The most traded stainless steel contract on the Shanghai Futures Exchange, for delivery in April, jumped to 22,125 yuan a ton in the morning session – the highest level since its launch in 2019. They climbed d around 24% so far this month.
The surge in stainless steel comes after nickel prices soared 90% to a record high in the previous session and extended gains on Tuesday. Russia supplies about 10% of nickel to the world.
“304 stainless steel costs are firm and have supported metal prices,” analysts at Huatai Futures said, noting that spot trading is quiet at the moment.
However, with LME nickel prices remaining high and market sentiment relatively bullish on downstream consumption, stainless steel prices could still recover, Huatai Futures said.
China’s Wuxi Stainless Steel Trading Center has halted trade in nickel products pending further notice and raised trade limits for stainless steel products and nickel since the settlement of the March 7.
Other steel products on the Shanghai stock exchange retreated from Monday’s gains, with construction rebar for May delivery down 1.4% at 4,942 yuan a ton and hot-rolled coils down 2% at 5,222 yuan per ton at 0325 GMT.
Benchmark iron ore futures on the Dalian Stock Exchange fell 0.8 percent to 835 yuan a ton, down for the first time in seven sessions.
Spot 62% iron ore gained again on Monday, by $4 to $163 a ton, according to data compiled by consultancy SteelHome.
Dalian 0 coking coal prices edged down 0.3 percent to 3,050 yuan a ton. Coke prices rose 0.6 percent to 3,756 yuan per ton.
