Week 42 can be aptly termed as the “Waterloo “of Chinese steel market. Each passing day typified even greater debacle as week ended with almost 6% correction in prices. Unimaginable bloodbath has shattered the market confidence beyond redemption in near future.
The current domestic steel prices in China are lowest since August 2010 and are approaching lowest levels prevailing during 2009 till mid 2010. The prices have lost about 14% for longs and 9% for flats since the last high in mid August 2011. But they are still about 23% higher for longs and 34% for flats in April 2009, lowest post 2008 financial crisis.
Headwind recession in global steel market has left Chinese market severely maimed with buyers and sellers scooting for cover. Even though the genesis of the disaster laid in the frigid waters of US and European economies the two major trading partners the viral has inflicted the domestic market with impunity. Domestic steel market which was held on razors edge amidst mysterious silence for nearly a month prior to the debacle in September saddled by:
Abysmal demand in consuming sectors viz., construction, and consumer appliances etc.
1. High lending rate scuttling the construction and buying activity
2. Production surge leading to inventory pile up
3. Slumping growth rate which clocked 9.1% in Q3
4. High inflation at 6.1% in September
5. Burgeoning debt of the domestic financial institutions leading to exponential growth in bad debts
6. Appreciating CNY v/s USD
The market is caught in girdle of eagerness by steel mills and traders to destock inventory but the slump in demand has led to negligible transactions and intensifying panic.
Sheer magnitude of debacle is so high that any turnaround will be mere cosmetic in the short run. Prolongation of imbroglio in Europe has only added to the misery and mills are scampering for production cuts leading to collapse in iron ore market as well.
The Chinese Long Product Price Index CLPPI has gone down by 417 points last week whereas the Chinese Flat Products Index CFPPI has also declined by 389 points. The overall price index CHISPI declined by 401 points.
| Class | 14-Oct | 21-Oct | Change | % |
| CLPPI | 7087 | 6670 | -417 | -5.9% |
| CFPPI | 7361 | 6972 | -389 | -5.3% |
| CHISPI | 7242 | 6841 | -401 | -5.5% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Long Products
| Category | 14-Oct | 21-Oct | Change | % |
| PI-WRC | 5978 | 5600 | -378 | -6.3% |
| PI-Rebar | 8429 | 7964 | -465 | -5.5% |
PI - Product Index
Flat Products
| Category | 14-Oct | 21-Oct | Change | % |
| PI-PLTS | 6574 | 6246 | -328 | -5.0% |
| PI-HR | 7561 | 7069 | -492 | -6.5% |
| PI-CR | 7367 | 7169 | -198 | -2.7% |
| PI-GP | 7375 | 7189 | -186 | -2.5% |
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 | -140 | -22 |
| Hebei Province | -300 | -47 |
| Jiangsu Province | -80 | -13 |
| Shandong Province | -100 | -16 |
| Shanxi Province | -250 | -39 |
| Tianjin | -290 | -45 |
