brand visibility and market acceptance. It can also support trade liquidity, financing and customer confidence for DRC-origin copper cathode.
China’s copper cathode import structure shows why this is important. The DRC already supplies more than one-third of China’s imported cathode, making Congolese supply critical to Chinese refined copper availability.

The China grade-A copper cathode premium was steady at $55-70/t cif Shanghai on 23 April. The range narrowed from $55-75/t a week earlier, showing a relatively stable but cautious spot market.

Cobalt Output Stays Flat as Quotas Restrict Feedstock Flows

CMOC’s cobalt production was largely unchanged in the first quarter. The company produced 30,508t of cobalt, up only 0.3% from a year earlier.

The company set its 2026 cobalt output guidance at 100,000-120,000t. That is broadly stable against 117,549t produced in 2025.

The flat cobalt outlook reflects a more complicated market. The DRC suspended cobalt feedstock exports from 22 February to 15 October 2025 before moving to a quota-based export system for the fourth quarter of 2025 and for 2026-27.

Administrative delays have slowed the quota system. The DRC extended fourth-quarter 2025 quotas to 31 March 2026 because of slow processing.

The effect on Chinese imports has been severe. China imported only 1,278t cobalt metal equivalent of cobalt intermediate feedstock in January-February, down 96% from a year earlier.

Cobalt hydroxide prices remained stable at $25.95-26.10/lb cif China on 23 April. But the stability masks a market still shaped by restricted DRC export flows, delayed allocations and uncertainty over quota administration.

For CMOC, the copper side of the portfolio is showing clear growth. The cobalt side remains more exposed to policy risk, export controls and administrative timing in the DRC.

The Kisanfu expansion could increase future cobalt availability, but the market impact will depend on whether DRC export rules allow material to move smoothly to downstream refiners.

The Metalnomist Commentary

CMOC’s first-quarter results show that DRC copper remains essential to China’s refined copper supply, while cobalt is increasingly constrained by policy rather than production alone. The strategic issue is no longer just mine output, but whether export quotas, brand approvals and logistics can keep critical metal flows moving.

HBIS Silico-Manganese Tender Prices Fall as China Steel Demand Weakens

Silico-Manganese

HBIS silico-manganese tender prices fell in April as weaker steel demand and higher spot alloy availability pressured China’s bulk alloy market. Hebei Iron and Steel cut its tender price for 65/17 grade silico-manganese to 6,300 yuan/t delivered and paid by acceptance bill.

The latest HBIS silico-manganese tender prices were down by 250 yuan/t from the previous tender. The state-owned steel producer increased April purchase volumes to 8,500t, up by 3,400t from its previous buying round.

HBIS silico-manganese tender prices are closely watched because they help set the tone for China’s manganese alloy market. The lower tender confirms that steel mills are using weak downstream demand and larger spot availability to push procurement costs lower.

The cut also reflects pressure from rising steel inventories. China Iron and Steel Association members held 18.63mn t of steel inventories as of 20 April, up 6.4% from early April and 12% from a year earlier.

Oversupply Weighs on Alloy Prices Despite Higher Tender Volumes

China’s domestic 65/17 silico-manganese alloy prices fell to 6,000-6,150 yuan/t ex-works on 23 April. This was down from 6,100-6,300 yuan/t on 9 April.

The price decline reflects continued oversupply in the market. Higher inventory pressure has limited the ability of alloy producers to defend prices, even when some steel demand shows signs of recovery.

HBIS’ higher purchase volumes gave the market some support, but not enough to reverse price direction. Buyers remain cautious because steel inventories are still elevated and construction demand has not yet fully recovered.

Some market participants are more optimistic about the steel outlook. Construction and infrastructure demand are expected to resume gradually, while domestic and seaborne steel demand improved in mid-April.

Chinese steel mills also lifted production slightly during that period. If steel output continues to rise, silico-manganese consumption could improve because the alloy is widely used in steel deoxidation and strengthening.

