According to a recent Reuters article, China stainless steel futures rose 5% on Jan. 07, 2021, as the metal used in vehicles and cookware extended gains on higher costs for nickel, a raw material, and tight supply.
Highest for stainless steel since October 2020
The most heavily traded stainless steel contract for March on the Shanghai Futures Exchange rose to 14,725 yuan ($2,280.72) a ton in morning trade, the daily limit on the upside and the highest since late October.
Nickel smelting costs remain high
The smelting cost of nickel pig iron, the feedstock for stainless steel, remains high because many Chinese smelters use high-priced nickel concentrate that they have recently purchased, according to a report by consultancy Mysteel, citing a market source.
LME nickel benchmark at over $18,000 per tonne
Nickel prices continued to rise, with the London Metal Exchange benchmark topping $18,000 a ton for the first time since September 2019, as widespread unrest in New Caledonia, the world’s fourth-largest producer of the metal, fueled supply concerns.
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