* Shanghai HRC futures drop most in 3-1/2 months
* Dalian iron ore down as much as 2.2% in early trade
* Coronavirus hit downstream demand and exports for HRC - analysts
BEIJING, April 1 (Reuters) - Hot-rolled coil (HRC) futures in China plunged on Wednesday, hitting their lowest in 3-1/2 months, as the coronavirus pandemic dents demand amid an already slowing global economy.
"Downstream demand for HRC, mainly from manufacturing sectors such as autos and home appliances, are not good," said Zhao Yu, an analyst with Huatai Futures, adding that the spreading virus outside China since late March also affected HRC exports.
Major automakers halted production at plants in North America as corporations grapple with growing signs of coronavirus damage. of China's steel products slumped 27% in the Jan-Feb period.
Tang Chuanlin, analyst from CITIC Securities, noted that some steelmakers' plans to launch more production capacity this year could increase HRC supply and put further pressure on prices.
The most active May contract of hot-rolled coil on the Shanghai Futures Exchange SHHCcv1 dropped as much as 2.5% to 3,181 yuan ($448.93) per tonne in early trade, the lowest since Nov. 14. It was down 1.5% at 3,211 yuan per tonne, as of 0330 GMT.
Shanghai construction rebar SRBcv1 , for May delivery, extended losses into a third session, down 1.0% at 3,370 yuan per tonne.
Stainless steel futures SHSScv1 , for June delivery, edged up 0.3% to 12,015 yuan per tonne.
FUNDAMENTALS
* Benchmark iron ore futures on the Dalian Commodity Exchange DCIOcv1 fell 1.4% to 641 yuan per tonne in morning trade on demand concerns, despite Brazil's Vale statement that the resumption of its lost production capacity could be postponed due to the coronavirus. Dalian coking coal DJMcv1 dropped 0.9% to 1,244 yuan per tonne and Dalian Coke DCJcv1 fell 0.7% to 1,755 yuan per tonne.
* China's factory activity improved in March after plunging a month earlier, a private survey showed on Wednesday, but the bare minimal growth highlighted the intense pressure facing businesses as the global coronavirus pandemic shuts down many countries. More than 799,800 people have been infected by the coronavirus across the world and 38,854 have died. For top stories on metals and other news, click TOP/MTL or MET/L .
($1 = 7.0857 Chinese yuan)