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 Daily Brief Review of Coking Coal and Coke] In terms of supply, coking coal costs for coke producers declined somewhat, and with the first round of coke price increases now fully implemented, losses at coke producers narrowed significantly, boosting production enthusiasm. Coke supply increased steadily, while downstream demand remained moderate, shipments were smooth, and producers' own inventory continued to decline. Demand side, steel mill blast furnaces gradually resumed production, and daily average hot metal production continued to increase, driving up rigid demand for coke. However, steel mills have recently seen good coke arrivals, with most mills' coke inventory at mid-range levels and overall procurement sentiment remaining average. In summary, coke market fundamentals have shifted toward looser supply and demand, and coupled with weaker recent cost support for coke, the coke market may remain temporarily stable in the short term, with further price increases facing greater difficulty.

[ION Minerals Expands Its Lithium Resources Footprint in Texas and Saskatchewan] ION Minerals said it had achieved a major expansion of its diversified lithium resources portfolio in the US and Canada. In a late-March news release, the Houston-based company said the expanded land footprint was achieved through prudent acquisitions, targeted leasing, and focused geological assessments. ION now controls more than 280,000 acres across three project areas, further cementing its position as a leading developer of critical lithium resources for the North American battery supply chain. Smackover is a subsurface geological formation stretching from Florida to Texas and is rich in lithium brine. Source: https://www.mining.com/ [EnergyX's "Lone Star" Project Revolutionizes Domestic Lithium Production in the US] EnergyX's groundbreaking "Lone Star" project marked a major milestone in the US pursuit of critical minerals independence through advanced direct lithium extraction technology. This pioneering facility is the first commercial-scale direct lithium extraction plant to enter operation in the US, addressing long-standing supply chain vulnerabilities while establishing an operational framework for domestic battery-grade lithium production. As demand for critical minerals accelerates amid the global energy transition, the project demonstrates how innovative extraction technologies can transform regional resources into strategic assets. Direct lithium extraction differs fundamentally from traditional mining methods, targeting subsurface brine rather than hard-rock deposits or surface evaporation systems. EnergyX's "Lone Star" project demonstrated this approach through its GET-Lit™ technology, which uses advanced filtration and chemical separation processes to treat brine from the Smackover formation. Source: https://discoveryalert.com.au/ [University of Surrey Develops a Lithium-Ion Battery Anode to Enhance Energy Storage] Researchers at the University of Surrey's Advanced Technology Institute (ATI) developed a new-type battery design that could significantly extend EV driving range. In a study published in ACS Applied Energy Materials, the researchers introduced a lithium-ion battery anode. The anode achieved one of the highest energy storage capacities reported to date in a silicon-carbon nanotube system, while remaining stable after hundreds of charge cycles. Lithium-ion batteries power a wide range of devices in modern technology. Graphite is the most commonly used anode material, offering high stability but limited energy storage capacity. By contrast, silicon has a much higher capacity, but it expands during charging, causing cracking and performance degradation over time. Source: https://www.automotivepowertraintechnologyinternational.com/

[Silicon Metal Price Center Remained in the Doldrums]: This week, the silicon metal market stayed weak, with the transaction center for some silicon metal grades edging lower. As of April 2, SMM east China prices were oxygen-blown #553 silicon at 9,000-9,200 yuan/mt, down 100 yuan/mt WoW; 441# silicon at 9,300-9,400 yuan/mt, down 50 yuan/mt WoW; and 3303# silicon at 10,100-10,300 yuan/mt, down 100 yuan/mt WoW. In the futures market, the most-traded silicon metal contract remained weak, with the SI2605 contract closing at 8,300 yuan/mt on Thursday, down 435 yuan/mt WoW. Spot declines were narrower than futures prices, and the advantage in supplier shipments shifted from silicon enterprises to trading firms engaging in both spot and futures market. During the week, market prices were under pressure, while procurement volume from some downstream users and export traders increased, with transactions in some grades remaining moderate.

