This could potentially have affect on AQA, no big deal should...

This could potentially have affect on AQA, no big deal should only affect short term movement of SP but worth knowing about. Future however still looks GOOD.

SHANGHAI - Several major Chinese steel mills cut their product prices for September sales by up to 19 per cent from their August levels on Tuesday, industry consultancy Umetal said, as spot prices continued to fall on weak demand.

The price cuts come as Chinese spot steel prices languish amid concerns that tighter bank lending, the government's crackdown on overcapacity in the steel industry and record output, may end the months-long price rally.

Spot price of iron ore, a key steelmaking ingredient, have also been volatile recently, falling to a more than two-month low on Tuesday.

Hebei Iron and Steel Group, the country's No. 2 steelmaker, lowered the price for its major reinforcing steel bar by 950 yuan, or 19 per cent, to 3,950 yuan ($US578.3) a tonne, effective on Tuesday, Umetal said citing Hebei's sales notice.

Shagang Group, China's largest private-sector steel mill and the largest rebar producer, also reduced construction steel prices by 400 yuan, or about 9 to 10 per cent, for September sales, Umetal said.

The two companies also cut prices for hot-rolled and cold-rolled steel by between 100-150 yuan a tonne, depending on quality, in their first reduction since May.

"We expect more major mills to follow suit because of the need to destock while maintaining full operational capacity to generate cash flow," Deutsche Bank analyst Julian Zhu said.

Baoshan Iron and Steel Co, the major unit of the country's largest steelmaker, is expected to lower sale prices for major hot-rolled and cold-rolled steel products for October next week after raising them since July, trade sources said.

The price cuts made by steel mills could further weigh on the steel futures prices in Shanghai, with the most-active rebar futures contract falling around 18 per cent from its peak in early August.

http://www.businessspectator.com.au/bs.nsf/Article/Top-China-mills-cut-steel-prices-Baosteel-to-follo-VGC6J?OpenDocument