[Mg Market Trading Sluggish; Short-term Doldrums Persist Amid Supply-demand Stalemate]Today, 99.90% magnesium ingot prices in main production areas were quoted at 16,300-16,400 yuan/mt, a decline of 50 yuan/mt from the previous working day.

[SMM Chrome Daily Review: Market Expectations Pessimistic, Transactions Continue Weak] June 16, 2026 – Ferrochrome and chrome ore markets fluctuate slightly...

SMM June 16 news: [SMM] June 16 SMM A00 aluminum (Foshan) reported at 23,790, down 350, discount to the current month 90, flat (unit: yuan/mt) Today, the futures market suddenly plummeted, while South China spot aluminum struggled to remain firm. Absolute prices plunged sharply, forming a hedge against the steady destocking of inventory, and holders attempted to ride the momentum and raise prices in the morning; but with the spot-futures price spread expected to stay high, there remained room for hedging-based shipments, supply actually loosened somewhat, making it difficult to push prices higher, with mainstream quotations concentrated at a premium of 0 to +10 yuan/mt. Demand side, downstream players were initially somewhat cautious, after failing to push for lower prices, gradually shifted to buying the dip, providing some support; traders were also willing to take non-premium cargoes, and overall, transactions were satisfactory. Spot transaction prices were concentrated at a premium of -110 to -70 yuan/mt over the SHFE aluminum 2607 contract.

The average warrant price on June 16 remained unchanged from the previous trading day, reported at $59/mt (price range $54-64/mt); the average B/L price remained unchanged, reported at $61/mt (price range $55-67/mt); the average price for EQ copper (CIF B/L) rose $4/mt from the previous trading day, reported at $33/mt (price range $30-36/mt), with quotations referencing cargoes arriving in mid- to late June and early July. During the day, there were abundant offers for EQ, and transactions also recovered from the previous day. After the SHFE/LME price ratio firmed, although buyer demand remained concentrated on registered B/Ls for late-June arrival, demand for EQ also improved. It was heard that EQ B/Ls for early-July arrival were traded around $30/mt, and a small number of actual EQ B/Ls for late-June arrival changed hands above $35/mt. It was heard that a few registered B/Ls for late-June arrival were offered at $70-75/mt.

Platinum prices were in the doldrums intraday, with market concerns primarily arising from the uncertainties before the formal signing of the U.S.-Iran agreement on the 19th and the ambiguity from the Israeli side, and platinum futures gave up some of yesterday's gains. In the morning session, the most-traded GFEX platinum contract PT2608 closed at 435.6 yuan/g, down 1.44%, and the inverted spread between the sell-one price of SGE platinum 9995 and GFEX PT2608 widened to 3-6 yuan/g. Spot side, mainstream platinum quotations were at a discount of 3 yuan/g to parity against the PT2608 contract, with the discount basically flat from the previous trading day, but transactions clearly favored the low end of quotations. According to SMM, with the recent rebound in platinum prices, the offer spread in the platinum spot market was wide, making it very difficult to transact at the high end of mainstream quotations. Downstream enterprises had ample stockpiles and subdued procurement sentiment, with overall transactions being lackluster.

During yesterday's night session and today's morning session, SHFE aluminum futures prices plunged. In the Central China market, downstream processing enterprises' buying sentiment recovered somewhat, and their stockpiling willingness increased. Trading firms engaging in both spot and futures markets were inclined to quickly capture price spreads, with significant sentiment of holding prices firm and holding back from selling, driving market quotations to stay high. Ultimately, the actual transaction price range in the Central China market was around a discount of 120-140 yuan/mt against the SHFE aluminum July contract.

[Geopolitical easing combined with manufacturing slowdown exert dual suppression, SHFE and LME aluminum prices plunge significantly] SMM maintains its forecast that inventory will drop to around 1.28 million mt by late June, and may further approach 1.2 million mt by the end of June or early July, providing some support for aluminum prices. However, the pressure from high domestic inventory remains relatively evident, and coupled with the currently dominant bearish macro sentiment in the market, domestic aluminum prices are expected to mainly be in the doldrums with adjustments in the short term.

Futures: Overnight, LME lead opened at a low of $1,965/mt, fluctuating upward during Asian trading hours; entering the European session, it touched a high of $1,981/mt, then gave back some gains towards the close, eventually ending at $1,968.5/mt, up 0.08%. Overnight, the most-traded SHFE lead 2607 contract opened at 16,240 yuan/mt, dipping to a session low of 16,210 yuan/mt early on before edging up to a high of 16,315 yuan/mt, finally settling at 16,265 yuan/mt, up 0.15%. On the macro front: The US Strategic Petroleum Reserve fell to a 43-year low. Middle East situation – Trump: Will allow Iran to conduct low-level uranium enrichment. May or may not attend the agreement signing on the 19th. The strait will fully open on Friday. Importantly, oil prices have dropped sharply while the stock market is rising. The National Development and Reform Commission (NDRC) and other departments issued a notice to launch a three-year campaign to tackle energy conservation and carbon reduction in key industries. SAFE: In May, foreign-invested enterprises' dividend and profit distribution expenditures increased seasonally, and foreign investors were net buyers of domestic stocks and bonds overall. Spot fundamentals: SHFE lead reversed course and rebounded, with suppliers selling along with the market. Some offered wider discounts from last Friday, but some smelters, with low inventory, remained relatively firm in their pricing. Mainstream production region primary lead quotations against the SMM #1 lead average price were at discounts of 25 yuan/mt to premiums of 25 yuan/mt, EXW. For secondary lead, smelters had divergent attitudes toward selling. Secondary refined lead quotations against SMM #1 lead were at discounts of 25 yuan/mt to premiums of 125 yuan/mt, EXW. Downstream enterprises mostly turned cautious, with fewer inquiries; some temporarily focused on digesting inventories, and spot market transactions weakened. Inventory: On June 15, LME lead inventory decreased by 1,025 mt to 304,850 mt; as of June 15, SMM lead ingot social inventory across five regions totaled 67,700 mt, an increase of 3,000 mt from June 8 and an increase of 2,300 mt from June 11. Lead price forecast today: Last week, lead prices declined, and downstream dip-buying demand warmed up. Affected by secondary lead smelters holding back from selling and their high quotes, purchasing demand shifted significantly to EXW primary lead cargoes. At present, Henan smelters are still shipping on order. Yesterday, the SHFE lead 2606 contract completed delivery, with suppliers shipping to delivery warehouses in a concentrated manner, and social inventory increased as expected. Currently, both primary and secondary lead enterprises face maintenance and raw material shortages, with supply tight and uncertain. SMM believes that after the delivery, lead ingot inventory buildup pressure will gradually ease, and upside resistance to lead prices is expected to weaken.

[SMM Zinc Morning Meeting Summary: LME Inventory Running at Low Levels LME Zinc Fluctuates at Highs]: Overnight, LME zinc opened at $3,591/mt, fluctuated upward after opening, touched a high of $3,623/mt, then pulled back all the way, dipped to $3,568/mt during the session, and finally closed up at $3,584.5/mt, up $1.5/mt, or 0.04%. Trading volume dropped to 11,715 lots...

[Magnesium Market Stalemate with Temporary Stability, Transactions Slightly Recover] Today, the 99.90% magnesium ingot price in the main production areas was quoted at 16,300-16,350 yuan/mt, down by 50 yuan/mt from the previous working day.