Chinese stainless steel futures extended gains to a third straight session on Thursday, rising more than 2%, on expectations of lower output even as demand has been dented by lower seasonal consumption.
Steelmakers are expected to strengthen maintenance amid poor demand outlook and production for the metal will remain at relatively low levels till the Chinese New Year holidays, Jinrui Futures wrote in a note, adding that stainless steel prices will be underpinned by raw material costs.
The most actively traded stainless steel contract on the Shanghai Futures Exchange SHSScv1 for February delivery gained as much as 2.5% to 16,560 yuan ($2,599.44) per tonne. It was up 2.4% at 16,540 yuan a tonne as of 0330 GMT.
Steel rebar futures on the Shanghai bourse SRBcv1 for May delivery advanced 0.6% to 4,481 yuan per tonne.