[SMM Steel Mill Guidance Price] Guidance prices for various stainless steel series from large domestic steel mills on July 4

In July, the expected increase in ingot production is anticipated to drive up the demand for raw materials such as lead concentrates and scrap batteries. The high demand has further pushed up the cost of raw materials, which will boost lead prices to hold up well. However, it should be noted that the current lead-acid battery market has not truly entered the peak season, and the high lead prices have constrained the enthusiasm for downstream procurement...

This week, the ferrous metals series saw a strong rally, effectively breaking through the previous support level. At the beginning of the week, there was increased disruption in the raw material sector. First, the impact of environmental protection-driven production restrictions on coking coal weakened, leading to a decline in raw material prices. Subsequently, production restrictions were imposed on sinter in Tangshan. Although the actual impact was limited, it had a significant psychological effect, causing the ferrous metals series to rebound slightly. Mid-week, the Central Financial and Economic Affairs Commission meeting issued signals on addressing cut-throat competition, raising expectations for supply-side reforms. As a result, the ferrous metals series generally rose, becoming the main logic driving the market trend in the second half of the week. In the spot market, despite the strong performance of futures, end-users continued to purchase as needed. However, the spot-futures price spread narrowed, and there was an increase in demand for closing out reverse arbitrage positions and entering into forward arbitrage positions...

As of Friday this week, the price of SiMn alloy 65/17 (cash) in the northern market was 5,550-5,650 yuan/mt, unchanged from last Friday; in the southern market, the price of SiMn alloy 65/17 (cash) was 5,600-5,700 yuan/mt, also unchanged from last Friday. The spot price of manganese ore showed an upward trend, with stronger cost support, and SiMn alloy plants had weak willingness to sell at low prices. As steel tenders entered the market one after another, SiMn alloy plants maintained a wait-and-see attitude, with most holding back from selling, and the spot price of SiMn alloy remained stable for the time being. In the future, continuous attention should be paid to the guidance of steel tenders' progress on SiMn alloy prices.

[SHFE Zinc Maintains High Levels, Awaiting Further Macro Guidance]: The most-traded SHFE zinc 2508 contract opened at 22,325 yuan/mt. After the opening, SHFE zinc began to fluctuate considerably. Near the midday session, SHFE zinc dipped to 22,285 yuan/mt, then fluctuated upward all the way. Near the end of the session, it reached a high of 22,445 yuan/mt, and finally closed up at 22,410 yuan/mt...

[It is difficult for the transformer industry to launch large-scale projects in the short term. The electrical steel market in Shanghai is expected to remain in the doldrums next week.] Looking ahead, the sluggish market transaction situation may not improve. Except for large end-users, downstream enterprises show low enthusiasm for purchasing. It is difficult for the transformer industry to launch large-scale projects in the short term. It is expected that the electrical steel market in Shanghai will remain in the doldrums next week, and there is still downward pressure on prices.