Demand for Lithium Carbonate Expansion Breaks 1.9 million Tons of Russian Kerosene Export Ban: June 2 Commodity Information

Macro

1. [U. S.-Iran conflict] In view of Israel's continued military operations in Lebanon, Iran has suspended communication with the United States and plans to completely block the Strait of Hormuz, while opening operations on other fronts such as the Strait of Mandeb. The Iranian side stated that no negotiations will be held until Israel has stopped its military operations in Gaza and Lebanon and fully withdrawn its troops from Lebanon. U.S. President Trump said after a phone call with Israeli Prime Minister Netanyahu that all exchanges of fire between Israel and Hezbollah will stop immediately, and troops to Beirut have been ordered to withdraw.

2. [US PMI] US ISM manufacturing PMI rose 1.3 percentage points to 54 in might, expanding to five consecutive months and reaching a four-year high. New order development accelerated to a four-month high, the price payment index fell slightly however remained close to its highest level since 2022, and the employment index improved.

3. [South Korean exports] South Korea's exports reached a record $87.75 billion in might, up 53.2 percent year-on-year, the largest monthly increase since 1984. Among them, semiconductor exports surged 169.4 percent year-on-year to a record $37.16 billion billion.

Energy

1. [Crude Oil] On June 1, international crude oil futures rose sharply. U.S. WTI crude oil futures settled at $92.16 a barrel to July, up $4.80, or 5.5 percent. Brent crude oil futures settled at $94.98 a barrel to August, up $3.86, or 4.2 percent.

2. [Crude Oil] A preliminary survey released on Monday showed that US crude oil inventories are expected to decrease by about 3.6 million barrels in the week ending might 29, continuing the downward direction of the previous week. The survey also showed that distillate and gasoline stocks could also see declines.

3. [Crude Oil] Shipping data released on Monday showed that Venezuela's oil exports rose slightly to 1.25 million barrels per day in might, the third consecutive month of development, mainly due to increased shipments to the United States, India and Europe.

4. [Kerosene] On June 1, regional time, the Russian government announced that in order to ensure the stable and reliable supply of the domestic fuel market, it imposed a temporary export ban on aviation kerosene (including kerosene purchased in exchange transactions). The ban came into effect on June 1 and will last until November 30, 2026.

5, [Diesel] Australian Energy Minister Chris Bowen announced that the country will continue to emit regional fuel reserves related initiatives. At present, Australia is still grappling with the impact of the Iranian situation on energy supplies. The policy allows fuel companies to temporarily minimize their minimum stockholding standards by 20%, enabling the emit of up to 762 million liters of gasoline and diesel. Following this extension, the policy will remain in effect through September.

6. [Natural gaseous] Real-time LNG import to ship data released by China's Natural gaseous Information Terminal (E-gaseous System) show that in the week from might 25 to might 31, it is estimated that China imported a total of 21 ships of LNG through coastal LNG receiving stations, with an import volume of about 1.37 million tons, with a previous value of 790000 tons.

7. [Coke] The mainstream steel mills in Tangshan market and some steel mills in Xingtai area plan to increase wet quenching coke by 50 yuan/ton and dry quenching coke by 55 yuan/ton, which will be implemented at zero on June 3, 2026.

8. [Petroleum Coke] On June 1, Yatong Petrochemical's petroleum coke price was 2400 yuan/ton, up 350 yuan/ton from the previous trading day, sulfur 4.2, delayed coking unit 1.2 million tons/year, daily production 850 tons.

Chemical engineering

1. [Hydrofluoric Acid] On June 1, Dongying Chemical Co., Ltd., Qingliu County, Fujian Province, announced the technological transformation and upgrading project of Dongying Chemical Co., Ltd. with an annual output of 60000 tons of electronic-grade hydrogen fluoride, the content mentioned that the original designed annual output of 60000 tons of anhydrous hydrogen fluoride, 8000 tons of by-product fluorosilicic acid (40%) and 227000 tons of by-product fluorogypsum were converted into 60000 tons of electronic-grade hydrogen fluoride, 8000 tons of by-product fluorosilicic acid (40%), 2500 tons of by-product hydrofluoric acid (30%) and 227000 tons of by-product fluorogypsum.

2. [Lithium Carbonate] Meishan Ecological ecological stability Bureau accepted SQM's wholly-owned subsidiary Sichuan Dixin New Energy Lithium Carbonate Phase II Technical Reform EIA. The project locally renovated the existing production line, optimized the workshop equipment, and increased the annual production days to 330 days. After the transformation, the lithium carbonate production capacity increased from 20000 tons/year to 25000 tons/year, the by-product of anhydrous sodium sulfate expanded to 62500 tons/year, and the addition of mirabilite 16000 tons/year.

