Chinese stainless steel futures ended a three-session streak at the start of the week, supported by higher prices for the steelmaking material nickel, but analysts warn that the metal's downside consumption remains stagnant.
Nickel prices on the Shanghai Futures Exchange rose by up to 8% to a record high of 161,600 yuan ($25,283.58) per tonne.
According to data released by the customs administration last week, China's nickel ore and nickel pig iron imports fell by 1.6% and 12.3%, respectively, on a month-on-month basis in September.
Stainless steel futures on the Shanghai stock exchange for November delivery rose 1.1 percent to 20,470 yuan per tonne. Earlier in the session, they had risen 5.1% to 21,280 yuan.
However, analysts say stainless steel consumption is still slow in the short term as the recent power cut has hurt manufacturing activities in the world's second largest economy.
Other ferrous metal prices in China fell in afternoon trading as coking coal, coke and rebar fell to daily trade limits due to falling coal prices and sluggish steel consumption.
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