It is reported by China Securities Journal that China’s Baosteel has decreased its ex-work prices by RMB200/ton for hot-rolled, cold-rolled, pickled, stainless and galvanized steel products as a result of softening demands. This is the first time for Baosteel to lower its price in Jan. 2009.

Indeed, the domestic steel prices have increased for consecutive ten weeks prior to Baosteel’s price reduction. Besides, the reported also estimated that 80% of Chinese steelmakers could have better profits in the first quarter than in the last quarter of 2009.