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  BC Copper 2601 Contract Closed Up 1.6%, Expectations for US Fed Interest Rate Cut Support Copper Prices [SMM BC Copper Review]

• Sulphuric Acid Rises Sharply to Boost Costs, Aluminum Fluoride Prices Increase by 250-300 Yuan/MT in December [SMM Analysis]

  Brief Review: At the beginning of the month, the December tender pricing set by leading downstream aluminum enterprises was officially finalized. The tender prices generally trended upward, settling in the range of 10,200-10,300 yuan/mt. With the clarification of tender prices, aluminum fluoride prices generally increased by 250-300 yuan/mt following this guidance. Cost side, the core raw material for aluminum fluoride, sulphuric acid, continued its strong price trend, providing solid support for aluminum fluoride costs. Meanwhile, the price of another key raw material, fluorite, experienced a pullback, alleviating some production pressure on enterprises and contributing to a slight improvement in industry profitability, which in turn boosted production enthusiasm. Demand side performance remains the main constraint in the current market, with no significant improvement in downstream procurement pace. The overall demand atmosphere remains mediocre, and effective synergistic support between supply and demand has yet to materialize. Subsequent attention should focus closely on dynamic changes in raw material costs and adjustments in the downstream procurement pace.

• Under Macro Drivers, the Short-Term Black Commodity Chain May Still Have Room for Upside [SMM Steel Industry Chain Weekly Report]

  This week, ferrous metals continued to rise initially before stabilizing, with most of the most-traded contracts completing the contract rollover. At the beginning of the week, the Central Ecological and Environmental Protection Inspection Team disclosed environmental issues in Tianjin and Hebei, with Tangshan in Hebei being singled out for unauthorized steel projects and additional capacity. Meanwhile, as December began, the two major domestic macro conferences were about to be held, strengthening market expectations and driving ferrous metals higher. In the latter part of the week, the SMM daily average hot metal output continued to decline, and raw material support weakened somewhat.

• MMi Daily Iron Ore Report (December 5)

  The DCE iron ore futures contract on the DCE traded in the doldrums today. As the contract rollover shifted to I2605, it closed at 769 yuan, down 0.77% from the previous trading day.

• [SMM Manganese Ore Weekly Review] High-Grade Ore Shows Significant Gains, Manganese Ore Prices Remain at High Levels

  December 5 news: Northern ports: South African high-iron ore at 29.6-30.1 yuan/mtu, flat WoW; South African semi-carbonate ore at 34.1-34.8 yuan/mtu, flat WoW; Gabon ore at 41.7-42.5 yuan/mtu, up 2.43% WoW; Australian lumps at 41-41.7 yuan/mtu, up 2.48% WoW; South African medium-iron ore at 36.6-37.1 yuan/mtu, up 3.37% WoW. Southern ports: South African high-iron ore at 30.8-31.3 yuan/mtu, flat WoW; South African semi-carbonate ore at 36.9-37.8 yuan/mtu, flat WoW; Gabon ore at 40.6-41.5 yuan/mtu, flat WoW; Australian lumps at 40.5-41.2 yuan/mtu, up 0.49% WoW; South African medium-iron ore at 37.6-38.1 yuan/mtu, flat WoW. Overall, port inventories of high-grade lump ore are tightening, bargaining power is tilting toward sellers, and purchasing negotiations are becoming increasingly difficult. The manganese ore market is expected to hold up well in the short term, with high-grade ore likely to continue leading the gains.