However, the recovery remains uneven. The higher HBIS buying volume suggests some restocking need, but the lower price shows that mills still hold negotiating power.

Ore Costs and Output Curbs Limit Downside Pressure

Many silico-manganese plants kept firm offers despite weaker spot prices. Higher manganese ore feedstock costs continue to support producer cost floors.

Output curbs at several large alloy producers in north China also helped limit deeper declines. Reduced production can help balance supply if demand recovers, but current inventory pressure remains the larger problem.

The market is therefore caught between two opposing forces. Weak steel demand and alloy oversupply are pushing prices lower, while ore costs and production curbs are preventing a sharper collapse.

This tension is typical of bulk alloy markets. Producers cannot easily cut prices below cost for long, but buyers can delay purchases when inventories are high and demand is uncertain.

For steelmakers, lower silico-manganese tender prices provide some cost relief. For alloy producers, the main challenge is preserving margins while feedstock prices remain firm.

The next market signal will come from whether steel demand improves enough to absorb alloy inventories. Without clearer consumption growth, manganese alloy prices may remain under pressure even if ore costs stay elevated.

The Metalnomist Commentary

HBIS’ tender cut shows that China’s silico-manganese market is still demand-led, despite higher ore costs. A real recovery will require stronger steel consumption and inventory drawdowns, not only higher tender volumes.

XTC New Energy LFP LMFP Capacity Expansion Targets Higher-Density Battery Materials

XTC New Energy

XTC New Energy LFP LMFP capacity will expand in Sichuan as the Chinese battery materials producer adds another 40,000 t/yr of lithium iron phosphate and lithium ferro-manganese phosphate production. The second-phase project will be built in Ya’an city and is expected to start production in June 2028.

XTC New Energy LFP LMFP capacity at the Ya’an plant will reach 80,000 t/yr after both phases are completed. The first phase already provides 40,000 t/yr of LFP capacity, while the new phase will add flexible LFP and LMFP output.

XTC New Energy LFP LMFP capacity expansion reflects China’s continued investment in lower-cost and manganese-enhanced battery chemistries. The project will be operated by subsidiary Ya’an XTC New Energy, with total investment expected at 743mn yuan.

The move comes as Chinese battery material producers position for growing power battery demand and greater interest in manganese-based cathode active materials.

LMFP Gains Momentum as Producers Seek Better Energy Density

LMFP is gaining attention because it can offer higher energy density than conventional LFP. This makes it attractive for battery makers seeking to improve driving range while keeping costs below higher-nickel chemistries.

However, LMFP still faces trade-offs. Batteries using LMFP cathode active material generally have shorter cycle life and lower charge-discharge efficiency than LFP batteries.

This means LMFP is not a simple replacement for LFP. Instead, it is likely to develop as a complementary chemistry for applications where higher energy density is more valuable than maximum cycle life.

The expansion also shows how manganese is becoming more important in battery materials. Manganese-based chemistries can reduce reliance on more expensive or supply-sensitive metals while supporting performance improvements.

For XTC, adding LMFP capacity gives the company more flexibility. It can serve established LFP demand while preparing for customers that want manganese-enhanced phosphate materials.

China’s Cathode Supply Chain Expands Into Manganese-Based Materials

XTC is not alone in expanding LMFP capacity. Several Chinese battery material producers are adding or building manganese-based phosphate projects.

Ningxia Hengchuang Nami began building the first phase of a 30,000 t/yr LMFP plant in Yinchuan in March. Hunan Yuneng, China’s largest LFP producer, is also building an LMFP materials plant.

Jiangxi Greatpower launched the first phase of a 20,000 t/yr LMFP plant in Pingxiang in January. These projects show that China’s battery materials industry is preparing for broader adoption of LMFP.

The trend is strategically important for the cathode supply chain. LFP has already become a major chemistry in electric vehicles and energy storage because of its cost advantage, safety and long cycle life.

LMFP could extend that platform by adding more energy density while preserving some of LFP’s cost and safety benefits. If technical limitations improve, LMFP may become a larger part of China’s battery chemistry mix.

