This week, spot lithium carbonate prices moved sideways in a narrow range. The futures market saw intensifying volatility, with the most-traded contract 2609's price range consolidating from 141,400-154,800 yuan/mt at the week's start to 137,200-148,500 yuan/mt. After hitting a weekly low of 136,800 yuan/mt mid-week, prices rebounded, while open interest continued to decline. Market transactions reflected a pattern of downstream users buying the dip and purchasing as needed, while upstream producers held prices firm and held back from selling. Upstream lithium chemical plants showed strong sentiment to hold prices firm and hold back from selling spot orders, with persistently weak willingness to sell and firm quotes, keeping in-factory inventory at low levels. Downstream material plants continued their strategy of dip-buying and purchasing as needed, with purchase willingness strengthening when prices fell to relatively low levels, though large-scale restocking had yet to emerge. Trader inventories continued to destock due to downstream just-in-time procurement and lithium chemical plants holding back from selling. Overall, market inquiries and actual transactions remained relatively stable, while the spot-futures price spread continued to strengthen. Supply-side production maintained a decreasing trend, with upstream inventory staying low. This week, lithium carbonate production continued its decreasing trend, mainly because some spodumene and lepidolite-based smelters underwent maintenance, coupled with gradually tightening circulation of spodumene ore, leading to a decline in the overall operating rate of lithium chemical plants. Looking at inventory changes: upstream lithium chemical plants showed noticeable sentiment to hold back from selling, keeping in-factory inventory at low levels; downstream material plants continued their just-in-time procurement strategy by buying the dip, with inventory remaining largely stable; traders' inventory continued to destock under the impact of downstream purchasing as needed and lithium chemical plants holding back from selling. Looking ahead, short-term lithium carbonate prices are expected to maintain a slight upward consolidation trend within a range. Supply-side, ongoing maintenance at some lithium chemical plants and tightening spodumene ore circulation will lend support to prices; demand-side, downstream dip-buying continues, but large-scale centralized stockpiling has yet to appear. Currently, tightening spot circulation and a strengthening spot-futures price spread provide bottom support for prices. Close attention should still be paid to the August production schedule expectations of downstream players and whether there are expectations of further tightening in spot lithium carbonate circulation.

In H1 2026, China's sulphur market experienced a full transmission chain of "import crash—production under pressure—export stagnation," with key data as follows: Imports: Natural sulphur imports fell from 497,200 mt in January to 147,000 mt in June, and on a combined basis of natural sulphur and refined sulphur, they were down approximately 57.7% YoY, with the share of Middle Eastern sources dropping from nearly 40% to 5%; Production: From January to May, national sulphuric acid production fell 1.6% YoY, with significant declines in Hubei, Guizhou, Yunnan and other traditional phosphate fertiliser production areas, while Anhui and other areas with concentrated smelting acid production grew against the trend; Exports: Sulphuric acid exports nearly fell to zero in June, with approximately 100,000-150,000 mt of export resources per month flowing back to the domestic market; Prices: Sulphur prices soared from 4,180 yuan/mt at the start of the year to a peak of 10,353.5 yuan/mt in June, while the copper smelting acid index rose by about 92% from the beginning of the year.

[SMM Aluminum Bulletin] This week, the coal tar pitch market continued to weaken. As of Thursday, the average price of coal tar pitch was 4,705 yuan/mt, down 3.35% WoW. On the cost side, high-temperature coal tar remained weak; operating rates at coal tar deep-processing enterprises increased, leaving ample commercial pitch supply in circulation and an overall loose supply picture. Downstream, prebaked anode consumption stayed rigid, supported by high aluminum capacity, but with raw material inventories at high levels, buyers pushed for lower prices and insisted on need-based purchasing. Weak demand from secondary downstream sectors such as carbon black failed to provide a boost, and trading was thin. In the near term, under loose supply-demand conditions, coal tar pitch will likely consolidate at lows on a weak note.

This week (7.17-7.23), the machine operating rate of the enamelled wire industry declined WoW...