Change is on Oct 21st as compared to 14th Oct 2011
Change is per tonne
WRC
6.5mm
Common
| Location | CNY | USD |
| Changsha | -240 | -38 |
| Chengdu | -260 | -41 |
| Guiyang | -300 | -47 |
| Hangzhou | -320 | -50 |
| Kunming | -350 | -55 |
| Nanjing | -160 | -25 |
| Shanghai | -410 | -64 |
| Urumchi | -200 | -31 |
| Zhengzhou | -230 | -36 |
Change is on Oct 21st as compared to 14th Oct 2011
Change is per tonne
Rebars
20mm
HRB 400
| Location | CNY | USD |
| Beijing | -310 | -49 |
| Changsha | -220 | -34 |
| Chengdu | -450 | -70 |
| Chongqing | -570 | -89 |
| Fuzhou | -140 | -22 |
| Guangzhou | -290 | -45 |
| Guiyang | -300 | -47 |
| Hangzhou | -200 | -31 |
| Harbin | -180 | -28 |
| Hefei | -290 | -45 |
| Jinan | -120 | -19 |
| Kunming | -350 | -55 |
| Lanzhou | -290 | -45 |
| Nanchang | -260 | -41 |
| Nanjing | -120 | -19 |
| Shanghai | -180 | -28 |
| Shenyang | -220 | -34 |
| Shijiazhuang | -290 | -45 |
| Taiyuan | -230 | -36 |
| Tianjin | -310 | -49 |
| Urumchi | -150 | -23 |
| Wuhan | -270 | -42 |
| Xian | -350 | -55 |
| Zhengzhou | -150 | -23 |
Change is on Oct 21st as compared to 14th Oct 2011
Change is per tonne
Angle
#5
| Location | CNY | USD |
| Shanghai | -120 | -19 |
| Hangzhou | -200 | -31 |
| Nanjing | -100 | -16 |
| Jinan | -130 | -20 |
| Hefei | -220 | -34 |
| Fuzhou | -140 | -22 |
| Nanchang | -50 | -8 |
| Guangzhou | -100 | -16 |
| Changsha | -90 | -14 |
| Wuhan | -70 | -11 |
| Zhengzhou | -70 | -11 |
| Beijing | -160 | -25 |
| Tianjin | -50 | -8 |
| Shijiazhuang | -130 | -20 |
| Taiyuan | -280 | -44 |
| Shenyang | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -100 | -16 |
| Chengdu | -100 | -16 |
| Kunming | -80 | -13 |
| Xian | -140 | -22 |
| Lanzhou | -100 | -16 |
| Urumchi | -50 | -8 |
Change is on Oct 21st as compared to 14th Oct 2011
Change is per tonne
Channel
#16
| Location | CNY | USD |
| Shanghai | -120 | -19 |
| Hangzhou | -170 | -27 |
| Nanjing | -120 | -19 |
| Jinan | -110 | -17 |
| Hefei | -150 | -23 |
| Fuzhou | -140 | -22 |
| Nanchang | -50 | -8 |
| Guangzhou | -50 | -8 |
| Changsha | -80 | -13 |
| Wuhan | -70 | -11 |
| Zhengzhou | -50 | -8 |
| Beijing | -200 | -31 |
| Tianjin | -390 | -61 |
| Shijiazhuang | -150 | -23 |
| Taiyuan | -280 | -44 |
| Shenyang | -50 | -8 |
| Harbin | -90 | -14 |
| Chongqing | -60 | -9 |
| Chengdu | -130 | -20 |
| Kunming | -130 | -20 |
| Xian | -130 | -20 |
| Lanzhou | -280 | -44 |
| Urumchi | -50 | -8 |
Change is on Oct 21st as compared to 14th Oct 2011
Change is per tonne
Beam
#25
| Location | CNY | USD |
| Shanghai | -80 | -13 |
| Hangzhou | -150 | -23 |
| Nanjing | -90 | -14 |
| Jinan | -60 | -9 |
| Hefei | -170 | -27 |
| Fuzhou | -140 | -22 |
| Nanchang | -50 | -8 |
| Guangzhou | -80 | -13 |
| Changsha | -150 | -23 |
| Wuhan | 0 | 0 |
| Zhengzhou | -100 | -16 |
| Beijing | -130 | -20 |
| Tianjin | -180 | -28 |
| Shijiazhuang | -160 | -25 |
| Taiyuan | -140 | -22 |
| Shenyang | -80 | -13 |
| Harbin | -50 | -8 |
| Chongqing | -80 | -13 |
