Updates market at close

By Michele Pek

SINGAPORE, April 30 (Reuters) - Iron ore futures edged lower on Wednesday, posting a third straight monthly decline amid the possibility of steel output cuts in top consumer China, while demand slowed ahead of the Labour Day holiday.

The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trade 0.78% lower at 703.5 yuan ($96.81) a metric ton.

The contract lost 3.96% this month.

The benchmark May iron ore SZZFK5 on the Singapore Exchange was 0.67% lower at $97.8 a ton, as of 0711 GMT, losing 3.16% this month.

Senior Chinese industry figures pointed to the likelihood of steel output cuts despite no official government mandate, pressuring prices of steelmaking ingredients.

Luo Tiejun, vice-chairman of the China Iron and Steel Association (CISA), urged unified action on steel output cuts last week, citing severe pressure on the domestic steel industry sparked by persistent downturn and international trade friction, according to a CISA release.

Meanwhile, Baoshan Iron & Steel 600019.SS, China's biggest listed steelmaker, said on Monday that a nationwide output cut was likely this year.

"Iron ore extended recent losses as market sentiment weakened ahead of the Labour Day holiday period," ANZ said, adding that Chinese steel mills have slowed their restocking activities.

China's financial markets will be closed from May 1-5 for the Labour Day holiday. Trading will resume on May 6.

Broadly, China's factory activity contracted at the fastest pace in 16 months in April, a factory survey showed on Wednesday, as Donald Trump's "Liberation Day" package of tariffs snapped two months of recovery.

Other steelmaking ingredients on the DCE lost ground, with coking coal DJMcv1 and coke DCJcv1 down 0.59% and 0.97%, respectively.

Steel benchmarks on the Shanghai Futures Exchange languished. Rebar SRBcv1 and hot-rolled coil SHHCcv1 were both down around 0.4%, wire rod SWRcv1 eased nearly 0.2% and stainless steel SHSScv1 weakened 0.24%.

($1 = 7.2665 Chinese yuan)

(Reporting by Michele Pek; Editing by Varun H K and Rashmi Aich)

((michele.pek@thomsonreuters.com;))