For raw materials, the shift could support manganese demand in battery applications. It also reinforces China’s lead in scaling new cathode chemistries from pilot production to industrial capacity.

The Metalnomist Commentary

XTC’s Ya’an expansion shows that China’s battery materials race is moving beyond simple LFP scale. LMFP is becoming a serious development path because it offers a practical route to higher energy density without fully moving into costlier high-nickel systems.

Yunnan Germanium Output Falls as Downstream Wafer Demand Absorbs Metal

Germanium

Yunnan Germanium output of raw material-grade germanium available for external sales fell in 2025 as the company redirected more metal into internal downstream production. The shift reflects stronger demand from photovoltaic wafers, optical fibre materials and compound semiconductor products.

Yunnan Germanium output for external raw material-grade germanium sales fell by 13% to 29.7t metal equivalent. The figure excludes 68.95t used for internal consumption and third-party processing.

Yunnan Germanium output therefore signals a change in material allocation rather than simple production weakness. More germanium units are being retained inside the company’s higher-value product chain instead of being sold as raw material.

Revenue rose by 38% to 1.07bn yuan, supported by higher prices for raw germanium, optical fibre materials, PV germanium products, infrared products and semiconductor products.

PV and Optical Fibre Demand Pull Germanium Into Internal Processing

Yunnan Germanium nearly doubled production of 4-6 inch PV-grade germanium wafers in 2025. Output rose to 909,000 pieces from 491,400 pieces a year earlier.

This growth is strategically important because germanium wafers serve high-efficiency photovoltaic applications. Stronger wafer output means more raw germanium is being converted into higher-value products rather than sold into the merchant market.

Optical fibre materials also expanded. Output of optical fibre-grade germanium tetrachloride rose to 39.8t from 27t, showing stronger demand from communications infrastructure and optical transmission markets.

Infrared-grade germanium raw material output fell by 28% to 4.77t metal equivalent. However, production of infrared lenses and optical systems rose sharply to 4,717 sets from 1,828 sets.

That mix shows deeper downstream processing. The company reduced some raw infrared material output but increased finished optical systems, capturing more value further along the chain.

For germanium buyers, the key issue is external availability. When China’s largest germanium producer consumes more material internally, less raw metal is available for third-party customers.

Indium Phosphide Expansion Strengthens Compound Semiconductor Push

Yunnan Germanium also increased indium phosphide wafer output in 2025. Production of 2-4 inch InP wafers rose by 55% to 100,100 pieces.

In contrast, gallium arsenide wafer production declined by 13% to 76,300 pieces. This shows a shift in compound semiconductor emphasis toward InP, where demand is rising from advanced optical and semiconductor applications.

The company plans to keep increasing PV-grade germanium wafer and indium phosphide wafer output in 2026. It also plans to reduce infrared product output.

Yunnan Germanium targets 73t metal equivalent of raw material-grade germanium products in 2026, including internal use and third-party processing. It also plans to produce 1.45mn pieces of 4-6 inch equivalent PV-grade wafers and 180,000 pieces of 2-6 inch InP wafers.

The company also plans to produce 35t of optical fibre-grade germanium tetrachloride, 80,000 pieces of 3-6 inch GaAs wafers, 3t of infrared-grade germanium raw materials and 8,000 sets of infrared lenses and optical systems.

The planned 188.56mn yuan investment to expand high-quality InP single-crystal wafer capacity reinforces this strategy. Yunnan Germanium is moving from raw germanium supply toward integrated semiconductor and photonics material production.

The Metalnomist Commentary

Yunnan Germanium’s lower external metal output should not be read as weak demand. It shows that strategic germanium producers are capturing more value internally, tightening merchant supply while expanding into PV, optical fibre and InP wafer markets.

Shenglong Molybdenum Concentrate Auction Prices Rise on Firmer Alloy Demand

Shenglong Mining

Shenglong molybdenum concentrate auction prices rose sharply as Chinese alloy producers showed stronger demand for feedstock ahead of early May holidays. The state-owned Henan mining company sold 45% and 50% grade molybdenum concentrate above its starting price, surprising many market participants.

