* Shanghai rebar hits record low
* Australia's Northern Iron Norway unit files for bankruptcy
By Manolo Serapio Jr and Ruby Lian
MANILA/SHANGHAI, Nov 19 (Reuters) - Iron ore futures in China sank to their cheapest since July on Thursday as Shanghai steel prices plumbed a record low amid mounting fears over wilting demand.
Other China-traded commodities from base metals to rubber were also sold off, reflecting an increasing bearish stance among investors worried over a slowing economy.
Deepening losses in ferrous futures could drag spot iron ore to a new low since at least 2008 below $45 a tonne, widening losses for the glut-hit commodity, already down nearly 36 percent this year.
"It's difficult to sell now," said an iron ore trader in Shanghai.
"We see spot prices going lower and transactions were made at unexpectedly low prices, prompting investors to take more short bets on iron ore futures."
Iron ore for January delivery on the Dalian Commodity Exchange DCIOcv1 closed 1.8 percent weaker at 331 yuan ($52) a tonne, after hitting a bottom of 326.50 yuan for the day, its lowest since July 9.
Benchmark 62-percent grade iron ore for shipment to China's Tianjin port .IO62-CNI=SI held steady at $45.80 a tonne on Wednesday, according to The Steel Index (TSI).
That was its lowest level since July 8 when it touched $44.10, the weakest on TSI's records since it began compiling data in late 2008.
Amid tumbling prices, the Norwegian mining subsidiary of Australia's Northern Iron Ltd NFE.AX filed for bankruptcy as its $100 million debt has become unsustainable. urn:newsml:reuters.com:*:nL8N13D2K3
A sustained slide in China's steel prices has reduced appetite for iron ore, the raw material, bloating stocks of ore at the country's ports to the highest since May.
Chinese steel demand shrank around 6 percent in January-October, according to the China Iron and Steel Association, reflecting slower industrial activity as the world's No. 2 economy heads for its weakest growth in 25 years.
The price of rebar, a construction steel product, has been hitting a series of record lows in Shanghai in recent months amid tepid demand that traders say has led to inflated stocks of steel products in China, forcing more production cutbacks and even closures.
The most-traded May rebar on the Shanghai Futures Exchange SRBcv1 closed down 2 percent at 1,705 yuan a tonne after falling as far as 1,692 yuan. It was the lowest for a most-active contract since the bourse launched rebar futures in 2009.
Rebar and iron ore prices at 0723 GMT
Contract
Last
Change Pct Change SHFE REBAR MAY6
1705
-35.00
-2.01 DALIAN IRON ORE DCE DCIO JAN6
331
-6.00
-1.78 SGX IRON ORE FUTURES DEC
43
-0.68
-1.56 THE STEEL INDEX 62 PCT INDEX
45.8
+0.00
+0.00 METAL BULLETIN INDEX
46.35
+0.77
+1.69
Dalian iron ore and Shanghai rebar in yuan/tonne Index in dollars/tonne, show close for the previous trading day ($1 = 6.3781 Chinese yuan)