SMM July 23: Raw material side: This week, trading in China’s petroleum coke market was slightly divergent, with the low-sulphur petroleum coke market performing well while mid- and high-sulphur petroleum coke came under some pressure. On the refinery side, major refineries collectively held prices firm to support the market. CNOOC raised its petroleum coke offers steadily across its refineries, with overall trading activity markedly improving; PetroChina’s in-factory inventory of low-sulphur petroleum coke in north-east China was at a low level, and with centralized release of downstream rigid demand, EXW prices climbed steadily, completing staggered price increases at multiple sites on July 22. For refineries under Sinopec, downstream purchasing enthusiasm improved recently, providing some support to coke prices, which were raised slightly by 20-100 yuan/mt. Local refineries, on the other hand, saw divergent overall shipment performance. For low-sulphur petroleum coke, driven by price increases from major refineries, prices edged up; for mid- and high-sulphur petroleum coke, downstream purchasing willingness was moderate, and the market was mainly under pressure. The latest SMM data showed that the NE China #1 petroleum coke spot price index was recorded at 4,415.73 yuan/mt, up 2.04% WoW; the Shandong #2 petroleum coke spot price index was recorded at 4,237.31 yuan/mt, up 1.13% WoW; the Shandong #3 petroleum coke spot price index was recorded at 3,696.83 yuan/mt, down 1.87% WoW; and the Shandong #4 petroleum coke spot price index was recorded at 2,003.69 yuan/mt, down 0.74% WoW. On the supply side, some units that were under maintenance earlier gradually resumed production this week, and coking operating rates slowly recovered. On the demand side, increased purchasing enthusiasm in the downstream anode material market supported the low-sulphur petroleum coke market, which held up well. The market for carbon used in aluminum production still held a wait-and-see sentiment, and high-priced products saw insufficient downstream purchasing willingness, hindering the transmission of price increases. Coupled with geopolitical instability, continuously climbing crude oil prices provided cost support. In the short term, petroleum coke prices are expected to consolidate, with continuing divergence across grades. The coal tar pitch market trend remained subdued this week. As of Thursday this week, the average price of coal tar pitch was 4,705 yuan/mt, down 3.35% WoW. On the cost side, high-temperature coal tar continued to weaken, tar deep-processing enterprises raised operating rates, commercial pitch was in ample supply, and overall supply was loose. Downstream, although prebaked anode consumption remained rigid supported by high aluminum capacity, raw material inventory was at high levels, and buyers pushed for lower prices while sticking to need-based purchases. Demand from secondary downstream sectors such as carbon black was sluggish and failed to provide a boost, resulting in thin trading. In the short term, under a loose supply-demand balance, coal tar pitch is likely to consolidate at lows on a weak note. Overall, cost support for prebaked anode held firm this week. Supply side, prebaked anode enterprises maintained a production pace of producing based on sales. New anode projects in regions such as Xinjiang and Guangxi came on stream successively, with new capacity being released continuously. Meanwhile, some enterprises saw their operating rates pull back slightly due to maintenance, but overall, the industry’s supply capability improved steadily, and supply flexibility further increased. Demand side, China’s operating aluminum capacity stayed high, providing stable rigid support for prebaked anode consumption. On the export front, new aluminum projects in Indonesia continued to come on stream, driving sustained improvement in China’s anode exports. Overall, new prebaked anode supply in China was continuously realized, high operating rates in downstream aluminum effectively underpinned domestic demand, and the export market saw marginal improvement. The industry’s supply-demand balance remained generally stable, but with continuous release of new capacity, supply growth slightly outpaced demand growth, and the competitive landscape tended to intensify. Brief Comment: This week, the raw material market trends for prebaked anode in China showed intensified divergence: the petroleum coke market saw varying regional performance but overall fundamentals remained supportive, while the pullback in coal tar pitch prices slightly dragged on anode costs, and overall production costs remained stable. According to SMM data, as of July 23, China’s prebaked anode production cost was 5,556.7 yuan/mt, down 0.20% from last Thursday. Looking ahead, on the cost side, petroleum coke is expected to have strong bottom support, coal tar pitch is likely to consolidate on a subdued note, and overall raw material support for anode costs will be moderate. On the supply-demand front, high operating rates at domestic aluminum enterprises will continue to support anode domestic demand, and marginal recovery in export orders brings growth; however, the concentrated release of new capacity and continuous supply expansion intensify market competition. Going forward, attention should be paid to the pace of new capacity releases and the divergence between petroleum coke and coal tar pitch on the cost side.

