China stainless steel futures jump amid output cuts, robust nickel prices

Chinese stainless steel futures surged more than 4% on Tuesday, boosted by tight supply hopes as producers cut production, while strong raw material nickel prices also offered support.

"Domestic stainless steel firms are stepping up maintenance in the first quarter, while affected by the Spring Festival holidays and Beijing Winter Olympics; overall production is expected to be limited," analysts with Jinrui Futures wrote in a note.

Meanwhile, stainless steel is also underpinned by nickel prices cue to tight spot cargoes, a Huatai Futures note showed.

The most-actively traded stainless steel contract on the Shanghai Futures Exchange, for February delivery, jumped 4.3% to 17,745