Latest Update in the China Rare Earth Salts Market

The dollar rose and hit its highest level in nearly three weeks against a basket of currencies on Thursday after data showed U.S. retail sales unexpectedly increased in August, easing some concerns about a sharp slowdown in economic growth.

Shanghai nonferrous metals closed with mixed performance, and the power rationing policy has been intensified in several places, potentially pushing up metal prices.

DCE iron ore futures market continued falling trends and I2201 recorded new low of 660yuan/mt. Quotations in the physical port stock market declined by 30-35yuan/mt in the morning, some traders tended to clinch deals while others showed little enthusiasm in offering prices given the higher costs.

Inventories of rebar across Chinese steel makers and social warehouses stood at 10.28 million mt as of September 16, down 418,100 mt or 3.90% from a week earlier. Stocks are down 1.06 million mt or 9.3% from a year earlier.

According to SMM survey, Guizhou Provincial Energy Bureau recently issued a notice on an orderly power utilisation plan in Guizhou Province in 2021, stating that the plan was formulated to actively respond to the power supply tension that may occur in local regions and ensure the safe and stable operation of the Guizhou power grid.

The total crude steel output from January to July increased significantly year-on-year in the above mentioned regions. Guangxi, Guangdong, and Jiangsu issued notices to implement the dual control of energy consumption, and the total crude steel output in 2021 is stimulated to be no higher than that in 2020.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on September 16, 2021

The stocks of aluminium billet in five major consumption areas rose by 3,300 mt to 148,800 mt on Thursday September 16 from the previous week, an increase of 2.3%.