This week, prices in the second-life battery market were generally stable, while the market's structural divergence remained evident. Cost side, trends in various raw materials diverged, with overall costs rising slightly. Lithium carbonate prices increased, pushing up battery cell recycling and processing costs; nickel sulphate and cobalt sulphate prices remained stable, easing one-sided cost pressure, and costs edged up mildly over the week. Supply side, supply of popular energy storage battery cell models was tight, with limited spot availability; conventional models were sufficiently available, and no broad-based shortage emerged in the market. Demand side, the gap between energy storage and the EV market remained wide. Demand in the EV sector stayed sluggish, with low purchasing enthusiasm and insufficient support for prices; energy storage demand remained the mainstay of the market, with stable rigid demand. However, prices were currently at high levels, downstream purchasing became more rational, willingness to purchase at high prices declined, and further price increases were currently facing resistance.

Australian ore producer Fenix has warned that fuel shortages are beginning to impact its operations, citing constrained diesel supplies linked to geopolitical tensions involving Iran, which has compelled the iron ore company to curtail some of its activities. According to a company filing, Fenix is taking measures to reduce non-essential activities within its mining and haulage operations in Western Australia. The statement also noted that fuel supply has been further disrupted by Tropical Cyclone Narelle, which is currently active off the coast of Western Australia. The company's share price fell by 7% following the announcement.

As expectations for the peak-season demand in the “Golden March” gradually begin to materialize, galvanizing operating rates are rising. Can downstream consumption sustain its peak-season performance going forward?

It was learned that, due to the significant increase in silver spot premiums in Q1 2026, the competitive pricing environment for silver nitrate processing fees had eased, and the involution situation had moderated. Among them, processing fees for small-client orders were raised somewhat, while processing fees for large-client orders had not yet shown an upward trend. In addition, affected by the temporary shortage of silver ingot supply around the Chinese New Year, some silver nitrate enterprises faced constraints in raw material procurement, rejected some downstream orders, and instead took on a large number of toll processing orders in which downstream enterprises supplied the silver ingots.

According to customs data, lead concentrate imports in February 2026 were 124,580 mt in physical content, up 3.8% MoM and up 26.4% YoY; cumulative imports in January-February reached 252,241 mt in physical content, up 14% YoY on a cumulative basis. Over the same period, silver concentrate imports were about 148,600 mt in physical content, down 17% MoM and down 8% YoY; cumulative imports in January-February were 328,600 mt in physical content, down 1.27% YoY on a cumulative basis.

Middle East tensions have sparked a massive steel trade "mismatch." Iran's blocked exports created a 2.3-million-ton billet vacuum in Southeast Asia, while the Red Sea crisis stalled China's flat steel shipments to the Gulf. Consequently, China and India are rapidly absorbing SEA's diverted billet orders. SMM projects that blocked flat steel returning to China's domestic market, combined with surging overseas billet demand, will accelerate the narrowing of the domestic HRC-rebar spread.