Domestic price in China absorbs the shock of global turmoil

The domestic prices of long and flat products in China declined after a break of 5 weeks under the global shocker. Murky Monday after the Black Friday sent rippling waves to the farther corners of China. Despite the unambiguous resilience shown recently by the domestic market in China sheer force of the global turmoil in the aftermath of downgrading of US left indelible marks on the Chinese contour.

Fears of a worsening crisis in Europe exacerbated the prevailing risk off mood, plunging the Hang Seng Index and Shanghai Composite index to their lowest in more than a year. The Hang Seng Index was down 4.04% at 20,100.2 by the midday trading break, its lowest level in a year.

While it is in line with global markets, the fall should be short-lived and is likely to last only one or two days. A strong rebound, however, is not expected immediately amid weak market confidence.

The twin fortunes of construction of 10 million budget housing and on going urbanisation in tier 2 and 3 cities along with a strong iron ore prices propped by shortage from India will certainly facilitate rebound.
At the same time PBOC is expected to be slow in hiking lending rates regardless of 6% CPI in July as the nation tightens its belt to ward off turbulence.

HRB 400

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

Change is on Aug 8th as compared to 5th August 2011
In CNY per tonne


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

Change is on Aug 8th as compared to 5th August 2011
In CNY per tonne

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