Home Scrap Metal Prices Price Regions US Scrap Metal Prices China Scrap Metal Prices India Scrap Metal Prices Europe Scrap Metal Prices Aluminum ScrapBrass/BronzeCopper ScrapCupro-NickelElectronics ScrapLead ScrapScrap Gold Prices (Hallmarked)Scrap Gold Prices (Non-Hallmarked)Stainless SteelSteelMarket News
China stainless steel futures jump on supply woes, robust nickel prices
Published by
ScrapPrices
Published on January 11,2022 09:00 AM Metals
Chinese stainless steel futures surged more than 5% on Tuesday, boosted by tight supply concerns as producers cut production, while strong raw material prices also offered support.

BEIJING, Jan 11 (Reuters) - Chinese stainless steel futures surged more than 5% on Tuesday, boosted by tight supply concerns as producers cut production, while strong raw material 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.

Stainless steel is also underpinned by nickel prices cue to tight spot cargoes, a Huatai Futures note said.

The most-actively traded stainless steel contract on the Shanghai Futures Exchange , for February delivery, jumped as much as 5.3% to 17,920 yuan ($2,812.39) per tonne. They closed up 4.4% at 17,760 yuan a tonne.

Other steel prices on the Shanghai bourse also gained. Construction used steel rebar , for May delivery, rose 2% to 4,589 yuan a tonne.

Hot rolled coils futures , used for cars and home appliances, increased 1.6% to 4,719 yuan a tonne at close.

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 ended up 2.8% to 724 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.

"There's still room for profits at long-process steel producers to gain, and expectation on resuming steel production and restocking demand before holidays could shore up iron ore prices," according to Huatai Futures.

Dalian coking coal futures inched 0.4% higher to 2,295 yuan a tonne while coke prices dipped 0.2% to 3,171 yuan per tonne.

MORE METALS NEWS
April 26,2024 08:10 AM
Newmont Corp (NEM.N), opens new tab beat Wall Street estimates for first-quarter profit on Thursday, as the world's largest gold miner benefited from robust production, higher prices and lower operating expenses.
April 24,2024 07:00 AM
Gold prices steadied on Wednesday as risk premiums over tensions in the Middle East eased, while investors strapped in for U.S. economic data due later in the week that could offer clues to the Federal Reserve's interest rate path.
April 23,2024 08:00 AM
Gold prices steadied on Tuesday after hitting a more than two-week low on diminishing fears about an escalation of tensions in the Middle East, with investors awaiting key economic data for further clarity on the timeline on U.S. interest rate cuts.