The Chinese Long Product Price Index CLPPI improved by 75 point whereas the Chinese Flat Products Index CFPPI continued improving by posting gain of whooping 113 points. The overall price index CHISPI increased by mare 96 points.
| Class | 06-Nov | 13-Nov | Change | % |
| CLPPI | 5830 | 5905 | 75 | 1.3% |
| CFPPI | 5819 | 5932 | 113 | 1.9% |
| CHISPI | 5824 | 5920 | 96 | 1.7% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Long Products
| Category | 06-Nov | 13-Nov | Change | % |
| PI-WRC | 5057 | 5125 | 68 | 1.3% |
| PI-Rebar | 6766 | 6848 | 82 | 1.2% |
PI - Product Index
Flat Products
| Category | 06-Nov | 13-Nov | Change | % |
| PI-PLTS | 5029 | 5115 | 86 | 1.7% |
| PI-HR | 5768 | 5891 | 123 | 2.1% |
| PI-CR | 6501 | 6613 | 112 | 1.7% |
| PI-GP | 6170 | 6264 | 94 | 1.5% |
PI - Product Index
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But the Chinese steel market exhibited mixed tendencies during the later part of the week, which is reflected in the movement of CLPPI and CFPPI on November 12th and November 13th 2009.
| Product | 11-Nov | 12-Nov | 13-Nov |
| CLPPI | 5929 | 5926 | 5905 |
| CFPPI | 5921 | 5930 | 5932 |
| CHISPI | 5924 | 5929 | 5920 |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
While CFPPI reflects slowing down of increase of prices of flat products, CLPPI gives a warning for this week by reflecting weakening on weekend.
Crude steel outputs still remained at high levels in October at 51.75 million tonnes up by 42.4% YoY with exports at 2.71 million tonnes levels. As the rate in Chinese output growth continued to surpass the rate in growth of Chinese domestic demand, inventory levels remained high, thus posing a serious threat to domestic price levels.
Chinese steel price begins to rebound in October, and it is estimated that the seasonal adjustment will appear very soon due to following reasons.
1. High inventories
In general, the fact of high inventories is not changed. According to the data, the yield of crude steel over ten moths touched 470 million tonnes and the total volume of steel products were 565 million tonnes in 2008. In other words, China just needs to produce 70 million tonnes in the last two months in 2009 to surpass last year’s levels, which is likely to happen as the profit is still more than 10% and Chinese steel mills will not cut the production.
2. Negotiation of long term iron ore contract prices
This negotiation is the focus of the end of this year, which may be brought forward. As a rule, traders would increase the spot iron price and ocean freight. Therefore, the import price of iron ore and ocean freight rose since September. On the other hand, the weakened demand in winter will deter the increase of iron price.
3. Continued imbalance between supply and demand
The investment in fixed assets and real estate was less than expectation in October. Although the increase of investment increased by 33.2% in the first ten months, it reduced by 13.2% monthly, which is the largest reduction over the ten years. It is said that the investment has entered into a stable development, which may be hard to promote the steel price.
Overall, it is a period of seasonal bottom, and market players may wait to mid of January 2010 looking forward to a real increase of Chinese steel price due the Spring Festival and the busy season in spring.
1. Long products - Serpentine movements
The price movement in last 7 days signals that Chinese domestic steel market, which was on an upward really, has come to terms with demand realities as prices of long products started to weaken in the last 2 working days of the week.
On the other hand, the weekly changes, in absolute terms, reflected positive sentiments. Construction steel product price showed overall rebounds last week in China. It is learnt that 55 rebar markers and 49 wire rod producers adjusted their EXW price upward last week.
Billets
150*150
Q235
| Location | CNY | USD |
| Fujian Province | 40 | 6 |
| Hebei Province | 70 | 10 |
| Jiangsu Province | 50 | 7 |
| Shandong Province | 20 | 3 |
| Shanxi Province | 100 | 15 |
| Tianjin | 50 | 7 |
Change is on November 13th as compared to November 6th 2009
Change is per tonne
WRC
6.5mm
Common
| Location | CNY | USD |
| Changsha | 10 | 1 |
| Chengdu | 120 | 18 |
| Guiyang | 40 | 6 |
| Hangzhou | 40 | 6 |
| Kunming | 30 | 4 |
| Nanjing | 90 | 13 |
| Shanghai | 180 | 26 |
| Urumchi | 0 | 0 |
| Zhengzhou | 50 | 7 |
Change is on November 13th as compared to November 6th 2009
Change is per tonne
Rebars
20mm
HRB 400
| Location | CNY | USD |
| Beijing | 40 | 6 |
| Changsha | 70 | 10 |
| Chengdu | 80 | 12 |
| Chongqing | 40 | 6 |
| Fuzhou | 70 | 10 |
| Guangzhou | 20 | 3 |
| Guiyang | 70 | 10 |
| Hangzhou | 70 | 10 |
| Harbin | 0 | 0 |
| Hefei | -10 | -1 |
| Jinan | 120 | 18 |
| Kunming | 20 | 3 |
| Lanzhou | 20 | 3 |
| Nanchang | 40 | 6 |
| Nanjing | 50 | 7 |
| Shanghai | 70 | 10 |
| Shenyang | 70 | 10 |
| Shijiazhuang | 30 | 4 |
| Taiyuan | 0 | 0 |
| Tianjin | 40 | 6 |
| Urumchi | 50 | 7 |
| Wuhan | 30 | 4 |
| Xian | 50 | 7 |
| Zhengzhou | 80 | 12 |
Change is on November 13th as compared to November 6th 2009
Change is per tonne
2. Flats products - Pretentious revival
Chinese price trend setter Baoshan Iron and Steel Co Ltd signaled positives by announcing December price increase of 2.5% for HR and 6.4% for CR. Wuhan Steel raised its EXW price by CNY 300 per tonne. Rizhao Steel, Anyang Steel, Laiwu Steel, Jinan Steel, Taizhou Steel and Panzhihua Steel also lifted up their EXW price.
