China steel futures fell over 2 percent on Monday to a record low of around 3,650 yuan ($570) a tonne, pressured by high stockpiles and tepid demand with steel mills warning prices are likely to weaken further.
The most-traded January Shanghai rebar futures hit a fresh contract low of 3,652 yuan a tonne after falling 3.6 percent last week. It closed at 3,694 yuan per tonne, down 1.5 percent from the previous day.
Steel demand in the world's largest steel consumer looks unlikely to pick up in the near term, so China's biggest steel mills have cut their prices for August to scramble for low orders, which may push down prices further.
End users are on their way to hit the bottom with few signs of recovery, so steel demand is not likely to improve in near term as large-scale stimulus policy is unlikely to be launched.
China's domestic steel market will see steeper declines in prices under the circumstances that fundamentals are hardly improved, said market sources.
Source: Reuters
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