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China factory output disappoints and more stimulus seen

Steel News - Published on Sun, 12 Aug 2012

Reuters reported that China biggest listed steelmaker, Baoshan Iron & Steel would cut September prices of its main products, the company third price cut since June as demand falls in the world second largest economy.

Baosteel pricing decisions are generally regarded as a bellwether for the industry. A price cut for September is significant, because steel demand in China usually increases in September and October when construction picks up.

Baosteel said hot rolled coil prices will be cut by CNY 100 per tonne and cold-rolled coil prices of some grades by CNY 150 per tonne. Both products are used in construction, manufacturing and automaking.

Economic figures this week including disappointing industrial output and export growth have raised hopes that China will take more measures to bolster its economy.

Recent growth policies, including interest rate cuts and accleration of infrastructure projects, are expected to support steel demand in coming months, but market participants say more aggressive measures are needed.

Source - Reuters


Posted By : admin on Sun, 12 Aug 2012
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