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Baosteel cuts prices as demand wanes
Aggregated Source: Shanghai Daily: Business

BAOSHAN Iron & Steel Co, China's largest listed steel maker, has lowered June prices for its main products, its first cut in nine months, due to weak demand amid a slowing economic recovery.
The company cut hot-rolled steel prices for June delivery by 180 yuan (US$29) per ton and cold-rolled steel prices by 150 yuan per ton, according to a statement released today.
Baosteel's prices usually set the tone for the rest of the market in China.
The China Iron and Steel Association said last month the domestic steel market may remain weak in May, traditionally a peak sales season. It cited weak data in housing starts and the manufacturing sector.
China's Producer Price Index fell 2.6 percent in April, after a 1.9 percent decrease in March, official data showed today, suggesting demand for industrial products is sluggish.
Wang Bei, of Mysteel Research Institute, wrote in a note yesterday that while Baosteel and Wuhan Iron & Steel Co have room to cut June prices, other companies like Angang Steel Co may hold prices unchanged because they had announced price cuts for previous months.

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