Iron ore and steel futures in China dropped to 12-week lows on Wednesday, reflecting further pressure in glut-hit markets that have fallen nearly a third from last month's peaks.
Softening demand for steel in China, the world's top consumer, following a seasonal pickup could push mills to curb production again, traders said.
Many mills shut down over the past year in response to weak demand and some of them resumed output as prices rallied in April.
"We might see some cut in production, even from the big state-owned mills," said an iron ore trader in Shanghai.
Rebar, or reinforcing bar used in construction, closed down 1.3 percent at 1,916 yuan ($292) a tonne on the Shanghai Futures Exchange. It touched 1,912 yuan earlier, the lowest since March 4.
Rebar has fallen more than 31 percent from its highest point in April when a rally fueled by faith in China's economy, low inventories and seasonal demand pushed rebar to its highest since September 2014.
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