Industrial metal prices on the London Metal Exchange (LME) surged to a record high, driven by rising aluminum prices after the Middle East war disrupted supply, as well as a recent recovery in copper prices. The LME Index, which tracks six major metals, rose nearly 12% over the past four weeks and hit an all-time high at Thursday's close , gaining 3.6% this week. Aluminum prices have risen about 15% since the outbreak of the Iran war, with approximately 9% of global aluminum production coming from the Middle East. Aluminum carries the largest weighting in the index, and together with copper, the two metals account for nearly three-quarters of the index's weighting. JPMorgan warned that the aluminum industry is heading toward a "black hole," and even if flows through the Strait of Hormuz resume, "the global aluminum market will face severe and prolonged supply disruptions." This week, the bank told clients that the market has now entered a void, and aluminum prices could break through $4,000 per mt, as the industry is set to face the largest supply deficit in 25 years. Aluminum hit a record high of $4,073.50 per mt in 2022, when the Ukraine conflict triggered a similarly severe supply shock. Aluminum supply losses escalated sharply after Iran directly attacked two major smelters in Abu Dhabi and Bahrain at the end of last month, and a severe and lasting supply deficit is hitting the market. The dual blockade of the Strait of Hormuz by the US and Iran has also hindered transportation of goods. However, despite the waterway remaining closed, hopes that the US-Iran ceasefire will be extended, along with signs that both sides may be moving toward a peace deal, have provided support for other metals. These metals had previously been hit by surging energy costs and concerns that the war would slow down global growth, but rebounded recently on signs that the conflict may be nearing an end. Trump claimed on Thursday, without any evidence, that Iran had agreed to terms it had long resisted, including abandoning its nuclear weapons ambitions. Tehran has not confirmed that it has made concessions. Mercuria Energy Group and BMO Capital Markets predicted this week that copper prices will surpass the record high set in January. They noted that Chinese buyers are returning to the market, and the White House's upcoming tariff decision is also encouraging more exports to the US. Copper prices have risen 11% over the past four weeks, just about 3% below their record closing price. (Jin10 Data)

On April 16 (Thursday), the DRC, through a state-backed marketing agency, increased the volume of copper it plans to sell to the US to 500,000 mt, a fivefold increase from its initial commitment in January. As first reported by Semafor, the deal was led by state-owned mining company Gécamines, with sales conducted through a joint venture with Mercuria Energy Group and backed by the U.S. International Development Finance Corporation. The deal aimed to sell copper produced from Gécamines' minority stakes in major operations including Kamoto Copper Company and Tenke Fungurume Mining. The expanded agreement underscored the DRC's growing influence in the global copper market while intensifying competition for control over critical minerals supply chains. The Kinshasa government is seeking to convert passive shareholdings into direct revenue and gain greater commercial control. Gécamines has been working to convert its stakes in some of the country's largest mines into physical copper that can be sold independently. Its holdings include Glencore's Kamoto Copper Company and Tenke Fungurume, operated by Chinese enterprises — one of the world's highest-grade copper-cobalt deposits. Although the partnership aimed to enhance transparency and control, Mercuria remained the seller of record while Gécamines established its internal trading division. Analysts noted that this transformation required substantial investment in financing, insurance, and risk management, as well as access to physical markets. The DRC's copper production surged to 3.5 million mt in 2025, consolidating its position as the world's second-largest supplier after Chile. The production growth was driven by record copper prices and surging demand fueled by the expansion of EVs, renewable energy, and data centers. (Wenhua Composite)

This week, ferrous metals exhibited a pattern of initial weakness followed by strength. At the beginning of the week, after the U.S.-Iran peace talks failed to reach an agreement, the U.S. military announced it would impose a blockade on all maritime traffic in and out of Iranian ports, pushing international oil prices higher once again. Mid-week, disturbances from iron ore long-term contract negotiations intensified, with market rumors suggesting that restrictions on certain previously limited products had been partially lifted. Subsequently, news emerged of an unexpected shutdown at an Australian refinery, raising market concerns that a diesel supply deficit could trigger mine shutdowns, which in turn would lead to short-term supply tightening. Coupled with rising expectations of a second round of coke price increases, ferrous metals successfully rallied in the latter half of the week...

[Lead-acid Battery Market Dynamics] It is reported that Tianneng Group Guizhou Energy Technology Co., Ltd., located in the Taijiang Economic Development Zone in Guizhou, according to Pang Mingduo, Deputy General Manager of the company: "Currently, the automation rate of the factory's production lines has reached 95%, and capacity has doubled compared to the initial stage. Daily production of new energy batteries has surged from 40,000 units to 135,000 units. Every year, 40,000 mt of waste batteries are recycled and handed over to Guizhou Qizhen Industrial Group Co., Ltd. for processing. The secondary lead they produce can meet 70% of Tianneng's raw material needs."

[Secondary Lead Market Update] It was reported that recently, the Hefei Branch of Bank of Jiujiang, in response to the characteristics of the secondary lead industry — "capital-intensive raw material procurement and urgent production turnover needs" — assembled a professional team and customized a comprehensive financial service plan, ultimately approving a credit line of 280 million yuan for Anhui Lukong Environmental Protection Co., Ltd.

