The beginning of 2026 did not bring the calm usually expected in the global stainless steel industry chain ahead of the traditional Lunar New Year offseason. Instead, under the double pincer attack of surging raw material costs and escalating trade protectionism, the market is undergoing a violent restructuring.

According to the Ministry of Industry and Information Technology's WeChat update, on February 13, the Ministry of Industry and Information Technology convened a plenary meeting of the Leading Group for the Development of the Low-Altitude Industry. The meeting focused on thoroughly studying and implementing the important instructions and directives of General Secretary Xi Jinping, and discussed and arranged key tasks to promote the safe, orderly, and healthy development of the low-altitude industry. Li Lecheng, Secretary of the Party Leadership Group and Minister of the Ministry, and Head of the Leading Group for the Development of the Low-Altitude Industry, presided over the meeting and delivered a speech. Xin Guobin, Member of the Party Leadership Group and Vice Minister, and Xie Shaofeng, Chief Engineer, attended the meeting. The meeting noted that during the 14th Five-Year Plan period, China's low-altitude industry has achieved positive results, with accelerated breakthroughs in technology and equipment, and diversified expansion in application scenarios. During the 15th Five-Year Plan period, it is essential to earnestly implement the decisions and arrangements of the Party Central Committee and the State Council, fully recognize the new situation facing the development of China's low-altitude industry, balance development and security, adhere to both policy support and reform innovation, promote the deep integration of technological innovation and industrial innovation, strengthen the leading role of enterprises in innovation, accelerate the cultivation of industrial clusters, and build an intelligent, green, and integrated industrial system, to steadily advance the safe, orderly, and healthy development of the low-altitude industry. The meeting emphasized the need to effectively strengthen top-level planning, carry out planning formulation work well, increase policy support for the innovative development of the low-altitude industry, accelerate preliminary research on standards, and establish a sound industrial standard system. Efforts should be made to firmly build a security foundation, strengthen management in the manufacturing sector, attach great importance to low-altitude radio security, cybersecurity, and data security, and establish a test and verification systems for low-altitude equipment. It is necessary to actively promote integrated innovation, strengthen research on fundamental and common technologies in the industry, deepen the synergy between low-altitude equipment and industries such as new energy and new-generation information technology, and accelerate the empowerment of artificial intelligence. A favorable environment should be vigorously fostered, with orderly expansion of application scenarios, strengthening scenario-driven upgrades of equipment, deepening high-level international cooperation, and consolidating the talent foundation for the industry, to provide strong support for the development of the low-altitude economy as a strategic emerging industry. Heads of relevant departments, subordinate units, and affiliated universities of the Ministry attended the meeting and delivered exchange speeches.

