Steel futures drop over 2%

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    BEIJING- Chinese stainless-steel futures fell over 2 percent on Tuesday as traders witnessed higher inventories while downstream users resumed work slowly from holidays.

    Stockpiles of 304 stainless steel jumped 15.38 percent last week to 520,500 tons from the week earlier, data from Mysteel consultancy showed.

    The most-traded stainless steel contract on the Shanghai Futures Exchange, for May delivery, declined 2.1 percent to 14,850 yuan ($2,294.85) per ton.

    However, the outlook for the metal is still optimistic on hopes of restocking demand with downstream companies and traditional peak season, analysts with Huatai Futures said in a note.

    Other steel prices on the Shanghai bourse edged up after China’s industry minister reassured to cut steel production this year.

    Construction steel rebar rose 0.1 percent to 4,653 yuan a ton. – Reuters