* Hot-rolled coil up for 4th day
* Steel rebar rises for 3rd day
* Iron ore falters on weak demand
By Enrico Dela Cruz
MANILA, Aug 15 (Reuters) - Steel futures in China rose inearly trade on Thursday as market participants hoped Beijingwould roll out more measures to stimulate the slowing domesticeconomy, but steelmaking raw materials were under pressure onweak demand outlook.
The most-traded October 2019 contract for hot-rolled coil, used in cars and home appliances, on the ShanghaiFutures Exchange rose as much as 0.8% to 3,728 yuan ($530.50) atonne, extending its gains for a fourth straight session.
The construction steel rebar index was up as muchas 0.6% at 3,718 yuan a tonne, extending its rebound for a thirdday.
Shanghai steel futures managed to push higher on Wednesdaydespite unexpectedly weak Chinese economic data for July,including a marked slowdown in industrial output growth amid aprotracted U.S.-Sino trade war.
"Investors took a glass half full approach to the weakeconomic data in China, with expectations of extra stimulusmeasures rising," ANZ Research said in a note.
Support for steel prices is also seen intact as some Chinesesteelmakers have decided to reduce their output to prop up weakprices and thus boost profit margins squeezed by high costs ofraw materials.
Iron ore prices retreated, however, with the DalianCommodity Exchange benchmark falling as much as 2.7% whilefutures in Singapore dropped as much as 2.1% on downbeat demandprospects for the steelmaking material.
FUNDAMENTALS
* The most-active Dalian iron ore contract, withJanuary 2020 expiry, was down 0.9% at 630 yuan a tonne as of0245 GMT.
* In Singapore, the most-active September 2019 iron orecontract was down 1.0% at $87.48 a tonne.
* Iron ore prices have cooled, as a supply squeeze fades buta hoped-for Chinese boost to demand remains elusive, accordingto Reuters Breakingviews columnist Clara Ferreira-Marques.
* Benchmark spot 62% iron ore for delivery to China, asassessed by SteelHome consultancy <SH-CCN-IRNOR62>, settled at$91.50 a tonne on Wednesday, rebounding from its lowest in morethan four months, hit early this week.
* Other steel ingredients were mixed, with Dalian cokingcoal up 0.3% at 1,329 yuan a tonne, but cokeedged down 0.2% to 1,986 yuan.
* For the top stories metals and other news, clickor($1 = 7.0273 yuan)(Reporting by Enrico dela Cruz; Editing by Shounak Dasgupta)