China's steel, iron ore markets retreat post-holidays as outlook cools

Platts-assessed domestic rebar and hot-rolled coil spot prices fell 1.84% and 1.37%, respectively, to Yuan 3,730 per metric ton ($528/t) and Yuan 3,590/t on Oct. 8, S&P Global Commodity Insights data showed.

Meanwhile, the Platts 62% Fe Iron Ore Index, or IODEX, dropped to $104.65/dmt CFR China on Oct. 8, down 4.45% day on day.

"After a sharp increase in steel and iron ore prices from Sept. 24 to Sept. 30 -- ignited by the recent fresh monetary stimulus, people are now finally realizing that nothing has changed on the steel demand side, so the retreat in steel and iron ore prices in (the) post-holiday market is within expectation," said a mill source, referring to the Golden Week holidays from Oct. 1-7.

Several market participants said even with further monetary or fiscal stimulus, China's steel demand is unlikely to trend upward due to a long-term structural downturn in the property sector.