This week, ferrous metals were in the doldrums. The main logic during the week remained weakening cost support. On Tuesday, Iran proposed charging transit fees for the Strait of Hormuz, while Trump made conciliatory remarks, saying that “even if the Strait of Hormuz remained largely closed, he would still be willing to end military action against Iran.” Market expectations for tighter crude oil supply weakened, and declines in the energy sector dragged down the coal sector, weakening the cost-side logic. During the week, inventories of the five major steel products continued to decline, but apparent demand remained at a low level for the same period in previous years, providing limited fundamental-driven momentum to futures. In the spot market, purchasing interest was average, mainly focused on restocking at low prices. Spot prices were relatively firm, and the spot-futures price spread widened somewhat......

SMM News on April 3: From March 27 to April 2, 2026, SMM surveyed the weekly operating rate of secondary lead in four provinces in China at 44.22%, up 0.96 percentage points WoW. By region, enterprises in Anhui cut production due to pressure on raw material supply, while production resumptions at small smelters in Jiangsu lifted the regional operating rate, coupled with lead prices fluctuating at highs, smelters' losses were somewhat repaired; production in Henan and Inner Mongolia remained stable. Looking ahead to next week, smelters' production enthusiasm is expected to improve, and the operating rate of secondary lead in four provinces is expected to trend steadily better, with a slight increase of 0.14 percentage points WoW. Going forward, close attention should be paid to raw material supply and the impact of downstream demand-side sentiment on production. 》Subscribe to View Historical SMM Metal Spot Prices

According to SMM, the composite operating rate of the enamelled wire industry was 77.76% in March, up 33.91 percentage points MoM and up 3.38 percentage points YoY.

SMM Morning Meeting Summary: Overnight, LME copper opened at $12,286.5/mt and fluctuated downward in early trading to a low of $12,212/mt. Copper prices then fluctuated upward, with the center moving up to $12,408/mt, before falling back again to finally close at $12,348.5/mt, down 0.99%. Trading volume reached 20,000 lots, and open interest stood at 295,000 lots, an increase of 3,702 lots from the previous trading day. Overnight, the most-traded SHFE copper 2605 contract opened at 95,660 yuan/mt and dipped to 95,300 yuan/mt in early trading. Copper prices then fluctuated upward, with the center moving up to a high of 96,680 yuan/mt, before fluctuating downward to finally close at 96,150 yuan/mt, down 0.08%. Trading volume reached 36,500 lots, and open interest stood at 181,000 lots, a decrease of 1,608 lots from the previous trading day, mainly due to bulls reducing positions.

According to an SMM survey on April 2, total iron ore inventory across the 10 major ports tracked by SMM stood at 119.31 million tonnes, marking a week-on-week increase of 190,000 tonnes. Inventories of coarse fines and concentrates accumulated slightly, while lump ore and pellets experienced slight destocking.

