BEIJING- Ferrous futures in China fell on Monday as the market reopened after public holidays amid lacklustre demand outlook for key industrial materials, due to the coronavirus pandemic and inclement weather.
The most-traded iron ore futures contract on the Dalian Commodity Exchange, for September delivery, dropped as much as 2.2 percent to 749 yuan ($105.83) a ton. It was down 1.4 percent to 754 yuan.
Prices for the steelmaking raw material dropped with easing demand of steel products amid heat and rains. Meanwhile, demand outlook remains uncertain as Beijing is trying to curb a new wave of infections.
Weekly output of main steel products, including rebar and hot-rolled coils, were at 11.06 million tons as of June 24, data from Mysteel consultancy showed.
That has sent total steel inventories in China to 20.53 million tons versus 20.15 million tons a week earlier. But apparent demand for steel products, according to Reuters calculations based on Mysteel data, fell for the third straight week last week.
Construction steel rebar on the Shanghai Futures Exchange, for October delivery, dropped 1.1 percent to 3,577 yuan a ton. – Reuters