After China's biggest steel manufacturer Baosteel announced a price cut, buyers holds back and takes a wait and see approach. It’s learned that the prices for rebar fell as demand softens. Weather condition has not been favorable and many construction projects were suspended because of rain, further fueling buying holdback.
Two other steel manufacturers Xinyu Steel and Rizhao Steel also lowered its price leading to speculations of a further decrease. A partial solution would be for China's central bank to cut its interest rate. A cut in interest rate will give the property market a boost and thereby increasing demand for steel.