[SMM Stainless Steel Daily Review: Futures Decline Drags Down Spot, Stainless Steel Destocking Pace Slows] SMM August 21st report, SS futures showed a further pullback. The decline in futures has not yet stopped, with an overall trend of fluctuating downward during the day, and prices mostly remained below 12,800 yuan/mt. In the spot market, influenced by the continuous decline in futures, the spot market was also dragged down. The wait-and-see sentiment among downstream customers became more evident, with only just-in-time procurement being maintained. As month-end approaches, traders face pressure to sell, leading to more discounting, but overall transaction volumes remain low. This week, social inventory decreased further, down 0.02% WoW to 933,400 mt. On the futures side, the most-traded 2510 contract was in the doldrums. At 10:30 am, SS2510 was quoted at 12,790 yuan/mt, down 20 yuan/mt from the previous trading day. In Wuxi, the spot premiums/discounts for 304/2B were in the range of 310-510 yuan/mt. In the spot market, Wuxi cold-rolled 201/2B coils were quoted at 8,000 yuan/mt; cold-rolled 304/2B coils, with average prices of 13,050 yuan/mt in both Wuxi and Foshan; cold-rolled 316L/2B coils, 25,475 yuan/mt in both Wuxi and Foshan; hot-rolled 316L/NO.1 coils, 24,900 yuan/mt in both locations; and cold-rolled 430/2B coils, 7,350 yuan/mt in both Wuxi and Foshan. Recently, stainless steel social inventory has been declining continuously, coupled with macro policies...

Today, the most-traded iron ore futures contract I2601 continued to be in the doldrums, closing at 769, down 0.19% from yesterday. Traders showed a moderate willingness to sell; steel mills purchased as needed, with few inquiries.

[Domestic Iron Ore Brief: Tangshan Area Iron Ore Concentrates Prices May Remain Volatile] The domestic ore market in the Tangshan area was generally stable, with the current 66-grade iron ore concentrates dry basis tax-inclusive delivery-to-factory price at 980-990 yuan/mt. Under environmental protection-related controls, ore processing enterprises have successively halted operations for maintenance, and transportation has been hindered, exacerbating the overall tightness of market resources. Resources from Shandong and Anhui regions are accelerating their flow into the local area.

As the Southeast Asian economy gradually recovers and the trend of manufacturing returning strengthens, steel demand in Malaysia is steadily recovering. It is expected that the apparent consumption of steel in Malaysia will continue to rise, with construction and infrastructure remaining traditional pillars. However, the share of sheets & plates consumption will increase year by year, driven by the development of manufacturing, electrical appliances, and the automotive industry. Currently, there is a temporary surplus in long product capacity in Malaysia, leading to increasingly fierce market competition; while flat product capacity is relatively scarce, highly dependent on imports. In the medium and long-term, Malaysia needs to accelerate the expansion of flat rolling production lines to enhance local self-sufficiency in flat products, thereby reducing reliance on imports. At the industrial structure level, companies with fully integrated production lines will become the core dominant force in the future Malaysian steel market. In comparison, other steel enterprises mainly using electric arc furnaces (EAF) need to accelerate their extension into the flat product sector to gradually achieve a value chain leap from traditional building material suppliers to mid-to-high-end manufacturing. Overall, Malaysia's steel industry stands at a critical crossroads of green transformation and structural adjustment. The industry faces three major challenges in the future: "green and low-carbon, capacity transformation, and regional competition." Only by clearly positioning themselves and promoting differentiated development can companies seize opportunities in regional integration and the reshaping of the global supply chain, achieving a strategic transformation from "capacity expansion" to "quality and efficiency."

[SS FUTURES FALL BACK TO 12,800 YUAN/MT, STAINLESS STEEL SPOT PRICES DROP DUE TO WEAK DEMAND] SMM reported on August 20th, SS futures showed a further pullback. Today, influenced by the US adding 407 types of steel and aluminum derivative products to its tariff list, futures generally declined, dragging SS futures prices down, breaking below the 12,800 yuan/mt level, before slightly rebounding and stabilizing above 12,800 yuan/mt by the close. In the spot market, the decline in SS futures weakened market confidence, leading traders to slightly lower their quotes in an attempt to boost transactions. However, with the futures market falling, downstream end-users became more cautious, adopting a wait-and-see sentiment, making purchases more hesitant. In the futures market, the most-traded contract 2510 was in the doldrums. At 10:30 AM, SS2510 was quoted at 12,810 yuan/mt, down 100 yuan/mt from the previous trading day. In Wuxi, the spot premiums and discounts for 304/2B stainless steel were in the 310-510 yuan/mt range. In the spot market, Wuxi cold-rolled 201/2B coils were all quoted at 8,050 yuan/mt; cold-rolled 304/2B coils with trimmed edges, averaged 13,050 yuan/mt in Wuxi and 13,050 yuan/mt in Foshan; cold-rolled 316L/2B coils were 25,475 yuan/mt in both Wuxi and Foshan; hot-rolled 316L/NO.1 coils were 24,900 yuan/mt in both locations; cold-rolled 430/2B coils in Wuxi and Foshan were 7,350 yuan/mt each. Recently, social inventory of stainless steel has been declining...