[SMM Cast Aluminum Alloy Morning Comment: China's Aluminum Industry Faces Weak Demand and Cost Pressures, Operating Rates Decline] This week, operating rates across sub-sectors of China's aluminum processing industry continued their overall weak trend.

[SMM Tungsten Express] SMM May 7: APT CIF Rotterdam prices remained stable at $2,900-3,200/mtu this week, flat WoW. However, market pessimism was strong in the European market this week, with end-users mostly adopting a wait-and-see attitude. Despite no change in the tight supply landscape, there was virtually no substantial trading in the market this week, and buyers and sellers were in a stalemate. In the Indian market, FOB prices for scrap tungsten drill bits were quoted at $100-120/kg, with an average price of $110/kg, down $30 WoW. Market demand was weak, and panic sentiment among scrap dealers intensified, accelerating the price decline.

[Weekly Review of Aluminum Scrap and Secondary Aluminum]Weak Demand Suppresses Prices, Tight Aluminum Scrap Supply Keeps Costs Elevated, Losses of Secondary Aluminum Producers Intensify

[SMM Copper Anode Market] Due to tightening policies, tax-inclusive copper scrap was relatively tight in the market. From May 1 to May 7, the SMM weekly operating rate of China's copper anode producers using scrap was 46.35%, down 2.9 percentage points WoW.

Raw material side, spot lithium carbonate prices continued to rise this week, driven by supply-side disruptions that continued to strengthen tighter Q2 expectations and significant position increases in far-month contracts. Nickel salt prices edged up, while the cobalt salt market remained lackluster and basically stable.

[SMM Rare Earth Weekly Review: Market Sluggish around Holiday, Rare Earth Prices in the Doldrums] The Pr-Nd oxide market saw a poor trading atmosphere recently. Downstream metal plants showed low enthusiasm in inquiries and procurement around the holiday, but upstream suppliers maintained firm offers amid tight spot cargo availability, and low-priced sources remained difficult to find. Overall, Pr-Nd oxide price fluctuations were relatively small. As of today, Pr-Nd oxide prices adjusted slightly downward to 762,000-768,000 yuan/mt.

Leading US steel producers, including Nucor, Gerdau, and Optimus Steel, have announced a general price increase for rebar by $20 per short ton ($1.00 per cwt), effective immediately in May 2026. This move follows a period of price consolidation and is largely driven by rising raw material costs, particularly ferrous scrap, and sustained demand from domestic infrastructure projects. The hike brings the market price floor higher, signaling a shift toward a more hawkish pricing environment in the North American long products sector. If successfully absorbed by the market, this increase may prompt other regional mini-mills to follow suit, potentially raising construction costs across the US in the second quarter of 2026.

Germany's crude steel production fell by 8.6% to a historical low of 34.1 million metric tons (mt) in 2025, remaining well below the 40 million mt designed capacity threshold required for sustainable industry utilization. Consequently, domestic steel mills' scrap purchases declined by 5.3% to 12.0 million mt, forcing a shift in trade dynamics that resulted in a net scrap export surplus of 3.7 million mt, as scrap exports rose by 5.3% to 7.7 million mt while imports dropped by 9.4% to 3.9 million mt.

Turkey's crude steel production grew by 5.3% year-on-year to 9.7 million metric tons (mt) in the first quarter of 2026, supported by a 6.4% output increase in March to 3.3 million mt. Meanwhile, domestic finished steel consumption surged 8.9% year-on-year to 9.9 million mt in Q1, but the foreign trade balance weakened as steel exports dropped 6.8% to 3.5 million mt while imports climbed 2.6% to 4.3 million mt, pushing the export-to-import ratio down to 77.7%. Although Middle East supply chain shifts and reduced Chinese export aggression opened market opportunities in Europe, producers face mounting operational pressures and narrowing profit margins due to scrap prices approaching $400/mt, surging freight rates, and stringent EU import regulations.

JSW Steel delivered record production and sales in FY2024-25, but weaker steel realizations dragged down revenue and margins, creating a clear growth paradox: higher volumes but lower earnings quality. As India’s largest steelmaker, JSW’s next challenge is to turn its scale into more resilient earnings through higher VASP contribution, stronger raw material security, selective overseas improvement, technology partnerships, and decarbonization readiness.