This week (April 24–30, 2026), the average operating rate of primary lead smelters in the three provinces was 64.62%, up 0.19 percentage points WoW. This week, some smelters in the Yunnan region resumed production after maintenance, leading to a slight increase in lead smelting output. Smelters in Hunan and Henan maintained stable production, with overall operating rates flat WoW. A small-to-medium-sized smelter in Anhui saw some relief from raw material shortages, with its operating rate slightly boosted this week. A small smelter in Jiangxi experienced a decline in operating rate this week due to equipment failure and maintenance. Other major producing regions in China maintained overall stable smelting production.

News Release: April 30, 2026 According to SMM statistics, China’s high-carbon ferrochrome output in April 2026 fell by 1.28% month-on-month but rose by 24.63% year-on-year, with notable regional divergence. The majority of the monthly output reduction came from Inner Mongolia in northern China. Affected by substation maintenance, ferrochrome producers in Fengzhen faced production restrictions, with output dipping slightly by 1.82%.

[Silicon Metal Futures Center Shifted Higher with Increased Enterprise Shipments; Heavy Wait-and-See Sentiment in Polysilicon Market]: In the futures market, the most-traded contract trended stronger during the week, with the SI2609 contract center at 8700-8800 yuan/mt and the highest point touching above 8,900 yuan/mt. Driven by macro factors and news, futures rose, boosting silicon producers' shipment sentiment, and silicon enterprises' shipments to trading firms engaging in both spot and futures market increased. On the fundamentals side, silicon metal supply and demand were in tight balance in April, and the supply-demand structure is not expected to see major adjustments in May. Facing the pressure of increased supply during the rainy season in Sichuan and Yunnan from June to July, the market outlook leaned toward caution. On the cost side, raw material prices remained firm. With upside in silicon metal prices capped and downside supported by costs, the price fluctuation range was narrow.

The operating rates of galvanising producers this week were 61.21%, down 1.17 percentage points WoW. Raw material side, zinc prices pulled back to levels more acceptable to downstream this week. Downstream players stockpiled for the Labour Day holiday in a timely manner, and zinc ingot inventory at galvanising enterprises increased.

[SMM Silicone Weekly Review: Silicone DMC Transaction Center Continued to Rise, Shipments Performance of Downstream Products Diverged] The transaction center of China's silicone DMC market moved up this week, with mainstream transaction range at 14,700-15,000 yuan/mt, up 100 yuan/mt WoW. Regional quotations showed slight divergence. Monomer enterprises in Shandong quoted 14,700 yuan/mt, while mainstream quotations in other regions reached 15,000 yuan/mt. Additionally, some enterprises primarily used their supplies for internal consumption, with only small volumes for exports, quoting higher at 15,500-15,900 yuan/mt.

According to SMM data, silicon metal production in April was 320,000 mt, down 3% MoM and up 6% YoY. Production in May is expected to increase to around 340,000 mt MoM, but uncertainty remains regarding future operating rates, and attention should still be paid to changes in operating rates of top-tier enterprises and the Sichuan region.