China Steel said that it will slash domestic prices in April and May on weak demand during the global downturn, but it expects a pickup on stronger demand from China.

Asia"s 17th largest steelmaker said it will lower the prices by an average 14%, its second straight cut, reflecting weak demand.

China Steel in a statement said that "The decision of the cut is aimed to help local downstream makers to aggressively win orders in overseas markets.”

It said that “Steel prices in most countries have stabilized on supply cuts. Those of China, in particular, have risen since late November adding the cut will apply to April and May only, because China Steel is optimistic about future prices in June.”