* Sell-off threatens months-long speculative rally
* BarCap sees more downside, puts avg iron ore at $70/t in
* China iron ore stocks rise again
BEIJING, March 27 Chinese steel and iron ore
futures sank to their lowest in more than six weeks on Monday,
extending a five-day losing streak as speculative investors
continued their exodus amid mounting concerns about demand and
Iron ore had its biggest one-day drop since mid-December as
stockpiles at major ports in China, the world's top steelmaker,
rose for a second week, topping 132 million tonnes last week,
the highest since at least 2004, according to SteelHome
The most-active rebar contract on the Shanghai Futures
Exchange closed down 2.89 percent at 3,057 yuan
($444.57) per tonne.
During the session, it fell as far as 3,003 yuan, its lowest
since Feb. 10 as funds and other speculative investors exited
long positions and placed fresh bearish bets.
Iron ore on the Dalian Commodity Exchange plunged
5.26 percent to 550.0 yuan ($79.98) per tonne, having touched
541 yuan earlier, its weakest since Feb. 8.
"China's steel market is showing signs of price weakness and
the move of (hot-rolled-coil) prices into a discount relative to
domestic rebar prices is a sign of further weakness ahead," said
"We feel that there is further downside risk for the
benchmark (iron ore) price."
The bank expects iron ore prices to average $70 per tonne in
the second quarter, down from around $80 currently.
The latest sell-off threatens the months-long rally and was
triggered by concerns about demand from the building sector
after Beijing imposed fresh curbs on lending in real estate in
China last week.
Last week, rebar lost 5.5 percent and iron ore fell 7
percent, the biggest weekly drop for both contracts since
($1 = 6.8763 Chinese yuan)
(Reporting by Josephine Mason; Editing by Richard Pullin and