Reuters reported that China steel futures sagged to a contract low on Thursday as demand in the world's top consumer showed no signs of recovery.

Most traded January Shanghai rebar futures hit a contract low of CNY 3,819 a tonne on Thursday. It closed down 1 percent at CNY 3,825.

Since the January contract became the most active last week, the price has set a contract low in seven sessions.

Spot steel prices have similarly dropped, with steel billet in China's key Tangshan area at CNY 3,460 per tonne on Wednesday, down more than 3 percent from last week.

China's slowing economy, which grew at its weakest pace in three years in the second quarter, along with a seasonal lull in demand during the summer months have pressured steel prices, prompting mills to curb output.

Source - Reuters

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