This week, prices in the second-life battery market were generally stable, while the market's structural divergence remained evident. Cost side, trends in various raw materials diverged, with overall costs rising slightly. Lithium carbonate prices increased, pushing up battery cell recycling and processing costs; nickel sulphate and cobalt sulphate prices remained stable, easing one-sided cost pressure, and costs edged up mildly over the week. Supply side, supply of popular energy storage battery cell models was tight, with limited spot availability; conventional models were sufficiently available, and no broad-based shortage emerged in the market. Demand side, the gap between energy storage and the EV market remained wide. Demand in the EV sector stayed sluggish, with low purchasing enthusiasm and insufficient support for prices; energy storage demand remained the mainstay of the market, with stable rigid demand. However, prices were currently at high levels, downstream purchasing became more rational, willingness to purchase at high prices declined, and further price increases were currently facing resistance.

Recently, the official account of Shaanxi Construction No. 7 Construction Group announced that Phase I of the 200 MW/301.75 MWh hybrid frequency regulation ESS power station project in the Yuncheng Economic and Technological Development Zone, Shanxi, which it undertook, was successfully connected to the grid and officially entered the trial operation stage. The project mainly includes the construction of a 50 MW flywheel independent frequency regulation ESS, a 150 MW LFP electrochemical ESS, a 220 kV substation, and supporting facilities, adopting a hybrid model of “flywheel energy storage + LFP electrochemical energy storage.”

On March 23, Suzhou Huaya Intelligent Technology Co., Ltd. issued an announcement stating that the company signed the "Energy Storage Cabinet Product Procurement Framework Agreement" with Suzhou Landong Technology Co., Ltd. The estimated total annual transaction amount does not exceed 20 million yuan, accounting for 1.12% of the company's audited net assets in 2024. According to the terms of the framework agreement, Landong Technology intends to purchase precision metal structural components, which are Huaya Intelligence's main products, for use in the production of its energy storage cabinets. Furthermore, all production and manufacturing related to Landong Technology's business products will be completed by Huaya Intelligence.

[SMM Magnesium Weekly Review: Magnesium Market Held Up Well, With Cost Support and a Tug-of-War Between Sellers and Buyers Continuing] This week, the overall magnesium industry chain held up well, with prices of all products generally raised. The raw material dolomite market remained stable, with ample supply and steady demand. Magnesium ingot prices consolidated at highs. At the beginning of the week, supported by rising energy costs such as ferrosilicon and coke and tight spot availability, prices jumped by 300 yuan/mt. Subsequently, downstream fear of high prices emerged, transactions failed to keep pace, and prices consolidated at highs. In foreign trade, the center of magnesium ingot FOB quotes moved up to $2,440-2,470/mt. Wait-and-see sentiment outside China remained strong, but influenced by bullish expectations in China, forward orders were gradually locked in. Magnesium powder prices remained firm, with strong cost support. Export data increased YoY, while domestic trade was mainly driven by just-in-time procurement. The benchmark price of magnesium alloy held up well, but the release of new capacity led to increased supply, processing fees stayed in the doldrums, and the market showed a pattern of strong supply and weak demand. Overall, cost support remained the core driver behind magnesium prices fluctuating at highs, while downstream acceptance of high prices was limited, and the market may continue this tug-of-war in the short term.

Silver has seen one of the sharpest pullbacks in recent years within just a few weeks. From the high of US$97.30 on March 2, the price fell to US$61.21 by March 23, losing around 37%. For the market, this was an abrupt break from the previous momentum.

