[Geopolitical Tensions Boost LME, China Inventory Buildup and Weakening Demand Under Pressure] In the short term, the core pattern of LME outperforming SHFE in the aluminum market is difficult to reverse. The strength in LME will support room for SHFE aluminum to catch up after the holiday, but high inventory and weak demand in China will suppress overall gains. Going forward, the focus should be on the pace of aluminum ingot destocking in China and the strength of rigid demand release from downstream resumption of work and production resumptions.

This week, China’s domestic manganese-based battery materials market has shown a differentiated operation trend. The price of battery-grade manganese tetroxide has slightly declined, the price of electrolytic manganese dioxide has slightly increased, and lithium manganate has maintained a weak balance of supply and demand.

During the 2026 Spring Festival holiday, the domestic manganese sulfate market continued its pre-holiday upward trend, with prices maintaining stable and firm operation without significant fluctuations. On the supply side, although some enterprises suspended production for maintenance during the holiday leading to short-term fluctuations, the industry's low inventory pattern remained unchanged.

[SMM Chromium Daily Review: Market Operated Steadily with Mediocre Performance Ahead of the Holiday] February 5, 2026: The ex-factory price of high-carbon ferrochrome in Inner Mongolia today was 8,500-8,600 yuan/mt (50% metal content), flat MoM from the previous trading day...

According to SMM statistics, the composite operating rate of the domestic aluminum wire and cable industry reached 58.16% in April 2025, up 5.27% MoM from April and up 3.9% YoY from April last year. Since Q2, the industry has maintained a favorable operational trend. From the perspective of enterprise scale, the operating rate of large enterprises increased by 4.65% MoM to 73.56%, that of medium-sized enterprises rose by 5.5% MoM to 51.21%, and that of small enterprises improved by 7.63% MoM to 33.9%.

[5.14 Morning Meeting Minutes] This month, affected by destocking at downstream material plants, the production schedule for some precursors has declined, and the procurement demand for nickel salts has weakened. Supply side, some nickel salt smelters have low raw material inventory levels and expectations for production cuts. Nickel salt smelters are not enthusiastic about shipping. The nickel salts available in the market are also relatively limited. Looking ahead, the current nickel salt market is characterized by weak supply and demand, with a tug-of-war between buyers and sellers. It is expected that nickel salt prices will remain stable.