Steel prices in China recorded their largest weekly decline in eight years last week as the global financial crisis bit into the domestic industry, state media reported on Monday.
Domestic steel prices plunged by an average 12 percent last week, with analysts attributing the fall to the economic woes around the world that were expected to hurt Chinese exporters, Xinhua news agency reported.
Slumps in China's real estate and car sectors were also factors weighing on the steel industry.
China is the world's largest steel producer and became a net steel exporter in 2006.
Demand for steel at home has soared in recent years amid a nationwide building boom, which has contributed to spiralling prices worldwide.
Chinese steel giant Baosteel in June agreed to double prices it paid to Anglo-Australian mining group Rio Tinto for steel-grade iron ore. The increase marked the largest recorded annual price spike.
Xinhua quoted analysts saying Chinese steel prices were expected to remain soft for the foreseeable future due to the slowdown in the world economy, Chinese real estate and construction activity, and commodities markets.
Industry analysts also have previously noted growing domestic supplies of steel.
