Today, SMM battery-grade spot lithium carbonate price rose significantly compared to the previous working day. Futures side, the lithium carbonate 2609 contract opened high today at 191,500 yuan/mt, briefly pulled back to 191,000 yuan/mt after the opening before quickly rallying, stabilizing above the 193,000 yuan/mt level in the morning session. Around midday, bulls continuously increased open interest, driving prices to accelerate upward. In the afternoon session, prices fluctuated at highs with an upward bias, further surging to 199,600 yuan/mt near the close, ultimately settling at 199,400 yuan/mt, up 7.31%, with open interest increasing by 21,281 lots.

[Pre-Holiday Surplus Inventory Dragged Down Purchasing, Magnesium Market Trading Sluggish with Short-Term Downward Pressure on Prices] Today, the overall magnesium market trading was sluggish. Smelters maintained firm quotes but offered concessions in some cases. Downstream stocking inventory was sufficient, and the willingness to purchase on demand was weak, leaving short-term magnesium prices under pressure.

[SMM Tungsten Daily Review: Tungsten Market Trading Sluggish, Awaiting Tomorrow's Long-Term Contract to Set the Tone] SMM May 6 News: On the first day after the holiday, China's tungsten market continued its weak consolidation trend. The upstream raw material market was waiting for tomorrow's long-term contract guidance price, with very few transactions in the market. Downstream powder and cemented carbide intermediate products showed a catch-up decline. Wait-and-see sentiment pervaded the market, with transactions across all segments dominated by scattered small orders for rigid demand, lacking support from bulk transactions.

[SMM Nickel Flash] On the upstream side, news about Indonesian nickel ore costs and windfall tax policies supported the willingness to hold prices firm, smelters generally held back from selling with a bullish outlook, and high-grade NPI quotes rose in tandem. On the downstream side, steel mills showed relatively positive purchasing sentiment before the holiday. Although most steel mills maintained a wait-and-see attitude after the holiday, the market overall still held up well.

SMM Analysis: On April 30, SMM's monthly blister copper RCs in south China was 850-1,050 yuan/mt, with an average of 950 yuan/mt, down 850 yuan/mt MoM...

[Temporary Maintenance at a Zinc Smelter in Central China] According to SMM, a zinc smelter in Central China began temporary maintenance on May 1 due to equipment damage. The maintenance is expected to last more than 20 days, with an estimated overall impact of approximately two-thirds of the month's production.

SMM May 6 News: The most-traded SHFE lead 2606 contract opened at 16,690 yuan/mt during the session. Driven by a broad rally in non-ferrous metals at the start of trading, futures held up well with a fluctuating trend, and the lead price center steadily rose, touching a high of 17,005 yuan/mt. Near the close, the rally slowed down somewhat, with prices consolidating slightly at high levels, ultimately closing at 16,980 yuan/mt, up 350 yuan/mt or 2.1%, recording a small bullish candlestick. Currently, domestic secondary lead smelters are constrained by undersupply of scrap battery raw materials, with increasing production cuts and shutdowns. Regional supply contraction supported spot cargo and futures. A sudden safety accident at a major lead-zinc smelter outside China introduced uncertainty to the subsequent global lead ingot supply, which is expected to provide short-term support for domestic lead prices. However, the consumption side in China remained persistently weak, with no notable improvement in downstream demand in May. Combined with the high probability of intensifying lead ingot inventory buildup pressure after the holiday, upside room for lead prices will be constrained. SHFE lead is expected to maintain a fluctuating trend in the short term. Data source statement: Data other than public information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.

According to SMM's on-site survey, sulfur inventories among local copper smelters in the DRC showed significant divergence, with inventory levels ranging from half a month to 3 months, and some approaching the warning threshold.

[SMM Daily Comment: Downstream Adopted a Wait-and-See Approach While Upstream Showed Strong Willingness to Hold Prices Firm, and the Market Held Up Well] On May 6, SMM high-grade NPI upstream sentiment factor was 3.58, up 0.04 MoM, and the high-grade NPI downstream sentiment factor was 2.6, flat MoM.

Today, SMM's premium quotations against the SGE Ag(T+D) ranged from TD -20 to -5 yuan/kg, with an average of -12.5 yuan/kg. Some traders had not yet participated in quotations after the Labour Day holiday. Overall market purchase willingness was low, with both offers and inquiries on the weak side. During the early Shanghai session, suppliers of national-standard silver ingots posted mainstream quotations at premiums of -20 to -10 yuan/kg against TD. Major smelter silver ingots were mostly quoted at parity, but transactions were difficult to conclude. Some enterprises lowered premiums to facilitate deals. Downstream consumption remained sluggish, and bank warrant floor prices also saw discounts widen to around TD -20 yuan/kg. In the Shenzhen market, a few non-delivery brands maintained larger discounts. Overall market trading was thin today.