The operating rate of major copper cathode rod enterprises in China stood at 81.51% last week (March 13–March 19), marking the fourth consecutive week of MoM improvement since the Chinese New Year, with industry sentiment continuing to recover. The strong rebound in the operating rate in this round was mainly driven by two factors: first, the relatively weak operating rates of secondary copper rod enterprises, coupled with the price difference between copper cathode and copper scrap remaining at a relatively low level, significantly weakened the substitution effect between copper cathode and copper scrap, leaving more market room for copper cathode rod; second, improving orders for downstream wire and cable and enamelled wire boosted a faster drawdown in enterprises' finished product inventories. As copper prices broke above low-level support, downstream procurement sentiment continued to heat up, and new orders for copper cathode rod enterprises showed a pattern of concentrated volume release. Most enterprises reported that their production pace could no longer keep up with shipment progress, and some had already begun to proactively control the pace of taking orders to ensure contract fulfillment. From the downstream industry perspective, wire and cable as well as enamelled wire enterprises also benefited from the pullback in copper prices, with operating rates steadily rebounding, further boosting demand for copper rod. Inventory side, although the pullback in copper prices boosted enterprises' willingness to restock, constrained by limited room for capacity release, enterprises did not excessively stockpile on dips and mostly maintained normal production raw material reserves. Meanwhile, due to continued downstream pick-up of goods, enterprises' capacity was unable to fully match order demand, accelerating the drawdown of finished product inventories. Enterprises Raise Processing Fees and Increase Margin Requirements to Control Risks After copper prices pulled back sharply, downstream purchase willingness increased significantly, and order concentration rose markedly. To reasonably control the pace of taking orders, some enterprises urgently raised processing fees. At the same time, affected by the increased uncertainty in the pace of cargo pick-up caused by concentrated downstream order placement, as well as the continued decline in copper prices, enterprises became more concerned about the default risk of earlier high-priced orders, and some enterprises simultaneously increased margin ratios to strengthen risk control. Looking ahead, with copper prices rising at present, downstream procurement sentiment has clearly weakened. To ensure stable deliveries, copper cathode rod enterprises are expected to maintain relatively high operating loads. Although rigid demand is gradually being fully released, against the backdrop of low finished product inventories, enterprises will still maintain high operating rates to replenish inventory. Accordingly, SMM expects the operating rate of China's copper cathode rod enterprises to fluctuate at highs in March.

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, the Shanghai spot copper market is expected to remain under pressure. After copper prices jumped, downstream procurement sentiment pulled back, indicating limited acceptance of current price levels. From the market structure perspective, suppliers showed strong willingness to sell, with some brands continuing to offload cargo, putting pressure on discounts. Downstream buyers mostly maintained a wait-and-see stance, with procurement mainly driven by rigid demand and buying on dips. It is worth noting that the price spread between high-quality copper and standard-quality copper narrowed somewhat from the previous period, indicating that the market trading structure has become more rational, with actual consumption demand becoming the dominant force at the current stage. Overall, amid the tug-of-war between suppliers actively selling and downstream buyers purchasing cautiously, spot prices against the 2604 contract are expected to maintain the current discount level tomorrow.

The latest customs data showed that in February 2026, China’s imports of unwrought silver ingots with a purity of no less than 99.99% reached 206.76 mt, up 499% MoM and surging 5,910% YoY to a multi-year high. The rare opening of the import window drove significant changes in the supply-demand pattern of the domestic silver ingot market.

In light of the recent sharp decline in copper prices, SMM reports a noticeable deceleration in the global copper scrap trading trend. The rapid price correction has widened the bid-ask spread significantly, creating a sharp divergence in pricing expectations between market participants. Taking Bare Bright Copper as an example, overseas holders, seeking to hedge against the drop in absolute prices, have hiked their pricing coefficients to 99-99.5% of LME, a 1-percentage-point jump from 98-98.5% last week. Conversely, Chinese importers, constrained by domestic margin pressures, remain firm at the previous 98.5% coefficient. This "pricing mismatch" has hindered any consensus on coefficients, resulting in stagnant transaction activity across the board.

SMM Morning Meeting Summary: Overnight, LME copper opened at $12,016.5/mt. After dipping to $11,955.5/mt in early trading, its center rose sharply to a high of $12,160/mt, and then continued to hover at highs, finally closing at $12,092.5/mt, down 1.05%. Trading volume reached 23,000 lots, open interest stood at 293,000 lots, up 406 lots from the previous trading day, mainly reflecting increased short positions overall. Overnight, the most-traded SHFE copper 2605 contract opened at 93,600 yuan/mt and touched a low of 93,480 yuan/mt at the open. Its center then moved higher to a high of 94,990 yuan/mt, after which copper prices maintained a fluctuating trend at highs, finally closing at 94,670 yuan/mt, up 0.17%. Trading volume reached 51,000 lots, open interest stood at 198,000 lots, down 533 lots from the previous trading day, mainly reflecting reduced short positions throughout the day.

Strait of Hormuz disruptions and Iran tensions are driving up aluminum prices and premiums. Aluminium Bahrain and Qatalum have cut output, while feedstock is tight. Rerouting via Port of Sohar or Saudi ports raises costs and delays. Buyers are turning to China, India, Russia, Canada, and scrap to offset risk. Prolonged disruption could reduce Middle East market share and reprice it as higher-risk supply.

