According to SMM data, the operating rate of copper pipe & tube enterprises was 58.74% in February, down 14.13 percentage points MoM and down 11.54 percentage points YoY. February was affected by the Chinese New Year holiday. Leading enterprises maintained stable production and supply, with production showing strong resilience, basically sustaining “no holiday shutdowns” or only 0–3 days , and ensuring normal operations during the Chinese New Year period through shift rotations on production lines. Although orders saw slight fluctuations of 2%–10%, they remained overall under control. However, small and medium-sized enterprises performed poorly in February, dragging down the overall operating rate. Looking ahead to March, the operating rate of copper pipe & tube enterprises is expected to be 77.88%, up 19.14 percentage points MoM and down 7.35 percentage points YoY. The March production schedule of key air-conditioner enterprises fell 9.3% YoY from last year, in line with the YoY decline trend in copper pipe & tube operating rates. However, most copper pipe & tube enterprises said March production is expected to be better than expectations, and there are concerns over advance production and stockpiling. Worth noting is that R&D on high-performance alloy copper tubes by China’s leading enterprises will further reduce copper consumption in air conditioners, and most other enterprises are currently developing this type of technology as well. This has also increased orders for those domestic copper pipe & tube enterprises that already possess such technology, diluting the market share of other enterprises. In addition, the conflict in the Middle East reduced some home appliance export orders to the region, and the April production schedules of some domestic air-conditioner enterprises with relatively high market share exposure there are expected to decline.

SMM News, March 24: Today, in Guangdong, spot prices for #1 copper cathode against the front-month contract were reported at a premium of 70 yuan/mt for high-quality copper, down 30 yuan/mt from the previous trading day; a discount of 30 yuan/mt for standard-quality copper, down 20 yuan/mt from yesterday; and a discount of 90 yuan/mt for SX-EW copper, down 20 yuan/mt from yesterday. The average price of #1 copper cathode in Guangdong was 94,030 yuan/mt, up 1,045 yuan/mt from the previous trading day, while the average price of SX-EW copper was 93,920 yuan/mt, up 1,055 yuan/mt from the previous trading day. Spot market: Guangdong inventory declined for six consecutive days, mainly due to limited arrivals and higher shipments. Although inventory continued to fall, downstream users showed weak restocking interest as copper prices surged sharply. Suppliers had to keep lowering spot premiums to conclude deals. Overall, trading activity in the market was noticeably weaker today than yesterday. Today, the purchasing sentiment for copper cathode in Guangdong was 2.48, down 0.15 from the previous trading day, and the shipment sentiment was 3.31, down 0.11 from the previous trading day (historical data is available in the database). Overall, after the sharp rebound in copper prices, downstream buying sentiment weakened, and spot premiums moved lower.

According to the latest data disclosed by the General Administration of Customs, China’s imported copper cathode market, while maintaining the 2025 baseline, is facing dual challenges: the continued rise in the share of EQ copper and whether global supply will continue to be diverted. China’s cumulative copper cathode imports in January-February 2026 totaled 356,900 mt, down 33.13% YoY.

SMM Morning Meeting Summary: Overnight, LME copper opened at $11,816/mt. After dipping to $11,798/mt in early trading, its center rose sharply to a high of $12,395/mt, then hovered at highs, and finally closed at $12,221/mt, up 3.27%. Trading volume reached 52,000 lots, and open interest stood at 292,000 lots, down 944 lots from the previous trading day, mainly reflecting bears cutting positions overall. Overnight, the most-traded SHFE copper 2605 contract opened at 95,010 yuan/mt. After the opening, its center moved higher to a high of 95,900 yuan/mt, after which copper prices maintained a fluctuating trend at highs. Near the close, it dipped to 94,530 yuan/mt and finally closed at 93,840 yuan/mt, up 2.12%. Trading volume reached 120,000 lots, and open interest stood at 198,000 lots, down 6,741 lots from the previous trading day, mainly reflecting bears cutting positions throughout the day.

[SMM Shanghai Spot Copper] Copper prices rose from yesterday, but both buying and selling sentiment pulled back intraday, indicating that downstream acceptance of current price levels remained limited. In terms of market structure, under the current price spread between futures contracts structure, suppliers showed strong willingness to sell, with some offloading cargo, driving overall spot discounts down rapidly, while downstream willingness to make counteroffers was relatively evident. Entering the second trading session, after premiums were cut further, market transactions improved somewhat, but downstream procurement remained generally cautious, mainly focused on restocking on dips, with insufficient willingness to chase higher prices. Overall, amid the tug-of-war between suppliers actively selling and downstream buyers purchasing cautiously, Shanghai spot copper discounts were expected to remain under pressure tomorrow.

[SMM Tin Morning Briefing: The Most-Traded SHFE Tin Contract Opened Sharply Higher in the Night Session and Then Rebounded in Volatile Trading, While the Spot Market Will Gradually Cool Down]

As of March 24, titanium dioxide prices continued to rise, with the SMM index up 4.6% since early 2026. Two rounds of price hikes were issued in March amid low inventories. Strong exports and production cuts supported gains, though sustainability post-peak season remains uncertain, hinging on downstream acceptance.

Jan-Feb 2026 China magnesium exports reached 72.7kt, up 3.4kt YoY. Magnesium alloy led with +33.1% YoY, orders booked through April. Magnesium ingot fell 6.8% due to weak European demand, while powder grew 10.3%. However, US-Israel conflict disrupted Middle East aluminum plants, halting regional magnesium orders and pressuring Q2 outlook despite the strong start.

SMM, March 24: Overnight, LME lead opened at $1,889/mt. In early trading, LME lead fluctuated downward, dipping to $1,873.5/mt. Then bulls stepped in, driving prices sharply higher, with wide swings in the $1,888.5-1,909/mt range and a session high of $1,909/mt. Near the close, bullish momentum somewhat faded, and LME lead edged down slightly to finally close at $1,898.5/mt. It posted a small bullish candlestick, up $9.5/mt, or 0.5%. Overnight, the most-traded SHFE lead 2605 contract opened higher with a gap at 16,495 yuan/mt. In early trading, SHFE lead prices briefly fluctuated upward, reaching a high of 16,510 yuan/mt. It then saw wide swings in the 16,440-16,500 yuan/mt range. During the session, SHFE lead fluctuated downward, falling to 16,405 yuan/mt. Late in the session, SHFE lead prices stabilized slightly and rebounded, finally closing at 16,435 yuan/mt. It posted a small bearish candlestick, up 40 yuan/mt, or 0.24%. Supply side, discounts quoted by primary lead enterprises narrowed slightly WoW, and among cargoes self-picked up from production site, heavily discounted cargoes were also hard to find. The number of enterprises quoting secondary refined lead was relatively small, and there were clear differences between upstream and downstream in price acceptance: downstream had low acceptance of premiums, while upstream held firm offers and showed cautious willingness to sell. Demand side, procurement by downstream enterprises was somewhat scattered. Some mainly made purchases under long-term contracts, while others bought the dip as needed, resulting in differentiated market transactions. SMM expects SHFE lead prices to remain in the doldrums in the short term.

[SMM Tin Brief Commentary: SHFE Tin Stopped Falling and Rebounded, Closing Up 2.94% as Macro Pressure and Bottom Support Vied Against Each Other]