China’s Baoshan suspends production due to slow demand

<p>China’s Baoshan steel and iron business has suspended production due to lack of demand.</p>

The Chinese economic slowdown has led to Baoshan Iron and Steel suspending production due to lack of demand.

Also known as Baosteel, the company – which is the fourth-largest steel producer in the world – stated its facility in Luojing, Shanghai, has been closed to avoid rising operating costs, the BBC reports.

Steelmakers in China have had a challenging year, as Beijing policymakers have curbed the property sector in order to bring down prices.

China is the world's largest producer of steel and values have plunged this year.

Steel production has slowed and iron ore prices have fallen some 25 per cent in 2012 alone.

Analysts say low prices indicate mills are under additional pressure, while more production cuts are expected from steelmakers in China.

The major Chinese benchmarks closed higher this morning (September 27th), with the Hong Kong Hang Seng advancing 1.1 per cent to 20762.2 points and the Shanghai SSE Composite rising 2.6 per cent to 2056.3 points.

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