Jaway Stainless Steel

Monday Market Monitor - China - WEEK 36 - On a cliff hanger

Girdle of impasse seems to be tightening on the Chinese economy. Hitherto China has been at the epicenter of revival in global economy but the unusual silence witnessed over the past couple of months has set the grapevine agog about an imminent misfortune besetting an otherwise spectacular performance.

Piqued at this sudden change of dynamics at the hasting close on the heels of collapsing US and European economy the market found recluse in circumspection. Peak of seasonality yet to come initial signals are evidently discouraging with cracks appearing in the domestic levels after a long ambiguity. Remarkably this is happening at a time when the demand fundamentals were perfectly aligned for a long cherished revival after a gap of nearly 6 months.

Fitch Ratings warned last week that it might downgrade the credit rating of China within two years. Chinese local currency debt rating could face a downgrade over the next 12 to 24 months. With the expectation of severe deterioration in bank asset quality the downgrading seems imminent.

More so the steel mills left with escalating inventory as the market remains unresponsive will be left ruing about the over optimism in unleashing production hike even before the market had come to terms with the changing realities after the US downgrading and EU debt crisis.

A streak of cynicism prevalent all through seems to be gaining credence with each passing day of silence. The mystery though thickening would unravel in no time once the last straw of seasonal demand is lost. With the first week of September ending in wash out the future seems gloomy.

Silhouetted against a morale busting backdrop the task of market revival seems onerous with each passing day. Pinning hopes on the next coincidence after the failure of the previous seems to be the obvious recourse in this dreary milieu.

The Chinese Long Product Price Index CLPPI has gone down by 22 points last week whereas the Chinese Flat Products Index CFPPI has gone down by 1 point. The overall price index CHISPI declined by 10 points.

Class 02-Sep 09-Sep Change %
CLPPI 7683 7661 -22 -0.3%
CFPPI 7657 7656 -1 0.0%
CHISPI 7668 7658 -10 -0.1%


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

Long Products

Category 02-Sep 09-Sep Change %
PI-WRC 6470 6461 -9 -0.1%
PI-Rebar 9150 9113 -37 -0.4%


PI - Product Index

Flat Products

Category 02-Sep 09-Sep Change %
PI-PLTS 6928 6922 -6 -0.1%
PI-HR 7929 7921 -8 -0.1%
PI-CR 7434 7453 19 0.3%
PI-GP 7547 7565 18 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 -20 -3 -0.4%
Hebei Province -20 -3 -0.4%
Jiangsu Province 0 0 0.0%
Shandong Province -30 -5 -0.7%
Shanxi Province 0 0 0.0%
Tianjin -10 -2 -0.2%


Change is on Sep 9th as compared to 2nd Sep 2011
Change is per tonne

WRC
6.5mm
Common

Location CNY USD
Changsha 0 0
Chengdu 0 0
Guiyang -20 -3
Hangzhou 0 0
Kunming 20 3
Nanjing 0 0
Shanghai -20 -3
Urumchi -50 -8
Zhengzhou 0 0


Change is on Sep 9th as compared to 2nd Sep 2011
Change is per tonne

Rebars
20mm
HRB 400

Location CNY USD
Beijing -40 -6
Changsha -20 -3
Chengdu -30 -5
Chongqing -10 -2
Fuzhou -10 -2
Guangzhou 0 0
Guiyang -20 -3
Hangzhou -20 -3
Harbin 0 0
Hefei 0 0
Jinan -20 -3
Kunming 0 0
Lanzhou -70 -11
Nanchang 20 3
Nanjing -30 -5
Shanghai -20 -3
Shenyang -30 -5
Shijiazhuang -30 -5
Taiyuan 0 0
Tianjin -20 -3
Urumchi -100 -15
Wuhan -10 -2
Xian -40 -6
Zhengzhou 0 0


