Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - For nickel, on September 2nd, the Shanghai nickel main - contract first rose then declined, with reduced trading volume and open interest. The spot market had weak trading, and basis premium widened. The supply side saw stable nickel ore prices, decreased nickel ore arrivals last week, and increased port inventories. Ferronickel plant losses narrowed, with increased domestic and Indonesian production and decreased ferronickel inventory. In September, domestic electrolytic nickel production increased, and export profitability shrank. The demand side had reduced ternary production, increased stainless - steel mill production, and stable alloy and electroplating demand. Considering inventory changes and external factors like the Fed's interest - rate cut expectations and Indonesian unrest, nickel prices are expected to fluctuate widely. It is recommended to wait and see [2]. - For stainless steel, on September 2nd, the stainless - steel main - contract fluctuated at a high level, with reduced trading volume and open interest. The spot market had better low - price trading, and basis premium decreased. The inventory in the Shanghai Futures Exchange increased, and the social inventory of 300 - series stainless steel decreased last week. The supply side will see increased stainless - steel production in September. The demand side has weak terminal demand, while the cost side has rising high - grade ferronickel and high - carbon ferrochrome prices. Given the large impact of macro - sentiment, although the fundamentals are loose, cost provides support, so stainless - steel prices are expected to fluctuate within a range. It is also recommended to wait and see [2]. 3. Summary by Related Content Nickel Market - **Futures Market**: The closing prices of nickel futures contracts (near - month, continuous - one, continuous - two, continuous - three) decreased compared to the previous day. The trading volume of Shanghai nickel decreased by 43,115 hands to 128,782 hands, and the open interest decreased by 1,201 hands to 90,762 hands. The LME 3 - month nickel price fell 1.29%. The price difference between near - month and far - month contracts and the basis between spot and futures changed [2]. - **Spot Market**: The average prices of various nickel products (nickel beans, electrolytic nickel, ferronickel, etc.) mostly decreased. The premium of 1 Jinchuan nickel to the Shanghai nickel contract decreased, while the premium of 1 imported nickel (Russian nickel) remained stable [2]. - **Inventory**: The inventory in the Shanghai Futures Exchange increased, the LME nickel inventory increased, the social inventory of pure nickel decreased by 1,402 tons, and the inventory in the Shanghai bonded area remained unchanged [2]. - **Industry News**: In August, the wholesale sales of new - energy passenger vehicles in China reached 1.3 million, a year - on - year increase of 24%. Greenmei stated that its nickel project in Indonesia was operating normally without being affected by local unrest. The Indonesian nickel ore association reported that the nickel price in this cycle decreased compared to the previous one, with the September 1st nickel ore reference price (HMA) set at $14,999.64 per kiloton, lower than the previous cycle. Some nickel products' prices showed different trends, with the MHP price rising significantly [2]. Stainless - Steel Market - **Futures Market**: The closing prices of stainless - steel futures contracts (near - month, continuous - one, continuous - two, continuous - three) had different changes. The trading volume of the Shanghai stainless - steel main - contract decreased by 34,264 hands to 130,629 hands, and the open interest decreased by 9,528 hands to 91,035 hands [2]. - **Spot Market**: The average prices of various stainless - steel products (304 series, 316 series, etc.) had different changes, with some prices rising and some remaining stable. The basis between the 304/2B coil (Wuxi) average price and the active contract decreased by 10 [2]. - **Inventory**: The inventory in the Shanghai Futures Exchange increased, and the social inventory of stainless - steel decreased by 3,200 tons. Among them, the inventory of 200 - series stainless steel increased by 2,400 tons, the inventory of 300 - series decreased by 3,300 tons, and the inventory of 400 - series decreased by 2,300 tons [2]. - **Supply and Demand**: In September, stainless - steel production is expected to increase, but terminal demand is weak. The cost side has rising high - grade ferronickel and high - carbon ferrochrome prices [2].