Latest Update in the China Stainless Steel Market

Shanghai base metals mostly trended lower on Wednesday morning amid stronger risk aversion sentiments. Meanwhile, their counterparts on LME all trended higher.

The U.S. dollar strengthened on Tuesday after Federal Reserve Chair Jerome Powell said the risk of inflation had increased and suggested retiring the term “transitory” for inflation, while worries about the new Omicron coronavirus variant kept a bid in safe-haven currencies.

Shanghai nonferrous metals closed with mixed performance, as the market has almost digested the impacts from the new COVID variant Omicron.

DCE iron ore futures tight，the main contract closed 609.5，an increase of 2.44% throughout the day.

Moderna's CEO warn that the effectiveness of the current vaccine will drop significantly against the Omicron variant COVID-19, which drove up the risk aversion sentiments across the global market.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on November 30, 2021

According to a report by the Australian Department of Industry, Science, Energy and Resources (DISER), global nickel finished products consumption will record 2.7 million mt in 2021, an increase of 15%, and register 2.9 million mt and 3 million mt in 2022 and 2023, respectively.

The PMI for steel downstream sectors stood at 49.97 in November, down 0.1 point month on month, but up 0.29 point year on year. The seasonally-adjusted composite index stood at 49.77, an increase of 1.37 points MoM and 0.27 point YoY.