Shenglong molybdenum concentrate auction prices were settled across 10 rounds of bidding. The company sold 390t of 45% grade concentrate at 4,705-4,715 yuan/mtu ex-works and 420t of 50% grade concentrate at 4,725-4,750 yuan/mtu ex-works.

Shenglong molybdenum concentrate auction prices increased from the company’s starting level of 4,540 yuan/mtu. The latest result was also higher than its previous sale on 8 April, when Shenglong sold 810t of 45% grade concentrate at 4,535-4,550 yuan/mtu.

The auction result matters because molybdenum concentrate pricing influences ferro-molybdenum production costs and steel alloy procurement. Stronger concentrate values suggest that alloy producers are rebuilding feedstock positions or responding to firmer downstream demand.

Ferro-Molybdenum Buyers Watch Steelmaker Tenders

Market participants are now watching upcoming ferro-molybdenum alloy tenders from steelmakers. These tenders will help determine whether the concentrate rally can move further downstream into alloy prices.

Domestic prices for 45% grade molybdenum concentrate rose to 4,700-4,730 yuan/mtu ex-works. The increase followed higher offers from major mining companies and stronger buying interest from alloy producers.

The timing is important. Buyers are assessing demand before the 1-5 May holiday, when trading activity and logistics can slow. Some alloy producers may prefer to secure material early if they expect steel mill demand to remain firm.

Molybdenum is a critical alloying element for special steel, stainless steel, energy equipment, chemical processing, aerospace and defence applications. It improves strength, corrosion resistance and high-temperature performance in demanding industrial environments.

Stronger molybdenum concentrate prices therefore indicate more than short-term bidding strength. They reflect confidence that alloy producers still need raw material despite earlier uncertainty in steel demand.

Shenglong’s Resource Base Strengthens Market Influence

Shenglong holds one of China’s most important molybdenum resource positions. The company held five large- and medium-sized molybdenum mining rights as of 2024, including four mining rights and one exploration right.

Its molybdenum reserves reached 710,500t metal equivalent in 2024. That represented about 9.1% of China’s national molybdenum resource reserves.

This reserve base gives Shenglong strong influence in domestic concentrate supply. Auction prices from major producers can shape market sentiment because downstream alloy plants use them as a reference for procurement decisions.

The company’s recent listing also increases its market visibility. Shenglong obtained approval for its initial public offering from the Shenzhen Stock Exchange in late December 2025 and listed on the main board on 31 March 2026.

For China’s molybdenum market, Shenglong’s pricing strength points to tighter feedstock availability or stronger alloy demand. The next signal will come from steelmaker ferro-molybdenum tenders, which will show whether higher concentrate costs can be passed through.

The Metalnomist Commentary

Shenglong’s auction result shows that molybdenum feedstock sentiment has turned firmer than many expected. The key test is whether steelmaker tenders confirm real downstream demand or expose the rally as pre-holiday restocking.

Lopal Marble Bar Lithium Project Deal Extends Chinese Battery Material Supply Strategy

Lopal

Lopal Marble Bar lithium project acquisition will give China’s battery cathode material producer Lopal Tech another upstream position in Western Australia’s lithium sector. The company has agreed to acquire the Marble Bar project from Global Lithium Resources for A$14.85mn.

The Lopal Marble Bar lithium project is located in the Pilbara region of Western Australia. The project has an estimated resource of 18mn t grading 1.0% lithium oxide.

The Lopal Marble Bar lithium project deal reflects a continuing push by Chinese battery material producers to secure upstream lithium resources. Cathode and battery material companies are looking beyond processing capacity and moving closer to mine supply.

This matters because lithium raw material security remains central to battery supply chains. Even as lithium prices fluctuate, companies with long-term access to spodumene resources can better protect conversion plants, cathode output and customer supply.

