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Commodities News

Up-to-date news on raw materials


FT Mercati provides subscribers with a dedicated commodities news bulletin to stay up-to-date.
Here is a selection of the latest news:

2/6/2026

Chinese Solar Manufacturers Face 2025 Losses Amid Raw Material Cost Surge and Price Pressure

Major Chinese photovoltaic manufacturers have reported significant financial losses for 2025, driven by rising raw material costs and weak industrial silicon prices that have compressed margins across the sector, according to forecasts from leading industry players.

Hoshine Silicon Industry projected a full-year 2025 net loss attributable to shareholders of CNY 3.3 billion to 2.8 billion (approximately $454 million to $385 million), with profit declining sharply year on year. The company attributed the losses to a significant contraction in demand in the industrial silicon market amid photovoltaic supply-demand adjustments. According to Baiinfo, a Chinese commodity market research company, the average price of industrial silicon feedstock fell approximately 27 percent year on year in 2025, reducing both revenue and margins. Hoshine noted that while polysilicon fundamentals showed gradual recovery, weak short-term demand and high inventories persisted throughout the period.

Risen Energy projected a 2025 net loss forecast ranging from CNY 2.3 billion to CNY 2.9 billion. The company cited sustained low photovoltaic product prices due to supply-demand mismatch, alongside impairment provisions on long-term assets recorded under prudent accounting standards as key factors affecting profitability.

Jolywood forecast a full-year loss for 2025 of CNY 1 billion to 1.5 billion, attributing the losses to ongoing sector-wide imbalance, persistent low-price competition, and rising costs of key raw materials including polysilicon and silver paste. The company noted that continued low product prices combined with higher input costs compressed margins significantly, while loss-making orders and impairment provisions further impacted profitability.

Irico Group New Energy Co. Ltd., a solar glass manufacturer, reported unaudited revenue results for the year ending December 31, 2025 in the range of CNY 2,885 million to CNY 2,915 million, representing a decrease of 11.02 to 11.94 percent compared to the previous year. The net loss attributable to shareholders of the parent company was between CNY 542 million and CNY 592 million, an increase of 44.15 to 57.45 percent compared to the previous year's loss of CNY 376 million. Irico noted that although photovoltaic glass sales volume had increased in 2025 compared to 2024, year-on-year prices declined due to an imbalance between supply and demand.

Market conditions deteriorated further in early 2026. The China Nonferrous Metals Industry Association reported no quoted prices or transactions for mainstream polysilicon products, with market sentiment turning increasingly cautious and new orders fully stalled. Downstream buyers focused on digesting inventories, and purchasing interest remained weak. January 2026 domestic polysilicon output fell 8.3 percent month on month to approximately 102,000 metric tons, mainly due to supply cuts by Yongxiang, GCL Technology, and Lihao Qingneng. February output was expected to fall below 85,000 metric tons, roughly matching reduced wafer production plans.

Wafer prices continued their decline trajectory. Average prices fell to CNY 1.20 (approximately $0.17) per piece for N-type G10L wafers, down 4.76 percent week on week; CNY 1.26 for G12R, down 4.55 percent; and CNY 1.45 for G12, down 4.61 percent. Cell and module prices remained stable at CNY 0.41 to 0.45 per watt and CNY 0.71 to 0.75 per watt, respectively. Analysts attributed wafer weakness to soft end-market demand, rising silver prices increasing downstream costs, and significant production cuts that sharply reduced wafer procurement. Operating rates were reported at 50 percent and 46 percent for two leading manufacturers, 50 to 68 percent for integrated producers, and 50 to 70 percent for other manufacturers.

Source: pv-magazine International, reporting by Vincent Shaw and Valerie Thompson, February 6, 2026.

2/6/2026

Research Shows Pretreatment Stage Accounts for 16-38% of Environmental Impact in Lithium-Ion Battery Recycling

A comprehensive analysis published in Nature Sustainability has identified the critical role of pretreatment processes in determining the overall environmental footprint and material recovery efficiency of lithium-ion battery (LIB) recycling. The research, conducted by scientists at Monash University and East China University of Science and Technology, evaluates different pretreatment routes used to convert spent batteries into black mass, a foundational stage in industrial-scale recycling operations.

