[Harga baja Cina mandeg/stagnan mengantisipasi pelemahan permintaan/pertumbuhan akibat kenaikan bunga pinjaman.]
relevant extract: Steel prices on the Chinese market remained unchanged this week, with the short-term impact of China's surprise interest rate hike on Tuesday adding to long-standing concerns about oversupply as the winter off-season approaches. The prices of construction steel in Shanghai stood at 4,170 yuan per tonne on Wednesday, the same as last week, with supplies ample and traders and downstream consumers now anticipating a seasonal slowdown in demand. "Prices are unlikely to show much upside in this off-peak quarter," said Su-Aik Lim, steel analyst with Fitch Ratings in Beijing. RATE HIKE WORRIES There were immediate concerns that the decision of the People's Bank of China to raise interest rates by 25 basis points would erode already fragile sentiment in the Chinese steel sector. The industry was protected from the worst of the global economic downturn by a stimulus-led construction boom in 2009. The psychological importance of real estate was demonstrated in April this year when the central government began its crackdown on the property bubble, leading to a four-month slump in steel prices. But analysts said this time the impact was likely to be limited. "Demand for steel will be affected in the event of a slowing in China's economic growth as a result of rising interest rates, especially if investment spending slows," said Lim of Fitch Ratings.
