Johnson Matthey, in North America (e.g., refineries in Michigan and New Jersey), increased the yield and throughput of high-purity platinum and palladium (purity of 99.99%+) by optimizing solvent extraction and electrolysis purification processes and upgrading automation, in order to address the tight supply of raw materials from South Africa and Russia. BASF, in North America (e.g., sites in Michigan and Ohio), focused on improving the efficiency of secondary refining of platinum and palladium as well as catalyst regeneration, while expanding capacity for high-purity platinum and palladium salts and sponge, in order to offset the impact of restricted imports of Russian platinum group metals (PGMs) and production cuts at South African mines.

[SMM Aluminum Express News] Russian Ambassador Sergei Tolchenov proposed cooperation with West Kalimantan on a nuclear power plant, aluminum processing facility, and educational programs. Accompanied by Russian investors from bauxite, aluminum, and nuclear sectors, he asked the province to identify strategic partners. Rosatom (Anna Belokoneva) presented reactor technologies from 100 MW to 1,200 MW with high safety standards. Rusal (Aleksey Mirskiy) offered to invest in an aluminum processing plant and invited Governor Ria Norsan to visit Rusal facilities in Russia. Governor Ria Norsan welcomed the offers, confirming a prepared site for a nuclear power plant on Semesak Island, Bengkayang District, and openness to Russian investment.

SMM March 2nd Report: On February 28, 2026, the US and Israel launched a large-scale military strike on Iran, which promptly announced the closure of the Strait of Hormuz. The geopolitical situation in the Middle East escalated sharply and fell into sustained turmoil. As a critical "chokepoint" for global energy transportation, the Strait of Hormuz handles about 30% of global seaborne oil trade. Its blockade directly led to a severe physical disruption in the global energy supply chain, causing international oil prices to surge dramatically, with shipping costs and insurance fees skyrocketing, significantly increasing uncertainty in the energy market. As a key raw material for prebaked anodes used in aluminum production, petcoke is expected to enter a state of supply tightens, cost surges, and quality disturbances under the influence of the geopolitical situation. This change will directly impact the stability of China's petcoke import system, while also substantially raising domestic prebaked anode production costs, creating a chain reaction in the downstream aluminum industry. In terms of the overall distribution of import sources, in 2025, regions and countries with high petcoke import dependency in China showed a tiered characteristic. The first tier, centered around the US and Russia, saw the US accounting for 31%, making it the largest source of petcoke imports for China; Russia followed closely with 17%, together contributing nearly half of the total imports. The second tier was the Middle East, collectively accounting for 15%, serving as an important supplementary segment for China's petcoke imports. Other import sources were more dispersed, with Canada and Brazil each at 5%, and Argentina, Colombia, and Taiwan, China, each at 4%. This diversification of smaller sources enriched China's petcoke import supply system, but the influence of individual entities remained relatively limited. Notably, as a key supplementary sector for China's petcoke imports, the highly concentrated internal supply structure of the Middle East became the core reason for the impact of the deteriorating geopolitical situation on China's import market. In detail, the supply landscape of the Middle East exhibited a "dominance by one, supplemented by a few" feature: Saudi Arabia, with a 64% share, held an absolute dominant position, being the core exporter of petcoke from the Middle East to China; Oman ranked second with 22%; Kuwait accounted for 12%, with other regions providing only minor supplements. In terms of imported product specifications, petcoke from the Middle East mainly consisted of medium- to high-sulfur varieties, with different source countries focusing on specific types: petcoke from Saudi Arabia primarily included high-sulfur sponge coke and high-sulfur shot coke, from Oman mainly shot coke, and from Kuwait mainly medium-sulfur sponge coke. These types of petcoke are primarily used for blending in the production of prebaked anodes, serving as a crucial raw material supplement for the domestic prebaked anode industry. The blockade of the Strait of Hormuz has a multi-dimensional impact on the petroleum coke market: On one hand, the blockade leads to a complete halt in the export of Middle Eastern petroleum coke, significantly reducing the international circulation of petroleum coke. The arrival cycle for petroleum coke imported by China from the Middle East is notably extended, directly exacerbating the tightness of domestic import supply. On the other hand, some refineries in the region are affected by military conflicts, limiting their production activities and further contracting the overall supply of petroleum coke, creating a dual squeeze on the supply side. Meanwhile, the surge in international oil prices drives up the production costs of petroleum coke from refinery delayed coking units, providing a solid bottom support for petroleum coke prices. Coupled with the sharp rise in international shipping freight and war risk insurance premiums, these factors collectively push petroleum coke prices into a more likely to rise than fall trajectory. In summary, this geopolitical conflict in the Middle East is a significant external shock to the 2026 petroleum coke-prebaked anode-aluminum industry chain. The triple pressures of supply tightening, cost surges, and quality disruptions will continue to be passed down: Petroleum coke prices will keep rising, pushing up the production costs of prebaked anodes, which in turn will elevate the production costs of aluminum. If the blockade of the Strait of Hormuz persists, the entire industry chain will gradually enter a phase characterized by high costs, low inventory, and strong fluctuations. Ensuring supply chain security and controlling enterprise costs will become the core challenges facing the industry.

