* Rebar, iron ore retreat further from multi-year peaks
* Investors feel prices have surged too high, too fast - ANZ
By Manolo Serapio Jr
MANILA, Dec 15 Chinese iron ore futures dropped
for a second session on Thursday as investors pared bullish bets
after lifting it, along with steel, to multi-year highs.
Improved steel supply in parts of China prompted some
traders to cut price offers, dragging down rates on raw material
iron ore that had piggybacked on the strength in the steel
The most-active rebar on the Shanghai Futures Exchange
closed flat at 3,413 yuan ($492) a tonne. Earlier in
the session, it fell as low as 3,304 yuan. The construction
steel product touched 3,557 yuan on Monday, its highest since
Iron ore on the Dalian Commodity Exchange slipped
1.1 percent to end at 608.50 yuan per tonne. It climbed to a
near three-year high of 657 yuan on Monday.
Both commodities fell on Wednesday despite data suggesting
that Chinese banks looked set to lend a record amount this year
as Beijing boosts the economy to meet economic growth targets.
The decline indicates that "investors felt the price had
surged too high, too fast," ANZ analysts said in a note.
China's efforts to curb overcapacity in its steel sector and
stimulate economic growth with increased infrastructure spending
had fueled an 88-percent rally in Shanghai rebar futures this
But data released on Tuesday showed China's crude steel
output rose for a ninth straight month in November, suggesting
that Beijing's closure of excess capacity has not stopped mills
from producing more to chase rising prices.
The retreat in futures again pulled back spot iron ore below
$80 a tonne after staying above that level for five days.
Iron ore for delivery to China's Qingdao port .IO62-CNO=MB
slid 5.1 percent to $79.18 a tonne on Wednesday, according to
Metal Bulletin. The spot benchmark peaked at $83.58 on Monday,
its strongest since October 2014.
An increase in the supply of billet in Tangshan led to
prices for the semi-finished steel product dropping late on
Tuesday, said Metal Bulletin which tracks Chinese trades.
Rebar futures followed on Wednesday, which resulted in
buyers delaying their procurement plans, it said.
($1 = 6.9348 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Joseph Radford and