China's steel, iron ore fall for third session on weak demand

Source:Reuters-Global Times Published: 2017/9/18 17:43:39

China's steel rebar futures fell for a third straight session on Monday, on continued worries about waning demand amid environmental inspections.

"The steel market is under pressure despite the outlook of tight supply during the coming autumn and winter season amid environmental inspections," Orient Futuress analysts said in a note.

"However, the inspection is a double-edged sword that will curb both supply and demand sides. What the market worries about the most is waning demand from the downstream sectors."

China's capital, Beijing, said over the weekend that it will suspend construction of major public projects, including housing demolition and road projects, in the city this winter to improve its air quality. The ban will be effective from November 15 to March 15.

The most-active construction steel futures on the Shanghai Futures Exchange were down 1.5 percent at 3,762 yuan ($574.59) a ton after touching their lowest level in nearly four weeks at 3,742 yuan earlier in the day.

Spot rebar prices fell 0.3 percent to 4,361 yuan a ton on Friday, according to data on the website of Mysteel consultancy.

Rebar stockpiles of Chinese traders had risen by 118,400 tons to 4.72 million tons by Friday, data from Mysteel showed.

The most-traded iron ore on the Dalian Commodity Exchange dropped 1.6 percent to 501.5 yuan a ton, despite falling inventories at the ports.

Inventories of imported iron ore at ports had decreased by 1.29 million tons from a week earlier to 132.61 million tons by Friday, Mysteel data showed, as mills' appetites for high-grade iron ore remains strong.

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