STEEL NEWS

China stainless steel futures jump limit as nickel rises

Chinese stainless steel futures rose at a daily limit of 12% to a record high on Tuesday as commodity nickel prices more than doubled on heightened supply concerns from Russia following its invasion of Ukraine, Reuters reported. .

The Shanghai Futures Exchange's best-selling stainless steel contract for April delivery ended day trading at 22,125 yuan ($3,503.56) a tonne, marking an upward movement in the limit.

The rise in stainless steel prices came after nickel prices surged nearly 111% to a record $101.365 a tonne on the London Metal Exchange. The metal rose by the daily limit by 15% to a record 228,810 yuan per ton on the Shanghai Exchange.

Russia supplies about 10% of the world's nickel needs, mainly for use in stainless steel and electric vehicle batteries.

“The prospect of a ban on the export of Russian goods was felt everywhere,” ANZ commodities analysts said in a note. “Fears about supplies from Russia have left buyers facing a short-term crisis.”

Analysts at Huatai Futures wrote in a note that with relatively optimistic market sentiment for consumption in China, stainless steel prices could rise.

China's Wuxi Stainless Steel Exchange Center has suspended trading in nickel products pending further notice and has raised trading limits for both stainless steel products and nickel since settlement on March 7.

However, the value of other steel products on the Shanghai Exchange declined, with structural rebar for delivery in May falling 1.2% to 4,956 yuan per ton and hot-rolled coils down 2% to 5,220 yuan per ton.

Iron ore for May delivery on China's Dalian Commodity Exchange rose 0.4% to 844.50 yuan a ton after a volatile session.

April iron ore on the Singapore Exchange rose 1% to $167.55 a ton by 0804 GMT.

Spot 62% iron ore in China traded at $163 a tonne on Monday, the highest since mid-August, according to data from consultancy SteelHome.

Dalian coking coal fell 0.1%, while coke remained virtually unchanged.