3. [Lithium Carbonate] Recently, SQM said that due to the expansion of battery energy storage, the global demand to lithium carbonate is expected to surpass 1.9 million tons in 2026.

4. [Sulfur] On June 1, the total stock of China's sulfur ports was 974100 tons: Fangcheng Port 350000 tons, Beihai Port 65000 tons, Zhanjiang Port 80000 tons, Zhenjiang Port 380000 tons, Nanjing Port 15000 tons and Dafeng Port 48000 tons.

5. [Potassium Chloride] As of June 1, the storage of potassium chloride in Qingdao Port is about 94100 tons, that in Fangcheng Port is about 248000 tons, and that in Lianyungang Port is about 646600 tons.

6. [MDI] The listing price of Shanghai Huntsman Pure MDI in June is 24600 yuan/ton.

7. [Melamine] On June 2, Chongqing Jianfeng melamine factory quoted 5900 yuan/ton, down 100 yuan/ton from the previous quotation day.

Rubber and plastic

1. [HDPE] The output of polyethylene in this cycle (might 22-28) was 638100 tons, up 0.63 from the previous week.

2. [cis-polybutadiene rubber] On June 1, the cis-polybutadiene rubber market in East China rose sharply, with spot merchants raising their offer by 200~300 yuan/ton. At present, Daqing, Yangzi and Qilu Shunding report 14850~15100 yuan/ton. Some private brands are reported to be around 14700~14850 yuan/ton.

3. [Natural Rubber] On June 1, the natural rubber market in Qingdao went up, and the quotations of merchants increased. In 24 years, Yunbao/Guangken/Haibao mainstream newspaper reported 17850~18000 yuan/ton. 25 years Yunbao/Guangken/Haibao mainstream newspaper 18150~18300 yuan/ton; Vietnam 3L mainstream newspaper 18150~18450 yuan/ton.

4. [Natural Rubber] ANRPC's latest April 2026 report predicts that global natural rubber production will drop by 2.6 to 772000 tons in April, down 0.8 from the previous month. Natural rubber consumption is expected to increase by 2.5 to 1.235 million tons, down 5.9 from the previous month. In the first four months, global gum production was expected to fall by 1.7 to 3.853 million tonnes and cumulative consumption was expected to fall by 4 per cent to 4.923 million tonnes.

Textiles

1. [Cotton Yarn] A few days ago, Yonghui Supermarket and Jielia signed a strategic cooperation agreement-"Yonghui Cotton Field" settled in Alar. The two sides will focus on Xinjiang cotton and jointly build a full-link condition manage and traceability system from the source of cotton fields to supermarket shelves. Jieliya Alar production base, with an annual output of 0.2 billion towels, uses greater than 30000 tons of Xinjiang cotton and cotton yarn annually.

2. [lint] According to data from the national cotton market monitoring system, as of might 28, the national processing rate was 99.9, which was flat year-on-year and flat compared with the average value of the past four years. The national sales rate was 95.0, up 9.2 percentage points year-on-year and 17.3 percentage points higher than the average value of the past four years.

3. [Lint] The weekly crop development report released by the U.S. Department of Agriculture (USDA) shows that as of the week of might 31, the U.S. cotton planting rate was 66%, 53% in the previous week, 64% in the same period last year, and 67% in the five-year average. The budding rate was 7%, 7% in the same period last year, and the five-year average was 7%.

4. [Lint] From might 22 to 28, 2026, the average spot price of the seven major domestic markets in the United States was 72.12 cents/pound, down 4.33 cents/pound from the previous week and up 9.51 cents/pound from the same period last year. The seven major spot markets in the United States sold 4493 packages, with a cumulative turnover of 1495496 packages in 2025/26.

5. [Lint] USDA report shows that from might 15 to 21, 2026, the net export volume of upland cotton in 2025/26 of the United States was 34800 tons, up 17% from the previous week and 32% from the average value of the previous four weeks. Shipments were 72100 tons, up 10 per cent from the previous week and down 2 per cent from the previous four-week average.

6. [Lint] On might 30, the Indian government officially announced the implementation of phased tariff exemption to cotton imports. From June 1 to October 31, 2026, the basic tariff (BCD) and agricultural infrastructure and research tax (AIDC) on imported cotton will be exempted. India's cotton import tariff was 11%.

7. [Lint] Australian Bureau of Agricultural Resources and Economic Sciences: Cotton output is expected to be 1 million tons in 2025/26, down 16% from 2024/25.

Steel

1. [Manganese Silicon] According to research, an alloy factory in Fengzhen, Inner Mongolia, stopped production of a 33000KVA silicomanganese alloy submerged arc furnace on might 30 due to insufficient power. It is expected to stop production to 30 days, affecting the daily output of about 200 tons.