SMM July 23 News: This week, trading sentiment in China's aluminum fluoride market weakened, and prices held steady overall. As of now, SMM's mainstream quotation for aluminum fluoride was 10,950-11,400 yuan/mt; the cryolite market also stayed stable, with SMM's cryolite quotation at 7,000-9,000 yuan/mt, showing no significant fluctuations. Raw material side: This week, aluminum fluoride raw material prices diverged, while comprehensive production costs stayed high. The upstream 97% fluorite wet powder market consolidated on a strong note, with mainstream delivered prices of 3,150-3,500 yuan/mt and persistent regional price spreads. Supply side, domestic mine safety supervision tightened, standardized controls on underground mining operations were implemented, and technological transformation and rectification cycles extended, chronically constraining effective capacity release. Combined with port freight restrictions during Mongolia's Naadam festival, imported fluorite ore supply saw periodic reductions, widening the domestic raw material supply gap and providing strong support for fluorite prices. Meanwhile, downstream hydrofluoric acid enterprises' procurement enthusiasm recovered slightly, with restocking for rigid demand increasing. Supply-demand dual positives reinforced fluorite's upward trend. For supporting raw materials, the domestic aluminum hydroxide market drifted lower, with a weighted average price of 1,687 yuan/mt, down 0.18% MoM; the sulphuric acid market high-end prices loosened, and the transaction center moved lower steadily. After offsetting the mixed raw material changes, aluminum fluoride's comprehensive production cost remained elevated. Supply side: The industry remained stuck in a negative cycle of high costs, production losses, and low operating rates. Rising fluorite prices further worsened enterprises' losses on production, with losses across the industry continuing to widen. Most enterprises stepped up equipment maintenance and flexible production cuts, and the overall operating rate kept falling. Currently, enterprises mostly adopted strategies to contract operations, prioritizing delivery of long-term contract orders, with no new production schedules planned. Effective supply growth in the market was limited, and spot cargo was tight overall. Demand side: Downstream aluminum industry's operating capacity stayed high, providing rigid demand support for aluminum fluoride and underpinning market bottom prices. However, aluminum enterprises' overall procurement sentiment remained cautious and conservative, mainly restocking in small quantities for rigid demand. Strong sentiment to push for lower prices and wait-and-see prevailed, with no concentrated restocking or additional procurement, which was insufficient to drive market prices higher. Brief review: This week, aluminum fluoride raw material trends diverged. Fluorite strengthened and lifted the cost floor, while aluminum hydroxide and sulphuric acid pulled back slightly, offsetting some pressure. Industry overall cost remained elevated, enterprise profit margins were hard to recover, and production motivation stayed weak. Currently, tug-of-war between upstream and downstream was intense, lacking drivers for one-sided price moves, and market transactions were mainly sporadic rigid demand orders. Short-term aluminum fluoride and cryolite prices are expected to continue the stalemate with stable quotes. Subsequent focus will be on tracking trends in raw material cost fluctuations such as fluorite, as well as marginal changes in downstream aluminum enterprises' procurement pace.

[Secondary Aluminum and Aluminum Scrap Weekly Review: Cost Support and Weak Demand in a Tug-of-War; Short-Term ADC12 Prices Maintain Sideways Movement] This week, ADC12 prices continued to move sideways. As of today, the SMM ADC12 quotation was adjusted down by 100 yuan/mt from last Thursday to 24,000 yuan/mt. During the week, cost support from aluminum scrap remained, and enterprises showed little willingness to voluntarily cut prices. However, constrained by weak off-season demand, prices lacked upward momentum. The overall market exhibited a tug-of-war pattern characterized by "selling at stable prices and transacting based on orders.

