Jaway Stainless Steel

Monday Market Monitor - China - WEEK 25 - Dragon still on knees

Chinese steel market was reeling under virulent shivers as the prices collapsed last week. Although the fissures had appeared about a fortnight ago but there was uneasy silence ever since with minor corrections.

It seems the bottled recessionary forces have unleashed ripping the market apart. Prices of both long and flat caved in suddenly indicative of pessimism writ in the market.

A combination of the following factors has thickened the atmosphere culminating in the following
1. Unflagging production leading to stockpiles
2. Fading demand with the approach of monsoon
3. Hike in reserve ratio by another 0.5% on 14th June amidst hike in CPI by 5.5% YoY in June

The only silver lining is the anticipated demand from the incubating plan to construct 10 million subsidized in the 12 Five Year Plan which might just provide the spark for a turnaround.

The Chinese Long Product Price Index CLPPI declined by 122 points last week whereas the Chinese Flat Products Index CFPPI has also gone down by 69 points. The overall price index CHISPI declined by 92 points.

Class 17-Jun 24-Jun Change %
CLPPI 7635 7513 -122 -1.6%
CFPPI 7613 7544 -69 -0.9%
CHISPI 7623 7531 -92 -1.2%


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

Long Products

Category 17-Jun 24-Jun Change %
PI-WRC 6315 6223 -92 -1.5%
PI-Rebar 9232 9074 -158 -1.7%


PI - Product Index

Flat Products

Category 17-Jun 24-Jun Change %
PI-PLTS 7010 6938 -72 -1.0%
PI-HR 7847 7772 -75 -1.0%
PI-CR 7390 7314 -76 -1.0%
PI-GP 7545 7530 -15 -0.2%


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 -110 -16
Hebei Province -160 -23
Jiangsu Province -90 -13
Shandong Province -100 -15
Shanxi Province -30 -4
Tianjin -130 -19


Change is on June 24th as compared to 17th June 2011
Change is per tonne

WRC
6.5mm
Common

Location CNY USD
Changsha -200 -29
Chengdu -30 -4
Guiyang -50 -7
Hangzhou 20 3
Kunming -60 -9
Nanjing -60 -9
Shanghai -80 -12
Urumchi 0 0
Zhengzhou -50 -7


Change is on June 24th as compared to 17th June 2011
Change is per tonne

Rebars
20mm
HRB 400

Location CNY USD
Beijing -130 -19
Changsha -220 -32
Chengdu -20 -3
Chongqing -70 -10
Fuzhou -80 -12
Guangzhou -110 -16
Guiyang -20 -3
Hangzhou -30 -4
Harbin -40 -6
Hefei -110 -16
Jinan -90 -13
Kunming -110 -16
Lanzhou 0 0
Nanchang -100 -15
Nanjing -110 -16
Shanghai -60 -9
Shenyang -50 -7
Shijiazhuang -140 -20
Taiyuan -100 -15
Tianjin -160 -23
Urumchi 0 0
Wuhan -180 -26
Xian -90 -13
Zhengzhou -100 -15


Change is on June 24th as compared to 17th June 2011
Change is per tonne

Angle
#5

Location CNY USD
Shanghai -30 -4
Hangzhou 50 7
Nanjing -20 -3
Jinan -20 -3
Hefei 0 0
Fuzhou -40 -6
Nanchang -60 -9
Guangzhou -30 -4
Changsha -20 -3
Wuhan -30 -4
Zhengzhou 0 0
Beijing 0 0
Tianjin -20 -3
Shijiazhuang 0 0
Taiyuan 0 0
Shenyang 0 0
Harbin 0 0
Chongqing -60 -9
Chengdu -50 -7
Kunming 0 0
Xian 0 0
Lanzhou 0 0
Urumchi 0 0


Change is on June 24th as compared to 17th June 2011
Change is per tonne

Channel
#16

Location CNY USD
Shanghai -40 -6
Hangzhou 0 0
Nanjing -10 -1
Jinan -20 -3
Hefei 0 0
Fuzhou -20 -3
Nanchang -60 -9
Guangzhou -30 -4
Changsha -20 -3
Wuhan 0 0
Zhengzhou 0 0
Beijing 0 0
Tianjin -130 -19
Shijiazhuang 0 0
Taiyuan -20 -3
Shenyang 0 0
Harbin -40 -6
Chongqing -60 -9
Chengdu -60 -9
Kunming -50 -7
Xian 0 0
Lanzhou 0 0
Urumchi 0 0


