November 5, 2018 / 3:17 AM / 2 years ago

Shanghai rebar cuts losses amid firm demand, China economic push

* Rebar futures recover from three-week low

* China opens trade fair as Xi says economy is stable

* China’s services sector growth slowest in 13 months

By Manolo Serapio Jr

MANILA, Nov 5 (Reuters) - Shanghai rebar steel futures trimmed losses after earlier hitting a three-week low on Monday amid firm demand in top consumer China and efforts by the government to reinvigorate the world’s No. 2 economy following a slew of downbeat data.

The most-traded January rebar on the Shanghai Futures Exchange was off 0.3 percent at 4,037 yuan ($585) a tonne by 0240 GMT, after earlier falling more than 1 percent to a session low of 4,002 yuan, its weakest since Oct. 11.

Hot rolled coil futures climbed 1.5 percent to 3,758 yuan per tonne.

Economic risks are mounting in China with a private survey on Monday showing its services sector posted its slowest growth in 13 months in October.

The downbeat services number followed a private survey last week that showed China’s manufacturing sector barely grew last month after stalling in September.

“There’s a lot of uncertainty in the Chinese economy,” said a Shanghai-based trader. “But it’s good that the Chinese government is trying to inject some energy into the economy like the import expo in Shanghai.”

Chinese President Xi Jinping promised to lower import tariffs and continue to broaden market access, at the opening of a week-long trade expo seen as an attempt by Beijing to counter mounting criticism of its trade and business practices.

Chinese steel demand also remains firm with construction work still ongoing in many cities ahead of winter, said the Shanghai trader.

Iron ore on the Dalian Commodity Exchange rose 0.5 percent to 513.50 yuan a tonne and coking coal advanced 0.7 percent to 1,372 yuan.

Coke was the outperformer among steelmaking raw materials, jumping 2.6 percent to 2,389 yuan.

$1 = 6.9061 Chinese yuan Reporting by Manolo Serapio Jr.; editing by Richard Pullin

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