BEIJING, Dec.8 (Reuters) – Chinese stainless steel futures fell to their lowest level in more than three months on Wednesday, amid weak downstream demand and falling commodity prices raw.

The most actively traded stainless steel on the Shanghai Futures Exchange, for delivery in January, ended down 4.2% at 16,085 yuan per tonne, the lowest close since September 2.

“Stainless steel production slated for December is substantial, but downstream demand is weak,” GF Futures analysts wrote in a note, adding that lower prices for stainless steel ferro-chrome and scrap are reducing also costs in factories.

Other steel prices on the Shanghai Stock Exchange also declined. Rebar used for construction, for delivery in May, fell 2% to 4,350 yuan per ton. Hot-rolled coils, used in cars and household appliances, fell 2.1% to 4,528 yuan per ton.

Prices for steel ingredients on the Dalian Commodity Exchange were mixed.

Benchmark iron ore futures rose 1.5% to 659 yuan per tonne, extending gains to a third day, after jumping 4.2% earlier in the session.

Spot prices for iron ore containing 62% iron for delivery to China rose $ 7 to $ 111.5 per tonne on Tuesday, according to consultancy SteelHome.

Coking coal prices closed up 2% at 2,056 yuan per tonne. They rose 5.6% to 2,127 yuan in morning trading.

Coke futures on the Dalian Stock Exchange fell 1.3% to 2,917 yuan per tonne.

($ 1 = 6.3528 Chinese yuan)

Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu

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