After a steady rise, POSCO shares tumbled on March 22 amid forecasts that China's construction market may cool down, which would likely to lead to a decline in steel prices. On March 22, POSCO shares closed at 280,500 won, down 4.27 percent or 12,500 won from the previous day.
The tumble came after the Chinese government showed its will to cool down the red-hot real estate market by issuing a string of restrictions on housing purchases in large cities, including Beijing, on March 20.
According to foreign media reports, China's housing prices rose by more than 10 percent during the first two months of this year. Amid reports that China's construction boom could end any time soon, the price of iron ore, the main ingredient in steel, plunged to US$87.50 per ton on March 22, down 4.26 percent from $91.50 a day ago.
Against this backdrop, the share prices of U.S. steel makers, including U.S. Steel and Nucor, nosedived by 9.0 percent and 5.16 percent, respectively, in a single day.