[SMM Tungsten Analysis: Tug-of-war Between Mine-side Price Holding and End-user Off-season, Short-term Tungsten Market Likely to Move Sideways] SMM July 23 News: This week, the tungsten market center rebounded slightly. At the beginning of the week, upstream raw material transactions turned active, and the market transaction center edged up slightly. Mine-side suppliers’ sentiment of holding back from selling intensified, and prices held firm. However, there was ample supply of low and medium-grade ore in the market, and the price spread between high-grade and low-grade ore transaction prices widened. At the start of the week, a tungsten enterprise in Jiangxi published its long-term contract prices, which were generally close to the spot order transaction prices of that day. The price spread between long-term contracts and spot orders narrowed. As the weekend approached, market sentiment diverged,

[SMM Silicone Weekly Review: Transaction Prices of Silicone Products Hit New Stage Lows Again, While Tug-of-War Between Upstream and Downstream Persists] DMC prices continued to weaken significantly this week, with the transaction range falling to 11,300-11,500 yuan/mt, down 850 yuan/mt WoW. Demand side, with no improvement in end-use demand, market transaction prices kept declining, making mid- and downstream clients more cautious in purchasing. Currently, although raw material inventories at some clients have fallen to low levels, they remain on the sidelines, showing little willingness for concentrated stockpiling, and maintain small, rigid-demand purchases while pushing for lower prices, waiting for market prices to fall further to their psychological expectations before buying the dip and stockpiling.

Silica: This week, silica market prices remained stable overall. On the supply side, output at some regional mines declined due to seasonal factors, but overall silica supply was ample. Additionally, high-grade quality ore sources were concentrated, creating a clear divergence between high- and low-grade material. On the demand side, weak silicon metal prices suppressed purchasing sentiment. Production resumptions in the Southwest only slightly lifted rigid demand. Silicon plants strictly controlled costs, bought small lots at low prices, and the sentiment to push for lower prices remained strong. Silicon coal: This week, the silicon coal market showed regional divergence. Weekly transaction prices for Xinjiang binding silicon coal dropped by 50 yuan/mt to 1,300-1,400 yuan/mt, while prices in other regions held steady. On the supply side, some coal processing plants continued to produce based on sales according to orders and had no inventory pressure, while some under inventory pressure sold at a discount to destock. On the demand side, production resumptions at silicon plants in the Southwest brought a slight increase in rigid demand, but downstream buyers strictly controlled costs and continued to push for lower prices, with purchases made based on monthly rigid demand. Petroleum coke: This week, trading in China’s petroleum coke market showed slight divergence, with the low-sulphur petroleum coke market performing well, while the medium- and high-sulphur petroleum coke market came under some pressure. Port spot cargoes of Formosa Plastics petroleum coke saw continuous price increases due to improved specifications, with mainstream prices rising to 1,450-1,500 yuan/mt. According to SMM data, as of Thursday this week, the 4# petroleum coke price index in Shandong stood at 2,003.69 yuan/mt, down 0.74% from last Thursday. On the supply side, units that were under maintenance earlier gradually resumed production this week, and coking operating rates recovered slowly. On the demand side, improved purchasing enthusiasm in the downstream anode materials market supported firm low-sulphur petroleum coke prices, while the carbon used in aluminum production market maintained a wait-and-see sentiment, with insufficient purchase willingness for high-priced products hindering the pass-through of price hikes. Compounded by global instability, continuously climbing crude oil prices provided cost support. In the short term, petroleum coke prices are expected to consolidate, with divergence across specifications persisting. Electrode used in silicon production: This week, electrode prices stayed at low levels. Recently, operating rates of downstream silicon plants showed regional divergence, but overall, driven by increased output in the Southwest and Inner Mongolia, production improved, leading to a modest recovery in electrode rigid demand and slightly easing inventory pressure on producers. However, the overall silicon metal market remained weak, with cautious downstream purchasing. As electrode supply was ample, there was no support for price increases, and prices are expected to consolidate at lows in the near term. For more detailed market information and dynamics, or if you have other inquiries, please call 021-20707889. > View SMM Silicon Product Prices > Subscribe to View SMM Historical Metal Spot Prices > Click to Access SMM Metal Industry Chain Database