China steel falls to one-month low on worries over rising supply
MANILA, Nov 8 (Reuters) - Shanghai rebar steel futures dropped to the lowest in a month on Thursday, pressured by expectations that supply will rise as mills ramp up output amid more lenient production curbs in winter.
Data from the China Iron and Steel Association showed that average daily crude steel production at its member mills stood at 1.97 million tonnes over Oct. 1-20, nearly matching September’s 1.98 million tonnes.
China’s winter heating season typically runs from mid-November through mid-March and the central government, as part of its anti-smog campaign, has allowed cities and provinces to set their own output restrictions this year, scrapping last season’s blanket curbs.
The most-active January rebar on the Shanghai Futures Exchange touched a session low of 3,910 yuan ($564) a tonne, its weakest since Nov. 8, and was down 0.7 percent at 3,913 yuan by midday break.
Mills are raising steel output while profits remain strong, pushing more supply into the market, said an iron ore trader in Shanghai.
