As supply and demand for construction steel were not fully matched across different markets, regional supply-demand mismatches created price differentiation, which in turn drove the cross-regional circulation of steel resources. When the regional price spread gradient was appropriate, regions with surplus construction steel capacity and production often shipped excess resources out, thereby rebalancing construction steel resources across regions.

On March 20, the Information Office of the Inner Mongolia Autonomous Region Government held a press conference in the series “Implementing the ‘1571’ Work Deployment and Promoting High-Quality Development in Inner Mongolia,” providing a special briefing on the region’s achievements in green hydrogen industry development, key tasks for 2026, and the 15th Five-Year Plan. It made clear that, by leveraging its advantages in wind and solar power resources, Inner Mongolia will advance the full-chain layout of green hydrogen and continue to lead the nation’s green hydrogen industry. Key Focuses of the Hydrogen Energy Industry in 2026: Building a Pioneer Zone for Green Hydrogen Development In 2026, with the construction of a national pioneer zone for the green hydrogen industry as its core goal, Inner Mongolia will comprehensively advance the large-scale deployment of green hydrogen. It will launch pilot projects for large-scale off-grid hydrogen production, expand application scenarios such as blending green hydrogen into natural gas and coupling with the chemical and metallurgical industries, while simultaneously building green hydrogen industrial parks and broadening channels for the non-power use of green electricity. Within the year, construction will begin on three green hydrogen pipelines, including the Ulanqab–Beijing-Tianjin-Hebei route, to improve the transmission network. At the same time, the region will focus on breakthroughs in hydrogen energy technology, deepen collaboration among industry, academia, research, and application, and advance the implementation of demonstration projects for the first unit (set) of hydrogen energy equipment and collaborative innovation projects integrating wind and solar power, hydrogen, and energy storage, so as to consolidate the industry’s technological foundation. Green Hydrogen Industry Achievements Lead the Nation, with Advantages in Both Scale and Cost Becoming Prominent Inner Mongolia is richly endowed with wind and solar power resources, with technically developable wind and solar power resources exceeding 10 billion kW, accounting for one-quarter of the national total, laying a solid foundation for the green hydrogen industry. At present, multiple industry indicators ranked among the top nationwide. A total of 19 policies covering the entire industry chain of green hydrogen had been introduced; 7 projects were included in national demonstration programs; 8 projects were completed and put into operation, forming annual capacity of 80,000 mt. Green hydrogen production reached 12,694 mt in 2025, surging 3.6 times YoY; production in January and February 2026 was 2,653.6 mt, with production costs at 17-20 yuan/kg, only 60% of the national average. In addition, the country’s first provincial-level green hydrogen pipeline plan had been implemented, and the pipeline network featuring “one trunk line, two loops, and four outlets” was being accelerated. The hydrogen pipeline from Darhan Muminggan Banner to urban Baotou had already been completed, while green hydrogen applications now covered transportation, chemicals, power, and other fields, with the consumer market maturing rapidly. Precise Planning Under the 15th Five-Year Plan to Build a Strong Hydrogen Energy Industry Cluster During the 15th Five-Year Plan period, based on its existing foundation, Inner Mongolia will build a distinctive hydrogen energy industry cluster and focus on advancing four major tasks: scientifically formulate industry plans and reasonably lay out clusters by producing based on sales; tackle core technologies such as off-grid hydrogen production and flexible electrolyzers to raise the industry’s technological level; expand diversified application scenarios, improve business models, and open up the entire chain of production, storage, transportation, refueling, and utilization; accelerate the construction of green hydrogen pipelines within the region and across provinces, reduce transportation costs, comprehensively enhance the competitiveness of the green hydrogen industry, and support the industry in continuing to lead the nation.

