With utilization rates among Korean battery manufacturers remaining around 50% and reflecting a timing mismatch between demand and supply, utilization is increasingly emerging as a key indicator of cost structure and operational efficiency in a context where capacity expansion has preceded demand realization.

Strong industrial demand and supply constraints are driving both inventory buildup and structural tightness in the copper market.

【SMM Copper Inventory Update】Concentrated arrivals of imported and domestic supplies, with additional cargoes queuing for warehousing, coupled with suppliers actively stocking up driven by delivery requirements, along with persistently weak consumption during the Chinese New Year on the demand side, collectively contributed to a significant inventory buildup. According to SMM data, as of February 24, 2026, social inventory of copper cathode in mainstream domestic areas increased by 154,900 mt during the holiday, reaching a five-year high, with the total volume exceeding 500,000 mt.

[SMM Analysis]ADC12 Prices Accelerated Rise to Hit Highs in January, Center Expected to Pull Back in February

[SMM Daily Review: Spot Lithium Carbonate Prices Held Steady on September 9] The SMM battery-grade lithium carbonate index stood at 74,589 yuan/mt, up 94 yuan/mt from the previous trading day. Battery-grade lithium carbonate traded at 73,700-75,500 yuan/mt, with an average price of 74,600 yuan/mt, flat from the prior session. Industrial-grade lithium carbonate ranged at 71,750-72,950 yuan/mt, averaging 72,350 yuan/mt, unchanged from the last trading day. Demand side, the market remains in its peak season, sustaining just-in-time procurement by downstream players. However, WoW, procurement activity slowed slightly as futures prices rebounded. Supply side showed structural divergence: spodumene-sourced lithium carbonate accounted for over 60% of production, while lepidolite-derived output dropped to 15%. Overall, September saw synchronized supply and demand growth, but demand expanded faster, likely leading to temporary tightness in the month.

Last week's announcement of import and export restrictions in the Congo (DRC) has led to a continuous increase in cobalt sulfate prices. However, due to insufficient short-term demand support, the price increase has been relatively limited. Nickel sulfate prices have remained essentially stable, while lithium carbonate prices have shown a slight rebound and are fluctuating.

[SMM Titanium News] Titanium's strategic importance surges with unique properties vital for aerospace (primary demand), medical implants & industrial applications. Recovery in aviation and rising defense budgets drive alloy demand, while TiO₂ ensures stable cash flow in pigments. Geopolitics accelerates supply chain diversification as Western nations seek alternatives to Chinese/Russian sponge titanium.

According to CCTV News, on June 12, Foreign Ministry spokesperson Lin Jian hosted a regular press conference. A reporter asked about the meeting of the China-U.S. Economic and Trade Consultation Mechanism. Lin Jian stated that he would like to emphasize that this meeting was held under the strategic guidance of the heads of state of the two countries. The two sides reached a consensus in principle on the framework of measures to implement the important consensus reached during the phone call between the heads of state of the two countries on June 5 and to consolidate the outcomes of the Geneva economic and trade talks, and made new progress in addressing each other's economic and trade concerns. The Chinese side has always delivered on its promises. Now that a consensus has been reached, both sides should abide by it. It is hoped that the U.S. side will work with the Chinese side to implement the important consensus reached during the phone call between the heads of state of the two countries, give full play to the role of the China-U.S. Economic and Trade Consultation Mechanism, and enhance consensus, reduce misunderstandings, and strengthen cooperation through communication and dialogue.

This week, manganese ore offers remained consolidated, with actual transaction prices declining. South 32's Australian manganese ore arrived at the port this week, leaving room for profit margins and not lacking in low-priced shipments. The fluctuation range of other ore types narrowed, but the volume of transactions remained low. In the short term, manganese ore prices are expected to remain in the doldrums. The imported coal market operated steadily. The support of manganese sulphate costs to market conditions was weak, with limited procurement orders from the downstream market, suppressing the demand for manganese sulphate price increases. Under the situation of supply surplus, continuous attention needs to be paid to the demand guidance of precursors.

On Thursday, June 5, analysts at RBC Capital Markets stated that copper inflows into the US ahead of potential tariffs have supported the metal's price surge year to date. In a report sent to clients on Wednesday, the analysts noted that copper prices on the COMEX in New York have risen approximately 11% since early 2025, outperforming prices in other global markets. The brokerage firm highlighted that North American copper equities have also gained around 9% year to date, listing Capstone Mining Corp and HudBay Minerals as the sector's "top picks." The price rally was fueled by US President Trump's February announcement of an investigation into potential new tariffs on copper imports. Copper is considered critical for manufacturing everything from EVs to power grids. This investigation, coupled with investors capitalizing on rising premiums, triggered substantial copper inflows into the US. Government data showed March imports totaled over 123,000 mt, compared to 58,000 mt and 76,000 mt in February and January respectively. However, RBC strategists led by Sam Crittenden pointed to signs of weakening demand and supply, adding that should Trump opt against implementing metal tariffs, it could act as a "negative catalyst" for prices. Concurrently, RBC analysts identified near-term risks on the demand side for copper prices. They cited potential headwinds from the continuation of Trump's aggressive trade agenda and the seasonal construction slowdown during summer. "The trajectory in coming months will depend on global trade developments," the analysts wrote, "but any positive progress between China and the US would signal improved demand prospects through 2026." Xinhua News Agency reported from Beijing on June 5 that President Xi Jinping held a phone conversation with US President Trump that evening, where both leaders agreed their teams should continue implementing the Geneva consensus and promptly arrange new talks.