* Some mills have purchased iron ore ahead of Sept, Oct
* Iron ore buyers in physical market "running for the hills"
* China Aug steel exports at 6-month low, iron ore imports
By Manolo Serapio Jr
MANILA, Sept 8 Chinese steel futures extended
losses to touch a six-week trough on Thursday, pressured by
increased supply as mills around the eastern city of Hangzhou
resume production after the G20 summit.
Those mills were ordered by government authorities to
suspend output ahead of the event earlier this week to clear the
"Steel is pressured by a short-term rise in additional
supply post-G20," said a Shanghai-based iron ore trader.
The most-traded rebar, a const ruction steel product, on the
Shanghai Futures Exchange closed down 1.4 percent at
2,338 yuan ($351) a tonne, adding to Wednesday's 4-percent
Rebar touched a low of 2,321 yuan, its weakest since July
The weakness in steel prices helped drag down raw material
iron ore, with the most-active January iron ore on the Dalian
Commodity Exchange ending down 1.7 percent at 408.50
yuan a tonne.
Iron ore fell as far as 402.50 yuan, the lowest since Aug.
1, having slid 3.7 percent on Wednesday.
Talk of possibly more mills being shuttered in China's major
steelmaking city of Tangshan as the government steps up an
environmental crackdown to address overcapacity also curbed
demand for forward iron ore cargoes, said the Shanghai trader.
"Several of our customers already have enough stocks until
mid-October after recent purchases," he added.
Chinese markets are shut for the Mid-Autumn festival on
Sept. 15-16 and on Oct. 3-7 for the National Day holiday.
Iron ore for delivery to China's Tianjin port .IO62-CNI=SI
eased 0.5 percent to $58.30 a tonne on Wednesday, the lowest
since July 27, according to The Steel Index (TSI).
The declines in ferrous futures sent buyers of physical iron
ore cargoes "running for the hills," said TSI, which compiles
information on deals done in China.
Data on Thursday showed China's iron ore imports slipped 0.8
percent in August from a near record level in the previous
month, while steel exports dropped to the smallest in six
($1 = 6.6668 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Joseph Radford and