Chinese steel futures slip on cooling seasonal demand – Reuters

BEIJING, June 15 (Reuters) – Chinese steel futures fell on Tuesday, with construction rebar and hot-rolled coils both down more than 2% on weak downstream demand, while raw material prices also declined due to falling utilisation rates at mills.

Apparent consumption of the five main steel products compiled by Mysteel consultancy fell 4.7% to 10.97 million tonnes last week from a week earlier, data showed.

“The off-peak season has gradually arrived, consumption declined significantly due to high-temperature and rains in the southern area, (steel) destocking is coming to an end,” analysts with Chang An Futures wrote in a note.

The most-traded steel rebar on the Shanghai Futures Exchange , for October delivery, dropped 2.2% to 5,130 yuan ($800.95) a tonne as of 0330 GMT, as trading resumed after a public holiday in China on Monday.

Hot-rolled coils futures, used in the manufacturing sector, declined 2.5% to 5,404 yuan per tonne.

Shanghai stainless steel futures, for July delivery, inched down 0.8% to 16,185 yuan a tonne.

The drop in steel prices was followed by steelmaking ingredients, while lower utilisation rates at mills also weighed.

Capacity utilisation rates of blast furnaces at 163 mills across China fell to 80.69% as of June 11, the lowest since mid-May, according to Mysteel.

Benchmark iron ore futures on the Dalian Commodity Exchange , for September delivery, fell 0.7% to 1,206 yuan a tonne.

Dalian coking coal futures slipped 0.1% to 1,928 yuan a tonne.

Coke futures slid 0.2% to 2,659 yuan per tonne.

Spot prices of iron ore with 62% iron content for delivery to China SH-CCN-IRNOR62, however, jumped $7 to $220 on Tuesday.

$1 = 6.4049 Chinese yuan renminbi Reporting by Min Zhang and Shivani Singh; Editing by Aditya Soni

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