The Chinese Long Product Price Index CLPPI improved by 51 point whereas the Chinese Flat Products Index CFPPI too followed suit with a gain of 43 points. The overall price index CHISPI improved by 47 points.
| Class | 30-Oct | 06-Nov | Change | % |
| CLPPI | 5779 | 5830 | 51 | 0.9% |
| CFPPI | 5775 | 5819 | 43 | 0.7% |
| CHISPI | 5777 | 5824 | 47 | 0.8% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Long Products
| Category | 30-Oct | 06-Nov | Change | % |
| PI-WRC | 5019 | 5057 | 38 | 0.8% |
| PI-Rebar | 6698 | 6766 | 67 | 1.0% |
PI - Product Index
Flat Products
| Category | 30-Oct | 06-Nov | Change | % |
| PI-PLTS | 5002 | 5029 | 27 | 0.5% |
| PI-HR | 5711 | 5768 | 57 | 1.0% |
| PI-CR | 6454 | 6501 | 47 | 0.7% |
| PI-GP | 6196 | 6170 | -26 | -0.4% |
PI - Product Index
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Chinese steel market may have a hard time in the last quarter. The environment in general is complex. Some downstream user sector, for example the auto industry is having very strong demand despite downward pressure on prices due to overcapacity and high output.
In last few days, middle and small steel mills have increased their EXW price as a sign of confidence in the changed market conditions. As a result, prices of steel products are rising.
But with winter on the anvil, demand of construction steel may decrease because of the less construction. Thus it is predicted that the upward tendency in steel prices may be arrested leading to a stable price regime.
China Daily reported that Chinese steel output may rise 10% YoY in 2009, aggravating the steel sector's oversupply problems. Chinese steel output rose 7.5% YoY to 420 million tonnes in the first nine months of the year
China Iron & Steel Association at a media briefing that crude steel output would rise by 50 million tonnes to 550 million tonnes this year., according to official data.
Mr Luo Bingsheng vice chairman of CISA said that Chinese steel production capacity would rise by 58 million tonnes this year, from 660 million tonnes in 2008.
Mr Luo said that “Oversupply problems have weighed heavily on steel prices and squeezed profit margins. This could lead to a more difficult situation in the fourth quarter and extend to the next year also.”
He admitted that “The oversupply situation will take a long time to sort out, given the fact that some steel mills are expanding capacity in the name of modernization or increasing it without necessary approval.”
CISA also reported that stockpiles of steel at 26 Chinese cities grew 5.3 million tonnes to 11.1 million tonnes in the first nine months.
According to Mr Zhang Dongyong GM of Shanghai Gaiqun Trade Ltd, "We expect that the steel market price will continue fluctuation in adjustment in near future given the soft backup for deep rally based on our observation."
He said that the behavior of the market which went up first and then down in Shanghai is largely a result of the electric trade market or financial policy changes. Common carbon HR products have rebounded at CNY 3550 per tonne from earlier CNY 3250 per tonne to CNY 3280 per tonne and then swung and slip to CNY 3450 per tonne late last week and was traded at CNY 3420 per tonne on Thursday.
He added that there are absolutely no drives for the steep rise of HR price given the bleak spot market.
Mr Zhang Dongyong said "The biggest obstacles before the spot market rise would be the booming inventory and unbridled production release. Steel mills have always balked at the moves to cut production whenever the HR market kept falling in earlier period or started rally afterwards. The inventory has got substantially increased as a result. Now the HRC stockpile in Shanghai market has amounted to 1.3 million tonnes and is expected to beat 2 million tonnes.”
He said that "Another factor responsible for future market behavior is the funds available in the market. Banks are now withdrawing the fund. The Central Bank will likely strengthen it to dampen the risk of inflation.”
Mr Zhang said HRC price will be adjusted downward amid fluctuation. After this round of correction, expectedly in the whole November there probably will be a rally to a mild extent. Both ex-works and spot prices of HRC will remain at CNY 3500 per tonne or so.
He said that "But the market is expected to get on an even keel and start picking up from next March."
