Chinese stainless steel futures fell more than 2% on Thursday as traders anticipated higher production this month after some key producing regions relaxed power curbs.
Planned stainless steel output in November is expected to rise 14.39% from a month earlier, analysts with GF Futures wrote in a note, citing data from Mysteel consultancy.
“Jiangsu and Fujian provinces have eased controls on power consumption, capacity at steel mills is gradually recovering,” according to GF Futures.
The most actively traded stainless steel contract on the Shanghai Futures Exchange, for December delivery, fell as much as 2.6% to 18,070 yuan per tonne. The contract ended down 2.3% at 18,130 yuan a tonne.
Other steel prices on the Shanghai bourse also fell as demand at downstream sectors remains sluggish.
Construction rebar, for January delivery, dropped 2.4% to 4,226 yuan a tonne. Hot-rolled coils, used in the manufacturing sector, slipped 2.1% to 4,614 yuan per tonne.
Prices for steelmaking raw materials on the Dalian Commodity Exchange were mixed at close.
Benchmark iron ore futures inched 0.3% higher to 583 yuan a tonne. Coking coal futures jumped 1.5% to 2,405 yuan per tonne.
Coke prices, however, stepped back from a 4.3% gain earlier during the session and ended 2.6% lower at 3,035 yuan a tonne.