Recent Increase in Pig Iron Prices Provides Support for Iron Ore Prices [SMM Commentary]

[Sheets & Plates] HRC and some other sheets & plates export prices rose $1/mt day-on-day today, with HRC transaction prices at $480-483/mt FOB. Market inquiries and transactions showed slight divergence recently: in long-haul regions, inquiries and transactions increased compared to earlier amid China's low prices, while in short-haul regions, competitors maintained low quotes, offering no clear price advantage, leaving transactions sluggish.

US President Trump said in an interview with Fox News on the 4th that the Strait of Hormuz will open "soon," or Iran will be hit "very hard." Regarding engagement with Iran, Trump said: "Our talks are going very well. Iran doesn't want to admit it, and you know, that's a little embarrassing. You just went out and said we had great talks, and then someone in Iran jumps up and says, 'We never met.' That's just false. They want to make a deal." When asked how the US would respond if Iran walks away from negotiations again, Trump replied: "If they go back again, they'll be hit very hard." But he added, "I hope it's not needed."

[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...