Supply glut, cautious demand, and fading cost support drag the benchmark contract down RMB 205/mt in the week of March 30 – April

Recently, the Binhe Haoyu 100MW/200MWh independent energy storage station in Zhucheng completed acceptance and entered commercial operation. The project was invested in by an energy storage industry fund jointly initiated by Corun, CALB, and Kaibo Capital. It was jointly developed by members of the large energy storage ecosystem consortium, including Corun, CALC, Goxia Technology, Duanrui Technology, and Star Energy New Energy. The station adopts a hybrid energy storage technology route combining "lithium iron phosphate + all-vanadium redox flow batteries," which can meet the grid's full-time-scale regulation needs while significantly reducing the lifecycle levelized cost of energy, enhancing overall system economy and safety, and maximizing operational efficiency and economic benefits.

SMM Nickel News, April 3: Macro and market news: (1) Iran and Oman were drafting an agreement aimed at implementing "passage regulation" for vessels transiting the Strait of Hormuz, while emphasizing that vessel passage would not be restricted. (2) The US officially adjusted tariffs on steel, aluminum, and copper, and also announced a plan to impose additional tariffs on pharmaceuticals from enterprises that had not reached agreements or had not reshored to the domestic market. Spot market: On April 3, the SMM price of #1 refined nickel rose by 200 yuan/mt from the previous trading day. Spot premiums, Jinchuan #1 refined nickel averaged 3,650 yuan/mt, unchanged from the previous trading day; China mainstream electrodeposited nickel brands were at -600-400 yuan/mt. Futures market: The most-traded SHFE nickel contract (2605) moved sideways, closing at 134,260 yuan/mt as of this morning session, up 0.07%. In the short term, tighter Indonesian policies and cost support built a solid bottom for nickel prices, but high inventory and weak end-use demand capped upside room. The core trading range of the most-traded SHFE nickel contract is expected at 133,000-143,000 yuan/mt.

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This week, the overall second-life battery market for lithium battery Grade B products remained stable, while prices for warehouse A and Grade A products rose. On the cost side, lithium carbonate first increased and then declined, with evident fluctuations; nickel sulphate edged down slightly, while cobalt sulphate prices remained stable. On the supply side, battery cell capacity continued to be released, the EV sector carried out orderly stockpiling, demand in the ESS sector remained robust, and order shipments stayed at a high level. On the demand side, following the implementation of the new power battery regulations on April 1, the exclusive concept of second-life application was removed and uniformly brought under comprehensive utilization supervision, with strict control over the circulation of non-compliant products; the market showed structural divergence, with average demand from the EV sector, but strong demand for compliant orders in energy storage and outside China. In terms of product-grade price spreads: quotations for leading Grade A products with warranties approached those of new battery cells, while circulation of recycled materials and Grade B products remained weak and prices held flat, as they struggled to meet compliant procurement standards.

Gold has lost significant ground in recent weeks, but for Wells Fargo, this apparently changes little in the long-term picture. The US bank has reaffirmed its positive outlook for the precious metal and significantly raised its price target for the current year.