Chinese steel, iron ore slide

BEIJING, Feb 25 (Reuters): Chinese steel and steel-making raw material retreated when market closed on Monday, despite positive market sentiment as Beijing and Washington moved closer to a trade deal.

US President Donald Trump said on Sunday he would delay an increase in tariffs on Chinese goods due to "productive" trade talks.

He and Chinese President Xi Jinping would meet to seal a deal if progress continued.

China's official Xinhua news agency also reported that the two countries have made "substantial progress" on specific issues in the latest round of talks.

"Trade friction is easing while the Chinese economy is maintaining stability ... In general, steel would move into a bull market, despite increasing output," according to a note by Jinrui Futures.

Benchmark Shanghai rebar prices lost 0.7 per cent to 3,682 yuan ($550.43) a tonne.

Hot-rolled coil futures edged down 0.3 per cent to 3,678 yuan.

The weekly utilization rates at steel mills across the country edged up to 65.75 per cent last week as of Feb. 22, rising 0.14 per centage points from a week earlier, data compiled by Mysteel consultancy showed.