[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.

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.

On the morning of March 10, the unveiling ceremony and construction launch meeting for the Shanghai Key Laboratory of Efficient Green Fuel Synthesis Systems Engineering (Preparatory) were successfully held at Shanghai Boiler Works Co., Ltd. Xuan Fuzhen, President of East China University of Science and Technology, and Wu Lei, Party Secretary and Chairman of Shanghai Electric Group, jointly unveiled the laboratory, marking the official entry of the key laboratory’s development into a new stage of substantive progress. Zheng Guanghong, Second-Level Inspector of the Shanghai Municipal Science and Technology Commission, witnessed the ceremony on site. Led by Shanghai Boiler Works Co., Ltd. and jointly established with East China University of Science and Technology, the laboratory focuses on tackling critical “bottleneck” technological challenges in the application field of efficient synthesis of green fuels such as green methanol, green ammonia, and sustainable aviation fuel (SAF). It has precisely laid out three core research directions: efficient synthesis of diversified green fuels, high-efficiency clean power equipment, and AI + digital twin flexible regulation and control. It is committed to building a full-chain innovation system spanning basic R&D, pilot-scale verification, and industrialisation, thereby supporting breakthroughs in green fuel technologies and their industrial application. Wu Lei, Party Secretary and Chairman of Shanghai Electric Group, stated at the event that the high-standard development of the key laboratory for green fuels is an important practice for Shanghai Electric in implementing the national development strategy for new quality productive forces in the energy sector and promoting the deep integration of green fuel technological innovation with industry. Shanghai Electric will use the laboratory’s development as an important lever, providing comprehensive support in policy, resources, funding, and other aspects, fully integrating high-quality internal and external resources, and making every effort to advance technological research, professional talent cultivation, and the commercialisation of scientific research achievements, thereby contributing wisdom and strength to the high-quality development of China’s green fuel industry. Xuan Fuzhen, President of East China University of Science and Technology, pointed out that the university will give full play to its disciplinary strengths, carry out close and pragmatic cooperation with Shanghai Electric, vigorously promote the deep integration of industry, academia, and research, focus on core challenges in green fuel synthesis technologies and equipment, strive to achieve major technological breakthroughs, and work together to build a benchmark for collaborative innovation among industry, academia, and research. Jin Xiaolong, Member of the Party Committee and Vice President of Shanghai Electric Group, Vice President Qiu Jiayou, and relevant leaders from the Shanghai Municipal Science and Technology Commission, East China University of Science and Technology, and Shanghai Electric Power Station Group attended the event.

Recently, Mingyang Hydrogen’s MYH-K-1000 electrolyzer completed the authoritative evaluation under the China Hydrogen Alliance’s “Leader Program” and received the official test report. With multiple industry-leading performance indicators, it has established a new benchmark for alkaline electrolyzers adapted to fluctuating new energy scenarios, marking a major technological milestone for the company in the field of hydrogen energy equipment. This product is the first 1,000 Nm³/h-class alkaline electrolyzer on the China Hydrogen Alliance’s field-testing platform to achieve the “15th Five-Year Plan” target of 20%–120% ultra-wide flexible load regulation . At the 20% minimum load, it can stably control hydrogen content in oxygen to within 1.5%, enabling long-term stable operation. It also features rapid load response capability of 5%/s to 10%/s. Its core performance is industry-leading and perfectly suited to the flexible operating conditions of wind and solar power generation, providing robust support for the development of the green fuel industry. The test certification presentation ceremony was held at Mingyang Hydrogen’s Beijing Center. Yu Tianxiao, Director of the Quality Value Center at Guoneng Hydrogen Innovation and Deputy General Manager of Hydrogen Testing Technology, presented the certification report to Pan Yongle, Executive Director and CEO of Mingyang Hydrogen, and both parties witnessed this important moment together. Rigorous Field Testing Validates Outstanding Performance, Strong Results Under Extreme Cold Conditions According to the alliance’s field-test data, under 100% rated load, the MYH-K-1000 kept hydrogen content in oxygen below 0.5% and successfully passed load ramp-up and ramp-down tests at 3%/s and 5%/s. Under the ultra-low load of 20%, hydrogen content in oxygen remained compliant, while DC power consumption was as low as 3.85 kWh, achieving efficient and stable operation. This long-duration test was conducted throughout in an outdoor environment at minus 20°C . The product still demonstrated excellent cold and hot start capabilities, as well as high reliability, high safety, and fully flexible operating characteristics, overcoming the longstanding low-temperature operating limitations of traditional electrolyzers and enabling adaptation to more extreme application scenarios. Breakthroughs in Core Technology Innovation Set a New Industry Benchmark This electrolyzer adopts advanced integrated die-casting technology, delivering high consistency in its internal structure. The area of its electrolysis unit is 75% larger than that of traditional designs, and it overcomes sealing challenges on the basis of zero-electrode-gap technology, significantly improving product performance and production efficiency and setting a new technological benchmark for the industry. Company Statement: Continuous Innovation-Driven Development and Deepening Commitment to Hydrogen Energy Equipment Pan Yongle, CEO of Mingyang Hydrogen, stated that this certification is the result of the team’s technological breakthroughs. The company will continue to uphold the philosophy of “innovation-driven, green future,” further increase R&D investment, launch more high performance products, provide global clients with high-quality hydrogen energy solutions, and support the industry’s high-quality development.