Chinese rebar futures fell for a sixth day to a near one month low as concerns over slowing economic growth in the world's top steel producer offset hopes for a seasonal recovery in demand.

The benchmark October rebar futures on the Shanghai Futures Exchange dropped to a low of CNY 3,219 per tonne, the lowest since March 25. It traded half a percent lower at CNY 3,233 by 0211 GMT and has lost 4% in the six sessions to Tuesday.

At the Dalian Commodity Exchange, the iron ore contract for delivery in September dropped to a session low of CNY 768 its lowest since March 28. It traded 0.9% lower at CNY 775 by 0211 GMT.

A rebar futures broker in Shanghai said that "The market sentiment is currently mixed. Investors are bearish on China's economic outlook, but they are still expecting steel demand to improve and there is a possibility that prices might rebound soon after continuous falls.”

A trader in eastern Jiangsu province said that “Tight credit also has a big impact on our business as our orders are actually good but customers can't settle the payment in a timely way. Iron ore prices dropped to the lowest in more than three weeks on the extended losses in steel prices and rising supply.”

Steel use typically improves in the Q2 as construction and manufacturing activity pick up during the warmer months, but Beijing having made clear it has no intention to roll out major stimulus measures or loosen credit is expected to weigh on demand.