SMM May 25 News: Driven by rising market expectations for coal policy changes and concerns over tightening supply, bullish sentiment was released in a concentrated manner. Coking coal and coke futures hit the daily limit up on May 25 and remained locked at the limit. As of the close of the daytime session on May 25, the most-traded coking coal and coke futures contracts were locked at the daily limit with gains of 7.97% and 7.99%, respectively. The limit-up moves in coking coal and coke lifted the broader ferrous metals and related raw material sectors, with the ferrosilicon continuous most-traded contract rising 3.97% on May 25. Supported by the strengthening prices of raw materials such as coal and ferrosilicon, magnesium ingot prices moved higher, with magnesium ingots gaining over 2% in a single day on May 25. Bullish sentiment in the market had already begun to emerge last Sunday. Rising Coal and Ferrosilicon Prices Highlight Cost Support for Magnesium Ingots Spot market: Primary magnesium smelting is highly dependent on raw materials such as coal and ferrosilicon, with a clear cost transmission chain. As coal prices continued to rise, cost pressure on upstream magnesium enterprises increased significantly. Some upstream enterprises reported that they had already raised their quotations to 16,700 yuan/mt last Sunday. On May 25, although morning inquiries were lukewarm, supported by the rigid cost underpinning from rising raw material prices, most producers still held firm at 16,700 yuan/mt, with a strong willingness to hold prices firm. By region, magnesium ingot prices across China were generally raised by 350 yuan/mt. Mainstream quotations for magnesium ingots (9990) in Fugu, Shenmu, and Inner Mongolia were 16,700 yuan/mt, while quotations in Wenxi were 16,900 yuan/mt. Currently, relevant policies for the coal mine market have not yet been officially implemented. The industry as a whole maintains a cautious wait-and-see stance, and the pace and impact of subsequent policy implementation deserve close attention. Outlook Looking at this round of magnesium price increases, the core driving factor was the rise in raw material costs such as coal and ferrosilicon, representing a typical cost-push price increase rather than one driven by improvements in supply-demand fundamentals. From the current magnesium market fundamentals perspective, the overall oversupply pattern has not shown significant improvement. Although downstream demand demonstrated a certain degree of resilience, end-use demand showed no notable incremental growth, while supply within the market also showed no obvious contraction, leaving fundamentals lacking strong upward support. Overall, the short-term raw material price increases effectively underpinned magnesium prices, supporting magnesium prices to hold up well. However, constrained by the weak supply-demand pattern, the rebound room for magnesium prices in this round is relatively limited. Going forward, it is essential to continue closely monitoring price fluctuations in coal and ferrosilicon raw materials and the implementation of coal mine-related policies, while paying close attention to the release of downstream demand and changes in market supply, in order to assess the pace and upside room for subsequent magnesium price movements. Recommended Reading:

Cold-rolled and hot-rolled prices edged down this week, with overall transactions weakening WoW. In terms of supply, rolling line maintenance decreased WoW this week, with reduced impact volume, and overall HRC production increased. Demand side, apparent demand rebounded slightly this week. Inventory side, SMM's HRC social inventory this week was 4.5281 million mt, down 185,300 mt WoW, down 3.93% WoW. By region, North China, east China, and Northeast China saw notable inventory drawdowns, the central and western regions saw narrow destocking, while the South China market continued inventory buildup. Cost side, coking coal and coke futures weakened this week, suppressing coking coal and coke prices. Iron ore was in the doldrums following .....

Overall, the aluminum processing industry achieved a slight edge up in operating rate this week, driven by the recovery of export orders, the surge in energy storage demand, and the recovery of infrastructure-related orders. The industry maintained relatively strong resilience, and going forward, attention should be focused on the sustainability of export orders and the boosting effect of aluminum price trends on demand.

[SMM Silicone Weekly Review: Amid Multiple Factors, Wait-and-See Sentiment Intensifies in Mid- and Downstream Silicone Market] This week, the transaction center of China's silicone DMC market held stable, with the mainstream transaction range at 14,800-15,000 yuan/mt. Regional quotations, mainstream quotations from monomer enterprises in Shandong remained at 14,800 yuan/mt, while mainstream quotations in other regions held at 15,000-15,200 yuan/mt. Influenced by the price adjustment moves of top-tier players last week, overall market sentiment weakened somewhat, with wait-and-see sentiment among mid- and downstream enterprises on the increase, new order transactions remaining mediocre, and the tug-of-war between upstream and downstream intensifying.

