Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Chinese Steel Prices Post First Decline in Six Weeks on Economy

Don't Miss Out —
Follow us on:

Aug. 27 (Bloomberg) -- Benchmark Chinese steel prices fell 1.9 percent this week, the first decline in six, as the government studied a property tax and economic concerns eroded purchases of the material used in houses and cars.

Prices of hot-rolled coil fell to 4,176 yuan ($614) a metric ton today, from 4,259 yuan a ton a week ago, according to Beijing Antaike Information Development Co. Prices had increased for five straight weeks before this, posting an aggregate gain of 9.5 percent.

Purchases of U.S. existing houses plunged a record 27 percent in July to the lowest in a decade of record keeping, sparking concerns slowing global economic growth would curb commodities demand. China is studying a property tax and plans to introduce real estate tax reform, the official Xinhua News Agency said Aug. 24.

“The decline in steel prices, echoing a plunge in the equity markets, reflects worries over the economy,” Ma Haitian, an Antaike analyst, said in Beijing. “The price drop may continue in the coming weeks.”

The benchmark Shanghai Composite Index fell 2 percent, the biggest drop in two weeks, on Aug. 25. The index was down 1.2 percent this week.

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

To contact the editor responsible for this story: Hwee Ann Tan at hatan@bloomberg.net