Finland-based stainless steel producer Outokumpu has awarded Primetals Technologies an order to upgrade a ladle treatment stand at its Calvert, Alabama plant to a 180mt twin ladle furnace, with startup scheduled for March 2028. Replacing equipment commissioned in 2012, the new furnace will provide electrical heating following the AOD converter, improving temperature control, process flexibility, and productivity while reducing energy consumption and carbon footprint, utilizing the existing plant layout and foundations. The scope covers mechanical and electrical equipment, automated argon lancing, hydraulic systems, Level 1 automation, and the Primetals Melt Expert electrode control system. Outokumpu's Calvert facility currently melts up to 100% stainless steel scrap in a 160mt electric arc furnace before processing in a 180mt AOD converter.

[7.21 Morning Briefing] US media reports: US-Iran conflict intensifies, the Pentagon is accelerating the deployment of F-16 and F-35 fighter jets to the Middle East. Advisor to Iran’s Supreme Leader: If US forces continue operations, Iran may shift to a full-scale offensive. The most-traded SHFE nickel 2609 contract surged in early trading then pulled back slightly, and as of the morning close, it reported 130,720 yuan/mt, down 0.13%. As the US-Iran conflict escalates, shipping restrictions in the Strait of Hormuz have strengthened sulfur cost support. However, refined nickel inventories remain difficult to reduce. Both domestic and international inventories are still at high levels, and the destocking speed is slow. In the short term, the price of the most-traded SHFE nickel contract is expected to trade within the range of 125,000-130,000 yuan/mt.

[7.2 Morning Meeting Minutes] Iran claims the Strait of Hormuz will not reopen under US pressure; meanwhile, according to foreign media reports, Iran has secretly ordered the Houthis to blockade the Bab el-Mandeb Strait if the US attacks power facilities. The most-traded SHFE nickel 2609 contract plunged sharply in early trading, closing the morning session at 129,450 yuan/mt, down 1.14%. Bullish macro, policy, and cost-side factors, combined with strengthening technicals, give nickel prices rebound momentum, but weak demand and high inventories continue to cap the upside room. In the short term, the most-traded SHFE nickel contract is expected to trade in the range of 127,000-133,000 yuan/mt.

[SMM Analysis] Futures Recovery Lifts Finished Steel, Raw Materials Drift Lower, Expanding Steel Mill Profits This week, stainless steel finished product prices and production costs drifted higher in tandem, with finished steel gains outpacing the overall performance of raw materials, driving a WoW expansion in steel mill smelting profits. Based on 304 cold rolling calculations, the profit margin stood at 2.39% using current raw material costs and 1.07% using inventory costs this week, with spot profitability resilience having achieved a clear recovery. Nickel-based raw materials: High-grade NPI prices generally grinded lower and pulled back this week, as a futures rebound and spot purchases formed a pronounced tug-of-war. During the week, SHFE nickel and SS futures both consolidated higher in tandem. Upstream smelters and traders showed relatively ample willingness to hold prices firm, but downstream stainless steel mills held relatively cautious expectations for the off-season outlook, with weak sentiment in raw material procurement and the strategy of pushing for lower prices continuing to be implemented. No concentrated restocking demand was released in the market, and the NPI price center shifted lower amid the tug-of-war between longs and shorts. As of this Friday, the domestic arrival tax-inclusive price of Indonesian high-grade NPI with 10-12% Ni content fell 4.5 yuan per nickel unit to 1,132.5 yuan per nickel unit. Stainless steel scrap prices rose with relative strength this week, supported by the futures recovery, displaying characteristics of strong resilience but limited gains. Driven by stronger SS futures, market sentiment for scrap recovered somewhat. Moreover, stainless steel scrap still held a stable cost-competitive substitution advantage over the weaker NPI, providing bottom support for prices. However, the market is currently in the traditional consumption off-season, with weak end-user rigid demand curbing overall demand for finished steel. Coupled with tight availability of tax invoices for stainless steel scrap and steel mills continuously pushing for lower purchase prices, market trading activity was restrained, making it difficult for prices to open upside room...

[SMM Stainless Steel Scrap Weekly Review] Futures Strength Drives Scrap Uptick; Off-Season Demand Keeps Gains in Check This week, 304 stainless steel scrap off-cuts prices in east China rose, with a quotation range of 10,200-10,300 yuan/mt; in Foshan, 304 scrap off-cuts prices also moved up, in the range of 10,100-10,400 yuan/mt. From the raw material cost side, producing stainless steel entirely from stainless steel scrap currently costs about 14,351.25 yuan/mt, while using high-grade NPI would cost as much as 14,947.08 yuan/mt—the two still maintain a sizable cost spread. Stainless steel scrap prices edged up this week. During the week, SS futures strengthened overall, and bullish sentiment from futures flowed through to the spot market, nudging up spot prices for stainless steel finished products in tandem. Although steel mills still retained a desire to bargain down prices for raw material procurement, and the substitute raw material high-grade NPI prices continued to be in the doldrums, leaving overall raw material support moderate, stainless steel scrap followed the pace of the spot strength in finished products, moving up in sync and generally holding up well. This week high-grade NPI prices were in the doldrums, which narrowed the economic advantage of stainless steel scrap over it, but the scrap still maintained a significant edge, effectively supporting scrap prices and leaving little room for a steep decline. However, the market is currently in the traditional stainless steel consumption off-season, with downstream end-use demand staying weak. Coupled with the not-yet-resolved issue of tight tax invoices in the industry, these two bearish factors continue to suppress market trading activity. Overall demand growth for stainless steel scrap was limited, and the upside momentum in the market was capped. In summary, ...