Marble Bar Adds Pilbara Resource Exposure

The Marble Bar project gives Lopal direct exposure to a known lithium-bearing region. Western Australia remains one of the world’s most important hard-rock lithium supply bases, with spodumene projects feeding converters and battery material producers across Asia.

The project’s 18mn t resource at 1.0% lithium oxide gives Lopal a potential raw material position, although the acquisition price suggests the asset is still at an early development stage.

For Global Lithium Resources, the sale allows the company to focus more heavily on its larger Manna lithium project. Manna has a resource estimate of 52mn t grading 1.0% lithium oxide.

This creates a clearer portfolio structure. Lopal gains Marble Bar, while GL1 retains its larger Manna asset and existing downstream-linked partnerships.

The transaction also shows that Chinese battery material producers remain willing to invest in Australian lithium assets despite market volatility. Long-term supply security continues to matter more than short-term price weakness.

Manna Links Lopal to Future Offtake Supply

Lopal already has exposure to GL1 through the Manna project. It holds a 5% equity interest in Manna and has signed an offtake agreement to buy 40% of the project’s output.

China’s Canmax has agreed to take another 30% of Manna’s output and also holds a 9.45% stake in GL1. Australian lithium miner Mineral Resources owns 9.85% of GL1.

These relationships show how lithium supply chains are being structured around equity stakes and offtake agreements. Battery material companies want secured feedstock before projects enter production.

For Lopal, the Marble Bar acquisition adds another layer to its Australian lithium strategy. It gives the company project ownership while maintaining future offtake exposure through Manna.

The broader industrial meaning is clear. Chinese battery material producers are not relying only on spot markets. They are building upstream positions, offtake rights and strategic relationships to support long-term lithium chemical and cathode material supply.

The Metalnomist Commentary

Lopal’s Marble Bar deal shows that lithium strategy is shifting from price speculation to resource control. Even in a weaker lithium market, Chinese battery material companies continue to secure upstream positions that can support future conversion and cathode supply.

Zhangyuan Tungsten Sales Rise as Manufacturing Demand Supports Downstream Products

Zhangyuan Tungsten

Zhangyuan tungsten sales increased in 2025 as robust manufacturing demand lifted shipments of tungsten powder, tungsten carbide and cemented carbide products. The Chinese producer sold 4,928t of tungsten powder during the year, up 24% from 2024.

Zhangyuan tungsten sales also rose across higher-value downstream products. Tungsten carbide sales increased by 18% to 5,812t, while cemented carbide sales climbed by 20% to 1,363t.

Zhangyuan tungsten sales show that demand for cutting tools, industrial components and hard materials remained firm even as raw material prices corrected from record highs. The result highlights the importance of downstream tungsten products in China’s manufacturing supply chain.

Cemented carbide bar sales rose by 16% to 893t. Cemented carbide cutter sales also recovered strongly, reversing a 3% decline in the first half of 2025 to end the year up 22% at 27.11mn pieces.

Downstream Capacity Outpaces Internal Concentrate Supply

Zhangyuan has significant downstream tungsten capacity. The company has nameplate capacity of 12,000 t/yr of ammonium paratungstate, 15,000 t/yr of tungsten powder and 13,000 t/yr of tungsten carbide.

That scale makes the company a major consumer of tungsten raw materials. Its own tungsten concentrate output is not enough to meet internal demand, so it relies on external feedstock including APT and tungsten concentrate.

Zhangyuan produced 3,691t of tungsten concentrate in 2025, down slightly by 48t from a year earlier. This small decline reinforces the company’s dependence on purchased raw materials to support its downstream operations.

The operating structure matters because tungsten producers with strong downstream demand still face raw material exposure. Concentrate and APT availability can affect margins, procurement timing and product pricing.

Tungsten is strategically important for cemented carbide tools, drilling equipment, machining, aerospace, defence, electronics and high-performance industrial applications. Stronger sales from Zhangyuan therefore reflect continued demand from China’s manufacturing base.

