SMM, August 19 – Intraday, the SHFE lead 2610 contract swung wildly, opening at 15,950 yuan/mt, briefly dipping to the day’s low of 15,870 yuan/mt before rebounding, then moving sideways in the range of 15,905-15,935 yuan/mt, and finally closing at 15,930 yuan/mt, up 25 yuan/mt from the previous trading day’s closing price, a gain of 0.16%. Total trading volume for the day was 64,045 contracts, an increase of 16,920 contracts from the previous trading day, while open interest decreased by 207 contracts to 79,974 contracts. The SMM #1 lead average price also rose 25 yuan/mt, with futures and spot prices moving largely in sync. Downstream demand was dominated by just-in-time procurement. Primary lead suppliers sold at market prices, with a clear north-south divergence; secondary lead suppliers also sold at market prices, but circulating supply was limited. Overall, in the short term, SHFE lead continues to consolidate at highs, drifting higher. Going forward, attention should be paid to the improvement in spot transactions between the north and south, the impact of smelter operating rate changes on inventory, and changes in fund open interest for the SHFE lead 2610 contract.

Iron ore futures traded firmer today. The DCE most-active contract I2701 settled at RMB 712/mt, up 0.78% from the previous trading day. Spot prices at Qingdao Port declined by RMB 2-3/mt. Traders were reasonably active in offering, but mill purchases remained largely restocking on a just-in-need basis, leaving overall spot transactions fairly subdued.

[SMM Stainless Steel Daily Review] SS Futures Weaken, Spot Stainless Steel Transactions Mediocre, Awaiting Peak Season Validation SMM, August 19 – SS futures maintained a subdued consolidation trend. Dragged lower by the broad decline in nonferrous metals, SS prices pulled back in tandem. As of the close, the most-traded SS contract settled at 14,260 yuan/mt. In the spot market, although SS futures pulled back somewhat, the overall decline was relatively small. Stainless steel traders mostly held their offers steady, with only occasional small discounts. Overall transactions remained sluggish, showing no signs of recovery ahead of the “September-October peak season.” The Most-Traded SS Futures Contract. At 10:15 a.m., SS2610 was at 14,260 yuan/mt, up 25 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi were in the 410-610 yuan/mt range. In the spot market, the average price of Wuxi cold-rolled 201/2B coil was steady; for cold-rolled 304/2B coil with mill edge, Wuxi average price was flat, Foshan average price was flat; the price of Wuxi cold-rolled 316L/2B coil fell by 100 yuan/mt; for hot-rolled 316L/NO.1 coil, Wuxi quotation was flat; cold-rolled 430/2B coil in both Wuxi and Foshan was flat. This week, stainless steel futures were continuously disturbed by macro sentiment, maintaining an overall weak pullback trend. During the week, news on Indonesia’s RKAB nickel ore approval repeatedly disrupted industry expectations. Coupled with the hawkish tone of the US Fed’s policy stance and the unresolved US-Iran geopolitical conflict, macro uncertainty stayed high. Multiple bearish factors dragged SS futures down continuously throughout the week, with bearish sentiment dominating the market and futures movement...

[ADC12 Daily Price Review: Aluminum Alloy Futures Consolidate and Pull Back, Spot Prices Generally Fall] The ADC12 market price was generally weak today, with most enterprises cutting prices by around 100 yuan/mt, while a few temporarily maintained stability.

Today, spot #1 copper cathode in North China against the front-month contract was quoted at premiums ranging from 50 yuan/mt to 250 yuan/mt, with the average premium at 150 yuan/mt, unchanged from the previous trading day. The average transaction price was 106,870 yuan/mt, down 935 yuan/mt from the prior session;

Global coal markets generally strengthened over the past week, although performance varied across regions and grades. European thermal coal indices rose above $124/t, supported by firmer oil and gas prices, geopolitical risks and weaker renewable and nuclear generation during the heatwave. South African 6,000 kcal/kg high-CV coal exceeded $109/t, with additional support from Indian enquiries and a 12 August train derailment that disrupted deliveries to Richards Bay Coal Terminal. China’s Qinhuangdao 5,500 NAR spot price strengthened above $126/t. Coal stocks at nine major ports declined by 0.87 mnt week on week to 26.51 mnt, while inventories at six major coastal thermal power plants fell by 0.25 Mt to 14.01 Mt. Lower inventories and tighter mine safety inspections supported domestic prices and increased Chinese traders’ interest in imported blending coal. Indonesian 5,900 GAR coal rose to $104.5/t, while 4,200 GAR material approached $64/t. Australian thermal coal prices were mixed, with 6,000 high-CV coal falling below $128/t while 5,500 mid-CV material strengthened to $95–96/t. Meanwhile, limited availability of premium metallurgical coal, renewed purchasing and improved Chinese market sentiment lifted the Australian HCC index to $224/t.