2. [Steel] Last week, the average capacity utilization rate of 94 independent electric arc furnace steel mills nationwide was 61.65 percent, down 0.47 percentage points from the previous month; the average operating rate of steel mills was 75.97 percent, up 0.78 percentage points from the previous month.

3. [Iron Ore] From might 25, 2026 to might 31, 2026, the total amount of iron ore arriving from 47 ports in China was 27.433 million tons, up 1.387 million tons from the previous month. The total amount of iron ore arriving from 45 ports in China was 25.659 million tons, up 1.44 million tons from the previous month. The total amount of iron ore arriving from the six northern ports was 12.417 million tons, down 365000 tons from the previous month.

4. [Galvanized Sheet] Chongqing Wanda Sheet Co., Ltd. Released June Galvanized Sheet Roll Form Price 1.0*1250 Specification Base Price is 4300 yuan/ton, up 40 yuan/ton from last month.

5. [Steel] In April 2026, China exported 9.498 million tons of steel, up 4.0 percent from the previous month. From January to April, China exported 34.214 million tons of steel, down 9.7 percent from the same period last year. In April, China imported 465000 tons of steel, down 9.1 percent from the previous month. From January to April, China imported 1.804 million tons of steel, down 12.9 percent year on year.

Colored

1. [Aluminum] Chinalco: On June 1, the spot prices of aluminum ingots (AL99.70) in various regions are as follows: 24190 yuan/ton in East China market, 24040 yuan/ton in South China market, 24110 yuan/ton in Southwest market and 24100 yuan/ton in Central Plains market; prices were lowered by 10 yuan/ton, 20 yuan/ton, 20 yuan/ton and 30 yuan/ton respectively compared with might 29.

2. [Copper] Goldman Sachs raised its LME copper price forecast to $13,735/ton by the end of 2026.

3, [Copper] Citi: raised the copper price forecast, immediate target price of $14,500/ton, the next 6 to 12 months target price of $15,000/ton. U.S. copper tariff concerns are expected to continue to push up prices in June until tariff policy is clear.

agricultural sideline

1. [Soybean Oil] As of the week of might 21, 2026, the net sales volume of soybean oil in the United States in 2025/26 was 3400 tons, significantly higher than the average of last week and four weeks, in line with market expectations. So far this year, the total sales of soybean oil in the United States is 372000 tons, down 64% year-on-year. The U.S. Department of Agriculture's supply and demand report predicts a 51.8-percent year-on-year decrease.

2. [Soybean Meal] In the week ending might 21, the net sales volume of soybean meal in the United States was 441000 tons (304000 tons to Chen Zuo and 137300 tons to new production), down from 492000 tons (475700 tons to Chen Zuo and 16400 tons to new production) a week ago. Chen's net sales to the week were 36 per cent reduce than last week and 14 per cent reduce than the four-week average, at the low end of market expectations.

3. [Soybean] The US Department of Agriculture's Zhou Du Export Sales Report shows that as of might 21, 2026, the cumulative US soybean export to China (Mainland) in 2025/26 (starting from September 1) was 11.34 million tons, down from 11.21 million tons a week ago, down from 22.41 million tons in the same period last year.

4. [Soybean] According to data from the European Commission, EU oilseed and vegetable oil imports in 2025/26 were generally reduce than last year, reflecting the expected development in domestic oilseed production and crushing. As of might 24, the EU 27 countries imported about 11.95 million tons of soybeans in 2025/26 (starting from July 1), a year-on-year decrease of 8%, and a year-on-year decrease of 8% last week.

5, [corn] the European Commission's grain trade data show that the EU grain export volume development in 2025/26, mainly supported by the development of Durham wheat and barley exports. As of might 24, the export volume of grain in the EU 27 countries in 2025/26 (starting from July 1) was 35299676 tons, up 16% from the same period last year and 17% year-on-year a week ago.

6. [Rapeseed] The report of the Canadian Grain Council shows that as of the week of might 24, rapeseed exports were 139200 tons, a decrease of nearly 44% from the previous week. Domestic consumption was 228100 tonnes, down nearly 19 per cent.

7. [Palm Oil] Indonesia's Ministry of Trade said that the reference price to crude palm oil exports in June 2026 was set at US $1029.51/ton, down from US $1049.58/ton in might. The export tax on crude palm oil fell to $148/ton in June, down from $178/ton in might.

8. [Palm Oil] The Malaysian government announced that starting from June 1, B15 biodiesel fuel will be officially implemented nationwide, I .e. 15% palm oil-based biodiesel mixed with traditional fossil diesel.

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(Source: Business)