STEEL NEWS

Stainless steel futures in China are growing amid weak supply

According to Reuters, Chinese stainless steel futures continued to rise for a third straight session on Thursday, rising as much as 3% on expectations of lower production, even as demand declined due to lower seasonal consumption.

Steelmakers are expected to step up maintenance amid a poor demand outlook, and metal production will remain relatively low until the Chinese New Year holidays, Jinrui Futures said in a note, adding that stainless steel prices will depend on the cost of raw materials.

Stainless steel contracts for February delivery, the most actively traded on the Shanghai Futures Exchange, rose 3% to 16,635 yuan ($2611.26) per tonne. They rose 2.9% to 16,625 yuan per tonne.

Steel rebar futures on the Shanghai Stock Exchange for Delivery in May rose 0.6% to 4,479 yuan per tonne.

Hot-rolled coil used in automobiles and home appliances rose 0.04% to 4,584 yuan per tonne.

Prices for steelmaking ingredients on the Dalian Commodity Exchange have been mixed.

Benchmark iron ore futures fell 0.7% to 693 yuan a tonne, tracking the spot market, according to consultancy SteelHome, as iron ore prices with 62% Fe for delivery to China fell $1.5 to $127.5 a tonne on Wednesday.

Coking coal prices in Dalian rose 1.2% to 2,250 yuan per tonne, while coke futures rose 0.6% to 3,088 yuan per tonne.