* Shanghai rebar futures fall to lowest since March 24
* Investors remain wary over global economic outlook
* Iron ore prices hold firm amid supply tightness
* Key global iron ore indexes mixed on Monday
By Ruby Lian and Manolo Serapio Jr
SHANGHAI/SINGAPORE, Aug 9 (Reuters) - China rebar futures fell more than 4 percent on Tuesday to the lowest since March as investors dumped riskier assets in a global rout triggered by fears that political leaders are failing to tackle debt crises in the United States and Europe.
The most active January rebar contract on the Shanghai Futures Exchange SRBc6 fell as low as 4,558 yuan ($708) per tonne, the weakest since March 24, tracking Asian equities and other commodities, but the declined was trimmed to 0.84 percent by the midday break from the previous close.
"The Chinese market remains panicked by the overnight slump in global markets caused by spreading worries about the U.S. and European crises. Rebar will stay vulnerable unless the two regions work out how to ease the crisis properly," said China's Orient Futures analyst Wang Dezhi.
The U.S. downgrade by Standard & Poor's late on Friday continued to spook global investors and raise market concerns that the world's largest economy is sliding into recession while Europe is facing an ever-worsening sovereign debt crisis.
Asian stock markets nosedived on Tuesday and the Swiss franc held near a record high against the dollar and euro in Asia, having surged as a crisis of confidence gripped investors. .
London copper hit an eight-month low on Tuesday, while base metals futures on the Shanghai Futures Exchange also fell significantly, with benchmark Shanghai copper tumbling 6 percent to the downward trade limit [ID : nB9E7IC001]
IRON ORE LESS VOLATILE
China's spot iron ore market has remained less affected by growing fears over a global economic downturn than other commodities, with offers holding firm on Tuesday as supply from India, the world's biggest supplier of spot iron ore, has remained tight.
"There is panic in the iron ore market too, but prices are mainly supply-driven and thus almost steady, unlike copper or rebar," said an iron ore trader in Shenzhen.
Exports from a key producing region of India's Karnataka state have not yet resumed, compounded by a ban on mining in its Bellary region, which continues to buoy market fundamentals, particularly during its monsoon season.
Australia, the world's top iron ore supplier, expects demand to continue to grow, particularly from Asia, despite global market turmoil.
Quotes for Indian 63.5/63 iron ore stood unchanged at $185-187 per tonne, including freight, on Tuesday, while offers for 62-grade Newman fines from Australia were steady at $181-183 per tonne.
Key global iron ore indexes, tracking spot deals in China and used by global miners to settle contract prices, were mixed again on Monday.
The Steel Index's 62-percent iron ore reference price .IO62-CNI=SI rose 10 cents again to $178.1 per tonne, its highest since May 17, while Metal Bulletin Iron Ore Index .IO62-CNO=MB rose 32 cents to $177.77 per tonne, close to its highest in nearly two months hit last Thursday.
Platts 62-percent index IODBZ00-PLT fell half a dollar to $177.5 per tonne on Monday. ($1 = 6.436 yuan)
(sourced Thomson Reuters)
The most active January rebar contract on the Shanghai Futures Exchange SRBc6 fell as low as 4,558 yuan ($708) per tonne, the weakest since March 24, tracking Asian equities and other commodities, but the declined was trimmed to 0.84 percent by the midday break from the previous close.
"The Chinese market remains panicked by the overnight slump in global markets caused by spreading worries about the U.S. and European crises. Rebar will stay vulnerable unless the two regions work out how to ease the crisis properly," said China's Orient Futures analyst Wang Dezhi.
The U.S. downgrade by Standard & Poor's late on Friday continued to spook global investors and raise market concerns that the world's largest economy is sliding into recession while Europe is facing an ever-worsening sovereign debt crisis.
Asian stock markets nosedived on Tuesday and the Swiss franc held near a record high against the dollar and euro in Asia, having surged as a crisis of confidence gripped investors. .
London copper hit an eight-month low on Tuesday, while base metals futures on the Shanghai Futures Exchange also fell significantly, with benchmark Shanghai copper tumbling 6 percent to the downward trade limit [ID : nB9E7IC001]
IRON ORE LESS VOLATILE
China's spot iron ore market has remained less affected by growing fears over a global economic downturn than other commodities, with offers holding firm on Tuesday as supply from India, the world's biggest supplier of spot iron ore, has remained tight.
"There is panic in the iron ore market too, but prices are mainly supply-driven and thus almost steady, unlike copper or rebar," said an iron ore trader in Shenzhen.
Exports from a key producing region of India's Karnataka state have not yet resumed, compounded by a ban on mining in its Bellary region, which continues to buoy market fundamentals, particularly during its monsoon season.
Australia, the world's top iron ore supplier, expects demand to continue to grow, particularly from Asia, despite global market turmoil.
Quotes for Indian 63.5/63 iron ore stood unchanged at $185-187 per tonne, including freight, on Tuesday, while offers for 62-grade Newman fines from Australia were steady at $181-183 per tonne.
Key global iron ore indexes, tracking spot deals in China and used by global miners to settle contract prices, were mixed again on Monday.
The Steel Index's 62-percent iron ore reference price .IO62-CNI=SI rose 10 cents again to $178.1 per tonne, its highest since May 17, while Metal Bulletin Iron Ore Index .IO62-CNO=MB rose 32 cents to $177.77 per tonne, close to its highest in nearly two months hit last Thursday.
Platts 62-percent index IODBZ00-PLT fell half a dollar to $177.5 per tonne on Monday. ($1 = 6.436 yuan)
(sourced Thomson Reuters)
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