Even though paralysis had afflicted the market for the past 2 months it took slew of coincidental misfortunes viz., US debt ceiling, US downgrading and the recalcitrant European debt crisis to push the dragon cart downhill.
Domestic fundamentals in China continued to be rather resolute all through as though it was sitting on powder keg waiting for the odd splinter to explode. For nearly 2 agonizing months operators kept the fingers crossed waiting for the surge.
Optimism was not devoid of factum as 10 million budget house construction, urbanization of tier 2 cities; infrastructure and growth in automobile and consumer durables demand were present during this period. Sensing the potential domestic mills ramped production in June and July but the global muddle punctured the built up midway.
Chinese steel industry which has a strong dependence on the European and US market for its product took the shocker with a pinch of salt. Mills quickly changed tact by reducing production correcting by 13.85% in August. In fact some major mills jacked up prices in blind bliss of revival in September and October which seems ludicrous.
China is not stranger to coming out unscathed from such economic catastrophes in the past but it was precisely this over confidence which proved to be its nemesis this time.
China’s growth will slow largely because of waning exports. The country known as the factory of the world is especially vulnerable to fading demand from USA and Europe its two biggest export market.
IMF has already revised the GDP projection for China to 9% from 9.5% in 2011. However the trickling effect of demand in the domestic market would keep the GDP securely above 8% and obviate fears of hard landing.
National Holiday is on the anvil from 1st Oct and market would be yearning for that break from nerve sapping jitters. Possibly some respite might emerge after the holidays after the dust settles and domestic buyers come out before the winter.
The Chinese Long Product Price Index CLPPI has gone down by 182 points last week whereas the Chinese Flat Products Index CFPPI has also declined by 88 points. The overall price index CHISPI declined by 129 points.
| Class | 16-Sep | 23-Sep | Change | % |
| CLPPI | 7605 | 7423 | -182 | -2.4% |
| CFPPI | 7637 | 7549 | -88 | -1.2% |
| CHISPI | 7623 | 7494 | -129 | -1.7% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Long Products
| Category | 16-Sep | 23-Sep | Change | % |
| PI-WRC | 6422 | 6271 | -151 | -2.4% |
| PI-Rebar | 9037 | 8818 | -219 | -2.4% |
PI - Product Index
Flat Products
| Category | 16-Sep | 23-Sep | Change | % |
| PI-PLTS | 6905 | 6822 | -83 | -1.2% |
| PI-HR | 7891 | 7770 | -121 | -1.5% |
| PI-CR | 7465 | 7452 | -13 | -0.2% |
| PI-GP | 7557 | 7526 | -31 | -0.4% |
PI - Product Index
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 |
| Fujian Province | -120 | -19 |
| Hebei Province | -170 | -27 |
