Daily Updates on SHFE Base Metals and Stainless Steel Warrants, With Nickel Critically Low   

[SMM Stainless Steel Daily Review] SS Futures Retreat after Rapid Rise; Spot Stainless Steel Trades Cool Down According to SMM on August 5, SS futures generally pulled back, ending yesterday's shot up, and followed SHFE nickel to slump sharply. As of close, the most-traded SS contract settled at 14,475 yuan/mt. In the spot market, dragged by the renewed decline in SS futures, trading sentiment weakened notably, and traders lowered their quotes. Under the sentiment of rushing to buy amid continuous price rise and holding back amid price downturn, transactions turned visibly quiet. The most-traded SS futures contract: at 10:15 am, SS2609 was at 14,480 yuan/mt, down 390 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi were in the range of 490-890 yuan/mt. In the spot market, the average price for cold-rolled 201/2B coil in Wuxi held steady; for cold-rolled 304/2B coil with raw edges, the average price in Wuxi fell by 75 yuan/mt, and in Foshan also fell by 75 yuan/mt; the price for cold-rolled 316L/2B coil in Wuxi was flat; for hot-rolled 316L/NO.1 coil, quotes in Wuxi were unchanged; and cold-rolled 430/2B coil in both Wuxi and Foshan remained flat. This week, macro sentiment turned bearish, dominating metals market trends, and stainless steel futures consolidated on a subdued note under overall pressure. The US Fed's interest rate meeting this week kept rates unchanged as expected, but the overall stance was hawkish, weighing on commodity valuations broadly, and the nonferrous metals sector weakened collectively. Affected by the transmission of macro headwinds, SS futures consolidated on a subdued note in tandem, with the center of futures moving lower and overall market trading sentiment cautious. Spot and inventory side, futures...

[SMM Stainless Steel Daily Review] SS Futures Center Moves Up, Spot Stainless Steel Market Sentiment Recovers According to SMM news on August 4, SS futures shot up and probed higher overall. Near the close of the night session, driven by fund operations, SHFE nickel and SS futures shot up quickly. Although SS pulled back briefly at the morning open, it had risen significantly overall. At the close, the most-traded SS contract settled at 14,470 yuan/mt. Spot market, buoyed by the rally in SS futures, traders for stainless steel agents raised their quotes even as steel mill spot guidance prices held steady. Market activity picked up and inquiry and transaction performance was moderate. The most-traded SS futures contract: at 10:15 AM, SS2609 was at 14,870 yuan/mt, up 345 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi were in the 200–550 yuan/mt range. In the spot market, average prices: Wuxi cold-rolled 201/2B coil stable; cold-rolled raw edge 304/2B coil (Wuxi up 50 yuan/mt, Foshan up 75 yuan/mt); Wuxi cold-rolled 316L/2B coil flat; hot-rolled 316L/NO.1 coil quote flat in Wuxi; cold-rolled 430/2B coil flat in both Wuxi and Foshan. This week, macro sentiment turned bearish and dominated metals market trends, and stainless steel futures consolidated on a subdued note under overall pressure. The US Fed left interest rates unchanged at its meeting this week as expected, but its overall tone was hawkish. Commodity valuations came under broad pressure, and the nonferrous metals sector weakened across the board. Dragged down by the contagion of macro headwinds, SS futures...

[SMM Analysis] SS Futures Pull Back, Stainless Steel Spot Trades Remain Sluggish According to SMM on August 1, SS futures showed an overall decline and pullback trend. Dragged down by the pullback in SHFE nickel, SS fell in tandem. At the close, the most-traded SS contract settled at 14,470 yuan/mt. In the spot market, SS futures retreated notably. Although NPI prices have been holding up well recently, lending cost support to stainless steel spot prices which fluctuated only slightly, market inquiries and transactions weakened further, and some agents lowered prices to take orders. SS most-traded contract. At 10:15 a.m., SS2609 was at 14,525 yuan/mt, down 185 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi were in the 445-895 yuan/mt range. In the spot market, the average price of cold-rolled 201/2B coil in Wuxi held steady; for cold-rolled 304/2B coil with mill edge, the average price in Wuxi dropped 25 yuan/mt, and in Foshan dropped 25 yuan/mt; cold-rolled 316L/2B coil in Wuxi fell 100 yuan/mt; the quote for hot-rolled 316L/NO.1 coil in Wuxi was unchanged; cold-rolled 430/2B coil in both Wuxi and Foshan was flat. This week, macro sentiment turned bearish and dominated the metals market, leaving stainless steel futures under pressure and consolidating on a subdued note. The US Fed kept rates unchanged this week as expected, but its overall tone was hawkish, broadly weighing on commodity valuations, and the nonferrous metals sector weakened across the board. Dragged down by the transmission of macro headwinds, SS futures followed suit and consolidated on a subdued note, with the center of futures trading shifting lower and overall market sentiment turning cautious. ……