The most-traded stainless steel on the Shanghai Futures Exchange, for August delivery, jumped as much as 6.7% to 19,175 yuan ($2,965.15) per tonne during the session. The contract closed up 4.3% at 18,740 yuan.
“Downstream consumption (for stainless steel) is relatively good, both supply and demand are robust,” Huatai Futures wrote in a note, adding that the recent concerns over steel production cut also weighed on supply outlook.
Meanwhile, the environmental controls in China to restrict high-energy consuming and high-emission projects have resulted in a shortage of ferroalloys such as stainless steelmaking ingredient ferrochrome.
Other steel products on the Shanghai bourse were mixed, with construction rebar, for October delivery, up 0.2% at 5,559 yuan a tonne while hot rolled coils edging 0.1% lower to 5,952 yuan per tonne.
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