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China steel futures fall for second day on slowing consumption concerns

Published 21/10/2019, 02:15 pm
© Reuters.  China steel futures fall for second day on slowing consumption concerns

* Dalian iron ore inches down in morning trade

* Spot prices for benchmark 62% Fe stood at $86.50 a tonne

* Steel consumption is expected to slow - analyst

BEIJING, Oct 21 (Reuters) - Chinese steel futures fell for a second session on Monday amid expectations for slowing consumption and as robust output from mills added to supply of the metal.

The most-active construction steel rebar contract on the Shanghai Futures Exchange (ShFE) SRBcv1 , for January delivery, slipped 0.2% to 3,287 yuan ($465.15) a tonne as of 0229 GMT.

ShFE futures for hot-rolled coil SHHCcv1 , used in cars and home appliances, was almost unchanged from the previous session at 3,286 yuan a tonne.

Singapore-based steel and iron ore data analytics firm Tivlon Technologies expects steel consumption to cool with the coming of November, when construction slows down with the approach of colder weather during the Northern Hemisphere winter.

"But steel supply seems pretty robust as mills as using more direct charge material like lumps and pellets to maintain production, despite the sintering cuts," said Darren Toh, data scientist with Tivlon.

The most-traded iron ore on the Dalian Commodity Exchange DCIOcv1 , for January 2020 delivery, dipped 0.4% to 607 yuan a tonne.

FUNDAMENTALS

* Benchmark 62% iron ore for delivery to China SH-CCN-IRNOR62 was at $86.50 a tonne on Friday, flat from the day earlier.

* The front-month February 2020 stainless steel futures contract SHSSc1 fell 0.9% to 14,890 yuan a tonne.

* Other steelmaking ingredients were mixed, with Dalian coking coal futures DJMcv1 rising 0.3% to 1,236 yuan a tonne while Dalian coke futures DCJcv1 dropped 0.7% to 1,756 yuan a tonne.

* China's state planner approved fourteen fixed-asset projects worth 177.8 billion yuan in September, compared with a 68.9 billion yuan worth of approved projects in August. China's new home prices rose 0.5% in September on month, in line with August's growth and marked the 53rd straight month of gains. For the top stories of metals and other news, click TOP/MTL or MET/L ($1 = 7.0665 Chinese yuan renminbi)

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