Stainless steel futures in China rose on the back of demand and raw material costs

The most active stainless steel contract on the Shanghai Futures Exchange for September delivery reached 13,470 yuan ($1,906.72) per tonne, the highest level since May 22, and rose 2.2% to 13,365 yuan per tonne as of 03:30 GMT.

"Stainless steel prices are supported by steady commodity prices and macroeconomic market sentiment," said a trader from Shanxi, speaking about nickel and chrome ore.

Nickel prices rose 2.4% on Friday and will rise by almost 3% over the week.

Some stainless steel manufacturers have raised prices recently, the trader said, adding that Shanxi Taigang Stainless Steel raised its prices for 304 grade hot-rolled stainless steel by 200 yuan per ton this week.

"Stainless steel production has been steady, but stocks are not accumulating. The only explanation is that domestic demand is really high," says Ellie Wang, an analyst at CRU Group in Shanghai, adding that consumption is mainly determined by the infrastructure sector.

Steel rebar futures in Shanghai rose 1.1% to 3,607 yuan per ton, and for rolled products – by 1% to 3,600 yuan per ton.

Dalian iron ore futures rose 0.3% to 744 yuan per tonne.

Source: Metal Torg.Ru

16.07.2020