China steel futures slipped on September 17, retreating from a 1-1/2-month high hit in the previous session on high inventories of steel products and concerns about demand from the real estate market.
China's new home prices grew at its slowest pace in nearly a year in August with developers seen cutting prices, stoking worries if the property market can remain resilient to provide cushion for the country's slowing economy.
The most-active construction steel rebar contract on the Shanghai Futures Exchange, for January delivery, declined 0.6% to 3,533 yuan/t.
Hot-rolled coil, used in cars and home appliances, fell 0.8% to 3,529 yuan per tonne.
Although consumption of steel products had risen recently, inventory is still higher than last year, Huatai Futures wrote in a note.
The most-traded iron ore contract on the Dalian Commodity Exchange, for January 2020 delivery, dropped 1.8% to 666 yuan/t.
Steel and iron ore data analytics firm Tivlon Technologies said funds flowed out of the ferrous commodities complex as market participants are worried about uncertainty in the Middle East after an attack on Saudi Arabia oil facilities.
"However, we are surprised to see the outflow is relatively measured given such a big incident," the Singapore-based firm said.
(Writing by Emma Yang Editing by Jessie Jia)
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