China stainless steel futures jump amid output cuts, robust nickel prices

1 year ago 158

Chinese stainless steel futures surged more than 4% on Tuesday, boosted by tight supply hopes as producers cut production

China | stainless steel industry | China economy

Reuters  |  Beijing 

Chinese stainless steel futures surged more than 4% on Tuesday, boosted by tight supply hopes as producers cut production, while strong raw material nickel prices also offered support.

"Domestic stainless steel firms are stepping up maintenance in the first quarter, while affected by the Spring Festival holidays and Beijing Winter Olympics; overall production is expected to be limited," analysts with Jinrui Futures wrote in a note.

Meanwhile, stainless steel is also underpinned by nickel prices cue to tight spot cargoes, a Huatai Futures note showed.

The most-actively traded stainless steel contract on the Shanghai Futures Exchange, for February delivery, jumped 4.3% to 17,745 yuan ($2,785.41) per tonne as of 0330 GMT.

Other steel prices on the Shanghai bourse also gained.

Construction used steel rebar, for May delivery, inched 0.3% higher to 4,512 yuan a tonne.

Hot rolled coils futures, used for cars and home appliances, edged up 0.3% to 4,657 yuan per tonne.

The China Iron and Steel Association said on Monday China's 2021 crude steel output was expected to fall to 1.03 billion tonnes from a record of 1.065 billion tonnes, reaching a "supply and demand balance".

Benchmark iron ore futures on the Dalian Commodity Exchange rose 1.9% to 718 yuan per tonne. Spot 62% iron ore for delivery to China, however, slipped $1 to $127.5 a tonne on Monday, according to SteelHome consultancy. Dalian coking coal futures fell 1.2% to 2,259 yuan a tonne and coke prices declined 2% to 3,115 yuan per tonne.

($1 = 6.3707 Chinese yuan)

(Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; editing by Uttaresh.V)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Read Entire Article