Recently, the Jinta Baishuiquan 300MW/1200MWh grid-side independent energy storage station project of Gansu Jiuquan Jinchu New Energy Co., Ltd. is accelerating construction. This project is invested in and constructed by Jiuquan Jinchu New Energy Co., Ltd., a subsidiary of Beijing Hyperstrong Technology Co., Ltd., with a total investment of 900 million yuan. It is a planned integrated construction project for the first phase. The project will build a new 330kV booster station, connecting to the regional power grid through a combination of overhead lines and cables, with a total line length of 0.803 kilometers. The project plans for a total of 60 energy storage units of 5MW/20MWh each, along with complete supporting converter, substation, distribution, and secondary control equipment.

SMM, June 12: Spot #1 copper cathode in Guangdong against the front-month contract: high-quality copper was quoted at premiums of 270 yuan/mt, up 30 yuan/mt from the previous trading day; standard-quality copper was quoted at premiums of 210 yuan/mt, up 30 yuan/mt from the previous trading day; SX-EW copper was quoted at premiums of 150 yuan/mt, up 30 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 104,715 yuan/mt, up 1,090 yuan/mt from the previous trading day, while the average price of SX-EW copper was 104,625 yuan/mt, up 1,075 yuan/mt from the previous trading day. Spot market: Guangdong’s inventory fell for the ninth consecutive day, hitting a new low for the year and coming in 9,000 mt below the same period last year. Driven by tight inventory, suppliers ignored a sharp rebound in copper prices today and continued to hold prices firm when selling, sending premiums up 30 yuan/mt from yesterday. Spot premiums accumulated an increase of 230 yuan/mt this week. The purchasing sentiment for copper cathode in Guangdong today stood at 2.22, down 0.08 from the previous trading day, while the selling sentiment reached 2.64, down 0.2 from the previous trading day (historical data can be accessed via the database). Overall, with inventory at a record low, suppliers actively held prices firm, driving premiums up by a cumulative 230 yuan/mt this week, though trading sentiment weakened.

Today, spot #1 copper cathode in North China against the front-month contract was quoted at discounts of 260-140 yuan/mt, with the average discount at 200 yuan/mt, down 10 yuan/mt from the previous trading day. The average transaction price was 104,490 yuan/mt, up 1,460 yuan/mt from the previous trading day.

This week (June 5–June 11), the SMM copper wire and cable enterprise operating rate recorded 71.03%, up 2.65 percentage points WoW and down 5.28 percentage points YoY. Falling copper prices this week effectively boosted end-user purchase willingness, and enterprises saw an increase in new orders, driving the operating rate to rebound. From the end-use demand perspective, orders in the power sector performed well, offshore wind power orders remained stable, and construction sector orders also showed marginal recovery. On the inventory side, some enterprises remained optimistic about the future copper price outlook and took the opportunity to restock during the price pullback, with raw material inventories rising 3.73% WoW; finished product inventories fell 2.95% WoW, mainly because the initial copper price decline spurred end-user cargo pick-up enthusiasm. Looking ahead to next week, as copper prices continued to decline toward the end of this week, end-user wait-and-see sentiment intensified, waiting for lower prices to enter the market, and order growth lacked sustainability. However, with new orders gradually entering the production schedule, overall operations will remain stable. SMM expects that next week (June 12–June 18) the copper wire and cable operating rate will continue to increase by 0.3 percentage points WoW to 71.33%, down 1.93 percentage points YoY.

[SMM Brass Billet Flash] Looking ahead to next week (6.12-6.18), most brass billet enterprises will continue production based on prior orders. Currently, the industry fundamentals—tight raw material supply, elevated costs, and sluggish end-use demand—have yet to show meaningful improvement. SMM expects the industry operating rate to pull back slightly by 0.32 percentage points WoW to 52.27% next week, with operating rates remaining under pressure in the near term.

