Baoshan Steel Cuts Hot-Rolled Prices by 18%, Mysteel Says

By Helen Yuan

Nov. 27 (Bloomberg) -- Baoshan Iron & Steel Co., China’s biggest steelmaker, will cut hot-rolled product prices by 18 percent as the economic slowdown damps demand from builders and shipmakers, Mysteel Research Institute said.

Prices will drop by 700 yuan ($102) a metric ton for January delivery, Shanghai-based researcher Mysteel said. That will be an 18 percent cut to 3,242 yuan a ton, according to Bloomberg data. Baoshan Steel confirmed the price cut.

Steel prices in China, the largest consumer of the metal, have plunged 41 percent from a June 5 record, prompting mills including Maanshan Iron & Steel Co. to reduce output. China posted its slowest economic growth in five years in the third quarter.

Baoshan slashed prices of cold-rolled products, used to make cars and appliances, by 22 percent last week for December delivery. China Steel Corp., Taiwan’s largest steelmaker, yesterday said it will cut prices by an average of 23 percent for domestic customers from January.

To contact the reporter for this story: Helen Yuan in Shanghai at hyuan@bloomberg.net