This week, ternary cathode material prices declined. On the raw material front, nickel sulfate and cobalt sulfate showed slight downward movements, manganese sulfate edged up, while lithium carbonate and lithium hydroxide saw significant pullbacks. In terms of transaction sentiment, after a month of sustained increases, the price correction for ternary cathode materials created pricing opportunities for manufacturers, and some battery cell manufacturers carried out restocking . On payables, the overall EV market continued to maintain existing payable levels , and June payables are expected to remain stable. On the consumer market front, due to relatively high spot contract transaction volumes and significant price volatility, some manufacturers expect upward adjustments to nickel sulfate payables in cathode materials next month . This is mainly driven by persistently high nickel sulfate production costs, upstream producers pushing prices higher due to cost pressures, with prices gradually transmitting downstream . On the demand side, the domestic EV market is currently in a phase of concentrated stockpiling for new models, with orders rebounding notably. The overseas market is also strong, driven by robust European vehicle sales and stockpiling for new product launches by some brands, collectively boosting orders for domestic cathode manufacturers. Overall demand in the consumer market remains relatively subdued, more reflected as need-based restocking by manufacturers. Overall, the ternary market is expected to maintain relatively high demand levels in June .

This week, ternary cathode material prices were lowered. Raw material side, nickel sulphate and cobalt sulphate showed a slight downward trend, manganese sulphate edged up, while lithium carbonate and lithium hydroxide saw significant pullbacks. Sentiment side, after a month of continuous rise, ternary cathode material prices experienced a pullback, creating pricing opportunities for producers, and some battery cell manufacturers restocked. Discount side, the EV market overall continued to maintain existing discount levels, and discounts are expected to remain stable in June. Consumer market side, due to high spot order trading volume and significant price fluctuations, some producers expect the discount for nickel sulphate in cathode materials to be raised next month. This is mainly because nickel sulphate production costs stay high, upstream enterprises are pushing for price increases due to cost pressure, and the price increases have gradually been passed through to downstream. Demand side, China's EV market is currently in a phase of concentrated stockpiling for new car models, with orders recovering notably; markets outside China, driven by strong performance in the European auto market and stockpiling for new product launches by some brands, also saw robust demand, jointly driving order growth for cathode plants in China. Consumer market demand overall remained mediocre, mostly reflecting rigid restocking needs of producers. Overall, total ternary market demand is expected to remain at a relatively high level in June.

SMM May 15 News: In May 2026, the global molybdenum market remained in a persistently tight supply-demand pattern, with prices extending and accelerating the upward trend seen in April. International molybdenum oxide prices kept surging at high levels, while domestic molybdenum concentrate and ferromolybdenum prices repeatedly hit new stage highs.

As a core vital raw material for manganese hydrometallurgy, sulfuric acid dominates production costs and process selection across the entire product chain. Major manganese products, including electrolytic manganese, diversified manganese sulfate, and electrolytic manganese dioxide (EMD), adopt distinct production processes with varied acid consumption structures.

In the manganese-based hydrometallurgy industry chain, sulphuric acid is not merely an ordinary auxiliary material, but rather a core lifeline raw material that runs through the production of all product categories, controls production costs, and influences process selection. Mainstream products such as EMM, various grades of manganese sulphate, and EMD differ vastly in production processes and have entirely distinct acid consumption structures, which also leads to completely stratified sensitivities of various manganese products to sulphuric acid price fluctuations. Every round of change in acid prices transmits from top to bottom, directly reshaping the cost structure and market dynamics of the manganese industry chain.

[SMM Analysis: High Copper Prices Led to Slow Shipments and Sluggish Raw Material Consumption at Secondary Copper Rod Enterprises] According to SMM data, the operating rate of secondary copper rod was 6.84% this week, up 0.08 percentage points WoW and down 15.03 percentage points YoY. Meanwhile, the average price difference between copper cathode rod and secondary copper rod was 1,914 yuan/mt, widening by 549 yuan/mt WoW. In addition, the average discount of secondary copper rod in Jiangxi against copper futures was 1,518 yuan/mt, widening by 773 yuan/mt WoW. Based on SMM's secondary copper rod gross profit model, the average gross profit during the week was 857 yuan/mt, an increase of 477 yuan/mt......