SMM Daily Comments (Jul 3): SHFE Base Metals Rose across the Board with Tin Surging, Ferrous Metals Prices Closed Mixed

On June 13, lithium carbonate futures rose 1.14% to 97,800 yuan/ton (~13,489.66 USD/ton). The battery-grade index fell to 99,121 yuan/ton (~13,671.86 USD/ton).

On May 24, lithium carbonate futures rose 2.28% to 107,600 yuan/ton (~14,861.88 USD/ton). The battery-grade index increased to 106,293 yuan/ton (~14,681.35 USD/ton).

On May 7, lithium carbonate futures rose 1.70% to 113,900 yuan/ton (~15,775.62 USD/ton). Battery-grade index reached 111,686 yuan/ton (~15,468.98 USD/ton), rising 103 yuan.

In the first quarter of 2024, major central enterprises such as China Energy Construction, CNNC, State Energy Group, China Huadian Group, China Huaneng Group, China Datang Group, State Power Investment, and China Energy Construction have secured a total of over 56GW in EPC contracts for photovoltaic power stations. Ground-mounted power stations are the dominant project type, with distributed photovoltaic stations also gaining traction. Bid prices for photovoltaic EPC projects have decreased due to lower raw material costs. Central SOEs and private enterprises like Suntech, JA Solar, and Schneider Electric have won bids, indicating a competitive market for photovoltaic projects in China.

Today's lithium carbonate market rose significantly, with the SMM index at 112,624 yuan/ton (~15,577.32 USD/ton) and futures up 2.02%, amid strong pricing sentiment and supply tightness.

Today's lithium carbonate market saw a modest increase, with the SMM index at 111,571 yuan/ton (~15,431.67 USD/ton) and futures rising by 0.44%, amid slight fluctuations.

Energy Storage Battery Prices Remain Stable in February amid Intensifying Market Competition

On March 7th, lithium carbonate futures slightly increased by 0.27% to 113,000 yuan/ton, while spot prices rose to an average of 108,500 yuan/ton, indicating market caution.

Rio Tinto's Tiwai Point smelter in New Zealand was due to close in 2021, but it continues to operate until the end of 2024 as a result of a new electricity agreement with Meridian Energy. In February 2024, Contact Energy's proposed a new wind farm project in Southland. However, the continuation of the new wind farm depends on the future of the smelter. There will be a win-win situation once the negotiations are agreed upon.

Overnight, LME zinc prices opened at US$2,581/ton and reached a low of US$2,567/ton during the period. During the European trading session, LME zinc prices moved up and hit a high of US$2,605.5/ton, finally closing at US$2,587/ton, up US$0.5/ton, or 0.02%.