Analyzing Market Strategies to Position for and Drive Up September Copper Prices

[SMM Analysis:The upward trend in smelting acid prices has persisted for over half a year, with further room for growth expected in the fourth quarter.] Will the upward trend continue into the fourth quarter? The answer is yes. On the supply side, ten smelters are scheduled for maintenance in the fourth quarter, affecting 2.7 million tons of crude smelting capacity, which will significantly limit smelting acid supply. Additionally, recent shutdowns of small acid plants in southwestern China have tightened acid sources.On the demand side, winter fertilizer preparation needs will gradually emerge in the fourth quarter, stimulating demand for smelting acid. Moreover, recent renewed increases in sulfur prices have bolstered demand for smelting acid as a substitute for sulfur-based acid. Finally, at the end of August, the EU revoked the carcinogenic label for titanium dioxide, which is expected to benefit China's titanium dioxide export demand.

With the rapid development of the new energy lithium battery industry, enterprises are paying increasing attention to the material prices of LFP cathodes with different powder compaction densities used in the NEV and ESS sectors.

SMM's monthly production data for base metals is released at the end of each month, aiming to uncover the true fundamentals for industry chain professionals and investors, and providing a clearer grasp of the future direction of the metals market.

[SMM Analysis: Limited Transportation and Weak Consumption Keep Lead Ingot Social Inventory Changes Relatively Small] SMM, September 1: According to SMM, as of September 1, the total social inventory of lead ingots across five regions stood at 67,100 mt, down 1,200 mt from August 25 and approximately 100 mt from August 28.

[SMM Analysis: Dual Support from Supply and Demand Keeps Cost Line Firm, High-Grade NPI Prices Rise Significantly] The average price of SMM 10-12% high-grade NPI increased WoW by 9.6 yuan/mtu to 937.1 yuan/mtu (ex-factory, tax included), while the Indonesian NPI FOB index price rose WoW by 1.64 $/mtu to 114.84 $/mtu.