Today, the iron ore futures turned from weak to strong, with the most-traded contract I2601 closing at 790.5, up 1.74% from yesterday. Traders showed moderate willingness to sell; steel mills adopted a wait-and-see sentiment and purchased as needed, while some mills with better finished product sales actively restocked.

[SS Futures Drives Spot Stainless Steel, Inventory Continues to Drop] SMM reported on August 28 that the SS futures showed a trend of first falling then rising. After the night session opened, it quickly fell and then operated below 12,800 for most of the time. In the afternoon, it rebounded and strengthened, closing above 12,850 yuan/mt. In the spot market, prices were lowered in the morning due to the decline in SS futures and poor acceptance of high-priced goods by downstream end-users. Traders faced significant pressure to sell off inventory at month-end. In the afternoon, as futures stopped falling and started to rise, market confidence returned, leading to improved transactions and higher quotes. This week, social inventory further decreased, down 0.49% WoW to 928,800 mt. In the futures market, the most-traded contract 2510 fluctuated. At 10:30 AM, SS2510 was quoted at 12,800 yuan/mt, down 90 yuan/mt from the previous trading day. The spot premiums/discounts for 304/2B in Wuxi ranged between 320-470 yuan/mt. In the spot market, Wuxi cold-rolled 201/2B coils were quoted at 8,050 yuan/mt; cold-rolled 304/2B coils averaged 13,025 yuan/mt in Wuxi and 13,025 yuan/mt in Foshan; cold-rolled 316L/2B coils were 25,675 yuan/mt in both Wuxi and Foshan; hot-rolled 316L/NO.1 coils were 25,100 yuan/mt in both locations; and cold-rolled 430/2B coils were 7,400 yuan/mt in both Wuxi and Foshan. Last week, SS futures continued to fall, completely erasing gains made this month…

According to the SMM survey, this week, the SMM broad-based inventory of HRC in Ningbo stood at 355,500 mt (as of August 27), up 10,300 mt WoW. This week, HRC prices first declined and then rose, with spot prices adjusting slightly by 10-30 yuan/mt on a weekly basis. The market trading atmosphere remained moderately weak during the week, and end-user purchase willingness was average. By the afternoon close on August 28, the most-traded HRC 2510 futures contract closed at 3,385 yuan/mt.

[Domestic Iron Ore Brief: Tangshan Area Iron Ore Concentrates Prices May Edge Up Slightly] Market prices for domestic ore in the Tangshan area have been relatively stable, with 66 grade iron ore concentrates dry basis including tax at a delivery-to-factory price of 980-990 yuan/mt. As most local mines are currently shut down, producers are not engaging in significant transactions, and some are maintaining high asking prices without urgency to sell; steel mills are mainly purchasing as needed.

Today, the iron ore futures were in the doldrums, with the most-traded I2601 contract closing at 776.5, down 0.7% from yesterday's price. Traders sold goods according to market conditions; steel mills purchased as needed, with moderate inquiries.

[SS futures fluctuate rangebound, spot stainless steel prices stabilize due to lack of upward momentum] SMM reported on August 27 that SS futures showed a stable fluctuating trend. As macro news was gradually digested, the impetus for further gains in SS futures weakened, with prices oscillating around 12,850 yuan/mt during the day. In the spot market, although the peak September-October season is approaching and both nickel and chromium procurement prices have risen, SS futures remained steady. Spot transactions were moderate recently, but downstream acceptance of higher prices was limited, leading to stable quotes from spot traders and a lack of upward momentum. On the futures side, the most-traded 2510 contract fluctuated. At 10:30 am, SS2510 was quoted at 12,890 yuan/mt, up 30 yuan/mt from the previous trading day. The spot premiums and discounts for 304/2B in Wuxi ranged between 330-480 yuan/mt. In the spot market, Wuxi cold-rolled 201/2B coils were quoted at 8,100 yuan/mt; cold-rolled 304/2B coils, with an average price of 13,125 yuan/mt in Wuxi and 13,125 yuan/mt in Foshan; cold-rolled 316L/2B coils, 25,675 yuan/mt in Wuxi and 25,675 yuan/mt in Foshan; hot-rolled 316L/NO.1 coils, 25,100 yuan/mt in both regions; and cold-rolled 430/2B coils, 7,400 yuan/mt in both Wuxi and Foshan. Last week, SS futures continued to decline, erasing all gains made this month...

[Domestic Iron Ore Brief: Iron ore concentrates prices in west Liaoning may continue to fluctuate] The domestic ore market in west Liaoning is relatively sluggish. Currently, the ex-factory price of 66-grade iron ore concentrates on a wet basis without tax is 720-730 yuan/mt. Traders are cautious, and mines and beneficiation plants as a whole are holding firm on their asking prices, unwilling to sell at lower prices, leading to a slight standoff between buyers and sellers. On the demand side, steel mills are mostly operating according to plan with no maintenance plans.