UPDATE 1-China Baosteel keeps June prices unchanged

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SHANGHAI, April 27 (Reuters) - Baoshan Iron and Steel Co Ltd (600019.SS), the listed unit of China's largest steel maker, has kept June prices for major steel products unchanged from May, industry website Mysteel said on Monday.

The decision, following price cuts in April and May, reflects the market's outlook that Chinese steel prices will probably not weaken much further, after slipping to a five-month low last week, analysts and traders said.

Prices for hot-rolled steel products will remain at 3,292 yuan ($482.4) per tonne, and prices for cold-rolled steel products will be unchanged at 3,826 yuan ($560.7) per tonne for June.

"Baosteel's decision was not beyond market expectations. There were some forecasts that steel prices in China would stablise or even rebound in the reminder of the second quarter due to more active purchases," said analyst Jiang Qiu at Guotai and Junan Securities.

Prices of China's benchmark hot-rolled coil fell 4.2 percent to around 3,190 yuan ($467.2) a tonne last week from 3,245/3,415 yuan quoted the previous week, data from Metal Bulletin showed.

For a graphic on Chinese spot steel prices, click:

here

Analysts also mentioned that Baosteel's earnings in the second quarter should outperform that of the first quarter, as a result of a decline in iron ore prices and in spite of weaker steel prices.

Baosteel's state-owned parent is China's largest steelmaking group, Baosteel Group. The group represents China's annual iron ore price negotiations with miners Vale (VALE5.SA), Rio Tinto (RIO.AX) (RIO.L) and BHP Billion (BHP.AX) (BLT.L), and this year the Chinese companies are demanding a price cut. ($1=6.824 Yuan) (Reporting by Alfred Cang and Jacqueline Wong)