SYDNEY, April 10 Concerns that China is
producing too much steel put pressure on industrial raw
materials markets on Monday, with key futures indicators, iron
ore, coke and rebar all trading lower.
"We saw steel output up 6 percent in January and February
already, and the expectation is that demand will not be able to
absorb all that," Commonwealth Bank of Australia analyst Vivek
"There is simply too much steel out there, we're seeing iron
ore fall as a result of that," Dhar said.
The most-active rebar on the Shanghai Futures Exchange
was down 1.47 percent at 3,013 yuan ($436) a tonne by
Rebar's retreat swept iron ore lower, with the contract for
September delivery on the Dalian Commodity Exchange
down 2.7 percent to 520 yuan a tonne.
Stocks of imported iron ore at China's port stood at 131.2
million tonnes as of Friday, according to SteelHome.
SH-TOT-IRONINV That is more than one-tenth of China's
estimated imports of iron ore this year, according to
Australia's Department of Industry, Innovation and Science.
"The market sees china needing less iron ore. This combined
with increasing domestic production is putting pressure on the
price," Dhar said.
Dalian coking coal was also weaker, down 1.8
percent to 1,274 yuan, while coke - made from coking
coal - slid 1.5 percent to 1,818 yuan.
($1 = 6.9040 Chinese yuan)
(Reporting by James Regan; Editing by Amrutha Gayathri)