SHANGHAI Dec 23 （Reuters） - Steel prices in the domestic market fell slightly late this week, with traders seeing little room for prices to rebound in coming weeks as demand eases in winter.
Rebar prices stood at between 4,550 yuan （$684.7） and 4,560 yuan per tonne in Shanghai on Thursday, down about 1 percent from last week, Chinese industry consultancy Mysteel said.
"Slower construction activity in many Chinese regions has led to a lull in steel product tranaction. Prices have also started to ease,", said a Shanghai-based trader.
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May rebar contracts SRBK1, the most active on the Shanghai Futures Exchange, closed at 4,774 yuan per tonne on Thursday, 7 yuan higher from last Thursday.
The contract hit an almost 1-? month high of 4,822 yuan per tonne at the close on Tuesday, the highest since Nov. 9.
"It will be hard for steel mills to raise prices in January on the lack of demand," the trader added.
A big number of small and medium-sized steel mills are adopting more flexible pricing methods in response to increasing price volatility.
Shagang, China's biggest private steel mill and a major producer of rebar and wire rod used in the construction sector, has kept prices unchanged for the third 10-day period in a row, reflecting concern over softening demand in winter.
PRODUCTION RESTARTS
The new year would mark the end of last-ditch government efforts to meet its five-year energy-saving target by 2010 after ordering a large number of steel mills in the northern province of Hebei to shut down or partially suspend production in recent months.
"We haven't received an official government notice yet, but it is widely expected that the energy-saving campaign is almost over in Tangshan," said an official at a Tangshan steel mill.
"The lackluster in demand and production restarts will curb big steel price rises for a while," said BOC International Futures analyst Jiang Zhiwei.
Traders have become more wary of prices in January and have maintained low stocks in anticipation of further moves to tighten liquidity. （$1=6.645 Yuan） （Reporting by Ruby Lian and Tom Miles; Editing by Chris Lewis）
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