Baoshan Steel Cuts Prices as Demand Wanes for Cars, Appliances

Baoshan Iron & Steel Co. (600019), China’s biggest publicly traded steelmaker, lowered prices as demand from makers of appliances and cars slowed.

Prices were cut by as much as 400 yuan ($63) a metric ton for July delivery, the Shanghai-based company said in a statement on its trade website bsteel.com. Most hot-rolled and cold-rolled products were reduced by 200 yuan a ton. Baoshan had raised prices by 100 yuan in January and as much as 200 yuan in March and kept most grades little changed in the other months this year.

Steel prices in China, the world’s biggest producer and consumer of the alloy, have fallen for eight straight weeks because of waning demand from builders and automakers. China’s daily steel production in May fell from the previous month, based on monthly data collated by the National Bureau of Statistics and the output may fall further in June.

Chinese prices of hot-rolled coil, a benchmark product, have fallen by an aggregate 5.1 percent to 4,170 yuan as of June 8, according to researcher Beijing Antaike Information Development Co. Baoshan Steel didn’t give product prices following the reduction, according to the statement.

Baoshan also cut zinc-galvanized grades by between 100 yuan and 400 yuan and pickling coil prices by as much as 150 yuan, it said in the statement. Silicon steel prices were left unchanged.

To contact Bloomberg News staff for this story: Helen Yuan in Shanghai at hyuan@bloomberg.net

To contact the editor responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net

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