[Zhuye Group releases 2025 annual report] On April 17, Zhuye Group released its 2025 annual report. The report showed that in 2025, Zhuye Group's total production of zinc and zinc alloys was 659,600 mt, total production of sulphuric acid was 677,100 mt, total production of lead and lead alloys was 105,900 mt, total production of gold was 4,285 kg, and total production of silver was 318.23 mt. Taking into account industry trends and the company's actual conditions, the core product production targets for 2026 balance both growth and efficiency: zinc and zinc alloy production of 645,000 mt, lead and lead alloy production of 100,000 mt, mine raw ore production of 860,000 mt, gold production of 4.2 mt, and silver production of 300 mt.

This week, stainless steel production costs showed a strengthening upward trend, while spot prices rose even more significantly. The cost-price inversion at stainless steel mills was repaired, and profits gradually recovered. Taking 304 cold-rolled products as an example, based on current raw material prices, the full cost profit margin reached 1.79% this week; calculated using inventory raw material costs, the profit margin was 1.99%. On the nickel-based raw material cost side, high-grade NPI prices showed a strengthening upward trend this week. Affected by the revision of Indonesia's nickel ore HMP, the market expected nickel ore costs to rise. Combined with the continued strengthening of SHFE nickel and SS futures, bullish expectations in the high-grade NPI market were strong. After downstream stainless steel mill profits recovered, their acceptance of high-priced raw materials improved, driving high-grade NPI quotes to stop falling and rebound. As of this Friday, mainstream high-grade NPI with 10-12% grade rose 10 yuan per nickel unit, closing at 1,090 yuan/nickel unit. Stainless steel scrap market side, stainless steel scrap prices rose sharply this week, driven by nickel ore cost increases and futures market linkage. The revision of nickel ore pricing pushed up cost expectations, and combined with the simultaneous rise in high-grade NPI, raw material linkage drove prices higher. Although the cost advantage of stainless steel scrap narrowed slightly, it remained attractive to steel enterprises, and market trading activity improved. Despite delayed payment issues dragging on trading pace, the market remained generally strong under futures-spot resonance and demand support, and was expected to consolidate at highs in the short term. As of this Friday, mainstream 304 off-cuts prices in Shanghai rose 200 yuan/mt, with the latest quote at approximately 10,350 yuan/mt. On the chrome-based raw material cost side, high-carbon ferrochrome prices continued their downward trend this week. Although stainless steel prices strengthened somewhat, procurement transactions in the high-carbon ferrochrome market remained sluggish recently. Earlier maintenance and production cut plans were insufficiently implemented, and current supply remained at a relatively high level. Meanwhile, recent declines in chrome ore and coke prices further weakened cost support, and rising nickel-based raw material costs also exerted some downward pressure on ferrochrome prices. As of this Friday, mainstream high-carbon ferrochrome prices in Inner Mongolia fell 75 yuan/mt (50% metal content) WoW, closing at 8,475 yuan/mt (50% metal content).

According to industry sources on April 17, WCP will supply separators for LFP batteries used in ESS systems to be produced by Samsung SDI in the United States. The company is already supplying separators for NCA-based ESS batteries. WCP began supplying separators in October last year to the ESS production line of StarPlus Energy, a joint venture between Samsung SDI and Stellantis. Currently, one NCA-based ESS line is in operation. With two additional LFP lines set to be gradually ramped up starting in October this year, separator supply volumes are expected to increase further.

This week, the e-bike and automotive battery replacement market was in a traditional off-season state. Dealers only purchased as needed, and some enterprises reported weakening orders and reduced production. In terms of battery selling prices, there were no sales promotions as typically seen during the off-season in previous years, mainly due to rising raw material costs. Apart from rising lead prices, prices of other auxiliary materials also trended upward. In particular, sulphuric acid prices surged significantly since late March, with smelting-grade sulphuric acid prices rising by over 50%, and quotes in some regions approaching 2,000 yuan/mt. In addition, lead prices fell first and then rose this week. At the beginning of the week, downstream enterprises purchased as needed on dips, and market transactions were moderate. In the second half of the week, lead prices rose, and most downstream enterprises adopted a wait-and-see approach with cautious purchasing, with spot market transactions remaining sluggish.

According to SMM, from April 10 to April 16, 2026, the weekly comprehensive operating rate of lead-acid battery enterprises across five provinces was 69.66%, up 2.38 percentage points WoW. With the impact of the Qingming Festival holiday dissipating, lead-acid battery enterprises gradually resumed production this week. However, as the end-use market was in the traditional consumption off-season, battery orders at some enterprises weakened, and they once again lowered their production line operating rates. Therefore, the weekly operating rate of lead-acid batteries recovered somewhat this week but remained difficult to restore to pre-holiday levels. Currently, battery markets for e-bikes, automobiles, and other sectors are all in the off-season, with dealers purchasing cautiously. To ease inventory pressure, most producers adopted a produce-based-on-sales approach and scaled back production plans. If orders continue to remain sluggish going forward, some enterprises will consider further production cuts.