Living up to the global trend in the financial markets, the Chinese domestic steel market last week capitulated with gradual decrease.
The steel mills went in huddle opting to wait and watch before committing any prices correction for September. Given the indomitable nature of Chinese resilience a turnaround is on the offing at the earliest opportunity. Despite the shrill of power rationing and rationalization the production figures have been ascending m o m with impunity.
Recent past is puckered with resurgent production growth averaging almost 1.95 million tonnes in mid July against all odds. The social inventory has all through been maintained at healthy levels signifying regular consumption.
However the correction in domestic levels did provide an opportunity to the fence sitters to replenish inventory in the milieu to hedge against hike in prices.
Recoil won’t be far given the demand fundamentals being strong on the following counts:
1. 10 million budget housing
2. Urbanization in tier 2 & 3 cities
3. Pick up in demand of automobiles and white goods
The Chinese Long Product Price Index CLPPI in downward trends with 30 points last week whereas the Chinese Flat Products Index CFPPI has also gone down by 19 points. The overall price index CHISPI declined by 24 points.
| Class |
05-Aug |
12-Aug |
Change |
%
|
| CLPPI |
7752 |
7722 |
-30 |
-0.4%
|
| CFPPI |
7633 |
7614 |
-19 |
-0.2%
|
| CHISPI |
7685 |
7661 |
-24 |
-0.3% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Long Products
| Category |
05-Aug |
12-Aug |
Change |
%
|
| PI-WRC |
6492 |
6489 |
-3 |
0.0%
|
| PI-Rebar |
9276 |
9214 |
-62 |
-0.7% |
PI - Product Index
Flat Products
| Category |
05-Aug |
12-Aug |
Change |
%
|
| PI-PLTS |
6949 |
6925 |
-24 |
-0.3%
|
| PI-HR |
7907 |
7881 |
-26 |
-0.3%
|
| PI-CR |
7359 |
7363 |
4 |
0.1%
|
| PI-GP |
7530 |
7528 |
-2 |
0.0% |
PI - Product Index
To know more about these indices please visit
http://steelprices-china.com/spi_services/spi.html
1. Long products
Billets
150*150
Q235
| Location |
CNY |
USD
|
| Fujian Province |
-50 |
-8
|
| Hebei Province |
-30 |
-5
|
| Jiangsu Province |
-20 |
-3
|
| Shandong Province |
-50 |
-8
|
| Shanxi Province |
-20 |
-3
|
| Tianjin |
-90 |
-14 |
Change is on Aug 12th as compared to 5th Aug 2011
Change is per tonne
WRC
6.5mm
Common
| Location |
CNY |
USD
|
| Changsha |
-30 |
-5
|
| Chengdu |
0 |
0
|
| Guiyang |
60 |
9
|
| Hangzhou |
-30 |
-5
|
| Kunming |
-30 |
-5
|
| Nanjing |
-10 |
-2
|
| Shanghai |
40 |
6
|
| Urumchi |
100 |
15
|
| Zhengzhou |
0 |
0 |
Change is on Aug 12th as compared to 5th Aug 2011
Change is per tonne
Rebars
20mm
HRB 400
| Location |
CNY |
USD
|
| Beijing |
-50 |
-8
|
| Changsha |
-60 |
-9
|
| Chengdu |
-30 |
-5
|
| Chongqing |
-30 |
-5
|
| Fuzhou |
-100 |
-15
|
| Guangzhou |
-50 |
-8
|
| Guiyang |
-10 |
-2
|
| Hangzhou |
-30 |
-5
|
| Harbin |
0 |
0
|
| Hefei |
-50 |
-8
|
| Jinan |
-50 |
-8
|
| Kunming |
-60 |
-9
|
| Lanzhou |
-50 |
-8
|
| Nanchang |
-20 |
-3
|
| Nanjing |
-40 |
-6
|
| Shanghai |
-40 |
-6
|
| Shenyang |
-30 |
-5
|
| Shijiazhuang |
-50 |
-8
|
| Taiyuan |
0 |
0
|
| Tianjin |
-60 |
-9
|
| Urumchi |
100 |
15
|
| Wuhan |
-60 |
-9
|
| Xian |
-40 |
-6
|
| Zhengzhou |
-20 |
-3 |
Change is on Aug 12th as compared to 5th Aug 2011
Change is per tonne
Angle
#5
| Location |
CNY |
USD
|
| Shanghai |
0 |
0
|
| Hangzhou |
0 |
0
|
| Nanjing |
-10 |
-2
|
| Jinan |
0 |
0
|
| Hefei |
-30 |
-5
|
| Fuzhou |
0 |
0
|
| Nanchang |
0 |
0
|
| Guangzhou |
0 |
0
|
| Changsha |
0 |
0
|
| Wuhan |
0 |
0
|
| Zhengzhou |
0 |
0
|
| Beijing |
0 |
0
|
| Tianjin |
-20 |
-3
|
| Shijiazhuang |
0 |
0
|
| Taiyuan |
0 |
0
|
| Shenyang |
0 |
0
|
| Harbin |
0 |
0
|
| Chongqing |
0 |
0
|
| Chengdu |
-10 |
-2
|
| Kunming |
-20 |
-3
|
| Xian |
0 |
0
|
| Lanzhou |
0 |
0
|
| Urumchi |
0 |
0 |
Change is on Aug 12th as compared to 5th Aug 2011
Change is per tonne
Channel
#16
| Location |
CNY |
USD
|
| Shanghai |
0 |
0
|
| Hangzhou |
-20 |
-3
|
| Nanjing |
-10 |
-2
|
| Jinan |
0 |
0
|
| Hefei |
-30 |
-5
|
| Fuzhou |
0 |
0
|
| Nanchang |
0 |
0
|
| Guangzhou |
0 |
0
|
| Changsha |
0 |
0
|
| Wuhan |
0 |
0
|
| Zhengzhou |
0 |
0
|
| Beijing |
0 |
0
|
| Tianjin |
-40 |
-6
|
| Shijiazhuang |
0 |
0
|
| Taiyuan |
0 |
0
|
| Shenyang |
0 |
0
|
| Harbin |
0 |
0
|
| Chongqing |
0 |
0
|
| Chengdu |
0 |
0
|
| Kunming |
-20 |
-3
|
| Xian |
0 |
0
|
| Lanzhou |
0 |
0
|
| Urumchi |
0 |
0 |
Change is on Aug 12th as compared to 5th Aug 2011
Change is per tonne
Beam
#25
| Location |
CNY |
USD
|
| Shanghai |
-70 |
-11
|
| Hangzhou |
0 |
0
|
| Nanjing |
-30 |
-5
|
| Jinan |
0 |
0
|
| Hefei |
0 |
0
|
| Fuzhou |
0 |
0
|
| Nanchang |
0 |
0
|
| Guangzhou |
0 |
0
|
| Changsha |
0 |
0
|
| Wuhan |
0 |
0
|
| Zhengzhou |
0 |
0
|
| Beijing |
0 |
0
|
| Tianjin |
-20 |
-3
|
| Shijiazhuang |
0 |
0
|
| Taiyuan |
0 |
0
|
| Shenyang |
0 |
0
|
| Harbin |
0 |
0
|
| Chongqing |
-20 |
-3
|
| Chengdu |
-20 |
-3
|
| Kunming |
-30 |
-5
|
| Xian |
0 |
0
|
| Lanzhou |
0 |
0
|
| Urumchi |
0 |
0
|
|
