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BEIJING- Chinese stainless steel futures dropped on Wednesday, after opening more than 7 percent higher, as cautious investors assessed the uncertainties caused by a surge in prices of raw material nickel.
The most-active stainless steel contract on the Shanghai Futures Exchange, for April delivery, dropped as much as 4.2 percent to 20,655 yuan ($3,270.11) a ton, after touching 24,785 yuan per ton earlier during the session.
“Current stainless steel prices have deprived from its own supply and demand fundamentals,” said Fu Zhiwen, analyst with Huatai Futures.
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Fu also added that once the nickel turmoil on the London Metal Exchange (LME) comes to an end, stainless steel prices could back within reasonable range. — Reuters
