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Steel Stock Falls after China Cuts Prices

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MUMBAI, India (Jan 13) – Steel companies stock fell after China’s Baoshan Iron and Steel Company cut prices of its core products by an average of more than 10% to around US$ 430 a tonne. The cut in steel prices by Baoshan Iron and Steel could lead to a fall in steel prices in other […]

MUMBAI, India (Jan 13) – Steel companies stock fell after China’s Baoshan Iron and Steel Company cut prices of its core products by an average of more than 10% to around US$ 430 a tonne. The cut in steel prices by Baoshan Iron and Steel could lead to a fall in steel prices in other markets as well. Already reports are out from India and Korea. The South Korean firm POSCO, the world’s fifth-largest steel maker, reported a weaker-than-expected 68 % slump in quarterly profit on Thursday as steel prices were hit by Chinese supplies.

The cut in steel prices by China’s sixth largest steel producer was more than expected. Steel prices in China have been on a downward trend since domestic production is increasing.

Steel production in China increased by 19 % just in October of 2005. In the first 10 months of 2005, the production in China has by increased 27 % to 287 million tonnes. The international steel prices have fallen by 30 % from from the peak level of March 2005. (SH)

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