BEIJING- Chinese stainless steel futures opened 12 percent lower to hit daily trading limit on Thursday, following Shanghai Futures Exchange halting some nickel trading and fuelled by worries of a back off in the raw material prices.
The Shanghai bourse said it would suspend trading of some nickel contracts for one day on March 9 to tame price volatility after it hit upward trading limit three consecutive days.
“Recent surge in nickel prices was unconventional and derailed from the fundamentals,” said a Shanghai-based analyst, who declined to be named.
“Now that London Metal Exchange and Shanghai Futures Exchange both halted nickel trading, investors would have expectation that price for the ingredient is not going any higher,” the analyst added.
Stainless steel futures for April delivery hit a lower trading limit of 12 percent to 19,700 yuan ($3,116.84) a ton since Wednesday night session and stalled on Thursday morning trade. — Reuters