On March 25, SHFE issued an announcement approving Guangdong CMST Shengshi Zhaobang Logistics Co., Ltd. as a copper delivery warehouse The original text was as follows: Announcement on Approving Guangdong CMST Shengshi Zhaobang Logistics Co., Ltd. as a Copper Delivery Warehouse Recently, our exchange received the relevant application materials from Guangdong CMST Shengshi Zhaobang Logistics Co., Ltd. In accordance with the Delivery Warehouse Management Measures of the Shanghai Futures Exchange and other relevant regulations, it was decided after deliberation that: I. Guangdong CMST Shengshi Zhaobang Logistics Co., Ltd. was approved to become a copper delivery warehouse of our exchange. The storage address is No. 108 Dongjiang Avenue, Huangpu District, Guangzhou, Guangdong Province, with an approved storage capacity of 20,000 mt, and no regional premiums will be applied. II. It will be put into operation as of the date of this announcement. All relevant parties should attach great importance to this matter, effectively carry out all related work, and ensure the normal and orderly conduct of delivery business. Hereby announced. Shanghai Futures Exchange Mar 2026 Click to view announcement details:

Precious metals staged their first coordinated rally in nearly two weeks on Tuesday as the prospect of a diplomatic resolution to the U.S.-Iran conflict continued to lift market sentiment and weaken the dollar.

[SMM Tin Morning Comment: The Most-Traded SHFE Tin Contract Maintained a Fluctuating Trend After Opening Slightly Higher in the Night Session, Spot Market Transactions Showed Mediocre Performance]

Recently, China's first water-based organic flow battery distributed energy storage project was officially put into operation in Suqian Economic Development Zone, Jiangsu Province, with a parallel project simultaneously launched in Chuzhou, Anhui Province. The core of this project utilizes water-based organic flow battery technology, where energy is stored in a liquid electrolyte and charging/discharging is achieved through the circulating flow of the electrolyte. By replacing traditional strong acid electrolytes with a neutral aqueous solution, it offers outstanding advantages in intrinsic safety and environmental friendliness.

On Tuesday, Eastern Time, Chicago Fed President Goolsbee warned that the energy shock stemming from the Middle East conflict is threatening the US Fed’s dual mandate, complicating its monetary policy outlook and potentially delaying interest rate cuts—echoing earlier remarks by Fed Governor Barr that inflation risks and oil prices support keeping rates unchanged for longer. Specifically, the energy price shock poses risks to both sides of the US Fed’s dual mandate, making the trade-off between controlling inflation and supporting economic growth more complex. “The new shock has undoubtedly disrupted the US Fed’s plans... and inflation was already uncomfortably high even before the shock occurred,” Goolsbee said bluntly. Goolsbee noted that central bank policymakers around the world lack clear historical experience to draw on in dealing with the current mix of geopolitical risks and inflationary pressures, and therefore “this is a bad situation for central banks.” Goolsbee stressed that the current path of interest rates at central banks around the world still depends heavily on how the conflict evolves, especially its impact on energy markets. As for the US Fed, he said he is not yet able to judge whether it will be able to cut interest rates again, because that outlook depends on the duration of the conflict and the extent to which rising oil prices affect overall inflation. “Only if inflation shows improvement can one realistically expect rates to fall this year,” he added, further reinforcing the US Fed’s data-dependent stance. The US Fed’s Internal Stance Is Turning More Cautious These remarks by Goolsbee were highly consistent with earlier comments by Fed Governor Michael Barr. Barr had previously also emphasized that, given that US inflation remains above target and elevated oil prices are further pushing up inflation, interest rates may need to remain unchanged “for some time.” In addition, Barr likewise pointed out that although the US labour market appears to be stabilizing, US Fed officials need to see clear evidence of sustained disinflation before considering interest rate cuts. Taken together, these comments highlight the US Fed’s increasingly cautious shift in stance. As geopolitical developments exert a growing influence on the US inflation outlook, the combination of persistent price pressures and external shocks has reinforced expectations that high inflation will last longer, while also creating uncertainty over the feasibility of further policy easing in the near term. For markets, the key point is that after the Russia-Ukraine shock several years ago, energy-driven inflation risks have now been firmly incorporated into the US Fed’s reaction function. As a result, US Fed rate expectations may remain sensitive not only to economic data, but also to developments in the Middle East conflict and their impact on oil prices.