The prices of lithium carbonate and industrial silicon continue to be under pressure, and the supply-demand margin of coking coal and coke deteriorates

Recently, multiple commodity markets have shown different trends. 

Among them, the performance of lithium carbonate, industrial silicon, and coking coal and coke markets is particularly noteworthy.

1、 The supply of lithium carbonate market exceeds demand, and prices continue to be under pressure

Despite the rapid development of the new energy vehicle industry, the lithium carbonate market is still in a state of oversupply. 

Although upstream enterprises have a pro price mentality, their actual willingness to reduce production is insufficient. 

Although downstream markets have entered the traditional peak season, their purchasing enthusiasm is not high, 

and they mainly rely on long-term contracts, with limited interest in spot purchases. 

Under the dual pressure of accumulated inventory and sluggish downstream demand, the price of lithium carbonate continues to be under pressure. 

The market is still in the process of destocking, and there is a high possibility that prices will continue to decline.

2、 Weak demand and high inventory, industrial silicon falls to new lows

Industrial silicon futures prices hit a new low, causing long positions to withdraw significantly. 

This is mainly due to the weak supply and demand fundamentals in the current market, as well as the continuous accumulation of inventory. 

Although upstream industrial silicon companies have reduced production, the efforts are limited. 

However, downstream demand for polycrystalline silicon, organic silicon, and other materials has significantly declined, 

while industrial silicon is still mainly purchased for essential needs, and the replenishment market has not yet emerged. 

Looking ahead to the future, there is a high probability that industrial silicon prices will continue to bottom out 

in the face of difficult supply-demand contradictions. 

However, if there is a large-scale production reduction in the upstream, it may trigger a temporary rebound.

3、 Steel companies' profits decline, putting pressure on demand for coking coal and coke

Affected by the decline in steel prices, the profits of steel enterprises continue to narrow, 

the scope of maintenance continues to expand, 

and the operating rate of blast furnaces and the production of molten iron have significantly decreased. 

This directly leads to a decline in demand for coking coal and coke, putting pressure on prices. 

At the same time, the inventory of coking coal and coke itself is also at a high level, 

and upstream production areas have accumulated inventory, causing traders to lower prices for shipments. 

Downstream coking enterprises, under cost pressure, have also reduced production and restricted output. 

In the pattern of weak supply and demand, the price of coking coal and coke may continue to seek a bottom.

Overall, the price trends of the above varieties clearly reflect the current situation of supply-demand imbalance. 

Against the backdrop of slowing macroeconomic growth and insufficient downstream demand in the industrial chain, 

the inventory pressure caused by upstream overcapacity is difficult to effectively alleviate, 

and prices continue to be under pressure. For market participants, 

the pessimistic expectations in the early stage have fully reflected the lack of rebound momentum, 

but the possibility of price stabilization after a deep decline is increasing. 

As risk appetite decreases, it is even more important to closely monitor cost support and production cuts, and seize opportunities at this stage.