Chinese steel futures edged up after touching a more than six-month low on Thursday, tracking other commodities, although signs of a slower economy and weaker demand limited gains.
Growth in China's factories slowed slightly in December, as export orders and output weakened, adding to views that while the world's second-largest economy remains resilient, it lost some steam in late 2013.
Steel demand also slowed down in a weak consumption season as cold weather hit construction activities, forcing some mills to cut prices and keeping traders from building inventories.
"Tight cash flow and weak market outlook have limited buying, and there would not be any big movement in prices in the near future, though the downside room is also limited as an
environment pollution crackdown curbed steel output," said Xia Junyan, an analyst with Wanda Futures in Shanghai.
The most active rebar futures for May contract on the Shanghai Futures Exchange touched a low of 3,562 yuan ($590) a tonne, the lowest since June 27 and also seen on Tuesday. It inched up 0.4 percent to 3,590 yuan by the close.
Rebar futures lost 2.6 percent in December.
On the Dalian Commodity Exchange, iron ore futures for May settlement closed 0.2 percent lower at 907 yuan. BHP Billiton said has resumed its Australian iron ore mining operations and Port Hedland, the world's biggest iron ore terminal reopened late on Tuesday.
Slower buying from steel mills in top consumer drove down the raw material by 3.4 percent in December.
Source: Reuters