Chinese stainless steel futures surged more than 4% on Tuesday, boosted by tight supply hopes as producers cut production
Topics
China | stainless steel industry | China economy
Reuters | Beijing Last Updated at January 11, 2022 11:18 IST
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.)
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