On February 10, 2026, Aihydrogen Technology (Group) Co., Ltd. formally signed a cooperation agreement with the Chengkou County People's Government of Chongqing Municipality. The two parties will jointly develop an integrated "generation-grid-load-storage-hydrogen" comprehensive energy demonstration project. Supported by the core technology of magnesium-based solid-state hydrogen storage, the project aims to promote the deep integration of new energy and hydrogen energy industries, assist Chengkou in building a new highland for hydrogen energy demonstration in north-east Chongqing, and inject new "hydrogen" momentum into the optimization of China's energy structure. Zhang Jijun, Secretary of the Chengkou County Committee, Wang Chunmei, Deputy Secretary of the County Committee and County Mayor, and all members of the county leadership team attended the signing ceremony. Based on Chengkou County's resource endowment and strategic positioning, this cooperation project plans several core construction elements: utilizing Aihydrogen Technology's self-developed magnesium-based solid-state hydrogen storage technology to solve the challenges of hydrogen storage and transportation, enabling large-scale and safe development of hydrogen energy; planning the construction of an integrated super comprehensive energy station for oil, electricity, gas, and hydrogen, strengthening the energy supporting infrastructure for Chengkou's logistics hub connecting Sichuan, Shaanxi, and Chongqing; deploying various types of hydrogen energy vehicles, such as hydrogen logistics vehicles and sightseeing vehicles, across transportation, industrial, and livelihood scenarios to build a comprehensive green hydrogen application ecosystem; leveraging Chengkou's abundant wind, solar, and water resources to establish a green electricity-to-green hydrogen production base, forming a complete industrial chain of "green hydrogen production from green electricity - solid-state hydrogen storage - diversified hydrogen utilization". Chengkou County is located at the junction of three provinces/municipalities: Chongqing, Sichuan, and Shaanxi. It is an important strategic period in the Chengdu-Chongqing dual-city economic circle and the "Western Triangle" economic zone. The forest coverage rate reaches 72.8%, and reserves of new energy resources such as PV and wind power are abundant. Its solar resource endowment ranks among the top in Chongqing Municipality. The county is accelerating its efforts towards the construction goals of the "Daba Mountain New Energy Base" and the "Chongqing Green, Low-Carbon, Clean Energy Demonstration Zone". Simultaneously, Chengkou has been included as a key expansion area for the hydrogen refueling station industry in Chongqing's development plans, holding an important position in the construction of the "Chengdu-Chongqing Hydrogen Corridor" and the establishment of a western hydrogen energy hub. The launch of this project coincides with a strategic window period for Chongqing's advancement of its "16th Five-Year Plan" and enhancing the energy level of the dual-city economic circle, indicating broad development prospects. The solid-state hydrogen comprehensive energy station to be implemented in this project will break through the functional limitations of traditional hydrogen refueling stations. It will integrate green energy supply, emergency backup power, and community services, creating a benchmark for micro-energy hubs and providing safe and efficient hydrogen energy support for Chengkou's transportation and logistics, cultural tourism industry, and residents' daily lives. After completion, the project is expected to not only promote the upgrade of green infrastructure in Chengkou and support the development of the regional hydrogen energy transportation network but also enhance the local renewable energy consumption capacity, cultivate new quality productive forces in the energy sector, and provide replicable and scalable practical experience for the optimization and upgrade of the energy structure in north-east Chongqing. To ensure the high-quality implementation and operation of the project, Aihydrogen Technology is collaborating deeply with Zhonglai New Energy. Leveraging the latter's professional expertise in green power supply and combining it with its own leading magnesium-based solid-state hydrogen storage technology, the partnership aims to provide dual support through both technology and resources. Jolywood, CGN New Energy, SPIC, Air China Group, and other enterprises also participated in this signing event, collaborating with all parties to advance project construction and build a multi-party synergistic hydrogen energy industry development ecosystem. As a leading domestic magnesium-based solid-state hydrogen storage technology enterprise, Suzhou-based Ai Hydrogen Technology was established in 2019. Its independently developed magnesium-based solid-state hydrogen storage equipment technology can effectively address the pain points of hydrogen storage and transportation in the hydrogen energy industry, enabling large-scale hydrogen storage and transportation with high efficiency and low cost. The company has already secured Series A funding led by Anhui State-owned Capital, with its technology maturity and industrial implementation capabilities ranking among the top in the industry. The cooperation with Chengkou County Government is a key strategic move for Ai Hydrogen Technology in deploying its presence in the western hydrogen energy market. In the future, the enterprise will use this project as a starting point to deeply participate in the hydrogen energy industry development in Chongqing and the western region, steadily building a hydrogen energy service system covering northeastern Chongqing and radiating across the Chengdu-Chongqing area. Through technological empowerment, project demonstration, and multi-party collaboration, it will contribute professional expertise to building a modern energy system that is clean, low-carbon, safe, and efficient.

