BEIJING: China's steel and its raw material prices fell on Tuesday following a broader sell-off across risk equity assets, as investors remained cautious ahead of the U.S. Federal Reserve meeting.
Chinese President Xi called on Tuesday for the unswerving implementation of reforms on Beijing's terms but offered no new specific measures in a closely watched speech marking 40 years of market liberalisation.
Benchmark Shanghai rebar futures slipped 0.1 percent lower to 3,435 yuan ($498.16) a tonne when market closed at 0700 GMT.
A weak demand outlook also weighed on the Chinese ferrous market.
Chinese government advisers on Monday recommended that the country should lower next year's growth target to 6.0-6.5 percent as headwinds, including a trade dispute with the United States, increases risks for the economy.
That is in line with expectation from China's government consultancy who predicts steel consumption in the country to fall next year, dragged down by waning demand in the property, automobile and energy sectors.
Fitch Solutions Macro Research also said in a note it expected global steel consumption to slow the growth rates to 2.2 percent in 2019, compared with 4.2 percent in 2018 and 5.1 percent in 2017, respectively, as slowdown in China's construction-centric demand will offset a modest acceleration in developed economy demand.
Prices of raw materials used in steelmaking also edged down alongside steel products on Tuesday.
The most-active iron ore futures for May delivery on the Dalian Commodity Exchange eased after soaring to nearly a four-week-peak in the previous session. It settled down 0.4 percent at 486 yuan a tonne.
Dalian coking coal futures fell 2.5 percent to 1,216 yuan and coke contract went down 2.2 percent at 1,984 yuan.
Comments
Comments are closed for this article.