Wednesday, October 27,
China’s Hebei Iron & Steel Group has cut prices of its main construction steel products by up to 180 yuan ($27.04) a tonne, local media reported on Tuesday, pointing to mills’ cautious demand outlook for the rest of the year.
The firm, one of the country’s top steelmakers in terms of output has cut its coiled rebar prices by 180 yuan per tonne to 4,370 yuan, while wire rod prices were also reduced by 130 yuan to 4,270 yuan per tonne, the China Securities daily said.
Hebei’s price cut comes after rival Baosteel kept its key steel product prices unchanged for November bookings from a month ago — underlining China’s gloomy steel output.
Oversupply and an uncertain demand outlook means market prices have continued to fall below the rates set by the top steelmills, causing some steel traders to suffer heavy losses as they were forced to sell the products at a loss.
Analysts have said that China’s surprise interest rate hike last week have added to long-standing concerns about oversupply as the winter off-season approaches.
Source: Reuters
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