Steel prices lowest in 20 years

Shanghai
Chinese steel prices are at their lowest in more than 20 years as demand in the world's top producer wanes, industry data shows, and some analysts say the free-fall is not even close to an end, threatening the survival of small steelmakers.
A composite price index of eight steel products compiled by the China Iron & Steel Association (CISA) fell to 65.28 points last Friday. The index is based on 1994 reference prices, meaning that prices are now nearly 35 percent lower than they were 21 years ago.
While the association did not begin compiling regular data until 2001, current prices are already believed to be lower than 1999, when the industry was hit by the Asian financial crisis.
Last year, when the index fell to 95, CISA secretary general Liu Zhenjiang said it was already at its lowest ever.
The stuttering Chinese economy is hitting demand for a range of commodities including iron ore, steel and copper.