Stainless steel futures on the Shanghai Futures Exchange jumped as much as 3% on Tuesday, gaining for the second straight session. Driven by rising commodity prices and expectations of strong demand after next month’s Chinese New Year vacations. This is reported by Business Recorder on its website.
Stainless steel costs remain high
“Recent Chinese nickel pig iron production continued to fall, nickel pig iron prices rose steadily, stainless steel costs remain high,” a Huatai Futures analyst wrote in a note, adding that the market is optimistic about post-holiday consumption.
The most active stainless steel contract, for April delivery, ended up 1.6% at 14,500 yuan ($2,239.73) per ton. Earlier, it had risen as much as 3% to 14,705 yuan per ton.
Reinforcing steel and hot-rolled coils also rise
Construction materials such as rebar and hot-rolled coil used in the manufacturing industry also gained.
The May contract for rebar rose 0.1% to 4,303 yuan per ton.
Hot-rolled coil rose 1.4% to 4,428 yuan per ton.
Current development of steel key commodities
Benchmark iron ore futures on the Dalian Commodity Exchange fell 1.5% to 1,026 yuan per ton.
Coking coal futures fell 2.4% to 1,582 yuan per ton and coke fell 4% to 2,619 yuan per ton.
Spot prices for iron ore with 62% Fe content for delivery to China were unchanged at $171.5 per ton on Monday, according to consultancy SteelHome.
Covid-19 outbreak in northern China to have some impact
The COVID-19 outbreak in northern China will have some impact on the industry but will not lead to production stoppages, a Ministry of Industry and Information Technology official said Tuesday.
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