Core Insights - The stainless steel market is experiencing price increases, with spot prices for 304 cold-rolled steel rising by 100 yuan/ton in Wuxi and Foshan, indicating a recovery in both speculative and end-user demand, although primarily driven by essential orders [1][3] - Nickel ore prices remain stable, with significant transactions occurring for 1.3% nickel ore at FOB32 and CIF42, reflecting a slight increase in domestic nickel ore prices [1][3] - Domestic stainless steel production is projected to increase, with an estimated output of 330.41 million tons in August, marking a month-on-month rise of 2.29% [1] Raw Materials - Nickel ore market is stable, with 1.3% nickel ore transactions primarily at FOB32 and CIF42, showing a month-on-month increase [1] - Nickel iron prices are showing a slight upward trend, with major steel mills quoting around 940 yuan/nickel, indicating a recovery in production profits [1][3] - Chrome ore prices are expected to remain strong due to cost support from chrome ore suppliers [1] Supply - The estimated crude steel output from 43 domestic stainless steel mills is 330.41 million tons for August, a 2.29% increase month-on-month but a 1.64% decrease year-on-year [1] - The production of the 300 series is expected to reach 175.98 million tons, reflecting a 3% month-on-month increase and a 4.4% year-on-year increase [1] Inventory - Social inventory is decreasing slowly, with a slight increase in warehouse receipts; as of August 22, social inventory for the 300 series in Wuxi and Foshan is 50.44 million tons, up by 0.8 million tons week-on-week [2] - Stainless steel futures inventory increased to 118,640 tons as of August 21, up by 15,119 tons week-on-week [2] Market Dynamics - The stainless steel market is showing strength with rising prices and improved transaction volumes, driven by both speculative and end-user demand, although the overall demand remains weak [3] - The macroeconomic environment is supportive, with expectations of interest rate cuts from the Federal Reserve and easing export pressures from US-China tariff negotiations [3] - Despite improved production profits for steel mills, the overall demand from traditional downstream sectors remains weak, leading to cautious market sentiment [3]