* Steel output cuts, firm demand boost Shanghai futures
* Iron ore falls as steel output curbs dent appetite
SHANGHAI, March 2 Chinese steel futures rose on
Thursday after two consecutive days of losses, with recovering
demand and production curbs in the world's top producer of the
metal underpinning prices.
Steel demand in China improved in March as construction
activities picked up amid warm weather, while steel mills in
some northern regions were ordered to cut output to reduce smog.
Rebar is mainly used for construction.
"Rebar is the most safe commodity futures for now as rebar
supplies have been hard hit by the government's environmental
crackdown, and now demand is increasing," said Li Wenjing, an
analyst with Industrial Futures in Shanghai.
However, she also expects the gains to ease after the
production cuts in Tangshan, a leading steel-producing city, end
The most active rebar on the Shanghai Futures Exchange
climbed 0.5 percent to 3,533 yuan ($513.26) a tonne by
the midday break.
Iron ore on the Dalian Commodity Exchange dipped
0.2 percent to 693.5 yuan a tonne.
Traders said prices of iron ore, a main steelmaking
ingredient, have been supported by demand for steel and its
strengthening prices, but that gains have been capped due to
pressure from the production cuts at mills.
On the Dalian Commodity Exchange, coking coal rose
0.8 percent to 1,308 yuan a tonne, and coke futures
gained 1.3 percent to 1,802 yuan a tonne.
($1 = 6.8835 Chinese yuan)
(Reporting by Ruby Lian and Josephine Mason; Editing by Tom