| Jiangsu Province | 0 | 0 |
| Shandong Province | -120 | -19 |
| Shanxi Province | 0 | 0 |
| Tianjin | -120 | -19 |
Change is on Sep 23rd as compared to 16th Sep 2011
Change is per tonne
WRC
6.5mm
Common
| Location | CNY | USD |
| Changsha | -90 | -14 |
| Chengdu | -150 | -23 |
| Guiyang | -110 | -17 |
| Hangzhou | -80 | -13 |
| Kunming | -120 | -19 |
| Nanjing | 0 | 0 |
| Shanghai | -120 | -19 |
| Urumchi | -150 | -23 |
| Zhengzhou | -30 | -5 |
Change is on Sep 23rd as compared to 16th Sep 2011
Change is per tonne
Rebars
20mm
HRB 400
| Location | CNY | USD |
| Beijing | -130 | -20 |
| Changsha | -210 | -33 |
| Chengdu | -220 | -34 |
| Chongqing | -180 | -28 |
| Fuzhou | -100 | -16 |
| Guangzhou | -30 | -5 |
| Guiyang | -120 | -19 |
| Hangzhou | -90 | -14 |
| Harbin | -130 | -20 |
| Hefei | -110 | -17 |
| Jinan | -90 | -14 |
| Kunming | -130 | -20 |
| Lanzhou | -140 | -22 |
| Nanchang | -40 | -6 |
| Nanjing | -80 | -13 |
| Shanghai | -90 | -14 |
| Shenyang | -40 | -6 |
| Shijiazhuang | -130 | -20 |
| Taiyuan | -110 | -17 |
| Tianjin | -130 | -20 |
| Urumchi | -200 | -31 |
| Wuhan | -130 | -20 |
| Xian | -160 | -25 |
| Zhengzhou | -150 | -23 |
Change is on Sep 23rd as compared to 16th Sep 2011
Change is per tonne
Angle
#5
| Location | CNY | USD |
| Shanghai | -70 | -11 |
| Hangzhou | -50 | -8 |
| Nanjing | 0 | 0 |
| Jinan | 0 | 0 |
| Hefei | 0 | 0 |
| Fuzhou | -130 | -20 |
| Nanchang | 0 | 0 |
| Guangzhou | -20 | -3 |
| Changsha | -30 | -5 |
| Wuhan | -30 | -5 |
| Zhengzhou | -40 | -6 |
| Beijing | -20 | -3 |
| Tianjin | -30 | -5 |
| Shijiazhuang | -70 | -11 |
| Taiyuan | -10 | -2 |
| Shenyang | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -20 | -3 |
| Chengdu | -20 | -3 |
| Kunming | -80 | -13 |
| Xian | 0 | 0 |
| Lanzhou | -50 | -8 |
| Urumchi | -400 | -63 |
Change is on Sep 23rd as compared to 16th Sep 2011
Change is per tonne
Channel
#16
| Location | CNY | USD |
| Shanghai | -60 | -9 |
| Hangzhou | -20 | -3 |
| Nanjing | 0 | 0 |
| Jinan | 0 | 0 |
| Hefei | 0 | 0 |
| Fuzhou | -80 | -13 |
| Nanchang | 0 | 0 |
| Guangzhou | -150 | -23 |
| Changsha | -20 | -3 |
| Wuhan | -40 | -6 |
| Zhengzhou | -40 | -6 |
| Beijing | 0 | 0 |
| Tianjin | -130 | -20 |
| Shijiazhuang | -50 | -8 |
| Taiyuan | -10 | -2 |
| Shenyang | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -20 | -3 |
| Chengdu | -20 | -3 |
| Kunming | -70 | -11 |
| Xian | 0 | 0 |
| Lanzhou | -20 | -3 |
| Urumchi | -300 | -47 |
Change is on Sep 23rd as compared to 16th Sep 2011
Change is per tonne
Beam
#25
| Location | CNY | USD |
| Shanghai | 80 | 13 |
| Hangzhou | 0 | 0 |
| Nanjing | -40 | -6 |
| Jinan | 0 | 0 |
| Hefei | 0 | 0 |
| Fuzhou | -150 | -23 |
| Nanchang | 0 | 0 |
| Guangzhou | -50 | -8 |
| Changsha | -50 | -8 |
| Wuhan | 0 | 0 |
| Zhengzhou | -60 | -9 |
| Beijing | 0 | 0 |
| Tianjin | -30 | -5 |
| Shijiazhuang | 0 | 0 |
| Taiyuan | -10 | -2 |
