Chinese stainless steel futures rose more than 4% on Tuesday, supported by supply concerns amid strong nickel prices and checks on high energy projects in some regions that failed to meet their first-half energy targets.
In a note, Huatai Futures analysts wrote that nickel pig iron supplies are relatively tight as mills support prices.
The nickel contract on the Shanghai Futures Exchange rose more than 2.5% in morning trading.
Meanwhile, Huatai Futures added that six stainless steel producers in the Guangxi region have been asked to limit production as the local government aims to control energy consumption and emissions.
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