Price Correction Slows Feedstock Buying After Record Highs

Zhangyuan lowered its term bidding price for 55% tungsten concentrate to 845,000 yuan/t for the second half of April, down from 930,000 yuan/t in the first half of the month. Its APT bidding range also fell to 1.35mn yuan/t from 1.44mn yuan/t.

The move reflected a wider correction in China’s tungsten market. Prices for 65% wolframite concentrate fell sharply after reaching record highs in March, while APT prices also declined over the same period.

Market participants reported limited spot deals and fewer term deliveries. Buyers slowed feedstock purchases because they expected further downward price corrections after the earlier price surge.

This creates a short-term tension in the tungsten chain. Downstream demand remains supported by manufacturing activity, but raw material buyers are cautious because prices moved too far too quickly.

For Zhangyuan, the key challenge is balancing strong downstream sales with disciplined feedstock procurement. If raw material prices continue to fall, margins may improve for processors that avoid overbuying at peak levels.

The broader market signal is clear. Tungsten demand remains industrially strong, but price volatility can disrupt buying behaviour across the concentrate, APT, powder and carbide chain.

The Metalnomist Commentary

Zhangyuan’s results show that China’s tungsten demand is being driven by downstream manufacturing, not only raw material speculation. The price correction may cool feedstock buying, but cemented carbide and cutting tool demand still point to tungsten’s strategic role in industrial production.

XFH Anode Material Sales Rise as China Battery Demand Expands

Anode Material

XFH anode material sales increased in 2025 as demand from China’s lithium-ion power battery and energy storage battery industries continued to grow. Shanghai XFH Technology sold 83,885t of anode materials during the year, up 22% from 2024.

XFH anode material sales outpaced production growth, showing stronger downstream offtake from battery manufacturers. The company’s anode material output rose by 11% on the year to 83,426t.

XFH anode material sales also lifted revenue. The company’s anode material revenue rose by 21% to 1.7bn yuan, supported by higher shipment volumes into battery supply chains.

The result reflects continued expansion in China’s battery ecosystem. Power battery shipments exceeded 1,000GWh in 2025, up by more than 50% from a year earlier, while energy storage battery shipments rose by 85% to 630GWh.

Suining Complex Expands XFH’s Anode Capacity

XFH increased anode material production capacity to 114,660 t/yr in 2025, up 27% from the previous year. The increase followed the production launch of its 60,000 t/yr complex in Suining, Sichuan province, at the end of 2025.

The new capacity gives XFH more room to serve fast-growing battery demand. Anode materials are a core input for lithium-ion batteries, influencing charging performance, cycle life, safety and energy density.

China’s rapid growth in power batteries and storage batteries is driving expansion across the anode supply chain. Producers are adding capacity to meet demand from electric vehicles, grid storage, industrial storage systems and consumer battery applications.

The Suining project also strengthens XFH’s position in a market where scale, cost control and customer qualification are critical. Larger capacity can improve operating efficiency, but it also requires stable demand to avoid inventory and pricing pressure.

Energy Storage Growth Supports Anode Demand

Energy storage is becoming an increasingly important driver for China anode materials. Storage battery shipments grew faster than power batteries in 2025, rising by 85% from a year earlier.

This matters because energy storage systems require large volumes of battery materials even when they have different performance priorities from electric vehicles. Cost, cycle life, safety and supply reliability are especially important in storage applications.

Power battery demand remains the largest driver. China’s battery shipments above 1,000GWh show the scale of the domestic EV and battery manufacturing base.

For anode producers, the opportunity is large but competitive. Demand growth supports shipments, but capacity expansion across China can still create margin pressure if supply grows faster than customer orders.

XFH’s stronger sales and output show that qualified anode producers remain tied closely to downstream battery expansion. The next challenge will be maintaining utilisation and profitability as China’s battery materials sector continues to scale.

The Metalnomist Commentary

XFH’s growth shows that China’s battery materials chain is still expanding quickly, especially in anodes. However, rising capacity means producers must compete on qualification, cost and customer access, not only shipment growth.