The study examines three primary pretreatment routes: mechanical, thermal, and chemical approaches. Using operational unit-level modeling, researchers assessed how these different methodologies impact materials recovery rates and environmental consequences across various cathode chemistries and regional contexts. The analysis reveals significant variability in performance depending on the chosen pretreatment pathway.

According to the findings, pretreatment operations are responsible for between 16 and 38 percent of the total environmental impact associated with LIB recycling processes. This substantial contribution underscores the importance of optimizing these initial stages to reduce the overall sustainability burden of battery recycling. The research identifies specific mechanisms driving differences in materials losses and environmental impacts across the various pretreatment routes evaluated.

The study proposes targeted process upgrade strategies that could potentially reduce environmental impacts during the pretreatment stage by approximately half. By pinpointing key impact contributors within these operations, the researchers provide actionable pathways for improving the sustainability profile of industrial battery recycling facilities.

Beyond environmental assessment, the research contributes comprehensive process inventories and bills of materials specific to different pretreatment approaches. These detailed datasets are intended to support further research initiatives, inform policy design, and facilitate technological advancement in end-of-life LIB management. The authors emphasize that such improvements are essential for developing a truly circular economy within the lithium-ion battery sector.

The work addresses the critical need for sustainable battery recycling strategies as the global production and consumption of lithium-ion batteries continues to expand. By providing high-resolution analysis of pretreatment impacts, the research establishes a foundation for more environmentally responsible approaches to battery end-of-life management, supporting both environmental sustainability goals and the transition toward circular economy principles in energy storage systems.

2/6/2026

Nippon Steel raises output 23.3% in April-December amid global demand slowdown

Japan's largest steel producer, Nippon Steel, increased its steel output by 23.3% year-on-year to 36.61 million tons in the first nine months of fiscal year 2025/2026 (April-December 2025), according to SteelOrbis. However, this production surge contrasts sharply with weaker market conditions, as shipments of steel products for the period decreased by 2.4% year-on-year to 23.31 million tons.

The company expects its steel production to reach 50 million tons by the end of the 2025/2026 fiscal year. Despite the higher production volumes, Nippon Steel posted a net loss of ¥20.81 billion ($132.35 million) for April-December, compared with a net profit of ¥386.39 billion in the same period last year. Net sales for the period amounted to ¥7.26 trillion ($46.17 billion, representing a 10.7% year-on-year increase), while operating profit stood at ¥107.05 billion ($680.93 million).

According to the company's official report, demand in the manufacturing and construction industries in Japan and abroad is sluggish, with exceptions only in certain sectors such as artificial intelligence, electric power, and defense. The widening gap between supply and demand caused by the slowdown in the Chinese economy and overproduction is increasing cheap exports from China, leading to a downturn in the global market and extremely difficult conditions, particularly in the ASEAN region.

Nippon Steel notes that although tariffs and trade restrictions have begun to contribute to market recovery in Europe and the US, the spread of such protectionist policies around the world increases the risk of cheap steel products being redirected to Japan. The company underscores the necessity to actively promote the study and implementation of trade countermeasures domestically.

Looking ahead, Nippon Steel plans to invest 6 trillion yen (approximately $39 billion) over the next five years as part of its new medium-term business plan, with the goal of increasing profits at home and abroad. The announced amount includes planned investments of nearly $11 billion in US Steel by the end of 2028. The company also expects to increase its global steel production capacity to 100 million tons per year or more by 2030.

2/6/2026

AI Market Rally Sustainability Depends on Productivity Gains, Barclays Strategist Warns

The sustained momentum in artificial intelligence-related investments hinges critically on demonstrable productivity gains, according to Julien Lafargue, Chief Market Strategist at Barclays Private Bank.

Lafargue argues that productivity growth represents the single most important risk factor for markets, sovereign debt sustainability, and monetary policy decisions globally. Without measurable productivity improvements from AI investments, the investment case for artificial intelligence lacks durability, he contends.

The strategist's assessment carries significant implications for central bank policy flexibility. According to Lafargue's analysis, limited productivity gains would constrain the maneuvering room available to central banks in conducting monetary policy, particularly in an environment where governments face mounting sovereign debt pressures.

