Precious metals staged their first coordinated rally in nearly two weeks on Tuesday as the prospect of a diplomatic resolution to the U.S.-Iran conflict continued to lift market sentiment and weaken the dollar.

Silver has seen one of the sharpest pullbacks in recent years within just a few weeks. From the high of US$97.30 on March 2, the price fell to US$61.21 by March 23, losing around 37%. For the market, this was an abrupt break from the previous momentum.

SMM News, March 26: The most-traded SHFE lead 2605 contract opened at 16,505 yuan/mt during the day. Prices edged down slightly in early trading, then fluctuated rangebound within the 16,425-16,460 yuan/mt range, with an intense tug-of-war between longs and shorts. As downstream battery enterprises showed low willingness to restock and consumption remained weak, SHFE lead fell further in the afternoon session, hitting a low of 16,385 yuan/mt, before rebounding slightly near the close to end at 16,460 yuan/mt. It posted a small bearish candlestick, down 35 yuan/mt, with a gain of 0.21%. On the supply side, quotes for primary lead smelter cargoes self-picked up from production site held steady, while secondary lead producers held prices firm, leading to tight circulating cargoes. On the demand side, downstream players remained on the sidelines, with long-term contract and purchasing as needed proceeding in parallel. SMM expects lead prices to maintain a sideways movement in the short term. Data source statement: Except for public information, all other data is derived by SMM through processing based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute decision-making advice.

This week, prices in the second-life battery market were generally stable, while the market's structural divergence remained evident. Cost side, trends in various raw materials diverged, with overall costs rising slightly. Lithium carbonate prices increased, pushing up battery cell recycling and processing costs; nickel sulphate and cobalt sulphate prices remained stable, easing one-sided cost pressure, and costs edged up mildly over the week. Supply side, supply of popular energy storage battery cell models was tight, with limited spot availability; conventional models were sufficiently available, and no broad-based shortage emerged in the market. Demand side, the gap between energy storage and the EV market remained wide. Demand in the EV sector stayed sluggish, with low purchasing enthusiasm and insufficient support for prices; energy storage demand remained the mainstay of the market, with stable rigid demand. However, prices were currently at high levels, downstream purchasing became more rational, willingness to purchase at high prices declined, and further price increases were currently facing resistance.

Dalian iron ore was generally weak today. The most-traded contract, I2605, finally closed at 806.5 yuan/mt, down 1.83% from the previous trading session. Spot prices fell by about 10-15 yuan from the previous trading day. Traders actively offered quotes, while steel mills mainly made inquiries and purchases based on rigid demand, with cautious inquiries; overall, the spot market trading atmosphere was average. According to the latest SMM survey data, hot metal daily average production reached 2.4049 million mt this week, an increase of 15,000 mt WoW, with demand showing a steady improvement. In terms of supply, some iron ore originally planned for shipment to the Middle East began to be redirected to the Chinese market, including some ore grades used for direct reduced iron (DRI), increasing market supply options and putting some pressure on prices. From a macro perspective, the situation in the Middle East remained tense, and the escalation of war triggered a sharp rise in energy prices, driving up global inflationary pressure. Expectations for US dollar interest rate cuts weakened significantly, leading to a certain pullback in commodity prices, including iron ore prices. Overall, iron ore prices faced strong resistance in the short term, but downside room was limited, and the market is expected to continue moving in a sideways range.

[SMM Silicon-Based PV Morning Meeting Summary] Silicon Metal: Spot silicon metal prices remained in a stalemate consolidation. Yesterday, SMM east China oxygen-blown #553 silicon was at 9,100-9,300 yuan/mt, and #441 silicon at 9,300-9,500 yuan/mt, unchanged from the previous day. The quote center of some silicon enterprises was slightly lower than that of trading firms engaging in both spot and futures market, while downstream users mainly transacted at lower prices, and overall market trading activity was subdued. Polysilicon: N-type recharging polysilicon was quoted at 38-47 yuan/kg. Polysilicon prices continued to decline somewhat recently, mainly affected by market sentiment and inventory clearance by some leading enterprises. At present, low-priced polysilicon has already fallen below the cost line of some manufacturers, and the sentiment to hold quotes firm has strengthened somewhat. The upstream market was also still watching wafer price movements.