1. Long products - Faint revival
Billets
150*150
Q235
| Location | CNY | USD | % |
| Jiangsu Province | 50 | 7 | 1.5% |
| Shandong Province | 80 | 12 | 2.5% |
| Hebei Province | 50 | 7 | 1.6% |
| Shanxi Province | 30 | 4 | 1.0% |
| Tianjin | 50 | 7 | 1.6% |
| Fujian Province | 50 | 7 | 1.5% |
Change is on November 6th as compared to October 30th 2009
Change is per tonne
WRC
6.5mm
Common
| Location | CNY | USD | % |
| Shanghai | 50 | 7 | 1.4% |
| Hangzhou | 0 | 0 | 0.0% |
| Nanjing | 50 | 7 | 1.4% |
| Changsha | 50 | 7 | 1.4% |
| Zhengzhou | 20 | 3 | 0.6% |
| Chengdu | 30 | 4 | 0.8% |
| Guiyang | 60 | 9 | 1.6% |
| Kunming | 20 | 3 | 0.5% |
| Urumchi | 0 | 0 | 0.0% |
Change is on November 6th as compared to October 30th 2009
Change is per tonne
Rebars
20mm
HRB 400
| Location | CNY | USD | % |
| Shanghai | 70 | 10 | 1.9% |
| Hangzhou | 40 | 6 | 1.1% |
| Nanjing | 80 | 12 | 2.1% |
| Jinan | 30 | 4 | 0.8% |
| Hefei | 140 | 20 | 3.6% |
| Fuzhou | 120 | 18 | 3.2% |
| Nanchang | 50 | 7 | 1.3% |
| Guangzhou | 10 | 1 | 0.3% |
| Changsha | 40 | 6 | 1.0% |
| Wuhan | 60 | 9 | 1.6% |
| Zhengzhou | 10 | 1 | 0.3% |
| Beijing | 20 | 3 | 0.5% |
| Tianjin | 20 | 3 | 0.5% |
| Shijiazhuang | 20 | 3 | 0.5% |
| Taiyuan | -80 | -12 | -2.2% |
| Shenyang | 0 | 0 | 0.0% |
| Harbin | 0 | 0 | 0.0% |
| Chongqing | 60 | 9 | 1.6% |
| Chengdu | 30 | 4 | 0.8% |
| Guiyang | 10 | 1 | 0.3% |
| Kunming | 0 | 0 | 0.0% |
| Xian | 30 | 4 | 0.8% |
| Lanzhou | 80 | 12 | 2.1% |
| Urumchi | 50 | 7 | 1.3% |
Change is on November 6th as compared to October 30th 2009
Change is per tonne
2. Flats - Sea saw sentiments amidst stock piling
HRC
4.75mm
Common
| Location | CNY | USD | % |
| Shanghai | 80 | 12 | 2.2% |
| Hangzhou | 70 | 10 | 2.0% |
| Nanjing | 40 | 6 | 1.1% |
| Jinan | 0 | 0 | 0.0% |
| Hefei | 30 | 4 | 0.8% |
| Fuzhou | 150 | 22 | 4.1% |
| Nanchang | 0 | 0 | 0.0% |
| Guangzhou | 30 | 4 | 0.8% |
| Changsha | 0 | 0 | 0.0% |
| Wuhan | 70 | 10 | 1.9% |
| Zhengzhou | 20 | 3 | 0.6% |
| Beijing | -30 | -4 | -0.9% |
| Tianjin | -20 | -3 | -0.6% |
| Shijiazhuang | 30 | 4 | 0.9% |
| Taiyuan | 50 | 7 | 1.4% |
| Shenyang | 0 | 0 | 0.0% |
| Harbin | 0 | 0 | 0.0% |
| Chongqing | 30 | 4 | 0.8% |
| Chengdu | 30 | 4 | 0.8% |
| Kunming | 0 | 0 | 0.0% |
| Xian | 100 | 15 | 2.8% |
| Lanzhou | 70 | 10 | 2.0% |
| Urumchi | 50 | 7 | 1.4% |
Change is on November 6th as compared to October 30th 2009
Change is per tonne
Plates
20mm
Common
| Location | CNY | USD | % |
| Shanghai | 0 | 0 | 0.0% |