| Shenyang | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -40 | -6 |
| Chengdu | -40 | -6 |
| Kunming | -100 | -16 |
| Xian | 0 | 0 |
| Lanzhou | -80 | -13 |
| Urumchi | -380 | -59 |
Change is on Sep 23rd as compared to 16th Sep 2011
Change is per tonne
2. Flats products
HRC
4.75mm
Common
| Location | CNY | USD |
| Beijing | -80 | -13 |
| Changsha | -90 | -14 |
| Chengdu | -60 | -9 |
| Chongqing | -70 | -11 |
| Fuzhou | -100 | -16 |
| Guangzhou | -120 | -19 |
| Hangzhou | -120 | -19 |
| Harbin | -40 | -6 |
| Hefei | -60 | -9 |
| Jinan | -50 | -8 |
| Kunming | -100 | -16 |
| Lanzhou | -80 | -13 |
| Nanchang | -60 | -9 |
| Nanjing | -120 | -19 |
| Shanghai | -150 | -23 |
| Shenyang | -90 | -14 |
| Shijiazhuang | -70 | -11 |
| Taiyuan | -40 | -6 |
| Tianjin | -130 | -20 |
| Urumchi | -70 | -11 |
| Wuhan | -100 | -16 |
| Xian | -120 | -19 |
| Zhengzhou | -60 | -9 |
Change is on Sep 23rd as compared to 16th Sep 2011
Change is per tonne
Plates
20mm
Common
| Location | CNY | USD |
| Beijing | -90 | -14 |
| Changsha | -50 | -8 |
| Chengdu | -60 | -9 |
| Chongqing | -60 | -9 |
| Fuzhou | -70 | -11 |
| Guangzhou | -30 | -5 |
| Hangzhou | -60 | -9 |
| Harbin | -40 | -6 |
| Hefei | -40 | -6 |
| Jinan | -60 | -9 |
| Kunming | -130 | -20 |
| Lanzhou | -30 | -5 |
| Nanchang | -60 | -9 |
| Nanjing | -50 | -8 |
| Shanghai | -50 | -8 |
| Shenyang | -60 | -9 |
| Taiyuan | -40 | -6 |
| Tianjin | -40 | -6 |
| Urumchi | -60 | -9 |
| Wuhan | -50 | -8 |
| Xian | -60 | -9 |
| Zhengzhou | -60 | -9 |
Change is on Sep 23rd as compared to 16th Sep 2011
Change is per tonne
Pig Iron
Z18-22
Foundry
| Location | CNY | USD |
| Kunming | 0 | 0 |
| Changzhou | 0 | 0 |
| Xuzhou | -10 | -2 |
| Linyi | -20 | -3 |
| Weihai | 50 | 8 |
| Wuan | -20 | -3 |
| Taiyuan | 0 | 0 |
| Yicheng | -20 | -3 |
| Linzhou | 0 | 0 |
| Guiyang | 0 | 0 |
| Harbin | 0 | 0 |
| Anshan | 0 | 0 |
Change is on Sep 23rd as compared to 16th Sep 2011
Change is per tonne
HR Strip
183*2.75
| Location | CNY | USD |
| Shanghai | -80 | -13 |
| Hangzhou | -100 | -16 |
| Guangzhou | -60 | -9 |
| Wuhan | -100 | -16 |
| Tianjin | 0 | 0 |
| Chengdu | -40 | -6 |
| Wuxi | -140 | -22 |
| Lecong | -60 | -9 |
| Tangshan | 0 | 0 |
Change is on Sep 23rd as compared to 16th Sep 2011
Change is per tonne
CR
1.0mm
Common
| Location | CNY | USD |
| Beijing | 0 | 0 |
| Changsha | 0 | 0 |
| Chengdu | 0 | 0 |
| Chongqing | 0 | 0 |
| Fuzhou | 0 | 0 |
| Guangzhou | -20 | -3 |
| Hangzhou | -20 | -3 |
| Harbin | 0 | 0 |
| Hefei | 0 | 0 |
| Jinan | -20 | -3 |
| Kunming | 0 | 0 |
| Lanzhou | -20 | -3 |
| Nanchang | 0 | 0 |
| Nanjing | 0 | 0 |
| Qingdao | 0 | 0 |
| Shanghai | 0 | 0 |
| Shenyang | 20 | 3 |
| Shijiazhuang | 0 | 0 |
| Taiyuan | 0 | 0 |
| Tianjin | -30 | -5 |
| Urumchi | -20 | -3 |
| Wuhan | -30 | -5 |
| Xian | -20 | -3 |
| Zhengzhou | -80 | -13 |
Change is on Sep 23rd as compared to 16th Sep 2011
Change is per tonne
