UPDATE 1-China iron ore, steel futures rangebound; post weekly losses

(Adds detail; Updates with closing prices)

BEIJING, Aug 6 (Reuters) – Chinese steel and iron ore futures traded in tight ranges on Friday with all recording weekly declines on weak seasonal demand and speculation this week about a possible easing of controls on output.

Benchmark iron ore futures on the Dalian Commodity Exchange , for September delivery, ended down 1.3% to 895 yuan ($138.42) per tonne, following a drop in spot 62% iron ore which plunged $11 to $174.5 per tonne on Thursday. SH-CCN-IRNOR62

For the week, iron ore futures plunged 12.9%, the biggest weekly drop since the week ended Feb. 28, 2020.

“Iron ore and steel prices have started showing signs of weakness after a long-standing rally, with iron ore falling significantly in the past month,” Fitch Solutions wrote in a note.

“Going forward, an improvement in supply and lower consumption by downstream layers will cap price gains for both,” it said.

Weekly consumption for major steel products in China as of Aug. 5 fell 2.5% to 9.86 million tonnes from a week earlier, data from Mysteel consultancy showed.

Construction steel rebar on the Shanghai Futures Exchange for October delivery closed down 1.0% at 5,379 yuan per tonne.

Hot rolled coils declined 0.7% to 5,772 yuan per tonne.

On the week, rebar was down 6.2% and hot rolled coils fell 6.4%.

FUNDAMENTALS

* Dalian coking coal futures rose 1.7% to 2,375 yuan a tonne.

* Coke futures inched up 0.5% to 2,980 yuan per tonne.

* Shanghai stainless steel futures, for September delivery, edged 0.8% higher to 19,015 yuan a tonne.

Source: Read Full Article