Indonesia's aluminum smelting industry is undergoing a massive expansion, with electricity supply emerging as the single most critical factor determining its success. Aluminum production is extremely power-intensive, requiring a steady, high-volume baseload of electricity for the electrolysis process, typically 12-15 MWh per tonne of primary aluminum produced. Any interruptions can halt operations and cause significant losses, making reliable 24/7 power non-negotiable.

[Hyundai Motor Abandons Repurchase of Russian Plant] South Korean automaker Hyundai Motor announced on February 2 that, due to the ongoing Russia-Ukraine conflict, the company did not exercise its previous repurchase option for its car manufacturing plant in Russia. According to industry sources, Hyundai Motor continued negotiations with the Russian side until the repurchase option deadline on January 31, but ultimately decided not to repurchase the plant's production facilities. It is reported that, as talks between the US and Russia to end the Ukraine conflict have stalled, the persistent geopolitical uncertainty was considered by Hyundai Motor as the primary concern behind this decision.

The Moscow Power Engineering Institute (MPEI) has developed a liquid-phase ironmaking technology that uses a coal-free, coke-free hydrocarbon-mixed reduction process for iron ore. The MPEI research team has successfully developed a new-type reactor device capable of continuously reducing iron ore required for steelmaking solely using natural gas, without relying on traditional coal and coke. This technological breakthrough marks a significant innovation in metallurgical processes. The application of this technology will drive the transformation of China's steel industry towards import substitution technology. By streamlining multiple energy-intensive production processes, it effectively reduces pollutant emissions and significantly lowers steelmaking costs. Experimental data shows that under different operating conditions, researchers have successfully produced samples with carbon content ranging from 0.006% to 2%. The innovative process can directly reduce iron elements from metallurgical concentrates, bypassing the traditional pig iron smelting stage. By adjusting the intensity of natural gas supply, the entire reduction process can be completed within 12 minutes. Nikolai Rogalev, the President of MPEI, pointed out: "The industrial application of this technology will reduce energy consumption, pollutant emissions, and manufacturing costs in steel production by nearly 50%. These breakthrough benefits stem from the realization of a single-stage continuous iron reduction process." Compared to other known non-blast furnace ironmaking processes, the outstanding advantage of this technology is that it does not require additional equipment for the preparation of reducing gases. This innovative technology was led by Konstantin Strogonov, an associate professor from the Department of Innovative Technologies for High-Tech Industries at MPEI, and was developed within the framework of the project "Research on the Application of Hydrocarbon-Mixed Iron Reduction Process in Energy-Saving Steelmaking." Through systematic research, the project team has established a complete set of process parameters.

[Russia Plans Large-Scale Lithium Production by 2030] According to foreign media reports, Russia's Ministry of Natural Resources stated on Monday that the country plans to produce at least 60,000 mt of lithium carbonate by 2030, as Moscow seeks to reduce its reliance on imports and boost the production of high-capacity EV batteries. Lithium is an indispensable metal in EV production and is listed by the U.S. Geological Survey (USGS) as one of 50 critical minerals. Reports indicate that Russia possesses 3.5 million mt of lithium oxide reserves. The USGS estimates that by 2024, Russia's lithium reserves will be approximately 1 million mt, ranking 14th globally. The Ministry of Natural Resources stated, "The country's lithium industrial production will begin in 2030.

The energy crisis triggered by the conflict between Russia and Ukraine has gradually subsided, but the global energy market has undergone drastic changes. As the relationship between Russia and Europe continues to deteriorate, Russia is eager to develop new consumer markets.

Russian President Vladimir Putin delivered a video speech to the BRICS Business Forum on August 22 local time. Putin said that Russia supports closer cooperation on supplying energy and food resources to the international market within the framework of the BRICS mechanism.

The Russian government may revise its GDP growth forecast for 2023 upward to around 1%, and economic growth may be revised upward to 2% in 2024, citing sources.