I. Coal-to-Hydrogen Shandong anthracite transaction range [1,680-1,680], with an average hydrogen cost of [1.61 yuan/m³] Shanxi anthracite transaction range [910-910], with an average hydrogen cost of [1.05 yuan/m³] Hebei anthracite transaction range [1,390-1,390], with an average hydrogen cost of [1.39 yuan/m³] Henan anthracite transaction range [980-980], with an average hydrogen cost of [1.06 yuan/m³] II. Natural Gas-to-Hydrogen Pearl River Delta natural gas transaction range [5,520-5,620], with an average hydrogen cost of [2.62 yuan/m³] Zhejiang natural gas transaction range [5,500-5,850], with an average hydrogen cost of [2.63 yuan/m³] Guangxi natural gas transaction range [5,180-5,610], with an average hydrogen cost of [2.5 yuan/m³] Eastern Guangdong natural gas transaction range [5,500-5,590], with an average hydrogen cost of [2.58 yuan/m³] Henan natural gas transaction range [4,720-4,890], with an average hydrogen cost of [2.31 yuan/m³] Hebei natural gas transaction range [4,720-5,080], with an average hydrogen cost of [2.33 yuan/m³] Hubei natural gas transaction range [4,980-5,350], with an average hydrogen cost of [2.44 yuan/m³] Guizhou natural gas transaction range [4,990-5,720], with an average hydrogen cost of [2.51 yuan/m³] Sichuan natural gas transaction range [4,825-5,125], with an average hydrogen cost of [2.38 yuan/m³] Shanxi natural gas transaction range [4,520-4,880], with an average hydrogen cost of [2.22 yuan/m³] Shandong natural gas transaction range [5,040-5,250], with an average hydrogen cost of [2.44 yuan/m³] Heilongjiang natural gas transaction range [4,810-5,060], with an average hydrogen cost of [2.34 yuan/m³] Inner Mongolia natural gas transaction range [4,560-4,800], with an average hydrogen cost of [2.18 yuan/m³] III. Propane-to-Hydrogen South China propylene oxide transaction range [7,280-7,370], with an average hydrogen cost of [4.11 yuan/m³] East China propylene oxide transaction range [7,100-7,310], with an average hydrogen cost of [4.05 yuan/m³] Northeast China propylene oxide transaction range [5,890-6,310], with an average hydrogen cost of [3.5 yuan/m³] Shandong propylene oxide transaction range [6,960-7,300], with an average hydrogen cost of [4.03 yuan/m³] IV. Hydrogen Production from Methanol The methanol transaction range in east China was [2,800-3,290], and the average hydrogen cost was [2.61 yuan/m³]. The methanol transaction range in central China was [2,780-2,990], and the average hydrogen cost was [2.54 yuan/m³]. The methanol transaction range in north China was [2,360-2,830], and the average hydrogen cost was [2.29 yuan/m³]. The methanol transaction range in south China was [3,310-3,390], and the average hydrogen cost was [2.8 yuan/m³]. The methanol transaction range in northwest China was [1,630-2,630], and the average hydrogen cost was [1.97 yuan/m³]. The methanol transaction range in southwest China was [2,770-3,020], and the average hydrogen cost was [2.55 yuan/m³]. The methanol transaction range in northeast China was [2,770-2,790], and the average hydrogen cost was [2.44 yuan/m³].

[Overnight, LME Aluminum and SHFE Aluminum Edged Up Slightly, but Aluminum Prices Faced Short-Term Pressure at High Levels] Continued destocking in LME inventory provided bottom support for LME aluminum, but amid tightening fund liquidity and profit-taking by bulls, upward momentum remained insufficient, and the backwardation structure weakened somewhat. China’s social inventory rose to a high for the same period in nearly five years, and the inventory buildup cycle had yet to end, with high inventory and weak spot fundamentals jointly weighing on upward momentum. The divergence between domestic and overseas drivers continued, the SHFE/LME price ratio kept weakening, and prices were mainly under pressure in the short term.

SMM Morning Meeting Summary: Overnight, LME copper opened at $12,016.5/mt. After dipping to $11,955.5/mt in early trading, its center rose sharply to a high of $12,160/mt, and then continued to hover at highs, finally closing at $12,092.5/mt, down 1.05%. Trading volume reached 23,000 lots, open interest stood at 293,000 lots, up 406 lots from the previous trading day, mainly reflecting increased short positions overall. Overnight, the most-traded SHFE copper 2605 contract opened at 93,600 yuan/mt and touched a low of 93,480 yuan/mt at the open. Its center then moved higher to a high of 94,990 yuan/mt, after which copper prices maintained a fluctuating trend at highs, finally closing at 94,670 yuan/mt, up 0.17%. Trading volume reached 51,000 lots, open interest stood at 198,000 lots, down 533 lots from the previous trading day, mainly reflecting reduced short positions throughout the day.

