* Dalian iron ore down as much as 5%
* Spot prices for benchmark 62% Fe at $96.5 a tonne
* Demand can be sustained but hard to grow - trader(Adds details, quotes, updates closing prices)
BEIJING, Sept 19 (Reuters) - China's Dalian iron orefutures stumbled on Thursday, extending losses to a fourthsession, on concerns about future demand.
The most-traded iron ore futures contract, on theDalian Commodity Exchange, for January 2020 delivery, fell asmuch as 5.2% to 634 yuan a tonne, the biggest intraday losssince Aug. 21. It closed down 4.6% at 638 yuan ($89.82) pertonne.
Prices for spot cargoes of benchmark iron ore with 62% ironcontent for delivery to China, fell for asecond straight day on Wednesday to $96.5 a tonne.
Investors are cautious as prospects of China's economyremain uncertain, a Shanghai-based trader said.Demand can be maintained at the current level but is unlikelyto grow further, said the trader, adding that supply of iron oreis relatively sufficient now.
The most-active construction steel rebar contract on theShanghai Futures Exchange, for January delivery, fell3.3% to 3,397 yuan per tonne.
Hot-rolled coil steel, used in cars and homeappliances, on the Shanghai Futures Exchange, fell 2.8% to 3,428yuan a tonne, also fell for a fourth straight day.
A huge outflow of funds from the equities market isaffecting sentiment in the ferrous complex, said TivlonTechnologies, a steel and iron ore data analytics firm.
"We are seeing funds outflows accelerating this week and itlooks like further soften(ing is) to come," said theSingapore-based company.
FUNDAMENTALS
* Other steelmaking ingredients also fell, with Daliancoking coal down 1.5% at 1,319 yuan a tonne, while cokedipped 1.1% to 1,963 yuan.
* China's local governments issued a net 2.0057 trillionyuan in special bonds in the first eight months of the year, thefinance ministry said on Wednesday, as Beijing looks to spurinfrastructure investment and stabilise the cooling economy.
* The U.S. Federal Reserve cut its target interest rate by25 basis points to a range of 1.75-2.0% on Wednesday to helpsustain a record-long economic expansion but signalled a higherbar to further reductions.
* China's yuan fell to its weakest level in a week after theU.S. Federal Reserve refrained from promising more interest ratecuts beyond its freshly-made one, prompting markets to bet on astronger dollar.
* For the top stories metals and other news, click TOP/MTLor MET/L
($1 = 7.0931 Chinese yuan)($1 = 7.1031 Chinese yuan renminbi)(Reporting by Min Zhang and Tom Daly; Editing by Aditya Soniand Emelia Sithole-Matarise)