PRICES of steelmaking ingredients on the Dalian Commodity Exchange slipped yesterday due to sluggish demand at mills stemming from locally mandated output cuts, while the government’s coal price controls also weighed on sentiment.

Steel, cement and coking plants in the steel hub of Tangshan were recently ordered to cut production following a heavy-pollution alert, according to the local government.

Stocks of imported iron ore at China’s ports gained by 2.1 million tons to 142.3 million tons last week on weakening demand, data from SteelHome consultancy showed.

Benchmark iron ore futures on the Dalian bourse, for January delivery, ended down 5.7 percent to 619 yuan (US$96.68) per ton.

Other steelmaking raw materials also declined after the country’s top economic planner said the coal supply situation had improved significantly, and it would launch an online platform in early November to monitor the implementation of long-term coal contracts.

Dalian coking coal futures plunged to their daily trading limit in afternoon session, down 9 percent to 2,165 yuan a ton.

Coke prices slumped 6.8 percent to 2,898 yuan per ton at close. They fell as much as 8.6 percent earlier during the session.

Construction-use steel rebar on the Shanghai Futures Exchange fell 3.9 percent to 4,509 yuan a ton.

Hot rolled coils futures, used in the manufacturing sector, slipped 4.2 percent to 4,826 yuan per ton.

Stainless steel futures on the Shanghai exchange, for December delivery, fell 2 percent to 18,860 yuan a ton. (SD-Agencies)