[SMM Nickel Flash] The average price of SMM 10-12% high-grade NPI rose WoW by 2.2 yuan/nickel unit to 1,089.9 yuan/nickel unit (ex-factory, tax included), while the average price of Indonesia NPI FOB index rose WoW by $0.39/nickel unit to $138.93/nickel unit. This week, the tender price of mainstream steel mills was released, and the market came under brief pressure, but trading activity subsequently recovered to some extent, with high-grade NPI transaction prices rising again.

[SHFE/LME Price Ratio Pulled Back and Fluctuated Around 7.3]: This week, the SHFE/LME price ratio pulled back and fluctuated around 7.3, and the zinc ingot import window remained closed. Outside China, easing inflation concerns boosted a rebound in zinc prices; subsequently, investors stayed cautious about an escalation of the Middle East conflict, while a stronger US dollar, together with US February CPI coming in line with expectations and still-sticky inflation, drove LME zinc to fluctuate lower.

SMM News, March 13: The SHFE aluminum 04 contract fluctuated at highs after opening today. High aluminum prices suppressed downstream demand, and overall procurement demand remained weak, with market premiums continuing to soften. Market premiums kept declining from the opening. Today’s mainstream market quotations and transaction prices were concentrated between -20 yuan/mt and the average price. Today, the east China market shipment sentiment index was 3.32, flat MoM; the purchasing sentiment index was 2.55, down 0.02 MoM.

[SMM Analysis: Weak End-User Demand but Firm Costs, High-Grade NPI Prices Rose Steadily] The average SMM 10-12% high-grade NPI price rose 2.2 yuan/nickel unit WoW to 1,089.9 yuan/nickel unit (ex-factory, tax included), while the average Indonesian NPI FOB index price increased $0.39/nickel unit WoW to $138.93/nickel unit. This week, mainstream steel mills released tender prices, and the market came under brief pressure.

[SMM Aluminum Morning Meeting Summary: The SHFE/LME Price Ratio Continued to Weaken, and Aluminum Prices Were Expected to Fluctuate at Highs in the Short Term] Against the backdrop of continued tightening LME liquidity, LME aluminum still had upward momentum, with strong support from overseas prices, and the backwardation structure was expected to persist in the short term. China was in a phase of high inventory + weak fundamentals, and its upward momentum was clearly weaker than that outside China. Amid diverging domestic and external drivers, the SHFE/LME price ratio was expected to continue weakening, and aluminum prices were expected to continue fluctuating at highs in the short term.

This week, Pr-Nd alloy prices generally fell first and then rose, and have now stabilized in the range of 980,000-1 million yuan/mt. This price fluctuation was mainly driven by the impact of news factors on market sentiment.

This week, China’s domestic manganese-based battery materials market has shown a differentiated operation trend. The price of battery-grade manganese tetroxide has slightly declined, the price of electrolytic manganese dioxide has slightly increased, and lithium manganate has maintained a weak balance of supply and demand.

On March 13, the average price of SMM battery-grade nickel sulphate rose slightly.

Gold surged during the 12-day war with Iran last year and then gave up its gains when a ceasefire was announced. But, two weeks into the latest conflict, its price remains largely unmoved.

In contrast to the typical price declines seen during the traditional spring festival low season from January to February in previous years, China’s domestic manganese sulfate market has recently staged an independent rally of “strong performance amid the off-season”, with prices rising steadily along the way.