Leading Chinese steelmaker Baoshan Iron and Steel (Baosteel) will keep its main steel product prices unchanged for October delivery, it said on Monday.

The firm's pricing moves usually set the tone for the industry as a whole, and its decision to keep prices unchanged suggests that demand will remain relatively weak in the next month, despite a seasonal upturn in construction activity.

Baosteel also cut the price of its hot-rolled steel products used in automobiles by 100 yuan ($15.71) per tonne for October. Other products were cut by as much as 200 yuan per tonne.

As a result of severe overcapacity and faltering demand, Chinese steel prices have been in the doldrums this year, with the China Iron and Steel Association's composite index around a third lower than it was when it was launched in 1994.

 

af.reuters.com

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