New | Shanghai rebar futures drop to record low
January contract falls to 1,839 yuan a tonne amid tepid demand in slowing economy
Chinese steel futures fell to a record low on Monday amid tepid demand from the world's top consumer of the steelmaking ingredient.
The most-traded January rebar futures on the Shanghai Futures Exchange fell to 1,839 yuan a tonne, the lowest since the contract began in early 2009, before edging back above 1,900 yuan. The contract closed 1.9 per cent lower at 1,920 yuan.
China's steel consumption typically improves in September and October along with construction activity after the summer lull. But a slowing economy may mute the pickup and cap any gains in prices.
"Demand hasn't started to pick up yet, while steel mills are expected to resume output after the interruption during the parade," said Xia Junyan, an analyst with Everbright Futures.
Beijing held a parade for the 70th anniversary of the end of the second world war and curbed operations for heavy industries including steel mills in surrounding regions of the capital.
A big decline in steel prices has weighed on iron ore.