[7.17 Morning Meeting Minutes] US June PPI declined 0.3% MoM, the first drop since last year, while market expectations were for a flat reading; June PPI rose 5.5% YoY, significantly narrowing from the 6.5% in May; June core PPI YoY growth slowed to 4.7%, with only a 0.2% MoM increase, both below market expectations. On July 16, the most-traded SHFE nickel contract surged in early trading, breaking through 130,000 yuan/mt and briefly hitting 133,000 yuan/mt, with a morning gain of 2.9%; LME nickel simultaneously held above $17,000/mt, rising about 2.5% in early trading. Recently, macro, policy, and cost-side positives re-emerged. Combined with a MACD golden cross, nickel prices holding above the 10-day moving average, and bearish funds taking profits, nickel prices have rebound momentum. However, weak demand and high inventory continue to cap upside room. The most-traded SHFE nickel contract is expected to trade within a 127,000–137,000 yuan/mt range. Going forward, attention will focus on the results of Indonesia's July RKAB quota approval and the situation in the Strait of Hormuz.

[SMM Stainless Steel Daily Review] SHFE Nickel Drives SS Futures Higher; Spot Stainless Steel Follows Gains, Downstream Purchases Remain Cautious According to SMM on July 16, SS futures showed an overall rising and probing pattern. Driven by SHFE nickel strength, SS simultaneously climbed and probed higher. As of the close, the most-traded SS contract settled at 14,795 yuan/mt. In the spot market, although SS futures were relatively stable in the morning and spot offers held steady accordingly, they surged rapidly in the afternoon following SHFE nickel's sharp rise, and spot offers rose in tandem. Despite rapid price fluctuations, downstream end-users remained cautious in purchasing, but low-priced cargoes in the market were basically gone. SS most-traded contract: At 10:15 a.m., SS2608 was at 14,665 yuan/mt, down 5 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi were in the range of 255-605 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coils in Wuxi was flat; for cold-rolled mill edge 304/2B coils, the average price in Wuxi was unchanged and Foshan's average price held steady; cold-rolled 316L/2B coil prices in Wuxi were flat; hot-rolled 316L/NO.1 coil quotes in Wuxi were unchanged; and cold-rolled 430/2B coils in both Wuxi and Foshan were flat. This week, macro fund disturbances intensified, and stainless steel futures followed an independent weak trajectory, with the futures movement clearly diverging from SHFE nickel and other nonferrous metals. During the week, fund sentiment switched repeatedly, driving wild swings in SS futures. The key support level of 14,500 yuan/mt was breached earlier, and the overall trend center continued to shift lower, with overall market trading sentiment leaning bearish. Spot and...

[7.16 Morning Meeting Minutes] US June CPI rose 3.5% YoY, compared to the expected 3.8% increase and the previous 4.2% rise. US June CPI fell 0.4% MoM, versus the expected 0.1% decline and the previous 0.5% increase. After the release of US June CPI data, traders pushed back their expectations for US Fed interest rate hikes to October. The most-traded SHFE nickel 2609 contract drifted lower in morning trading, closing down 0.43% at 128,870 yuan/mt at the end of the morning session. US inflation cooled significantly in June, with the unadjusted core CPI rising 2.6% YoY, below the expected 2.8% and the previous 2.9%. The cooling inflation further pushed back market expectations for US Fed rate hikes, and the US dollar extended its decline. In the short term, nickel prices may see a rebound, with the most-traded SHFE nickel contract price range between 127,000-133,000 yuan/mt.

Finland-based stainless steel producer Outokumpu has awarded Primetals Technologies an order to upgrade a ladle treatment stand at its Calvert, Alabama plant to a 180mt twin ladle furnace, with startup scheduled for March 2028. Replacing equipment commissioned in 2012, the new furnace will provide electrical heating following the AOD converter, improving temperature control, process flexibility, and productivity while reducing energy consumption and carbon footprint, utilizing the existing plant layout and foundations. The scope covers mechanical and electrical equipment, automated argon lancing, hydraulic systems, Level 1 automation, and the Primetals Melt Expert electrode control system. Outokumpu's Calvert facility currently melts up to 100% stainless steel scrap in a 160mt electric arc furnace before processing in a 180mt AOD converter, with two ladle treatment stands and a single-strand slab caster.

[SMM Stainless Steel Daily Review] SS short-term maintains a relatively stable consolidation pattern; stainless steel spot prices stable, end-users cautiously wait and see On July 15, SMM reported that SS futures showed a relatively stable consolidation pattern. SS futures pulled back in the night session, but after the morning open, the decline was partially recovered, then moved sideways until the close, with the most-traded SS contract settling at 14,595 yuan/mt. Spot market side, demand was in the off-season, and recent volatility intensifies in SS futures with no clear directional guidance, so downstream end-users held a strong wait-and-see sentiment, overall transactions were sluggish; spot prices were largely stable, with only some traders under shipment pressure occasionally releasing low-priced goods. SS futures most-traded contract. At 10:15 a.m., SS2608 reported at 14,660 yuan/mt, up 120 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi area were in the 260-610 yuan/mt range. In the spot market: Wuxi cold-rolled 201/2B coil average flat; cold-rolled raw edge 304/2B coil (Wuxi +25 yuan/mt, Foshan flat); Wuxi cold-rolled 316L/2B coil -100 yuan/mt; hot-rolled 316L/NO.1 coil, Wuxi flat; cold-rolled 430/2B coil, both flat. This week, macro liquidity disturbances intensified, stainless steel futures moved independently with a weak trend, and futures noticeably deviated from the pace of SHFE nickel and other nonferrous metals. During the week, capital sentiment switched frequently, driving SS futures into wild swings, earlier 14,500...