As China ambles to week long National Holiday (1st -8th October) the steel market heave a sigh of relief after a sordid September. Market would vie to erase the memory of the havoc underwent as prices plummeted at the bristling pace.
Triggered by the crisis in US and Europe, the two major trading partners, the market succumbed to the overbearing economic compulsions despite strong fundamentals at the culmination of monsoon.
Run up to the collapse was marked by an extended and uneasy solitude wherein demand from construction and consumer durable segments was rearing to go, but was critically balanced by equally damning global economic developments creating uncertainty and circumspection.
Devastation wreaked by collapse is reflected in the third consecutive monthly fall in PMI at 49.4 in August (figure below 50 means contraction in industrial growth). At the same time double digit lending rate (10%) is barely enticing for business to pick up.
Product profitability of steel mills has been eroded with rebar profits below CNY 100 per tonne and HRC has been squeezed to CNY 40 per tonne to CNY 50 per tonne.
Holiday will be utilized for introspection and possible alignment of demand supply mismatch to give fillip to the sagging sentiments post holiday.
The Chinese Long Product Price Index CLPPI has gone down by 172 points last week whereas the Chinese Flat Products Index CFPPI has also declined by 105 points. The overall price index CHISPI declined by 134 points.
| Class | 23-Sep | 30-Sep | Change | % |
| CLPPI | 7423 | 7251 | -172 | -2.3% |
| CFPPI | 7549 | 7444 | -105 | -1.4% |
| CHISPI | 7494 | 7360 | -134 | -1.8% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Long Products
| Category | 23-Sep | 30-Sep | Change | % |
| PI-WRC | 6271 | 6130 | -141 | -2.2% |
| PI-Rebar | 8818 | 8607 | -211 | -2.4% |
PI - Product Index
Flat Products
| Category | 23-Sep | 30-Sep | Change | % |
| PI-PLTS | 6822 | 6718 | -104 | -1.5% |
| PI-HR | 7770 | 7636 | -134 | -1.7% |
| PI-CR | 7452 | 7419 | -33 | -0.4% |
| PI-GP | 7526 | 7469 | -57 | -0.8% |
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 | -180 | -28 |
| Hebei Province | -150 | -23 |
| Jiangsu Province | 0 | 0 |
| Shandong Province | -20 | -3 |
| Shanxi Province | 0 | 0 |
| Tianjin | -150 | -23 |
Change is on Sep 30th as compared to 23rd Sep 2011
Change is per tonne
WRC
6.5mm
Common
| Location | CNY | USD |
| Changsha | -90 | -14 |
| Chengdu | -30 | -5 |
| Guiyang | -170 | -27 |
| Hangzhou | -80 | -13 |
| Kunming | -80 | -13 |
| Nanjing | -20 | -3 |
| Shanghai | -70 | -11 |
| Urumchi | -190 | -30 |
| Zhengzhou | -110 | -17 |
Change is on Sep 30th as compared to 23rd Sep 2011
Change is per tonne
Rebars
20mm
HRB 400
| Location | CNY | USD |
| Beijing | -130 | -20 |
| Changsha | -100 | -16 |
| Chengdu | -150 | -23 |
| Chongqing | -150 | -23 |
| Fuzhou | -40 | -6 |
| Guangzhou | -70 | -11 |
| Guiyang | -150 | -23 |
| Hangzhou | -50 | -8 |
| Harbin | -40 | -6 |
| Hefei | -80 | -13 |
| Jinan | -140 | -22 |
| Kunming | -70 | -11 |
| Lanzhou | -100 | -16 |
| Nanchang | -100 | -16 |
| Nanjing | -70 | -11 |
| Shanghai | -70 | -11 |
| Shenyang | -90 | -14 |
| Shijiazhuang | -130 | -20 |
| Taiyuan | -160 | -25 |
| Tianjin | -170 | -27 |
| Urumchi | -320 | -50 |
| Wuhan | -40 | -6 |
| Xian | -210 | -33 |
| Zhengzhou | -200 | -31 |
Change is on Sep 30th as compared to 23rd Sep 2011
Change is per tonne
Angle
#5
| Location | CNY | USD |
| Shanghai | -40 | -6 |
| Hangzhou | 0 | 0 |
| Nanjing | -30 | -5 |
| Jinan | 0 | 0 |
| Hefei | -20 | -3 |
| Fuzhou | -20 | -3 |
| Nanchang | 0 | 0 |
| Guangzhou | 0 | 0 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | -50 | -8 |
| Tianjin | -90 | -14 |
| Shijiazhuang | -20 | -3 |
| Taiyuan | -20 | -3 |
| Shenyang | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -20 | -3 |
| Chengdu | -20 | -3 |
| Kunming | 80 | 13 |
| Xian | 0 | 0 |
| Lanzhou | -40 | -6 |
| Urumchi | -530 | -83 |
Change is on Sep 30th as compared to 23rd Sep 2011
Change is per tonne
Channel
#16
| Location | CNY | USD |
| Shanghai | -40 | -6 |
| Hangzhou | 0 | 0 |
| Nanjing | -20 | -3 |
| Jinan | 0 | 0 |
| Hefei | -30 | -5 |
| Fuzhou | -20 | -3 |
| Nanchang | 0 | 0 |
| Guangzhou | 0 | 0 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | -20 | -3 |
| Tianjin | -100 | -16 |
| Shijiazhuang | -20 | -3 |
| Taiyuan | -20 | -3 |
| Shenyang | 0 | 0 |
| Harbin | -60 | -9 |
| Chongqing | -20 | -3 |
| Chengdu | -40 | -6 |
| Kunming | -30 | -5 |
| Xian | 0 | 0 |
| Lanzhou | -70 | -11 |
| Urumchi | -300 | -47 |
Change is on Sep 30th as compared to 23rd Sep 2011
Change is per tonne
Beam
#25
| Location | CNY | USD |
| Shanghai | -40 | -6 |
| Hangzhou | 0 | 0 |
| Nanjing | -50 | -8 |
| Jinan | 0 | 0 |
| Hefei | 0 | 0 |
| Fuzhou | -20 | -3 |
| Nanchang | 0 | 0 |
| Guangzhou | -50 | -8 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | -80 | -13 |
| Beijing | -70 | -11 |
| Tianjin | -80 | -13 |
| Shijiazhuang | -20 | -3 |
| Taiyuan | -20 | -3 |
| Shenyang | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -30 | -5 |
| Chengdu | -20 | -3 |
| Kunming | -50 | -8 |
| Xian | 0 | 0 |
| Lanzhou | -30 | -5 |
| Urumchi | -200 | -31 |
Change is on Sep 30th as compared to 23rd Sep 2011
Change is per tonne
To know exact prevailing steel prices in China on daily basis, subscribe to services of SteelHome by sending a mail to admin@steelprices-china.com
