Chinese stainless steel futures scaled to an all-time high on Thursday as market watchers worried about the metal's continued supply constraints and downside demand remained resilient.
"Stainless steel inventories are relatively low. Supply will continue to be affected by production controls, but consumption is stable," analysts at Huatai Futures said in a note.
Huatai Futures added that production cut talks for nickel pig iron (NPI) are also supporting prices.
Some NPI manufacturers in eastern China's Shandong province have recently reduced production, which appears to have "significantly affected" the supply of raw materials, according to Mysteel consultancy.
The most active stainless steel contract on Shanghai Futures Exchange SHSScv1 for October delivery rose 7% to 20,680 yuan ($3,214.87) per ton.
Other steel products on the Shanghai stock market also rose; rebar SRBcv1 rose 3% to yuan 5,660 per tonne and hot rolled coils SHHCcv1 rose 2.5% to yuan 5,828 per tonne.
Coke futures for January delivery rose 3.1% to 3,425 yuan per ton on Dalian Commodity Exchange DCJcv1.
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