Change is on Sep 9th as compared to 2nd Sep 2011
Change is per tonne

Angle
#5

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


Change is on Sep 9th as compared to 2nd Sep 2011
Change is per tonne

Channel
#16

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


Change is on Sep 9th as compared to 2nd Sep 2011
Change is per tonne

Beam
#25

Location CNY USD
Shanghai 0 0
Hangzhou 30 5
Nanjing 20 3
Jinan 0 0
Hefei 0 0
Fuzhou 0 0
Nanchang 0 0
Guangzhou 0 0
Changsha 0 0
Wuhan 100 15
Zhengzhou -20 -3
Beijing 0 0
Tianjin 0 0
Shijiazhuang 0 0
Taiyuan 0 0
Shenyang 0 0
Harbin 0 0
Chongqing 0 0
Chengdu 0 0
Kunming 0 0
Xian 0 0
Lanzhou -10 -2
Urumchi 0 0


Change is on Sep 9th as compared to 2nd Sep 2011
Change is per tonne

2. Flats products

HRC
4.75mm
Common

Location CNY USD
Beijing 0 0
Changsha 0 0
Chengdu -20 -3
Chongqing -20 -3
Fuzhou 0 0
Guangzhou -40 -6
Hangzhou -30 -5
Harbin 0 0
Hefei 0 0
Jinan 10 2
Kunming 0 0
Lanzhou 0 0
Nanchang 0 0
Nanjing -10 -2
Shanghai -10 -2
Shenyang 0 0
Shijiazhuang -20 -3
Taiyuan -10 -2
Tianjin 0 0
Urumchi -50 -8
Wuhan 0 0
Xian -30 -5
Zhengzhou 20 3


Change is on Sep 9th as compared to 2nd Sep 2011
Change is per tonne

Plates
20mm
Common

Location CNY USD
Beijing 0 0
Changsha 30 5
Chengdu -40 -6
Chongqing 0 0
Fuzhou 0 0
Guangzhou -20 -3
Hangzhou 0 0
Harbin 0 0
Hefei 0 0
Jinan 0 0
Kunming -30 -5
Lanzhou 0 0
Nanchang -40 -6
Nanjing 0 0
Shanghai 0 0
Shenyang 0 0
Taiyuan 0 0
Tianjin 0 0
Urumchi -20 -3
Wuhan 0 0
Xian 0 0
Zhengzhou 0 0


Change is on Sep 9th as compared to 2nd Sep 2011
Change is per tonne

Pig Iron
Z18-22
Foundry

Location CNY USD
Kunming 0 0
Changzhou 0 0
Xuzhou 30 5
Linyi 50 8
Weihai 0 0
Wuan 30 5
Taiyuan 0 0
Yicheng 50 8
Linzhou 0 0
Guiyang 100 15
Harbin 0 0
Anshan 0 0


Change is on Sep 9th as compared to 2nd Sep 2011
Change is per tonne

HR Strip
183*2.75

Location CNY USD
Shanghai 10 2
Hangzhou 0 0
Guangzhou -10 -2
Wuhan 0 0
Tianjin 0 0
Chengdu 0 0
Wuxi 0 0
Lecong -10 -2
Tangshan 0 0


Change is on Sep 9th as compared to 2nd Sep 2011
Change is per tonne

CR
1.0mm
Common

Location CNY USD
Beijing 0 0
Changsha 20 3
Chengdu 30 5
Chongqing 30 5
Fuzhou 0 0
Guangzhou 0 0
Hangzhou 30 5
Harbin 0 0
Hefei 100 15
Jinan 20 3
Kunming 0 0
Lanzhou 0 0
Nanchang 40 6
Nanjing 0 0
Qingdao 30 5
Shanghai 10 2
Shenyang 0 0
Shijiazhuang 0 0
Taiyuan 0 0
Tianjin 20 3
Urumchi -30 -5
Wuhan 50 8
Xian 0 0
Zhengzhou 0 0