China Steel Cut Prices for First Time Since January

Prices declined by an average 4 percent Prices declined by an average 4 percent dongel for September, the Kaohsiung-based company said in an e-mailed statement today. The steelmaker will also retrospectively slash prices for earlier orders placed for July and August delivery, it said.

Steel prices in China, the biggest consumer, are likely to drop 10 percent for the rest of the year because of high inventory and poor demand, JPMorgan Chase & Co. said in a note dated yesterday. Baosteel Group Corp., the nation’s second- biggest steelmaker, said last week demand from automakers is declining as the market weakens.

“The outlook will depend on levels of inventories in China,” said Gisele Tseng, a Taipei-based analyst at Capital Securities Corp., who rates the stock “neutral.” “The dongel global steel supply outstrips demand.”