Steel companies in China are
slashing product prices more steeply than it has since the third quarter of
2009 amid widespread expectations that global steel demand will stay weak on
the back of a shaky growth outlook.
The average 7.08% price cut is
nominally for the January-February period, but will also encompass December
shipments retroactively, said an official of China Steel .
China steel, Taiwan's largest
steelmaker by revenue had reduced capacity utilization starting early this
month and has been actively seeking to defer or cancel upcoming imports of iron
ore and coking coal.
Analysts said the price cut, which is largely in line with expectations, will
likely help China Steel clear out its inventories in the face of an otherwise
weak market.
China Steel said in a statement
that January-February prices of most of its products will be cut by an average
of US$ 57.50/MT compared with prices previously set for December prices, which
were mostly unchanged from October-November.
“We decided to cut the
prices substantially because we want to raise the competitiveness of downstream
clients, stabilize market confidence and boost demand,” China Steel said.
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