BEIJING: Chinese construction steel rebar futures ticked lower for a third straight session on Thursday on worries that inclement weather could disrupt construction activities.
Rainstorms are expected in middle-to-south regions in the coming few days, the China Meteorological Administration said.
The most-traded steel rebar on the Shanghai Futures Exchange , for October delivery, closed down 0.2% at 3,596 yuan ($508.64) per tonne.
CITIC Securities said it expects demand for steel products to drop in June-July, although supply might remain resilient. "Raw material prices could peak in the third quarter steel profits could bottom out in August-September with demand recovering after the rainy season," it wrote in a note.
Benchmark iron ore futures on the Dalian Commodity Exchange , for September delivery, also extended losses into a third straight trading day, ending down 0.6% at 759 yuan a tonne.
Spot prices for iron ore with 62% iron content for delivery to China were unchanged at $105 per tonne on Wednesday.
Hot-rolled coil futures edged up 0.2% to 3,538 yuan a tonne on Thursday after China reported a second consecutive monthly growth in auto sales in May.
Other steelmaking ingredients fell, with Dalian coking coal losing 0.8% to 1,186 yuan a tonne and coke down 0.1% at 1,955 yuan a tonne.
Shanghai stainless steel, for August delivery, dipped 0.5% to 12,820 yuan a tonne.
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