STEEL NEWS

Stainless steel in China rebounds amid rising nickel prices

Chinese stainless steel futures posted a three-session losing streak on Thursday Oct.21, boosted by higher nickel prices, although analysts warn that downstream metal consumption remains sluggish, Reuters reports.

Nickel prices on the Shanghai Futures Exchange jumped 8% to a record 161,600 yuan ($ 25,283.58) a tonne.

China's imports of nickel ore and nickel pig iron fell 1.6% and 12.3%, respectively, on a monthly basis in September, according to data released by customs on Wednesday.

Stainless steel futures on the Shanghai Stock Exchange for November delivery rose 1.1% to RMB 20,470 a tonne. Earlier in the session, they rose 5.1% to 21,280 yuan.

However, analysts say stainless steel consumption is still low in the short term as recent electricity rationing has hurt manufacturing activities in the world's second largest economy.

Other ferrous metals prices in China fell sharply in daytime trading, with coking coal, coke and steel bars falling to daily trading limits due to falling coal prices and stagnating steel consumption.

The securities regulator said late Wednesday that it will ask futures exchanges to take a number of measures, including higher fees and cap trading limits, in response to high coal prices.

Coking coal futures on the Dalian Commodity Exchange fell 12% to 3,109 yuan a tonne, while coke futures fell 12% to 3,664 yuan a tonne.

Iron ore futures on the Dalian Exchange fell 8.7% at 651 yuan a tonne.

Steel rebar on the Shanghai Stock Exchange fell 8% to 4,976 yuan a tonne. Hot rolled coil was down 6.2% to RMB 5,268 / t.

Apparent consumption of China's five major steel products, including rebar and hot rolled coil, was down 7.5% to 9.26 million tonnes as of Thursday from a week earlier, according to consulting firm Mysteel.