Reuters reported that Asian steel prices continued to fall this week to a 1 year low, led by construction use products and are expected to fall further as the demand outlook dims and the credit crisis forces mills to cut inventories.

Even steep output cuts by the world"s biggest steelmakers and iron ore miners has done little to buoy prices, and analysts said more reductions are on the way as demand continues to decline.

In China, prices of benchmark hot rolled coil dropped to a 1 year low of USD 595 a tonne, down by 1% WoW 42% from a record high of USD 1,030 hit in July 2008. Prices of billet fell by 25% to a 3 month low of USD 645 a tonne for China FOB as tightened credit market hit the building industry hard.

In South Korea, Hyundai Steel cut prices for the first time in nearly 3 years, reducing rebar by 9.8% to KRW 921,000 a tonne.