**[SMM Daily Hot-Rolled Coil Transactions]** On November 11, the total daily volume of hot-rolled coil transactions among the sample enterprises in the four SMM cities (Shanghai, Lecong, Tianjin, and Ningbo) amounted to 11,040 tonnes, marking a daily decrease of 1,260 tonnes or -10.2% compared to the previous day. The futures market experienced volatile weakness as stimulus policies fell short of expectations, leading to an increase in the influence of fundamental factors. Coupled with the market entering its traditional off-season, downstream buyers mostly made purchases on an as-needed basis with low willingness to replenish inventories, resulting in weaker hot-rolled coil transactions.

According to SMM's imported ore cost-profit statement, profits from imported ore have increased slightly. As of September 6, the total inventory of 35 ports tracked by SMM amounted to 150.72 million tons, an increase of 250,000 tons month-on-month and 35.05 million tons year-on-year. Recently, iron ore prices have continued to decline sharply, coupled with the low inventory of steel mills, which have a certain demand for restocking. The average daily volume of imported ore discharged from ports has increased by 50,000 tons month-on-month to 2.919 million tons. Steel mill profits have recovered recently, accelerating the pace of blast furnace resumption; coupled with the restocking before the Mid-Autumn Festival, it is expected that iron ore demand will rebound next week, and fundamentals will continue to improve. However, considering the intensified market concerns about economic recession, the market atmosphere is relatively sluggish, and the apparent demand for steel is weak. It is expected that iron ore prices will have difficulty rebounding significantly in the short term and may continue to show a weak and volatile trend. It is expected that the profits from imported ore may decline slightly.

According to the SMM imported ore cost-profit statement, the profits of imported ore basically remained flat on a week-on-week basis compared to last Friday; as of August 30, the total inventory of 35 ports tracked by SMM reached 150.47 million tons, an increase of 3.34 million tons from the previous week and 32.27 million tons year-on-year; the average daily volume of iron ore unloaded from ports was 2.87 million tons, a decrease of 30,000 tons from the previous week and 150,000 tons year-on-year. Recently, iron ore prices have started to rebound, putting pressure on steel mill profits, with most steel mills adopting a demand-based procurement strategy, leading to a slight decline in the volume of iron ore unloaded from ports. The port inventory has once again increased significantly, suppressing the rise in iron ore prices. However, considering the expected improvement in future terminal demand, iron ore demand may increase, and it is expected that iron ore profits will have some room for upside in the short term.

[SMM Daily Hot Rolled Coil Transactions] On August 28, the total daily volume of hot rolled coil transactions among sample enterprises in SMM's four cities (Shanghai, Lecong, Tianjin, and Ningbo) amounted to 12,550 tonnes, with a daily decline of 2,020 tonnes or 13.9% compared to the previous day. Futures prices fluctuated, triggering renewed market uncertainty and caution, leading downstream terminals to mainly procure on an as-needed basis, resulting in average transaction volumes of hot rolled coils.

In the first quarter of 2024, LME trading volume increased significantly, with the average daily total volume of futures contracts increasing by 31% compared to the same period last year, and the total open interest (MOI) increasing by 21% compared to the same period last year. Among them, lead saw the most significant growth in trading volume, with an average daily volume of 83,000 contracts in March 2024, up 48% from the same period last year. The average daily volume of nickel contracts increased by 75%, and the total open interest (MOI) increased by 47% compared to the same period in 2023. Among them, options trading also hit a five-year high.

The London Metal Exchange has lost its benchmark status in a key part of the nickel market since last year’s massive short squeeze, according to one of the biggest producers.