Steel raw materials in China sinking under the influence of economic growth forecast

Steel prices in China fell as coking coal prices posted their worst week since December, under pressure from fears over steel demand as the country's economic growth continues to cool.

Steel futures also ended volatile trading after data on Friday showed that China's exports fell the hardest in just three years in February and imports fell for the third straight month, indicating a further slowdown in the economy.

Weak trade data exacerbated volatility in the market, which is already concerned about air pollution control restrictions on steel production in China and the outcome of trade negotiations between the United States and China.

"Market players ... are liquidating their positions in the metals sector," as doubts remain over whether the Chinese stimulus will prevent a sharper slowdown, said Darren To of Singapore-based steel and iron ore data analyst Tivlon Technologies.

The best-selling raw material, coking coal, fell on the Dalian Commodity Exchange for the fifth day in a row, shedding a whopping 2.9 percent to 1,233.5 yuan ($ 183.49) a tonne and then hitting 1,237 yuan.

On the Dalian Exchange, iron ore futures were down 0.6 percent to 613 yuan a tonne.

Iron ore imports to China fell to a 10-month low in February, customs data showed on Friday, due to a slowdown in trade during the weekly national holiday and soaring prices.

Iron ore demand at Chinese steel mills may decline as the country's leading steel region, Hebei, sets capacity cuts in 2019 and 2020 as it strives to improve air quality.

Meanwhile, leading steel city Tangshan has indefinitely extended the highest smog warning level set since March 1, forcing mills to cut production by 40 to 70 percent or even halt production.

The most active rebar contract on the Shanghai Futures Exchange fell 0.1 percent to 3,772 yuan a tonne, while hot rolled coil fell 0.5 percent to 3,712 yuan.