BEIJING: Chinese ferrous futures fell on Tuesday with raw material prices opening more than 3% lower and steel products also declining on worries over a supply glut due to a likely production recovery.

The market was concerned that a recovery in consumption may not match a quick resumption of steel production, CITIC Futures analysts wrote in a note, after authorities quelled rumours of any impending massive shutdown of industrial firms in the northern part of the country.

The government also recently reiterated to promote healthy development of the property market, reinforcing its stance that “housing is for living, not for speculation”, raising concerns on medium- to long- term demand for industrial metals.

Spot prices of iron ore with 62% iron content for delivery to China fell $1 to $126.5 a tonne on Monday, according to SteelHome consultancy. Dalian coking coal futures plunged 3.9% to 2,153 yuan per tonne and coke prices dived 3.7% to 2,917 yuan a tonne. Steel rebar for construction use on the Shanghai Futures Exchange slipped 1% to 4,342 yuan per tonne.

Hot rolled coils on the Shanghai bourse, used in the manufacturing sector, dipped 0.5% to 4,455 yuan a tonne. Shanghai stainless steel futures inched down 0.1% to 16,830 yuan per tonne.