| Chengdu | -120 | -19 |
| Kunming | -110 | -17 |
| Xian | -90 | -14 |
| Lanzhou | -170 | -27 |
| Urumchi | -150 | -23 |
Change is on Oct 21st as compared to 14th Oct 2011
Change is per tonne
2. Flats products
HRC
4.75mm
Common
| Location | CNY | USD |
| Beijing | -400 | -63 |
| Changsha | -280 | -44 |
| Chengdu | -360 | -56 |
| Chongqing | -440 | -69 |
| Fuzhou | -380 | -59 |
| Guangzhou | -420 | -66 |
| Hangzhou | -390 | -61 |
| Harbin | -280 | -44 |
| Hefei | -220 | -34 |
| Jinan | -420 | -66 |
| Kunming | -230 | -36 |
| Lanzhou | -320 | -50 |
| Nanchang | -250 | -39 |
| Nanjing | -420 | -66 |
| Shanghai | -410 | -64 |
| Shenyang | -390 | -61 |
| Shijiazhuang | -420 | -66 |
| Taiyuan | -530 | -83 |
| Tianjin | -450 | -70 |
| Urumchi | -200 | -31 |
| Wuhan | -380 | -59 |
| Xian | -370 | -58 |
| Zhengzhou | -500 | -78 |
Change is on Oct 21st as compared to 14th Oct 2011
Change is per tonne
Plates
20mm
Common
| Location | CNY | USD |
| Beijing | -320 | -50 |
| Changsha | -190 | -30 |
| Chengdu | -210 | -33 |
| Chongqing | -180 | -28 |
| Fuzhou | -210 | -33 |
| Guangzhou | -210 | -33 |
| Hangzhou | -250 | -39 |
| Harbin | -160 | -25 |
| Hefei | -220 | -34 |
| Jinan | -180 | -28 |
| Kunming | -140 | -22 |
| Lanzhou | -270 | -42 |
| Nanchang | -120 | -19 |
| Nanjing | -230 | -36 |
| Shanghai | -200 | -31 |
| Shenyang | -230 | -36 |
| Taiyuan | -180 | -28 |
| Tianjin | -350 | -55 |
| Urumchi | -310 | -49 |
| Wuhan | -330 | -52 |
| Xian | -270 | -42 |
| Zhengzhou | -360 | -56 |
Change is on Oct 21st as compared to 14th Oct 2011
Change is per tonne
Pig Iron
Z18-22
Foundry
| Location | CNY | USD |
| Kunming | -100 | -16 |
| Changzhou | -20 | -3 |
| Xuzhou | -30 | -5 |
| Linyi | -20 | -3 |
| Weihai | 0 | 0 |
| Wuan | -40 | -6 |
| Taiyuan | 0 | 0 |
| Yicheng | -30 | -5 |
| Linzhou | 0 | 0 |
| Guiyang | -100 | -16 |
| Harbin | -50 | -8 |
| Anshan | -50 | -8 |
Change is on Oct 21st as compared to 14th Oct 2011
Change is per tonne
HR Strip
183*2.75
| Location | CNY | USD |
| Shanghai | -270 | -42 |
| Hangzhou | -370 | -58 |
| Guangzhou | -280 | -44 |
| Wuhan | -210 | -33 |
| Tianjin | -360 | -56 |
| Chengdu | -100 | -16 |
| Wuxi | -300 | -47 |
| Lecong | -280 | -44 |
Change is on Oct 21st as compared to 14th Oct 2011
Change is per tonne
CR
1.0mm
Common
| Location | CNY | USD |
| Beijing | -400 | -63 |
| Changsha | -110 | -17 |
| Chengdu | -130 | -20 |
| Chongqing | -160 | -25 |
| Fuzhou | -170 | -27 |
| Guangzhou | -230 | -36 |
| Hangzhou | -160 | -25 |
| Harbin | 0 | 0 |
| Hefei | -180 | -28 |
| Jinan | -230 | -36 |
| Kunming | -140 | -22 |
| Lanzhou | -80 | -13 |
| Nanchang | -90 | -14 |
| Nanjing | -100 | -16 |
| Qingdao | -230 | -36 |
| Shanghai | -170 | -27 |
| Shenyang | -100 | -16 |
| Shijiazhuang | -200 | -31 |
| Taiyuan | -50 | -8 |
| Tianjin | -270 | -42 |
| Urumchi | -50 | -8 |
| Wuhan | -150 | -23 |
| Xian | -80 | -13 |
| Zhengzhou | -80 | -13 |
Change is on Oct 21st as compared to 14th Oct 2011
Change is per tonne
