May 9 (Bloomberg) -- Baoshan Iron & Steel Co., China’s biggest publicly traded steelmaker, cut product prices for the first time in nine months because of domestic oversupply.
The company cut rates of hot-rolled products for June delivery by 180 yuan ($29) a metric ton and of cold-rolled products by 150 yuan, according to information posted on its website today. The last time Shanghai-based Baoshan cut prices was on Aug. 10 for September delivery, according to data compiled by Bloomberg.
Baoshan is cutting prices as production increased. China’s daily steel production climbed to a record 2.13 million metric tons during the 10-day period to April 30 adding to inventories, UOB Kay Hian analyst Helen Lau said in an e-mailed note today.
Baoshan shares traded unchanged at 4.96 yuan as of 1:54 p.m. today in Shanghai, compared with a 0.8 percent drop in the benchmark Shanghai Composite Index.
Steel reinforcement-bar futures for October delivery in Shanghai declined 1.5 percent to 3,615 yuan a ton as of 1:46 p.m. today. The contract has fallen 15 percent since Feb. 8.
Iron ore prices arriving China’s Tianjin port have dropped 18 percent to $130.2 a dry ton yesterday from a 16-month high of $158.90 reached on Feb. 20, according to a gauge compiled by The Steel Index Ltd.
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