Chinese hot rolled coils and rebar futures fell more than 4% on Wednesday as concerns over steel output cuts eased and construction activities are expected to slow in the coming rainy season.
The most-traded hot rolled coils on the Shanghai Futures Exchange, used in the manufacturing sector, dropped 4.7% to 5,706 yuan ($887.73) a tonne by 0330 GMT, the lowest since April 30.
Construction-used steel rebar, for October delivery, declined 4.4% to 5,376 yuan a tonne.
“While there is no further policy on curtailing (steel) production, trading has shifted from expectations to reality,” GF Futures wrote in a note.
With the downstream sector close to entering an off-peak season, it will be hard for rebar to scale new peaks as prices are already high, GF Futures said.
China’s new construction starts in the first four months gained 12.8% from a year earlier, data from the National Bureau of Statistics showed. That compared with a growth of 28.2% in the first quarter.
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