The shedding in the domestic levels continued for the second day in week 12 after a peremptory hike in interest rates by the Chinese government by 50 basis points. The blind quest to rein inflation has taken its toll on the nascent revival in the market after the Tsunami in Japan.
Just after the calamity in Japan the Chinese market which had been languishing since New Year sparkled in anticipation of demand for reconstruction in Japan.
However mandarins remained steadfast sticking to the avowed policy of reining inflation. A brutal hike in 50 basis points in lending rate although expected could have been delayed giving time to the fledgling market to gain momentum.
Steel market demand was trapped in wait-and-see sentiment. Furthermore, domestic steel opening prices continued to be low since last Friday, which has blown traders’ confidence. Under pressure of high inventory, prices quotations on 22nd generally dropped due to a strong will of selling products by steel traders. Nearly 1% drop within the 2 days is enough to sap the confidence in the market.
| Class | 18-Mar | 22-Mar | Change | % |
| CLPPI | 7396 | 7354 | -42 | -0.6% |
| CFPPI | 7491 | 7436 | -55 | -0.7% |
| CHISPI | 7450 | 7400 | -50 | -0.7% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
| Category | 18-Mar | 22-Mar | Change | % |
| PI-WRC | 6316 | 6316 | 0 | 0.0% |
| PI-Rebar | 8702 | 8610 | -92 | -1.1% |
| Category | 18-Mar | 22-Mar | Change | % |
| PI-PLTS | 6863 | 6842 | -21 | -0.3% |
| PI-HR | 7652 | 7572 | -80 | -1.0% |
| PI-CR | 7533 | 7508 | -25 | -0.3% |
| PI-GP | 7424 | 7417 | -7 | -0.1% |
PI - Product Index
(Source: www.steelprices-china.com)
With last straw having been taken away sinking of sentiments is inevitable in the short term. It all depends on the real demand cropping up from Japan as well as the neighboring destinations in SE Asia. The void left by the debilitating impact on Japanese mills will be filled by Chinese mills.
A tight money market augurs poorly for the domestic demand nonetheless with demand flowering during summer season and housing projects of the government might provide succor after a fortnight.
www.steelprices-china.com is a comprehensive service for tracking real time domestic steel prices and trends in China on daily basis.
The scope of service includes
1. Domestic pricing information in China
2. Export levels from Turkey, Rotterdam, China, India and Black Sea
The service is specifically designed to assist steel makers, traders, users and others connected with the industry to keep track of real time prices prevailing in the market and thus comprehensively evaluate steel pricing trends in the trend setting region
Methodology and access
1. Benchmark products in each category with fixed commonly used sizes and grades
2. Average transaction levels which have settled well, based on continuous interactions with domestic mills and traders
4. On fixed market oriented payment terms
5. Daily updates
6. Data available since July 2008
5. Access through web site
Products covered
1. Input materials and semis
2. Long Products
3. Flat Products
5. FOB levels for export FOB Black Sea, China, Turkey and India
The prices are displayed on daily, weekly and monthly basis. They also have search facilities to access old data from the archives. Graphical representation of trends and comparison of price movement 2 or more products is also available.
In addition, you can monitor currency exchange rates, metal prices, BDI for the day as well as access their archives for past data.
Other features include converters for weight, length etc, glossary and advanced search functions. The benchmark product price information is supplemented by global pricing news.
Subscription charges for 12 months period
| Currency | Single | 2-5 | 6-12 | 13-25 | 26-40 | 40-60 |
| In CNY | 5,500 | 11,000 | 17,600 | 33,000 | 55,000 | 220,000 |
| In USD | 825 | 1,650 | 2,750 | 5,500 | 8,250 | 11,000 |
How to subscribe
1. Register at www.steelprices-china.com and pay on line or ask for invoice
2. Send mail to admin@steelprices-china.com.
(Sourced from www.steelprices-china.com)
