As of April 7, the operating rate of 50 major construction material-producing electric furnace steel mills nationwide was 41.42%, flat WoW; the capacity utilization rate was 42.6%, flat WoW; daily average production of construction materials was 94,900 mt, flat WoW. During the survey period (March 31–April 7), the overall operating rate of electric furnace mills nationwide remained stable, with fluctuations being relatively small. Currently, profitability of construction material products among electric furnace enterprises showed some divergence. Some enterprises have already fallen into losses due to high raw material costs and declining finished product prices, while others maintained a certain profit margin through strategies of adjusting product specifications and price premiums. Production and operations side, some electric furnace mills are already facing weak shipments and profitability under pressure. Additionally, South China has entered the rainy season, and the rainy and overcast weather conditions will further affect downstream construction progress. If profitability continues to deteriorate going forward, electric furnace enterprises may potentially reduce their operating hours.

[SMM Titanium Spot Daily: Cost Support Strengthens, Rutile Titanium Dioxide Prices Rise Slightly] On April 7, titanium dioxide market prices rose slightly. High sulphuric acid prices coupled with expectations of supply tightening supported titanium dioxide prices. Enterprises operated at high rates, but demand was mediocre. Domestic trade was driven mainly by rigid demand, while export trade was divergent. In the short term, prices are expected to hold up well, but further rises depend on demand improvement.

On April 4, the megawatt (MW)-class hydrogen-fuelled aviation turboprop engine AEP100, independently developed by AECC Academy of Aero-Engine Research, was installed on a 7.5 mt-class unmanned transport aircraft and successfully completed its maiden flight at Zhuzhou Lusong Airport. This marked the world's first flight test of a megawatt-class hydrogen-fuelled aviation turboprop engine, signifying a breakthrough in the development of green aviation propulsion in China. The maiden flight proceeded smoothly throughout, with the engine operating normally and in good condition. The flight lasted a total of 16 minutes in the air, covering a distance of 36 kilometres at a speed of 220 kilometres per hour and an altitude of 300 metres above ground. The aircraft returned safely after successfully completing all scheduled flight test objectives, and the maiden flight mission was a complete success. The successful maiden flight was of great significance. It not only achieved a leap from technology to engineering in China's independent development of megawatt-class hydrogen-fuelled aviation engines, but also signified that China had established the full technology chain in this field, from core components to complete engine integration. It verified the engineering reliability of the hydrogen fuel propulsion system's compatibility with the flight platform, laying a critical foundation for the subsequent industrialisation of hydrogen-powered aviation applications. This became an important milestone in China's transition of green aviation propulsion from technological exploration to engineering practice.

Recently, the Guyang-Baiyin'ebo Gas Transmission Pipeline Project's Guyang First Station and valve chamber, constructed by Shaanxi Construction & Installation Group, successfully passed the completion acceptance inspection. This key period marks a solid step toward official commissioning for this innovative infrastructure project equipped with a 20% hydrogen-blending transmission capability. It is reported that the Guyang-Baiyin'ebo Gas Transmission Pipeline Project is a key construction project under the "County-to-County Connection in Western Inner Mongolia" initiative of the Inner Mongolia Autonomous Region's 14th Five-Year Oil and Gas Development Plan. The pipeline stretches 125 km in total, starting from the Guyang First Station and running northward through Guyang County and Darhan Muminggan Joint Banner in Baotou City and the Baiyin'ebo Mining District, with its terminus at the Barun Industrial Park. As a distinctive project equipped with a 20% hydrogen-blending transmission capability, its completion and commissioning will drive the formation of a new interconnected ring-network gas supply pattern in the central and western regions of the Inner Mongolia Autonomous Region, further enhancing energy supply security. This project is of great significance to the development of Baotou City. It will help this "World Capital of Rare Earth and Grassland Steel City" optimize its energy structure, improve production efficiency, and reduce energy costs, while providing energy support for technological innovation and industrial upgrading in the rare earth industry, building a stable energy supply chain, and strengthening the overall economic strength of the region. During the construction period, the Shaanxi Construction & Installation Group project team, upholding the enterprise philosophy of "Building for Good," successfully overcame challenges such as a short effective construction window and complex construction conditions. At the Kundulun River crossing section, the team employed large-scale horizontal directional drilling technology with round-the-clock operations, achieving a successful single-pass crossing with a 100% pass rate in conductivity testing. In addition, the project was the first in China to implement the new standard "Steel Pipes for Pipeline Transportation Systems in the Petroleum and Natural Gas Industry," verifying the feasibility of large-scale, long-distance hydrogen transportation using spiral submerged arc welded pipes and contributing to the realization of the nation's "dual carbon" goals.

