Chinese steel and iron ore futures fell on April 24, pressured by concerns over weak demand in the country's south where the rainy season is about to kick off.
The most-active construction steel rebar contract on the Shanghai Futures Exchange dipped 1% to 3,741 yuan/t ($556.53/t) as of 0206 GMT.
Hot-rolled coil, a manufacturing-grade steel product, slid 0.7% to 3,686 yuan/t.
"Trading on the spot market is getting tepid ... with increasing rainfall in southern China, demand from downstream sectors is starting to show signs of weakening," said analysts from CITIC Futures in a note in Mandarin.
Construction activity in southern regions typically slows down from May due to continuous rains and high temperatures.
Analysts also warned of rising output in the coming weeks amid easier production restrictions in the top steelmaking city of Tangshan, which could add to downward pressure on prices. The market expects tighter restrictions from next month.
Utilization rates at steel mills in China reached 70.03% last week as of April 19, the highest level since July 20, 2018, data showed.
Prices of the most-traded iron ore futures on the Dalian Commodity Exchange also fell on April 24, slipping 0.5% to 626 yuan/t.
Steel mills in Tangshan are still under a temporary second-level smog alert, which requires at least a 40% operational restriction on sintering machines. The alert is due to be lifted on April 25.
Coking coal prices rose 0.6% to 1,345 yuan/t, buoyed by concerns over tight supply in the coal-mining heartland of Shaanxi and Inner Mongolia, where local authorities are carrying out safety inspections at coal mines.
The coke contract 1909 edged up 0.2% to 2,044 yuan/t.
Source:sxcoal
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