Chinese domestic steel market remained under heavy pressure with prices for both longs and flats loosing heavily last week.
Chinese government’s resolve to sacrifice growth for reining inflation is weighing on steel demand as well as sentiments. Inventories, at every stage of supply chain, are reported to be at very high levels.
Chinese steel market is likely to come under further pressure as more capacities come on stream in 2012. Bank of America Merrill Lynch said in a note “We forecast China steel demand growth to slow down to 6% in 2012 and 5.8% in 2013 from 12.8% CAGR during 2008-11, mainly due to property tightening and slowing infrastructure investment growth which accounts for about 50 percent of China's steel demand. As a result, we expect China's steel market to experience another difficult year in 2012 and the forecast price will likely fall by an average of 4%.”
Citing estimates from the China Iron and Steel Association, it added that the continued expansion in China's crude steel capacity could also hurt prices, with another 50 million tonnes in new crude steel capacity expected this year.
However a policy easing in China, could help prop steel prices this week. China's central bank cut the amount of cash that banks must hold in reserves on Saturday, boosting lending capacity by an estimated CNY 350 to CNY 400 billion in a bid to crank up credit creation as the world's second biggest economy faces a fifth successive quarter of slowing growth.
The Chinese Long Product Price Index CLPPI has gone down by 126 points last week whereas the Chinese Flat Products Index CFPPI has also gone down by 96 points. The overall price index CHISPI declined by 109 points.
| Class | 10-Feb | 17-Feb | Change | % |
| CLPPI | 7484 | 7358 | -126 | -1.7% |
| CFPPI | 6703 | 6607 | -96 | -1.4% |
| CHISPI | 7041 | 6932 | -109 | -1.5% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Long Products
| Category | 10-Feb | 17-Feb | Change | % |
| PI-WRC | 7429 | 7289 | -140 | -1.9% |
| PI-Rebar | 7551 | 7442 | -109 | -1.4% |
PI - Product Index
Flat Products
| Category | 10-Feb | 17-Feb | Change | % |
| PI-PLTS | 6016 | 6028 | 12 | 0.2% |
| PI-HR | 6838 | 6675 | -163 | -2.4% |
| PI-CR | 6936 | 6922 | -14 | -0.2% |
| PI-GP | 6543 | 6543 | 0 | 0.0% |
PI - Product Index
These indices have base of 10,000 as on July 1st 2008
To know more about these indices please visit
http://steelprices-china.com/spi_services/spi.html
1. Long products
Billets
150*150
Q235
| Location | CNY | USD |
| Shanghai | -50 | -8 |
| Jiangsu | -70 | -11 |
| Shandong | -40 | -6 |
| Fujian | -20 | -3 |
| Guangdong | -60 | -9 |
| Henan | -80 | -13 |
| Hebei | -50 | -8 |
| Shanxi | -30 | -5 |
| Liaoning | 0 | 0 |
| Yunnan | -40 | -6 |
Change is on Feb 17th as compared to 10th Feb 2012
Change is per tonne
WRC
6.5mm
High Speed
| Location | CNY | USD |
| Shanghai | -170 | -27 |
| Hangzhou | -170 | -27 |
| Nanjing | -60 | -9 |
| Wuxi | -80 | -13 |
| Jinan | -20 | -3 |
| Hefei | -170 | -27 |
| Fuzhou | -100 | -16 |
| Nanchang | -150 | -23 |
| Guangzhou | -70 | -11 |
| Nanning | 0 | 0 |
| Changsha | -200 | -31 |
| Wuhan | -60 | -9 |
| Zhengzhou | 0 | 0 |
| Beijing | -30 | -5 |
| Tianjin | -10 | -2 |
| Baotou | 0 | 0 |
| Shijiazhuang | 0 | 0 |
| Taiyuan | -80 | -13 |
