China stainless steel futures extend gains on tight supply expectations – Reuters

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BEIJING, Dec 23 (Reuters) – 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 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.

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Steel rebar futures on the Shanghai bourse for May delivery advanced 0.6% to 4,481 yuan per tonne.

Hot rolled coils , used in cars and home appliances, inched 0.04% higher to 4,584 yuan a tonne.

Prices for steelmaking ingredients on the Dalian Commodity Exchange were mixed.

Benchmark iron ore futures fell 1.2% to 689 yuan a tonne, tracking spot market as prices of 62% iron ore for delivery to China dropped $1.5 to $127.5 per tonne on Wednesday, according to SteelHome consultancy.

Dalian coking coal prices jumped 0.9% to 2,243 yuan a tonne and coke futures increased 0.5% to 3,084 yuan per tonne.

($1 = 6.3706 Chinese yuan renminbi)

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Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; Editing by Vinay Dwivedi

Our Standards: The Thomson Reuters Trust Principles.