Construction steel rebar on the Shanghai Futures Exchange fell 1%, while hot-rolled coil slipped 0.3%. Still, Shanghai's most-traded steel contracts are among this year's top gainers in China's ferrous metals complex.
"On top of that, the seasonal restocking cycle of national steel inventories is drawing to a close, with the growth in stocks slowing this week, meaning that some mills will soon start to moderate capacity utilization rates," he said.
After the holiday, Widnell said "leading indicators will be the pace at which warehouses restock steel, rebounding blast furnace capacity utilization rates, and slower arrivals of Australian and Brazilian iron ore - all of which should be price supportive".
Financials ticked down 0.2% even after the country's banking regulator said banks would no longer have to hold a portion of their profit back starting next year, raising prospects for higher dividends.