| Shenyang | -80 | -13 |
| Changchun | -50 | -8 |
| Harbin | -30 | -5 |
| Chongqing | -130 | -20 |
| Chengdu | -170 | -27 |
| Guiyang | -110 | -17 |
| Kunming | -120 | -19 |
| Xian | -70 | -11 |
| Lanzhou | -130 | -20 |
| Urumchi | 0 | 0 |
Change is on Feb 17th as compared to 10th Feb 2012
Change is per tonne
Rebars
20mm
HRB 400
| Location | CNY | USD |
| Shanghai | -170 | -27 |
| Hangzhou | -130 | -20 |
| Nanjing | -30 | -5 |
| Wuxi | -60 | -9 |
| Jinan | 0 | 0 |
| Hefei | -140 | -22 |
| Fuzhou | -120 | -19 |
| Nanchang | -150 | -23 |
| Guangzhou | -100 | -16 |
| Nanning | 20 | 3 |
| Changsha | -200 | -31 |
| Wuhan | -90 | -14 |
| Zhengzhou | 50 | 8 |
| Beijing | 0 | 0 |
| Tianjin | 0 | 0 |
| Baotou | 0 | 0 |
| Shijiazhuang | -20 | -3 |
| Taiyuan | 0 | 0 |
| Shenyang | -50 | -8 |
| Changchun | -50 | -8 |
| Harbin | -30 | -5 |
| Chongqing | -50 | -8 |
| Chengdu | -110 | -17 |
| Guiyang | -70 | -11 |
| Kunming | -20 | -3 |
| Xian | -80 | -13 |
| Lanzhou | -100 | -16 |
| Urumchi | 0 | 0 |
Change is on Feb 17th as compared to 10th Feb 2012
Change is per tonne
Angle
#5
| Location | CNY | USD |
| Shanghai | -40 | -6 |
| Hangzhou | -20 | -3 |
| Nanjing | -30 | -5 |
| Wuxi | -50 | -8 |
| Jinan | -30 | -5 |
| Hefei | -20 | -3 |
| Fuzhou | 0 | 0 |
| Nanchang | -50 | -8 |
| Guangzhou | -40 | -6 |
| Nanning | 0 | 0 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | -20 | -3 |
| Beijing | 0 | 0 |
| Tianjin | 0 | 0 |
| Baotou | 0 | 0 |
| Shijiazhuang | -50 | -8 |
| Taiyuan | 0 | 0 |
| Shenyang | -20 | -3 |
| Changchun | -30 | -5 |
| Harbin | -20 | -3 |
| Chongqing | 0 | 0 |
| Chengdu | 0 | 0 |
| Guiyang | -50 | -8 |
| Kunming | -30 | -5 |
| Xian | 0 | 0 |
| Lanzhou | 0 | 0 |
| Urumchi | 0 | 0 |
Change is on Feb 17th as compared to 10th Feb 2012
Change is per tonne
Channel
#16
| Location | CNY | USD |
| Shanghai | -4260 | -667 |
| Hangzhou | -20 | -3 |
| Nanjing | -30 | -5 |
| Wuxi | -30 | -5 |
| Jinan | -30 | -5 |
| Hefei | -20 | -3 |
| Fuzhou | 0 | 0 |
| Nanchang | -50 | -8 |
| Guangzhou | -20 | -3 |
| Nanning | 0 | 0 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | -20 | -3 |
| Beijing | 0 | 0 |
| Tianjin | 0 | 0 |
| Baotou | 0 | 0 |
| Shijiazhuang | -50 | -8 |
| Taiyuan | 0 | 0 |
| Shenyang | 0 | 0 |
| Changchun | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | 0 | 0 |
| Chengdu | 0 | 0 |
| Guiyang | 0 | 0 |
| Kunming | 0 | 0 |
| Xian | 0 | 0 |
| Lanzhou | 0 | 0 |
| Urumchi | 0 | 0 |
Change is on Feb 17th as compared to 10th Feb 2012
Change is per tonne
Beam
#25
| Location | CNY | USD |
| Shanghai | -40 | -6 |
| Hangzhou | -20 | -3 |
| Nanjing | -30 | -5 |
| Wuxi | -50 | -8 |
| Jinan | -30 | -5 |
| Hefei | -20 | -3 |
| Fuzhou | 0 | 0 |
| Nanchang | -50 | -8 |
| Guangzhou | 0 | 0 |
| Nanning | 0 | 0 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | 0 | 0 |
| Tianjin | 0 | 0 |
| Baotou | 0 | 0 |
| Shijiazhuang | -50 | -8 |
| Taiyuan | 0 | 0 |
| Shenyang | -20 | -3 |
| Changchun | -20 | -3 |
| Harbin | 0 | 0 |
| Chongqing | 0 | 0 |
| Chengdu | 0 | 0 |
| Guiyang | -150 | -23 |
| Kunming | -100 | -16 |
| Xian | 0 | 0 |
| Lanzhou | 0 | 0 |
| Urumchi | 0 | 0 |
Change is on Feb 17th as compared to 10th Feb 2012
Change is per tonne
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