July 3, 2018 / 2:36 AM / 4 months ago

Shanghai rebar slips for second day on rising stockpiles

* Rebar stocks at Chinese traders up after 14-week drop -SteelHome

* Coking coal, coke also down; iron ore steady

By Manolo Serapio Jr

MANILA, July 3 (Reuters) - Shanghai rebar futures fell for a second session on Tuesday as rising inventories of the construction steel product in China suggested softer demand in the world’s topp consumer.

Stocks of rebar at Chinese traders rose about 29,000 to 4.72 million tonnes on Friday, increasing after a 14-week decline, data collected by SteelHome consultancy showed. SH-TOT-RBARINV

A similar gauge of rebar inventories by Mysteel consultancy showed they have fallen for a second straight week last week following a 14-week drop.

The most-traded October rebar contract on the Shanghai Futures Exchange was down 0.5 percent at 3,758 yuan ($560) a tonne by 0222 GMT.

Hot weather in China’s northern region and rains in the eastern and southern areas have curbed construction activity, and with it demand for steel, during a typically weak season for consumption, traders said.

The prices of rebar and steelmaking raw materials iron ore and coking coal all slid on Monday following data showing growth in China’s manufacturing sector cooled in June.

The slower manufacturing growth reflected a decline in export orders amid a widening trade dispute between China and the United States.

“Looking ahead, new export orders may continue to worsen as the trade escalation has no signs of abating, which will eventually weigh on China’s overall manufacturing activities,” said analyst Helen Lau at Argonaut Securities.

“In view of this outlook, we expect China’s government to dole out more monetary easing and stimulus measures to protect economic growth,” said Lau, adding she continues to prefer the steel sector as China’s supply-side reform will help counter the economic headwinds.

Coke on the Dalian Commodity Exchange fell 1.9 percent to 2,026.50 yuan a tonne and coking coal dropped 1.1 percent to 1,164 yuan.

Iron ore gained 0.3 percent to 466.50 yuan.

Spot iron ore for delivery to China’s Qingdao port .IO62-CNO=MB slipped 0.7 percent to $64.54 a tonne on Monday, according to Metal Bulletin. ($1 = 6.7066 Chinese yuan) (Reporting by Manolo Serapio Jr.; editing by Richard Pullin)

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