Considering the domestic and overseas market situations, the good performance of prebaked anode demand has laid a solid foundation for the industry to maintain a high operating rate. Based on current market dynamics, SMM predicts that the market supply of prebaked anodes in July will increase slightly.

In June, the magnesium market saw an increase in production and a decline in prices. The average monthly price of 99.90% magnesium ingot in the main production areas was 16,197.5 yuan/mt, down 5.40% MoM from the previous month. The production of primary magnesium increased by 6.63% MoM. The market pattern of strong supply and weak demand resulted in weak support for magnesium prices, showing a price trend of first declining and then stabilizing.

Another Dip in Indonesian Nickel Ore Price? NPI Remains Weak?

From the prebaked anode export data in May 2025, export volumes showed an upward trend compared to the previous month. Specifically, export orders to Indonesia, Canada, and the UAE increased significantly, all exceeding 10%, with a total increase of over 80,000 mt. However, orders to Malaysia, Iceland, and Russia declined. Southeast Asia and the Middle East regions have become the core engines of export growth due to industrial policy support and active investment, while demand in some traditional markets has contracted due to local capacity adjustments. Overall, prebaked anode export orders performed well in 2025, primarily due to the continuous release of new capacity in overseas aluminum markets and the gradual recovery of some enterprises' capacity, driving demand growth for prebaked anode. Additionally, after entering Q2 2025, the raw material side of prebaked anode showed signs of weakness, gradually weakening the driving force behind price increases. It is expected that subsequent export order prices will turn downward. Looking ahead, factors such as frequent fluctuations in raw material prices, complex and changing geopolitical risks, and a slowdown in global macroeconomic growth may adversely affect the price system and delivery rhythm of prebaked anode export orders. Continuous attention to relevant market dynamics is required.

Today, DCE iron ore f futures jumped initially and then pulled back, maintaining a relatively strong oscillation throughout the day. The most-traded contract I2509 eventually closed at 732.5, with a daily increase of 0.62%.

From the overall data analysis, at the end of June, the rigid demand in the energy storage sector remained stable, supported by domestic and overseas demand due to mid-year activities and various policies. The automobile sales boom from earlier auto shows in June has since subsided. The new energy vehicle penetration rate has stabilized, but the consumer market is lackluster. While terminal demand is expected to increase somewhat, the growth is likely to be limited. In terms of market transactions, activity remained low through the end of June. Some second-life battery manufacturers maintained minimal inventory, adhering to a just-in-time procurement strategy. Looking ahead to July, after the mid-year period, demand for both automotive and energy storage markets is expected to decline further.

Last week's announcement of import and export restrictions in the Congo (DRC) has led to a continuous increase in cobalt sulfate prices. However, due to insufficient short-term demand support, the price increase has been relatively limited. Nickel sulfate prices have remained essentially stable, while lithium carbonate prices have shown a slight rebound and are fluctuating.

As of June 30, the most-traded SHFE zinc contract closed at 22,495 yuan/mt, rising by 270 yuan/mt month-on-month, with a decline of 1.21%. In June, zinc prices first fell and then rose, hitting a low of 21,660 yuan/mt in mid-month before rebounding to a high of 22,570 yuan/mt at the end of the month. As we enter July, how will zinc prices perform?