Fri, 26 Sep 04:37:00 GMT
* Spot iron ore at 5-yr low, down 41 pct this year
* Rebar, iron ore futures bounce back from record lows
By Manolo Serapio Jr
SINGAPORE, Sept 26 (Reuters) - Iron ore is on track to extend its losing run to a seventh straight week after falling to fresh five-year lows as supply continued to outstrip demand in China, the biggest buyer of the steelmaking commodity.
Chinese rebar steel futures rebounded from a record low on Friday, but were also on course for a seventh consecutive weekly drop on weak consumption that has bloated domestic supply.
Iron ore for immediate delivery to China <.IO62-CNI=SI> declined 1 percent to $78.60 a tonne on Thursday, the lowest since September 2009, according to data compiled by The Steel Index (TSI).
"The mood in the iron ore market continues to darken, with financing and performance becoming increasingly problematic for some participants, particularly with the Chinese holidays approaching," TSI said in a note.
Chinese steel mills were barely replenishing stocks of iron ore ahead of a week-long National Day break that starts from Oct. 1, traders said.
"There are not many enquiries coming in," said an iron ore trader in Shanghai.
"Why will they restock? There's plenty of cargo available and the market is dropping everyday so it doesn't make sense to restock now."
Iron ore, the top revenue earner for global miners Vale and Rio Tinto , has fallen almost 4 percent this week and more than 41 percent this year.
Amid slower steel consumption, iron ore supply exceeded demand in China by 81 million tonnes over January to August, Wang Xiaoqi, vice chairman of the China Iron and Steel Association (CISA) said on Thursday.
Chinese rebar futures rebounded after again falling to 2,538 yuan ($414) a tonne, matching Thursday's trough which was the lowest for a most-active contract since the Shanghai Futures Exchange launched the product in March 2009.
The most-traded January rebar was up 1 percent at 2,609 yuan a tonne by midday.
But rebar, a construction steel product, was still down 4.4 percent for the week, on track for its steepest drop since February 2013 after hefty losses earlier in the week.
China's apparent crude steel consumption dropped this year for the first time since at least 2000 amid a slowing economy and CISA's Wang said he expected the production pace to ease for the rest of 2014. [ID:nL3N0RQ5VR]
Iron ore for January delivery on the Dalian Commodity Exchange climbed 1.4 percent to 563 yuan per tonne, after falling to a contract low of 548 yuan.
Rebar and iron ore prices at 0405 GMT
Contract Last Change Pct Change
SHFE REBAR JAN5 2609 +26.00 +1.01
DALIAN IRON ORE DCE DCIO JAN5 563 +8.00 +1.44
SGX IRON ORE FUTURES OCT 78.94 +1.38 +1.78
THE STEEL INDEX 62 PCT INDEX 78.6 -0.80 -1.01
METAL BULLETIN INDEX 78.63 -1.27 -1.59
Dalian iron ore and Shanghai rebar in yuan/tonne
Index in dollars/tonne, show close for the previous trading day
(1 US dollar = 6.1334 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Joseph Radford)
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Keywords: MARKETS IRONORE/