Iron ore futures extended losses at the morning session, despite some rallies later to recover the loss grounds before the close.
The futures of Dalian Commodity Exchange (DCE) for January delivery then fell by 1.46% day-on-day or down RMB 10.50 to RMB 711/mt, during the day trading session on Tuesday.
The rebar future plunged sharply at the afternoon session by 3.48% day-on-day or up RMB 198 to RMB 5,492/mt, during the day trading session.
Poor economic data showing slowdown in China
Market sentiments were also dampened by poor Chinese economic data including slower growth in retail sales and industrial productions during the month of August.
As the country’s industrial production growth recorded 5.3% in August, lower than market expected growth at 5.8%.
Then, the monthly retail sales grew by a mere 2.5% in August, much lower than the projection of 7% growth, and the 8.5% growth recorded in July.
Lower Chinese steel production in August
China’s crude steel output slumped by 13.2% on-year to 83.24 million mt for August, according to National Bureau of Statistics report dated on Sep 15.
It was the fourth straight month of lower steel productions, due to the ongoing steel output cuts being implemented across provinces.
As such, Mysteel’s survey found that around 23 out of 59 rebar mills had suspended their operations in Jiangsu province, due to maintenance periods and under energy-saving programme to curb power consumption.