China's Hebei Iron & Steel Group has cut prices of its main construction steel products by up to 180 yuan ($27.04) a ton, local media reported Tuesday, pointing to mills' cautious demand outlook for the rest of the year.

The firm, one of the country's top steelmakers in terms of output, cut its coiled rebar prices by 180 yuan ($26.8) per ton to 4,370 yuan ($649.8), while wire rod prices were also reduced by 130 yuan ($19.3) to 4,270 yuan ($634.9) per ton.

Hebei's price cut comes after rival Baosteel kept its key steel product prices unchanged for November bookings from a month ago - underlining China's gloomy steel output.

Oversupply and an uncertain demand outlook means market prices have continued to fall below the rates set by the top steel mills, causing some steel traders to suffer heavy losses as they were forced to sell the products at a loss.

Analysts have said that China's surprise interest rate hike last week added to long-standing concerns about oversupply as the off-season approaches.

Major mills including Wuhan Steel and Anshan Steel have adopted monthly pricing, while Shagang prefers 10-day pricing changes to allow more flexibility in adapting to changing market conditions.