[SMM Tin Morning Brief: The Most-Traded SHFE Tin Contract Saw Small Fluctuations and Pulled Back in the Night Session, While Downstream Enterprises Mostly Adopted a Purchasing-as-Needed Strategy]

[SMM Silicon-Based PV Morning Briefing] Silicon metal: The silicon metal market remained in a weak stalemate. Yesterday, SMM east China oxygen-blown #553 silicon was at 9,100-9,200 yuan/mt, down 50 yuan/mt from the previous day. Weaker expectations for production cuts on the supply side weighed on market sentiment. At the start of the week, futures prices trended weaker, and the center of spot transactions for some cargoes in the market edged lower. Cost support from the raw material side remained firm, and prices may fall back into stalemate. Polysilicon: N-type recharging polysilicon was quoted at 35.5-41.5 yuan/kg. Polysilicon prices have continued to decline recently, mainly affected by market sentiment and inventory exit the market among some leading enterprises. At present, low-priced polysilicon has already fallen below the cost line of some producers, and the sentiment to hold quotes firm has strengthened somewhat. Relevant meetings still need to be monitored going forward.

[SMM Daily Brief Review of Coking Coal and Coke] In terms of supply, coking coal costs charged into coke ovens at coking enterprises remained high. Coupled with solid demand for coke from steel mills and increased procurement volumes, coke inventory at coking enterprises continued to decline. On the demand side, blast furnace production resumptions at steel mills continued to advance, and hot metal production kept rebounding, strengthening rigid demand for coke. In summary, the supply-demand structure of coke remained tight. In the short term, the coke market may continue to hold up well, and the first round of coke price increases is expected to be implemented soon.

On March 30, accompanied by a resounding whistle, the nation’s first 3,000 kW pure electric locomotive integrating charging and battery swapping slowly entered the port railway marshalling yard of Lianyungang Port and was officially put into operation.

[SMM Nickel Flash] Iranian Parliament Approves Bill to Levy Transit Fees on the Strait of Hormuz, Payable in Iran’s Local Currency According to CCTV News, on March 30 local time, the National Security Committee of the Iranian Parliament passed a bill proposing to charge fees to vessels transiting the Strait of Hormuz. The plan includes implementing financial arrangements and a fee-charging system in Iranian rials; prohibiting US and Israeli vessels from passing through the Strait of Hormuz; maintaining Iran and its armed forces’ dominant position; barring passage by countries participating in unilateral sanctions against Iran; and cooperating with Oman to formulate the relevant legal framework.

SMM Nickel News, March 31: Macro and market news: (1) The State Administration for Market Regulation issued a notice on further implementing the Anti-Unfair Competition Law of the People's Republic of China. The notice mentioned comprehensively addressing "involution-style" competition. It said various anti-unfair competition measures would be used in a coordinated manner to focus on preventing and curbing "involution-style" competition in key industries and sectors such as the platform economy, PV, lithium battery, and NEV. (2) Iran's parliamentary National Security Commission passed a bill proposing to charge fees on vessels transiting the Strait of Hormuz. The plan included implementing financial arrangements and a charging system in Iranian rial, and banning US and Israeli vessels from passing through the Strait of Hormuz. Spot market: On March 31, the SMM price of #1 refined nickel fell by 750 yuan/mt from the previous trading day. In terms of spot premiums, the average price premium of Jinchuan #1 refined nickel was 3,750 yuan/mt, down 1,000 yuan/mt from the previous trading day; the spot premiums for mainstream domestic brands of electrodeposited nickel were in the range of -800-400 yuan/mt. Futures market: The most-traded SHFE nickel contract (2605) continued to decline in early trading and closed the morning session at 134,370 yuan/mt, down 1.13%. Supply side, tightening in nickel ore has evolved into dual cost support from "ore + taxes," providing solid support for the bottom of nickel prices, but weak end-use demand and continued inventory accumulation still capped upside room for nickel prices. Nickel prices are expected to maintain a fluctuating trend in the short term, with the core trading range of the most-traded SHFE nickel contract at 133,000-143,000 yuan/mt.