June 26, 2018 / 2:23 AM / 9 months ago

Shanghai rebar hits 4-wk low on trade tensions, high stocks

* China steel stockpiles rise after 14-week decline

* Coke futures drop 4 pct to lowest in almost 3 weeks

By Manolo Serapio Jr

MANILA, June 26 (Reuters) - Shanghai rebar steel futures fell to their lowest level in nearly four weeks on Tuesday, with risk appetite weakened by escalating trade tensions between the United States and its trading partners.

Conflicting signals from the Trump administration over proposed restrictions on foreign investment in U.S. technology companies, along with news that recently imposed import tariffs are starting to disrupt supply chains, sent global stock markets tumbling on Monday.

U.S. Treasury Secretary Steven Mnuchin has said that forthcoming investment restrictions from the department will not be specific to China, but would apply “to all countries that are trying to steal our technology”.

“The abundance of mixed and no less confusing signals are causing massive consternation across all asset classes,” said Stephen Innes, head of Asia Pacific trading at brokerage OANDA.

The most actively traded October rebar on the Shanghai Futures Exchange was down 1.8 percent at 3,674 yuan ($561) a tonne by 0203 GMT.

The construction steel product earlier touched 3,666 yuan, its weakest since May 31.

A spike in stockpiles of Chinese steel products after 14 straight weeks of decline, also weighed on sentiment, suggesting softer steel demand in the world’s top consumer.

Inventories of steel products rose 110,000 tonnes to 10.1 million tonnes on Friday, data from Mysteel consultancy showed.

Among steelmaking raw materials, coke futures on the Dalian Commodity Exchange were the hardest hit, falling as much as 4.1 percent to 2,020 yuan per tonne, the lowest since June 7.

Coking coal, the raw material for coke, dropped more than 3 percent to a four-week trough of 1,162.50 yuan. Iron ore slid 1.1 percent to 459.50 yuan.

Top iron ore miners Vale and BHP said they and Samarco have signed a deal with Brazilian authorities that settles a 20 billion reais ($5.3 billion) lawsuit related to a 2015 dam burst that killed 19 people.

BHP said the agreement also sets a two-year timeline to reach a settlement over a separate 155 billion reais lawsuit, which will remain suspended while the parties continue to negotiate.

Spot iron ore for delivery to China’s Qingdao port .IO62-CNO=MB rose 0.2 percent to $65.49 a tonne on Monday, according to Metal Bulletin. ($1 = 6.5424 Chinese yuan) (Reporting by Manolo Serapio Jr. Editing by Joseph Radford)

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