BEIJING, May 11 (Reuters) - Chinese stainless steel futures soared nearly 4.5% to a more than nine-month high on Monday as domestic demand continues to recover from coronavirus-related shutdowns.
The most-traded stainless steel futures contract on the Shanghai Futures Exchange, for June delivery, jumped as much as 4.4% to 13,730 yuan ($1,939.68) per tonne. It was up 3.7% at 13,640 yuan by 0215 GMT.
“The purchasing demand at downstream sectors (for stainless steel) has been good,” said Fu Zhiwen, an analyst with Huatai Futures.
“There had been worries of an export impact on consumption, but not obviously affected so far.”
Apart from reviving demand, prices also rose on concerns over the supply of raw materials such as nickel and chrome, according to a contact at a stainless steelmaker who requested to be unnamed.
The top two nickel miners in the Philippines have gradually resumed mining and shipping operations since May after coronavirus-led disruptions. But the trader said output was still lower compared with a year earlier.
Other steel futures on the Shanghai exchange dropped. The October contracts for construction rebar and hot-rolled coil both inched down 0.2% to 3,457 yuan and 3,328 yuan, respectively.
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