The selloff in Chinese stocks continued today and a major Japanese automaker has turned low steel prices into a cut in its supply costs.
Chinese Stock Market Still Falling
Chinese stocks plummeted Monday, erasing gains for the year, as fears about the deepening effects of a slowdown in the world’s No. 2 economy rattled investors world-wide.
The Shanghai Composite Index closed down 8.5% at 3,209.91, bringing its losses since its mid-June peak to nearly 38%.
China’s main stock index has now tipped into negative territory for the year after gaining as much as 60% through its June peak. Benchmarks in Japan and Australia both shed nearly 4%.
At the heart of the selloff is the concern that the once-strong Chinese economy may be slowing down dramatically, which has triggered steep losses in global stock markets, commodities and emerging markets.
Toyota, Steel Suppliers Agree to Price Cut
Toyota Motor Corp. and major Japanese steel makers have agreed to lower prices for steel sheet for the April-September period, marking the first price cut in a year, industry sources told the Japan Times on Thursday.
Toyota and the steelmakers, including Nippon Steel & Sumitomo Metal Corp., reached the agreement as prices for iron ore and coal have dropped precipitously and are not expected to rise soon.