Metal materials are widely used in automotive components, and their price fluctuations significantly impact cost structures. According to SMM estimates, a typical NEV's cost breakdown is as follows: power battery (35%-40%), traction motor and motor controller (10%-20%), body/chassis/interior (30%), and other electronics (7%). This analysis focuses on the traction motor system, as SMM has extensively covered batteries elsewhere. Within the motor system (10%-20% of total vehicle cost), raw materials account for the largest share. Key metal inputs include rare earth-neodymium iron boron (NdFeB) magnets (30%-35%) , copper-enameled wires (15%) , and aluminum-structural components (20%) . The simultaneous surge in these metals from late 2025 to early 2026 has placed immense cost pressure on motor manufacturers and NEV OEMs . 1. Rare Earth Metals: Supply Squeeze and Demand Resilience Drive Prices Up ​ Rare earth prices, particularly for praseodymium-neodymium (PrNd) metal, have risen sharply. As of February 9, 2026, PrNd prices reached 975,000–985,000 RMB/ton , a year-to-date increase of 33.1% . This acceleration stems from tight supply ​ (limited upstream output, weak production activity, and reduced spot availability due to long-term contract deliveries) and robust demand ​ (steady overseas orders for magnetic materials and growing expectations for NEVs and e-bikes in 2026). These factors collectively pushed prices upward . Motor manufacturers face greater challenges than magnetic material suppliers. They must absorb not only soaring rare earth costs but also high copper prices. Compounding this, motor makers struggle to pass cost increases downstream . NEV OEMs, grappling with fierce market competition, resist price adjustments. Consequently, motor producers are caught between expanding losses ​ (if they continue production) and losing market share ​ (if they halt operations). Their weak bargaining power, due to proximity to concentrated downstream customers, exacerbates the strain . 2. Copper: Structural Supply-Demand Imbalance and Financial Factors ​ Copper prices rose sharply from 87,000 RMB/ton in late 2025 to 105,000 RMB/ton in early 2026 , a gain of over 20% , and have remained elevated. This rally was driven by: Supply-chain constraints : Production disruptions in major copper-producing countries (e.g., Chile, Peru), geopolitical tensions, and logistics bottlenecks limited short-term supply. Financial influences : Global liquidity conditions and inflation expectations attracted speculative capital, amplifying price volatility. Strong demand : Sustained optimism regarding data centers and cable demand further supported prices . The impact on motors is direct and significant. Copper, critical for stator and rotor windings, constitutes a substantial portion of motor raw material costs. The price surge adds hundreds of RMB to the cost per motor , translating to billions of RMB in additional annual expenses ​ for large-scale OEMs. This pressure cascades through the supply chain, squeezing margins for material suppliers, motor makers, and vehicle manufacturers. While some industrial motor firms have raised prices, NEV OEMs have so far absorbed the costs, further straining their profitability . 3. Aluminum: Tight Fundamentals Amid Energy Transition Demand ​ Aluminum prices climbed nearly 10% ​ from December 2025 to January 2026, primarily due to structural supply-demand tightness . Demand is bolstered by global energy transition trends (e.g., NEV bodies, battery trays, and e-drive casings) and solar PV growth. On the supply side, aluminum production—highly energy-intensive—faces pressure from elevated global power prices, leading to unstable operational rates. Financial investors' focus on "green metals" has also contributed to price gains . Although aluminum's cost sensitivity is lower than copper's, it is widely used in motor housings, end covers, and cooling systems. Price increases directly raise motor manufacturing expenses, costing hundreds of millions of RMB ​ for producers at million-unit annual scales and eroding margins for motor suppliers and OEMs . 4. Path Forward: Technology and Supply Chain Adaptation ​ The concurrent rise in rare earth, copper, and aluminum prices has created unprecedented cost pressure. Motor and vehicle manufacturers urgently seek cost reductions, but technological solutions (e.g., flat-wire motors , material recycling ) require time. Short-term strategies include long-term supply contracts ​ and futures hedging ​ to manage risks. Long-term success will hinge on material innovation ​ (e.g., reducing rare earth content, optimizing aluminum-for-copper substitution) and vertical supply chain integration ​ to navigate resource constraints . SMM advises industry players to closely monitor policy shifts and alternative technologies, adapting procurement and production strategies dynamically

SMM February 9: The tight supply situation in the raw material spot market continues to intensify, coupled with the holiday effect brought by the approaching Chinese New Year, the overall market is showing a pattern of "rising prices amid shrinking volume." Additionally, a major tungsten enterprise significantly raised its long-term contract prices, reigniting market bullish sentiment. On February 9, the average price of scheelite concentrate (≥65%) reached a record high of 680,500 yuan/metric ton, indicating a year-to-date increase of over 50%! The average price of APT (domestic) also rose to the historic milestone of 1 million yuan per metric ton on February 9, with a year-to-date increase of 49.25%! Tungsten enterprise significantly raised its long-term contract purchase prices for the first half of February Zhangyuan Tungsten Co., Ltd. of Chongyi's prices are as follows: 1. 55% scheelite concentrate: 670,000 yuan per metric ton, up 147,000 yuan per metric ton from the previous round; 2. 55% wolframite concentrate: 669,000 yuan per metric ton, up 147,000 yuan per metric ton from the previous round; 3. Ammonium paratungstate (standard grade zero): 970,000 yuan per metric ton, up 210,000 yuan per metric ton from the previous round. The Ganzhou Tungsten Industry Association's forecast prices for the tungsten market in February 2026 are: 55% scheelite concentrate at 670,000 yuan per metric ton, up 300,000 yuan per metric ton MoM; APT at 970,000 yuan per metric ton, up 300,000 yuan per metric ton MoM; medium-grain tungsten powder at 1,630 yuan per kg, up 480 yuan per kg MoM. (Prices are for reference only; assume commercial risks accordingly.) Furthermore, it is understood that some tungsten enterprises have suspended the publication of their long-term contract prices. Average Price of Ammonium Paratungstate (Domestic) Rises to 1 Million Yuan per Metric Ton, Up Over 49% Year-to-Date According to SMM price assessments, on February 9, the price range for scheelite concentrate (≥65%) was 680,000-681,000 yuan per metric ton, with an average price of 680,500 yuan per metric ton, up 1.19% from the previous trading day. Compared to the average price of 453,500 yuan per metric ton on December 31, 2025, this new high of 680,500 yuan per metric ton represents an increase of 227,000 yuan per metric ton year-to-date, a gain of 50.05%. Compared to the average price of 142,750 yuan per metric ton on December 31, 2024, the cumulative increase over more than a year reaches as high as 376.71% . On February 9, the price range for ammonium paratungstate (domestic) was 990,000-1,010,000 yuan per metric ton, with an average price of 1,000,000 yuan per metric ton. Compared to the average price of 670,000 yuan per metric ton on December 31, 2025, this average of 1,000,000 yuan per metric ton represents a year-to-date increase of 49.25%, rising sharply in sync with scheelite concentrate. Despite the continued sharp rise in tungsten prices, overall market trading activity has not kept pace recently, constrained mainly by multiple factors: First, with the Chinese New Year approaching, traders have become more cautious, focusing purchases on rigid demand, with only limited pre-holiday stockpiling and no large-scale concentrated stockpiling occurring. Second, high tungsten prices have led to both funding pressure and fear of high prices in the market, causing some downstream enterprises to postpone purchases and adopt a wait-and-see attitude. Third, the holiday effect is gradually becoming apparent, with some enterprises already entering a pre-holiday lull, leading to a general pullback in market trading frequency. The cemented carbide industry, a core demand sector for tungsten (accounting for 58% of total demand), is a typical example: affected by the soaring prices of raw materials like tungsten powder, production costs have increased significantly. Furthermore, tungsten materials like tungsten carbide account for over 80% of tool costs, forcing most cemented carbide enterprises to reduce procurement scale and maintain only production for rigid demand, further suppressing overall market trading activity. Outlook Looking ahead to the tungsten market outlook, in the short term, the tight spot supply situation on the raw material side is unlikely to ease quickly, and suppliers' reluctance to sell is expected to persist. The tungsten market is likely to maintain its strong upward trend. Key variables brought by the approaching Chinese New Year still require close attention: On one hand, market trading will gradually stagnate during the holiday period, and whether pre-holiday stockpiling demand concentrates will directly influence the short-term price movement pace. On the other hand, post-holiday enterprise work resumption progress, the recovery of raw material supply, and the strength of downstream demand release will determine whether tungsten prices can remain high. Additionally, international market price fluctuations, the signing of enterprise long-term contracts, industry policy direction, and the cost pass-through effect in the cemented carbide industry require continuous monitoring, while remaining vigilant against increased market risks from intensified price fluctuations in the high price range.

