China Materials_ Weekly Monitor_ Lepidolite mine restarts with good demand outlook

Summary of Key Points from the Conference Call Industry Overview - Industry Focus: China Materials, specifically in the sectors of aluminum, lithium, gold, steel, cement, coal, glass, and battery metals [1][2][3][4][5][6] Core Insights and Arguments - Aluminum and Lithium Production: Domestic production of aluminum and lithium is resuming post-Chinese New Year (CNY) holiday, with multiple aluminum plants in Sichuan gradually restarting operations [1][30] - Lepidolite Mine Resumption: A leading lithium battery producer has resumed production at its lepidolite mine in Jiangxi, which is expected to enhance domestic lithium carbonate supply [2][33] - Gold Demand: Gold prices increased by 2.1% week-over-week (WoW) to US$2,856/oz, with total gold demand reaching a record of 4,975 tons in 2024, driven by central bank purchases [3][39] - Steel Market Stability: Steel prices remained flat WoW, with slight increases in long steel inventories (up 9.1% WoW) and flat steel inventories (up 5.5% WoW) [3][9] - Cement Market Weakness: Cement prices were flat at Rmb399/ton, with weak supply and demand in southwest China during CNY [4][43] - Coal Price Decline: Coal prices decreased by 0.3% WoW to Rmb704/ton, with a notable drop in inventory levels [4][42] - Glass Market Dynamics: Glass fiber prices remained flat, while float glass prices increased slightly by 0.2% WoW [5] Additional Important Insights - Trade Tensions: Escalating trade tensions between the US and China, including a 10% incremental tariff on Chinese goods announced by the US [1][24] - Inventory Levels: Significant increases in inventory levels for various materials post-CNY, with glass inventory rising by 40% and solar glass inventory increasing to 39 days [5][6] - Tariff Implications: The State Council of China announced additional tariffs of 15% on US-origin coal and liquefied natural gas, indicating ongoing trade disputes [4][42] - Market Sentiment: Despite bullish sentiment in the steel market, supply pressures are limiting price increases, highlighting a cautious outlook for the near term [21][30] This summary encapsulates the key points discussed in the conference call, providing a comprehensive overview of the current state of the materials industry in China, along with significant market dynamics and external factors influencing these sectors.