Baosteel cuts flat steel product prices for third straight month

On Friday, August 10, Shanghai-based Chinese steelmaker Baosteel announced reductions in the range of RMB 80-180/mt ($12.60-28.30/mt) in its flat steel product prices for September delivery, reducing its prices for hot and cold rolled products for the third consecutive month.
 
Accordingly, Baosteel has cut its hot rolled product prices by RMB 80-100/mt ($12.6-15.77/mt) and its cold rolled product prices by RMB 150-180 ($23.66-28.39/mt), as compared to prices for August delivery. Although the market is expected to indicate a seasonal rebound in September, Baosteel has cut its prices against the background of signs of a slowdown in China's economic growth. The decision to reduce prices is understood as a reflection of Baosteel's pessimism as regards the prospects for consumption in end-user sectors in China.