June 11, 2020 / 3:02 AM / a month ago

Shanghai steel rebar drifts down on unfavourable weather disruptions

* Construction steel rebar dips in early trade

* Dalian iron ore futures pick up

* Brazil prosecutors expand probe into Vale amid coronavirus containment

BEIJING, June 11 (Reuters) - China’s construction steel rebar futures edged lower on Thursday, down for a third straight session, on worries inclement weather could disrupt construction activities.

China Meteorological Administration extended blue alert on expected rainstorm in middle-to-south regions in the coming few days.

The most-traded steel rebar on the Shanghai Futures Exchange , for October delivery, dipped 0.2% to 3,596 yuan ($509.22) a tonne by 0215 GMT.

CITIC Securities expects demand for steel products to drop in June-July, while supply might remain resilient.

“Raw material prices could peak in the third quarter ... steel profits could bottom out in August-September with demand recovering after the rainy season,” it wrote in a note.

Benchmark iron ore futures on the Dalian Commodity Exchange , for September delivery, rose 0.5% to 767 yuan a tonne after Brazil prosecutors expanded probe into mining giant Vale’s efforts to shield workers from the coronavirus.

Other steelmaking ingredients were mixed, with Dalian coking coal dropping 1.1% to 1,182 yuan a tonne, while Dalian coke gained 0.5% to 1,967 yuan a tonne.

FUNDAMENTALS

* Hot-rolled coil futures, used in the manufacturing sector, rose 0.5% to 3,549 yuan a tonne.

* Shanghai stainless steel, for August delivery, dipped 0.4% to 12,830 yuan a tonne.

* Spot prices for iron ore with 62% iron content for delivery to China was unchanged at $105 per tonne on Wednesday.

* The Baltic Exchange’s main sea freight index rose 7% on Wednesday, propelled by higher capesize rates, on rising demand from China for iron ore.

$1 = 7.0618 Chinese yuan Reporting by Min Zhang and Tom Daly, Editing by Sherry Jacob-Phillips

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