December 25, 2017 / 8:01 AM / a year ago

Chinese steel futures fall as demand weakens

A labourer marks steel bars at a steel and iron factory in Huai'an, Jiangsu province, February 18, 2008. REUTERS/Patty Chen/File Photo

SHANGHAI (Reuters) - Chinese steel futures fell on Monday after two days of gains as demand weakened during the winter months and spot prices fell.

Steel demand in the world’s top producer and consumer of the metal cooled as construction slowed with lower temperature in China’s northern regions.

The most active rebar contract on the Shanghai Futures Exchange dropped 3 percent to close at 3,787 yuan ($578.54) a tonne.

“The physical market sales were not good, and prices kept falling ... many steel mills cut prices,” BOCI International Futures said in a note on Monday.

Rebar spot prices fell by 250 yuan to 4,250 to 4,510 yuan a tonne in Shanghai since the weekend, a trader said.

Coke tumbled 4.2 percent to 2,008 yuan a tonne. Coking coal slumped 4.5 percent to 1,317 yuan.

Iron ore futures on the Dalian Commodity Exchange fell 2.2 percent to 525.5 yuan a tonne.

Iron ore for delivery to China’s Qingdao port gained nearly 5 percent to $76.36 a tonne on Friday, according to Metal Bulletin.

Reporting by Ruby Lian and Aizhu Chen; Editing by Tom Hogue

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