Change is on June 24th as compared to 17th June 2011
Change is per tonne

Beam
#25

Location CNY USD
Shanghai -20 -3
Hangzhou -20 -3
Nanjing -10 -1
Jinan -50 -7
Hefei 0 0
Fuzhou -30 -4
Nanchang -60 -9
Guangzhou -30 -4
Changsha 0 0
Wuhan -20 -3
Zhengzhou -50 -7
Beijing 0 0
Tianjin -30 -4
Shijiazhuang 0 0
Taiyuan -20 -3
Shenyang 0 0
Harbin -40 -6
Chongqing -30 -4
Chengdu -30 -4
Kunming -20 -3
Xian 0 0
Lanzhou 0 0
Urumchi 0 0


Change is on June 24th as compared to 17th June 2011
Change is per tonne

2. Flats products

HRC
4.75mm
Common

Location CNY USD
Beijing -80 -12
Changsha -80 -12
Chengdu -20 -3
Chongqing -30 -4
Fuzhou -80 -12
Guangzhou -50 -7
Hangzhou -70 -10
Harbin -70 -10
Hefei -100 -15
Jinan -70 -10
Kunming -100 -15
Lanzhou -150 -22
Nanchang -90 -13
Nanjing -60 -9
Shanghai -80 -12
Shenyang -40 -6
Shijiazhuang -10 -1
Taiyuan -130 -19
Tianjin -40 -6
Urumchi 0 0
Wuhan -50 -7
Xian -100 -15
Zhengzhou -30 -4


Change is on June 24th as compared to 17th June 2011
Change is per tonne

Plates
20mm
Common

Location CNY USD
Beijing -20 -3
Changsha -90 -13
Chengdu -60 -9
Chongqing -40 -6
Fuzhou -40 -6
Guangzhou -40 -6
Hangzhou 10 1
Harbin -60 -9
Hefei -90 -13
Jinan -90 -13
Kunming -10 -1
Lanzhou -140 -21
Nanchang -30 -4
Nanjing -110 -16
Shanghai -20 -3
Shenyang -30 -4
Taiyuan -40 -6
Tianjin -60 -9
Urumchi 0 0
Wuhan -140 -21
Xian -20 -3
Zhengzhou 10 1


Change is on June 24th as compared to 17th June 2011
Change is per tonne

Pig Iron
Z18-22
Foundry

Location CNY USD
Kunming 0 0
Changzhou 0 0
Xuzhou 0 0
Linyi -30 -4
Weihai -150 -22
Wuan -30 -4
Taiyuan 0 0
Yicheng -50 -7
Linzhou 0 0
Guiyang 0 0
Harbin 0 0
Anshan 0 0


Change is on June 24th as compared to 17th June 2011
Change is per tonne

HR Strip
183*2.75

Location CNY USD
Shanghai 10 1
Hangzhou -30 -4
Guangzhou -30 -4
Wuhan -40 -6
Tianjin 0 0
Chengdu -30 -4
Wuxi -20 -3
Lecong -30 -4
Tangshan -60 -9


Change is on June 24th as compared to 17th June 2011
Change is per tonne

CR
1.0mm
Common

Location CNY USD
Beijing -30 -4
Changsha -60 -9
Chengdu 0 0
Chongqing -20 -3
Fuzhou -50 -7
Guangzhou -50 -7
Hangzhou -100 -15
Harbin -50 -7
Hefei -100 -15
Jinan -100 -15
Kunming -50 -7
Lanzhou 0 0
Nanchang -70 -10
Nanjing -80 -12
Qingdao -130 -19
Shanghai -50 -7
Shenyang -20 -3
Shijiazhuang -50 -7
Taiyuan 0 0
Tianjin -170 -25
Urumchi -10 -1
Wuhan -70 -10
Xian -50 -7
Zhengzhou -70 -10