A move by China Steel Corporation, one of Taiwan's leading steel suppliers in Taiwan, to lower its domestic wholesale prices for March showed cautious sentiment toward global demand.

Analysts said that the price cut reflected concerns about the global economy. The US economy, the largest in the world, has been on the way to a recovery, but China's economy, the second largest, has showed signs of moderating in growth, and the economic conditions in the eurozone remain stagnant.

Analysts said that the latest price cuts by China Steel reflected falling commodity prices in the global market. They added that steel prices in the US market have been on the decline in the wake of cheaper imports, while orders from China have been cut due to slowing manufacturing activity, which also affected pricing.

Earlier this week, the World Bank cut its forecast of the world's economic growth for 2015 to 3% from an earlier estimate of 3.4%.

In a pricing meeting held Friday, China Steel decided to lower its domestic wholesale prices for March contracts by TWD 425 per metric ton or 2.27% on average. It was the third consecutive price reduction China Steel has come up with since November 2014. China Steel said that it has cut steel plate prices by TWD 360 per metric ton for March deliveries, and cut hot rolled steel and cold rolled steel prices by TWD 622 and TWD 842 per metric ton, respectively, for contracts that month. The steel maker has also decided to lower prices for electro-galvanized steel and hot-dipped zinc-galvanized steel by TWD 600 per metric ton, and cut electrical steel prices by TWD 504 per metric ton for March contracts. But China Steel decided to leave steel wire rod prices unchanged.

China Steel said that uncertainty over global demand has made many local downstream steel makers cautious by postponing their purchasing plans, adding that the latest price cuts are expected to narrow the price gap between Taiwan and overseas markets, helping these local downstream steel firms strengthen their competitive edge.