[Lead Spot Market Update] It was learned that recently lead prices trended weakly, and downstream lead-acid battery enterprises generally bought the dip, with purchases concentrated in the primary lead sector. Smelters' in-factory inventories in major primary lead producing areas, represented by Henan, declined significantly, and lead ingot dispatches faced queues. Today, spot lead quotation discounts narrowed substantially. The latest trader's EXW cargo pick-up quotation was at parity against the SHFE lead 2607 contract. Yesterday, the transaction price was at a premium of 0~25 yuan/mt against the SMM #1 lead average price, ex-works (i.e., a discount of 140~120 yuan/mt against the SHFE lead 2607 contract).

During the week (6.05-6.11), the operating rate of the brass billet industry in China was 52.59%, up 0.74 percentage points WoW and up 0.58 percentage points YoY. Copper prices pulled back sharply this week, stimulating a moderate release of downstream rigid demand orders. Producers' enthusiasm for starting production increased, leading the industry operating rate to edge up. The decline in copper prices prompted enterprises to proactively stockpile at low prices. However, secondary brass supply remained tight and prices stayed high, constraining enterprises’ restocking room. As a result, raw material inventory only edged up to 3.57 days. On the demand side, the traditional off-season impact continued. Rigid demand from end-use industries such as home appliances, sanitary ware, and hardware was insufficient. Downstream cargo pick-up pace was slow, and overall market trading sentiment was mediocre. Currently, the industry's finished product inventory days remained high at 5.31 days, and destocking was under pressure. Most brass billet enterprises still needed to destock. Looking ahead to next week (6.12-6.18), most copper billet enterprises are expected to continue production based on previous orders. At present, with tight raw material supply, high costs, and weak end-use demand, the industry fundamentals have not improved significantly. SMM expects the industry operating rate next week to pull back slightly by 0.32 percentage points WoW to 52.27%, and up 1.0 percentage points YoY. The industry operating rate will remain under pressure in the short term.

SMM June 12: In early trading, the SHFE aluminum 2606 contract fluctuated upward, with its overall price center higher than the previous trading day. Selling sentiment in the market increased today, but buying interest among downstream users was suppressed by the higher aluminum prices. However, destocking accelerated, and premium expectations narrowed, supporting firm quotes and transaction prices. Mainstream spot transaction prices were at a discount of 90–100 yuan/mt against the SHFE aluminum 07 contract. The selling sentiment index in east China was 2.96, up 0.07 from the previous day, and the buying sentiment index was 2.83, down 0.04. SHFE aluminum futures showed a rebound uptrend today. Despite the weekend stockpiling cycle, downstream processing enterprises in central China had ample earlier stockpiles, leading to low buying interest. Suppliers tended to sell heavily while the discount had not yet widened, causing a price collapse and decline. Overall market trading sentiment turned weaker compared with the previous two days. The actual transaction price range in central China was around a discount of 130–160 yuan/mt against the SHFE aluminum 07 contract. The selling sentiment index in central China was 2.91, up 0.01 from the previous day, while the buying sentiment index was 2.21, down 0.01. On the inventory front, aluminum ingot inventories in major consumption areas fell by 1.4 from the previous day, with all three regions showing destocking.

This week, lead concentrate TCs were generally flat. The weekly average TC for domestic Pb50 was 200 yuan/mt Pb, and for imported Pb60 it was -$145/dmt. During the week, TCs for standard ores held steady. Some enterprises that set prices at month-end or early in the month continued with previous prices. For silver-lead ores rich in copper and zinc, with non-payable metal content, transaction TCs were at a high level of around -2,900 yuan/mt Pb. For imported ores, smelters were willing to accept silver-lead ore TCs exceeding -$200/dmt, driven by payable metal credits and blending needs. Also, although silver prices fell to around 15,000 yuan/mt during the week, the decline was brief and did not form an absolute low. Combined with high silver recovery rates at lead smelters, the payable indicator for silver in lead concentrates has not yet been lowered.

[SMM Daily Commentary: Silver Price Corrective Rebound, Spot Silver Transactions at Parity Await Guidance] SMM June 12 - The US-Iran tensions have eased, and silver prices rebounded slightly. Affected by the "rush to buy amid continuous price rise and hold back amid price downturn" mentality, transactions in the spot market were concentrated at parity. Going forward, attention needs to be paid to downstream purchase willingness.