Jaway Stainless Steel

Charge of the lightning brigade commences in China

Chinese steel market had been warming up for some time emanating signals of an imminent revival. The build up to the revival was slow but sure probably indicative of its durability as H2 commences. A resounding gain of 1% within 2 days has sent the cinders flying.

Some of the reasons for the possible turn of fortune are as
1. Demand from the budget housing picking up as years draw to close exerting pressure for completion of yearly targets
2. Power shortage culminating in production cuts in the rolling mills
3. High input material costs e.g. iron ore
4. Urbanization going on gradually in the tier 2 & 3 cities.

Market prices in August opening showed the spot prices on key steel markets like Beijing and Shanghai edged up steadily, with largest growth in construction steel of east China, around CNY 30 per tonne to CNY 50 per tonne. In July alone the average price of 20mm HRB 335 rebar of 25 main cities rose by CNY 101 per tonne and average price of 3.0 mm HRC in 24 main cities increased by CNY 64 per tonne.

Class 29-Jul 02-Aug Change %
CLPPI 7657 7727 70 0.9%
CFPPI 7596 7621 25 0.3%
CHISPI 7622 7667 45 0.6%


CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index

Category 29-Jul 02-Aug Change %
PI-WRC 6395 6456 61 1.0%
PI-Rebar 9184 9264 80 0.9%


Category 29-Jul 02-Aug Change %
PI-PLTS 6911 6935 24 0.3%
PI-HR 8069 8089 20 0.2%
PI-CR 7338 7352 14 0.2%
PI-GP 7517 7519 2 0.0%