In view of weak demand at home and decreased steel exports resulting from the rebate tax changes, domestic steel prices may return to a downhill path soon, said Baosteel. In the latter half of this year, the overall economic situation and the steel market remain obscure with signs of slow-down in domestic demand and a prominent imbalance between the supply and demand sides.

Baosteel said iron ore costs in the fourth quarter will be much higher than those of the first half, though probably cheaper than the previous three months.