Chinese steel giant Baoshan Iron & Steel Co said that steel prices are likely to decline before demand revives in the fourth quarter.

Mr Ma Guoqiang GM of Baoshan in an online investors conference. Said that “Domestic prices are under pressure to trend lower because of falling demand and a removal of tax rebates, which hurts exports.”

He said that Baoshan was almost unaffected because the tax rebate removal does not affect most its products.

He however added that “Demand in some sectors may post a seasonal rebound in fourth quarter.”

China’s government removed export tax rebates of as much as 13% on flat steel, including hot rolled coil, starting July 15.

(Sourced from Bloomberg)