BEIJING/MANILA: Futures for Chinese ferrous raw materials tumbled on Monday, undermined by big drop in steel production and expectations of more output cuts in coming months, while steel prices were also hurt by stagnant downstream consumption.
Crude steel output in the world's top producer of the metal fell for the fifth straight month to 71.58 million tonnes in October, and logged the first decline of year-to-date production in at least five years amid Beijing's curbs, according to the statistics bureau.
15 to reduce air pollutant emissions, said state media, following the environment ministry's requirement issued in October on steel winter output cuts. The outlook of fewer steel productions has clouded demand for steelmaking ingredients. Benchmark iron ore futures on the Dalian Commodity Exchange, for January delivery, fell 1.7% to 544 yuan ($85.24) per tonne as of 0320 GMT.
Coking coal prices dropped 11.5% to 1,993 yuan a tonne and coke futures on the Dalian bourse slumped 8.5% to 2,740 yuan per tonne. Meanwhile, sluggish downstream consumption - especially the property market - has overshadowed steel prices.
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