* Shanghai rebar down nearly 3 pct
* Coking coal, coke also slide again
By Manolo Serapio Jr
MANILA, June 1 Chinese iron ore futures fell
more than 3 percent to a six-month low on Thursday, adding to a
6-percent slide in the previous session amid persistent concern
over surplus supply that has pushed the market well into bear
market territory this year.
Spot iron ore prices have dropped 40 percent from this
year's peak, closing out May at about $57 a tonne, the weakest
in more than seven months.
"Oversupply concerns were driven by strong seaborne supply
and subdued restocking demand" after China's public holidays,
Commonwealth Bank of Australia analyst Vivek Dhar said in a
Chinese markets reopened on Wednesday after public holidays
on Monday and Tuesday.
The most-active iron ore contract on the Dalian Commodity
Exchange was down 3.7 percent at 422.50 yuan ($62) a
tonne by 0216 GMT. The steelmaking commodity earlier hit 419.50,
its lowest since November 2016.
"Availability is not an issue, so fundamentally that is the
problem," said Kelly Teoh, broker at Clarksons Platou Futures.
"Also we're coming towards the summer where construction is
going to pace down and globally when you look at things, we're
not as robust as we were."
Steel consumption in China, the world's biggest consumer and
producer, typically eases during summer along with construction
Iron ore for delivery to China's Qingdao port .IO62-CNO=MB
slid 2.5 percent to $57.02 a tonne on Wednesday, the lowest
since mid-October, according to Metal Bulletin.
The spot benchmark lost 17 percent in May, its steepest
monthly decline in a year.
On the Shanghai Futures Exchange on Thursday, construction
steel product rebar fell 2.9 percent to 3,090 yuan per
Steelmaking coal also extended losses. Coking coal on the
Dalian exchange was last down 5 percent at 941.50 yuan
a tonne, after falling as far as 935.50 yuan, its lowest since
October. It dropped by the exchange-set limit of 9 percent on
Coke declined 4.2 percent to 1,423 yuan a tonne.
($1 = 6.7946 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Joseph Radford)