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Shanghai stainless steel futures fall on prospects of higher output

Shanghai stainless steel futures fall on prospects of higher output

FILE PHOTO: Steel pipes are seen stacked at an industrial park in Shenyang, Liaoning province, China September 30, 2021. REUTERS/Tingshu Wang

BEIJING/MANILA :Chinese stainless steel futures fell more than 2per cent on Thursday as traders anticipated higher production this month after some key producing regions relaxed power curbs.

Planned stainless steel output in November is expected to rise 14.39per cent from a month earlier, analysts with GF Futures wrote in a note, citing data from Mysteel consultancy.

"Jiangsu and Fujian provinces have eased controls on power consumption, capacity at steel mills is gradually recovering," according to GF Futures.

The most actively traded stainless steel contract on the Shanghai Futures Exchange, for December delivery, fell as much as 2.6per cent to 18,070 yuan per tonne. The contract ended down 2.3per cent at 18,130 yuan a tonne.

Other steel prices on the Shanghai bourse also fell as demand at downstream sectors remains sluggish.

Construction rebar, for January delivery, dropped 2.4per cent to 4,226 yuan a tonne. Hot-rolled coils, used in the manufacturing sector, slipped 2.1per cent to 4,614 yuan per tonne.

Prices for steelmaking raw materials on the Dalian Commodity Exchange were mixed at close.

Benchmark iron ore futures inched 0.3per cent higher to 583 yuan a tonne. Coking coal futures jumped 1.5per cent to 2,405 yuan per tonne.

Coke prices, however, stepped back from a 4.3per cent gain earlier during the session and ended 2.6per cent lower at 3,035 yuan a tonne.

(US$1 = 6.3921 Chinese yuan)

(Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips and Shounak Dasgupta)

Source: Reuters

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