Chinese stainless steel futures fell to the lowest level in more than three months on Wednesday amid slowing downward demand and easing raw material prices.
Stainless steel, which is most actively traded on the Shanghai Futures Exchange for January delivery, closed at 16,085 yuan/t, the lowest since September 2, down 4.2%.
“Stainless steel production scheduled for December is substantial, but downside demand is weak,” analysts at GF Futures wrote, adding that lower ferrochrome and stainless steel scrap prices have also reduced costs at the mills.
Other steel prices on the Shanghai stock exchange also fell. Rebar used construction for May delivery fell 2% to 4,350 yuan per tonne. Hot rolled coils used in automobiles and household appliances fell 2.1% to 4,528 yuan per tonne.
Prices of steelmaking materials on the Dalian Commodity Exchange are mixed.
Benchmark iron ore futures were up 1.5% at 659 yuan per tonne, bringing their gains for the third day after jumping 4.2% at the start of the session.
Spot prices of iron ore with 62% iron content to be delivered to China increased by $7 per ton to $111.5 on Tuesday, according to SteelHome consultancy.
Coking coal prices were up 2% to close at 2,056 yuan per tonne. They rose as much as 5.6% to 2,127 yuan in morning trading.
Coke futures on the Dalian exchange fell 1.3% to 2,917 yuan per tonne.
($1 = 6.3528 Chinese yuan)
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