[SMM Cast Aluminum Alloy Morning Comment: Contract Hits New Stage High, Aluminum Alloy Market Consolidates at Highs, Drifting Higher] Overnight, the aluminum alloy 2610 contract opened at 23,435 yuan/mt, shot up to 23,540 yuan/mt, hitting a new stage high, then pulled back to a low of 23,380 yuan/mt, and closed at 23,450 yuan/mt, up 20 yuan, or 0.09%, from the settlement price.

[China's Aluminum Inventory Pullback, Multiple Factors in Play, Aluminum Prices Drift Higher] Overall, recently the macro front has improved, the US Fed's near-term hold on rate hikes has eased the marginal constraint on the non-ferrous metals sector, and China's proportion of liquid aluminum continues to rise while aluminum inventory destocking has resumed, together underpinning aluminum prices. However, the continuous rollout of long-term aluminum capacity outside China, weak traditional end-use demand in China during the off-season, and the recent easing of geopolitical tensions in the Middle East are putting some upward pressure on aluminum prices. It is expected that aluminum prices will maintain a trend of consolidating on a strong note.

Today, the DCE iron ore futures trended higher today. DCE’s most-traded I2609 contract closed at 706 yuan/mt, up 0.93% from the previous trading session. Spot prices at Qingdao Port rose 3–8 yuan/mt from the prior trading day. Traders quoted actively, while steel mills purchased as needed, leaving overall spot trading moderate.

Iron ore futures trended strong today. The most-traded DCE I2609 contract closed at 706 yuan/mt, up 0.93% from the previous trading session. Spot prices at Qingdao Port rose 3-8 yuan/mt from the prior trading day. Traders offered actively, steel mills purchased as needed, and overall spot cargo transactions were mediocre. The latest SMM survey data showed blast furnace operating rates at steel mills at 89.04%, up 0.11 percentage point WoW. Blast furnace capacity utilization rate was 88.80%, down 0.1 percentage point WoW. Daily average hot metal production at sampled steel mills stood at 2.4058 million mt, down 2,900 mt WoW. With increased steel mill maintenance, pig iron production is expected to edge down next week. Yet the maintenance cycles are short, keeping near-term iron ore demand relatively stable. In news, as the false invoice incident continues to unfold, credit institutions are expected to tighten risk exposure, potentially hampering near-term iron ore trade liquidity. On balance, ore prices are likely to consolidate in the short run.

[SMM Daily Review: Aug 5 Spot Lithium Carbonate Prices Consolidate Higher] Today, SMM battery-grade lithium carbonate spot price consolidated higher compared to the previous trading day. The lithium carbonate 2609 contract opened lower at 139,700 yuan/mt, briefly dipped to 138,300 yuan/mt after opening and then found support, with bulls stepping in to push prices to consolidate and rebound; in the morning session, prices fluctuated on the strong side in the 140,000-142,000 yuan/mt range, and the center gradually moved higher despite some back-and-forth; near midday, bulls and bears consolidated in a tug-of-war in the 141,500-142,500 yuan/mt range; in the afternoon, bulls continued to push, and prices consolidated higher; near the close, concentrated capital inflows drove prices quickly up to 144,300 yuan/mt, hitting an intraday high, then pulled back slightly on some profit-taking, settling around 143,200 yuan/mt, finally closing up 2.61% at 143,200 yuan/mt. Open interest decreased by 9,640 lots. In the spot market, downstream buyers purchased as needed on dips. Some downstream buyers saw increased spot order demand as upstream lithium chemical plants' maintenance reduced long-term contract volumes; upstream lithium chemical plants remained cautious in selling spot cargoes, with those having maintenance plans focusing on securing long-term contract supplies this month, while some lithium chemical plants showed signs of loosening their intent to hold prices firm. Overall, market inquiries and actual transactions were relatively stable.

[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...