* Shanghai rebar has lost 11 pct in nine sessions
* Spot iron ore drops to lowest since October
* Dalian iron ore futures slip after two-day spike
By Manolo Serapio Jr
MANILA, June 6 Chinese steel futures fell for a
ninth straight day on Tuesday, pressured by expectations of slow
demand that have also dragged spot iron ore prices to their
weakest level in nearly eight months.
Construction activity typically eases in China during
summer, curbing steel consumption in the world's top user and
producer of the material.
The most-active rebar on the Shanghai Futures Exchange
closed down 1 percent at 2,959 yuan ($436) a tonne. The
construction steel product touched 2,906 yuan earlier, its
lowest since May 5, and has lost 11 percent over the nine
sessions to Tuesday.
Expectations of slower seasonal steel demand in China and
moderating growth in property development have pulled down steel
prices, said Ric Spooner, chief market analyst at CMC Markets.
"We're also seeing a bit of wind-back in speculative
interest given that authorities have moved to tighten up on
liquidity to some extent," said Spooner.
Weaker steel prices have curbed Chinese steel mills'
appetite for raw material iron ore.
Iron ore for delivery to China's Qingdao port .IO62-CNO=MB
dropped 3.3 percent to $55.90 a tonne on Monday, the lowest
since Oct. 10, according to Metal Bulletin.
It was the steepest single-day decline since May 26 for the
spot benchmark which touched $94.86 in February.
"Steel mills were also reportedly more concerned with paying
off quarterly debts than procuring additional iron ore,"
Commonwealth Bank of Australia said in a note.
Adding pressure to spot prices, iron ore futures in China
slipped on Tuesday after a two-day spike.
"Spot iron ore prices remained under pressure as steel
futures continue to drift towards the support level of around
2,800 yuan. I think any upside in the Dalian price may be fairly
limited," said Spooner.
The most-traded iron ore on the Dalian Commodity Exchange
ended 0.8 percent lower at 432 yuan per tonne.
($1 = 6.7938 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Joseph Radford and