SINGAPORE, Aug 17 (Reuters) - Shanghai steel futures fell to record lows on Friday and are heading for their fifth weekly loss in six as slower demand in top steel market China dragged down prices, trapping iron ore at 2-1/2-year troughs.
Brazil’s Vale, the world’s biggest iron ore miner, said it expects prices to start rebounding next month as Chinese steel mills replenish stockpiles but traders said they were unsure, given that the sustained decline in prices since early July has failed to draw buyers back into the spot market.
“The market’s still depressed and more traders are trying to offload their material,” said an iron ore trader in Hong Kong."
“We are seeing more offers, but buyers are still scarce. People feel prices can still fall some more,” said another iron ore trader in Shanghai.
The most-traded rebar for January delivery on the Shanghai Futures Exchange fell as low as 3,614 yuan ($570) a tonne, before closing nearly 1 percent lower at 3,626 yuan.
Rebar, or reinforcing steel bar, used in construction, dropped 2.3 percent for the week and is on track to stretch its monthly losing streak to a fifth straight month in August.