According to Assofermet, the Italian steel market remained weak in February amid widespread caution along the supply chain and mounting regulatory uncertainties. In the stainless steel segment, selling prices saw a further increase—rising by 10% since November 2025—but this was driven primarily by supply constraints rather than any real recovery in stagnant downstream consumption. The broader market is heavily weighed down by the application of default values for CBAM calculations and new EU safeguard measures, which are structurally increasing the cost of imported steel. Coupled with macroeconomic weakness in Germany and France, and escalating Middle East geopolitical tensions pushing up energy and transport risks, market sentiment remains highly cautious.

Silver is having one of its most extraordinary years in modern market history.

SMM Morning Brief: Overnight, LME copper opened at $13,104.5/mt, then its center moved downward to a low of $13,003.5/mt. It then fluctuated upward, hitting a high of $13,096.5/mt near the close, and finally closed at $12,919/mt, up 1.37%. Trading volume reached 22,000 lots, down 9,254 lots from the previous trading day; open interest stood at 304,000 lots, up 1,035 lots from the previous trading day, mainly reflecting long position buildup overall. Overnight, the most-traded SHFE copper 2604 contract opened at 101,430 yuan/mt. After dipping to 101,200 yuan/mt in early trading, it hovered at highs, hitting a high of 101,930 yuan/mt near the close, and finally closed at 101,860 yuan/mt, up 0.7%. Trading volume reached 28,000 lots, down 88,000 lots from the previous trading day; open interest stood at 193,000 lots, down 1,780 lots from the previous trading day, mainly reflecting short position reduction overall.

Tensions in the Middle East have escalated again recently, as the conflict between Israel and Iran continues to intensify, drawing renewed global attention to energy transportation security in the Gulf region.Given the high level of uncertainty surrounding the development of the situation, market risks are clearly skewed to the upside. This article provides a brief analysis of how the current conflict may affect the copper market going forward.

Silver prices steadied into the end of the week, with the metal recovering modestly after the sharp swings seen earlier in March.

SMM, February 28 news： In February 2026, China's secondary lead market was squeezed by three factors—the holiday effect, high costs, and weak demand—leading to a significant pullback in production as expected, with industry operations characterized by "weak supply and demand and profit margins under pressure." Data showed that secondary lead production in February 2026 fell as expected by 140,000 mt, plunging 40.38% MoM and dropping 2.19% YoY; secondary refined lead output decreased 45.18% MoM and declined 11.36% YoY. In terms of the causes of production cuts, the primary factors were fewer calendar days in the month combined with the impact of the Chinese New Year holiday, which led to widespread shutdowns or production cuts at mainstream secondary lead smelters across the country. Worker departures for the holiday pushed operating rates to low levels, with particularly sharp declines in core production areas such as Jiangsu and Henan due to delayed worker returns and logistics constraints. Pressure on the cost side further exacerbated the scale of production cuts: before the holiday, scrap battery prices remained high due to recyclers' reluctance to sell, pushing up secondary lead smelting costs, while lead prices continued to trend weakly during the same period, causing widespread losses among secondary lead enterprises. Theoretical comprehensive profit/loss margins for large-scale producers were in negative territory, with small and medium-sized enterprises facing even more severe losses. Weakness on the demand side created a dual suppression: downstream battery producers entered the holiday early, causing lead ingot purchase willingness to hit rock bottom, while smelters' finished product inventories continued to accumulate, further dampening production enthusiasm among enterprises and ultimately leading to a sharp contraction in secondary lead output in February. Looking ahead to March, China's secondary lead market is expected to see a clear corrective rebound, with production forecast to increase by about 70,000 mt compared to February. The core driver of this trend is the comprehensive resumption of work and production across the industry chain after the holiday. With workers returning in concentration after the Lantern Festival, secondary lead smelters will enter a period of concentrated production resumptions, and some enterprises have indicated that they can resume operating at full capacity by mid-March. Gradual recovery in downstream demand will provide solid support for the production rebound: battery producers are resuming work successively, pre-holiday accumulated lead ingot inventories are entering a digestion cycle, and purchase willingness is expected to continue improving. Meanwhile, some secondary lead enterprises need to ramp up production to fulfill long-term contract delivery obligations, further driving up operating rates. On the raw material side, the scrap battery recycling market is gradually recovering after the holiday, and smelters' raw material inventories are expected to be replenished, easing supply constraints. Although enterprises still face certain profit pressures, with the combined effects of demand recovery, order support, and inventory digestion, production enthusiasm in the secondary lead industry is expected to improve significantly. Output in March is likely to achieve a substantive rebound, and industry operations will gradually return to normal.