Capacity side, according to incomplete statistics, China’s alkaline electrolyser market remained at 43.77 GW and the PEM electrolyser market remained at 2.7 GW, with no new capacity added. There was no offline delivery information this week. Project-related updates: PetroChina Shenzhen New Energy Research Institute Co., Ltd.: It issued a processing tender for its brine hydrogen production electrolyser. Funding for the tender project was self-raised by the enterprise, with a contribution ratio of 100%. It is understood that procurement of necessary raw materials and components included, but was not limited to, integrated electrolyser materials such as electrodes, end plates, bipolar plates, separators, and gaskets. Suppliers were also required to provide essential auxiliary accessories for the electrolyser, including cooling towers, chillers, and potassium hydroxide, in accordance with the purchaser’s requirements. Guangxi University of Science and Technology: It procured a hydrogen-fuel low-speed hybrid autonomous vehicle experimental system from Hefei Zhongke Shengu Technology Development Co., Ltd., with a transaction price of 844,800 yuan. Dalian Institute of Chemical Physics, Chinese Academy of Sciences: It issued a procurement notice for a 500 W hydrogen fuel cell testing platform. It is understood that the testing platform will be used for performance, efficiency, and durability testing of 500 W-class hydrogen fuel cell stacks and single cells. CGN New Energy Holdings Co., Ltd.: The Jilin Hydrogen Future Energy Factory Integrated Energy Project issued a procurement notice for an energy-saving assessment report. It is understood that the project had successively completed procurement for reports including water resources assessment, feasibility study, land-use pre-examination, hydrogen pipeline design, and power market analysis. Shaanxi Hydrogen Energy Industry Development Co., Ltd.: It released a public notice on the social stability risk assessment survey for Phase I of the 30 GW new energy green hydrogen production and hydrogen pipeline project (Inner Mongolia section). According to the notice, the project is located in Tuke Town, Uxin Banner, Ordos, Inner Mongolia Autonomous Region. It is understood that the hydrogen pipeline route is 19.6 km long, with a design pressure of 6.3 MPa, and uses L290QH steel pipe material (seamless steel pipe). Total project investment is about 449.38 million yuan. Allocated by route length (with the Uxin Banner section accounting for 53.4%), the estimated investment within the area is about 239.97 million yuan. The project construction period is 2026–2028. PetroChina Shenzhen New Energy Research Institute Co., Ltd. : Its hydrogen energy R&D department plans to custom-process one set of MW-class brine hydrogen production electrolyser equipment, with hydrogen production capacity of no less than 200 Nm³/h. Tender scope: procurement of one set of brine hydrogen production electrolyser equipment. Shanghai Electric Group Company Limited: It officially signed the Phase I project of the Inner Mongolia Baofeng coal-based new materials wind and solar power hydrogen production project. According to the agreement, Shanghai Electric will provide eight 1,250 Nm³/h alkaline electrolysers, the world’s largest single-set 5,000 Nm³/h separation and purification system, and an industry-first outdoor three-dimensional layout solution. Suqian Green Energy Hydrogen Innovation Technology Co., Ltd.: During the 5th China International Hydrogen Energy and Fuel Cell Industry Exhibition, Suqian Green Energy Hydrogen Innovation Technology Co., Ltd. and China Power Engineering Consulting Group Northwest Electric Power Design Institute Co., Ltd. held a strategic cooperation signing ceremony at the China National Convention Center in Beijing for a domestic MW-class AEM electrolyser testing project. Shenneng Northern Energy Holdings Co., Ltd.: It issued procurement for the preparation of a feasibility study report for the Etuoke Banner wind power hydrogen production integration green application project (Phase II), covering hydrogen production by water electrolysis and SAF synthesis. It is understood that the Etuoke Banner 505 MW wind and solar power hydrogen production integration green ammonia synthesis project (Phase I) was successfully selected in October 2025 as one of the first batch of hydrogen energy pilot projects in China’s energy sector, and is planned to be fully completed and put into operation in August 2026. Policy Review​ 1. Notice of the Ministry of Industry and Information Technology and three other departments on issuing the Implementation Plan for the High-Quality Development of Energy-Saving Equipment (2026–2028). The document stated that by 2028, mass-produced water electrolysis hydrogen production equipment should achieve DC power consumption of less than 4.2 kWh/Nm³ under rated operating conditions. 