Lafargue's perspective reflects broader market concerns about whether the current artificial intelligence rally is justified by real economic improvements or driven primarily by speculative enthusiasm. The productivity question becomes especially relevant as investors evaluate whether significant capital expenditures in AI infrastructure will translate into measurable economic benefits that can support current valuations and justify continued investment flows.

The comments underscore the critical nexus between technological innovation, economic productivity, and macroeconomic stability, positioning productivity data as a crucial metric for market participants and policymakers alike.

2/6/2026

European Commission Approves €3 Billion German Cleantech Manufacturing Aid Scheme

The European Commission has approved a €3 billion German state aid scheme designed to support strategic investments in clean technology manufacturing capacity, according to Hydrogen Central. The approval, announced on February 6, 2026, marks a significant step in Germany's commitment to the EU's clean energy transition objectives.

The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF), which was adopted on June 25, 2025. Germany notified the Commission of the measure to support strategic investments that would add manufacturing capacity for net-zero technologies and their primary specific components, as outlined in Annex II of the CISAF. The framework explicitly excludes nuclear fission energy technologies from the aid allocation.

Beyond clean technology production, the German measure also covers the production of new or recovered critical raw materials necessary for those products. This dual focus addresses both immediate manufacturing needs and the supply chain requirements essential for long-term cleantech development.

The aid will be distributed through multiple mechanisms including grants, tax advantages, interest subsidies for new loans, and guarantees for new loans. The scheme is available to companies across all German territories, with aid grantable until December 31, 2030, providing a clear timeline for implementation and investment planning.

In its assessment, the European Commission concluded that the German scheme aligns with the conditions established by the CISAF. The Commission found that the aid will incentivize the production of clean technologies, their main components, and related critical raw materials. According to the Commission's evaluation, the measure is necessary, appropriate, and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of economic activities crucial for implementing the Clean Industrial Deal, in accordance with EU state aid regulations.

The Clean Industrial Deal State Aid Framework, on which this approval is based, was established to foster support measures in sectors that are key for the transition to a net-zero economy. This approval represents a concrete manifestation of that framework's objectives and reinforces the EU's commitment to supporting green industrial development across member states.

2/6/2026

Core Silver's 2025 Soil Survey Confirms Expansive Copper-Molybdenum System at Laverdiere Project

Core Silver has announced significant results from its 2025 soil sampling programme at the Laverdiere copper project located in the Atlin Mining District of northwestern British Columbia, Canada. The comprehensive survey covered an area of 1.4 kilometres by 5.6 kilometres and involved the systematic collection of 231 soil samples with 200-metre by 200-metre spacing to explore mineral-rich zones, according to Mining-Technology.com.

The campaign revealed a multi-kilometre copper-molybdenum mineralisation corridor that expands known deposits by 1.7 kilometres northwest of the Main Skarn Zone. The soil survey identified peak copper values of 394 parts per million and molybdenum values of 227 parts per million, surpassing local background levels by more than ten times. These anomalies align with existing high-grade areas such as the Valley and Main Skarn Zones, supporting the continuity of mineralisation across the property.

The survey identified new priority targets designated as Anomalies Y and Z, which display strong copper-molybdenum signatures and are earmarked for future drilling programmes. Geochemical data suggests the presence of a large porphyry-skarn system that remains open in several directions and at depth. The Laverdiere project has identified copper and molybdenum mineralisation extending more than 5 kilometres laterally and reaching depths beyond 1,000 metres.

Historically, Laverdiere has been known as a low-elevation, drill-permitted site since early exploration in the 1900s. The property features a Cretaceous granodiorite intrusion with widespread copper-molybdenum-silver porphyry mineralisation. Core Silver president and CEO Nick Rodway stated that the 2025 soil sampling results mark a major step forward for the company. Rodway noted that the new soil results align closely with known high-grade skarn and porphyry-style mineralisation, diamond drilling results, structural controls and geophysical responses, which significantly increases confidence in the presence of a mineralised porphyry system or systems at depth. According to Rodway, these zones provide a clear roadmap for future drill targeting and enhance the discovery potential at Laverdiere as the company advances the project.