With utilization rates among Korean battery manufacturers remaining around 50% and reflecting a timing mismatch between demand and supply, utilization is increasingly emerging as a key indicator of cost structure and operational efficiency in a context where capacity expansion has preceded demand realization.

Strong industrial demand and supply constraints are driving both inventory buildup and structural tightness in the copper market.

【SMM Copper Inventory Update】Concentrated arrivals of imported and domestic supplies, with additional cargoes queuing for warehousing, coupled with suppliers actively stocking up driven by delivery requirements, along with persistently weak consumption during the Chinese New Year on the demand side, collectively contributed to a significant inventory buildup. According to SMM data, as of February 24, 2026, social inventory of copper cathode in mainstream domestic areas increased by 154,900 mt during the holiday, reaching a five-year high, with the total volume exceeding 500,000 mt.

[SMM Analysis]ADC12 Prices Accelerated Rise to Hit Highs in January, Center Expected to Pull Back in February

[SMM Daily Review: Spot Lithium Carbonate Prices Held Steady on September 9] The SMM battery-grade lithium carbonate index stood at 74,589 yuan/mt, up 94 yuan/mt from the previous trading day. Battery-grade lithium carbonate traded at 73,700-75,500 yuan/mt, with an average price of 74,600 yuan/mt, flat from the prior session. Industrial-grade lithium carbonate ranged at 71,750-72,950 yuan/mt, averaging 72,350 yuan/mt, unchanged from the last trading day. Demand side, the market remains in its peak season, sustaining just-in-time procurement by downstream players. However, WoW, procurement activity slowed slightly as futures prices rebounded. Supply side showed structural divergence: spodumene-sourced lithium carbonate accounted for over 60% of production, while lepidolite-derived output dropped to 15%. Overall, September saw synchronized supply and demand growth, but demand expanded faster, likely leading to temporary tightness in the month.

Last week's announcement of import and export restrictions in the Congo (DRC) has led to a continuous increase in cobalt sulfate prices. However, due to insufficient short-term demand support, the price increase has been relatively limited. Nickel sulfate prices have remained essentially stable, while lithium carbonate prices have shown a slight rebound and are fluctuating.