Reuters reported that Chinese steel futures fell for a fourth straight session to a six-week low on Friday on concerns of slackening demand in the world's largest consumer, while iron ore prices steadied near their lowest levels in about a month.
Steel demand in China had unexpectedly picked up ahead of the traditionally brisk consumption season in September and October, and traders are concerned that end-users have replenished stockpiles and will hold back on purchases, weighing on prices.
Rebar futures for the January contract on the Shanghai Futures Exchange fell to a session low of CNY 3,655 (USD 599) a tonne, the lowest since Aug. 2. It closed 1.7% lower at CNY 3,657.
The contract posted its biggest daily percentage fall since May 2 and a fourth straight weekly loss.
A Shanghai steel trader said that "The overall economy keeps improving, but at a slow pace, so the foundations for a big spike in steel prices are not solid enough, while users are not expected to improve their performance within a short period.'
"But I still expect steel prices to gain upward momentum after this round of correction as demand remains very healthy."
Some traders expected end-users to return to the market for a new round of restocking before the one-week national holiday in early October.