Today, futures consolidated on a subdued note, closing at 2,976, down 1.23% from the previous trading session. Spot side, in the morning, most market quotes fell, with prices declining 10-30 yuan/mt. In the afternoon, futures continued to consolidate on a weak note, with some markets following with a drop of 10-20 yuan/mt. Overall, transactions were mediocre to weak. Fundamentals, supply side, currently, most steel mills had comprehensive per-ton steel margins below the break-even line, and mills gradually arranged maintenance on blast furnaces and associated construction steel rolling lines or reduced production loads; EAF steel mills further reduced operating hours. Demand side, futures fell below the 3,000-point level, market confidence was notably weak, with many adopting a wait-and-see attitude, and trading sentiment was mediocre. Meanwhile, due to sustained high temperatures in many areas, the pace of outdoor housing construction was hindered, and end-user rigid procurement demand was weak. Overall, in the short term, the supply-demand dual weakness pattern remained unchanged, and construction material prices might continue to consolidate at lows.

[SMM Daily Comment: Spot Lithium Carbonate Fell Steadily on Aug 3] The SMM spot price of battery-grade lithium carbonate fell steadily today from the previous working day. The lithium carbonate 2609 contract opened low at 137,500 yuan/mt today, then fluctuated lower and dipped quickly, hitting a low of 135,600 yuan/mt; subsequently, bulls stepped in to push prices to a choppy rebound, and the morning session saw fluctuations around the average price line; near midday, bulls concentrated their strength, prices quickly surged past 140,000 yuan/mt and shot up to 140,800 yuan/mt; in the afternoon, faced with bearish selling pressure and profit-taking, prices consolidated and pulled back, and near the close, moved sideways in the 138,800-139,000 yuan range, finally settling down 1.15% at 138,900 yuan/mt, with open interest decreasing by 3,474 lots. In the spot market, coinciding with the first working day of the month, downstream material plants gradually received long-term contract and customer-supplied shipments. Spot order purchases were cautious, only purchasing as needed when prices were relatively low; upstream lithium chemical plants continued to hold prices firm for spot sales, mainly relying on long-term contracts and additional contract volumes to ensure supply at the beginning of the month. Overall, market inquiries and actual transaction activity decreased.

SMM August 3 news: Futures saw a sharp drop today, and spot aluminum in South China barely held steady. Among the three major consumption areas, only Foshan remained in a destocking cycle. The breakdown of absolute prices to new lows instead prompted holders to generally hold back from selling and be unwilling to make shipments at low levels. However, cash-in needs combined with bearish sentiment exerted dual pressure, and some sellers still opted for shipments at slight discounts, acting as a drag. Mainstream quotations were at discounts of -10 to 0 yuan/mt, and cargo availability increased somewhat. On the demand side, downstream buyers mainly engaged in steady buying at lows, showing no willingness to increase volumes amid the decline. Traders also merely took low-priced cargoes at a steady pace to fulfill orders. While demand provided bottom support, it lacked upward momentum. Both supply and demand sides were weak in momentum, and intraday trading was tepid. Spot transactions were mainly at premiums of 80 to 120 yuan/mt over the SHFE aluminum 2608 contract.

South Korean steelmaker POSCO is preparing an anticircumvention complaint against imports of Malaysian stainless CRC and is working with the Korea Trade Commission to finalize the investigation scope and supporting evidence. The filing could be submitted between late August and early September. The review will focus on products processed in Malaysia using raw materials from origins already subject to South Korean antidumping measures, including China, Indonesia and Taiwan. If circumvention is confirmed, imports arriving after the investigation begins could face retroactive antidumping duties.

SMM August 3 The futures closing price at 11:30 today was 105,830 yuan/mt, up 170 yuan/mt from the previous trading day. The average spot premiums were 280 yuan/mt, up 20 yuan/mt from the previous trading day. Secondary copper raw material prices rose 100 yuan/mt from the previous trading day today. The secondary copper raw material sales sentiment index increased to 2.52, and the procurement sentiment index rose to 2.01. The price difference between copper cathode and copper scrap was 3,455 yuan/mt, down 1,068 yuan/mt from the previous trading day. The price difference between copper cathode rod and secondary copper rod was 1,630 yuan/mt. According to SMM survey, copper prices surged in late trading, transactions in the secondary copper raw material market were very few throughout the day. Under high copper prices, demand for tax-unpaid copper scrap remained unable to trade on a large scale due to policy issues, while tax-paid copper scrap remained the market's "hot commodity." Scrap utilization enterprises indicated that restrictions on "reverse invoicing" are expected to be gradually lifted in the Jiangxi region, and some enterprises have already resumed production.

SMM, August 3: Lead futures prices consolidated on a subdued note, and the tug-of-war between longs and shorts continued. Upstream, some secondary lead smelters held prices firm and held back from selling, sticking to their quotes and unwilling to lower them, with extremely poor willingness to sell. Downstream enterprises were cautious in procurement; with reference to the primary lead price ratio, their intended purchase price for secondary refined lead was at a discount of 100 yuan/mt to the SMM #1 lead average price on an ex-factory basis. The price spread between secondary refined lead and primary lead continued to narrow, revealing the price disadvantage of secondary lead. Actual transactions in the market were limited, with most deals remaining at indicative prices. Short-term market trends followed the fluctuations of futures. The supply-demand stalemate was difficult to break quickly, and trading remained sluggish. Today, the SMM average price for secondary refined lead was reported at 15,225 yuan/mt, at a discount of 25 yuan/mt to the SMM #1 lead average price. The supplier selling sentiment was 0.54, and the purchase sentiment for secondary refined lead today was 1.78 (historical data can be accessed by logging into the database).