Shanghai rebar hits 7-week low as winter slows China demand
Restocking by steel mills on hopes China's new leadership will maintain infrastructure spending had pushed up iron ore prices to their highest since July last week.
But traders had warned the winter season would eventually dampen demand as construction normally slows during the period.
We haven't purchased iron ore over the past three weeks, and steel mills are still keeping their inventories at low levels, a Shanghai-based iron ore trader said.
We expect there will still be some buying this week, but we won't see large-scale restocking.
The next large-scale restocking may happen just before the Lunar New Year holiday in February, traders said, although the magnitude may not equal recent years as China's economic growth shifts to slower gear.
Home prices in China steadied in October from September, adding to evidence of a mild recovery in the country's property market, data showed on Sunday.
Although home prices still fell 1.1 percent annually for the eighth straight month of decline since March, reflecting continuing curbs in the sector.
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