Steel prices keep falling in China since April

I came across the interesting article on steel prices in China. Looks like there is a bloodbath out there and the view are contrary to comments made by Tata Steel
available here.

UPDATED: 17:16, June 23, 2005
Steel prices keep falling in China since April

China Iron & Steel Association found in its survey recently that prices of steel products had kept sagging since April this year in China. Some products are priced about 1,000 yuan lower per ton on average than in the first quarter. Some have plunged by 20 percent. This means Chinese steel products are much cheaper than those on the foreign markets.

The Association asked steel makers to pay more attention to the adjustment of their lines than on scale and output, so as to prevent sharp fluctuation of steel prices.

At present, prices of long products, reinforced steel and steel rods in particular, have even plummeted below the average production costs of the whole sector.

By People's Daily Online
http://english.people.com.cn//200506/23/eng20050623_191967.html