[SMM Magnesium Weekly Review: Magnesium Market Remained Stable Pre-Holiday, Prices Steady in Major Production Areas, Overseas Inquiries Increased but Trading Remained Sluggish] This week, the domestic magnesium industry chain market operated steadily overall. As the Chinese New Year holiday approached, market trading activity gradually slowed, with participants generally adopting a wait-and-see attitude. The dolomite market remained stable overall; the suspension of production by top-tier enterprises in the Wutai region led to tight supply of high-quality resources, but other major production areas promptly compensated for the gap, ensuring stable supply. Steady operations at primary magnesium enterprises in Shaanxi, Shanxi, and Inner Mongolia generated rigid demand, coupled with rising pre-holiday freight costs pushing up expenses, supporting relatively strong prices. The magnesium ingot market held steady, as smelters in major production areas saw eased funding pressure and maintained firm offers, while downstream pre-holiday stockpiling concluded, resulting in sluggish spot trades. In the Tianjin Port FOB market, overseas new orders were scarce, mostly for forward delivery, with the Chinese New Year holiday impacting the progress of actual transactions. Magnesium powder enterprises slowed their production pace after completing raw material stockpiling, as both domestic and international procurement neared completion, leading to a cooling trading atmosphere. Magnesium alloy enterprises operated normally, but downstream die-casting and end-user companies gradually began holiday breaks, resulting in subdued orders. The tight supply-demand balance supported firm processing fees.

In summary, during the 2026 Chinese New Year period, the five segments of the aluminum industry chain exhibited differentiated operational trends.

Societe Generale analysts Michael Haigh, Ben Hoff and Jeremy Sellem highlight how Tether’s expanding Gold holdings have become a major force in the Gold market.

The overall Co3O4 market operated steadily, with top-tier enterprises maintaining their offers at 370,000 yuan/mt. Market transactions showed significant divergence by product voltage grade: high-voltage products traded in the range of 365,000–370,000 yuan/mt, while low-voltage product prices settled between 360,000–365,000 yuan/mt. On the supply side, although top-tier integrated enterprises ensured stable product supply, their cobalt intermediate product raw material inventory had become tight, and the proportion of externally purchased cobalt salt continued to rise. On the demand side, the market exhibited the characteristic of "stable long-term contracts and scarce spot orders," with downstream procurement primarily focused on fulfilling long-term contracts, and limited new spot demand. Prices are expected to remain largely stable and hold steady at highs before the Chinese New Year.

In the futures market for stainless steel on March 19th, the SS2405 contract opened at 13,785 yuan per ton and closed at 13,745 yuan per ton, a decrease of 5 yuan per ton compared to the previous trading day's closing price. Intraday trading weakened compared to the previous trading day, with a decrease of 69,679 lots in trading volume and a decrease of 4,724 lots in open interest.