Jaway Stainless Steel

China - WEEK 32 - Hit by global turbulence

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