Capacity utilisation rates of blast furnaces at 247 steel firms across China declined for the seventh straight week and stood at 74.8% as of Friday, down from 75.2% a week earlier, according to Mysteel consultancy.
Benchmark iron ore futures on the Dalian Commodity Exchange , for May delivery, were down 3.6% to 603 yuan ($94.61), as of 0330 GMT, after declining as much as 5.5% in morning trade. For the week, however, the contract was on course for a 4.8% gain.
Spot prices of iron ore with 62% iron content for delivery to China fell $1 to $104.5 a tonne on Thursday, data compiled by SteelHome consultancy showed.
Dalian coking coal futures were 2.1% lower at 1,925 yuan a tonne, after falling more than 6.5% earlier in the day.
Coke prices slipped 0.6% to 2,765 yuan per tonne.
Steel prices on the Shanghai Futures Exchange were mixed.
Construction rebar inched up 0.9% to 4,336 yuan per tonne and hot rolled coils rose 0.9% to 4,738 yuan a tonne. Stainless steel futures on the Shanghai bourse, for January delivery, fell 1.7% to 16,690 yuan per tonne.
"Impact from changes to the supply side on steel products prices is weakening," SinoSteel Futures wrote in a note, referring to output controls during winter.
However, with the real estate market remaining weak, steel prices are not expected to gain significantly, SinoSteel Futures said.