HRC
4.75mm
Common
| Location | CNY | USD |
| Beijing | 130 | 19 |
| Changsha | 150 | 22 |
| Chengdu | 120 | 18 |
| Chongqing | 100 | 15 |
| Fuzhou | 100 | 15 |
| Guangzhou | 90 | 13 |
| Hangzhou | 100 | 15 |
| Harbin | 70 | 10 |
| Hefei | 130 | 19 |
| Jinan | 100 | 15 |
| Kunming | 100 | 15 |
| Lanzhou | 80 | 12 |
| Nanchang | 100 | 15 |
| Nanjing | 90 | 13 |
| Shanghai | 70 | 10 |
| Shenyang | 80 | 12 |
| Shijiazhuang | 100 | 15 |
| Taiyuan | 80 | 12 |
| Tianjin | 100 | 15 |
| Urumchi | 30 | 4 |
| Wuhan | 50 | 7 |
| Xian | 30 | 4 |
| Zhengzhou | 80 | 12 |
Change is on November 13th as compared to November 6th 2009
Change is per tonne
Plates
20mm
Common
| Location | CNY | USD |
| Beijing | 90 | 13 |
| Changsha | 50 | 7 |
| Chengdu | 60 | 9 |
| Chongqing | 70 | 10 |
| Fuzhou | 70 | 10 |
| Guangzhou | 100 | 15 |
| Hangzhou | 70 | 10 |
| Harbin | 0 | 0 |
| Hefei | 0 | 0 |
| Jinan | 70 | 10 |
| Kunming | 130 | 19 |
| Lanzhou | 70 | 10 |
| Nanchang | 70 | 10 |
| Nanjing | 120 | 18 |
| Shanghai | 50 | 7 |
| Shenyang | 120 | 18 |
| Taiyuan | 20 | 3 |
| Tianjin | 90 | 13 |
| Urumchi | 0 | 0 |
| Wuhan | 40 | 6 |
| Xian | 20 | 3 |
| Zhengzhou | 70 | 10 |
Change is on November 13th as compared to November 6th 2009
Change is per tonne
CR
1.0mm
Common
| Location | CNY | USD |
| Beijing | 200 | 29 |
| Changsha | 100 | 15 |
| Chengdu | 50 | 7 |
| Chongqing | 40 | 6 |
| Fuzhou | 50 | 7 |
| Guangzhou | 50 | 7 |
| Hangzhou | 70 | 10 |
| Harbin | 200 | 29 |
| Hefei | 130 | 19 |
| Jinan | 150 | 22 |
| Kunming | 50 | 7 |
| Lanzhou | 0 | 0 |
| Nanchang | 100 | 15 |
| Nanjing | 130 | 19 |
| Qingdao | 50 | 7 |
| Shanghai | 100 | 15 |
| Shenyang | 50 | 7 |
| Shijiazhuang | 100 | 15 |
| Taiyuan | 20 | 3 |
| Tianjin | 150 | 22 |
| Urumchi | 0 | 0 |
| Wuhan | 120 | 18 |
| Xian | 0 | 0 |
| Zhengzhou | 100 | 15 |
Change is on November 13th as compared to November 6th 2009
Change is per tonne
HDG
0.5mm
Common
| Location | CNY | USD |
| Beijing | 30 | 4 |
| Boxing | 90 | 13 |
| Chongqing | 70 | 10 |
| Fuzhou | 100 | 15 |
| Guangzhou | 50 | 7 |
| Hangzhou | 70 | 10 |
| Harbin | 100 | 15 |
| Nanchang | 250 | 37 |
| Shanghai | 100 | 15 |
| Shenyang | 0 | 0 |
| Tianjin | 40 | 6 |
| Wuhan | 100 | 15 |
| Xian | 100 | 15 |
| Zhengzhou | 100 | 15 |
Change is on November 13th as compared to November 6th 2009
Change is per tonne
3. Export levels - Audacious revival
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 490 per tonne FOB basis as compared to lowest heard levels of USD 480 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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(Sourced fromwww.steelprices-china.com)
