China Materials_ Weekly Monitor_ Slow Season Pattern Begins to Emerge

Summary of Key Points from the Conference Call Industry Overview - Industry Focus: China Materials, including sectors such as base metals, battery metals, gold, steel, coal, cement, glass, and others [1][2][3][4][5][6]. Key Insights Base Metals - Copper: Shanghai copper prices increased by 3.0% week-over-week (WoW) to Rmb75,530/t, with inventories down by 5.4% WoW [1][10]. - Aluminum: Prices rose by 0.7% WoW to Rmb19,980/t, with inventories decreasing by 5.7% WoW [1][10]. Battery Metals - Lithium Hydroxide: Domestic industrial-grade lithium hydroxide prices increased by 0.9% WoW to Rmb63,000/t, while battery-grade lithium hydroxide rose by 0.5% WoW to Rmb70,030/t [2][10]. - Lithium Carbonate: Both industrial-grade and battery-grade lithium carbonate prices increased by 1.1% WoW to Rmb72,450/t and Rmb75,700/t, respectively [2][10]. - Shipping Disruptions: Beira port in Mozambique faced shipping difficulties due to protests, potentially increasing production costs by Rmb2,000/t for lithium carbonate [2][34]. Gold - Price Movement: Gold prices rose by 1.0% WoW to US$2,667/oz, with the People's Bank of China (PBoC) increasing its gold reserves to 73.29 million ounces [3][44]. Steel - Price Declines: Shanghai hot-rolled coil (HRC) prices fell by 1.5% WoW to Rmb3,340/t, while cold-rolled coil (CRC) prices decreased by 0.7% WoW [4][10]. - Inventory Trends: Long steel inventories increased by 0.9% WoW, while flat steel inventories rose by 2.7% WoW [4][10]. Coal - Price Stability: Coal prices (5,500 kcal) increased slightly by 0.1% WoW to Rmb708/t, with Qinhuangdao inventory up by 5.7% WoW [5][10]. Cement - Price Decline: Cement prices decreased by 0.9% WoW to Rmb404/t as of January 10, 2025 [4][10]. Glass - Price Movements: Float glass prices increased by 2.1% WoW to Rmb1,327/m², while glass fiber prices remained flat at Rmb3,933/t [5][10]. Additional Insights - Government Initiatives: The National Development and Reform Commission (NDRC) and Ministry of Finance (MoF) announced the extension and widening of the goods trade-in program for 2025, which may impact consumer goods and equipment renewal [4][19]. - Excavator Sales: Excavator sales in China totaled 201,131 units in 2024, reflecting a 3.13% year-over-year increase, indicating potential growth in construction and infrastructure sectors [26]. Conclusion The conference call highlighted various trends across multiple sectors within the China materials industry, with notable price movements in metals, disruptions in shipping affecting lithium production, and government initiatives aimed at stimulating economic activity through trade-in programs.