Reuters reported that steel futures in China fell to one month lows stretching steep losses from the prior session, weighed down by slow demand that has kept steel traders from replenishing inventories.

Rebar for January delivery on the Shanghai Futures Exchange touched a session low of CNY 3,043, its weakest since June 20. It was down 1 percent at CNY 3,054 by midday.

According to industry consultancy Mysteel, stocks of five major steel products held by Chinese traders fell to 13.13 million tonnes on Friday. That is the lowest inventory level since December 2012.

Ms Helen Lau analyst at UOB Kay Han Securities in Hong Kong said that "Because the inventory is so low, I expect some restocking by traders and end users, but maybe only towards late August because seasonal demand is slowing down as the weather gets hotter."

China's commitment to spur economic growth via measures including infrastructure spending has helped lift prices of steel to their highest since late May before Friday's slide.