This week, ferrous metals were in the doldrums. The main logic during the week remained weakening cost support. On Tuesday, Iran proposed charging transit fees for the Strait of Hormuz, while Trump made conciliatory remarks, saying that “even if the Strait of Hormuz remained largely closed, he would still be willing to end military action against Iran.” Market expectations for tighter crude oil supply weakened, and declines in the energy sector dragged down the coal sector, weakening the cost-side logic. During the week, inventories of the five major steel products continued to decline, but apparent demand remained at a low level for the same period in previous years, providing limited fundamental-driven momentum to futures. In the spot market, purchasing interest was average, mainly focused on restocking at low prices. Spot prices were relatively firm, and the spot-futures price spread widened somewhat......

On April 2, 2026, the White House ushered US steel trade policy into "Version 2.0." This strategic shift goes beyond simple tariff hikes. It uses full-value taxation and melt-and-pour traceability to block low-end imported raw materials, while applying structural tariff reductions to finished products to ease manufacturing inflation. Ultimately, this two-pronged approach aims to forcibly bring the global supply chain back to domestic US steel production.

SMM News, April 3: LME lead opened at $1,904.5/mt this week. At the beginning of the week, amid disruptions from geopolitical tensions and a stronger US dollar, LME lead swung wildly within the range of $1,892.5-1,917/mt, hitting a low of $1,892.5/mt during the period. Mid-week, the market expected geopolitical tensions to ease, and coupled with support from the non-ferrous metals sector, lead prices fluctuated upward and climbed to a high of $1,944/mt. Toward the end of the week, geopolitical tensions flared up again, and together with profit-taking by bulls, LME lead retreated from highs and consolidated. Supported by the strength of SHFE lead, its losses narrowed, and it finally closed at $1,934.5/mt, up $31.5 from the beginning of the week, or 1.66%. The market was closed on Friday for Good Friday. The most-traded SHFE lead 2605 contract opened at 16,535 yuan/mt this week. In early trading, lead prices edged down and fell to a low of 16,415 yuan/mt, then moved sideways within the range of 16,430-16,530 yuan/mt. Mid-week, bullish funds pushed lead prices higher and kept them hovering at highs, with prices touching a high of 16,810 yuan/mt by the close. It finally closed at 16,785 yuan/mt, up 230 yuan WoW, or 1.39%. > Subscribe to View Historical SMM Metal Spot Prices

Today, the most-traded BC copper 2605 contract opened at 84,660 yuan/mt, touched a low of 84,450 yuan/mt in early trading, and then its center fluctuated upward. After the daytime session opened, it hit a high of 85,820 yuan/mt, then moved sideways, and finally closed at 85,180 yuan/mt, down 0.05%. Open interest stood at 6,404 lots, down 38 lots from the previous trading day, while trading volume reached 3,654 lots, down 854 lots from the previous trading day. On the macro front, the number of initial jobless claims in the US pulled back last week, and the labour market remained generally stable. In addition, uncertainty still surrounded the geopolitical situation in Iran, and related statements failed to ease market risk-off sentiment. Fundamentally, on the supply side, imported cargoes have continued to arrive at ports recently, and overall spot circulation remained relatively ample. On the demand side, downstream enterprises still showed limited acceptance of current price levels, and overall just-in-time procurement remained the main approach. The SHFE copper 2605 contract closed at 96,250 yuan/mt. Based on the BC copper 2605 contract price of 85,180 yuan/mt, its after-tax price was 96,253 yuan/mt. The price spread between the SHFE copper 2605 contract and BC copper was -3 yuan/mt, showing an inverted spread.

The gold price set a technical signal last week while providing fresh fuel for the debate over its future direction.

[SMM Daily Brief Review of Coking Coal and Coke] In terms of supply, coking coal costs for coke producers declined somewhat, and with the first round of coke price increases now fully implemented, losses at coke producers narrowed significantly, boosting production enthusiasm. Coke supply increased steadily, while downstream demand remained moderate, shipments were smooth, and producers' own inventory continued to decline. Demand side, steel mill blast furnaces gradually resumed production, and daily average hot metal production continued to increase, driving up rigid demand for coke. However, steel mills have recently seen good coke arrivals, with most mills' coke inventory at mid-range levels and overall procurement sentiment remaining average. In summary, coke market fundamentals have shifted toward looser supply and demand, and coupled with weaker recent cost support for coke, the coke market may remain temporarily stable in the short term, with further price increases facing greater difficulty.