MANILA, July 31 (Reuters) - China’s steel rebar and iron ore futures surrendered gains to end little changed on Wednesday, after an official survey showed the nation’s factory activity shrank for the third month in a row in July, a trend some analysts say may continue.
While China will step up efforts to boost demand and support the economy, it will not use the property market as a form of short-term stimulus, a top decision-making body of the ruling Communist Party said on Tuesday.
The most-active construction steel rebar on the Shanghai Futures Exchange, for delivery in October, ended down 0.1% at 3,891 yuan ($565.25) a tonne, after rising 1% earlier in the session.
Hot-rolled steel, used in cars and home appliances, was up 0.2% at 3,806 yuan a tonne, well off the day’s peak at 3,840 yuan.
Wednesday’s weak manufacturing reading underlines the growing strains on the world’s second-biggest economy as the Sino-U.S. trade war hits business profits, confidence and investment.
Steel futures rose earlier in the session amid market talk that China’s top steelmaking city of Tangshan will extend its anti-smog production curbs throughout August.
Tangshan had stepped up anti-pollution measures over July 21 to 31 to meet its air quality targets, requiring some steel producers to curb their operations by up to 70%.
