Jaway Stainless Steel

Revival in Asian market stalls the domestic debacle in China

Domestic market in China took a breather after Asian markets bounced back on US Federal Reserve assurance of keeping the lending rate at near 0% for the next 2 years.

A general sense of relief was reflected in the domestic market which had taken a confidence shattering blow over the last couple of days in the aftermath of S&P downgrading US economy.

We have all through maintained that the run up to an imminent revival in Chinese market was temporarily impeded but not routed as the fundamentals remained strong.

The market fell into silence with the whirlwind tapering off. Incidentally the economic compulsions remained undeterred with the CPI at 6.5% high YoY on 9th August and the PMI slumping to 50.7 down 0.2% MoM. With the industry production desperately clinging on to growth setting seemed to be disappointing.

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.

Concurrently the reasons for turnaround remain valid and it is matter of time before it blossoms.

Rebar
20mm
HRB 400

Location CNY
Shanghai -10
Hangzhou 0
Nanjing 0
Jinan 0
Hefei 0
Fuzhou -20
Nanchang 0
Guangzhou -30
Changsha -20
Wuhan -20
Zhengzhou 0
Beijing -10
Tianjin -30
Shijiazhuang -30
Taiyuan 0
Shenyang -10
Harbin 0
Chongqing 0
Chengdu 0
Guiyang 0
Kunming -60
Xian -20
Lanzhou -50
Urumchi 0


Change is on Aug 10th as compared to 9th August 2011
In CNY per tonne
HRC
4.75mm
Common

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


Change is on Aug 10th as compared to 9th August 2011
In CNY per tonne