China Materials_ Weekly Monitor_ Slow Demand Recovery post Holiday

Summary of Key Points from the Conference Call Industry Overview - Industry: China Materials, specifically focusing on metals and construction materials in the Asia Pacific region [1][6] - Current Situation: The industry is experiencing slow demand recovery post-holiday, with various materials showing mixed price movements and inventory changes [1][6] Core Insights and Arguments Steel Industry - Anti-Dumping Duties: Korea has imposed preliminary anti-dumping duties on Chinese steel plates ranging from 27.91% to 38.02% [1][3][17] - Price Movements: - Shanghai HRC prices increased by 1.8% WoW, while CRC prices rose by 0.5% WoW [3][9] - Tangshan billet prices increased by 3.0% WoW [3][9] - Rebar prices decreased by 0.2% WoW [3][9] - Inventory Changes: Long steel inventories increased by 4.6% WoW, while flat steel inventories decreased by 0.5% WoW [3][9] Base Metals - Copper Prices: Shanghai copper prices decreased by 0.2% WoW, with inventories up by 12.9% [2][9] - Aluminum Prices: Shanghai aluminum prices increased by 1.1% WoW, with inventories down by 17.5% [2][9] Battery Metals - Lithium Prices: - Domestic industrial-grade lithium hydroxide prices increased by 0.1% WoW to Rmb63,800/t, while battery-grade prices decreased by 0.1% WoW to Rmb70,450/t [2][9] - Industrial-grade lithium carbonate prices rose by 0.3% WoW to Rmb73,650/t, while battery-grade prices fell by 0.3% WoW to Rmb76,220/t [2][9] - Government Initiatives: The Ministry of Industry and Information Technology (MIIT) is promoting the exploration of domestic lithium, cobalt, and nickel resources [2][20] Coal Industry - Price Movements: Coal prices (5,500 kcal) decreased by 0.6% WoW to Rmb699/t, with inventories up by 3.4% [4][9] - Capacity Closure: Inner Mongolia closed 1.8 million tons of coal capacity as part of state guidelines [4][26] Cement and Glass Industries - Cement Prices: Cement prices decreased by 2.1% WoW to Rmb386/t [3][9] - Glass Prices: Float glass prices decreased by 0.4% WoW to Rmb1,343/m2, while glass fiber prices remained flat [5][9] Additional Important Insights - Market Dynamics: The overall demand for construction materials remains weak, with a notable decline in production and sales in various sectors [1][17] - Investment Trends: The new energy battery industry saw Rmb37.1 billion invested in January 2025, indicating a gradual recovery in expansion [20][22] - Global Supply Chain: The first shipment of high-quality bauxite from South America has arrived in China, highlighting ongoing resource diversification efforts [20][22] Conclusion The China Materials sector is currently navigating a complex landscape characterized by regulatory challenges, fluctuating prices, and mixed inventory trends. The imposition of anti-dumping duties and government initiatives to promote domestic resource exploration are key factors influencing market dynamics.