2. Notice of the General Office of the National Energy Administration on issuing the Guidelines for the Establishment of 2026 Energy Industry Standard Plans. The key areas for the 2026 energy industry standard plan include eight items. In the hydrogen energy field, key directions include fundamentals and general applications, hydrogen production and conversion, hydrogen storage and transportation, hydrogen refuelling, hydrogen power and power generation, and hydrogen equipment. 3. Ministry of Commerce Announcement No. 18 of 2026: announcement of the launch of a trade barrier investigation into US practices and measures that hinder trade in green products. Preliminary evidence and information obtained by the Ministry of Commerce showed that the US had implemented multiple practices and measures in trade-related areas that hinder trade in green products, including but not limited to restricting exports of green products to the US, slowing new energy deployment, and restricting technology cooperation related to green products. Enterprise Updates​​ Xieqing (Shanghai) New Energy Technology Co., Ltd.: Its hydrogen-powered drone H100 was officially put into use for material transport by China Post in Suibin County/Bayan County, Heilongjiang, entering the stage of regularised operations. Henan Junheng Industrial Group Biotechnology Co., Ltd. : Five reactors for its 1 million mt/year waste oil and fat processing sustainable aviation fuel project were successfully hoisted into place. Hubei Yingteli Electric Co., Ltd.: The two sets of thousand-cubic-metre-class IGBT hydrogen production power supplies it provided were successfully applied in South Korea’s first off-grid green hydrogen production project. Ordos Hanxia New Energy Co., Ltd. : At the hydrogen production plant of the Narisong PV hydrogen production industry demonstration project in Jungar Banner, Ordos, Inner Mongolia Autonomous Region, the first truckload of 99.999% national-standard high-purity green hydrogen in 2026 was successfully dispatched after filling operations were completed. Hydshine Energy (Shenzhen) Co., Ltd.: It announced the completion of its Pre-B round of financing. This round was exclusively strategically invested by the Shenzhen Energy Storage Fund. It is understood that the funds will be mainly used for global market expansion, next-generation product R&D, and industrialisation capabilities. Shanghai Hydrogen Energy Group Co., Ltd.: It was successfully recognised as a “Shanghai Specialised, Sophisticated, Distinctive and Innovative SME” in the first batch list of Shanghai specialised and sophisticated small and medium-sized enterprises. Tianneng Battery Group Co., Ltd. : During the Tianneng 2026 Spring New Product Launch held in Tianjin, Tianneng signed strategic cooperation agreements with multiple partners on hydrogen fuel cells and solid-state batteries. In hydrogen energy, Tianneng joined hands with Guangdong Vision Holding Group and Tianjin Weida Space Technology to deepen the deployment of hydrogen-powered shared bicycle scenarios and promote the rollout of this model in more cities. ​​Patent Applications​​ 1. Shanghai Institute of Ceramics, Chinese Academy of Sciences​​ (China) disclosed patent CN2025110028, developing a ceramic-based anion exchange membrane with a laboratory-tested lifespan of 80,000 hours. ​​2. Johnson Matthey​​ (UK) filed patent WO2025109876, disclosing an Fe-Ni-Mo ternary non-precious metal catalyst formulation with activity close to platinum-based materials. Technology Footprint/Technical Specifications​​ 1. Professor Yu Ying’s team at Central China Normal University developed a three-dimensional graded nanostructured catalytic electrode, a core part for seawater hydrogen production. 2. Dalian University of Technology designed an electron-pump catalyst with an asymmetric photoresponse structure to maintain asymmetry in electron distribution. 3.​​Research teams from the School of Electrical Engineering at Xi’an Jiaotong University and the State Key Laboratory of Electrical Materials and Electrical Insulation successfully developed a Ru/Ti3C2Ox@NF bifunctional electrocatalyst for seawater electrolysis. 4. Johnson Matthey and Syensqo achieved efficient recycling and reuse of platinum group metals and ionomers in PEM fuel cells and electrolysers, significantly reducing the carbon footprint. 5. Teams from Xi’an Jiaotong University and Peking University jointly developed a new-type osmium-based catalyst, significantly improving the efficiency and economics of AEM water electrolysis hydrogen production and supporting the scale-up of low-cost green hydrogen.