Recently, the Hubei Provincial Energy Bureau released the public announcement of the sixth batch of first (set of) major technological equipment in the energy sector. The announcement showed that four major hydrogen energy technological equipment projects were selected, covering key segments of the hydrogen energy sector and highlighting the progress of hydrogen energy equipment R&D and application in the province. The four selected equipment projects are: a kilonormal-cubic-meter-class alkaline-PEM integrated electrolysis hydrogen production system, a marine methanol fuel supply system, a multi-chamber physical vapor deposition system for hydrogen fuel cell bipolar plates, and a large-scale off-grid flexible hydrogen production system, all of which feature distinctive innovation and application value. The kilonormal-cubic-meter-class alkaline-PEM integrated electrolysis hydrogen production system was jointly developed by five enterprises, with China Power Construction (Zaoyang) New Energy Development Co., Ltd. as the user entity, based on the China Power Construction Zaoyang New Energy Hydrogen and Oxygen Production Project. The equipment pioneered wide-load flexible regulation technology, enabling 10%–120% wide-load adjustment and cold start-up in ≤30 minutes, and is compatible with renewable energy, which is of great significance for promoting high-quality development of the hydrogen energy industry. The marine methanol fuel supply system was independently developed by Jingmen Hongtu Special Aircraft Manufacturing Co., Ltd., with its core encompassing multiple key technologies. Its methanol skid adopts an integrated skid-mounted design to achieve "plug-and-play" functionality and features a proprietary three-step pressure stabilization method that can handle fluctuations in methanol consumption, ensuring stable operation under complex working conditions. The multi-chamber physical vapor deposition system for hydrogen fuel cell bipolar plates was developed by Wuhan Research Institute of Materials Protection, China Academy of Machinery Science and Technology Group Co., Ltd. It achieved a leap from batch processing to 15-chamber fully automated continuous production, resolved core deficiencies of similar equipment in China, achieved 100% domestic component supply, and established a benchmark across the entire chain. The large-scale off-grid flexible hydrogen production system has Qianjiang Qingbei Hydrogen Energy Co., Ltd. as the user entity and was jointly developed by four organizations, based on the National Energy Administration hydrogen energy pilot project — the Hubei Qingbei Hydrogen Energy Qianjiang Green Hydrogen Project (green hydrogen capacity of 20,000 normal cubic meters per hour). Its solution is innovative and meets the application requirements. The selection of four hydrogen energy equipment projects is an affirmation of the province's hydrogen energy equipment R&D capabilities. It will drive breakthroughs in key hydrogen energy technologies, accelerate the industrialisation and application of equipment, and inject momentum into the province's energy structure transformation.

As of now, the FOB price of Indonesian MHP nickel was $15,341/mt Ni, and the FOB price of Indonesian MHP cobalt was $51,425/mt Co. MHP payables (against SMM battery-grade nickel sulphate index) stood at 86-87, and the MHP cobalt element payable indicator (against SMM refined cobalt (Rotterdam warehouse)) was 94. The FOB price of Indonesian high-grade nickel matte was $15,623/mt Ni.

[SMM Tin Morning Brief: High Prices at the Beginning of Last Week Significantly Suppressed Downstream Purchase Willingness, and Some Enterprises Later Carried Out Moderate Restocking to Meet Rigid Demand at Lower Prices]

This week, against the backdrop of fluctuating upward copper prices, the secondary copper industry chain showed a complex situation in which extremely tight upstream raw material supply coexisted with persistent negative margins for downstream finished products. In the secondary copper rod market, SMM data showed that the operating rate fell further to 5.45% this week, down 0.38 percentage points MoM and 25.43 percentage points YoY

The final March S&P Global services PMI released by the US came in at 49.8, a reading that was not only below the preliminary 51.1, but also marked the first contraction since January 2023. During this period, growth in new orders fell to its lowest point in nearly two years, while export trade conditions deteriorated further compared with February. Meanwhile, the final composite PMI was confirmed at 50.3, significantly below the preliminary 51.4 and the lowest level since September 2023.

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......