On the morning of March 10, the unveiling ceremony and construction launch meeting for the Shanghai Key Laboratory of Efficient Green Fuel Synthesis Systems Engineering (Preparatory) were successfully held at Shanghai Boiler Works Co., Ltd. Xuan Fuzhen, President of East China University of Science and Technology, and Wu Lei, Party Secretary and Chairman of Shanghai Electric Group, jointly unveiled the laboratory, marking the official entry of the key laboratory’s development into a new stage of substantive progress. Zheng Guanghong, Second-Level Inspector of the Shanghai Municipal Science and Technology Commission, witnessed the ceremony on site. Led by Shanghai Boiler Works Co., Ltd. and jointly established with East China University of Science and Technology, the laboratory focuses on tackling critical “bottleneck” technological challenges in the application field of efficient synthesis of green fuels such as green methanol, green ammonia, and sustainable aviation fuel (SAF). It has precisely laid out three core research directions: efficient synthesis of diversified green fuels, high-efficiency clean power equipment, and AI + digital twin flexible regulation and control. It is committed to building a full-chain innovation system spanning basic R&D, pilot-scale verification, and industrialisation, thereby supporting breakthroughs in green fuel technologies and their industrial application. Wu Lei, Party Secretary and Chairman of Shanghai Electric Group, stated at the event that the high-standard development of the key laboratory for green fuels is an important practice for Shanghai Electric in implementing the national development strategy for new quality productive forces in the energy sector and promoting the deep integration of green fuel technological innovation with industry. Shanghai Electric will use the laboratory’s development as an important lever, providing comprehensive support in policy, resources, funding, and other aspects, fully integrating high-quality internal and external resources, and making every effort to advance technological research, professional talent cultivation, and the commercialisation of scientific research achievements, thereby contributing wisdom and strength to the high-quality development of China’s green fuel industry. Xuan Fuzhen, President of East China University of Science and Technology, pointed out that the university will give full play to its disciplinary strengths, carry out close and pragmatic cooperation with Shanghai Electric, vigorously promote the deep integration of industry, academia, and research, focus on core challenges in green fuel synthesis technologies and equipment, strive to achieve major technological breakthroughs, and work together to build a benchmark for collaborative innovation among industry, academia, and research. Jin Xiaolong, Member of the Party Committee and Vice President of Shanghai Electric Group, Vice President Qiu Jiayou, and relevant leaders from the Shanghai Municipal Science and Technology Commission, East China University of Science and Technology, and Shanghai Electric Power Station Group attended the event.

[SMM Silicon-Based PV Morning Meeting Summary] Silicon Metal: Spot silicon metal prices remained in a stalemate consolidation. Yesterday, SMM east China oxygen-blown #553 silicon was at 9,100-9,300 yuan/mt, and #441 silicon at 9,300-9,500 yuan/mt, unchanged from the previous day. The quote center of some silicon enterprises was slightly lower than that of trading firms engaging in both spot and futures market, while downstream users mainly transacted at lower prices, and overall market trading activity was subdued. Polysilicon: N-type recharging polysilicon was quoted at 38-47 yuan/kg. Polysilicon prices continued to decline somewhat recently, mainly affected by market sentiment and inventory clearance by some leading enterprises. At present, low-priced polysilicon has already fallen below the cost line of some manufacturers, and the sentiment to hold quotes firm has strengthened somewhat. The upstream market was also still watching wafer price movements.

