Chinese steel futures dropped for a third straight session on Wednesday, as demand remained weak during the winter months, weighing on spot physical prices.
Spot rebar prices tumbled by as much as 400 yuan to 4,330 to 4,350 yuan ($660-$663) a tonne in Shanghai this week, due to waning demand as lower temperatures slowed use of the construction material across the country, traders said.
“Spot prices fell too sharply over the past two days, although trading picked up slightly yesterday afternoon,” said Qiu Yuecheng, an analyst with the steel trading platform Xiben New Line E-Commerce in Shanghai.
“However, the overall demand is seasonally weak, and prices will be under pressure,” Qiu said.
The most active rebar on the Shanghai Futures Exchange closed 0.4 percent lower at 3,792 yuan a tonne.
Iron ore on the Dalian Commodity Exchange inched down 0.5 percent to 515.5 yuan a tonne.
Coke fell 2.3 percent to 1,970 yuan a tonne. Coking coal dropped 1.8 percent to 1,292.5 yuan a tonne.
Iron ore for delivery to China’s Qingdao port .IO62-CNO=MB inched down 0.4 percent to $76.08 a tonne on Tuesday from last Friday, according to Metal Bulletin.
Metal Bulletin did not publish the index on Monday due to the Christmas holiday.