The Associated Press

(AP) - WHAT HAPPENED: China's biggest steelmaker, Baosteel Group, has shut down a mill in Shanghai to avoid mounting losses at the facility amid weak demand for steel plate that is used in shipbuilding and construction.

WHAT IT MEANS: The mill's closing the latest sign of weakening growth in the world's second-largest economy. Growth fell to a three-year low in the latest quarter and officials including President Hu Jintao have warned it could fall further before rebounding.

INDUSTRY IMPACT: The move reflects the painful squeeze that has hit producers of steel, aluminum, cement and other industrial goods as Chinese demand recedes.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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