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Print[Ferro-Alloys.com] Key China rebar futures hit a contract low on July 11th, dogged by soft demand in the world's top steel consumer which has curbed appetite for raw material iron ore, keeping bids for spot cargoes weak.
Major miners such as Vale and BHP Billiton are offering several cargoes on the spot market, although traders expect the material to be sold at prices lower than previous deals.
The most-traded rebar contract for January delivery on the Shanghai Futures Exchange fell as low as 3,906 yuan ($610) per tonne, before closing down 0.3 percent at 3,928 yuan.
Demand for steel and iron ore in China is taking a hit along with the overall economy which likely grew in the second quarter at its slowest pace in three years. The government will release the April-June gross domestic product data on Friday.
"We are seeing more offers and bids today, but the bids suggest the mills are not in a hurry to buy. Some would buy if the prices are acceptable to them," said another Shanghai-based trader.
The majority of Chinese steel mills are still purchasing more iron ore from stockpiles at ports which are cheaper than fresh cargoes amid uncertainty on when steel demand will pick up.
China, which buys around 60 percent of the world's iron ore, bought 8.7 percent less of the raw material in June than May, the fourth month-on-month decline in imports this year, data showed on Tuesday.
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