* Steel demand remains weak dues to construction slowdown
* Spot prices steady; some support from output cuts
* Weaker steel prices pressure raw materials coke, coking coal
SHANGHAI, Dec 28 (Reuters) - Chinese steel futures fell on Thursday due to slow winter demand in the world’s top consumer, putting pressure on raw materials.
The most active rebar on the Shanghai Futures Exchange dropped 1.3 percent to 3,760 yuan ($574.57) a tonne by the midday break.
“Physical demand remains tepid, and we expect to see steel product inventories pile up more as buying from end-users was thinning,” said a trader in Hangzhou, China.
Steel demand tapers off in China during winter months as construction activities slow, and prices typically drop. This winter there is some support, though, as Chinese steel mills have curbed their as part of national efforts to combat smog.
Spot rebar prices stood steady at 4,330-4,350 yuan a tonne in Shanghai on Thursday after a sharp fall of up to 400 yuan earlier this week, traders said.
On the Dalian Commodity Exchange, coking coal fell 1.8 percent to 1,293.5 yuan a tonne. Coke inched down 0.9 percent to 1,984 yuan a tonne.
Dalian iron ore edged up 0.2 percent to 518.5 yuan a tonne.
Iron ore for delivery to China’s Qingdao port .IO62-CNO=MB tumbled 4.5 percent to $72.62 a tonne on Wednesday from the previous day, according to Metal Bulletin.
$1 = 6.5440 Chinese yuan Reporting by Ruby Lian and Ryan Woo; Editing by Tom Hogue