Stainless steel futures on the Shanghai Futures Exchange rose as much as 2.5% on Tuesday, gaining for a second straight session, fuelled by rising raw material prices and expectations of strong demand after the Chinese New Year holidays.
"Recent Chinese nickel pig iron output continued to fall, nickel pig iron prices steadily rose stainless steel costs will remain at high levels," an analyst with Huatai Futures wrote in a note, adding that the market is optimistic about consumption after the holidays.
The most active stainless steel contract, for April delivery, rose 2.2% to 14,590 yuan ($2,254.50) a tonne as of 0330 GMT, after hitting as much as 14,315 yuan a tonne earlier in the session.
Construction material steel rebar and hot rolled coil, used in the manufacturing sector, also gained.
The May contract of rebar gained 0.4% at 4,317 yuan a tonne and hot rolled coil rose 1.7% to 4,440 yuan a tonne.