[SMM Rare Earth Flash] An SMM survey showed that total production of Pr-Nd alloy across the industry reached 7,592 mt in March 2026, with the average operating rate at 69.8%, up 7.36% MoM and up 0.7% YoY. Production of Pr-Nd alloy was expected to be 7,699 mt in April, with the average operating rate at 70.9%. It was learned that the core reasons for the rise in the operating rate of Pr-Nd alloy from March to April were the return of normal operations at metal enterprises in March, coupled with the impact of capacity ramp-up at expansion projects in Inner Mongolia.

[SMM Rare Earth Flash] According to the SMM survey, total production of NdFeB blanks across the industry reached 29,985.67 mt in March 2026, with the average operating rate at 70.15%, up 43% MoM and up 0.2% YoY. NdFeB blank production was expected to reach 31,173.32 mt in April, with the average operating rate at 72.92%. It was learned that the core reason for the rise in the operating rate from March to April was a rebound after the February trough, rather than rigid growth in downstream orders.

SMM Morning Meeting Summary: Overnight, LME copper opened at $12,402.6/mt. In early trading, it fluctuated downward to a low of $12,334.5/mt. Subsequently, the center of copper prices gradually moved higher, rising to $12,482.5/mt near the close, and finally closed at $12,472.6/mt, up 0.73%. Trading volume reached 24,900 lots, and open interest stood at 291,200 lots, down 7,698 lots from the previous trading day, mainly due to bears reducing positions. Overnight, the most-traded SHFE copper 2605 contract opened at 96,300 yuan/mt. In early trading, it fluctuated downward to 96,210 yuan/mt. Subsequently, the center of copper prices fluctuated upward, touching a high of 96,970 yuan/mt near the close, with a gain of 0.45%. Trading volume reached 40,900 lots, and open interest stood at 183,400 lots, down 2,869 lots from the previous trading day, mainly due to bears reducing positions.

[SMM Operating Rate of Steel Mills Using Externally Purchased Billets] According to the SMM survey, as of March 31, the operating rate of steel mills using externally purchased billets mainly producing construction steel stood at 27.39%, up 27.39 percentage points MoM from February and up 5.25 percentage points YoY. National construction steel prices fluctuated downward in March. Rebar prices reached 3,167 yuan/mt on March 23, the highest price of the month, and 3,131 yuan/mt on March 4, the lowest price of the month. After the Lantern Festival, downstream construction sites gradually resumed work, market demand gradually improved, and end-users' just-in-time procurement increased slightly. Cost side, affected by multiple macro factors, the coal market as a whole showed a pattern of being more likely to rise than fall. At some coal mines in producing areas, production release was hindered by factors such as working face replacements, leading to a slight contraction in supply, while downstream procurement demand remained robust. Auction transaction premiums were obvious, further supporting stronger coal prices. As cost pressure was passed on, coke enterprises showed a strong willingness to hold prices firm, and expectations for a new round of coke price increases to be implemented heated up, which will likely be gradually realized in the near term. Raw material prices are expected to fluctuate upward in the short term, and cost support for steel remained in place. Supply side, blast furnace steel mills currently maintained a stable production pace, with production remaining relatively steady; EAF steel mills resumed production in an orderly manner as planned, and the capacity utilization rate continued to rebound. As of March 24, the operating rate of 50 electric furnace steel mills nationwide mainly producing construction steel was 40.42%, up 1.78% from the previous period. Billet-rolling mills also gradually resumed work after the Lantern Festival, and the operating rate of steel mills using externally purchased billets was 27.39% this month, up 27.39% MoM, driving a rapid increase in overall market supply. Demand side, downstream construction sites were gradually resuming work, and market demand increased somewhat. However, dragged down by end-user steel consumption volumes and tight cash flow at end-user enterprises, the market remained cautious about the outlook. Downstream construction sites and traders mainly purchased as needed, and the strength of demand recovery was weaker than in the same period in previous years. Overall, after the Lantern Festival, both supply and demand increased, and the supply-demand imbalance was not yet prominent. As temperatures gradually recover and terminal construction conditions improve, the rebar supply-demand pattern is expected to improve mildly, and inventory is likely to continue declining. However, constrained by funding conditions, the room for incremental demand should not be viewed overly optimistically. Therefore, the increase in the operating rate of billet-processing enterprises in April is expected to be limited, and the room for overall supply growth is relatively small.