CHINA'S domestic steel prices plummeted an average 12 percent last week, the biggest single-week decline since 2000, The China Securities Journal reported yesterday.

Analysts attributed the drastic drop to worldwide economic turmoil, a weak demand for steel products and high sales expectations set after the Olympics and the week-long National Day holiday.

As of last Friday, prices for hot-rolled coil, in 10 major cities, averaged 3,867 yuan (US$566) a ton, down 734 yuan or 15.96 percent from prices before the national holiday, according to Lange Steel, the country's steel information research institute.

Steel hit a record high price of 5,960 yuan a ton on June 5.

The institute reported that prices for medium plate and cold-rolled coil averaged 4,550 yuan a ton and 5,264 yuan a ton, respectively.

That's down 12.75 percent and 9.63 percent, compared with prices at the end of September.

Xu Xiangchun, a senior industry analyst with the Mysteel.com Website, said slacking sales, an excess of steel in storage and lowered confidence in the country's macro-economy caused domestic steel prices to fall.

Iron ore also fell - it was 1,200 yuan a ton at the end of September, 12.4 percent lower.