The most-traded HRC contract closed at 3,325 today, slipping 0.03% throughout the day. Spot side, HRC prices firmed, edging up 10 yuan/mt, while CRC prices remained flat, with overall trading on the weak side. City-level HRC inventory data was released today. Zhangjiagang, Ningbo, and Lecong continued destocking, but the pace of destocking slowed down, while Shanghai and Tangshan experienced inventory buildup. City inventory trends diverged. Due to the Dragon Boat Festival holiday, a temporary, modest buildup in HRC social inventory is expected this week. Going forward, impacted by the Dragon Boat Festival holiday and the failure of demand to rebound post-holiday, the fundamental pressure on sheets & plates is emerging. However, with market talk of coke initiating a ninth round of increase, cost support for sheets & plates prices still holds. In the near term, plates & sheets prices are projected to remain in the doldrums.

[SMM Silicon-Based PV Morning Meeting Summary] Silicon metal: SMM oxygen-blown #553 silicon in east China was at 9,100-9,200 yuan/mt yesterday, and #441 silicon was at 9,300-9,400 yuan/mt. The most-traded futures contract hovered around 8,500 yuan/mt. Silicon metal prices continued to move sideways in a narrow range. In recent days, the market has seen no new news disruptions, leading to a stalemate in price changes. Increasing supply put prices under pressure in the short term. Wafer: Market prices for 18X wafers were 0.86-0.9 yuan/piece, 210RN wafers were 0.96-1.00 yuan/piece, and 210N wafers were 1.16-1.2 yuan/piece. Smaller factories have already begun to see transactions at lower prices. 18X wafers are under the most severe pressure, and the high end of the overall price range is trending further downward.

In May 2026, China's copper cathode import and export market continued and deepened the pattern of "rising imports, falling exports". Driven by phased changes in domestic demand and the import arbitrage window, copper cathode imports kept climbing steadily, while exports contracted notably following the high base earlier.

SMM Morning Meeting Summary: Overnight LME copper opened at $13,720/mt, hitting the intraday high of $13,740.5/mt right at the open, then fluctuated downward to a low of $13,633.2/mt before finally settling at $13,587/mt, up 0.62%. Trading volume reached 16,000 lots, and open interest stood at 252,000 lots, down 969 lots from the previous trading day, as bulls reduced positions. Overnight, the most-traded SHFE copper 2607 contract opened at 104,990 yuan/mt, edged up to 105,170 yuan/mt in early trading, then fluctuated downward to a low of 104,470 yuan/mt, and finally settled at 104,990 yuan/mt, down 0.24%. Trading volume reached 14,000 lots, and open interest stood at 104,000 lots, down 2,268 lots from the previous trading day, as bulls reduced positions.

[SMM Lead Morning Brief: Macro Situation Improves, Lead Prices in and outside China Stop Falling and Rebound] SMM June 23 news: Overnight, LME lead opened at $1,956.5/mt, and in early trading, LME lead trended weaker, once falling below $1,950/mt. Later, the Middle East peace talks progressed positively...

[SMM Lead Morning Meeting Summary: Macro and Fundamental Bullish and Bearish Factors Coexist, Lead Prices Expected to Consolidate] On Monday, the first round of high-level talks between the US and Iran concluded, and a joint statement released by Qatar and Pakistan showed that all parties reached a roadmap. After the Dragon Boat Festival holiday, lead ingot social inventory accumulated as expected, putting lead prices under pressure. Currently, in the mid-year period, upstream and downstream enterprises are facing...

[SMM Morning Meeting Summary: LME Zinc Held Up Well on Expectations of De-escalation in Geopolitical Conflict] Overnight, LME zinc formed a bullish candlestick, with the 10/20-day moving averages providing support below and the upper Bollinger Band exerting resistance above. Preliminary talks between the U.S. and Iran may pave the way for a war agreement, reigniting optimism and keeping LME zinc firm.

The most-traded HRC contract closed at 3,338 today, down 0.39% for the day. In the spot market, prices of cold-rolled and hot-rolled products fell by 10 yuan/mt, with overall moderate trading. In terms of supply, according to SMM statistics, the impact from HRC maintenance this week is expected to remain unchanged, and HRC supply is expected to be flat WoW. In terms of demand, the Dragon Boat Festival holiday ended, but the market saw limited restocking demand. Affected by the deepening off-season and rainy weather, overall demand showed no significant improvement. Cost side, the eighth coke price increase was implemented today, but iron ore demand and prices remained weak, resulting in only moderate cost support overall. Looking ahead, demand is showing a seasonal weakening trend, and the recent frequent rainy weather has lengthened procurement logistics lead times. Expectations for a significant release of demand are low. Inventory is expected to shift to a buildup, fundamental pressures are emerging, and short-term prices remain under downward pressure. However, given that the cost side, particularly coke, still provides some support, prices are unlikely to fall sharply. Short-term sheets & plates prices are expected to remain in the doldrums.

SMM, June 22: Dealers in Jiangxi reported that end-use consumption in the automotive battery market is sluggish, retailers only purchase as needed, and current inventory is about 2 months. Additionally, selling prices in the battery wholesale market remain low, such as the main model 6-QW-60Ah at a wholesale price of 270 yuan/piece. Manufacturers in Zhejiang reported that the automotive battery market is still in the traditional off-season, dealers are cautious in purchasing, and to avoid inventory buildup, the factory operating rate is currently maintained at 60-70%, with raw material lead mainly purchased through long-term contracts. Manufacturers in Hebei reported that replacement demand in the automotive battery market is sluggish, and finished product orders remain unimproved for now. Currently, the production line operating rate is below 80%, and long-term contract lead ingot is sufficient to meet production, so no additional spot order purchases will be made in the short term.

SMM June 22 News: Data Highlights: As of Monday, June 22, SMM copper inventories in major regions across China increased WoW, with total inventories reaching 208,100 mt, up by 78,500 mt from 129,600 mt in the same period last year. All regions saw inventory buildup. Specifically, in Shanghai, concentrated arrivals of imported and domestic copper, combined with persistently weak end-use consumption, led to a notable increase in inventories. In Jiangsu, arrivals increased as smelter maintenance ended, leading to a rise in inventories. In Guangdong, production cuts at processing enterprises during the Dragon Boat Festival holiday and weakening downstream demand were the main reasons for the significant inventory accumulation. Market Outlook: On the supply side, imported copper arrivals are expected to remain stable in the near term, while domestic copper supply is beginning to rise, gradually easing availability in the market. On the demand side, copper prices are fluctuating at highs, and the wait-and-see sentiment among downstream enterprises is intensifying. Surveys indicate that the operating rate of copper cathode rod plants is expected to increase to 65.4% this week, down 2.96 ppt WoW. Considering overall supply-demand performance, the market currently has ample supply but weak end-user purchasing willingness, so China's social copper inventories are expected to continue building next week.