* Data shows China produced record tonnage in April
* China's Xi pledges $124 billion for Belt and Road
* Physical iron ore prices rise, lifting futures
BEIJING, May 15 Chinese steel rebar prices fell
on Monday after data showed the world's top producer churned out
a record tonnage for a second month as mills raced for profits,
stoking concerns about a global glut even as Beijing ramps up
its effort to curb excess.
Iron ore rose slightly, in line with a rise in the spot
physical market and recovering some ground lost last week. Last
week, futures prices fell for a seventh straight week.
The most-active rebar on the Shanghai Futures Exchange
settled at 2,981 yuan per tonne, down 0.63 percent as
leaders from 29 countries gathered for China's Belt and Road
forum in Beijing. Earlier in the session, it hit 2,925 yuan, its
lowest in just over a week.
On Sunday, Chinese President Xi Jinping pledged an
additional $124 billion for the ambitious initiative, which is
expected to expand investment links with Asia, Africa and Europe
and boost demand for raw materials such as steel.
Plentiful supply, however, could undermine that potential
demand despite the government's push to curb outdated,
inefficient supplies. Data showed China produced 72.78 million
tonnes of steel in April, surpassing March's record.
Some 31.7 million tonnes of capacity have closed so far this
year, 63 percent of the target for 2017, the government said on
Monday. But progress could be slow if steel prices stay high
enough to incentivise production, warned Argonaut Securities
analyst Helen Lau.
The most-active September iron ore on the Dalian Commodity
Exchange closed at 454.0 yuan a tonne, up 0.22
Iron ore for delivery to China's Qingdao port .IO62-CNO=MB
rose 1.65 percent to $61.38 per tonne on Friday, according to
Iron ore futures dropped to near four-month lows on Friday
weighed down by concerns over weak demand in the world's top
(Reporting by Josephine Mason; Editing by Miral Fahmy)