| Hangzhou | 40 | 6 | 1.1% |
| Nanjing | 30 | 4 | 0.8% |
| Jinan | 0 | 0 | 0.0% |
| Hefei | 40 | 6 | 1.1% |
| Fuzhou | 50 | 7 | 1.4% |
| Nanchang | 20 | 3 | 0.5% |
| Guangzhou | 50 | 7 | 1.4% |
| Changsha | 10 | 1 | 0.3% |
| Wuhan | 20 | 3 | 0.6% |
| Zhengzhou | 0 | 0 | 0.0% |
| Beijing | 60 | 9 | 1.8% |
| Tianjin | 60 | 9 | 1.8% |
| Taiyuan | 0 | 0 | 0.0% |
| Shenyang | 0 | 0 | 0.0% |
| Harbin | 0 | 0 | 0.0% |
| Chongqing | 0 | 0 | 0.0% |
| Chengdu | 10 | 1 | 0.3% |
| Kunming | -10 | -1 | -0.3% |
| Xian | 50 | 7 | 1.4% |
| Lanzhou | 0 | 0 | 0.0% |
| Urumchi | 0 | 0 | 0.0% |
Change is on November 6th as compared to October 30th 2009
Change is per tonne
CR
1.0mm
Common
| Location | CNY | USD | % |
| Shanghai | 50 | 7 | 1.0% |
| Hangzhou | 30 | 4 | 0.6% |
| Nanjing | 20 | 3 | 0.4% |
| Jinan | 50 | 7 | 1.0% |
| Qingdao | 120 | 18 | 2.4% |
| Hefei | 30 | 4 | 0.6% |
| Fuzhou | 100 | 15 | 2.0% |
| Nanchang | 50 | 7 | 1.0% |
| Guangzhou | 100 | 15 | 2.0% |
| Changsha | 50 | 7 | 1.1% |
| Wuhan | 50 | 7 | 1.1% |
| Zhengzhou | 20 | 3 | 0.4% |
| Beijing | 50 | 7 | 1.0% |
| Tianjin | 0 | 0 | 0.0% |
| Shijiazhuang | 0 | 0 | 0.0% |
| Taiyuan | 0 | 0 | 0.0% |
| Shenyang | 0 | 0 | 0.0% |
| Harbin | 50 | 7 | 1.0% |
| Chongqing | 0 | 0 | 0.0% |
| Chengdu | 80 | 12 | 1.7% |
| Kunming | 0 | 0 | 0.0% |
| Xian | 0 | 0 | 0.0% |
| Lanzhou | 0 | 0 | 0.0% |
| Urumchi | 0 | 0 | 0.0% |
Change is on November 6th as compared to October 30th 2009
Change is per tonne
HDG
0.5mm
Common
| Location | CNY | USD | % |
| Shanghai | 150 | 22 | 3.1% |
| Hangzhou | 100 | 15 | 1.9% |
| Beijing | 120 | 18 | 2.4% |
| Tianjin | 100 | 15 | 2.0% |
| Boxing | 80 | 12 | 1.7% |
| Guangzhou | 50 | 7 | 1.0% |
| Zhengzhou | 0 | 0 | 0.0% |
| Xian | -50 | -7 | -1.0% |
| Shenyang | 200 | 29 | 4.0% |
| Harbin | 0 | 0 | 0.0% |
| Nanchang | 0 | 0 | 0.0% |
| Fuzhou | 0 | 0 | 0.0% |
| Chongqing | 80 | 12 | 1.6% |
| Wuhan | 100 | 15 | 1.9% |
Change is on November 6th as compared to October 30th 2009
Change is per tonne
3. Export levels - Price firms up by USD 20 pmt
On the strength of rise in domestic levels, Chinese mills tried to increase the export levels a bit. It is learnt that the current export prices are at USD 470 per tonne FOB basis as compared to lowest heard levels of USD 450 per tonne. Kindly note that these offers are for HRC in 3 mm to 12mm in 1250/1500mm width in SS400 grade and thinner sizes & grades have substantial extras pushing the CFR prices up.
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