[SMM Cast Aluminum Alloy Morning Comment: Aluminum Prices Halted Their Decline, but Wait-and-See Sentiment Remained Unchanged; Rangebound Movement May Continue in the Short Term] Spot market, yesterday the overall ADC12 market continued to hold prices steady. Aluminum prices showed signs of halting their decline, but market sentiment recovered only limitedly, and enterprises generally chose to postpone price adjustments and mainly adopt a wait-and-see stance. Demand side, downstream orders did not improve significantly, and just-in-time procurement remained the main approach, with mediocre transaction performance. Against the backdrop of easing cost-side fluctuations and insufficient demand support, ADC12 prices may continue to fluctuate within a range and remain relatively stable in the short term, with relatively limited momentum for price adjustments. Further attention should still be paid to aluminum price trends and the recovery of end-use demand.

Futures: Overnight, LME lead opened at $1,895.5/mt. After the opening, prices quickly fell to $1,885.5/mt, then fluctuate rangebound within the $1,888–1,896.5/mt range, with a balanced tug-of-war between longs and shorts and cautious market sentiment. After 0:00, prices rose further, breaking above the previous trading range and touching a high of $1,901/mt, before finally closing at $1,898.5/mt. A small bullish candlestick was recorded, up $0/mt, or 0.0%. Overnight, the most-traded SHFE lead 2605 contract opened at a low of 16,420 yuan/mt. In early trading, SHFE lead prices rose rapidly, then saw wide swings within the 16,440–16,481 yuan/mt range, with an evident tug-of-war between longs and shorts. Intraday volatility narrowed, and prices gradually stabilized around 16,455–16,465 yuan/mt, while trading volume pulled back simultaneously and market sentiment turned cautious. Late in the session, SHFE lead broke upward again, touching a high of 16,500 yuan/mt, then quickly pulled back to finally close at 16,470 yuan/mt. A small bullish candlestick was recorded, up 50 yuan/mt, or 0.3%. On the macro front: 1. Poll: Trump’s approval rating fell to its lowest level since returning to the White House. 2. US media: The US Department of Justice admitted it lacked evidence in its investigation into Powell. 3. Turkey considered using its $135 billion gold reserves to defend the lira. 4. Israeli media: The US intended to seek a one-month ceasefire to discuss a 15-point agreement with Iran. 5. Goldman Sachs maintained its overweight recommendation on Chinese equities (A-shares and Hong Kong stocks). Spot fundamentals: SHFE lead remained in the doldrums, while suppliers held prices firm on shipments. Quotations in Jiangsu, Zhejiang, Shanghai were raised slightly in spot premiums, while quotations for cargoes self-picked up from production site at primary lead plants changed little. Mainstream producing areas quoted premiums of 0-50 yuan/mt against the SMM #1 lead price, with a few quoting premiums of 100 yuan/mt ex-works. On the secondary lead side, some secondary lead enterprises had maintenance plans, and circulating cargoes in the spot market were limited. Secondary refined lead was quoted at premiums of 0-75 yuan/mt against the SMM #1 lead average price, ex-works. Downstream enterprises maintained purchasing as needed, but some engaged in more bargaining. In addition, as secondary lead prices inverted against primary lead, spot order purchases tilted toward primary lead. Inventory: As of March 24, LME lead inventory fell by 725 mt, or 0.26%, to 283,350 mt. As of March 23, SMM social inventory of lead ingot across five regions pulled back somewhat from previous inventory at high levels. Today’s Lead Price Forecast: Supply side, primary lead smelters held firm offers, and spot premiums in Jiangsu, Zhejiang, Shanghai were raised slightly, while quotations for cargoes self-picked up from production site at primary lead smelters changed little. Some secondary lead smelters had maintenance plans, and circulating cargoes in the spot market were limited. Demand side, downstream enterprises maintained purchasing as needed, but some engaged in more bargaining, and as secondary lead prices inverted against primary lead, spot order procurement tilted toward primary lead. According to SMM analysis, SHFE lead prices were likely to remain in the doldrums in the short term.

[SMM Morning Zinc Briefing: Stronger US Dollar Index Put LME Zinc Under Pressure and Slightly Lower]: Overnight, LME zinc opened at $3,095/mt. After the opening, LME zinc fluctuated downward along the daily average line, hitting an intraday high of $3,097/mt. Near the close, LME zinc fell to a low of $3,027/mt, and finally closed down at $3,038.5/mt, down $64.5/mt, a decline of 2.08%, while trading volume decreased to 11,298 lots...