It is reported that impacted by the iron ore talk and consecutive steel price drop, some small sized steelmakers start to cut their ex works price of construction grade steel products.

On August 18th, steel price continue to tumble and that of most specs even plummets by RMB 150 per tonne. Thereby, steel price has kept falling for consecutive 9 transaction days with a decrease of RMB 900 per tonne on the back of previous price jump.

Jiangsu based Yonggang decreased its ex works prices again on August 18th. By now, its prices of wire rod, rebar and coiled rebar have all been cut by RMB 500 per tonne while Shanxi Jingang also further cut its ex works price of rebar with thickness between 12mm to 14mm by RMB 50 per tonne and a decrease of RMB 100 per tonne for other sized rebar wire rod and coiled rebar.

Mr Ruan Linxia business manager of Jiabao unveiled that on August 17th, steel price on the E-exchange market of Lange Steel tumbled and futures price continued to decline. There are many factors influencing steel price and the downward trend may continue in a short term as for the still weak demand.

Mr Fang Rongrong analyst of Lange Steel said in the past, steel price is pushed by iron ore price, but after the ups and downs in 2008, this system has been change and from this year to next year, Chinese domestic iron ore price will remain following steel price offer.