Global Economic Data Under Pressure, Stainless Steel Market in Turbulence

Overseas Macro Environment The U.S. government's preliminary benchmark revision has unveiled significant weakness in the labor market. For the year ending March, nonfarm payrolls were revised down by 911,000 jobs, averaging 76,000 fewer gains per month. This marks the steepest downward adjustment since 2000, well beyond market expectations, and has reignited concerns over the resilience of the U.S. economy. With August PPI figures due, investors are closely monitoring inflation trends and demand outlooks to gauge potential shifts in Federal Reserve policy.

China's Equity Market China's stock indices continue to trade within a wide consolidation range, as the market works through supply overhang by exchanging time for stability. Despite heightened short-term volatility, the medium- to long-term outlook remains constructive, suggesting limited downside risk. For investors, deploying derivatives such as options and futures for hedging remains a prudent strategy during this phase. Macro focus is also directed toward China’s August inflation data, which will provide critical signals on policy flexibility and domestic demand recovery.

Stainless Steel Market Developments The stainless steel futures market experienced a volatile session yesterday. After an initial stalemate, futures were pushed higher by Tsingshan's nickel pig iron tender at 955, supported by raw material costs, firm price stances from mills, stronger dealer incentives, and ongoing production upgrades. The market climbed sharply but soon encountered resistance, moving into sideways consolidation before slipping into negative territory by the evening.

The spot market, meanwhile, remained buoyed by favorable sentiment. Delong opened steady, with mills holding firm on pricing. However, as futures retreated from their intraday highs, morning transactions were concentrated at elevated levels, while afternoon trading reflected increasing volatility. Although fundamentals continue to offer support, the divergence between bullish signals and shifting price momentum suggests caution. Monitoring liquidity flows and inventory dynamics will be key in the near term.

Conclusion Overall, the downward revision of U.S. labor data underscores rising global risks, while China's markets are in a phase of adjustment rather than decline. Stainless steel prices remain caught between cost support and uncertain demand, leaving volatility as the dominant theme. Market participants should balance long-term optimism with disciplined use of risk management tools to navigate short-term fluctuations.