Jaway Stainless Steel

Monday Market Monitor - China - WEEK 30 - Continues to climb

Tranquility prevailed in the Chinese waters last week although the mysterious solitude has bemused experts since it unusually long.

Steel market in China has all through been a happening place. Turnaround in the prices has been avidly anticipated for the past fortnight. The market has been ambivalent with a proclivity for improvement.

After a near washout in Q2 as the demand from all key sectors slackened as the game of up man ship accentuated between the PBOC and market. Most of the planned expenditure on infrastructure and housing was kept in abeyance as the market grappled with runaway inflation and its surgical malady. Astonishingly mills have been on rampaging production touching almost 2 million tonne per day in June exuding a mysterious confidence. Remarkably the stock at all major locations for flat and long products has been maintained within manageable limits all through possibly an outcome of urbanization chugging along.

Nonetheless the major projects viz., 10 million budget housing and infrastructure development are yet take off in full swing. At the same time input cost has been obdurate decimating bottom lines of the mills compelling them to yearn for increasing mark ups. Silhouetted in the background of despondency the moment seems ripe for backlash whipping up buying in H2 to accomplish unfulfilled plan targets.

The market footprints have been guarded gradually creeping as the monsoon abates. Concurrently the global market is portending to unfold buying from the famished quarters of MENA and EU countries after the holidays.

The Chinese Long Product Price Index CLPPI surged by 28 points last week whereas the Chinese Flat Products Index CFPPI has also gone up by 14 points. The overall price index CHISPI inclined by 20 points.

Class 22-Jul 29-Jul Change %
CLPPI 7629 7657 28 0.4%
CFPPI 7582 7596 14 0.2%
CHISPI 7602 7622 20 0.3%


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

Long Products

Category 22-Jul 29-Jul Change %
PI-WRC 6357 6395 38 0.6%
PI-Rebar 9168 9184 16 0.2%


PI - Product Index

Flat Products

Category 22-Jul 29-Jul Change %
PI-PLTS 6902 6911 9 0.1%
PI-HR 7844 7862 18 0.2%
PI-CR 7326 7338 12 0.2%
PI-GP 7518 7517 -1 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 10 2
Hebei Province 30 5
Jiangsu Province 20 3
Shandong Province 60 9
Shanxi Province 50 8
Tianjin 30 5


Change is on July 29th as compared to 22nd July 2011
Change is per tonne

WRC
6.5mm
Common

Location CNY USD
Changsha 20 3
Chengdu 20 3
Guiyang 40 6
Hangzhou 0 0
Kunming 30 5
Nanjing 50 8
Shanghai 70 11
Urumchi 0 0
Zhengzhou 20 3


Change is on July 29th as compared to 22nd July 2011
Change is per tonne

Rebars
20mm
HRB 400

Location CNY USD
Beijing -10 -2
Changsha 30 5
Chengdu 20 3
Chongqing 20 3
Fuzhou 30 5
Guangzhou 0 0
Guiyang 0 0
Hangzhou 0 0
Harbin 10 2
Hefei 10 2
Jinan -20 -3
Kunming 30 5
Lanzhou 0 0
Nanchang 0 0
Nanjing 20 3
Shanghai 10 2
Shenyang 10 2
Shijiazhuang -10 -2
Taiyuan -20 -3
Tianjin 0 0
Urumchi 0 0
Wuhan 20 3
Xian 50 8
Zhengzhou 20 3


Change is on July 29th as compared to 22nd July 2011
Change is per tonne

Angle
#5

Location CNY USD
Shanghai 50 8
Hangzhou 0 0
Nanjing 20 3
Jinan 0 0
Hefei 0 0
Fuzhou 0 0
Nanchang 0 0
Guangzhou 0 0
Changsha 50 8
Wuhan 0 0
Zhengzhou 0 0
Beijing 30 5
Tianjin 60 9
Shijiazhuang 50 8
Taiyuan 0 0
Shenyang 0 0
Harbin 0 0
Chongqing 0 0
Chengdu 0 0
Kunming 30 5
Xian 0 0
Lanzhou 0 0
Urumchi 0 0


Change is on July 29th as compared to 22nd July 2011
Change is per tonne

Channel
#16

Location CNY USD
Shanghai 20 3
Hangzhou 0 0
Nanjing 20 3
Jinan 0 0
Hefei 0 0
Fuzhou 0 0
Nanchang 0 0
Guangzhou 50 8
Changsha 20 3
Wuhan 0 0
Zhengzhou 0 0
Beijing 20 3
Tianjin 30 5
Shijiazhuang 50 8
Taiyuan 0 0
Shenyang 20 3
Harbin 0 0
Chongqing 0 0
Chengdu 0 0
Kunming 50 8
Xian 0 0
Lanzhou 20 3
Urumchi 0 0


Change is on July 29th as compared to 22nd July 2011
Change is per tonne

Beam
#25

Location CNY USD
Shanghai 20 3
Hangzhou 0 0
Nanjing 20 3
Jinan 0 0
Hefei 0 0
Fuzhou 0 0
Nanchang 0 0
Guangzhou 0 0
Changsha 0 0
Wuhan 50 8
Zhengzhou 0 0
Beijing 20 3
Tianjin 0 0
Shijiazhuang 50 8
Taiyuan 0 0
Shenyang 0 0
Harbin 0 0
Chongqing 0 0
Chengdu 0 0
Kunming 50 8
Xian 0 0
Lanzhou 0 0
Urumchi 0 0


Change is on July 29th as compared to 22nd July 2011
Change is per tonne

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