Steel and iron ore futures in China fell to their lowest ever on Monday, extending steep losses this month caused by abundant supply and slow demand ahead of the week-long National Day holiday that kicks off on Wednesday.
Reuters reported Industrial profits in China dropped 0.6 percent in August from a year before, reversing from a 13.5% rise in July, the latest sign of weakness in the world’s No. 2 economy.
The most traded rebar for January delivery on the Shanghai Futures Exchange was down 2.3% at 2,530 CNY ($412) a ton, after falling to a record low of 2,523 yuan earlier.
The January iron ore contract on the Dalian Commodity Exchange dropped 2.5% to 545 CNY per ton, just off a contract low of 542 CNY touched during the session.
Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($136.90) and a low price of CNY 830.00 ($135.27) per dry metric ton. The price of Chinese HRC was unchanged at CNY 3,030 ($493.84) per metric ton. The price of Chinese coking coal saw little movement at CNY 1,390 ($226.54) per metric ton.
The steel billet cash price saw little price change last Friday on the LME at $450.00 per metric ton. The 3-month price of steel billet saw essentially no change on the LME for the fifth day in a row, remaining around $455.00 per metric ton.
Following two days of downward movement, the 3-month price of the US HRC futures contract held steady at $639.00 per short ton. The spot price of the US HRC futures contract ended a two-day climb, settling at $663.00 per short ton.