[SMM Magnesium Weekly Review: Fear of High Prices Dominates Demand Side, Magnesium Ingots Show Signs of Weakness After Consolidating at Highs] This week, various segments of China's magnesium industry chain diverged in performance, each exhibiting distinct supply-demand patterns. The dolomite market remained stable, with some areas in core production regions halting production, supplemented by supplies from surrounding sources. Downstream primary magnesium smelters saw a slight rise in operating rates and restocked on rigid demand, providing solid demand support, with short-term trends expected to remain stable. Magnesium ingots in major production areas showed signs of weakness after consolidating at highs. Slight inventory buildup at producers weakened the sentiment to hold back from selling, while downstream fear of high prices was strong and orders were scarce, shifting the supply-demand pattern toward buyers. The FOB market for magnesium ingots at Tianjin Port saw weak transactions, with producers' sentiment to hold prices firm cooling down. Short-term quotes may edge lower but are expected to stabilize overall. Magnesium powder prices remained firm, with producers raising operating rates to ensure supply. Both domestic and export demand recovered, and enterprise stockpiling behavior may front-load subsequent demand. Magnesium alloys consolidated at highs, with producers maintaining stable operating rates though some had elevated inventory levels. Downstream procurement was mainly driven by rigid restocking demand, and end-user order release exhibited structural divergence, with short-term prices expected to hold steady.

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 Morning Meeting Summary: Macro Factors and Fundamentals Resonated, and LME Zinc Logged a Three-Day Winning Streak] Overnight, LME zinc logged a three-day winning streak, with support from the 20-day moving average below and resistance from the 40/60-day moving averages above. Overnight, as geopolitical tensions in the Middle East may have de-escalated, the US dollar index moved lower, nonferrous metals rose, and LME zinc inventory continued destocking......

[SMM Aluminum Express News] PLN Indonesia Power (PLN IP) has announced plans to develop 268 power plant projects under the RUPTL 2025–2034, with a total additional capacity of 30,276.2 MW (30.2 GW). The projects will be spread across all regions of Indonesia to support equitable energy infrastructure and strengthen national energy security. PLN IP CEO Bernadus Sudarmanta emphasized that the success of this program depends heavily on collaboration with various strategic partners, both domestic and foreign. “We are open to broad cooperation to accelerate the realization of these projects. Collaboration is the key to delivering a reliable, sustainable electricity system that supports national economic growth,” he said.

The central bank’s February financial statistics report showed that at end-February, the balance of broad money (M2) stood at 349.22 trillion yuan, up 9% YoY; aggregate social financing increased by a cumulative 9.6 trillion yuan in the first two months, 316.2 billion yuan more than in the same period last year; new yuan loans totaled 5.61 trillion yuan in the first two months; the balance of domestic and foreign currency deposits stood at 345.72 trillion yuan, up 8.8% YoY; and at month-end, the balance of yuan deposits stood at 337.94 trillion yuan, up 8.7% YoY.

SMM Nickel News, March 16: Macro and Market News: (1) The financial statistics report for February released by the central bank showed that at month-end February, broad money (M2) balance stood at 349.22 trillion yuan, up 9% YoY; cumulative aggregate social financing for the first two months was 9.6 trillion yuan, 316.2 billion yuan more than the same period last year; new RMB loans in the first two months increased by 5.61 trillion yuan; the balance of domestic and foreign currency deposits was 345.72 trillion yuan, up 8.8% YoY; and the month-end RMB deposit balance was 337.94 trillion yuan, up 8.7% YoY. (2) The central bank said in its tender announcement for open-market outright reverse repo operations that on March 16, 2026, the People's Bank of China will conduct 500 billion yuan of outright reverse repo operations through a fixed-quantity, interest-rate bidding, and multiple-price allocation method, with a tenor of six months (182 days). Spot Market: On March 16, the SMM #1 refined nickel price fell by 2,650 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 6,700 yuan/mt, up 50 yuan/mt from the previous trading day; China mainstream branded electrodeposited nickel was at -300-400 yuan/mt. Futures Market: The most-traded SHFE nickel contract (2605) fell sharply intraday and closed the morning session at 135,990 yuan/mt, down 1.83%. Tensions in the Middle East pushed up oil prices, intensifying inflation concerns. The market expects the US Fed may slow the pace of interest rate cuts, while the US dollar continued to strengthen, creating clear pressure on nickel prices. Despite significant macro pressure, the industry-level support logic has not changed, and market concerns over tightening supply of nickel intermediate products remain. Short term, the most-traded SHFE nickel contract is expected to move sideways in the 135,000-145,000 yuan/mt range.