June 5 News: North China ports: South African high-iron ore at yuan/mtu 32-32.5, down WoW from last Friday; South African semi-carbonate ore at yuan/mtu 37.8-38.3, down WoW from last Friday; Gabonese ore at yuan/mtu 41.2-41.8, flat WoW from last Friday; 46% grade Australian lumps at yuan/mtu 43.5-44, down WoW from last Friday; South African medium-iron ore at yuan/mtu 38.5-39, down WoW from last Friday. South China ports: South African high-iron ore at yuan/mtu 34.9-35.4, down WoW from last Friday; South African semi-carbonate ore at yuan/mtu 36.5-37, flat WoW from last Friday; Gabonese ore at yuan/mtu 41.7-42.2, flat WoW from last Friday; 46% grade Australian lumps at yuan/mtu 43.5-44, down WoW from last Friday; South African medium-iron ore at yuan/mtu 38-38.5, down WoW from last Friday. With weakening cost support outside China and sluggish end-use demand, spot manganese ore in China fluctuates downward overall, though the short-term decline has moderated somewhat.

In May, key materials for sodium-ion batteries sustained their strong momentum, with both cathode and hard carbon anode recording sharp YoY and MoM growth. Top-tier players’ order books were full and capacity utilization rates approached their limits. On the supply side, the pattern of rising volumes and stable prices was pronounced, yet pressure to pass on rising raw material costs was also building.

The US Department of Commerce (DOC) has issued the preliminary results of its administrative review of the countervailing duty (CVD) order on large diameter welded pipe (LDWP) from Turkey, covering the period from January 1, 2024, to December 31, 2024. The DOC preliminarily determined a net countervailable subsidy rate of 3.37% for the sole mandatory respondent, HDM Çelik Boru Sanayi Ve Ticaret A.S., which also applies to its affiliate HDM Spiral Kaynakli Celik Boru A.S. The all-others rate established in the original investigation remains unchanged at 3.72%, while the review was rescinded for 11 companies that had no reviewable entries during the period. The final results are expected to be issued within 120 days. The market impact suggests that the US continues to tightly enforce its trade defense mechanisms to insulate domestic pipe and tube manufacturers. Although the subsidy rates of 3.37% to 3.72% are relatively moderate, they will continuously squeeze the profit margins of Turkish LDWP exporters, potentially forcing them to recalibrate their North American pricing strategies or redirect export volumes to alternative regional markets.

【SMM Steel】Taiwan's steel mills and manufacturers face higher operating costs with two utility hikes taking effect in June. CPC Corp raised industrial natural gas prices by an average of 5% on June 1 marking the second consecutive monthly increase. Taipower initiated its four-month summer electricity rates also on June 1 with industrial and commercial high-voltage users seeing increases from May 16. The peak consumption tier above 1000 kWh reached a record NT$8.86 per kWh. CPC said formula-based calculations would have justified a more than 50% hike but the increase was capped to protect industrial competitiveness. Taipower described the summer pricing as a seasonal mechanism to manage peak demand. The combined increases will raise production costs for energy-intensive sectors like steel.

【SMM Steel】Taiwan's hand tool manufacturers requested that CSC moderate its planned Q3 bar and wire rod price increases during a June 4 pricing meeting. Jan-Apr 2026 hand tool exports fell 13.7% y-o-y to 34000 tonnes with export value down 14.5% y-o-y to 338 million USD. CSC cited rising oil and energy costs plus Q1 losses as requiring upward price adjustments. The hand tool association chairman said manufacturers face immense pressure from rising material costs and struggle to pass increases onto foreign buyers. CSC promised to review competitive concerns before final pricing decisions.

【SMM Steel】Indonesia will implement a single-window export system for strategic commodities through state-owned PT Danantara Sumberdaya Indonesia, with full enforcement from Jan 1 2027. Coal crude palm oil and ferroalloys are the first products covered. A transition period from Jun 1 to Dec 31 2026 requires exporters to report activities via the new system while operating under existing arrangements. The initiative aims to strengthen export oversight and curb under-invoicing and transfer pricing. The three commodities have annual exports of approximately 66.1 billion USD accounting for about 23.4% of Indonesia's total exports.

[Domestic zinc concentrate TCs see more negative deals, overall decline continues]: From weekly data, SMM Zn50 domestic weekly average TCs fell 100 yuan/mt Zn WoW to 50 yuan/mt Zn, and the SMM imported zinc concentrate index dropped $7.3/dmt WoW to -$70.75/dmt..

[Downstream Enterprise Demand Weak, Spot Transactions Poor This Week]: This week, Shanghai spot premiums maintained a fluctuating trend, with the weekly average price basically flat WoW. As of this Friday, ordinary domestic brands were quoted at a discount of 90-40 yuan/mt against the 2607 contract, while the high-priced brand Shuangyan was quoted at a premium of 60-70 yuan/mt against the 2607 contract..

Lead concentrate TCs were lowered by 50 yuan/mt Pb overall this week. The average weekly TC for domestic Pb50 was reduced to 200 yuan/mt Pb, while some silver-lead ores rich in copper and zinc were still quoted with high TCs above -2,000 yuan/mt Pb due to reasons such as non-pricing or low pricing of contained metals. Overall, lead concentrates remained in tight supply. Due to low arrivals of imported ore, the average weekly TC for imported Pb60 was reduced to -145 $/dmt, and the mainstream quotation range for smelters was lowered to -160 to -130 $/dmt. A few smelters accepted quotations above -200 $/dmt for imported silver-lead ores with good richness due to by-product revenue needs and other reasons. Some smelters have not yet finalized their prices for this month. In terms of negotiations and expectations, lead concentrates exhibited a polarization trend: smelters paid less attention to low-richness ores, but were still willing to accept high-metal-richness silver-lead ores. Additionally, the decline in imported zinc ore, to some extent, fueled the tight supply sentiment for lead ore, making lead concentrate TCs more likely to fall than rise. Meanwhile, the silver coefficient in lead concentrates remained unchanged, mainly because silver prices stayed range-bound and the coefficient had already risen to a relatively high level, thus remaining largely stable overall.

[SMM Daily Review: Silver Moved Sideways with Narrowing Spot Discounts, Awaiting Non-Farm Payrolls Data for Guidance] SMM, June 5 — With mixed macro signals, silver moved sideways. Spot discounts narrowed significantly, and market quotes gradually stabilized at slight discounts, awaiting non-farm payrolls data for directional guidance.